Incentive Policy Clean VersionRESOLUTION NO. 08 -54
SERIES OF 2008
A RESOLUTION TO ADOPT COMMUNITY REVITALIZATION PUBLIC - PRIVATE
PARTNERSHIP GUIDELINES
WHEREAS, the Town of Avon desires to promote, encourage and stimulate
private development and investment that realizes public benefits for the Avon
community; and
WHEREAS, the Town believes that certain types of development and investment
lead to positive economic growth, stabilization and achievement of Comprehensive
and Area Plans goals as public benefits; and
WHEREAS, the Town acknowledges that different areas of Avon offer varying
degrees of opportunity for public - private partnerships to achieve these benefits
through quality (re)development ; and
WHEREAS, the Town desires to provide greater partnership opportunities to
meritorious projects in areas of Avon where market activity either has, or has the
potential to, lag behind community needs and goals; and / or, raise standards of
development and effectively ready the environment for catalyzing investment.
NOW, THEREFORE, BE IT HEREBY RESOLVED, that the Town Council of the Town of
Avon, Colorado, adopts the attached Community Revitalization Public- Private
Partnership Guidelines.
ADOPTED AND PASSED, this 9th day of December, 2008.
By:
ATTEST:
Patty McKenny
Town Clerk
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TOWN OF AVON
Ronald C. Wolfe
Mayor
COMMUNITY REVITALIZATION
PUBLIC - PRIVATE PARTNERSHIP GUIDELINES
Town of Avon, Colorado
I. INTRODUCTION
The Town of Avon ( "Town ") believes that certain types of investment in the
Town lead to positive economic growth, stabilization and achievement of
Comprehensive and Area Plans goals as public benefits. However, the Town
also acknowledges that different areas of Avon offer varying degrees of
opportunity for public - private partnerships to achieve these benefits through
quality (re) development. Therefore, the Town has designed these Guidelines to:
provide greater partnership opportunities to meritorious projects in areas of
Avon where market activity either has, or has the potential to, lag behind
community needs and goals; and / or, raise standards of development and
effectively ready the environment for catalyzing investment. (See discussion of
Catalyst Investment Areas.) To this end, and in accordance with the provisions
and conditions of these Guidelines, the Town will, on a case -by -case basis,
consider entering into public - private partnerships offering benefits and
incentives for new development and redevelopment that advances the
community's vision in accordance with adopted Town Planning Documents
( "Town Planning Documents ").
II. PURPOSE
The Town of Avon desires to promote, encourage and stimulate private
development and investment that realizes public benefits for the Avon
community which are defined in the Avon Municipal Code under Section
17.28.085. Such public benefits include, but are not limited to: achievement of
goals set forth in Comprehensive and Area Plans, economic stabilization,
enhancement and / or diversification, preservation of property values, provision
of public amenities and / or facilities identified in adopted Town Planning
Documents; and, promotion of self- sufficiency and sustainability on a
community -wide basis. These Partnership Guidelines outline specific resources
that might be made available to meritorious projects, as well as defines the
process that will be used to evaluate project requests. Specific Guideline purpose
statements include:
1. Provide guidance to the development and investment community to
understand when incentives may be appropriate;
2. Establish an orderly public process for consideration and approval of
incentives;
3. Provide short -term assistance for eligible projects that have verifiable
financing gaps;
4. Promote the efficient use of incentives to maximize the public benefits to
the Avon community;
5. Make available assistance for the minimum possible length of time;
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6. Discourage the use of incentives when not necessary to realize the
proposed public benefits or not appropriate as a matter of public policy;
and,
7. Promote accountability to the general public in the use of public funds and
resources.
It is the objective of these Guidelines that the Town's strategic investment of its
resources improve Avon's entire portfolio of community assets and facilitate the
development and redevelopment of projects that provide a public benefit that
could not be realized without the Town's investment. Further, it is the Town's
intent to manage the implementation of the Guidelines so that partnership
benefits and incentives are fairly distributed across geographic and market
sectors and appropriately applied based on the community vision. To that end,
these Guidelines may be updated from time -to -time so as to remain consistent
with adopted Town Planning Documents.
Note: Public - private partnerships are subject to approval by the Town Council.
