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TO: Mayor Richard C. Irvin
FROM: David Dibo, Executive Director of Economic Development
DATE: November 15, 2020
SUBJECT:
A Resolution Authorizing and Approving a Business Development District Sales Tax Sharing Agreement with Pacific Square, DE LLC and Authorizing and Approving the Use of Business District Taxes to Reimburse Pacific Square, DE LLC for Eligible Costs in Redeveloping Pacifica Square Shopping Center.
PURPOSE:
Staff is requesting authorization to reimburse the developer for their eligible costs in redeveloping Pacifica Square Shopping Center. The Business District Development District Tax Sharing Agreement is the Mechanism that allows the City to Use the Business District Taxes to reimburse the Developer for their eligible costs in redeveloping the shopping center.
BACKGROUND:
This resolution is the final step in a series of Council actions that created mechanisms that enables the City to impose tax on customers of merchants within the center to help defray the significant costs of redevelopment of the center. This is one leg of a three-tier approach of an incentive package that keys off new dollars created by virtue of the shopping center's redevelopment. (In February when the Center was purchased, occupancies were running about 40%; they are now above 90%)
The City previously passed ordinances creating the Business Development District and imposing a Business Development District Tax. On June 11, 2019, the City approved Ordinance (O19-225) that proposed the plan for creation of a Business District and on August 27, 2019 designated the Aurora Business District no. 1 with ordinance O19-057. With its formation, on the same date the City approved the Business District Retailer's Occupation Tax (O2019-058) that allows for the imposition of up to a 1% tax imposed in 0.25% increments. On September 24, 2019, the City amended O2019-058 to set the tax imposed at the rate of 0.25% (O2019-063). This final resolution enables the City to use the Busi...
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