The Longmont City Council approved a plan to allocate $27.5 million toward redeveloping the Twin Peaks Mall. The investment will come in the form of city-issued debt that would be repaid over 25 years. Longmont expects to receive about $92 million in new tax revenue over that quarter-century, not including the repayment of the debt itself.
The city’s contribution comes with certain conditions. At least 70 percent of the mall must be re-opened by the end of 2014, with the rest by the end of the next year. 80 percent of the retailers at the mall must be new to Longmont. NewMark Merrill must attract a movie theater with at least a dozen screens and a large general-merchandise retailer, among the other conditions.
The $27.5 million would come from city-issued debt — technically a Certificate of Participation — which would be repaid over 25 years by the additional sales and property tax generated by the mall and by a mill levy the mall will place on itself. Over that 25-year period, the city expects to take in $92 million of new tax revenue, not counting the amount needed to repay the debt.
The agreement passed by a 6-1 vote, with Councilwoman Sarah Levison opposed. She said the agreement had flaws but declined to elaborate on the rationale behind her analysis.