(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.
(b) 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.
(c) The local government and the third-party analyst retained pursuant to paragraph (i) of subsection (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:
(a) Maps of the proposed project area showing both current conditions and a conceptual rendering of the proposed project in its anticipated built condition;
(b) A map showing the proposed boundaries of the proposed regional tourism zone;
(c) A narrative description of the proposed project, including the location and estimated overall cost, estimated eligible costs, anticipated scope and phasing of eligible improvements, and the infrastructure existing or needed in connection with the project;
(d) A discussion of each of the application criteria and how the project will meet each of the 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 22-54-106, if the county revitalization authority or 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;
(e) A description of the proposed financing entity, a general description of the financing entity'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.
(f) If it is anticipated that the financing entity will enter into contractual arrangements with 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;
(g) If it is anticipated that the eligible improvements will be constructed in phases or that financing of the eligible costs will be accomplished in phases, a description of the contemplated phases and anticipated timing of the phases;
(h) The proposed financing term, the total cumulative dollar amount of revenue that can be 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.
(i) Along with the economic analysis submitted with the application, a report by a third-party 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:
(I) Assess the assumptions used in the application to estimate net new tourism revenues to Colorado;
(II) Calculate the total anticipated sales tax increment revenue in the proposed regional tourism zone;
(III) Calculate the amount and percentage of the total regional tourism zone sales tax increment revenue that each county and municipality that is a party to a multi-party application is eligible to receive; and
(IV) 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:
(a) The project is of an extraordinary and unique nature and is reasonably anticipated to contribute significantly to economic development and tourism in the state and the communities where the project is located;
(b) The project is reasonably anticipated to result in a substantial increase in out-of-state tourism;
(c) A significant portion of the sales tax revenue generated by the project is reasonably anticipated 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.
(d) The local government has provided reliable economic data demonstrating that, in the absence 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. L. 2024: (2)(d) amended, (HB 24-1172), ch. 387, p. 2679, � 6, effective August 7.
24-46-305. Regional tourism project approval - director - commission - review. (1) Upon receipt of a local government's application for a regional tourism project, the director or the director's designee shall review the application and shall make an initial determination regarding whether the application has met the criteria for a regional tourism project specified in section 24-46-304.
(2) (a) Upon review of each application for completeness, the director shall forward the application to any county or counties where the regional tourism project will be implemented and to municipalities adjacent to where the regional tourism project will be implemented for an opportunity to review the application and submit comments to the commission. The director shall provide such counties and municipalities with the application at least thirty days prior to the public hearing held pursuant to subsection (3) of this section. The director shall also forward the application to the commission with a recommendation that the commission approve or deny the application or approve the application with conditions; except that the commission shall not approve any project that, if approved, would likely create a state sales tax revenue dedication of more than fifty million dollars to all regional tourism projects in any given year.
(b) The commission shall not approve more than two initial projects pursuant to this subsection (2).
(c) On or after May 31, 2014, but prior to January 1, 2016, the commission may approve two new regional tourism projects.
(3) The commission shall hold a public hearing, subject to the provisions of the Colorado Sunshine Act of 1972, article 6 of this title, to review and consider the application. After the hearing has been held, the commission shall review each application and give consideration to the director's recommendations. The commission shall take action on the application within a reasonable time after submission. If the commission approves the application, it shall adopt a resolution specifying the following:
(a) The local government that has been approved to undertake a regional tourism project;
(b) The area of the regional tourism zone;
(c) Whether the commission has authorized the creation of a regional tourism authority; and
(d) The total cumulative dollar amount and percentage of the state sales tax increment revenue that will be dedicated to the regional tourism project. Such percentage shall be set at a value that in the best estimation of the commission will result in only the net new revenue likely created by the project and related development being dedicated to the financing entity and shall exclude any sales tax revenue the state would likely have received without the project and development. The total cumulative dollar amount and percentage of the sales tax increment revenue that can be dedicated to the regional tourism project shall not exceed the third-party analyst's calculation of the total cumulative dollar amount and percentage of sales tax increment revenue that can be dedicated to the regional tourism project, as reported pursuant to section 24-46-304 (2)(i), by more than fifty percent; except that the commission may determine a total cumulative dollar amount and percentage of the sales tax increment revenue that can be dedicated to the regional tourism project that exceeds the third-party analyst's calculations by more than fifty percent by a unanimous vote of all members of the commission.
(4) As part of the approval of a regional tourism project, the commission shall authorize the department of revenue to collect the percentage of the state sales tax increment revenue set by the commission pursuant to paragraph (d) of subsection (3) of this section on behalf of the approved financing entity and shall authorize the financing entity to receive and utilize the state sales tax increment revenue for the duration of the financing term. In implementing such authorization, the department of revenue shall remit such revenue to the financing entity on a monthly basis promptly after collection. The commission shall authorize the utilization of the state sales tax increment revenue by the financing entity pursuant to this part 3 and any conditions of approval imposed by the commission and incorporated in writing into the commission's resolution of approval.
(4.5) The total amount of state sales tax increment revenue dedicated to the regional tourism project for the entire duration of the project shall not exceed the total cumulative dollar amount specified by the commission pursuant to paragraph (d) of subsection (3) of this section. The department of revenue shall track the annual and cumulative state sales tax increment revenue remitted to the financing entity for the project and shall notify the commission when cumulative payments approach the limits set by the commission for the commission's concurrence regarding the dollar limits. After the department of revenue has cumulatively remitted such total cumulative dollar amount to the financing entity pursuant to subsection (4) of this section, the department of revenue shall not remit any additional sales tax increment revenue from the state to the financing entity, even if the approved financing term is not completed. The department of revenue shall notify the commission if it is no longer remitting sales tax increment revenue to the financing entity because the financing entity has reached its total cumulative dollar amount of sales tax increment revenue.
