Financial Presentation on Urban Renewal to City Council by Doug Clark – Former Mayor of Ltn

Below are the notes that Doug Clark spoke from when he addressed the council on June 3rd, 2014.  The most striking thing to me about all of this is LIFT was just granted a $200,000 loan from the City by Council on Dec. 16th, 2014 when the urban renewal authority is still in debt to the City.  Are we throwing good money after bad?

Presentation on LIFT Debt and Spending

June 3, 2014

1. The Riverfront Redevelopment Urban Renewal Project was a failure
• Was supposed to be mixed use: residential, office, commercial, retail.
• Only the retail was built. Retail failed after 4 years. Vacant for 9 years. Converted to office. • Writer Corp. lost $22M, bondholders lost $17M, Littleton lost $12M.

2. LIFT is unlawfully spending incremental tax revenue collected during that project.

  • LIFT has $142,000 in 2012
  • All that money came from tax increment revenue.
  • CRS 31-25-107 (9)(II) says tax increment can only be spent to retire debt for an urban renewal project.
  • CRS 31-25-103 (10) says an urban renewal project must be in accordance with an urban renewal plan.
  • CRS 31-25-107 (1)(a) says no action can take place on an urban renewal plan until the area has been blighted by the governing board.
  • The only urban renewal area blighted by Council is Riverfront Area. The only urban renewal plan approved by Council is the Riverfront Redevelopment Plan.
  • Spending that $142,000 on activities not related to Riverfront, such as Ricker/Cunningham, LIFT staff, is unlawful.3. LIFT owes the City of Littleton approximately $12 million, and is in default on that debt.
  • LIFT owes the City $200,000 plus interest for 1983 City Note for money loaned to LIFT.
  • LIFT owes the City $1,235,189 plus interest for City land sold to LIFT on promissory note, the 1984 City Note.
  • Both debts/notes were created by City Council by ordinance and resolution. Both Notes have been approved by LIFT by various LIFT resolutions and recognized as binding by LIFT legal counsel.
  • There has been no Council action to rescind or alter the 1983 or the 1984 Notes.
  • LIFT bond documents, which were approved only by LIFT and not by Council, cannot alter theterms of valid, legally binding debt between LIFT and the City of Littleton.
  • City staff cannot alter Council actions unless authorized by Council. There has been no such authorization by the City Council.
  • “Writing off the debt” by the city staff does not invalidate the obligation of LIFT to pay the debt.
  • Both notes are in default. 1983 Note is due after bonds are defeased. 1984 Note is due 12 months afterbonds are defeased or 31 years from 1984, whichever comes first.
  • Bonds were defeased in December 2008.
Advertisements

About Carol

Long time Littleton resident (since 1963) and have been actively engaged in watching council and planning board since 2005.
This entry was posted in Editorials on UR and TIF Worth Reading, Tax Incremental Financing (TIFs) and tagged . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s