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Home My WebLink About2022 Ordinance No. 035 BY AUTHORITY ORDINANCE NO. 35 COUNCIL BILL NO. 38 SERIES OF 2022 INTRODUCED BY COUNCIL MEMBER WOODWARD AN ORDINANCE AUTHORIZING A COOPERATIVE AGREEMENT BETWEEN THE ENGLEWOOD DOWNTOWN DEVELOPMENT AUTHORITY, ENGLEWOOD SCHOOLS, AND THE CITY OF ENGLEWOOD REGARDING TAX INCREMENT REVENUES WHEREAS, on the 20th day of September, 2021, the City of Englewood approved the Englewood Downtown Development Authority (EDDA) Plan of Development in Ordinance No. 41, Series of 2021; and WHEREAS, the Plan of Development provides for the EDDA’s collection of tax increment revenues within certain areas of the City of Englewood, to be utilized for purposes identified in the Plan of Development, including tax increment financing; and WHEREAS, the Colorado 2020-2021 School Finance Act, HB20-1418, Section 33, requires Englewood Schools to make a mill levy correction to increase its mill levy by 1.000 mill per year until its total Local Revenues mill levy is 27 mills, or its then current equivalent, caused by changes to the residential assessment rate as determined by the State of Colorado’s Department of Local Affairs Division of Property Taxation; and WHEREAS, in order to comply with this law, Englewood Schools expects to certify and implement a 1 mill scheduled annual increase for Local Revenues starting for the 2021 tax year, with collection starting in 2022; and WHEREAS, in order for Englewood Schools to receive the full scheduled mill increases and state mandated local revenues to properly fund Englewood Schools as described in the 2020-2021 School Finance Act, City, EDDA, and Englewood Schools must enter into an agreement to clearly establish that revenue generated by the school’s scheduled 1-mill increases until its mill levy is 27 mills within the Wellness District SubArea’s property tax increment area shall be paid to Englewood Schools by the City, following receipt from Arapahoe County, rather than treated as tax increment otherwise paid through to the EDDA; and DocuSign Envelope ID: 92780AA0-F3E0-4AB5-B5B8-40CD3D067140 WHEREAS, the Englewood Schools Board approved and authorized the execution of a Cooperative Agreement between City, EDDA, and Englewood Schools Regarding Pass-Through Revenue for School Finance Act Compliance (“Cooperative Agreement”) on June 14, 2022, and the EDDA Board approved and authorized the execution of the Cooperative Agreement on June 22, 2022, with a second reading of the ordinance is anticipated to be scheduled for August 1, 2022. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, AS FOLLOWS: Section 1. The City Council of the City of Englewood, Colorado hereby authorizes the execution of the Cooperative Agreement Regarding Pass-Through Revenue for School Finance Act Compliance, a copy of which is attached hereto as Exhibit 1. Section 2. General Provisions Applicable to this Ordinance The following general provisions and findings are applicable to the interpretation and application of this Ordinance: A. Severability. If any clause, sentence, paragraph, or part of this Ordinance or the application thereof to any person or circumstances shall for any reason be adjudged by a court of competent jurisdiction invalid, such judgment shall not affect, impair or invalidate the remainder of this Ordinance or its application to other persons or circumstances. B. Inconsistent Ordinances. All other Ordinances or portions thereof inconsistent or conflicting with this Ordinance or any portion hereof are hereby repealed to the extent of such inconsistency or conflict. C. Effect of repeal or modification. The repeal or modification of any provision of the Code of the City of Englewood by this Ordinance shall not release, extinguish, alter, modify, or change in whole or in part any penalty, forfeiture, or liability, either civil or criminal, which shall have been incurred under such provision, and each provision shall be treated and held as still remaining in force for the purposes of sustaining any and all proper actions, suits, proceedings, and prosecutions for the enforcement of the penalty, forfeiture, or liability, as well as for the purpose of sustaining any judgment, decree, or order which can or may be rendered, entered, or made in such actions, suits, proceedings, or prosecutions. D. Safety Clauses. The City Council hereby finds, determines, and declares that this Ordinance is promulgated under the general police