Title
A Resolution of the City Council of Colorado Springs, Colorado Approving the Proposed 2026 Operating Plan and Budget for the First and Main North 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 First and Main North 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.
In 2025, the District imposed a mill levy of 1.042 mills for operations and maintenance expenses and a debt service mill levy of 52.117 mills. Both mill levies will be increased marginally in 2026, with debt service being raised to 53.703 mills and operations and maintenance set to 1.074. Other than the mill levy change the Operating Plan and Budget for this BID includes no significant anticipated activities or changes. In 2026 the District’s activities will focus on district administration and payment of its existing bonds, as well as operating and maintaining parking facilities, roadways, lighting, driveways, public utilities and landscaping services.
Background:
The boundaries of this development-specific BID were established pursuant to an election in 2004. This BID has an elected board, which is comprised of individuals associated with Nor’wood Development Group. The District is authorized to provide the acquisition of improvements, construction of improvements, operation and maintenance of parking facilities, roadways, lighting, driveways, public utilities, and landscaping. The District currently owns certain street improvements, parking facilities, water improvements and drainage improvements.
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 formation of this BID in 2004 (Ordinance No. 04-51) and has approved the BID’s Operating Plan and Budget annually since its formation.
This item was introduced in a City Council Work Session on October 13, 2025.
Financial Implications:
The District issued $1,927,000 in Limited Tax General Obligation Bonds, Series 2005 for infrastructure improvements. The bonds financed public improvements which included streets, parking, water lines, and sewer lines, and carry an interest rate of 6.0%. These bonds are privately placed with this developer.
The District had an outstanding developer advance balance of $260,200 at the end of 2025, which accrues interest at a rate of 7%. As of December 31, 2026, the total outstanding value of the developer advance and the accrued interest is estimated to be $271,567.
In 2026, the District anticipates imposing a mill lev of 1.074 mills for operations and maintenance expenses and a debt service mill levy of 53.703 mills. Although the series 2005 Bond Resolution limited the mill levy to 34.000 mills for years 2016 through 2034 due to lower than projected revenue from the limited mill levy, the Board of Directors of the District approved keeping the mill levy at 39.000 mills. However, pursuant to the Second Amendment to Bond Resolution, Series 2005, dated November 29, 2017, the District authorized the mill levy limitation to not exceed 50.000 mills for payment of principal, premium, and interest on the bonds and any parity bonds.
In 2024, it was projected that the assessed valuation (AV) for this BID is lower than in prior years due to high commercial vacancy rates in the 2025 operating year. However, in 2025 the assessed value increased by approximately $50,000 dollars.
As a separate legal entity, the financial activities of the BID are separate from those of the City. Any financial obligations of the BID are specific to the property within its boundaries 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 First and Main North Business Improvement District.
Summary of Ordinance Language
N/A