The Crested Butte News Serving the Gunnison Valley since 1999
20-year extension of property and sales tax allocation
[ By Kendra Walker ]
During their April 19 meeting, the Mt. Crested Butte town council approved the first reading of an ordinance that will extend the Downtown Development Authority (DDA). They will review the second reading and vote on the extension at their May 17 meeting.
The DDA was formed in 1996 to provide guidance and significant funds for future development within the area designated as the downtown area of Mt. Crested Butte. It receives an allocation of the property and sales tax increment above the base that was in existence when the DDA was formed within its boundaries, and uses those funds to assist in planning and financing projects. In other words, the DDA collects tax over the 1996 base limit that would have gone to other taxing entities such as the town, school district and fire district. It has collected $15 million since its inception in 1996.
The DDA is set to expire in 2026 and the board has requested the town council extend the allocation of property and sales tax increment to the DDA for one term of 20 years. The DDA currently receives 100% of the property and sales tax increment that was in existence when it formed, but if extended will receive 50% of the property tax base increment and 100% of sales tax increment moving forward.
If the DDA is not extended, the property and sales taxes will instead be allocated to the following: 35% to the school district, 18% to the county; 14% to the fire department; 13% to Mt. CB; 10% to Water and San; and 10% to other entities. If extended, those entities will receive the other 50% of property tax increment.
Currently, the DDA has about $2 million, and the funds must all be spent or committed by its termination. Town finance director Karl Trujillo estimates that the DDA will collect another $6 million between now and 2026.
The DDA consists of seven members appointed by the town council including council members, local business owners and/or residents. In 2000, the DDA published the Downtown Development Authority Architectural and Site Design Standards which defines development standards for the zoning area designated under the jurisdiction of the DDA.
DDA member Gary Keiser shared some of the DDA’s recent community investments with the town council. To be DDA-funded, the project must be in the DDA’s geographic area and be used for capital improvements. The DDA has committed $75,000 to the Middle Mile project to bring fiber optics from Gunnison to Mt. Crested Butte, and $95,000 is committed for the Carrier Neutral Location (CNL) building that will be the terminus of the Middle Mile project. The DDA contributed approximately $1 million to the Rasta Lot improvement project that included paving and bathrooms, as well as $30,000 for the consultants for the town’s new wayfinding signage program.
Keiser noted that the DDA can be a funding source for implementing the town’s Master Plan and assist the town with community housing opportunities and base area infrastructure.
“From what council has said they want to accomplish at the base area and how we want to revitalize that, it seems to make sense to go with the option that would provide a larger pot of money,” said council member Lauren Koelliker.
Council member Michael Bacani agreed. “I noticed the DDA is also a little more nimble with getting projects done and getting the funding out. It seems that everything that’s been put in motion or built recently has seemed to have a positive effect upon the community, not necessarily just in the DDA but throughout the community as a whole. I feel strongly that we should extend it.”
The town council will review and vote on the ordinance to extend the DDA at the May 17 meeting.
