Title
Ordinance No. 19-26 including certain property into the Southwest Downtown Business Improvement District
(Legislative)
Presenter:
Carl Schueler, Comprehensive Planning Manager, Planning & Community Development
Body
Summary:
This is a request for approval of an ordinance to include a total of 9 (nine) tax parcels into the boundaries of the Southwest Downtown Business Improvement District (the “District”). The City received two related petitions for inclusion of these properties, executed by the owners. These properties are contiguous with the current BID boundaries, and these proposed inclusions would be consistent with the original intent of this BID when created, as well as with the most recent Operating Plan and Budget for this BID as approved by Council.
Previous Council Action:
The BID with its initial operating plan and budget were established by Ordinance 17-94 that was adopted by Council and made effective on October 10, 2017. The most recent Operating Plan and Budget for this BID was approved by Council in October of 2018.
On April 23, 2019, this Ordinance was approved on first reading on the Consent Calendar.
Background:
BIDs are created under Colorado Statute and City Policy to finance and/or maintain certain public improvements in non-residential areas, utilizing a property tax mill levy as their primary revenue source. BIDs are separate legal entities into the City, but their budgets and operating plans must be approved annually by the City.
It should be noted that City Council has also approved a service plan for two metropolitan districts that the developer of this larger project expects to use for the residential parts of this project. Although other properties within this BID are also included in the boundaries of Southwest Downtown Metropolitan District No. 2, this BID inclusion area currently is not. Eventually, a unique aspect of this project may be a vertical separation of district geography wherein, for example, ground floor commercial development would be included in this BID, while separate tax parcels for upper floor residential properties would be or remain included in one of the metropolitan districts. All of the Southwest Downtown project is also included in the Colorado Springs Downtown Development Authority, as well as the Museum and Park Urban Renewal Area.
This BID is authorized to levy up to 50.0 mills in debt service and 10 mills for operations and maintenance, and has a maximum debt authorization of $105,000,000. To-date, this BID has not issued any debt and it currently levies 1 mill for general operation purposes, and 20.0 mills for debt service. The Operating Plan and Budget for this BID allows for a public improvement fee (PIF) as a source of additional revenue for this project area. As represented by the petitioners, later this year, this BID anticipates issuance of bonds for a variety of public improvements purposes including on-site and off-site improvements.
Changing the boundaries of a BID by inclusion of property is governed by C.R.S. 31-25-1220, which requires the property owner to petition the governing body of the municipality in which the BID is located. Upon receipt of a petition for inclusion, published notice of the petition must be given in accordance with C.R.S. 31-25-1220. The notice must inform all persons having objections to the inclusion to appear at a hearing to show cause why the petition should not be granted. If the governing body (City Council) determines that changing the boundaries of the BID as requested by the petition does not adversely affect the BID, the governing body may grant the petition by ordinance. A certified copy of the ordinance is then filed with the County Clerk and Recorder and the property is then included into the boundaries of the BID.
State Statute (Section 31-25-1220, C.R.S.) requires that any inclusions of property into Business Improvement Districts be approved by the City, by ordinance. In accordance with the statutory section cited above, the petition for inclusion has been verified and arrangements made with the City for legal publication.
Financial Implications:
There should be no direct financial implications to the City into this action. The inclusion of this property should have positive effect on the financial capability of the District to meet its anticipated future financing obligations, assuming future on-site development moves forward.
Board/Commission Recommendation:
The City’s staff-level Special District Committee has been provided copies of these materials. All comments received have been in support and/or with no stated concerns.
The City Council Budget Committee discussed this item at their March 12, 2019 meeting. Discussion centered on the existing and contemplated future geography of the interrelated districts, Downtown Development Authority boundary and associated urban renewal area. There were no comments, concerns or questions raised about this inclusion action.
Stakeholder Process:
N/A
Alternatives:
City Council could choose to approve, not approve or modify the proposed ordinance.
Recommended Action
Proposed Motion:
Move to adopt an ordinance including certain property into the boundaries of the Southwest Downtown Business Improvement District.
Summary of Ordinance Language
An ordinance including certain property into the Southwest Downtown Business Improvement District