power of the City of Englewood, that it is promulgated for the health, safety, and welfare of the public, and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The City Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be obtained. This Safety Clause DocuSign Envelope ID: 92780AA0-F3E0-4AB5-B5B8-40CD3D067140 is not intended to affect a Citizen right to challenge this Ordinance through referendum pursuant to City of Englewood Charter 47. E. Publication. Publication of this Ordinance may be in the City’s official newspaper, the City’s official website, or both. Publication shall be effective upon the first publication by either authorized method. F. Actions Authorized to Effectuate this Ordinance. The Mayor is hereby authorized and directed to execute all documents necessary to effectuate the approval authorized by this Ordinance, and the City Clerk is hereby authorized and directed to attest to such execution by the Mayor where necessary. In the absence of the Mayor, the Mayor Pro Tem is hereby authorized to execute the above-referenced documents. The execution of any documents by said officials shall be conclusive evidence of the approval by the City of such documents in accordance with the terms thereof and this Ordinance. City staff is further authorized to take additional actions as may be necessary to implement the provisions of this Ordinance. Introduced, read in full, and passed on first reading on the 18th day of July, 2022. Published by Title as a Bill for an Ordinance in the City’s official newspaper on the 21st day of July, 2022 Published as a Bill for an Ordinance on the City’s official website beginning on the 20th day of July, 2022 for thirty (30) days. Read by Title and passed on final reading on the 1st day of August, 2022. Published by Title in the City’s official newspaper as Ordinance No. 35, Series of 2022, on the 4th day of August, 2022. Published by title on the City’s official website beginning on the 3rd day of August, 2022 for thirty (30) days. This Ordinance shall take effect thirty (30) days after publication following final passage. Othoniel Sierra, Mayor DocuSign Envelope ID: 92780AA0-F3E0-4AB5-B5B8-40CD3D067140 ATTEST: Stephanie Carlile, City Clerk I, Stephanie Carlile, City Clerk of the City of Englewood, Colorado, hereby certify that the above and foregoing is a true copy of the Ordinance passed on final reading and published by Title as Ordinance No. 35, Series of 2022. Stephanie Carlile DocuSign Envelope ID: 92780AA0-F3E0-4AB5-B5B8-40CD3D067140 COOPERATIVE AGREEMENT REGARDING PASS-THROUGH REVENUE FOR SCHOOL FINANCE ACT COMPLIANCE This Cooperative Agreement Regarding Pass-Through Revenue (the “Agreement"),made and executed to ensure compliance \vith the Colorado 2020-2021 School Finance Act’s mill levy correction requirement, is effective the @ day of une ,2022,by and between the City of Englcwood,Colorado (“City”),the Englewood Downtown Development Authority (“EDDA”),and the Board of Education of Arapahoe County School District Number One (“Englewood Schools”)as follows (each a "Pal1y"and, collectively,the "Parties"): WHEREAS,City and the EDD/\are committed to supporting a strong downtown community for all businesses and residents; WHEREAS,healthy schools are a vital element of'a strong community; WHEREAS.City and EDDA believe redevelopment and revitalizationof downtown Englewood ultimately will generate increased development and revenue for the Parties.and increased public counts for Englewood Schools; WHEREAS.under C,R,S.§§3l-25-801,et seq.(“DDA Statute").speci?cally C.R.S.§31-25-807.tax increment may be generated and captured by 3 Downtown Development Authority (“l'J[)A”)in one or more tax increment areas for 3 period not to exceed 30 years,with an option to extend for an additional 20 years; WHEREAS,Tax Increment Financing (“T11-"‘)generally allows a DDA to utilize increased property taxes and/or sales taxes from projects/improvements within a TIF area to invest directly in initiatix es and projects to bene?t the Parties and community as a whole; WHEREAS,on September 20,2021,the Englewood City Council tlnanimotlsly approved the Englewood Downtown Plan of Development for redevelopment and revitalization ofdowntown Englewood,and provided for sales tax increment areas for the Wellness District Sub-Area and the South Broadway Sub- Area; WHEREAS,approval ofthe Downtown Plan included approval ofa property tax increment area for the Wellness District Sub-Area (the “Wellness