There is hereby established in the City of Golden, an incentive program for commercial, office and manufacturing development, expansion and upgrade, for purposes of the economic revitalization of the community, and the maintenance and enhancement of the business and employment opportunities of the community. This chapter is intended to implement, apply, interpret, and comply with the provisions of chapter XI.V of the City of Golden Charter pertaining to restrictions on certain subsidies and incentives for development.

(Ord. 1678, 2004; Ord. 1149, § 2, 1992; Ord. 1119, § 2, 1991)

For the purposes of this chapter and for the purpose of interpreting chapter XI.V of the City of Golden Charter, the following definitions shall apply:

Development subsidies or incentive: Subsidies and incentives authorized and paid for or financed by the city to encourage the expansion, retention, construction, or replacement of a specified business or a specified commercial, industrial or residential development. Development subsidies or incentives may include, but are not limited to, the following:

(a)

Tax waivers, credits, or refunds;

(b)

Direct monetary payments and rebates, including those based upon city sales, use or property tax collections;

(c)

Waivers or deferments of development fees including, but not limited to water and sewer tap fees, building permit fees, impact fees, land dedication requirements or fees-in-lieu thereof;

(d)

Labor or materials provided by the city for construction or demolition of privately owned improvements on private property;

(e)

Construction or enhancement by the city of publicly owned improvements, such as public streets, sidewalks and utility mains, but only if the need for such public improvements is uniquely, directly and entirely necessitated by reason of a particular business or development. Construction or enhancement of public improvements for the benefit of the city, community or neighborhood, as a whole, shall not be deemed a development subsidy or incentive with the meaning of Chapter XI.V of the City of Golden Charter, or this chapter of the Golden Municipal Code, even if such improvements result in an incidental benefit to a specific business or development;

(f)

Any interest in real estate transferred by the city for less than fair market value.

Subsidies and incentives authorized or paid for by the city pursuant to a program established by the city where the primary purpose of such program is other than the encouragement of expansion, retention, construction or replacement of commercial, industrial or residential development (such as, by way of example only, resource conservation or social welfare enhancements) shall not be consider a "development subsidy or incentive", as defined herein, even if an incidental result of such program is beneficial to development.

Economic incentive development agreement: An agreement between the City of Golden and a single recipient to promote economic development through awarding the recipient development subsidies or incentives on a per project basis. Subsequent assignment of the benefits of an economic incentive agreement to multiple parties will not impact the status of the agreement as an economic incentive development agreement.

Economic incentive development program: A program established by City of Golden for commercial, office, and manufacturing development, expansion, and upgrade, for purposes of economic revitalization of the community, and the maintenance and enhancement of the business and employment opportunities of the community. Such a program will generally involve more than one recipient who may qualify for development incentives or subsidies.

Recipient: Any single entity or individual receiving a development subsidies or incentives in connection with the expansion, retention, construction, or replacement of a business or any commercial, industrial, or residential development at a specifically identifiable property.

Specifically identifiable property: A parcel of property uniquely described in the records of the Jefferson County Clerk and Recorder with an associated distinct parcel or schedule number, separate from and unconnected to any other property owned, developed, or managed by a recipient.

(Ord. 1678, 2004)

Subject to compliance with the Golden Municipal Charter requirements and limitations, established policy and regulation; and upon consideration of business plans, perform a revenue enhancement analysis, level of job creation/retention, and physical improvements to the appearance or historic character of the property, and any recommendations of the economic development commission, and further subject to city council's right to call up and rescind agreements as provided in subsection (8) below, the city manager is authorized to negotiate and enter into on behalf of the city economic development incentive agreements which:

(1)

May be considered for new, expanded or upgraded development of retail, office, service, and manufacturing/distribution projects; and

(2)

Shall not exceed the anticipated annual revenue enhancement to the City of Golden during the term for which inducements are offered. Such annual revenue enhancement analysis shall consider direct revenues generated by development related charges, sales and use tax and property tax, which shall be diminished by previously established levels of sales tax and property tax for subject property, by anticipated detrimental effect upon sales and property tax currently generated elsewhere in the city; and

(3)

Shall be for a specified time limit for both the duration of incentive and the maximum time period to exercise the agreement; and

(4)

Shall, to the degree reasonably possible, avoid any substantial delay between the time when an incentive is received and the time when city revenues are realized; and

(5)

May consist of one or more of the following development subsidies or incentives:

(a)

Reimbursement of a part or all of incremental local property tax for up to seven years, provided however, that any reimbursement based upon revenues generated within the Golden Urban Renewal Authority boundaries shall not impact the incremental revenues pledged by the city to the authority.