These Guidelines are not intended, and shall not create, any entitlement or right
of any applicant to approval of an incentive.
III. DEFINITIONS
Capitalized terms used in these Guidelines, but not defined elsewhere, shall have
the following meanings:
Applicant: An individual or entity proposing to advance a new development or
redevelopment project for which they are requesting participation by the Town.
Business Recruitment/ Retention: A program, frequently administered by an
economic development entity, which assists with the recruitment or retention of
business into or within a designated area. Program elements might include
financial assistance, regulatory assistance, and / or marketing.
Capital Improvement Plan (CIP): Dollars earmarked for improvement and
extension of infrastructure in municipalities.
Density Bonuses: Allowance for additional density in the form of increased
units, building height, floor area ratios and / or maximum square footage in
consideration of a public benefit. Note: This tool is sometimes used with the
Transfer of Development Rights (TDR) tool which allows a property owner to
transfer density rights from one parcel to another within a specific geographic
area.
Development Fee Waivers: A program intended to reduce development costs
by waiving or deferring various fees and charges associated with a development
project, i.e. tap fees, building permit fees, processing fees, etc.
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General Obligation Bonds: Bonds secured be the general taxing authority of the
Town. In Colorado, the issuance of general obligation bonds require approval by
the general electorate of the Town.
Improvement District: Both an organizing and financing technique for area
revitalization. Improvement districts provide a stable stream of income for
activities and projects considered special to an area or in addition to general
municipal services. Improvement districts are a vehicle for providing additional
services for a fee and should not be considered a substitute for services funded
through traditional tax revenues.
Infrastructure Cost Participation: The sharing of infrastructure costs (either on-
site or off -site) by developers and / or property owners with an entity (public,
private, or semi - private) which will benefit from its availability.
Land Assembly: Land assembled by public, private or non - profit entities in an
effort to position it for development of larger projects. Assemblies can happen
through purchases of properties, vacations and / or the rerouting of streets,
alleys, etc.
Land Donation / Write -Down: The contribution of land to a project by a
property owner either as a donation without an expected return, or at a reduced
price.
Land Swap: The offer of an exchange of town -owned land for land of similar
value in an alternative location in order to develop specific infill sites in a
specified manner.
Loan Pool (Lending Pools): Several lending organizations contributing
financing to a project or projects, thus sharing risk. An amount of capital
pledged by several entities for lending to businesses based on some agreed upon
goals or other criteria. Pledges can be in the form of loans, letters of commitment
and stock purchases. Pools can be either organized formally or on a case -by -case
basis.
Parking District: Designated area wherein parking design, development and
management issues among multiple facilities beyond that provided for by
standard municipal levels of service are controlled by a select entity.
Pedestrian Enhancements and Linkages: Various public, private and non - profit
initiatives to improve the pedestrian environment in a designated area, i.e.,
permanent and temporary streetscape elements, sidewalk widening, reduced
speeds, etc. The resulting environment is designed to accommodate the needs of
pedestrians, as well as through- and destination - traffic, by incorporating select
infrastructure improvements, design elements, and traffic management
mechanisms. Methods to achieving this include: separating traffic through the
use of parallel streets; limiting access points; linking parking lots; coordinating
traffic signals; adding alternative transportation lanes; widening sidewalks;
providing crosswalks, street lights and furniture; preventing "deadening' uses
without building fronts; and, incorporating transit stops.
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Predevelopment Funding Grants: Financing for project expenses incurred prior
to construction, i.e., soft costs including consulting, design, engineering,
planning, marketing, etc.
Public Subordination: Town guarantee to a lending institution that, in the event
of default, debt service will be paid.
Redevelopment: The reconstruction or improvement of an area within an
existing built - environment.
Revenue Bonds: Bonds secured by, and by which may be issued and amortized
from, the anticipated revenue which results from the improvement that was
funded.
Revenue Sharing: An incentive program by which certain anticipated future
revenues from a development can be shared, rebated or refunded to the
developer to assist in paying for infrastructure.
Streamlined Development Approval: Initiatives by government entities to
facilitate a timely approval process for (re)development projects meeting certain
criteria. Also referred to as a "green -tape' permitting program. Critical
elements of these types of programs include: 1) streamlined permitting and
entitlement process; 2) greater predictability; and, 3) fairness in fees and
exactions. Example components might include: 1) an appointed case manager;
2) a consolidated permitting process; 3) waived or reduced fees; 4) a single public
hearing; and, 5) a streamlined environmental review process.
