(1) Any local government may apply for approval of a regional tourism project, including designation of a regional tourism zone, the creation of a regional tourism authority, and designation of a financing entity to receive, utilize, and disburse state sales tax increment revenue for eligible costs.
(1.5) (a) Before a local government submits an application for a regional tourism project to the Colorado office of economic development pursuant to subsection (2) of this section, the local government shall submit a map showing the proposed boundaries of the proposed regional tourism zone to the office of state planning and budgeting. The office of state planning and budgeting, in conjunction with the Colorado office of economic development, shall determine the baseline growth rate for the area included in the proposed regional tourism zone. In determining the baseline growth rate, the office of state planning and budgeting and the Colorado office of economic development shall consider the growth rate in the area included in the proposed regional tourism zone during the previous five calendar years at a minimum.
The office of state planning and budgeting may charge a local government a submission fee of up to three thousand dollars per submission for the costs incurred in determining the baseline growth rate.
The local government and the third-party analyst retained pursuant to paragraph (i) ofsubsection (2) of this section shall use the baseline growth rate in their assumptions and economic analyses for the purpose of calculating the total cumulative dollar amount and percentage of the state sales tax increment revenue that can be dedicated to the proposed regional tourism project as required by paragraphs (h) and (i) of subsection (2) of this section.
(2) A local government shall submit an application for a regional tourism project to the Colorado office of economic development in a form and manner to be determined by the commission. The office shall provide the commission with each application received after the director's review pursuant to section 24-46-305. The application shall include, but need not be limited to, the following:
Maps of the proposed project area showing both current conditions and a conceptualrendering of the proposed project in its anticipated built condition;
A map showing the proposed boundaries of the proposed regional tourism zone;
A narrative description of the proposed project, including the location and estimatedoverall cost, estimated eligible costs, anticipated scope and phasing of eligible improvements, and the infrastructure existing or needed in connection with the project;
A discussion of each of the application criteria and how the project will meet each ofthe criteria, including an economic analysis detailing projected economic development, impact on future state sales tax revenue during and after the financing term, the number of new jobs to be created by the project by job category as defined by the Colorado department of labor and employment occupational employment statistics survey and the wages and, to the extent that it is reasonably possible, information on health benefits for jobs in each category, market impact, anticipated regional and in-state competition, the ability to attract out-of-state tourists, the fiscal impact to local governments within and adjacent to the regional tourism zone, an analysis of the impact to local school districts and an estimate of the percentage of total program that the state will become responsible to fund through the state's share of total program pursuant to section 2254-106, C.R.S., in the event that an urban renewal authority is the financing entity for the regional tourism project and uses property tax revenue to finance the project, and any other information reasonably requested by the commission;
A description of the proposed financing entity, a general description of the financingentity's plan for financing the eligible costs and providing the eligible improvements, and whether authorization of a regional tourism authority is requested. A request for authorization of a regional tourism authority shall include a description of the proposed authority's geographic boundaries, requested powers, and anticipated sources of revenue, if any, in addition to state sales tax increment revenue.
If it is anticipated that the financing entity will enter into contractual arrangementswith one or more urban renewal authorities, metropolitan districts, local governments, or private parties with respect to the method of financing the eligible costs and providing eligible improvements, a general description of such contemplated contractual arrangements;
If it is anticipated that the eligible improvements will be constructed in phases or thatfinancing of the eligible costs will be accomplished in phases, a description of the contemplated phases and anticipated timing of the phases;
The proposed financing term, the total cumulative dollar amount of revenue that canbe allocated to the financing entity, the percentage of state sales tax increment revenue to be allocated to the financing entity, and the portion of the financing term during which such percentage is to be allocated to the financing entity. No single debt issuance of the financing entity shall have a maturity date in excess of thirty years; except that the financing term may exceed thirty years to the extent that the financing entity anticipates issuing a series of bonds or other forms of debt and provided that the financing entity shall have the ability to consolidate or refinance previously issued debt or bonds with a maturity date for such consolidated or refinanced debt or bonds not to exceed thirty years.
Along with the economic analysis submitted with the application, a report by a thirdparty analyst who is an expert in the field of economic or public financial analysis calculating the total cumulative dollar amount and percentage of the state sales tax increment revenue that can be dedicated to the regional tourism project to be set by the commission pursuant to section 24-46-305 (3)(d). The applicant shall share its data and reasoning with the third-party analyst, and the analyst shall rely on such data and reasoning as it deems appropriate in the exercise of its independent judgment. An applicant dissatisfied with such report may revise its application and request report revisions. The reviewing third-party analyst shall be chosen through a request for proposals issued by the office of state planning and budgeting to ensure an independent and thorough analysis, and the third-party analyst shall report to that office. The office of state planning and budgeting shall charge an application fee to the applicant to pay the costs for the third-party analyst to:
Assess the assumptions used in the application to estimate net new tourism revenuesto Colorado;
Calculate the total anticipated sales tax increment revenue in the proposed regionaltourism zone;
Calculate the amount and percentage of the total regional tourism zone sales taxincrement revenue that each county and municipality that is a party to a multi-party application is eligible to receive; and
Assess the probability of the proposed project moving forward without funding from tax increment financing.
(3) An application by a local government for designation as a regional tourism project shall be approved by the commission upon a finding by the majority of the commissioners participating in the review of the application that the application demonstrates that each of the following criteria are materially met:
The project is of an extraordinary and unique nature and is reasonably anticipated tocontribute significantly to economic development and tourism in the state and the communities where the project is located;
The project is reasonably anticipated to result in a substantial increase in out-of-statetourism;
A significant portion of the sales tax revenue generated by the project is reasonablyanticipated to be attributable to transactions with nonresidents of the state. An exception to this requirement may apply if a significant portion of the sales tax revenue generated by the project is reasonably anticipated to be attributable to residents of the state but the revenue would otherwise leave the state due to a lack of a similar project or facility in the state.
The local government has provided reliable economic data demonstrating that, in theabsence of state sales tax increment revenue, the project is not reasonably anticipated to be developed within the foreseeable future.
(4) The general assembly shall appropriate fifty thousand dollars to the office of state planning and budgeting for the 2014-15 state fiscal year to be used by the office for necessary and additional analytical work related to the proposed regional tourism projects.
Source: L. 2009: Entire part added, (SB 09-173), ch. 434, p. 2406, § 1, effective June 4. L. 2014: (1.5) and (4) added and (2)(h), (2)(i), and (3)(c) amended, (HB 14-1350), ch. 301, p. 1257, § 3, effective May 31.