The Crested Butte News Serving the Gunnison Valley since 1999
Asks town council to consider extension when the time comes
The board of the Mt. Crested Butte Downtown Development Authority got a jump on the future in October when it passed a resolution to request the town council to extend the life-span of the DDA an additional 20 years when the issue is formally brought up before the council in 2016.
If the extension is approved, it will mean the DDA will continue to collect taxes from new construction within its boundaries, for projects determined to be beneficial to the Mt. Crested Butte downtown area—projects like the parking garage and the Biery-Witt Performing Arts Center (PAC) through 2045.
“In 2009 the DDA committed $6 million to the Performing Arts Center,” said Mt. Crested Butte town manager Joe Fitzpatrick. “The plan at that time was for the DDA to borrow the money through a bond, but then the revenues dropped in half. The DDA then turned around and said they would commit cash. Between now and 2026, the DDA has promised $7.8 million to the performing arts center.”
Despite this promise, the DDA cannot just hand over a stack of money, said Fitzpatrick. Rather, the PAC board will need to find the funds necessary for the project somewhere else, likely though fundraising, grants and bonds. Then, the DDA will help them pay off what’s left.
“The DDA board has two priorities: one is the performing arts center, which is now an event center, and the other is parking,” said Fitzpatrick. “The PAC board is going to have a serious conversation before the beginning of ski season to determine where the project is at this point and if the funds are going to be available to move forward. If the PAC doesn’t happen, then the DDA will focus on finishing the parking garage.”
The DDA was formed in 1996 to stimulate development in a “blighted area”—also known as downtown. To accomplish this, the DDA receives funds through tax increment financing, which is determined using assessed valuations as a baseline.
In addition, the DDA is allotted the tax revenue from all new construction within its boundary and also a percentage of the annual increases of the property valuations. The DDA then takes this money and uses it for specific projects aimed at bolstering local business and the economy within the boundary. An example of a DDA-supported project is the bus loop/transportation area at Mountaineer Square.
If the DDA were allowed to expire, the money it is currently allocated would flow to other taxing entities such as the fire district.
