Title
A Resolution of the City Council of Colorado Springs, Colorado Approving the Proposed 2026 Operating Plan and Budget for the GSF Business Improvement District.
Related Files: N/A
Council District #3
Presenter:
Allison Stocker, Senior Planner, City Planning Department
Kevin Walker, Planning Director, City Planning Department
Body
Summary:
The GSF 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 Operating Plan and Budget for this BID anticipates the District will primarily be engaged in early development and public improvement planning activities in 2026, and does not plan on certifying a mill levy for collection in 2026.
Background:
The District was organized in 2021, a special election for the District, consisting of debt and related issues and questions was held on November 2, 2021. The District is governed by a five-member elected Board of Directors. The boundaries of this BID encompass about 23 acres just east of Downtown Colorado Springs. It is anticipated that when the properties are eventually redeveloped that the portions of the District will be included or excluded. By State law, any future district inclusions or inclusions must be approved by City Council. The overall metropolitan district/BID structure is similar to the Southwest Downtown (aka Park Union) project, as the site is overlapped with GSF Metropolitan Districts. By state law, BIDs cannot assess residential properties for property taxes.
This Operating Plan and Budget allows for a mill levy cap of up to 50.000 mills for debt service and up to 10.000 Mills for general operations and administrative expense. However, the District does not anticipate certifying a mill levy in 2026. Additionally, this BID proposes to make use of public improvement fee (PIF) revenues as an additional source of revenue for bonding. The nature and amount of these PIFs is not specified at this time and is not budgeted in the 2026 budget. The District maintains a maximum debt authorization of $83,100,000. There is presently no debt and no intentions of issuing debt in the coming year.
Similar to other Business Improvement Districts, the District is holding an election on November 4, 2025, for eligible electors to consider a waiver of the 5.25% property tax limit that was set forth in C.R.S. 29-0-1702. No elections are planned for 2026.
It is anticipated that the District will enter into various agreements as required to facilitate the funding, construction, operation, and maintenance of public improvements. The District entered into an Inter-District Intergovernmental Agreement with GSF Metropolitan District Nos. 1 & 2 on May 21, 2021, whereby the District is responsible for financing, constructing, maintaining, and operating the public improvements and the GSF Metropolitan District Nos. 1 & 2 shall assign revenues to the District to offset the expenses of the construction of the public improvements and the District’s costs of operating and maintaining such public improvements. Additional agreements have also been made with Nor’Wood through a Facilities Funding and Acquisition Agreement and a Reimbursement Agreement (Operations). Both agreements were made on May 21st, 2021. However, the 2026 operating plan indicates that there are presently no plans to begin public improvements at this time so it is unlikely that any actions will be taken in regards to these agreements.
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 creation of this BID in April 2021 (Ordinance No. 21-35).
This item was introduced in a City Council Work Session on October 13, 2025.
Financial Implications:
The District does not have any existing debt and does not anticipate issuing debt in 2026. The combined maximum debt authorization for this BID and the GSF Metropolitan Districts 1 & 2 is $83,100,000. As noted in the District’s 2026 Operating plan and Budget the total amount of the cost of the proposed Public Improvements will be allocated between the 3 Districts as appropriate.
The District had a total of $207,708 in principal and $38,562 in interest in developer advances at the end of 2025, which accrues interest at a rate of 8% per annum. The 2026 budget includes $39,600 in developer advances to fund operation of the BID. The District anticipates developer funding for initial revenue sources and thereafter revenue derived from property tax and public improvement fees.
In past years, the District has budgeted for intergovernmental revenue from the GSF Metropolitan District No. 1. This revenue is from property taxes generated from the mills levied by the Metropolitan District for operations and maintenance and will be transferred to the BID which pays for all administrative expenses of the Metropolitan District. In 2026, the District does not budget for any intergovernmental revenues.
The District will not certify a mill levy for collection in 2026. As a separate legal entity, the financial activities of the BID are separate from those of the City. Its financial obligations are specific to the properties included in the BID and do not constitute 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 GSF Business Improvement District.
Summary of Ordinance Language
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