The city of Longmont is getting a surprise $900,000 refund from the Denver Broncos.
No, the money is not compensation for poor play.
Rather it’s part of the profits to be shared with cities and counties when the Broncos were sold in June for $4.65 billion.
“Go, Broncos,” Mayor Joan Peck said recently when the city council was informed of the mini-windfall by Longmont CFO Jim Golden.
The money — $980,481.19 — does come with a string attached. It all has to be spent on youth activity programs which will be designated by the city. The Metropolitan Football Stadium District is disbursing the funds and will check back in a year to see how Longmont’s youth programs have benefitted from the money, according to a letter from the MFSD to the city.
City staff will bring back some ideas on how to use the money to the city council at a later date, city spokesman Rigo Leal said via email. “Nothing has been identified as of yet,” Leal said.
In all, $41,037,951 is being refunded to communities in the metro area. It is generated from the lease and management agreement between PDB Sports, LTD and the stadium district which called for Broncos owner Pat Bowlen to share in the profits of the Broncos sale, according to the letter.
Mile High Stadium (Empower Field) is owned by the MFSD, which comprises seven metro area counties including Broomfield and Boulder.
Taxpayers in those counties, as well as the cities and municipalities in those counties, funded 75% of the stadium cost — $270 million — through a one-tenth of one-percent sales tax, according to Channel 9 News.
That tax of one penny on every $10 began in January 2001 and ended at the end of 2011, Channel 9 News states.
The amount each municipality, city and county will get is based on the breakdown of how much of the district tax was collected for each locale, the news station states.
Longmont is one of 40 towns and cities within those counties that will get money.
“We have received numerous media inquiries regarding which Youth Activities programs will benefit from these proceeds and we look forward to hearing about all these great opportunities,” the MFSD letter states.
