Vail Daily’s Wisdom from the Web
Vail, CO, Colorado
Letter: Keep Eagle unique
Cities need growth. And the market might self-correct in the next couple of years when this is built. But to base their plans on shoppers from Silverthorne to Rifle is to me, a stretch even in a good economy.
My concern is this: “Under the deal, a metropolitan district, not the town (of Eagle), would be on the hook for the projects debt.”
“The Eagle River Station project is expected to cost the town of Eagle about $600,000 per year in municipal services. The deal would also use tax money produced by the project to build $62.5 million in infrastructure, including a new I-70 interchange, two new roundabouts, sewer upgrades…”
What if ERS doesn’t produce enough tax revenue?
Incremental taxes (taxes not received by the town without this project being built), or TIF, pay off bonds. If there is not enough revenue to retire the bonds, then the bondholders do not receive the anticipated return on their investment. The town never steps in, and does not guarantee the bonds. If RED is the primary bond holder at the end of the day, and they do not reach their revenue targets, then they take the risk and pay the price. The town is scheduled to receive the PIF fee, and they are asking for that fee to be 1.5 percent of sales. At that rate, the shopping center would have to produce a total of $40,000,000 in sales, or $73 per square foot in average sales, using 550,000 SF for the size of the shopping center in order to raise $600,000 per year.The article you quoted correctly describes this as a method used to provide infrastructure for a town or county that cannot afford to provide them on its own.
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