TC Res. No. 2007-04 APPROVING AN INTERGOVERNMENTAL AGREEMENT WITHTOWN OF AVON, COLORADO
RESOLUTION NO. 07-04
SERIES OF 2007
A RESOLUTION APPROVING AN INTERGOVERNMENTAL AGREEMENT WITH
CONFLUENCE AND AVON STATION METROPOLITAN DISTRICTS
WHEREAS, on March 28, 2006, the Town of Avon adopted and approved an Amended
and Restated Consolidated Service Plan (the "Service Plan") for Confluence Metropolitan
District and Avon Station Metropolitan District (the "Districts"); and
WHEREAS, pursuant to the Service Plan, the Town of Avon authorized the Districts to
issue bonds in accordance with Colorado law to pay for public improvements to be constructed
within and to serve the property within the Districts; and
WHEREAS, the Confluence Metropolitan District is proposing to issue bonds to provide
such public improvements and desires assurance that, in the event the Town of Avon were to
create an urban renewal authority, the Town of Avon would not approve an urban renewal plan
that provided for incremental property taxes or the related specific ownership taxes from
property within the Districts to be pledged to pay debt service or other obligations of such urban
renewal authority; and
WHEREAS, the Council has determined that it is appropriate to allow the incremental
property taxes and related specific ownership taxes that would be imposed by or accrue to the
Districts to be retained, used, and spent by the Districts in accordance with the Service Plan
rather than being directed to pay obligations of an urban renewal authority; and
WHEREAS, the Council desires to confirm such intention by means of an
Intergovernmental Agreement with the Districts.
NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Avon,
Colorado:
1. That the Council does hereby authorize and direct the Mayor of the Town of
Avon to execute, and the Town Clerk to attest, an Intergovernmental Agreement with the
Districts wherein the Town agrees that in the event an urban renewal authority is created within
the Town, the Town shall not approve an urban renewal plan that would allow such urban
renewal authority to receive incremental property taxes imposed by the Districts from increased
property values or the related specific ownership taxes from property within the current
boundaries of the Districts, except that portion of the Avon Station Metropolitan District located
within Lot B, Avon Center at Beaver Creek, for a period through and including December 31,
2047.
2. That a certified copy of this Resolution shall be filed in the records of the Town.
3. That all Resolutions or parts thereof in conflict with the provisions hereof shall be
and the same are hereby repealed.
Done this 27 h day of February, 2007 at Avon, Colorado
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TOWN COUNCIL OF THE
TOWN OF AVON,
EAGLE COUNTY, COLORADO
By: C
Mayor
Av To Clerk
Resolution No. 07-04 IGA Confluence Metro DistrictI
Page 2 of 2
INTERGOVERNMENTAL AGREEMENT
BETWEEN TOWN OF AVON, CONFLUENCE METROPOLITAN DISTRICT,
AND AVON STATION METROPOLITAN DISTRICT
CONCERNING INCREMENTAL TAXES
TIPS INTERGOVERNMENTAL AGREEMENT is made and entered into as
of this day of 2007, by and between the TOWN OF AVON, a Colorado
municipal corporation (t " own"), the CONFLUENCE METROPOLITAN
DISTRICT, a quasi-municipal corporation of the State of Colorado, and the AVON
STATION METROPOLITAN DISTRICT, a quasi-municipal corporation of the State of
Colorado (collectively, the "Districts").
RECITALS
WHEREAS, the Town is a Colorado municipal corporation with the power, inter
alia, to organize an urban renewal authority in accordance with Section 31-25-101, et
seq., C.R.S. (the "Act"); and
WHEREAS, the Town is investigating the-possibility of forming an urban
renewal authority to provide for improvements, facilities and other functions of benefit to
the Town and its residents and taxpayers; and
WHEREAS, the Districts are quasi-municipal corporations organized to provide
certain- public improvements for the benefit of a development project known as
"Riverfront," and
WHEREAS, the Town approved an "Amended and Restated Consolidated
Service Plan" for the Districts on March 28, 2006 (the "Service Plan"), which Service
Plan authorized the Districts to issue general obligation bonds (the "Bonds") to finance
such public improvements; and
WHEREAS, the issuance of the Bonds is dependent upon the Districts' ability to
impose and collect all or most of the real property taxes imposed by the Districts within
the boundaries of the Districts; and
WHEREAS, in order to perform certain operations and maintenance functions
with respect. to public improvements not dedicated to the Town, and to pay the costs of
general administrative expenses of the Districts, the Districts will also depend on the
imposition and collection of real property taxes; and
WHEREAS, if organized, an urban renewal authority would have the power to
collect certain real property taxes imposed by the Districts, if approved by the Town,
based on the incremental increase in property values within the Districts following such
organization, and to apply such revenues for the purposes of the urban renewal authority
rather than the purposes of the Districts; and
WHEREAS, the public improvements being funded by the Districts will assist the
urban renewal authority and reduce the burden on the Town or the urban renewal
authority to directly fund such public improvements; and
WHEREAS, the Districts' ability to issue bonds and otherwise fund operations,
maintenance and administrative expenses will be impaired if the Districts are not able to
impose and collect real property taxes, and associated specific ownership taxes; and
WHEREAS, it is consistent with the Town's approval of the Districts' Service
Plan to preserve the Districts' ability to impose and collect real, property taxes levied by
the Districts, together with the associated specific ownership taxes, during the 40-year
potential term of the Districts' bonds; and
WHEREAS,'the Districts are in the process of issuing bonds, and the execution of
this Intergovernmental Agreement is necessary to facilitate the marketing of such Bonds
at the lowest possible interest rate; and
WHEREAS, the Town is willing to allow the Districts to collect, retain, and spend
the real property taxes and specific ownership taxes from property within the current
boundaries of the Districts, except Lot B within the Avon Station Metropolitan District,
as described on Exhibit A, and based on uses in accordance with the zoning entitlements
for such property as of the date of this Agreement; and
