Monday, January 14, 2008

URBAN RENEWAL AREA FOR THUNDERVILLAGE

No Urban Renewal Area and no public funds for Thundervillage and Bella Villa

URBAN RENEWAL AREA FOR THUNDERVILLAGE
Today I took a ride out highway 47 to the Troy exit north to see if the undeveloped land east of CSU Pueblo is as I remember it.  My first impression was that the land is as I remembered, undeveloped prairie. After getting back on highway 47, going east, I noticed that a pipeline was being built on both the north and south sides of the highway. 
I located the project supervisor, with K R Swerdferger Construction, Inc., to find out what was going on there.  He told me it was the sanitary(sewage) pipe line for the Thundervillage development.  So, the LDM LLC has already started working on their development.
Also what LDM has already started working on, is the Urban Renewal Authority, having requested that all the land which will includes Bella Villa and Thundervillage be designated as an Urban Renewal Area.  Why, so they will be in a position to receive public funding.  The Principals of LDM have been involved in many projects on which they have received public funding. They know the game.  It is hard to understand why they need the public funding, for each of them in their own right is a multimillionaire.

The Urban Renewal Authority has already determined the land is a “blighted area” which is a prerequisite to being designated as an Urban Renewal Area. The Authority’s executive director said that the area met seven of the eleven factors used to determine if an area is Blighted at the last Planning and Zoning Commission meeting.  I believe the Authority has not objectively made the “blighted area” determination.  I suggest that every member of the Authority, the City Council, and the Planning and Zoning Commission make a field trip to Thundervillage to re-evaluate the “blighted area” designation.
From my observations of the property in question, I determined the land is not a “blighted area”
The Colorado Revised Statutes
31-25-103
(2)  “Blighted area” means an area that, in its present condition and use and, by reason of the presence of at least four of the following factors, substantially impairs or arrests the sound growth of the municipality, retards the provision of housing accommodations, or constitutes an economic or social liability, and is a menace to the public health, safety, morals, or welfare:

(a) Slum, deteriorated, or deteriorating structures;
This is undeveloped land, there are no structures or inhabitants .
   
(b)   Predominance of defective or inadequate street layout;
There are no streets therefore there is no defective or inadequate street layout.
   
(c) Faulty lot layout in relation to size, adequacy, accessibility, or usefulness;
As undeveloped land, lot layout will be the responsibility of the developer with the approval of the appropriate City commission.

(d) Unsanitary or unsafe conditions;
As undeveloped prairie no unsanitary or unsafe conditions were noted.
No garbage or vermin could be seen.

(e) Deterioration of site or other improvements;
As undeveloped prairie no noticeable deterioration of the site was seen or with the new sanitary pipeline.

(f) Unusual topography or inadequate public improvements or utilities;
There is a gully running down the middle of the property, but nothing a competent construction contractor couldn’t handle.  Again, since the property is undeveloped prairie there are no public improvements or utilities.

(g) Defective or unusual conditions of title rendering the title nonmarketable;
Without going to the County Court House, I have no idea if there are problems with the title.  With all the lawyers that LDM must have, I can’t see that there would be any problems.

(h) The existence of conditions that endanger life or property by fire or other causes;
No conditions exist that endanger life or property by fire or other causes any more than any other undeveloped prairie.

(i) Buildings that are unsafe or unhealthy for persons to live or work in because of code violations, dilapidation, defective design, physical construction, or faulty or inadequate facilities;
Since there are no buildings, none of the stated conditions can exist.

(j) Environmental contamination of buildings or property;
There is no environmental contamination of buildings, since there are no buildings. There is no environmental contamination of the property, except for what is being introduced by the land owner/developer.

    (k.5)  The existence of health, safety, or welfare factors requiring high levels of  
          municipal services or substantial physical underutilization or vacancy of
          sites, buildings, or other improvements;
          Since there are no buildings or inhabitants on this property none of the
          Conditions apply.

From my observation of the nature of the land and its condition I have come to the conclusion that none of the factors, (a) through (k.5), needed to determine an area to be ‘blighted” apply to LDM property.

The Urban Renewal Area described at the Planning and Zoning Commission meeting does include some additional land south of highway 47 at the Troy/highway 47 interchange.  This is to make sure that the City/CDOT will be required to pay for any improvements the interchange will need.
The Authority’s executive director point out that the projected Tax Incremental Financing(TIF) would be $21 million over twenty-five years.  When the question came up about whether the developer needed public money or not and if the question should be answered before or after making their property an Urban Renewal Area, the commission dropped the question saying it was outside their responsibility.

After the meeting I approached Jim Munch, LDM spokesman, and asked him if he felt LDM would discuss the financing of the development with the City and the amount of private funding available to them to determine if in fact they needed public funds before making their property into an Urban Renewal Area.  He said that wouldn’t be possible because LDM has no idea what their total costs are going to be for the project at this time.  This leads to an interesting observation about how the Authority’s executive director could project a $21 million TIF without knowing the total costs of the project.  Makes you wonder, Huh!

In my estimation, the Bella Villa or the Thundervillage LDM developments do not qualify as a Urban Renewal Area and that LDM and the Bella Vella owner/ developer has the financial resources to develop the project without the need of public funding.

Something to keep in mind, new developments and the cost to the City should be a concern for everyone. Every dollar that is spent on new projects means less that is spent on infrastructure and maintenance in the existing neighborhoods of the City.

The City claims the Pueblo Springs Ranch will not cost the City a dime.  If Thundervillage becomes an Urban Renewal Area from undeveloped land, the City is setting a precedent.  Just think, when the Pueblo Springs Ranch is annexed, the City just might create an Urban Renewal Area covering all 23,000 acres. I wonder how much that would cost us.

Ted Freeman

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