Downtown Development Authority (DDA)

 

Membership
The Nederland Downtown Development Authority (DDA) consists of a seven-member Board of Directors, appointed by the Board of Trustees.  Members serve for a term of four years.  By statute, the DDA Board must be comprised of a majority of residents, land owners or business lessees from within the boundaries of the DDA and at least one must be a member of the Board of Trustees.  The DDA has the authority to study, prioritize and propose development projects which must then be reviewed by the Planning Commission, PROSAB (when applicable) and approved by the Board of Trustees.

The Nederland Downtown Development Authority consists of:

Board Secretary: Cindy Downing

Meetings
The Nederland Downtown Development Authority meets the second Tuesday of each month from 8:00 – 10:00 a.m. at the Pioneer Inn, 15 East 1st St.  The meetings are planned around the schedules of DDA members, all of whom are working business people.  The DDA values citizen input and follows the Board of Trustees Working Agreements for meetings.  Input is welcome at regular board meetings, or via phone or email.

Creation of the DDA
The DDA was created in 2005 by a majority of voters within the DDA boundaries to promote the development and improve the infrastructure of downtown Nederland.  Projects are established and prioritized that meet the needs of commercial property owners, businesses, and the community at large.  Ordinance 599 recognized the need for a DDA and put the question to the voters.

  599 Establishing DDA (1.0 MiB, 369 hits)

In Colorado, DDAs are created and empowered through State statute.  Typical reasons for the creation of a DDA in Colorado include improvement of public facilities, streets, sidewalks curbs and gutters, lighting, and landscape and general beautification as well as mitigation of blight.  Colorado law provides for the creation of a downtown development authority to halt or prevent deterioration of property values or structures in central business districts, or to halt or prevent the growth of blighted areas within these business districts.  The DDA also is granted the power to develop or redevelop these areas.  Other municipalities that have formed DDAs include Mt. Crested Butte, Grand Junction, Golden, Denver, Greeley, Fort Collins, and Woodland Park.

Funding for the DDA
The DDA is funded through two methods: a mill levy for operating purposes and Tax Increment Financing. The mill levy is a self-imposed tax, approved by voters within the DDA district, which is voted on every seven years. Tax Increment Financing (TIF) is a unique tool, allowed by state law, for communities to capture a portion of property tax from a designated area so that the money can be reinvested in that area.  The Nederland DDA is funded solely from property tax on properties within the DDA’s boundaries.  This ensures that the dollars spent in this area will be used to improve development and infrastructure for the benefit of the public. Projects undertaken by the DDA must also be approved by the Nederland Board of Trustees, but the funds come from only the DDA property tax payers (not all Nederland residents). TIF is not an additional tax, rather, it is the difference or increment of tax received in the defined area from the day the DDA is approved to the day it ends 25 years later. All the revenue generated by the redevelopment within an urban renewal district reverts to the normal taxing entities when the urban renewal district sunsets at the close of 25 years.

TIF has been in effect in the United States for approximately 50 years. Every state except Arizona uses some form of TIF to help municipalities and other public bodies finance redevelopment. TIF was authorized and created by the legislature in Colorado in 1975 and approved by the Colorado Supreme Court in 1980.

Projects