The Renaissance of Lower Downtown should be celebrated along with the politicians, civic leaders and public policies that helped urban revitalization occur at an incredible pace in a once nearly abandoned part of the city.
The Denver Postap Jon Murray recently over the last three decades: a population rising from less than 200 to 2,410 residents, and a growth in assessed value from $305 million in 1994 to $3.8 billion in 2016.
Thatap a tide of private investment in a community once suffering blight and abandonment worthy of celebration.
But aside from the work of Denver’s mayors and the substantial private investments made by pioneering developers, there is another story to be told about the resurrection: hidden taxpayer investment.
What occurred in LoDo and other parts of Denver was not free, and much of the public investment was funneled through and directed by special taxing districts that often escape scrutiny and have their own hefty operation costs as quasi-governmental agencies.
In 2016, property taxes generated $155 million for tax increment financing, special and metropolitan districts. Thatap substantial, considering that the City and County of Denver’s total property tax revenue was $445.8 million that same year.
The totals also don’t include business improvement districts or general improvement districts like the Downtown Denver Business Improvement District which assesses downtown commercial property owners a tax per square foot. In 2015 the quasi-governmental agency had an operating budget of $6.8 million.
All of the taxes in these districts were established not in real elections with registered voters participating throughout the city, but in special elections where the voters primarily consisted of the developers who would eventually profit directly or indirectly from public investments close to property they owned.
Supporters of these districts would have you believe all that money being spent wouldn’t exist without the creation of these districts and that it is the property owners who pay, not the public.
That is true to some extent. But surely now that the tide has turned, now that property values are booming, the rate of creation for these districts will slow?
Don’t count on it.
The Denver City Council’s business committee recently — and this one would be a citywide district but only include hotel property. Hoteliers would vote to approve a 1 percent lodging tax to help raise $8.7 million a year, of which $4 million would be for Visit Denver marketing, $3.8 million to help make principle and interest payments on a proposed expansion of the Colorado Convention Center, and $900,000 to fund capital improvements of the building.
City Council President Albus Brooks called it an “innovative structure.”
We consider it into districts that serve special interests, have their own expensive operating costs and lack oversight.
Itap hard to look at the transformation that has occurred in LoDo and not to feel gratitude for those who were willing to establish the first of these districts to get the ball rolling. But itap also time that leaders in our city take a hard look at the insatiable push for these districts and consider whether there’s a better way.
As the city gets ready to ask voters to approve as much as , itap fair to ask whether projects like the expansion of the convention center should be competing with other public needs for finite tax dollars rather than being granted their own taxing authority and revenue streams.
To send a letter to the editor about this article, submit or check out our for how to submit by email or mail.
