FAQs

Tax-Increment Financing (TIF) is a public financing tool used to subsidize municipal economic development projects, including the removal of blighted conditions, infrastructure, redevelopment, and other community improvement projects. When a TIF district is established, the amount of property tax and sales tax generated is set as the district’s base amount prior to implementing improvements. After completing the public improvements, any property tax and/ or sales tax that is collected above the base amount can be reinvested into the district or used to pay bonds.

In short, a portion of the property tax and sales tax in the Old Town Urban Renewal District is collected and reinvested back into the area to fund LURA improvements and projects.

Blight is a legal term used solely for the purpose of determining whether a neighborhood or commercial area can qualify for redevelopment through urban renewal. Not every home or building in an urban renewal area is considered blighted. Some areas that qualify for redevelopment may have well-maintained homes or businesses interspersed among deteriorating structures and other conditions of blight. It is important to remember that the term blight can often feel subjective or vague. Because of this, Colorado Urban Renewal Law defines "conditions of blight" as:

• Deteriorated or deteriorating structures
• Presence of faulty lot layout, such as inconvenient access and lots of inadequate size for development
• Presence of unsanitary and unsafe conditions, including lack of pedestrian facilities, inadequate lighting, hazardous play areas, and junk and debris
• Presence of site problems, such as parking problems, unpaved alleys, and awkward building placement
• Presence of substandard conditions
• Conditions of blight that have inhibited business growth and have led to the loss of several businesses