HomeMy Public PortalAbout6c Grand Park Incentives AgreementAgreement For Certain Economic Inducements and Incentives
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AGREEMENT
FOR
CERTAIN ECONOMIC INDUCEMENTS AND INCENTIVES
THIS AGREEMENT FOR CERTAIN ECONOMIC INDUCEMENTS AND INCENTIVES
(“Agreement”) is executed effective as of _______________________ (“Effective Date”), by and
between the TOWN OF FRASER, COLORADO, a Colorado municipal corporation (“Town”),
and GRAND PARK (hereinafter referred to as “Owner”, whether one or more).
RECITALS:
A. The Town has adopted the Fraser Economic Development Policy to encourage, in
part, the establishment and expansion of retail sale tax generating businesses within
the Town of Fraser and to further other public purposes.
B. Owner is the owner of the property located at Planning Areas 1W and 2W, also
known as the Village at Grand Park, Fraser, Colorado (“Property”), which is further
described in Exhibit A hereto, incorporated herein by this reference as if set forth
fully. Owner intends to undertake new commercial real estate and business
development on said Property, generally described as follows (the “Proposed
Development”):
Mixed use commercial and residential development as described by the Grand Park
Planned Development District and the Final Planned Development Plan and
Development Permit for the Village at Grand Park.
C. In order to facilitate such Proposed Development, Owner desires to obtain the
benefits of certain incentives pursuant to the Fraser Economic Development Policy,
as set forth below. The Town finds and determines that such incentives will facilitate
the Proposed Development, which will generate additional sales tax revenues and
otherwise serve the public interest.
D. It is an appropriate and lawful function of Colorado municipalities to encourage
economic vitality through economic inducements and incentives.
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth
herein, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Town and Owner agree as follows:
1. The foregoing Recitals are fully incorporated herein by this reference with the same
force and effect as though restated below.
2. Determination of Public Benefit, Reliance of the Town.
a. The Town maintains certain guidelines for evaluating the public benefit of
commercial development within its corporate limits, and the value of providing
economic inducements and incentives to encourage and sustain such
development. In reliance upon certain data and information provided to the Town
by Owner, the Town has determined that annexation of the Property and
eventual construction and operation of the Facility satisfies such guidelines and
will be of substantial economic benefit to the Town.
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b. Owner has provided the Town with certain information and representations upon
which the Town has relied in determining future tax revenue generation from
commercial activity presently taking place and anticipated to take place in the
foreseeable future within the Property. By entering into this Agreement, the
Town is relying on Owner’s representations in good faith.
3. Agreed Incentives and Inducements.
In light of the foregoing, the Town agrees to the following incentives and inducements upon
the terms and conditions set forth below:
a. Fee Rebate. Owner will pay the applicable permit and review fees for the Proposed
Development, but the Town agrees to rebate a portion of those fees equal to $1.00
per square foot of new usable commercial space constructed as part of the Proposed
Development, payable upon issuance of the certificate of occupancy for such space.
b. Use Tax Waiver. The Town agrees waive payment of the Town’s 4% building and
construction use tax that is otherwise payable on building and construction materials
used or consumed within the Town as provided in the Fraser Municipal Code.
c. Sales Tax Rebate. The Town will reimburse Owner for the amount of Town sales
taxes generated by the retail business operations conducted on the Property
following completion of and issuance of a certificate of occupancy for the commercial
improvements to be constructed as part of the Proposed Development. Such rebate
shall be in an amount equal to 100% of the sales taxes collected for the period of five
(5) years following the issuance of the certificate of occupancy, and 50% of such
sales taxes collected during the subsequent five (5) year period. Such rebates shall
be made on an annual or other periodic basis, as determined by the Town, based on
sales tax returns submitted to the State and reported to the Town. Owner hereby
voluntarily waives its right to confidentiality as provided in State statutes and the
Fraser Municipal Code and consents to disclosure of sales and use tax information
specific to taxable activity taking place on the Property during the entire period for
which such rebates are to be made, and Owner specifically consents to public
discussion and analysis of such information before Town governmental and
administrative bodies.
d. Property Tax Rebate. The Town will reimburse Owner for the increase in Town ad
valorem real and personal property taxes collected by the Town for the five-year
period following completion of the improvements included in the Proposed
Development. The increase in such taxes, and the amount to be reimbursed, shall
be measured by the difference between the amount of real and personal property
taxes collected by the Town with respect to the Property and any business personal
property used in connection therewith for the tax year preceding the year in which a
certificate of occupancy is issued for the commercial space included in the Proposed
Development, and the amount of such taxes collected for the tax year when such
certificate of occupancy was issued and each of the four (4) succeeding tax years.
The reimbursement shall be paid for each year within 90 days after collection of the
taxes and verification by the Town of the amount to be reimbursed.
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e. Deferral of Plant Investment Fees. The Town agrees to allow the deferred
payment of water and wastewater plant investment fees, which are normally payable
at the time of issuance of a building permit. Owner will be allowed to pay such plant
investment fees in three (3) equal annual installments, without interest, with the first
installment payable on or before the date that is one (1) year after the issuance of
the certificate of occupancy for the commercial improvements to be constructed as
part of the Proposed Development, and with subsequent annual installments payable
on or before each anniversary date thereafter.
f. Service Fee Waiver/Deferral. The Town agrees to waive payment of service fees
for water and wastewater service until the issuance of a certificate of occupancy for
any of the improvements included in the Proposed Development, or until three (3)
years after the date of this Agreement, whichever comes first..