Streetscape: Improvements to streets that enhance pedestrian activity.
Streetscape enhancements may include: special paving, trees, planters, kiosks,
fountains, plazas, benches, bicycle racks, vehicular and pedestrian lighting, and
other public space amenities deemed desirable by the Town.
Tax Exempt Bond Financing: Method of financing long -term debt issued by the
government whereby bondholders need not include interest payments on taxable
income.
Tax Increment Financing (TIF): A financing concept whereby increases in
property and sales tax revenues that arise from new development over and
above a designated revenue base are pledged to finance the debt services of a
bond issue, or may be used to finance redevelopment activities.
Town Planning Documents: All documents adopted through the public hearing
process by the Town Council after review by the Planning Commission,
including but not limited to the West Town Center Investment Plan, the Town
Center West Area Urban Renewal Plan, the Avon East Town Center District Plan,
and the Town of Avon Comprehensive Plan.
Transfer of Development Rights (TDR): Ability to transfer property
entitlements from one property to another when one of the parcels is located in a
designated development area.
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Urban Renewal: Tool used for the purpose of eliminating slum or blighted areas
within a municipality, and positioning properties for development or
redevelopment. Actions under urban renewal can include tax increment
financing, demolition of structures; construction of infrastructure and public
spaces; sale of property; and, relocation of businesses and residents.
IV. INCENTIVES
The incentives offered under these Guidelines are not intended to replace other
project financing from private or public sources. Rather, they are intended to be
supplemental and flexible resources that spur worthy projects by bridging
funding gaps which may be created by the difficult and sometimes costly nature
of such purposeful developments. The primary incentive programs available
include:
Financial Incentives:
■ Urban Renewal (Tax Increment Financing)
■ Infrastructure Cost Participation
■ Operating and Maintenance Costs
■ Revenue Sharing
■ Fee Waivers
■ Tax Exempt Bond Financing
■ Local Grants
■ Low Interest Loans
■ Federal and State Grants
Non - Financial Incentives:
■ Land Transactions
• Pedestrian Enhancements and Linkages
■ Predevelopment Due Diligence
■ Special Districts
■ Parking Districts
■ Loan Pool Facilitation
■ Business Relocation / Retention Assistance
■ Development Approval Facilitation
■ Project Participation
Detailed descriptions of those tools which will likely be most frequently
requested and provided are presented below with the balance defined in the
Appendix section of these Guidelines.
Urban Renewal (TIT)
Purpose of Incentive
Tax Increment Financing (TIF) is a tool authorized under Colorado State
statute by which local governments can publicly finance the rehabilitation
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or demolition of existing structures, construct or install new streets,
utilities, open space and other improvements that serve a public purpose.
Expenditures are made within a defined area called an urban renewal area.
The tax increment is derived from the difference in appraised value
between the year in which the area and TIF was formally established by
Council (base year) and each year is in existence, for a period not to exceed
25 years. The increment is generated by real property taxes resulting from
new construction and increases in market values due to public
improvements and redevelopment efforts.
Project Use
■ The Town will consult with property owners within a designated area
to ensure that TIF is awarded to meritorious projects. Note: If not
otherwise in existence this would be accomplished through creation
of an urban renewal area and plan where the project is located.
■ The Town may provide a rebate to the developer of the property tax
increment or pledge the increment as payment of principal and
interest on bonds issued to fund the improvements. The Town may
also elect to retain tax increment to meet operating or other demands
within the TIF area.
■ The percent of TIF revenue made available to projects will be
negotiated on a case -by -case basis and considered relative to those
factors described in these Guidelines' guiding principles.
Limitations
TIF can only be used on expenses that provide a public benefit. Eligible
project costs include: capital costs, financing costs, real property assembly
costs, professional service costs for public improvements, imputed
administrative costs, relocation costs, organizational costs, interest before
and during construction, and costs associated with operating the urban
renewal area and project facilities.
