9:00 a.m. Call to Order
9:00 a.m. - 9:30 a.m.
"State-wide and Regional Growth Trends and Projections"
9:30 a.m. - 10:00 a.m.
"Colorado Economic Trends and Projections"
10:00 a.m. - 11:30 a.m.
11:30 a.m. - 12:00 a.m.
12:00 p.m. Adjournment
STAFF SUMMARY OF
MEETING
INTERIM COMMITTEE ON DEVELOPMENT AND GROWTH
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09:03 AM
Senator Sullivant called the meeting to order. Members present were
Representatives Fairbank, Plant, Stengel, Witwer, Zimmerman, and
Gotlieb, and Senators Congrove, Hillman, and Phillips. Senator Reeves
was present after role call. Also present was Senator Pascoe. Staff present
were Geoff Johnson, Harry Zeid, and Julie George of Legislative Council
and Bob Lackner of Legislative Legal Services.
09:04 AM -- State Demographer
Jim Westcott, Director of the State Demography Section, addressed the
committee on growth trends in the United States and specifically in Colorado
(Attachment A). Mr. Westcott testified that the rate of growth will continue
at about 1 percent nationwide. In Colorado, since 1990, population growth
has been at about 2.2 percent, twice the national average. By the year
2000, Colorado's population will be at approximately 4.2 million. Overall,
the western states are growing the most quickly. After Arizona, Colorado
has the second greatest growth among western state.
Expansion of the high tech industry is one major factor contributing to
Colorado's growth. Also, the demand for second homes in resort areas has
resulted in an 8 percent growth rate increase in these areas. This is due
to the need for labor to build homes, as well as an increased need for
maintenance services to maintain the resort communities. An additional
cause of growth in Colorado is the state's popularity with retirees. There
is speculation that Colorado's population will increase due to retirees
from California and Texas moving to Colorado. High tech growth rates are
expected to continue at above the national average. This is largely due
to Colorado's competitive advantage for high tech industries. In addition,
the demand for second homes is expected to continue. Finally, Colorado
has a larger percentage of baby boomers than most states.
Overall, it is expected that Colorado's population will steadily continue
to grow, particularly due to inmigration to the state. The front range
is expected to continue to grow, particularly due to high tech industries
and the number of retirees in the area. On the western slope, touring and
second homes will continue to increase. In the eastern plains and the San
Luis Valley, it is expected that growth from the front range will spill
over and increase growth in these areas. Also, growth due to prisons and
retirees will be a factor in population growth in these areas.
Mr. Westcott believes Colorado's typical cycle of boom and bust is changing.
Colorado is now growing on a more gradual and steady basis. With the high
concentration of high tech industries in Colorado, Colorado's economy has
become more international and is therefore not as subject to change.
09:47 AM -- Briefing by Colorado Legislative Council Economist
Tom Dunn, Legislative Council Chief Economist, addressed the committee
on economic trends in Colorado (Attachment B). Mr. Dunn testified that
the state's overall growth rate is not that different from what it has
been over the last 50 years. However, the rate of growth of employment
has increased substantially. This is evident in the rate at which nonresidential
construction has increased in the late 1990s, although is has not surpassed
the rate of construction that occurred in the late 1970s and early 1980s.
Mr. Dunn testified that Colorado's growth is beginning to slow. In the
early 1990s, it was easy to recruit workers to relocate to Colorado for
jobs. In the late 1990's, the trend has changed. This is largely a result
of the difficulty in recruiting workers with the skills the high tech industry
needs coupled with the fact that Colorado's cost of living has increased
substantially, particularly for housing. Another factor is the increase
in costs for non-residential office space and for non-residential construction
costs. Mr. Dunn believes that residential construction is being overbuilt
and the rate of home construction will begin to slow.
Mr. Dunn testified that growth will continue around interstate highways,
particularly in the southeast corridor along I-25. Other areas with substantial
business growth are along US Highway 36 between Denver and Boulder, along
C-470 between I-25 and I-70, and on I-70 near Denver International Airport.
Business growth is not restricted to the Denver Metro Area; other areas
of the state are also seeing large business centers being built.
It is projected that the Colorado economy will continue to be healthy although
it will slow slightly. Tax incentives are a major mechanism for states
to encourage business growth. However, given the high costs of leasing
business space, the high cost of homes, and the competitiveness for high
tech professionals nationwide, it is becoming more difficult to attract
businesses and workers to Colorado.
10:21 AM -- Panel Discussion - Colorado Forum
Gail Klapper, Director of Colorado Forum, testified to the committee
on how Colorado Forum is addressing citizen concerns with growth and development
(Attachment C). Colorado Forum is a group of Colorado professionals working
to collectively address important public policy issues. Colorado Forum
has brought together professionals from all aspects of the growth issue
to attempt to reach concessus on how growth can be addressed statewide.
Geoie Writer, CEO of the Writer Corporation, addressed the committee on
the growth issues Colorado is facing. Mr. Writer, a developer, emphasized
the need for coordination of growth throughout the state. As a member of
Colorado Forum, he explained the position the Forum has taken on growth
management. The Forum would prefer to see growth addressed in small incremental
steps, with control remaining at the local level. They would also like
to see the legislature address growth through legislation, rather than
have a ballot initiative introduced by special interest groups.
