Lawmakers debate merits of urban renewal tax breaks
“pponents of urban renewal projects such as Vail’s Arrabelle and Avon’s Westin say the projects just move money from their pockets to someone else’s.
Supporters say without those projects, there wouldn’t be any new money in either pocket.
Urban renewal authorities give developers a property tax break, known as tax increment financing, for up to 25 years. The policy is good for cities trying to redevelop run-down areas, but counties and other taxing entities funded by property taxes say that the money the projects pour into cities is drained from their coffers, while their costs to deal with these projects go up immediately.
From that perspective, the tax break for local hotel and mall developments has cost Eagle County schools $9.4 million since 2007, and the county government $3.9 million over the same period. The state provides money to cover the schools’ lost revenues, but not the counties, and county officials want a bigger piece of that pie up front.
Toward that end, on the last day of this year’s legislative session, Colorado lawmakers approved House Bill 1375, which would do just that. Gov. John Hickenlooper has not indicated whether he will sign it.”
Wyrick, Randy. Vail Daily 15 May 2014.