Title
Ordinance No. 21-93 including certain property into the boundaries of the Creekwalk Marketplace Business Improvement District located along South Nevada Avenue.
(Legislative)
Presenter:
Carl Schueler, Comprehensive Planning Manager, Planning & Community Development
Peter Wysocki, Planning and Community Development Director
Body
Summary:
This is a request for approval of an ordinance to include five (5) parcels, totaling about 2.5 acres into the boundaries of the Creekwalk Marketplace Business Improvement District (the “District”). The City received a Petition for an Inclusion of these Properties as executed by the owners.
Per Colorado State Statute, property included in a BID does not need to be contiguous or adjacent. These inclusions will bring additional recently acquired properties into the District boundaries. All of these properties are logically related to the ongoing redevelopment of the South Nevada area and to the anticipated involvement of this BID in particularly.
This Item was discussed by the City Council Budget Committee on October 26, 2021. This item is being recommended for “back-to-back” scheduling for the November 9, 2021 Council hearing.
Approval of the subsequent debt authorization agenda item for this BID would be contingent upon these inclusions being approved.
The project is located in City Council District No. 3.
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 50.0 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. This BID currently levies 1.0 mill for general operation purposes, and 50.0 mills for debt service. Concurrent with this inclusion process, this BID anticipates issuance of additional bonds.
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 2019 2018 and again in 2019, additional properties were included. These latest inclusions are contemplated in the BID’s current (2022) Operating Plan and Budget.
This item was introduced at an October 26, 2021 meeting of the Budget Committee in conjunction with associated requests to amend the current Colorado Springs Urban Renewal Authority cooperation agreement and to seek authorization for this BID to issue additional bonded indebtedness. There were no significant questions or comments specific to this inclusion request.
Financial Implications:
There should be no direct financial implications to the City into this action. The applicant represents that the developed and developable taxable property remaining in the District is sufficient to meet ongoing and future obligations of the District. 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 support and/or with no stated concerns.
Stakeholder Process:
N/A - although it is noted that the Executive Director of the Urban Renewal Authority has been kept apprised of this request.
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.
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 2022.
Council has also recently approved additional commercial rezoning petitions and a concept plan for several of these subject properties.
Alternatives:
City Council could choose to approve, not approve or modify the proposed ordinance.
Recommended Action
Proposed Motion:
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 located along South Nevada Avenue.