ARISTA LOCAL IMPROVEMENT DISTRICT AGENDA MEMORANDUM

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1 City and County of Broomfield, Colorado ARISTA LOCAL IMPROVEMENT DISTRICT AGENDA MEMORANDUM To: From: Prepared by: Arista Local Improvement District Board George Di Ciero, City and County Manager Charles Ozaki, Deputy City and County Manager Meeting Date Agenda Category Agenda Item # May 9, 2006 Arista LID Business 15 (a) 1. Consideration of Petitions for Inclusion of RTD, State Land Board, Colorado Department of Transportation, and Moreland Properties LLC into the Arista Local Improvement Agenda Title: District; and 2. Resolution No AID - Approving the Inclusions of Additional Real Property within the Arista Local Improvement District Summary The Arista project is a mixed use retail, commercial, special event and residential development with an urban, transit and pedestrian orientation designed to work with RTD s Fastracks program. On August 23, 2005, the City Council approved Ordinance No. 1816, creating the Arista Local Improvement District (LID) as authorized by the Broomfield Home Rule Charter and Chapter of the Broomfield Municipal Code. Local Improvement Districts are created to make locall improvements using revenue generated from within the local area benefiting from the improvements. On November 1, 2005, the LID conducted an election of property owners within its boundaries which resulted in the establishment of a 0.2% sales tax within its boundary. This is the same LID sales tax rate in place in Flatiron Crossing. Arista LID sales tax revenue will be used for the construction and debt service for the parking structure proposed to serve Arista, Broomfield Event Center and RTD transit center. It is the intent of the developer, Wiens Development, to eventually include the entirety of the Arista development within the LID and as parcels are acquired they will be petitioned for inclusion. The City Council is the Board of Directors for the LID. Additional properties have been proposed to be added to the LID and proposed Resolution No AID will approve the inclusion of the properties. Petitions for inclusion have been received from the Regional Transportation District, State Land Board, and Moreland Properties LLC, as property owners, to include their properties within the LID. Property currently owned by the Colorado Department of Transportation (CDOT) is anticipated to be submitted for inclusion in the future when the developer of Arista acquires the property. The three properties will add approximately 73 additional acres of property to the LID. The properties are zoned for commercial use. The inclusion of these additional properties has been considered in the projections for sales tax for the entire Arista development in the City s financial plan. The total Arista LID sales tax at build out, with the inclusion of the three properties and the CDOT property, is projected to be $ 448,297 per year. A proposed Resolution No AID that will approve an Intergovernmental Agreement (IGA) by and between the Arista Metropolitan District, which will be issuing bonds to provide funds for construction of the parking structure, and the LID that will pledge its revenue to the District for the purpose paying for a portion of the bonds will be presented for consideration at the May 23, 2006 meeting.. This proposed action coordinates with several other actions by the City Council and the Broomfield Urban Renewal Authority. Council/LID Actions Ordinance No. 1816, adopted by the Broomfield City Council on August 23, 2005, established and organized the Arista Local Improvement District. When adopted, Ordinance No will Authorize the IGA between the LID and the Arista Metropolitan District. Financial Considerations The total annual LID sales tax generated from the Arista Development at build out, with the inclusion of the RTD, State Land Board, Colorado Department of Transportation, and Moreland properties, is projected to be $ 448,297. The LID sales tax will be a source of revenue to finance construction of the Arista, BEC and RTD parking garage. Alternatives Approve the resolution including additional properties or request additional information from staff. Proposed Actions/Recommendations Based on the above, it is recommended That Resolution No AID be adopted

2 Inclusion of Additional Properties within the Arista LID Page 2 BACKGROUND City Council created the Arista Local Improvement District (the "Arista LID") by Ordinance No. 1816, adopted on August 23, The Arista LID is a geographical division of the City and County and has all powers and authorities necessary to provide any public improvement which the City and County is authorized to provide under the Charter, including transportation services and improvements within the Arista LID. The Arista LID also has the power to levy sales tax to pay all or a portion of any such public improvements constructed or transportation services provided and for the operation and maintenance of such improvements. City Council is the board of directors of the Arista LID. On November 1, 2005, the Arista LID conducted an election of property owners within its boundaries which resulted in the establishment of a 0.2% sales tax within its boundary. This is the same LID sales tax rate in place in Flatiron Crossing. Section of the Broomfield Municipal Code provides that the owner of any real property, zoned for commercial purposes, which is located within the City and County of Broomfield may submit to the board of an improvement district organized to provide transportation services or improvements, a verified petition for the inclusion of the property into the improvement district. City Council sitting as the board of the Arista LID must hear such petitions at a public meeting. If the inclusion of such property is determined to be in the best interests of the improvement district, the board may, by resolution, approve the inclusion of such property into the improvement district. The Arista LID Board has received verified Petitions for Inclusion into the boundaries of the Arista LID from the Regional Transportation District of approximately 46 acres of additional real property, from Moreland Properties, LLC of approximately 20 acres of additional real property, and from the State Land Board of Colorado of approximately 7 acres of additional real property. These petitions are included as Exhibits to attached proposed Resolution No ID. It is anticipated that property currently owned by the Colorado Department of Transportation of approximately 7 acres will be requested to be included when it is purchased by the developer of Arista. The boundaries of those properties and the boundaries of the current Arista LID are pictured below.

