CO SB285

Requires downtown development authorities to appoint board directors representing counties, school districts, and special districts whose property taxes are subject to allocation under any development plan, with directors appointed by agreement of the respective boards.

Mandates a 120-day negotiation period between municipalities, authorities, and affected taxing entities to reach agreements on sharing incremental property tax revenues before any tax allocation plan can be approved.

Requires mandatory mediation if parties fail to reach agreement within 120 days, with mediator findings issued within 90 days and costs split equally among parties; mediators must be attorneys licensed for 10+ years with land use and administrative law experience.

Specifies that incremental property tax revenues allocated must be from specifically designated public bodies and cannot be paid into the authority's special fund unless all negotiation and mediation requirements are satisfied.

Provides that funds remaining in the special fund from non-municipal property tax increments must be repaid to each taxing body based on their pro rata share of prior year property tax increment when bonds and indebtedness are paid off.