Title
A Resolution of the City Council of Colorado Springs, Colorado Approving the Proposed 2025 Operating Plan and Budget for the Powers & Woodmen Commercial Business Improvement District
Presenter:
Allison Stocker AICP, Planner II, Planning Department
Kevin Walker, Interim Director, Planning Department
Body
Summary:
The Powers & Woodmen Commercial Business Improvement District (BID) is a legal entity separate from the City of Colorado Springs. However, as required by State statute, it is necessary for City Council to review and approve the proposed 2025 Operating Plan and Budget for the BID.
In 2024, the District increased its mill levy from 1.000 mill to 1.039 mills for operations and from 25.000 mills to 25.985 mills for Debt Service. For 2025, the District anticipates imposing a mill levy of 1.046 mills for operations and maintenance, and a debt service mill levy of 17.00 mills. Other than the mill levy change the Operating Plan and Budget for this BID includes no significant anticipated activities or changes other than District administration and payment of outstanding bonds.
Background:
The boundaries of this development-specific BID were established pursuant to an election in 2003. The District does not anticipate any boundary changes in 2025, however, by State law, any future district inclusions or exclusions must be approved by City Council. This BID has an elected board, comprised of individuals associated with the Nor’wood Development Group. The BID is authorized to provide the acquisition of improvements, construction of improvements, operation and maintenance of parking facilities, roadways, lighting, driveways, public utilities, and landscaping. No new commercial development is proposed in 2025.
This Operating Plan and Budget is provided in a format consistent with the standard template approved by Council in August 2022 for these documents.
Previous Council Action:
City Council approved formation of this BID in 2004 (Ordinance No. 04-52) and has approved the Operating Plan and Budget annually since its formation. City Council also approved the BID’s 2010 bond issuance (see below). In 2013, City Council excluded a property from this District based on its conversion to multifamily uses (Ordinance No. 13-15). In March of 2022, City Council approved the exclusion of a 12.234-acre parcel from the boundaries of the District based on its conversion to multifamily use (Ordinance No. 22-15). State statute does not allow BIDs to tax non-commercial property. In 2022 Council approved the District’s 2023 Operating Plan which included an Exhibit E that described a summary of public improvements supporting City Council authorization to issue debt in conformance with 7-100 of the City Charter (Resolution No. 169-22), as a result the District issued its Series 2022 Limited Tax General Obligation Bond on November 17, 2022 in the amount of $2,519,000 with an interest rate of 6.5%.
This item was introduced in a City Council Work Session on October 7, 2024.
Financial Implications:
The BID issued $1,850,000 in Limited Tax General Obligation Bonds, Series 2010 for public improvements. These bonds have an interest rate of 8.5% and are subject to optional redemption beginning December 1, 2011. In 2022 the District issued its Series 2022 Limited Tax General Obligation Bond in the amount of $2,519,000 with an interest rate of 6.5%. The Series 2022 Bond will mature on December 1, 2025, but is subject to prior redemption. As described in the 2025 Operating Plan, the District will annually review the interest rates on its bonds regarding market interest rate and evaluate possibilities to refund such bonds to the extent allowed, pursuant to the bond documents. The proposed mill levy for the BID in 2025 is 18.046 mills (1.046 mills for general expenses and 17.00 mills for debt service). This represents an increase from 2024 which was 26.000 mills (1.039 mill for general expenses and 25.985 mills for debt service). This BID does not have an associated public improvement fee (PIF) at this time.
It is anticipated that the District will have completely repaid all developer advances by the end of 2024. There are no anticipated developer advances for 2025.
Fund balances and projected revenues are adequate to meet financial obligations. As a separate legal entity, the financial activities of the BID are separate from those of the City. Any financial obligations of this BID are specific to the property included within its boundaries and do not constitute an obligation of the City.
City Council Appointed Board/Commission/Committee Recommendation:
N/A
Stakeholder Process:
N/A
Alternatives:
N/A
Recommended Action
Proposed Motion:
Move to approve the Resolution approving the proposed 2025 Operating Plan and Budget for the Powers & Woodmen Commercial Business Improvement District.