District",shown on Exhibit A),commencing the 30-year life of the Wellness District TIF: WHEREAS.under the DDA Statute.as also adopted in the related Englewood ordinances.Englewood Schools will continue to collect current ad Valorem mill levy tax revenue for the base year as adjusted and de?ned by Colorado law within the Wellness District: WHEREAS,the Colorado 2020-2021 School Finance Act.HB20-1418,Section 33,requires Englewood Schools to make a mill levy correction to increase its mill levy by 1.000 mill per year until its total Local Revenues mill levy is 27 mills,or its then current equivalent,caused by changes to the residential assessment rate as determinedby the State of Co1orado’s Department of Local Affairs Division of Property Taxation; WHEREAS,in order to comply with this law,Englewood Schools expects to certify and implement a 1 mill scheduled annual increase for Local Revenues starting for the 2021 tax year,with collection starting in 2022;and WHEREAS,in order for Englewood Schools to receive the full scheduled mill increases and state mandated local revenues to properly fund Englewood Schools as described in the 2020-2021 School DocuSign Envelope ID: 92780AA0-F3E0-4AB5-B5B8-40CD3D067140 Finance Act,City,EDDA,and Englewood Schools must enter into an agreement to clearly establish that revenue generated by the school's scheduled l—millincreases until its mill levy is 27 mills within the Wellness District Sub-Area's property tax increment area shall be paid to Englewood Schools rather than treated as TIF. NOW THEREFORE,in consideration ofthe covenants,promises and agreements of each of the Parties,to be kept and performed by each ofthcm,it is agreed by and between the Parties as follows: Section I:SCHEDULED MILL LEVY INCREASES UNDER SCHOOL FINANCE ACT.The Parties agree that Englcwood Schools’annual scheduled 1 mill levy Local Revenues increase every year for ?ve years starting in 2022 (and a fraction ofl mill in year six,until its total Local Revenues mill levy reaches 27 mills,or its then current equivalent),implemented to comply with the Colorado 2020»202l School Finance Act,shall not be subject to the Wellness District TIF and paid to EDDA (hereafter “Pass~ Through Revenue”).Instead,these scheduled mill levy increases shall be applied to the incremental value ofthe Wellness District and paid by the City to Englewood Schools to bene?t the community,and not forwarded to the EDDA with the balance of the Wellness District TIF,The Pass-Through Revenue shall be calculated according to the illustration in Exhibit B. Except as set fonh above for the scheduled Local Revenues mill levy increase for six years starting in 2022,Wellness District TIF revenue shall be received by the City from Arapahoe County and paid to EDDA as established under Colorado law,City of Englewood ordinances,the EDDA Downtown Plan of Development,and other applicable authority related to EDDA and the TIF. Section 2:NOTIFICATION OF LOCAL REVENUES.Within 60 days after execution of this Agreement,and by January 31 of each year thereafter starting in 2023,City will notify Englewood Schools and EDDA of:(1)the previous property tax year’s incremental assessed value as certi?ed by the Arapahoe County Assessor in the Wellness District;and (2)the calculation ofTIF revenues and the expected Pass-Through Revenue to be generated and paid from the City to Englewood Schools that year as demonstrated in Exhibit C.Englewood Schools shall notify City of any objection to City’s calculations ofthe Pass-Through Revenue within 30 days after receipt of City’s noti?cation.If an objection is received,the Parties will negotiate an agreed Pass—ThroughRevenue amount pursuant to Section 1 and following the calculation illustration in Exhibit B. Section 3:PAYMENT OF REVENUES.As Pass-Through Revenue is paid to the City,said revenue shall be paid to Englewood Schools no later than 60 days after receipt frotn Arapahoe County. Section 4:ACTIVATION OF ADDITIONAL TAX INCREMENT AREAS.Should the City activate property tax increment ?nancing in the South Broadway or City Center Sub—Areasas envisioned by the EDDA Downtown Plan of Development during the time period of scheduled tnill levy increases as described in Section 1,those areas shall automatically be subject to this Agreement,and a calculation described in Section 1,an Exhibit A de?ning the property within the Sub—Area,and an Exhibit B showing the applicable calculation shall be made for any subsequently activated Sub-Area