George Beardsey, Inverness Properties, explained that the Forum would like
to see legislation introduced to address the problem. He explained that
the Forum would like every city, town and community to have comprehensive
plans to coordinate growth. The plans should be 20 year plans including
phases for implementation. The forum believes a public process should be
the way in which plans are developed. Plans need to be mandatory and address
transportation, housing, water, public education, open space, etc. There
needs to be a balance between new jobs and affordable housing. He suggested
that as long as plans for development are in compliance with the comprehensive
plan, the builder should be allowed to build. Urban service areas, where
high density growth is encouraged and can be supported through existing
infrastructure, should be a part of every plan.
10:58 AM
Jon Williams, President of the Home Builders Association of Metro Denver,
addressed the committee. The Home Builders Association of Metro Denver
is in support of the Forum's proposal. Mr. Williams stated that the different
sides of the growth issue seem to agree on what needs to be done, but disagree
over the scope of measures needed to be taken.
Rich McClintock, Executive Director of the Colorado Public Interest Research
Group (COPIRG), addressed the committee on sprawl. COPIRG is working with
Colorado Forum to ensure that sprawl is minimized through the use of urban
service areas and other related measures. COPIRG would like to see legislation
passed, but they are also talking to groups about developing a ballot initiative.
Bill Vidal, Executive Director of DRCOG, is supportive of the guiding principals
that Colorado Forum has developed and is continuing to develop. Mr. Vidal
suggested the state provide guidelines for coordinating growth, but to
allow local governments to control how the guidelines are implemented.
Bill Lamont, President of the Colorado Chapter of the American Planning
Association, has been working on growth management for the past four years.
The Colorado Chapter of the American Planning Association is in agreement
with the approach the Forum has been taking and endorses the guidelines
the Forum has developed. Mr. Lamont believes the state should not be directing
local governments on what the standards are for growth management, but
should mandate local governments to implement standards and work with neighboring
communities to plan for growth.
Michael Dowling, the Dowling Foundation, has worked closely with Colorado
Forum. He believes there is a problem with growth and development in Colorado,
and the legislature needs to take steps to preserve the beauty of the state.
He stated that in order to maintain the attractiveness of Colorado, planning
and collaborative management need to be initiated by the legislature.
Joe Blake, President and CEO of the Denver Metro Chamber of Commerce, believes
that growth management is the number one issue the legislature needs to
address. The status quo is no longer sufficient to keeping Colorado on
track with growth and development. He believes there needs to be legislation
enacted to coordinate growth management statewide.
11:30 AM
The question was asked regarding what would happen if the legislature
does not address the issue. Several responses were offered from the panel,
including the suggestion that communities will try and push the problem
off on their neighbors. There will be more restrictions on building permits
and "NIMBY" (not in my backyard) principals will begin to take
hold. As a result, it will become more difficult for communities to work
together. The Forum also believes voluntary planning will continue, but
voluntary planning is not as efficient as what the state may need. In addition,
the fiscal costs of uncontrolled growth will be devastating to the state,
as will be the loss of open space. Another result of uncontrolled growth
will be a lack of sufficient transportation as more and more sprawl occurs.
In addition, as the metro area grows and becomes more congested, it becomes
less attractive to the business industry. Overall, the panel believes that
planning done on a voluntary basis is no longer sufficient. It was suggested
that one way to combat the battle over sales tax might be for the tax to
be distributed based on population, not to the municipality where the business
is located.
12:01 PM -- Metro Mayor's Caucus
Paul Tauer, Mayor of Aurora and Leona Stoecker, Mayor of Longmont,
spoke to the committee. Mayor Tauer spoke on the issues the Mayor's Caucus
has discussed. Mayor Tauer believes the top three challenges for the state
are new development, transportation and open space (Attachment D). Development
is being dictated by zoning laws passed in the 1980s and earlier; this
zoning is no longer sufficient. Transportation infrastructure is crumbling,
yet there is not enough money to update our transportation system in order
to serve the numbers of people using the infrastructure. Citizens want
open space, but what many do not realize is that the open fields they see
in their areas are privately owned and are zoned for development.
Mayor Tauer continued with comments on Metro Vision 2020. He stated that
over 40 local governments have adopted voluntary plans and are working
together to plan for the future. Cities are reinvesting, developing and
redeveloping urban areas. The next steps for Metro Vision 2020 continue
to focus on open space, transportation and development. Cities are focusing
on mixed use developments and building around mass transit lines in order
to decrease traffic congestion. It is the opinion of the Metro Mayor's
Caucus that local control is what is making Metro Vision 2020 successful.
The Caucus believes the state needs to provide incentives to better ensure
the success of Metro Vision 2020.
Mayor Tauer believes the state indirectly encourages sprawl through some
of it's decisions and policies. These policies are what Mayor Tauer believes
the state should look at and possibly change. He concluded that the state
should provide incentives, but not mandates.
Mayor Stoecker addressed the committee on what Longmont has been doing
to manage growth and development. Cooperation and a common vision amongst
counties and municipalities are essential for successful planning. Mayor
Stoecker believes Metro Vision 2020 is working and is a good basis for
smart growth in the metro area.
Mayor Stoeker noted that Metro Vision 2020 does not have a dispute resolution
process and this is one area where the state might pass legislation to
strengthen Metro Vision 2020 and regional planning overall.
12:34 PM
Senator Sullivant discussed the upcoming meeting dates and adjourned
the meeting.