The Loveland City Council and Larimer County Commissioners approved an agreement to share revenue as part of a tax increment financing (TIF) package for the North Catalyst project in the amended Block 41-Finley’s Addition Urban Renewal Plan Area. North Catalyst includes a five-story, 72-unit mixed-use project called Gallery Lofts, which is being developed by Brinkman Partners.
According to the plan outlined by City Manager Bill Cahill, the existing obligations of the URA, including payments established to Lincoln Place and to the City for the Brinkman project, will be paid first, together with a reserve to assure the ability to pay those obligations. The County will receive a portion of the remaining available tax increment. The County’s portion begins in 2015 at 30 percent of the County’s ordinary share of property taxes from the project area, and escalates over time to 50 percent of the County’s ordinary share. The URA expires in 2027. The County is paid only from TIF, and if insufficient TIF is available, neither the City nor the Loveland Urban Renewal Authority (LURA) is responsible for payments beyond the available TIF.
In making this agreement the City avoided potential conflict with the County, which has previously voiced its concern with TIF. Cities receive a majority of revenue from sales tax, while other jurisdictions such as the County rely heavily on property taxes and “lose” the additional property tax increases generated by urban renewal projects. It’s anticipated the County will receive approximately $407,000 in revenue as a result of the agreement.