Title
An Ordinance including certain property into the boundaries of the Creekwalk Marketplace Business Improvement District
(Legislative)
Presenter:
Kyle Fenner, Senior Planner, Planning and Neighborhood Services
Body
Summary:
This is a request for approval of an ordinance to include two (2) parcels, totaling 1.29 acres, into the boundaries of the Creekwalk Marketplace Business Improvement District (the “District”). The City received a Petition for an Inclusion of Properties as executed by the owners.
Per Colorado State Statute, property included in a Business Improvement District (BID) does not need to be contiguous or adjacent. These inclusions will bring additional properties into the District boundaries on behalf of the owner of those properties, SNA Equities, LLC. According to the cover letter, both properties are related to the ongoing redevelopment of the South Nevada area and to the anticipated involvement of this BID in particularly. More specifically, the applicant states in their letter that “The District and the owner are anticipating potential future public improvements” for these two parcels and that, “inclusion into the District’s boundaries will facilitate those activities.” Future public improvements will be in conjunction with redevelopment of the two parcels but will likely include: streetscape, access/street, storm and water/wastewater improvements.
The two parcels proposed for inclusion are located just under 0.5 miles from the northern most parcel currently located in the BID (see Property Inclusion Map). Further, all other parcels included in this BID are within the Urban Renewal boundary. There is no guidance in either City Policy or State Statute related to the proximity of the inclusion parcels to other parcels in the BID.
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.
This BID was originally created in 2016. It is authorized to levy up to 50 mills in debt service and 10 mills for operations and maintenance. It has a maximum debt authorization of $50,000,000. This BID issued debt in 2019 in the form of Series A bonds in the amount of $24,230,000, and subordinate Series B bonds in the amount of $2,500,000. Additional debt was issued by the BID in 2021 in the form of Series A bonds in the amount of $11,040,000, and subordinate Series B bonds in the amount of $2,500,000. The total debt issuance for this BID is $40,270,000, which is under their $50,000,000 cap leaving a remaining 9,730,000 authorized debt.
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, 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.
When originally created the developer in this area anticipated inclusion of additional properties as acquired and presented this intent to City Council at the time. In 2018, 2019, 2021 and again in 2023, additional properties were included. These latest inclusions were not contemplated in the BID’s current (2023) Operating Plan and Budget.
Financial Implications:
There should be no direct financial implications to the City into this action. As represented by the District, the inclusion of this property should have positive effect on the financial capability of the District to meet its anticipated future financing obligations.
Board/Commission Recommendation:
The City’s staff-level Special District Committee has been provided copies of these materials. All comments received have been in general support but with comments regarding the proximity of the proposed parcels to the parcels within the existing BID.
Stakeholder Process:
N/A - although it is noted that the Executive Director of the Urban Renewal Authority has been kept apprised of this request and has engaged with the applicant.
Previous Council Action:
The BID with its initial operating plan and budget was established by Ordinance 16-18 made effective on March 3, 2016. City Council subsequently approved a request for Inclusion of Property into this BID by Ordinance 17-87, made effective on October 4, 2017. On February 27, 2018 additional property was included by Ordinance 18-10. On March 26, 2019 additional properties were included (Ordinance 19-19). On May 14, 2019, Council authorized an issuance of debt by this district. That debt includes pledges from a public improvement fee (PIF) and an overlying urban renewal area. On November 23, 2021, additional property was included by Ordinance 21-93. Lastly on August 22, 2023 an inclusion of property was approved with Ordinance 23-44.
This BID's Operating Plan and Budgets have been approved annually since that time in accordance with C.R.S. Section 31-25-1211, and most recently in October 2023.
Alternatives:
City Council could choose to approve, deny, or modify the proposed ordinance.
Recommended Action
Proposed Motion:
Move to adopt an ordinance including certain property into the boundaries of the Creekwalk Marketplace Business Improvement District.
Summary of Ordinance Language
An ordinance including certain property into the boundaries of the Creekwalk Marketplace Business Improvement District.