and appended to this Agreement. Section 5:ADDITIONAL PROVISIONS. A.Delays.Any delays in or failure of performance by any Party of its obligations under this Agreement shall be excused ifsuch delays or failure are a result ofacts ofGod,acts ofpublie enemy,acts ofthe Federal,state or Arapahoe County government,acts of any other Party,acts of third parties,litigation concerning the validity of this Agreement or relating to transactions contemplated hereby,?re,floods, strikes,labor disputes,accidents,regulations or order of civil or military authorities,shortages of labor or DocuSign Envelope ID: 92780AA0-F3E0-4AB5-B5B8-40CD3D067140 materials,public health emergencies,or other causes,similar or dissimilar,which are beyond the control of such Party. B.Governing Law.This Agreement shall be governed by,and construed in accordance with,the laws of the State of Colorado and shall be subject to the limitations,if any,that are applicable under the Charter or ordinances ofthe City. C,Notices.All notices and other communications hereunder shall be suf?ciently given and shall be deemed given when delivered or mailed by first class mail,postage prepaid,addressed as follows: Ifto City:Ifto EDDA: City of Englewood Attn.City Manager 1001 Englewood Pkwy Englewood,CO 80110 Englewood Downtown Development Authority Attn.Executive Director 3330 S.Broadway #74 With a cc to City Attorney at the same address Englewood'CO 801 ]3'8777 With a cc to: Legal Counsel at l-loffmann,Parker,Wilson &Carberry, PC. 511 16th Street,Suite 610 Denver,Colorado 80202 Ifto Englewood Schools: Arapahoe County School District #1,Englewood Schools Attn:Executive Director,Budget and Finance 4101 S Bannock Street Englewood,CO 80110 With a cc to legal counsel at: Lyons Gaddis,PC PO Box 978 Longmont,CO 80502 The Parties may,by notice given hereunder,designate any further or different addresses to which subsequent notices or other communications shall he sent. D.Entire Agreement.This instrument embodies the entire agreement of the Parties with respect to the subject matter hereof.There are no promises,terms,conditions,or obligations other than those contained herein;and this Agreement shall supersede all previous communications,representations,or agreements, DocuSign Envelope ID: 92780AA0-F3E0-4AB5-B5B8-40CD3D067140 either verbal or written,between the Parties.No modi?cation to this Agreement shall be valid unless agreed to in writing by the Parties. E.Binding Effect.This Agreement shall inure to the bene?t ofand be binding upon the Parties and their successors in interest. F.No Third—PartyEnforcement.It is expressly understood and agreed that the enforcement of the terms and conditions ofthis Agreement,and all rights ofaction relating to such enforcement,shall be strictly reserved to the undersigned Parties and nothing in this Agreement shall give or allow any claim or right of action whatsoever by any other person not included in this Agreement.It is the express intention of the undersigned Parties that any entity other than the undersigned Parties receiving services or bene?ts under this Agreement shall be an incidental bene?ciary only. G.No Waiver of Immunities.No portion of this Agreement shall be deemed to constitute a waiver of any immunities the Parties or their officers or employees may possess,nor shall any portion ofthis Agreement be deemed to have created a duty of care which did not previously exist with respect to any person not a party to this Agreement. H.Subject to Annual Appropriation.Consistent with Article X,§20 of the Colorado Constitution,any ?nancial obligation of the Parties not performed during the current fiscal year is subject to annual appropriation,shall extend only to monies currently appropriated,and shall not constitute a mandatory charge,requirement,debt or liability beyond the current ?scal year. I.Severability.Ifany provision ofthis Agreement is found to be invalid,illegal or unenforceable,the validity and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.Further,in the event of any such holding ofinvalidity,illegality or unenforceability (as to any or all Parties),the Parties agree to take such aetion(s)as may be necessary to achieve to the greatest degree possible the intent of the affected provision of this Agreement. J.No Assignment.No Party may assign any of its rights or obligations under this Agreement. K.Amendment.This Agreement may be amended only by an instrument in writing signed by the Parties. L.Incorporation