To: Board of County Commissioners
Through: N/A
Prepared By:
prepared
Michelle Halstead, Director, Commissioners’ office
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Subject:
title
Approve an intergovernmental agreement between the Aurora Urban Renewal Authority, the City of Aurora, and Arapahoe County for 13th Avenue Urban Renewal Plan Cooperation
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Purpose and Request:
recommended action
Authorize the Chair of the Board of County Commissioners to sign the intergovernmental agreement to cooperate on the 13th Avenue Urban Renewal Plan within the City of Aurora.
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Alignment with Strategic Plan: Sustainable Growth and Infrastructure - Implement smart growth policies to align housing, transportation, open spaces and economic development.
Background and Discussion: Consistent with Colorado Urban Renewal Law § 31-25-107(3.5) C.R.S., the Aurora Urban Renewal Authority (AURA) and the City of Aurora submitted an Impact Report June 10, 2025, concerning the proposed 13th Avenue Station Urban Renewal Plan and two proposed Tax Increment Financing (TIF) areas. This submittal began the 120-day statutory negotiation period; the attached cooperation agreement reflects the outcome of successful negotiations in alignment with state statute.
Aurora has long-envisioned the transformation of the underutilized 13th Avenue Station into a multifaceted neighborhood with diverse transit-oriented housing choices. However, the high-level vision for residential development hinges on solving the access and infrastructure challenges in the area. By taking the lead in planning and securing financing for necessary infrastructure, mainly the extension of Dillon Way and a multimodal bridge crossing of Tollgate Creek, Aurora will enable the construction of a significant concentration of workforce and affordable/mixed-income housing.
Subject to final site plan designs, future development at 13th Avenue station could provide nearly 1,000 infill housing units. Total bridge and road costs are currently estimated at $8 million (2024) and will be refined in the coming design process. Aurora has secured $4 million in State grant funding to support the necessary infrastructure and TIF will be an important mechanism for closing the remaining financial gap. Without an up-front investment in infrastructure, the 13th Avenue station area will continue to languish - a strategic urban, transit-oriented infill location with unrealized potential. Recognizing that housing does not generate large amounts of property tax increment and that deed-restricted affordable units are often tax-exempt, Aurora successfully secured $4 million in State grant funding, and the Authority is front-funding an additional $4 million, for the extraordinary infrastructure expenses, to be paid back over time with tax increment revenue. If approved, bridge and road improvements will allow for new development with a total estimated value of over $225 million.
Aurora sought Arapahoe County’s participation in financing the public improvements through sharing of future property tax increment, generated from the new development. Staff from the Commissioners’ Office, Finance, and Community Resources Departments reviewed information, identified options for negotiation discussions, and provided input to city staff to inform a June 24, 2025, study session.
During the 25-year life of the TIF areas, the County negotiated to receive 35% of incremental property tax revenues, in addition to revenue from the Base portion of the assessed property values. At the conclusion of the TIF areas, the County will receive the full increase in revenues from the assessed property values. The County successfully negotiated excluding the County’s Developmental Disability Mill Levy from the TIF areas, meaning the County will retain 100% of that revenue for critical intellectual and developmental disability programs and services throughout the county. In exchange for TIF participation, the County also secured a portion - 18 units - of any future affordable housing constructed on the RTD property to be attributed to established Proposition 123 goals.
The Aurora City Council is scheduled to adopt this agreement in November, subject to approval by the Board of County Commissioners.
Alternatives: The Board could decide not to approve the agreement, which would result a State-mandated mediation process.
Fiscal Impact: Under the terms of the agreement, the County will retain 35% of the incremental property tax revenue derived from Tax Increment Finance areas 1 and 2 identified within the 13th Avenue plan. Additionally, the County will retain and spend 100% of property tax revenues from the Developmental Disability Mill Levy within the plan area. The County also will receive credit for 18 housing units consistent with Proposition 123 affordable housing commitments and established City/County processes.
Even with an agreed-upon level of support, however, it is possible that the final infrastructure costs may exceed the projected TIF revenues. If that is the case, AURA will seek additional funding (from grants, development partners, etc.) to fill the gap. If additional funding is unavailable, the infrastructure project will not proceed, and the identified housing sites will continue to remain undeveloped. Conversely, lower project costs or greater than anticipated TIF revenues would allow AURA to potentially assist with needs related to the construction of affordable housing on the RTD station parcel.
Alignment with Strategic Implementation Strategies: N/A.
Concurrence: The County Attorney’s Office, Community Resources and Finance Departments concur with this recommendation. The City of Aurora concurs as well.