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New Urban Renewal in Colorado's Front Range

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New Urban Renewal in Colorado's Front Range Independence Institute • 13952 Denver West Parkway, Suite 400 • Golden, Colorado 80401 • 303-279-6536 • i2i.org/cad.aspx New Urban Renewal in Colorado’s Front Range by Jennifer Lang Issue Paper 2-2007 February, 2007 New Urban Renewal in Colorado’s Front Range by Jennifer Lang Independence Institute 13952 Denver West Parkway, Suite 400 Golden, Colorado 80401 303-279-6536 i2i.org/cad.aspx Issue Paper 2-2007 February, 2007 Contents Introduction .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..5 Urban Renewal Authorities .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..6 New Urbanism .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 10 Denver . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 11 Lakewood . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 12 Louisville .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 13 Conclusion . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 14 Appendices .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 15 I. Front Range Urban Renewal Authorities .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 15 II. Denver TIF Districts .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 15 III. Current and Recent Urban Renewal Projects in the Denver Metro Area . .. .. .. .. .. .. .. 15 References .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 16 Cover: The Denver Pavillions, a shopping mall supported with more than $30 million in urban-renewal funds. City of Denver photo. Your tax dollars at work: Denver spent close to $300 million subsidizing row houses and other high-density, mixed- use developments at Stapleton. New Urban Renewal in Colorado’s Front Range 5 Introduction Colorado is home to more than four million increasingly used for another purpose: to shape people with most of the population settled development that would have taken place in along the Front Range of the Rocky Mountains any case so that it follows the latest planning between Fort Collins and Colorado Springs. At fads instead of market demands. Whether a the center of this region is the mammoth city of neighborhood is blighted or not is less important Denver and its numerous sprawling suburbs. than whether planners have decided to transform From Aurora to Wheat Ridge, more than forty the neighborhood to meet their vision of what a cities and seven counties make up the Denver residential or business district should look like. metropolitan area. Developers who might build to meet market Colorado law gives cities the right to form demand are encouraged by subsidies instead to urban renewal authorities that can use public build to follow planners’ dreams. money to eliminate blight and promote urban This trend is likely to accelerate with passage revitalization. About half of the cities in the of the FasTraks rail transit program. Part of this Denver metro area have created such an authority program calls for concentrating development (see list in appendix I).1 within a quarter- to a half-mile of rail stations Despite its good intentions, urban renewal so that more residents and businesses can can have many unintended consequences, one be accessible to rail transit. Residents of of which is that it gives planners opportunities to neighborhoods near planned rail stations impose their vision of how Coloradans should live. are likely to find planners declaring their This paper examines some of the urban renewal neighborhoods to be blighted so that the cities authorities along the Front Range, evaluates the can use urban-renewal money and eminent processes used to advance development, and domain to transform the neighborhood. describes how these authorities are affecting the Traditional urban renewal has been criticized landscape of the Denver metropolitan area. for eliminating affordable housing and eating Urban renewal puts municipal government into property taxes that would otherwise go for in the development business. The Denver Urban schools, fire, police, and other essential services.3 Renewal Authority candidly describes itself as This new form of urban renewal will likely a “civic entrepreneur.”2 The original purpose create additional controversy by subsidizing of such urban renewal was to take blighted and unmarketable transformations of neighborhoods run-down neighborhoods and districts that that, by most measures, are far from blighted were attracting little or no private investment solely because those neighborhoods happen to and stimulate the transformation into attractive, be near a planned rail station. thriving areas. In recent years, however, urban renewal is Move to Colorado, the land of wide open spaces, so you can live in a row house? 6 New Urban Renewal in Colorado’s Front Range Urban Renewal Authorities Whether they are called an urban renewal authority, “faulty lot layout,” and “inadequate public economic development authority, redevelopment improvements” allow planners to declare just authority, or downtown development authority, about any neighborhood as blighted. As one most Colorado development authorities operate Louisville resident complained during a debate under similar laws. Whatever the name, the over an urban-renewal plan, such conditions urban renewal authority consists of a commission could be found in “virtually every neighborhood that is either identical to or appointed by the city in Louisville.”6 Despite the prevalence of such council. “blight,” Louisville was named one of the “five The commission can identify urban renewal best cities to live” in the U.S. by Money magazine districts in which it plans to target assistance for in 2005.7 redevelopment. In order to qualify as an urban- Moreover, an authority can also declare an renewal district, the commission must show area blighted even if it meets only one of the that the area is blighted.4 Under Colorado law, above criteria provided that the landowner is the following conditions are characteristic of willing to agree that “in its present condition” blighted areas: the property “substantially impairs or arrests 1. Slum, deteriorated, or deteriorating the sound growth of the municipality, retards structures; the provision of housing accommodations, or 2. Predominance of defective or inadequate constitutes an economic or social liability, and street layout; is a menace to the public health, safety, morals, 3. Faulty lot layout in relation to size, adequacy, or welfare.”8 This allows canny landowners to accessibility, or usefulness; have their property declared blighted due to, 4. Unsanitary or unsafe conditions; say, a “faulty lot layout” or “inadequate street 5. Deterioration of site or other layout,” and then receive subsidies for whatever improvements; development the city wants them to build on 6. Unusual topography or inadequate public that property. improvements or utilities; To fund urban renewal, the commission 7. Defective or unusual conditions of title cannot increase property taxes, but it can keep the rendering the title nonmarketable; property taxes collected on all new or incremental 8. The existence of conditions that endanger development within a district for up to twenty- life or property by fire or other causes; five years. This is known as tax-increment financing 9. Buildings that are unsafe or unhealthy for (TIF) because the urban renewal is financed out persons to live or work in because of building of the increment that is added to the tax base code violations, dilapidation, deterioration, after the district is created. defective design, physical construction, or If the development includes retail shops, the faulty or inadequate facilities; authority can also increase the local sales tax 10. Environmental contamination of buildings and use that sales tax for urban renewal. This or property; or sales tax is known as a property-improvement 11. The existence of health, safety, or fee (PIF). To keep local retailing competitive, welfare factors requiring high levels of some authorities have offset this increase with a municipal services or substantial physical reduction in the sales taxes that otherwise would underutilization or vacancy of sites, be spent on other municipal needs. buildings, or other improvements.5 Typically, the commission estimates the The law requires urban renewal authorities to amount of taxes that will be collected from the find at least four of the above eleven conditions new development and then sells bonds that will before the authority can take land by eminent be repaid by those taxes. The proceeds from bond domain. However, the use of vague and unclear sales are then invested in the district to promote terms such as “inadequate street layout,” redevelopment. In the case of a downtown New Urban Renewal in Colorado’s Front Range 7 development authority, a vote of the people is County, 1.6 percent
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