Title
A Resolution of the City of Colorado Springs Approving an Amended 2025 Operating Plan and Budget for the MW Retail Business Improvement District
Presenter:
Allison Stocker, Senior Planner, Planning Department
Kevin Walker, Planning Director, Planning Department
Body
Summary:
This is a request to approve an amended 2025 Operating Plan for the MW Retail Business Improvement District (“District”). The District is requesting an amendment of language in the 2025 Operating Plan in order to support the issuance of future debt. While the timing and amount of this future bond issuance is currently being contemplated, the District anticipates issuing this debt in 2025 or in 2026.
This item was presented for action on the July 8th, 2025, but at the request of Council this item was postponed to July 22nd, 2025 to allow additional time for review.
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 (Lot 1 of Tallgrass at the Ranch) that is now platted and planned for residential purposes (Ordinance No. 22-19) and include certain property (Tallgrass at the Ranch Lot 2 and Tract B) 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).
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. This Special Revenue Bond was issued on October 31st, 2024 in the PAR amount of $4,190,000.
The latest action made by City Council regarding this District was the approval of the 2025 Operating Plan and Budget in October of 2024.
Background:
BIDs are created under Colorado Statute and City Policy to finance and/or maintain certain public improvements in non-residential areas, utilizing property tax mill levy as the revenue source. BIDs are separate legal entities from the City, but their Operating Plans and the Special District Policy require City Council approval of all formal BID debt. The standard of review of the debt instruments is consistent with the Operating Plan and all applicable laws.
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 22.36 acres. 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.
The issuance of this debt was anticipated in the 2025 Operating Plan and Budget for this District (as approved by City Council in October 2024). However, per Section 6.F - Future Debt Obligations, the 2025 Operating Plan states, “The City Council approved the District’s issuance of debt pursuant to Resolution 167-22, provided such debt issuance is in general conformity with the financial plan provided in Exhibit E to the 2023 Operating Plan and Budget “(refer to Exhibit E). While the 2025 Operating Plan includes language that would allow for multiple bond issuances in either 2024 or 2025, Exhibit E did not contemplate this level of expenditure and capped debt issuances at $4,190,000.
The District is proposing a change to Section 6.F to allow the Future Debt Obligations to be tied to the 2025 Financial Plan (refer to Exhibit B) in lieu of the 2023 Financial Plan (refer to Exhibit E). This will allow the District to issue bonds based on more up to date financial information that’ supports the District’s ability to responsibly take out additional bonds for public improvements. The District has not finalized a bond amount or timeline for that request.
The future bond issuance is to support public improvements within the district and are anticipated to include parks and recreation, drainage, landscaping, and street facilities.
Financial Implications:
Pursuant to the District’s operating plan, the City Special District Policy, bond documents, the issuance of this debt does not constitute a financial obligation of the City. The documents will contain the limitations required by the City’s Special District Policy. City Charter Section 7-100 provides that the total debt of any special district may not exceed ten percent (10%) of the total assessed valuation of the taxable property within the District unless such debt is approved by at least a two-thirds vote of the entire Council.
Board/Commission Recommendation:
N/A
Stakeholder Process:
N/A
Alternatives:
City Council could choose to approve, deny or modify the proposed resolution.
Recommended Action
Proposed Motion:
Move to approve a Resolution of the City of Colorado Springs Approving an Amended 2025 Operating Plan and Budget for the MW Retail Business Improvement District
Summary of Ordinance Language N/A