(5) Following the commission's approval of an application, the commission shall promptly transmit written notice and a copy of the approval to the executive director of the department of revenue. Such transmittal shall include any information deemed necessary by the department of revenue to fulfill its obligations pursuant to this part 3.
Source: L. 2009: Entire part added, (SB 09-173), ch. 434, p. 2408, � 1, effective June 4. L. 2011: (2) amended, (HB 11-1311), ch. 309, p. 1511, � 1, effective June 10. L. 2014: (2)(b) and (3)(d) amended and (2)(c) and (4.5) added, (HB 14-1350), ch. 301, p. 1258, � 4, effective May 31.
24-46-306. Regional tourism authority - board - creation - powers and duties. (1) The commission shall not deny a request to authorize the creation of a regional tourism authority if the commission otherwise approves an application for a regional tourism project that includes a request for the formation of a regional tourism authority.
(2) A regional tourism authority, if authorized, shall be governed by a board consisting of the following members:
(a) If the applicant is a single local governmental entity, two members appointed by the commission who are owners of commercial property within the regional tourism zone and three members appointed by the local governmental entity. Of the members appointed by the local governmental entity, at least one member shall be a locally elected official and at least one member shall represent the community at large.
(b) If the applicant is two local governmental entities, three members appointed by the commission who are owners of commercial property within the regional tourism zone and two members appointed by each of the local governmental applicants. Of the members appointed by the local governmental applicants, at least one member shall be an elected official of the local government and at least one member shall represent the community at large.
(c) Except as otherwise provided in paragraph (d) of this subsection (2), if the applicant is more than two local governmental entities, a single member who is an elected official and a single member who represents the community at large appointed by each local governmental entity and one less than an equal number of commercial property owners within the tourism zone appointed by the commission.
(d) If the applicant is more than two local governmental entities that consist of more than two counties, a single member who is an elected official and a single member who represents the county at large appointed by each county governmental entity and one less than an equal number of commercial property owners within the regional tourism zone who are appointed by the commission.
(3) Unless limited by the commission's conditions of approval, each authority shall have all of the powers necessary or convenient to carry out and effect the purposes and provisions of this part 3, including but not limited to the following powers:
(a) Perpetual existence and succession;
(b) To adopt, have, and use a corporate seal;
(c) To sue and be sued and to be a party to suits, actions, and proceedings;
(d) To undertake regional tourism projects;
(e) To enter into contracts and agreements affecting the affairs of the regional tourism authority as necessary to complete a regional tourism project;
(f) To receive, invest, pledge, spend, and otherwise utilize and expend state sales tax increment revenue in accordance with an approved regional tourism project;
(g) To assign and pledge to any county revitalization authority, metropolitan district, or urban renewal authority having all or any portion of the regional tourism zone within its boundaries or service area the authority's right to receive and utilize state sales tax increment revenue to support bonds or other financing instruments issued or entered into by the metropolitan district or urban renewal authority for eligible costs or to acquire eligible improvements, including but not limited to loans or funding and reimbursement agreements with developers involved in the regional tourism project or other third parties;
(h) To borrow money and incur indebtedness and evidence the same by certificates and note and debentures, to issue bonds, and to invest any moneys of the authority not required for immediate disbursement in property or in securities in which public bodies may legally invest funds subject to their control pursuant to part 6 of article 75 of this title;
(i) To deposit any moneys not required for immediate disbursement in any depository authorized in section 24-75-603 and, for the purpose of making such deposits, to appoint by written resolution one or more persons to act as custodians of the moneys of the authority, which person or persons shall give surety bonds in the amounts and form and for the purposes as the authority requires;
(j) To make such appropriations and expenditures of its funds and to set up, establish, and maintain such general, separate, or special funds and bank accounts or other accounts as it deems necessary or convenient to carry out and effect the purposes and provisions of this part 3;
(k) To accept on behalf of the regional tourism authority real or personal property for the use of the authority and to accept gifts and conveyances made to the authority upon such terms or conditions as the board of the authority may approve;
(l) To adopt, amend, and enforce bylaws and rules that are not in conflict with the constitution and laws of the state for carrying out the business, objects, and affairs of the authority;
(m) To have and exercise all rights and powers necessary or incidental to or implied from the specific powers granted to the regional tourism authority by this part 3. Such specific powers shall not be considered as a limitation upon any power necessary or appropriate to carry out the purposes and intent of this part 3; and
(n) To authorize the use of electronic records or signatures and to adopt rules, standards, policies, and procedures for use of electronic records or signatures pursuant to article 71.3 of this title.
(4) A regional tourism authority shall not have the power of eminent domain and shall not have the power to impose or levy any sales tax, use tax, property tax, or any other tax.
(5) The board of directors of a regional tourism authority shall be subject to the provisions of the Colorado Open Records Act, article 72 of this title, and the Colorado Sunshine Act of 1972, article 6 of this title.
Source: L. 2009: Entire part added, (SB 09-173), ch. 434, p. 2409, � 1, effective June 4. L. 2011: (2)(c) amended and (2)(d) added, (HB 11-1006), ch. 4, p. 7, � 1, effective March 1. L. 2024: (3)(g) amended, (HB 24-1172), ch. 387, p. 2679, � 7, effective August 7.