Infrastructure Cost Participation
Purpose of Incentive
The Town may elect to participate, either through a formal program or on a
case -by -case basis, in the cost of construction and / or maintenance of
infrastructure that will benefit multiple projects and properties.
Project Use
■ The Town will work with the developer and / or property owner to
identify all on -site and off -site capital improvements necessary to
service and / or support the project.
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■ Where dollars have already been earmarked (i.e., in the Town Capital
Improvement Plan) or quantified; and public expenditures are
eminent, the Town may elect to contribute these dollars to the project.
■ Where dollars have not been earmarked, but improvements are
considered to benefit from the project and area, the Town may still
elect to contribute dollars to the project.
■ The Town will consider the quality of materials and their consistency
with prevailing policies, standards and regulations. In instances
where the Town desires to raise standards of design and / or
development, it may elect to participate in the cost of delivering these
improvements.
Limitations
As identified through policies of the Town Council.
Operating & Maintenance Costs
See discussion under Pedestrian and Roadway Enhancements and
Linkages.
Revenue Sharing
Purpose of the Incentive
Revenue sharing is a tool by which certain anticipated future revenues from
a development may be shared, rebated or refunded to assist in paying for
infrastructure costs, business start -up or relocation, or assisting a
development towards stabilization as expeditiously as possible.
Project Use
The Town will consider applications for revenue sharing that meet the
eligibility requirements set forth in these Guidelines and that are compliant
with relevant restrictions stated in the Avon Home Rule Charter. In
addition, the Town requires that the source of the revenue to be shared
match with the use of the shared revenue.
Limitations
As identified through the Avon Home Rule Charter.
Fee Waivers
Purpose of Incentive
The purpose of this incentive is to encourage investment by waiving or
delaying development fees until the developer expects a positive cash flow.
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Project Use
The Town may waive or delay project- related development fees on a case -
by -case basis for meritorious projects.
Limitations
Developers will need to negotiate with the Town a specific threshold (to be
determined) that they can demonstrate in order to be eligible for waivers or
delays.
Land Transactions
Purpose of Incentive
The purpose of this incentive is to assist developers with land acquisition
and assemblage for meritorious projects in targeted investment areas.
Project Use
See Section 18.3 of the Avon Home Rule Charter for limitations on the use
of this tool.
Limitations
As identified through policies of the Town Council.
Pedestrian and Roadway Enhancements and Linkages
Purpose of Incentive
It is the Town's intent (and past practice) to encourage pedestrian
connections, access to multiple modes of transportation and linkages
among activity areas both within the Town's economic core and
surrounding neighborhoods. To this end, the Town may participate in
projects that advance this objective in the form of expending capital for
infrastructure and maintenance of public improvements. In the context of
the catalyst areas, public improvements are considered to encompass
streetscape and roadway improvements that encourage pedestrian and
transit access, as well as public space amenities.
Project Use
The Town may use CIP, bond and / or general funds for redevelopment
within the catalyst areas to leverage grants and private funding sources.
Grant programs are often administered by the Federal Highway
Administration, the Federal Transit Administration, and the Colorado
Department of Transportation. The Town's goal is to use funds to leverage
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private dollars, yielding investment for streetscape improvements in the
near -term.
Limitations
The Town will identify and evaluate projects as grant and /or other funds
become available. Projects will be selected according to the criteria
established by the grant program and any additional criteria that further
the goals of these Guidelines and other adopted plans and policies. These
criteria may include, but are not limited to, the following:
• Consistency of proposed improvements with the purpose of the grant
program
• Equitable distribution of funds among the catalyst areas (over time)
• Ratio of private investment to public investment
Limitations
In order for the Town to expend funds, resources must be in support of a
catalyst project that advances the vision for that area.
Predevelopment Due Diligence
Purpose of Incentive
The purpose of this incentive is to provide property owners and developers
with market, financial, design, engineering and other related information in
an effort to both educate them about opportunities, as well as save them
pre- development dollars.
Project Use
■ The Town will establish an electronic "library' of studies and reports
solicited by, and shared with, the Town in the context of development
and investment projects in targeted areas.
■ As these studies and reports are made available, they will be
submitted to the library for use by the private sector.
■ The Town may also elect to dedicate staff or retain the services of
consultants and other professionals at no cost to the developer in an
effort to save them pre - development dollars, while ground - truthing
project feasibility.
