Partnering with the Community to Build Economic Resiliency
Durango is changing and facing new challenges. The City and other community partners are working to ensure that we retain the things that make Durango a quality place to live, work, and play. To help facilitate redevelopment and reinvestment, the City is pursuing formation of an Urban Renewal Authority. This web page will provide you with a snapshot into how this tool could be used here at home.
The goal of an Urban Renewal Authority (URA) is to serve as a redevelopment catalyst in key commercial and mixed-use areas in order to:
Strengthen the economic base by attracting capital investment in to Durango and to assist in the expansion and retention of existing businesses;
Eliminate and prevent conditions of blight which are economic and social liability to Durango;
Create a stable tax base;
Facilitate the development of desirable mixed-use projects; and
Prevent physical and economic deterioration.
Urban Renewal Authorities (URAs) are created by municipalities to redevelop areas that are found to contain blight and slum conditions and require a public participation to attract redevelopment. The main advantage of using a URA versus other entities to achieve these goals is URA’s offer the best package of tools and the greatest geographic flexibility to encourage investment in various location around the City.
Establishment of URA (per CO State Statute)
Tax Incremental Financing (TIF)
Loan and Grant Programs
Owner Participation Agreements
Demolition, Clearance and Site Preparation
Relocation Assistance and Payments
Public and Facilities Improvement
URA Financing Mechanisms
Appropriations from the City
Loans or advances from the City
Federal loans and grants
State Loans and Grant
Agreements with public and private entities
Sale of securities and other assets
Property and sales tax increments (Tax incremental financing)
Loans and advances from other sources
Tax Increment Financing (TIF)
Tax increment funds are the difference between the property or sales tax collected in the established “baseline” year and the annual sales tax collected each year following. These funds can be used for project assistance in the Urban Renewal Plan Area. This is a powerful tool for gap financing on hindered redevelopment projects that would not be able to move forward without assistance.
TIF establishes a higher tax base that will ultimately be distributed to the municipality, county, and special districts – an amount that is significantly higher than if these properties were not redeveloped. TIF also provides a sustainable funding mechanism for facilitating desirable redevelopment projects.