What is urban renewal? Urban renewal is a redevelopment process used to assist in the revitalization of aging, deteriorating and blighted parts of the city. It requires a partnership between the city, private developers and the surrounding community.

What is the urban renewal process? There are several steps involved in the establishment of an urban renewal area, including: Preparation of an independent blight study Preparation of a market study to help determine "highest and best use" of targeted sites within the urban renewal area boundaries Exploration of project development options Neighborhood input and involvement This information is presented to the Planning Commission, the City Council and the Aurora Urban Renewal Authority (AURA) for approval. The studies and a detailed urban renewal plan provide a framework for undertaking redevelopment of a designated urban renewal area. The city does not actually conduct the redevelopment activities. Instead, the city works to find the right private developer for a specific project, either by issuing a formal request for proposals or by providing assistance to an existing owner or developer who wants to redevelop a site. The city brings all the necessary parties to the table to ensure each project gets done in a way that meets the needs of the community and the objectives of the urban renewal plan.

How does the city determine if an area is blighted? State law requires 11 factors be used to determine blight. These factors include unsanitary or unsafe conditions, deteriorated or deteriorating structures or site, the existence of conditions that endanger life or property, and environmental contamination. In most circumstances, four of 11 blight factors must be found to exist in order to designate an area as blighted.

Why is urban renewal necessary? The designation of the city’s urban renewal areas emerged from the recognition that the goals for the redevelopment of the areas faced immense obstacles and would not be achievable without these partnerships. The physical conditions of the areas, the configuration of land uses and ownerships and the prevalence of blight in the areas presented formidable barriers and deterred private developers from undertaking redevelopment projects. Although every reasonable opportunity was provided for private development to occur, all three areas experienced a lack of investment for decades. Many of the existing buildings were poorly maintained, deteriorating, and contained asbestos and other environmental contamination. The likelihood of continued deterioration was high. It is easier and less expensive for a developer to build on undeveloped land than to undertake the challenges of redeveloping in urban renewal areas. Because of these challenges, the city had to get involved through the urban renewal process in order to accomplish the revitalization of these deteriorating areas of the community.

What tools are available for urban renewal projects? There are two primary tools available through the State of Colorado’s urban renewal laws to assist in the redevelopment of urban renewal areas: Tax Increment Financing Tax Increment Financing (TIF) is a tool that allows the leveraging of sales and property taxes to help finance the construction of necessary public improvements such as roads, water lines, sewer lines and drainage facilities, which are all essential for redevelopment. Assembly of land The assembly of land is the acquisition of property at fair market value through the use of eminent domain. The assembly of land allows the developer to have a contiguous piece of property for redevelopment. Without the ability to assemble land the revitalization of deteriorated areas would not occur. The City of Aurora makes every effort to utilize all other tools and options for redevelopment before using eminent domain. Without the use of these tools, the city will continue to grow and prosper to the east and south, while the inner urban areas will deteriorate because of an inability to make redevelopment happen.

Are there other options besides urban renewal to encourage redevelopment? Prior to the designation of each urban renewal area, the City of Aurora implemented a number of initiatives to encourage clean up and redevelopment of these deteriorating areas, including new zoning regulations, expansion of law enforcement activities and new landscaping and design guidelines. While these efforts have helped address some of the problems, little new development has occurred. Further complicating matters, these areas generally consist of many small parcels with different owners. Most of these parcels do not meet the current size requirements for new development projects. It is crucial to be able to put together larger parcels for successful redevelopment to occur. The city’s involvement will be useful in the process of assembling these parcels.

Why not just leave the areas alone? The blight conditions in the urban renewal areas discourage redevelopment and the improvement of surrounding neighborhoods. These conditions also create safety and health concerns that will not improve on their own. The designation of urban renewal areas helps spur new development and investment in areas needing economic stimulation in order to better serve the community, attract complimentary businesses to the area and draw more customers to existing businesses. This may not occur without the urban renewal designation and tools available to assist in redevelopment.

What happens to businesses and residents located within an urban renewal area? The goal of the urban renewal process is to revitalize an area without creating a significant negative impact on existing businesses and residents. Many sites within the urban renewal areas may be redeveloped by the private sector, meaning that property owners will negotiate directly with private developers for the sale of their properties. If a private developer requires the assistance of the city to assemble property that required condemnation to be utilized, a Relocation Plan will be followed.

What is a relocation plan? When the city uses it’s power of eminent domain, the property owners and tenants need to be treated fairly and justly compensated for property and relocation costs. They are part of a community that has been disturbed for the greater good, and needs to be treated well in that process. Aurora uses the Federal Relocation Act and newly passed HB-1203 legislation as a guideline to compensate dislocated owners and tenants, and tries to create better situations for those who are displaced.

Will property taxes go up because of redevelopment? Redevelopment typically does not directly affect property taxes, although there may be an indirect effect if property values eventually increase in a larger area because of the redevelopment.

What are the advantages, as a citizen, of being included in an urban renewal? There are many advantages to being in an urban redevelopment area. These areas receive focused attention and financial investment to reduce or eliminate physical, social, environmental or economic deterioration; create new, permanent sources of revenue; may create jobs; revitalize the business climate; and rehabilitate and add to the housing stock. In addition, it gives residents the opportunity to become involved in determining how an area is redeveloped.

How can I find out more about urban renewal? To learn more about the city’s urban renewal efforts, please contact the Urban Renewal Division at 303-326-8804 or e-mail urbanrenewal@auroragov.org.

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