(b)

Reimbursement of a portion of incremental local sales and use taxes, except building materials use tax, for up to five years; said portion reimbursed to be determined by a fiscal impact analysis when warranted as determined by the city manager, or in the absence of a fiscal impact analysis not to exceed 70 percent of the incremental revenues when there is an existing base of sales and use tax collections, and not to exceed 50 percent of the incremental revenues when there is no existing base, provided, however, that the sales and use tax capital improvement fund or the revenues pledged thereto shall not be used for any reimbursement. Furthermore any reimbursement based upon revenues generated within the Golden Urban Renewal Authority area boundaries shall not impact the incremental tax revenues pledged by the city to the authority.

(c)

Waiver of all or part of the development application fees.

(d)

Waiver or deferment, or a combination thereof, of all or a portion of development charges or fees which would otherwise be payable to the city by reason of the development. The development charges and/or fees which are subject to this section shall include, by way of example, public land dedication requirements, cash in lieu of land dedication requirements, and charges necessitated by connection to the city water and sewer systems. Any amounts deferred under the provisions of this paragraph shall not be deferred longer than four years. Any deferred and unpaid amounts in conjunction with the provision of water and sewer services shall constitute a perpetual and continuing lien upon the property to which the water and sanitary sewer services are provided. Such lien shall be prior and superior to all other liens, claims, titles and encumbrances, whether prior in time or not, except liens for general taxes; provided, however, that the city may, in its sole discretion, subordinate such lien for the purpose of effecting development or construction on such property. The city manager may require additional security for payment of any amounts deferred under this section. In addition to other remedies as may be available to the city for non-payment of any water or sewer connection charges deferred pursuant to this section, the city may discontinue water service to the subject property following the procedures as are provided for in chapter 13.08 of the Golden Municipal Code.

(e)

A credit for all or part of building materials use tax, provided, however, that the sales and use tax capital improvement fund or the revenues pledged thereto shall not be used for any credit.

(f)

Construction or enhancement of public improvements uniquely and directly necessitated by reason of the business or development.

(6)

May address, or otherwise provide for, the construction or enhancement by the city of public improvements that benefit the city, community or neighborhood as a whole.

(7)

Agreements incorporating such incentives shall be reviewed and approved by the city attorney as to legality prior to approval by the city manager.

(8)

The city council shall be immediately notified of economic incentive development agreements, and the anticipated value and benefit thereof, approved by the city manager under the authority of this section. If within 15 days of notification there has been no call up for city council review and rescission of the agreement by council action, the agreement shall be final.

(Ord. 1678, 2004; Ord. 1149, §§ 1, 2, 1992; Ord. 1119, § 3, 1991)

Notwithstanding the provisions of section 18.60.030 herein, the city council may, by resolution, affirmatively act to authorize economic development incentive agreements which are not subject to the specific limitations contained in section 18.60.030, and economic development incentive development programs provided, that such agreements:

(1)

Comply with all relevant provisions of the City of Golden Charter and Golden Municipal Code, including a favorable vote by the electors if required under the Charter or Code; and

(2)

Are for a specified time limit for both the duration of the incentive and the time period during which the agreement may be exercised or program benefits realized; and

(3)

Have a stated maximum dollar amount of the benefit or incentive.

(Ord. 1678, 2004)

(1)

Voter approval. Pursuant to Chapter XLV of the City of Golden Charter, any economic development incentive agreement or program that exceeds the limits set forth in this section must be authorized by approval by the electors of the City of Golden at a regular or special election. The reasonable costs of such a regular or special election attributable to the economic development incentive agreement shall be paid by the proposed recipient, who shall post a bond or other security as may be approved by city council, to ensure such payment. Upon authorization by a majority of electors, city council, in its sole discretion, may approve or disapprove the economic development incentive agreement by resolution. The following economic development incentives will require voter approval:

(a)

Except those agreements described in subsection (1)(b) of this section, any separate economic development incentive agreement wherein the maximum aggregate amount of the subsidies or incentives attributable to any individual recipient for a specifically identified property or project may exceed $44,000.00 over the entire term of the agreement.

(b)

Any separate economic development incentive agreement wherein the maximum aggregate amount of the subsidies or incentives attributable to any individual recipient for a specifically identified property or project may exceed $177,000.00 over the term of the agreement if:

1.

The subject matter of the economic development incentive agreement relates to the construction or development of senior housing developments or low income housing developments that qualifies as such by any state or federal law or regulation; or

2.

