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Central City creates an Urban Renewal Authority

Mindy Leary
Posted 7/22/23

Mayor Jeremy Fey called the Central City Council special meeting to order at 6:59 p.m. on Tuesday, July 11, 2023. In attendance were Mayor Jeremy Fey, Mayor Pro-tem Kara Tinucci, Alderman Jeff Aiken,

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Central City creates an Urban Renewal Authority

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Mayor Jeremy Fey called the Central City Council special meeting to order at 6:59 p.m. on Tuesday, July 11, 2023. In attendance were Mayor Jeremy Fey, Mayor Pro-tem Kara Tinucci, Alderman Jeff Aiken, Alderman Marcia Enloe, and Alderman Todd Williams. Staff present included City Manager Daniel R. Miera, City Attorney Marcus McCaskin, and City Clerk Reba Bechtel.

McCaskin suggested some amendments and additions to the agenda. All were in favor of the agenda as amended. There were no conflicts of interest or public comment on the agenda items.

The first action item of business was Resolution No. 23-27, establishing the City of Central Urban Renewal Authority (CCURA). Central City is unique in that it is an historic mining town that has legalized gambling, creating a robust tourism industry, but one that needs to cope with environmental contamination and challenging developmental conditions.

A petition for the public hearing was submitted with the signatures of twenty-five registered electors of the City and notice was given of the hearing.

At the May 8 City Council special meeting, the City’s special counsel (Carolynne White of Brownstein Hyatt Farber Schreck, LLP) presented the Council with an overview of the process and findings required for the creation of an urban renewal authority. Following White’s presentation, Council directed White and City staff to move forward with the necessary steps to place before the Council the question of the formation of the Authority.

At the July 11 special meeting, White and Andrew Arnold with Pioneer Development Company (PDC) presented the City Wide Conditions Survey which analyzed the conditions of the City that would warrant the creation of a CCURA.

These conditions are known as “blighting factors” which may be hindering sound development and investment from occurring within areas of the community. The report is based on city-wide conditions and, in the event CCURA is established, the Authority’s board could use the findings to identify specific areas for urban renewal treatment.

The report was prepared based upon the application of Colorado’s Urban Renewal Law under C.R.S. 31-25- 101 through 116. The report found that Central City contained all eleven factors of blight, far exceeding the minimum requirements for the formation of an Urban Renewal Authority (URA).

These conditions can be natural, like steep topography, or exist in the public domain, such as dangerous street networks or pedestrian infrastructure. Lack of infrastructure is a blighting factor as well as deteriorating structures.

The survey examined all 991 parcels in the area but does not, at this stage, focus on any one property or area.

Fey opened the public hearing. There were many concerned community members present. Six people commented in person and one online.

Residents asked who gets to decide what is blighted and what assurances do residents have in the process. Many voiced concern over what determines areas of blight, eminent domain, and historic preservation.

Council and White responded to the concerns and questions. Fey responded that he is against any government taking anyone’s property and that is not the objective. He also asked Arnold how many URAs there are in Colorado and how many Arnold has or is working with. Arnold responded that there are 65 in Colorado, many of which are in smaller or remote communities, and that he is working or has worked with 12 of them.

Miera said Council’s job is to bring improvements to the infrastructure of the community. He said that the formation of the URA is a creative way to bring resources to the community.

White said that the URA would have as much authority as is voted on in incremental steps and that eminent domain may not even be included in the URA’s power if so voted. She said that many towns have used URAs to preserve historic buildings and that the purpose of a URA is to carry out the objectives of the community’s Comprehensive Plan.

White said that the URA can start as the City Council and then move to a citizen-appointed council but cannot be done in reverse.

Tinucci said it is hard to fill the positions of the various boards as it is now. Aiken said he would like to see a citizen board. Williams said he is interested in the tax-increment financing, grants, bonds, loans, and donations as revenue sources for improvements.

Fey called for the vote and all were in favor of Resolution 23-27.

Next, the City Council provided direction on the boundaries of the proposed URA Plan Area No. 1. This step makes it possible for the collective consultant team to consider areas for Urban Renewal.

Miera said that the gateway area of the City is a priority for renewal, including the T-lot, City Hall, and the Belvidere. He said the boundaries of the Plan Area No. 1 focus on places with environmental pollution and a lack of infrastructure. Everyone in the boundary area will receive a letter with thirty days minimum notice, but the area is almost exclusively non-residential.

The URA has until October to adopt a budget, and only after that will they decide what it is they want to accomplish. The board agreed with the map as delineated by PDC.

The final agenda item included an update from McCaskin regarding 1041 powers. These regulations allow local governments to identify, designate, and regulate areas and activities of state interest through a local permitting process.

McCaskin has reached out and retained special counsel to help draft the 1041 regulations and is continuing to work on that process.

During council comments, Aiken encouraged more attendance to the Central City Opera.

Fey adjourned the meeting at approximately 8:59 p.m.

The next Central City Council meeting is scheduled for 7 p.m. on July 18, 2023, at Central City Hall, 141 Nevada Street, second floor; or online via Zoom. Information can be found on the City website, centralcity.colorado.gov/ meetings.