A plan for commercial development near Denver International Airport, designed to end years of contentious dispute over a 27-year-old land agreement, could potentially pump millions into Colorado’s economy.
And it’s now in the hands of voters.
Measure 1A, listed on Denver and Adams County ballots, would amend the agreement to allow for 1,500 acres of new business development around DIA.
Voters will decide if tax revenues from the development pilot program will be split between Denver and Adams counties — Adams County will share tax revenue with cities in that county — and if DIA will keep any money from land lease agreements.
This pilot program would be overseen by an appointed governmental board that must be in place by Dec. 31, 2016, and it will involve no raised or new taxes.
The agreement, if it passes in both counties, will go into effect Jan. 1, 2016, at which time the $10 million payment from Denver to Adams County would be made.
Sounds simple, right? Not so fast.
Measure 1A is the — and sometimes contentious mediation — between several vested parties.
As part of this agreement, Denver City Council from the city’s General Fund.
It all started in 2012, when Mayor Michael Hancock announced plans to develop a commerce hub near DIA he calls “Airport City.”
Adams County protested, saying the mayor’s plans violate the original 1988 annexation agreement granting to Denver, from Adams County, the land on which to build DIA.
That intergovernmental agreement, or IGA, stipulated any development around DIA on the land must be limited to airport-related businesses only — think car rental lots, shuttle parking and cargo — so that Adams County would have the advantage to lure businesses, and their associated tax dollars, to its turf.
Big economic driver
Potential tax proceeds from commercial growth at DIA are estimated at $160 million to $270 million over three decades, Cary Kennedy, Denver’s deputy mayor and chief financial officer, said in June.
Measure 1A proponents hold up DIA’s role as the metro area’s biggest economic driver, which adds about $26 billion a year to the local economy.
“By voting ‘Yes’ on 1A for DIA, we have the opportunity to build on the enormous economic strength of the airport and create 12,000 new jobs,” said the campaign spokeswoman, M.E. Smith. “Without raising taxes, Denver and Adams County will share the financial benefits while growing Colorado’s economy.”
The measure has also garnered the support of Unite Here Local 23, the union that represents many DIA workers. Unite Here released a video Oct. 15 that touts how the measure will create construction, service and other jobs.
But others say that while jobs and development are good, this agreement goes about it the wrong way.
“We could still have the revenue-share agreement, but let the private sector develop out there,” said the libertarian-leaning Independence Institute’s Mike Krause, who directs Local Colorado Project. “We see this as contrary to free enterprise and free markets. We would love to see some development out there, but not like this.”
Krause, who calls the lump payment from Denver “a $10 million bribe to Adams County,” suggests a better course might be a ballot measure to relax restrictions for development on the land.
He’s also concerned that personal politics of the board that oversees development could disproportionately influence what businesses are allowed into Airport City, citing the as an example.
“We see this as exclusionary. They’re going to say certain businesses aren’t welcome and those that compete with government-sponsored enterprises, like Anschutz (medical campus), are also not allowed,” he said. “Everyone talks about it being free enterprise at DIA but it’s government-run enterprise where a small group of appointees will run this development.”
This is simply not true, said Smith, and discrimination will not be allowed: “The city of Denver and DIA have very specific anti-discrimination laws that require a level playing field, transparency and accountability.”
Widespread support
Future development could expand beyond the initial 1,500 acres if Adams County, Denver and any other neighboring cities agree on the terms, according to the 1A for DIA website.
Complicating the matter is the Oct. 15 decision by the Colorado Economic Development Commission to deny Denver’s request to include DIA in its enterprise zone.
That decision also removed the Gaylord Rockies Hotel from Adams County’s enterprise zone.
The denial could make development outside the airport’s boundaries more attractive for companies looking for incentives, as businesses in enterprise zones receive certain perks, including credits for job training, new hires, research and development and a 3 percent tax credit on new equipment.
The 1A measure is endorsed by Hancock, Gov. John Hickenlooper, all five Adams County commissioners and all 13 current Denver City Council members, Smith says.
Laura Keeney: 303-954-1337, lkeeney@denverpost.com or @LauraKeeney
