Title
A Resolution of the City Council of Colorado Springs, Colorado Approving the Proposed 2023 Operating Plan and Budget for the Interquest Town Center Business Improvement District
Presenter:
Carl Schueler, Comprehensive Planning Manager
Michael Tassi, Assistant Director, Planning and Community Development
Body
Summary:
The Interquest Town Center 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 2023 Operating Plan and Budget for the BID.
The Operating Plan and Budget for this BID anticipates no changes from the prior year related to mill levies, additional debt issuances or boundary changes, however, the District does have a Board vacancy that they anticipate filling in 2023. This BID will continue servicing outstanding debt, install public infrastructure and perform operations and maintenance functions.
Background:
The initial boundaries of this public improvement BID were established when this BID was created in 2017. The BID includes approximately 19 acres. No additional inclusion or exclusion requests are expected in 2023. Under State statute, any such inclusions must be approved by separate City Council ordinance.
This BID currently has one vacancy that they expect to fill in 2023. The District will be primarily concerned with the provision of public improvements and services within the boundaries of the District. The District is authorized to exercise all the powers, functions, and duties specified in the Business Improvement District Act. The District’s operating plan indicates District does not currently own any real property.
This Operating Plan and Budget is provided in a format consistent with the standard template approved by Council in August 2022 for these documents.
The District anticipates funding the design, installation, or acquisition of additional public improvements during 2023, including street improvements, water and wastewater improvements, and transportation projects. The District anticipates providing landscaping services in 2023.
Previous Council Action:
City Council originally approved formation of this BID in 2017 (Ordinance No. 17-105). On June 14, 2020 Council authorized issuance of Series 2020 bonds by this BID (Resolution 54-20).
This item was introduced in a City Council Work Session on October 10, 2022.
Financial Implications:
On December 29, 2020, the District issued $2,860,000 in Limited Tax General Obligation Bonds, Series 2020 to fund public improvements. The Series 2020 Bonds bear interest at a rate of 7%. The proposed total mill levy for the BID in 2023 is 45.000 mills (5.000 mills for operational expenses and 40.000 for debt service). There is no change to the mill levy as compared to 2022. This BID also levies a public improvement fee (PIF) of 1.5% on the sale of goods and services. For 2023, $85,000 in PIF revenues are projected.
The District estimates an outstanding developer advance balance of $115,183 at the end of 2022, which accrues interest at a rate of 8%. As of December 31, 2022, the accrued interest on the developer advance balance is estimated to be $19,689. The 2023 budget includes a $27,000 developer advance to fund operating expenditures.
As a separate legal entity, the financial activities of the BID are separate from those of the City. Its financial obligations are specific to the properties included in the BID 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 2023 Operating Plan and Budget.
Stakeholder Process:
N/A
Alternatives:
N/A
Recommended Action
Proposed Motion:
Move to approve the Resolution approving the proposed 2023 Operating Plan and Budget for the Interquest Town Center Business Improvement District.
Summary of Ordinance Language
N/A