If the subject matter of the economic development incentive agreement pertains to the renovation or restoration of properties designated as historic sites, structures or included within a historic district as described in chapter 18.58 of the Golden Municipal Code.

(c)

Any economic development incentive program instituted by the City of Golden wherein the maximum aggregate amount of development subsidies or incentives attributable to any qualified recipient in connection with the establishment, expansion, retention or replacement of a business, or commercial, industrial or residential development in a specifically identifiable property exceeds $44,000.00 during the course of any three-consecutive-year period.

(d)

The monetary amounts established in this subsection shall be calculated based upon the estimated cost to the City of Golden of such incentive or subsidy. In estimating such cost, any resulting benefit shall not be considered to reduce the cost.

(e)

Pursuant to the authority in charter section 11.5.3 "Exceptions not requiring voter approval", the limitations on development incentives or subsidies shall be adjusted automatically for inflation on January 1, 2025, and on January 1 of each year thereafter. As used in this paragraph, "inflation" means the Colorado consumer price index or a similar index that is tied to the annual rate of inflation in the state or Denver-Golden area.

(2)

Separate agreements. For the purposes of this section and the Charter, an economic development incentive agreement shall be considered a separate agreement, with separate applications of the limitations contained in subsection (1) above, when all of the following criteria are met:

(a)

The economic development incentive agreement pertains to a parcel of property uniquely described in the records of the Jefferson County Clerk and Recorder with a distinct parcel and schedule number.

(b)

The project that the agreement is benefiting is a distinct project, receiving a separate building permit.

(c)

There has not been an economic incentive development agreement involving the same recipient and the same property within the previous three years.

(3)

Separate recipient of benefit. For purposes of this section, a recipient of benefit under an economic development program shall be considered a separate recipient with separate applications of the limitations contained in subsection (1) above, whenever all of the following criteria are met:

(a)

The economic incentive development program benefit pertains to a parcel of property uniquely described in the records of the Jefferson County Clerk and Recorder with a distinct parcel and schedule number.

(b)

The project that the economic incentive development program is benefiting is a distinct project, receiving a separate building permit.

(c)

The recipient has not participated in the same economic incentive development program for the same property within the previous three years.

(4)

Separation of recipients to avoid voter approval prohibited. The voter approval requirement of the City of Golden Home Rule Charter and as provided in subsection (1) above shall not be circumvented or otherwise avoided by the creation of separate entities as individual recipients for the purpose of lowering the threshold incentive or subsidy amounts.

(5)

[Posting required.] Any economic development incentive agreement or program shall include the requirement that the recipient post a sign at the premises of the business or development benefiting from the incentive or subsidy for a period of five years from the approval of the agreement. The sign shall be posted in a conspicuous location for public viewing with at least two-inch high letters, thanking the taxpayers and stating the estimated dollar value of the agreement.

(Ord. No. 2239, § 2, 5-28-2024; Ord. 1678, 2004)

In evaluating, negotiating, and approving development subsidies and incentives, the city council, and/or the city manager (as the case may be) will:

(1)

Consider the degree to which the proposed incentive or subsidy is needed to facilitate the new, expanded or upgraded development.

(2)

Consider the degree to which integral private sector parties (such as the applicant, landlord or property seller, and financial institutions) have made reasonable adjustments and efficiently negotiated to enhance project viability.

(3)

Consider the revenue enhancement potentials to the city.

(4)

Consider the potential impact and benefits to:

(a)

Established community plans and policies/goals.

(b)

Established water and sewer utilities and other community services and facilities.

(c)

The extent to which the revenue enhancement had been previously anticipated and reflected in the annual budget, in which case the latitude of incentive shall be restricted to avoid unanticipated budgetary impact.

(Ord. 1678, 2004; Ord. 1149, § 2, 1992; Ord. 1119, § 4, 1991)

The board of commissioners of the Golden Urban Renewal Authority shall be consulted regarding coordination of incentives within the urban renewal authority area. Neither the provisions of this chapter, nor the provision of Chapter XLV of the Charter of the City of Golden shall apply to or restrict the Golden Urban Renewal Authority from implementing its own programs and agreements relating to economic development.

(Ord. 1678, 2004; Ord. 1149, § 2, 1992; Ord. 1119, § 5, 1991)

No "vested property right" within the meaning of Title 24, Chapter 68 of the Colorado Revised Statutes, or other such similar property interests or rights shall be considered granted or impliedly conferred upon any person or entity by the programs described herein.

(Ord. 1678, 2004; Ord. 1149, § 2, 1992; Ord. 1119, § 6, 1991)