Limitations
As identified through policies of the Town Council.
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Special Districts and Improvement Districts
Purpose of Incentive
Special districts are special - purpose units of local government created to
provide a service or services to a specific group of constituents. Assessed
taxes are exclusively property taxes. Improvement districts allow a
municipality to levy and collect special assessments on property that is
within the Town or the Town's extraterritorial jurisdiction (ETJ) to be used
in the district. The assessment can be used to fund things including
streetscape, infrastructure, security, parks, recreation, parking and other
public improvements.
Project Use
See Section 18.01 Establishment of Special Districts of the Town Municipal
Code.
Limitations
As improvement districts are enacted, primarily to raise money for the
provision of certain services or improvements, eligible projects which
require the revenue of a special district must serve a public purpose.
Development Approval Facilitation (Streamlining)
Purpose of Incentive
The Town's organizational structure is expressly designed to allow for
interdepartmental coordination for development projects. Its mission is to
focus on and provide assistance to priority projects that are eligible as
defined under these Guidelines. Through staff project facilitation, the
Town will attempt to resolve questions that arise through a main point of
contact who will then work with other departments as necessary, in order
to facilitate a streamlined process for projects in pre - development.
Project Use
■ Town staff representatives on the team will host a pre - development
conference to address construction, platting, zoning and permitting
issues.
■ A project manager from the Town will be assigned to serve as the
primary contact for addressing internal problems and issues related
to the project.
■ Key staff will continue to facilitate issues that arise and eventually
serve as advocates for projects between departments and with Town
Council, assisting with formal presentations and soliciting timing
guarantees.
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Limitations
This service applies to projects which meet the catalyst project criteria as
outlined in these Guidelines.
V. CATALYST INVESTMENT AREAS
Town Council has identified geographic areas of Avon within which to target its
incentives. The Town acknowledges that different geographic areas face varying
degrees of challenges in attracting private sector capital for development
consistent with the community's goals and objectives. While projects outside
these areas might prove worthy, the Town has specifically targeted its incentives
to provide greater assistance to catalyst projects in areas of Avon where market
support has either lagged behind community needs and goals, or where
economic conditions are fragile or susceptible to market forces.
These Guidelines define catalyst investment areas as follows:
"A catalyst investment area is an 'urbanized' place that has a concentration of jobs,
housing units, commercial uses, public spaces, public transportation, and / or
pedestrian activity and a sense of place. These areas are frequently located at
significant activity nodes. Predominant land uses are commercial, non - commercial
and public. Within these relatively compact geographic areas, different land uses are
found side by side or within the same structures. The mix of uses are often located in
developments with minimal setbacks, reduced parking requirements and taller
structures, all in an effort to achieve higher densities necessary to support multiple
nodes of transportation and pedestrian activity (where relevant), private investment
and a sense of place.
These areas are catalysts for public and private investment and economic activity,
effectively building off the strengths of the surrounding area and connecting to
surrounding uses. Implementation and management of catalyst areas is generally the
responsibility of a combination of entities including business organizations, special
districts, neighborhood and other interest groups, and individual property owners."
What follows is a description of the vision for each of the Town identified
catalyst investment areas as expressed in the supporting Town Planning
Document. Projects outside these areas should address a significant public
benefit, as well as show evidence of a market opportunity and /or development
project with potential in the near -or long term.
West Town Center Investment Plan
The West Town Center Investment Plan was adopted in August 2007. The stated
vision for West Town Center in the plan is taken from the Town of Avon
Comprehensive Plan. Specifically, "The West Town Center District will serve as
the heart of the community. 'Social, cultural, intellectual, political, and
recreational gatherings occur in this district. In addition, the district acts as the
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common ground between the full -time residents, part -time residents and
destination guests through diverse retail and entertainment opportunities. The
West Town Center District will be an intensely developed mixed -use, pedestrian -
oriented area that serves as the primary focus for residential and lodging
development within the overall Town Center. "'
Town Center West Area Urban Renewal Plan
The Town Center West Area Urban Renewal Plan was adopted in August 2007.
