Title
A Resolution of the City Council of Colorado Springs, Colorado Approving the Proposed 2026 Operating Plan and Budget for the MW Retail Business Improvement District.
Related Files: N/A
Council District #6
Presenter:
Allison Stocker, Senior Planner, City Planning Department
Kevin Walker, Planning Director, City Planning Department
Body
Summary:
The MW Retail 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 2026 Operating Plan and Budget for the BID.
The District has not previously imposed debt service or operations and maintenance mill levies and does not intend to start in 2026. Although no mill levies have yet been imposed the District has issued debt to continue its public improvements in the developing District boundaries and bring in revenue through developer advances and Public Improvement Fees (PIF). These improvements are expected to continue in 2026.
Background:
This District’s initial boundaries were established when this BID was created in 2019. This BID is located within the overlying existing Woodmen Heights Metropolitan District No. 3 and includes approximately 18.6 acres. The District is generally located southeast of the intersection of Marksheffel Road and Woodmen Road. The purpose of the District is for financing, acquisition, construction, completion, installation, replacement, and/or operation and maintenance of all of the services and public improvements allowed under Colorado law for Business Improvement Districts.
It is anticipated that the District will continue to be engaged in development activities in 2026. These improvements were further contemplated and enabled by the District recent amendment to the 2025 Operating Plan (Resolution No. 99-25) which corrected the financial plan to add additional capacity for a future debt issuance. With the District’s assessed value increased approximately $1 million dollars between 2025 and 2026, the District has additional capacity to finance the planned improvements as the District fills in with commercial business owners.
Aside from ongoing development activity, the District does not intend to raise the maximum authorized debt, change the District boundaries, or make any other major changes. The District, while rapidly developing, is still in the early stages of its life cycle, and its main objective is to support growth that will later help raise funds and bring in revenue to pay off existing debts.
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 originally approved formation of this BID in 2019 (Ordinance No. 19-62) and has approved the BID Operating Plan and Budget annually since its formation. In 2022, City Council approved an ordinance to exclude a single parcel of about 17.193 acres that is now platted and planned for residential purposes (Ordinance No. 22-19) and include certain property totaling about 1.35 acres into the boundaries of the District (Ordinance No. 22-20). Subsequently in 2022, City Council approved the issuance of special revenue bonds by the District in an amount not to exceed $5,000,000 for a project located at the intersection of Woodmen and Marksheffel Roads (Resolution 41-22). 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 of up to $10,000,000 in conformance with 7-100 of the City Charter (Resolution No. 167-22), which a portion of which was issued in 2024. A bond of $5,688,000 million was included in the 2024 budget.
In 2025, City Council approved Resolution 99-25 which allowed the District’s 2025 Operating Plan to amend its anticipated debt schedules. This amendment contemplated the issuance of debt in late 2025 or in 2026 to support ongoing improvements. As of now, no debt has been issued as a result of this amendment.
This item was introduced in a City Council Work Session on October 13, 2025.
Financial Implications:
The District anticipates that at the end of 2026 they will have outstanding developer advances totaling $401,884 in principal and interest, which accrues interest at a rate of 8% per annum. The 2026 budget includes $131,214 in developer advances to fund operation and capital improvements of the BID. Because this BID is constrained from having a debt service mill levy due to its overlap with the Woodmen Heights Metropolitan District No. 3, the primary source of pledged revenues for any year or subsequent bond issue is expected to be a 3% public improvement fee (PIF) per the District Financing Analysis provided in Exhibit B of the 2026 Operating Plan and Budget. The 2026 budget includes $150,000 in anticipated PIF revenue.
As a separate legal entity, the financial activities of the BID are separate from those of the City. Responsibility for its indebtedness is specific to the property in the BID and is not an obligation of the City.
City Council Appointed Board/Commission/Committee Recommendation:
The BID Board of Directors recommends City Council’s approval of the 2026 Operating Plan and Budget.
Stakeholder Process:
N/A
Alternatives:
N/A
Recommended Action
Proposed Motion:
Approve the Resolution approving the proposed 2026 Operating Plan and Budget for the MW Retail Business Improvement District.
Summary of Ordinance Language
N/A