WHEREAS, the parties desire to establish their agreement relating to collection
and use of real property tax by the Districts and associated specific ownership taxes;
NOW, THEREFORE, in consideration of the covenants and mutual agreements
herein contained, and of the receipt of other good and valuable consideration, the amount
and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:
COVENANTS AND AGREEMENTS
1. Districts to Retain Property Tax and Specific Ownership Tax. The Town
has approved certain zoning entitlements for the property within the Districts. In
accordance with the Act, the Town has the authority to approve the organization of an
urban renewal authority following compliance with certain statutory requirements. The
Town also has the authority to approve an urban renewal plan that would allow such
urban renewal authority to receive certain incremental real property taxes imposed by the
Districts from increased property values. Notwithstanding such authority under the Act,
the Town agrees to allow the Districts to collect, retain, and use until December 31, 2047
the real property tax and associated specific ownership taxes obtained from within the
current boundaries of the Districts, except for Lot B within the Avon Station
Metropolitan District, all as described in Exhibit A, and based on uses in accordance with
the zoning entitlements for such property as of the date of this Agreement. The Town
shall not approve an urban renewal plan that, prior to December 31, 2047, would pledge
to an urban renewal authority incremental real property taxes and specific ownership
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bus_re\intergovemmental agreement v6 (1128081_6)
taxes from property within the current boundaries of the Districts, other than Lot B of the
Avon Station Metropolitan District, that would otherwise be payable to the Districts,,
except for and to the extent of any incremental real property taxes or specific ownership
taxes generated by an increase in the total number of permitted dwelling units or
commercial square footage in the zoning entitlements existing as of the date of this
Agreement.
2. Funding of Public Improvements. The Districts shall use any real property
taxes and associated specific, ownership taxes it receives only for those purposes
permitted by the Service Plan, including paying for public improvements to serve
property within the Districts.'
3. Miscellaneous. This Agreement shall be enforceable in accordance with .
the laws of the State of Colorado and may be specifically enforced by either party hereto.
No amendment or assignment of this Agreement shall be permitted without the mutual
written agreement of the parties.
EXECUTED AS OF THE DATE AND YEAR FIRST WRITTEN ABOVE.
TOWN OF AVON
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CONFLUENCE METROPOLITAN AVON STATION METROPOLITAN
DISTRICT DISTRICT
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bus_re\intergovemmental agreement v6 (1128081_6)
EXHIBIT A
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To: Avon Town Council
From: John Dunn, Town Attorney
Randy Funk, Special Counsel
Date: February 27, 2007
MEMORANDUM
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Re: Intergovernmental Agreement With Confluence Metropolitan District
Council is being asked to approve an Intergovernmental Agreement with Confluence
Metropolitan District which would limit the incremental tax revenues from Riverfront
Subdivision in the event an urban renewal authority is created. The effect of the agreement
would be that the urban renewal authority, if created, would not receive incremental property and
specific ownership taxes otherwise payable to the Confluence and Avon Station Metropolitan
Districts (the "Districts"). The agreement would have no effect on incremental tax revenues
assessed within Riverfront Subdivision and payable to other jurisdictions.
On March 28, 2006, the Town approved an Amended and Restated Consolidated Service
Plan (the "Service Plan") for the Confluence Metropolitan District and the Avon Station
Metropolitan Districts. The Service Plan authorized the Districts to issue general obligation
bonds to finance certain public improvements.
The Town is investigating the possibility of forming an urban renewal authority. If an
authority is created, an- urban renewal plan for an area that includes property within the Districts
known as "Riverfront" could be approved.
When the Council approves an urban renewal plan, one component is the financing plan.
Such an urban renewal plan could commit the tax increment from an area, including the
incremental taxes from other local governmental entities, to pay debt service on bonds or other
obligations of the urban renewal authority.
The Confluence Metropolitan District is preparing to issue bonds. By law and under the
limitations of the Service Plan, the term of such bonds issued by the Districts could be up to
40 years. In order to assure that the property taxes and specific ownership taxes imposed by the
Districts are not used by the urban renewal authority, the Confluence Metropolitan District has
requested that the Town enter into an Intergovernmental Agreement to agree not to approve an
urban renewal plan that would allow the urban renewal authority to receive incremental property
taxes imposed by the Districts during the potential term of the bonds.
bus_r6council memo 022707 (1143738_1).doc
Avon Town Council
February 27, 2007
Page 2
Under the proposed IGA, the Town agrees to allow the Districts to collect, retain, and use
the property tax and associated specific ownership taxes obtained from within the current
boundaries of the Districts until December 31, 2047. The Town agrees not to approve an urban
renewal plan that, prior to December 31, 2047, would pledge to an urban renewal authority
property tax increment payable to the Districts and specific ownership taxes from property
within the current boundaries of the Districts that would otherwise be payable to the Districts. In
consideration of such agreement by the Town, the Districts will use such taxes for the purposes
specified in the Service Plan, including paying for public improvements to serve property within
the Districts.
The proposed IGA is not an agreement for the joint use of buildings, equipment- or
facilities, or for furnishing or receiving commodities or services of public benefit within the
meaning of the Town Charter. Accordingly, a two-thirds vote for passage of the resolution is not
required.
bus_r6council memo 022707 (1143738_1).doc .L