3 Inclusion of Additional Properties within the Arista LID Page 3 The inclusion of these additional properties has been considered in the projections for sales tax for the entire Arista development in the City s financial plan. The total annual Arista LID sales tax at build out, with the inclusion of these four properties, is projected to be $448,297. Sales tax revenues to the Arista LID will be used for the construction of improvements and to pay the debt service on the public parking structure proposed for the Broomfield Event Center and RTD use. A proposed Resolution No AID that will approve an Intergovernmental Agreement by and between the Arista Metropolitan District, which will be issuing bonds to provide funds for construction of the parking structure, and the LID that will pledge its revenue to the District for the purpose paying for a portion of the bonds will be presented for consideration at the May 23, 2006 meeting.. This proposed action coordinates with several other actions by the City Council and the Broomfield Urban Renewal Authority. It is staff s recommendation RECOMMENDATION That Resolution No ID be adopted.

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6 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY AND COUNTY OF BROOMFIELD, COLORADO, ACTING AS THE BOARD OF DIRECTORS OF THE ARISTA LOCAL IMPROVEMENT DISTRICT : Section 1. That the RTD Inclusion within the Arista Local Improvement District i s hereby approved and the RTD Inclusion shall be effective as of the date of the filing of this Resolution with the City Clerk of the City and County of Broomfield. Section 2. That the Moreland Inclusion within the Arista Local Improvement District i s hereby approved and the Moreland Inclusion shall be effective as of the date of the filing of this Resolution with the City Clerk of the City and County of Broomfield. Section 3. That the State Land Board Inclusion within the Arista Local Improvemen t District is hereby approved and the State Land Board Inclusion shall be effective as of the date of the filing of this Resolution with the City Clerk of the City and County of Broomfield. Section 4. That this Resolution is effective upon its approval by the City Council of the City and County of Broomfield, Colorado, acting as the Board of Directors of the Arista Local Improvement District. ADOPTED AND APPROVED this 9th day of May, L -1 fi) r Mayor ATTEST : City Clerk APPROVED AS TO FORM : hahn, Sith, Walsh & Mancuso, P.C. -3-

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15 PETITION FOR INCLUSION The undersigned, Bcrrj. as C of the State of Colorado by and through the Colorado Stai Board of Land Commissioners, the fee owner of certain real property situate in the City and County of Broomfield, Colorado (the "Petitioner"), in accordance with Section of the Broomfield Municipal Code, hereby respectfully petitions the Arista Local Improvement District (the "Arista LID"), acting by and through its Board of Directors (the "Board"), for the inclusion of certain real property into the District, subject to the conditions described herein (the "Inclusion"). The land to be included consists of approximately 7 acres, situate in the City and County of Broomfield, State of Colorado and is legally described on Exhibit A attached hereto and incorporated herein (the "Property"). The property is currently zoned or will be zoned for commercial uses. The Arista LTD was formed for the purpose financing the construction of transportation facilities and services. The Arista LID will impose a new 0.20% sales tax ("Sales Tax") on all retail sales transactions occurring within the property that lies within the boundaries of the Arista LID. The Sales Tax will be utilized to assist in financing the construction and operation and maintenance of a multi-level parking structure to be constructed by the Arista Metropolitan District. The parking structure will benefit the Property. The Petitioner hereby assents to the inclusion of the Property into the boundaries of the District upon the approval of a resolution by the Board of the Arista LID. Petitioner acknowledges that from and after the effective date of such resolution, the Property shall be subject to all taxes, charges and assessments to be imposed by the Arista LID. The Petitioner represents to the Arista LID that it is the 100% fee owner of the Property and that no other person(s), entity or entities own(s) an interest therein except as beneficial holder(s) of encumbrances. SIGNATURE PAGE ATTACHE D { DOC v :I }

16 PETITIONER : STATE OF COLORADO BY AND THROUGH THE COLORADO STATE BOARD OF LAND COMMISSIONER S By : Its: 1DE.C-t o Address of Petitioner : 1313 Sherman Street, Room 621 Denver, CO STATE OF COLORADO ) COUNTY OF ) The fore oing instrument w acknowledged before me this ay of 2006, bye1,?7' of the State of Co orado by and through the Colorado Sta e Board of Land Commissioners. Witness my hand and official seal. My commission expires : 0ZdO 7 Notary Public t. - P { DOC v:i} 2

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