Loveland council may dissolve Downtown LURA
LOVELAND — The Loveland City Council will consider on Tuesday whether to eliminate the Downtown Loveland Urban Renewal Authority plan with the Downtown Development Authority taking over responsibility for the LURA’s obligations.
The issue has to do with overlapping governance and collecting of tax increment financing dollars. In short, having two entities involved in TIF development has resulted in confusion and the inability for either entity to do what it would like to improve business conditions in the downtown area, according to information presented to the City Council.
The Downtown LURA was created in 2002 and given TIF taxing authority for 25 years. The DDA was created in 2015 and given taxing authority in 2017 with TIF dollars to be collected over 30 years to finance projects in the DDA district.
Because the districts overlap, it has been difficult for either entity to secure financing arrangements that permit loans that can be used for projects that generate increased tax money that is then used to repay loans.
The plan, if approved, would sunset the Downtown LURA with the DDA taking over responsibility for any LURA obligations, such as agreements that helped finance the Foundry project, the Dutch Brothers project and the still-underway Artspace, Draper and Vitamin Cottage projects.
Money held in reserve by the LURA — about $1.8 million — would pay off obligations as they come due and any obligations left unpaid would be covered by the DDA, the proposal suggested.
The DDA board has recommended approval. The LURA board was supposed to consider the proposal April 10 but ran out of time at its meeting.