4. Conditions; Enforcement.
a. Completion of Improvements. This Agreement is entered into upon the
condition that Owner shall commence construction of the commercial
improvements included in the Proposed Development prior to January 1, 2019,
and obtain the issuance of a certificate of occupancy therefore, not later than
January 1, 2021 If this condition is not satisfied by the specified date, the Town
may terminate this Agreement by giving written notice to Owner. In the event of
such termination, Owner shall be responsible of payment of all fees, taxes and
other charges due, which otherwise have been or would be waived, rebated or
deferred pursuant to Section 3 hereof.
b. Length of Operation. At a minimum, Owner shall operate a retail business on
the Property for a period of ten (10) years from the issuance of a certificate of
occupancy for the proposed improvements. If, at any time prior to that date,
Owner decides to terminate its business operations on the Property, Owner shall
provide the Town with written notice of its decision no later than thirty (30) days
prior to the actual termination of operations. In that event, and within thirty (30)
days following written demand by the Town, Owner shall repay to the Town an
amount equal to ten percent (10%) of the aggregate amount of all rebates and
waivers of fees and/or taxes actually provided to Owner pursuant to this
Agreement, multiplied by the total number of calendar years remaining in said
10-year period.
c. Lien. In the event that Owner fails to repay any rebates, taxes and fees within
the time provided for herein, the Town shall have and may enforce a lien upon
the Property and all of the tangible personal property of or used by Owner on the
Property, for payment of all such sums owed, together with all costs of collection,
including reasonable attorney fees. Such lien shall have priority over other liens
or claims of whatever kind or nature, except any liens for the nonpayment of
property taxes and State sales and use taxes, and may be foreclosed in the
same manner as a mechanics lien under the laws of the State of Colorado. In
addition to said lien, the Town shall have all other rights and remedies granted to
it by state and local law for the collection of unpaid taxes and fees.
5. Miscellaneous.
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a. TABOR. Nothing herein shall be deemed a multiple-fiscal year obligation in
violation of the limitations set forth in Article X, Section 20 of the Colorado
Constitution. All sums payable hereunder by the Town in any future fiscal year
shall be subject to legal availability and annual appropriation.
b. Subsequent legislation, constitutional limits. The Town shall not be required
to reimburse Owner in the event that subsequent legislation adopted by the State
of Colorado makes such reimbursement unlawful, or in the event a court of
competent jurisdiction declares any portion of this Agreement or legislation
authorizing payment under this Agreement to invalid or unconstitutional.
c. Compliance with Title 31, Article 15, Part 9, C.R.S. In connection with
providing these incentives, the Town agrees to comply with any obligations
imposed pursuant to Section 31-15-903, including the notification requirements of
sub-section (4) thereof.
d. Assignment. Owner shall not assign or subcontract with respect to any of its
rights, benefits, obligations or duties under this Agreement except upon prior
written consent and approval of the Town. In the event of a sale of the Property,
the Town will approve an assignment to the new owner, provided the Owner is
not then in default hereunder and the new owner expressly assumes the Owner’s
obligations hereunder in writing.
e. Entire Agreement. This writing constitutes the entire agreement between the
parties with respect to its subject matter, and supersedes any prior written or oral
communication, negotiations, agreements, representations and understandings
between them with respect to its subject matter.
f. Modification. This Agreement may not be modified, enlarged or altered, except
in writing, signed by both parties.
g. No Third Party Beneficiaries. No person not a signatory hereto shall have any
right to seek enforcement or declaration of status under this Agreement. No third
party beneficiaries are intended.
h. Attorney fees, costs of litigation. In the event of litigation between the parties
arising out of this Agreement, and in which the Town shall prevail, in addition to
any judgment for damages or declaratory relief, Owner shall pay all costs
incurred by the Town, including attorney fees, expert witness fees and other
costs of suit.
i. Venue. This Agreement shall be governed by and construed in accordance with
the law of the State of Colorado. Venue for all purposes shall be deemed proper
in the District Court of Grand County, Colorado.
j. No Waiver. A waiver by either party of a breach of any of the provisions of this
Agreement shall not constitute a continuing waiver or a waiver of any subsequent
breach of the same or another provision of this Agreement.
k. Severability. If any part, term or provision of this Agreement is held by the
courts to be illegal or otherwise unenforceable, such illegality or unenforceability
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shall not affect the validity of any other part, term of provision, and the rights of
the parties shall be construed as if the part, term or provision in question was
never part of this Agreement.
l. Covenant Running with the Land. This Agreement shall be deemed to run
with the Property and, upon its execution by the parties, shall be recorded by the
Town with the Grand County Clerk and Recorder. Upon execution by the parties,
this Agreement shall be binding upon the parties, their respective successors and
permitted assigns.
In witness whereof, the parties have executed this Agreement as of the Effective Date.
TOWN: OWNER:
The Town of Fraser, Colorado,
a Colorado municipal corporation _______________________________
BY: ______________________________ _______________________________
Philip Vandernail, Mayor
ATTEST:
__________________________________
Antoinette McVeigh, Town Clerk
( S E A L )
STATE OF COLORADO )
) ss.
COUNTY OF GRAND )
The foregoing instrument was acknowledged before me on the ____ day of
_______________, 2017, by Philip Vandernail, as Mayor, and Antoinette McVeigh, as Town
Clerk, of The Town of Fraser, Colorado, a Colorado municipal corporation.
Witness my hand and official seal.
My Commission expires: _________
_________________________________
( S E A L ) Notary Public
Agreement For Certain Economic Inducements and Incentives
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STATE OF COLORADO )
) ss.
COUNTY OF GRAND )
The foregoing instrument was acknowledged before me on the ____ day of
_______________, 2017, by ______________ as ___________,, of
____________________________, a ___________corporation.
Witness my hand and official seal.
My Commission expires: _________
_________________________________
( S E A L ) Notary Public