The vision expressed in the plan states that revitalization of the Town Center
West Area is the creation of high quality commercial and mixed -use
developments which integrate a range of non - residential uses with residential
uses (vertically integrated) where appropriate, as well as property
improvements, supported by strategic public investment in infrastructure
(including utilities) and parking within and adjacent to the Area boundaries.
Development within the Town Center West Area is positioned to serve as the
catalyst for change in this commercial core of the Town. The combination of uses
will further promote development and redevelopment of the entire Town Center
District as an urban "neighborhood" with retail, business, lodging, residential,
civic, cultural and public elements while physically connecting existing uses and
improving circulation among multiple forms of transportation. "
Avon East Town Center District Plan
The Avon East Town Center District Plan was adopted in May 2008. The stated
vision of the plan for the Avon East Town Center District is "to make the most of
redevelopment opportunities by considering the needs and desires of the
community, establishing a cohesive mix of uses, including retail, office and
residential; planning for public gathering spaces; and creating strong pedestrian
and street connections." Additionally, "the East Town Center District will be a
jewel of the community, a complement to the West Town Center District, and a
source of pride for the residents and business owners." Specific investments that
will be encouraged include: residential units, pedestrian enhancements,
branding elements, vibrant nodes of activity, parking, entertainment uses,
roadway and public transportation improvements, diversity and economic
sustainability in all of these components.
Town of Avon Comprehensive Plan
A general plan for the Town known as the Town of Avon Comprehensive Plan
was adopted in February 2006. The plan specifically states, "In order for Avon to
realize its vision and its associated community goals and objectives, the key
challenge facing Avon is to enhance its Town Center Districts." Additionally, it
says, "The Town Center Districts (East and West) are intended to be Avor s focal
point for social, business and cultural activities. Specifically, the Town Center
Districts are anticipated to provide mixed -use development of the highest
intensity within the community supported by an exceptional pedestrian- oriented
environment including comfortable spaces, exceptional views, and intimate
gathering places."
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VI. REVIEW CRITERIA
The Town's decision to invest in a project will be based on several important
findings, not the least of which include:
■ number and type of public benefit elements (direct or indirect);
■ potential of the project to succeed;
■ demonstrable financial need; and,
■ evidence that the project accomplishes the goals of the community as
specified in the Town of Avon Comprehensive Plan, Avon West Town
Center District Investment Plan, Avon East Town Center District Master
Plan, and all other Council- approved community plans related to the
growth and development of the Town (see Catalyst Project Investment
Areas).
Project applications will be reviewed relative to the following Review Criteria:
1. The Application is complete;
2. The Applicant's ( "Applicant ") proposal advances the vision, goals and
objectives of a Town Planning Document (i.e., transit - supportive
development, employee housing, etc.);
3. The Applicant's proposal provides a public benefit that would not be
provided without the incentive;
4. The Applicant's proposal promotes one or more purposes of these
Guidelines;
5. The requested incentive is in proportion to the proposed public benefit;
6. The requested incentive and project will not increase Town impacts more
than the projected increased benefits;
7. The requested incentive and project allows the Town and Applicant to
leverage grant funding from other sources (optional); and
8. The proposal includes a practical method of demonstrating the
effectiveness and success of the incentive.
In order to be considered for Town incentives, a project falling within a catalyst
investment area must advance and exceed stated community goals and the
application must positively address the above criteria. A project that has the
potential to advance stated community goals, yet located outside a preference
area, may also be considered for Town incentives, but will be expected to
undergo a greater level of scrutiny to ensure that it is consistent with the
objectives presented herein.
VII. APPLICATION PROCESS AND DECISION
In order to have a project request considered for participation by the Town of
Avon, Applicants must complete the attached forms and submit the completed
forms to the designated Town representative. Once the (above) criteria are
considered to be satisfactorily addressed, Town staff will work with the
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Applicant to further analyze specific details about the project's financial need
and other factors as warranted. The financial need of the project will be
determined based upon the nature and extent of the "gap" between the total
project costs and amount of private investment to cover those costs, assuming a
market - average rate of return on the private investment. Based upon this
information, Town staff will then determine the extent of the Town's potential
participation (including specific incentives) in the project. The level of Town
participation will be dependent, in part, on the fiscal impact of the project to the
Town and expected private investment leverage resulting from its participation.
