Twin Peaks Mall

The mall has been in decline for years, resulting in fewer local shopping choices and, most importantly for the city, declining sales tax revenue. The situation is complicated by the international economic meltdown that occurred in the Fall of 2008.  As a result, the bond markets are weak and private financing restrictive.

Will Damrath of Panattoni recently announced that there are plans to move forward to erect a state-of-the-art 14-screen movie theatre.  On August 3rd he announced that Sprouts Farmers Market would occupy the space formerly occupied by J. C. Penney.   Council was also told that a “concept plan” for initial phasing could be expected by the end of the year.

This is exciting news!  Both the theater and a grocery will likely act as catalysts not only for further redevelopment of the mall but for increased traffic to the existing businesses within the mall.  This is the free market operating at its best.

The Diagonal Highway and Hover Street intersection area is a major gateway to Longmont from the west and is of enormous value to the City of Longmont.   With this in mind, the city conducted a two-day workshop with development experts, city officials and local stakeholders, including Panattoni, to arrive at consensus about the direction and mechanism of development.  I was an active participant in this workshop and at the subsequent public hearings on the plan’s development.

In order to accomplish our goals, an Urban Renewal Plan (URP) with a shared vision was developed.  The URP anticipates using a vehicle known as Tax Increment Financing (TIF) to make the redevelopment of the mall and its surroundings more likely to occur.

What is TIF? Simply stated, it means that sales taxes and property taxes above and beyond the urban renewal area’s baseline taxes must be directed to development within the plan area.  We must keep in mind that these revenues are limited to public improvements on the property within the urban renewal area and are not allowed by state law to be used by a developer to build the Mall proper.  That is the responsibility of the developer.

These TIF funds are allocated for 25 years (and possibly more).  The amount can be as much as 100% of all new sales tax revenues and/or all new property tax revenues.  I support the Urban Renewal Plan.  However, I have concerns about the degree of commitment to tax increment financing.

Along with all other segments of our society, Longmont faces financial uncertainty.   As of this time, I believe it is prudent to engage in a balanced public/private partnership with the mall developers.  New revenues generated through TIF financing should be shared between the urban renewal area and the city’s general fund.  This is the fund that provides the vast majority of the services that our residents need and expect.  And we must take all necessary steps to assure that we can continue to meet our shared needs.

I believe that Panattoni understands that a financially viable Longmont is essential to our mutual objectives.