Title
A Resolution of the City Council of Colorado Springs, Colorado Approving the Proposed 2026 Operating Plan and Budget for the Creekwalk Marketplace 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 Creekwalk Marketplace 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 increasing its mill levy in 2026. The District imposed a 10.175 mill levy for operations and maintenance and 50.875 mill levy for debt service in 2025. In 2026, these mill levies are proposed to be 10.33 mills and 51.666 respectively. In addition to the minor change to the mill levies, the District has expressed its intent to include four new parcels into the District sometime between the end of 2025 or sometime in 2026. Should these inclusions move forward, these actions require separate action and approval from City Council.
Background:
The initial boundaries of this development-specific BID were established pursuant to an election in 2016 with additional properties added over the years bringing the District’s current acreage to approximately 15 acres. The properties included within the District are largely discontinuous but are all situated along the South Nevada corridor between South Motor Way and East Cheynne Road. This BID has a 5-member elected board comprised of individuals associated with this redevelopment project. The District is authorized to provide the acquisition and financing of improvements, construction of improvements, operation and maintenance of parking facilities, roadways, lighting, driveways, public utilities, and landscaping.
In 2026 the District anticipates raising the operation and maintenance mill levy from 10.175 mills to 10.333 mills, and the debt service mill levy from 50.875 to 51.666 mills. The District will retain its $65 million dollar authorized maximum debt into 2026, and since the District already holds approximately $65 million dollars in debt, the District will not be issuing any debt in the coming reporting year.
Inclusions of several parcels are anticipated to occur in late 2025 or in 2026 which will further the District’s reach along the South Nevada corridor. These inclusions are anticipated to include 226 E. Brookside Street, 1424 Ohio Street, and 25 E. Ramona Street. Along with the planned inclusions, the District anticipates to continue undertaking improvements on Creekwalk North including but not limited to environmental remediation, demolition, streetscape improvements, and drainage, stormwater improvements.
No changes to the Board are expected in 2026, however in 2025 an election was in May to determine whether a waiver of the property tax limit should be permitted. The eligible electors of the District approved this waiver. In addition to the election held in May 2025, the District refunded all existing bonds and issued additional bonds at the end of 2024. Pursuant to City Council’s approval, the District reissued debt in the form of Series 2024A Limited Tax Supported and Special Revenue Refunding Senior Bonds in the principal amount of $50,000,000 and its Series 2024B Limited Tax Supported and Special Revenue Refunding and Improvement Subordinate Bonds in the principal amount of $15,000,000.
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 the creation of this BID in 2016 (Ordinance No. 16-18). Council subsequently approved ordinances to include additional property on September 26, 2017 (Ordinance No. 17-87), February 27, 2018 (Ordinance No. 18-10), and March 12, 2019 (Ordinance 19-19). In May 2019 Council denied a petition requesting exclusion of a property from this BID that had previously been voluntarily petitioned for inclusion. Following this decision Council approved the issuance of debt in principal amounts of approximately $18,145,000 as Series 2019A and $3,030,000 as subordinate Series 2019B Limited Tax Supported and Special Revenue Bonds (Resolution No. 51-19). In November 2021 Council approved the inclusion of certain property into the boundaries of the District (Ordinance No. 21-93), and the issuance of additional debt in principal amounts not to exceed $16,500,000 (Resolution 188-21). In August 2023 Council approved the inclusion of two parcels within the BID that are not contiguous to other parcels within the District, however, are connected to the BID based on the various redevelopment efforts along the Nevada corridor (Ordinance 23-44). The two parcels in the 2023 inclusion are not within the URA and do not have any relation to URA activities or tax increment financing.
In 2024, the District requested to increase maximum pre-authorized debt from $50,000,000 to $65,000,000 and received approval through Resolution No. 154-24. Additionally, the District simultaneously requested inclusion of new properties (Resolution 24-98) and exclusion of properties (Resolution 24-99).
Pursuant to the Urban Renewal Plan, the City-Authority Agreement, the Redevelopment Agreement, and the Cooperation Agreement, dated July 26, 2019, with the Colorado Springs Urban Renewal Authority ("CSURA"), the District will receive tax increment financing ("TIF") generated from the urban renewal area to be used toward the repayment of the District's bonds.
This item was introduced in a City Council Work Session on October 13, 2025.
Financial Implications:
The District issued $24,230,000 as Series 2019A and $2,500,000 as subordinate Series 2019B Limited Tax Supported and Special Revenue Bonds with interest rates of 5.0% and 8.0% respectively (for a total of $26,730,000). These bonds were issued for the intended purpose of construction of capital improvements with a public purpose necessary for development. On December 23, 2021, the District issued Series 2021A Limited Tax Supported and Special Revenue Senior Bonds in the principal amount of $11,040,000 and its Series 2021B Tax Supported and Special Revenue Subordinate Bonds in the principal amount of $2,500,000 with interest rates of 5.0%-5.75% and 8.0% respectively.
The District imposed 10.576 mills for operations and maintenance and 52.881 mills for debt service in 2025. In 2026, these mill levies will be marginally increased to 10.33 mills and 51.666 mills respectively.
This BID also levies a public improvement fee (PIF) of 2.5% on the sale of goods and services. For 2026, $625,000 in PIF revenues are projected. This District will also receive tax increment financing (TIF) generated from the Districts projects to be used toward the repayment of the District’s bonds. For 2026, $125,000, in CSURA TIF Revenues are projected. The District is also anticipating the collection of $165,000 in CAM (Common Area Maintenance) Revenue to offset the additional operations and maintenance expenses in 2026.
The District has estimated an outstanding developer advance balance of $3,010,569 at the end of 2024, which accrues interest at a rate of 8% for advances for operations and 6% for infrastructure. As of December 31, 2026, the accrued interest and principal on the developer advance balance is expected to be $12,041,711 owed per the Facilities Funding and Reimbursement Agreement dated June 1, 2016.
It is anticipated that the continuous improvements and development of the District will positively impact property value assessments. The change in assessments was projected to increase the gross assessed value from $4,300,3300 to $6,135,280 in 2026.
In late 2024 the Creekwalk Marketplace BID requested and amendment to their Operating Plan to increase their maximum pre-authorized debt from $50,000,000 to $65,000,000 to allow for increased costs and for refinancing debt. This amendment was approved by Resolution on October 8, 2022. Additionally in late 2024, Creekwalk Marketplace BID was granted authorization by a 2/3rds majority of City Council to issue tax supported and special revenue bonds in an amount not to exceed $65,000,000.
As a separate legal entity, the financial activities of the BID are separate from those of the City. Any financial obligations are specifically associated with the properties within the BID 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:
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Recommended Action
Proposed Motion:
Approve the Resolution approving the proposed 2026 Operating Plan and Budget for the Creekwalk Marketplace Business Improvement District.
Summary of Ordinance Language
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