Another factor will include the extent of public benefit the project provides. The
map presented in the Appendix section of these Guidelines illustrates the Town's
target areas for catalyst private investment. Final documentation for meritorious
projects will be packaged along with Town staff recommendations for final
review and consideration by Town Council. Together, the Town representative
and Applicant will then present the project concept and request to Town Council
for consideration. In select instances, Town Council may decide to refer the
project and application to Planning and Zoning Commission for a
recommendation.
Note: Private financial information provided in conjunction with the project
submittal will be reviewed in confidence by the Town Manager, Town Finance
Director, and one representative from Town Council. All matters related to this
confidential private financial information will be considered in executive session
if deemed necessary and appropriate.
VIII. BENCHMARKING THE MARKET
The ability of the Guidelines to successfully marry market opportunity with
market investment will hinge upon continual feedback to the Town by
representatives of the real estate and business investment markets and incentive
recipients. Therefore, the Town has an expectation of investment partners to
provide information on the performance of projects during start -up and through
stabilization'. The receipt of project information beyond the period during which
the Town participates will be appreciated, but not required. Access by the Town
to this information will assist in staying current on market conditions and
expectations among different geographic and market sectors, as well as provide
the basis for refinements to the Guidelines and the Town's decision - making
parameters for participation in future projects.
' The total value of the incentives will only be available at a level not to exceed the
incremental dollars generated by the planned investment as determined by the Town
through regular review of the project's performance (open books). Select information will
be kept confidential from the general public.
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Appendix
Tax Exempt Bond Financing
Purpose of Incentive
The purpose of this incentive is to provide long -term financing for select
economic development projects. Bonds are issued by the Town and exempt
from state and local taxes.
Project Use
Bond revenue can be used for specific purposes, as determined by the bond
documentation, including right -of -way improvements (public and private),
parking, streetscape, infrastructure, as well as land acquisition. The Town
may provide support to projects that meet the Towns bond documentation
criteria for funding. The funds will be available in the form of 1) loans, 2)
loan guarantees, 3) equity investments, and / or subordinated debt for
construction, or, 4) permanent financing.
Bond revenue may also be available to projects located in an urban renewal
area. Criteria for funding within an urban renewal area are defined in the
urban renewal plan for that area.
Limitations
Limitations will be largely dictated by the rules and regulations associated
with the bond issuance and the terms and conditions that the Town may
ask developers to pledge when issuing the bonds.
Private Activitv Bonds
Private activity bonds are designed to provide taxable and tax - exempt
bond financing primarily for local improvement projects. Private Activity
Bonds (PAB) are bonds that can be issued for specific purposes, as
determined by federal tax law. PABs are not a direct source of funding, but
rather a tax- financing mechanism.
Local Grants
Purpose of Incentive
The purpose of local grants is to reimburse private developers for the range
of expenses which may contribute to a financing gap yielding projects
financially infeasible. To this end, the Town will also be sensitive to the
taxable implications these grants may have for the developer and where
possible, use transfer mechanisms (i.e., soft loans, accrual notes, etc.) which
result in a favorable financial impact.
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Limitations
This incentive is often used as a gap - financing tool of last resort. The use of
this incentive is for projects facing extraordinary impediments to
development and offering significant positive impact to the community
and the surrounding area where the project is located. Limitations on how
this incentive is used are predicated on the source of the funds and terms
and conditions of the award to the Town and the project.
Low Interest Loans
Purpose of Incentive
The purpose of this incentive is to provide funds to developers at a lower
rate of interest compared to conventional loans. This incentive effectively
reduces the financial gap of a project, thereby enhancing its financial
feasibility.
Project Use
The Town may facilitate the provision of this type of support to
development projects that meet the Town's criteria for funding. Loans can
be used to support commercial, residential or mixed -use development
projects, for both rehabilitation and new construction related expenses.
Types of loans available include predevelopment, interim financing and
bridge.
The program can be expanded to include a set -aside for facade
improvements in targeted areas.
Limitations
Limitations will be largely dictated by the rules and regulations associated
with the funding source and the terms and conditions of the specific award.
Federal and State Grants
Purpose of Incentive
The fundamental premise of the Town's partnership Guidelines is to
catalyze investment and reinvestment in targeted areas. Whereas
experience has proven that "catalyst projects" serve to prove to private
sector investment markets that demand for community- beneficial
developments exists; they set a positive precedent for future development.
