Title
A Resolution of the City Council of Colorado Springs, Colorado Approving the Proposed 2026 Operating Plan and Budget for the Interquest Town Center Business Improvement District.
Related Files: N/A
Council District #2
Presenter:
Allison Stocker, Senior Planner, City Planning Department
Kevin Walker, Planning Director, City Planning Department
Body
Summary:
The Interquest Town Center 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 decreasing its mill levies in 2026. The District anticipates imposing 5.031 mills for operations and maintenance and 40.252 mills for debt service in 2025, and these mills will convert to 5.00 mills and 40.00 mills respectively in 2026. BID will continue servicing outstanding debt, install public infrastructure and perform operations and maintenance functions in the coming reporting year.
A revised Operating Plan and “Factsheet” were provided after the Work Session held on October 13, 2025. The only change made to these materials was removing the reference to a Board appointment for Paul Palmer who was not elected to the Board in 2025. No other changes were made to either the Operating Plan and Budget, or the “Factsheet”.
Background:
The initial boundaries of the Interquest Town Center BID were established when this BID was created in 2017. The BID includes approximately 19 acres at the southeast corner of the intersection of Interquest Parkway and New Allegiance Drive. The District was created for the express purpose of financing, acquisition, construction, completion, installation, replacement and/or operation and maintenance of all the services and public improvements.
Other than the mill levy change, the District does not anticipate any additional debt issuances or boundary changes. However, the District filled a Board vacancy in 2025 and intends to hold an election on November 4, 2025, to determine whether to approve a waiver of the 5.25% property tax limit. No further elections or changes to the Board are anticipated in 2026.
The District will be primarily concerned with the provision of public improvements and services within the boundaries of the District. The District is authorized to exercise all the powers, functions, and duties specified in the Business Improvement District Act. The District’s operating plan indicates District does not currently own any real property.
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 2017 (Ordinance No. 17-105). On June 14, 2020 Council authorized issuance of Series 2020 bonds by this BID (Resolution 54-20).
This item was introduced in a City Council Work Session on October 13, 2025.
Financial Implications:
On December 29, 2020, the District issued $2,860,000 in Limited Tax General Obligation Bonds, Series 2020 to fund public improvements. The Series 2020 Bonds bear interest at a rate of 7%.
The District anticipates imposing 5.031 mills for operations and maintenance and 40.252 mills for debt service in 2025. In 2026, this will be reduced to 5.00 mills and 40 mills respectively. This BID also levies a public improvement fee (PIF) of 1.5% on the sale of goods and services. For 2026, $170,000 in PIF revenues are projected. The District estimates an outstanding developer advance balance of $93,775 at the end of 2026, which includes both the principal and interest. These advances accrue interest at a rate of 8%.
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 Interquest Town Center Business Improvement District.
Summary of Ordinance Language
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