Dillon Urban Renewal Authority

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In Colorado, Urban Renewal Authorities (URAs) play a key role in revitalizing and developing areas that have experienced economic decline or underutilization. Under Colorado Revised Statutes (CRS) 31-25-104, an Urban Renewal Authority is a designated governmental entity authorized by municipalities to focus on urban renewal projects aimed at improving blighted, deteriorated, or underdeveloped areas. The function of a URA is to facilitate the redevelopment of such areas, addressing both physical and economic challenges, such as outdated infrastructure, vacant properties, and stagnant local economies.

The primary goal of URAs is to eliminate the causes of urban blight by promoting private and public sector partnerships, often working with developers and property owners to breathe new life into struggling districts. This partnership model can significantly benefit small towns, such as mountain communities, that may face unique challenges in attracting development or investment. Municipalities gain access to specialized resources, financing tools, and technical expertise to foster transformative projects by utilizing the URAs in partnership with private investments.

The Dillon Urban Renewal Authority, established in 2009, has partnered with private investment for a number of projects. Through community visioning and public private partnerships, Dillon has Tax Increment Financing available to help to shape a revitalized community. It takes that vision and the willingness to strive to implement that vision for the success of the established urban renewal authority to be an effective tool for a sustainable future for the town. An investment now in urban renewal can spur future successful revitalization efforts in the community.

Town of Dillon Urban Renewal Plan

July 21, 2009, amended February 7, 2012, and December 1, 2015

Background and Completed Projects

2006: Town Center Revitalization Strategy & Community Survey – Leland Consulting Group
2007: Town adoption of the Dillon Economic Revitalization Committee’s Town Center Vision and Direction Plan
2008: Town of Dillon Conditions Survey
2009: Town adoption of the Town of Dillon Urban Renewal Plan
2011: Pug Ryan’s expansion with DURA assistance
2012: Town adoption of an amended Town of Dillon Urban Renewal Plan
2015: Town adoption of an amended Town of Dillon Urban Renewal Plan
2017: Sail Lofts purchased land from DURA at market rate
2018: Homewood Suites TIF Agreement
2020: Uptown 240 TIF Agreement
2025: DURA Assistance Agreement with Lake Dillon Preschool for Playground Improvements

DURA Commissioners

Tax Increment Financing (TIF)

Tax Increment Financing (TIF) is a unique mechanism that enables a Urban Renewal Authority to use the net tax revenues generated by projects within a designated urban renewal area to help finance future improvements. TIF is a new source of tax revenue, not an additional tax. The revenue would not be available but for new investment. It is that realized economic benefit that is invested into the revitalization project. When a redevelopment project is being planned, the Urban Renewal Authority or Board analyzes how much additional property and/or sales taxes may be generated once it is completed. That “tax increment” then can be used by the urban renewal entity either to finance the issuance of bonds or to reimburse developers for a portion of their project costs. In either case, the new tax revenue that is created must be used for improvements that have a public benefit and that support the redevelopment effort (source: Denver Urban Renewal Authority from the Leland Conditions Survey). If and when property taxes collected are above the amount of the base year, the taxes collected in excess of the base year amount are transferred to a special fund of the Dillon Urban Renewal Authority for redevelopment projects, loans, bonds, etc. In the case of the Dillon Urban Renewal Authority, the base year was set in 2011. As established by the State Statutes, tax increment financing districts have a maximum lifetime of 25 years. After the 25-year period, the property taxes collected are distributed to the public entities as they were before formation of the “TIF” district.

Urban Renewal Assistance

The Dillon Urban Renewal Authority (“DURA”) is the Urban Renewal Authority within the Town of Dillon, Colorado, which has been duly formed under the Urban Renewal Act of Colorado (the “Act”). DURA’s mission includes carrying out the Dillon Urban Renewal Plan (the “Plan”) adopted in July, 2009, and amended in February, 2012.

The purpose of the Plan is to reduce, eliminate and prevent the spread of blight within the Dillon Urban Renewal Area (the “URA”) and to stimulate growth and investment within the URA boundaries. The boundaries of the URA are coterminous with the corporate boundaries of the Town of Dillon.

DURA has the authority to collect the incremental property taxes from improvements in the URA to provide assistance to projects that eliminate the blighting factors identified when the URA was formed.

DURA also has the ability under the Act to sell, lease, or otherwise transfer real property or any interest in real property, at not less than its fair value (as determined by DURA), in accordance with the Plan and the Act and subject to the competitive bidding procedures set forth in the Act. In determining the fair value of real property for uses in accordance with the Plan, DURA takes into account and gives consideration to the uses provided in the Plan; the restrictions upon and the covenants, conditions, and obligations assumed by the purchaser or lessee; and the objectives of the Plan for the prevention of the recurrence of slum or blighted areas.

It is DURA’s intent to provide assistance to stimulate private investment in cooperation with property owners and other affected parties in order to accomplish the objectives of the Plan. Public-private partnerships and other forms of cooperative development will be critical to DURA’s strategy for stimulating growth and reinvestment and preventing the spread of blight and eliminating the blighting conditions.

DURA will consider assistance on projects that address the blighting conditions present in the URA, and that provide economic growth for the community. To be considered for assistance, projects must address several of the objectives outlined in the Plan, and the priorities of the following plans and reports, as applicable:

1. Town of Dillon Parks and Recreation Master Plan 2007

2. Dillon Town Center Vision and Direction 2007

3. Dillon Town Center Revitalization Strategy 2007

4. Dillon Marina Master Planning Report 2008

5. Dillon Economic Revitalization Advisory Committee Report 2008

Projects will be evaluated on several factors including, but not limited to:

1. The ability to stimulate growth and reinvestment in the URA

2. The elimination or prevention of blight in the URA

3. The magnitude of positive effect caused by the project

4. The need for public assistance to complete the project

5. The economic benefits to the community from the project

6. The effect of the project on surrounding property

7. The increase in property value created from the project

8. The conformance of the project to the Comprehensive Plan and plans and reports listed above

Assistance is generally provided to projects for public infrastructure improvements needed to facilitate the revitalization of property within the URA. Typical public infrastructure investments may include but are not limited to unifying streetscape elements, improving traffic and pedestrian access and circulation, improving streets and parks, providing for parking, and completing utilities.

Parties interested in assistance from DURA must complete an Application for Assistance (Attachment A). DURA may ask the applicant for additional information after an initial review, as each project is unique. This application is not an offer to contract and the submission of an application confers no rights, duties or entitlements to any party. The provision of assistance is at the sole discretion of DURA, and DURA reserves the right to reject or approve requests for assistance on a case-by-case basis.

Meeting DURA objectives or policies does not assure any award of assistance, and decisions concerning one project do not set any precedent with respect to any other project. Assistance is provided only through an Agreement between and signed by DURA and the applicant.

All development in the URA must conform to the Town’s Comprehensive Plan, zoning code, building codes, applicable design standards and any site-specific zoning for the subject properties, all as in effect and as may be amended from time to time.

Parties interested in obtaining assistance from DURA must complete the Application for Assistance. Questions regarding the application or process may be directed to:

Ned West Town Planner

nwest@townofdillon.com