Title
Introduction of the Downtown Development Authority (DDA) Budget, and Business Improvement District (BID) Operating Plans and Budgets for 2015
Body
From:
Kara Skinner, Chief Financial Officer
Peter Wysocki, Planning and Development Director
Carl Schueler, Planning Manager - Comprehensive Planning
Summary:
This briefing introduces the submitted budget for the DDA as well as the operating plans and budgets for the City's ten (10) BIDs, as required by Colorado Revised Statutes. Separate memos will be presented for action on each of these agenda items as part of the Regular meeting agenda for October 28, 2014.
Previous Council Action:
Council approves these operating plans and budgets for BIDs and the budget for the DDA annually. In August 2014, Council adopted a standard form template for BID plans. After first authorizing their creation, Council periodically takes actions concerning these entities related to activities such as debt issuance, governance changes, and boundary adjustments.
Background:
The eleven (11) referenced documents are attached for review by City Council.
• Colorado Springs Downtown Development Authority
• Greater Downtown BID
• Interquest North BID
• Interquest South BID
• First and Main BID
• First and Main No. 2 BID
• First and Main North BID
• Briargate Center BID
• Barnes and Powers North BID
• Barnes and Powers South BID
• Powers and Woodmen Commercial BID
Highlights for 2015:
Governance - The DDA and the Downtown BID have City Council- appointed boards of directors with categories of representation identified in their authorizing ordinances. The other nine BIDs are development specific, and have elected boards. In 2014, Council approved a change in the governance structure for the First and Main and First and Main No. 2 BIDs in order to allow them to convert from appointed to elected boards.
2015 Mill levies and Fees - With two exceptions, these entities intend to certify the same property tax mill levies as they did for 2014.
• The Barnes and Powers North BID intends to increase its debt service mill levy from 44.0 to 46.0 mills in order to meet debt service requirements.
• The Briargate Center BID intends to eliminate its operational mill levy of 8.0 mills thereby reducing their overall mill levy from 45.0 to 37.0 mills
Boundary Changes - The Greater Downtown BID may request approval of a small inclusion of property on South Tejon Street. The Interquest North BID may request exclusion of a parcel if it converts from commercial to residential zoning.
Issuance of Debt - The following entities have stated and intent to issue or refinance formal debt in 2015:
• The First and Main No. 2 BID may issue $3,000,000 in new bonds
• The Briargate Center BID intends to undertake an approximately $1.2M capital project (to include a new traffic signal) and may request approval of a loan of $1,000,000 in conjunction with this project
Some of these BIDs are accruing developer advances or reimbursement agreements. These do not constitute formal debt for the purposes of TABOR.
Colorado Springs Downtown Development Authority - As noted in the accompanying PowerPoint presentation, the DDA has accumulated a considerable fund balance from property tax and tax increment financing (TIF) revenues and proposes to budget these for a variety of programs. Ms. Susan Edmondson of the Downtown Partnership should be available to describe the nature of and approach to these programs in more detail.
Public Improvement Fees (PIFs) - None of these entities has indicated plans to impose new or expanded PIFs in association with their districts.
Financial Implications:
As separately managed entities and/or budget funds, there are no direct financial implications to general City taxpayers/ratepayers. The benefits/ costs and tax obligations of these entities are applicable to defined areas within their boundaries.
Board/Commission Recommendation:
The boards of each of these entities recommend approval of their respective operating plans and/or budgets.
Stakeholder Process:
N/A
Alternatives:
N/A
Recommended Action
Proposed Motion:
To be provided with separate 10/28/14 agenda items.
Ordinance Language
N/A