Given the importance of supporting catalyst projects in priority areas, the
Town may, at its sole discretion, elect to compete for federal or state grants
to support deserving real estate development projects.
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Project Use
If awarded, the Town may provide this type of support to projects in an
effort to close a demonstrable funding "gap." Use of the funds will be
contingent on the project's ability to advance key community goals
including sustainable development principals, as well as the guiding
principals of these Guidelines. Grant funding is generally used for
infrastructure improvements, environmental remediation, pedestrian and
streetscape enhancements in the public right -of -way, and other costs as
appropriate to the funding source. However, they may also be used for a
range of economic development initiatives including business retention,
relocation and expansion initiatives.
Limitations
Limitations on how this incentive may be used are often predicated on the
source of the funds and terms and conditions of the award to the Town and
the project.
Town Council will determine which projects they will submit for
competition. Submittal is not a guarantee of Town funding and Town
participation will be contingent upon award of grants.
Parking Districts
Purpose of Incentive
A parking district is a designated area wherein parking design,
development and management issues, beyond those provided for by
standard municipal levels of service, are controlled by a select entity. The
purpose of this incentive is to allow property and business owners to share
in the cost of infrastructure and services in an effort to stabilize and
distinguish a business and /or neighborhood district, and thereby
potentially improve its market position.
Project Use
■ In order for a parking district to be established, 51% of the property
owners must submit a petition request.
■ Upon creation of the district, property owners will be assessed an
additional fee to fund improvement projects within its area.
■ The district can then pledge the assessment revenue as payment of
principal and interest on bonds issued to fund public improvements
which benefit projects within it.
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Limitations
As improvement districts are enacted primarily to raise money for the
provision of certain services or improvements, eligible projects which
require the revenue of a special district must serve a public purpose.
Loan Pools
Purpose of Incentive
The purpose of this incentive is to spread risk across multiple funding
entities. Pools can be assembled with private, public and semi - public
dollars. An obvious resource can be Community Reinvestment Act (CRA)
dollars, managed by private lending entities that are required to be
invested directly in the community. Commitments can take the form of
loans, letters of commitment and stock purchases. Loan pools may also
include program partnerships.
Project Use
■ The Town will facilitate discussions with various local and regional
lending entities (public, public, and semi - private) to identify set - asides
for a loan pool to be used by credible borrowers for the development of
projects in targeted areas.
■ The Town may consider subordinating the loan pool fund, if necessary.
Limitations
Limitations will be largely dictated by the rules and regulations associated
with the funding sources and terms and conditions of the specific award.
Project Participation
Purpose of Incentive
The purpose of this incentive is to offer public sector support to projects in
an indirect way, as an alternative to direct financial participation.
Project Use
■ The Town will consider taking space (relocating a department) in a
newly developed or redeveloped commercial project.
■ If their CIP plan includes the expansion of public facilities or spaces, the
Town may consider doing this in cooperation with the developer. (See
Pedestrian Enhancements and Linkages.)
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■ The Town may provide the services of one of their departments or
affiliates (Chamber, Tourism, Economic Development) to either the
developer or tenants in the development to advance the success of the
project or their individual business.
Limitations
As identified through policies of the Town Council.
Business Relocation/ Retention Assistance
Purpose of Incentive
The purpose of this incentive is to assist existing businesses with their
expansion, retention and relocation needs. Costs associated with relocation
are an acceptable expense within an urban renewal area. However, projects
not located within an urban renewal area may be required to buy -out leases
(at a minimum) and possibly cover relocation expenses in an effort to
advance (re)development projects in infill areas. In addition to providing
dollars for actual expenses, the Town may partner with various economic
development entities to assist with marketing and disruptions in
operations.
Project Use
■ The Town may identify and /or retain someone to serve as a point -
person for relocation inquiries.
■ Within existing urban renewal areas, the Town will make sure that a
relocation plan with specific provisions is in place.
■ The Town may preemptively solicit the participation of a range of
economic development partners to assist the Town in their
redevelopment goals and objectives.
Limitations
As identified through policies of the Town Council and any other
participating entities.
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