ofRecitals and Exhibits.The provisions ofthe Recitals and any exhibits attached to this Agreement are incorporated in and made a part of this Agreement. M.Execution in Counterparts.This Agreement may be executed in several counterparts,each of which shall be deemed an original and all ofwhich shall constitute but one and the same instrument. N.No Presumption.The Parties to this Agreement and their attorneys have had a full opportunity to review and participate in the drafting of the final form ofthis Agreement.Accordingly,this Agreement shall be construed without regard to any presumption or other rule of construction against the Party causing the Agreement to be drafted. 0.Minor Changes.This Agreement has been approved in substantially the form submitted to the governing bodies of the Parties.The officers executing this Agreement are authorized to make and may have made,minor changes to this Agreement as they have considered necessary.So long as such changes were consistent with the intent and understanding of the Parties at the time of approval by the governing bodies,the execution of the Agreement shall constitute the approval of such changes by the respective Parties. DocuSign Envelope ID: 92780AA0-F3E0-4AB5-B5B8-40CD3D067140 P4 Rights and Remedies.The rights and remedies of the Parties under this Agreement are in addition to any other righis and remedies provided by law. IN WITNESS WHEREOF,the Parties have caused their duly authorized officials to execute this Agreement effective as of the day and year first above Written. City 0fEnglewood,Colorado Englewood Downtown Development Authority By:By: Mayor Othoniel Sierra Chairman Erika Zierke ATTEST:ATTEST: City Clerk Sicphanic Carlilc Board Secretary Board of Education of Arapahoe County School District Number One By: Board President,Duane Tucker ATTEST: Board Clerk DocuSign Envelope ID: 92780AA0-F3E0-4AB5-B5B8-40CD3D067140 EXHIBIT A Wellness District Property Tax Increment Sub—Area Engiowood Downtown owolopmenuumoriry Mldicll Property Tlx Incremnnt Financing District -Novambnl,2021 DocuSign Envelope ID: 92780AA0-F3E0-4AB5-B5B8-40CD3D067140 EXHIBIT B Illustration of Pass-Through Revenue Calculation Englewood DDA Property Tax Increment Receipts Calculation of Pass-Through Revenue Tax Vear 2021 Payment Vear/Year of Collection 2022 TIF District Name Englewood DDA Wellness District Sub-Area Gross Tax Increment Reported by County’ 2021 Certified Mill Levy {County Tag 1910) Resulting Property Tax Increment per Mill 90205 Less County Collection Fee 1.50% County Collection Fee Deduction (954.31) Net Property Tax Increment from County 62,666.38 Hazo-1418 Section 33 Adjustment?‘ Pass—ThroughRevenue 90205 Net Property Tax Increment to EDDA Special Fund 61,764.33 NOTES: ‘From Arapahoe County Treasurer Distribution Report by TaxAuth only dated March 1,2022 2 From Arapaho:County Assessor's ‘Z021Taxing District Levy Percentage’report dated Dec 28,2021 3 County email dated 2022-03-28 confirmeden tire CertifiedMill Levy included in Property Tax Increment ‘Per Cooperative Agreement Regarding Pass-Through Revenue for School Finance Act Compliance DocuSign Envelope ID: 92780AA0-F3E0-4AB5-B5B8-40CD3D067140 EXHIBIT C Illustration of Noti?cation of Local Revenues Notice under Section 2 to include one year only) cob?eradve?lveemenl?ezav?inl Pass mam Revenue omSdnai Finance m Canniiame weam;§uI>ire Pmve?vnx 1nuemell Area —l||usIn1we Ealula?nn mm:zen nu ms nu ma;ms m7 102:ms man Fido!Ewileclmn ‘(air zazz zuzz zuza zms mas um um:ma zrm max 5 Hwumu..—..wa-seAV sssssom sa sssow ss vsoouo ss7sowo wseowo msoowo 73,7su.wo msuwo 7:xsomu 781541006 :1 Hv?nlhztwmhnazmentaihv 5075 232 x)150cm u mam msoun 151501110 msomu macaw 11.75u.uuu 13.zs<mu\7 zszsarm :Evqiewoudschaoi Dan“S1-'Re:o¥ar‘Mn|!1e\4 «:54 45 as:as so as :54 as ssa asasa as Isa as use wasa nus: a EnyewoodSommDvs1n:nx—’AaoRMandateoLaw mm mm mm mm smo sms sass sms ms 5105 memmusmuu:Dninzt N1hum Base Av 317:595 3 2373315 3451 255 3 52::cos 3 133,707 3.504 no 3379 47:3 379.475 -.mam ms 396 a x «cw I 1 we levenuetoscmoi Dixlvktl?inmlocvsnenl-IAV was um u.7so ss,ouo mso same:may may nus:111,691 ma/won I Hypothevtai Avsahwz are my mumam purpayasurw The agveement WmVINonnrapelme CoumyAsessars annual dattrmmatmn cf Base .w and zmmma:Avfortamualmg vassnmmgn Revenues m Regualavichnul ummmxnmacaw xsfunllustratrve puma};nnwmre?ux haw/the woperatnve Agvzement W Hmm mernauwl\/Iandate?Law on"! DocuSign Envelope ID: 92780AA0-F3E0-4AB5-B5B8-40CD3D067140