Title
A Resolution of the City Council of Colorado Springs, Colorado Approving the Proposed 2027 Operating Plan and Budget for the TrueNorth Commons Business Improvement District.
Located in Council District #2
Presenter:
Drew Foxx, Planner II, City Planning Department
Kevin Walker, Planning Director, City Planning Department
Body
Summary:
The TrueNorth Commons Business Improvement District (BID) (formerly known as the USAFA Visitor’s Center Business Improvement District) 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 2027 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. A regular election is scheduled for May, 2027 and there are currently two vacancies on the Board. This District anticipates continuing with public improvements and construction projects in 2027. As the District has started generating revenue through Hotel Polaris, the assessed value of the District has decreased by approximately 2.2 million from approximately 30 million in 2026.
Background:
The District was organized in 2018, a special election for the District, consisting of debt and related issues and questions was held on November 6, 2018. The boundaries of this development-specific BID were established initially to include 1.705 acres in the Briargate area that are located within the boundaries of the City. The actual project site was subsequently annexed into the boundaries of the City in March 2019, and included in this BID, after which the original property was excluded. The District presently consists of thirty-six (36) acres adjacent to the North Gate of the Air Force Academy.
This BID has a 5-member elected board comprised of individuals associated with this redevelopment project, but as of the submittal of the 2027 operating plan there are two vacancies. The District has completed the United States Air Force Academy Visitors Center (USAFA) and was conveyed to the USAFA in 2024. At this time most of the major construction projects have been completed or are nearly complete.
The District has a maximum debt authorization of $90 million dollars. Given that the District has reached its debt limit and is nearly completing its major improvements, the District does not anticipate issuing any new debt in 2027. In 2027, the District will retain the same mill levies it has in the current operating year. These mill levies consist of 50 mills for debt service and 10 mills for operations and maintenance. Besides revenue from mill levies, the District also imposes a Public Improvement Fee (PIF) and receives tax-increment financing (TIF) revenue through its agreement with the Colorado Springs Urban Renewal Authority. No changes are proposed to the District’s boundaries or scope of improvements is anticipated.
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 creation of this BID in 2018 (Ordinance No. 18-77). In March 2019 Council approved the annexation of area known as USAFA Annexation Addition No. 1 and No. 2 (Ordinance 19-16 and 19-17). Council approved an urban renewal plan for this project site on July 9, 2019 by Resolution No. 61-19. Council approved separate ordinances to include and exclude property into this BID in 2019 (Ordinance No. 19-70 and 19-71 respectively).
On October 22, 2019 City Council approved issuance of debt of up to $80,000,000 (Resolution No. 103-19). Due to unforeseen circumstances resulting from the coronavirus pandemic, the District was unable to close on bond issuances that had been approved by Council in early 2020. As a result, the District requested and City Council granted an extension until December 31, 2021 to issue the bonds, and an increase to the debt issuance limit to $90,000,000 (Resolution No. 18-21). In February 2021 City Council approved, via motion, an Amended 2021 Operating Plan incorporating, among other things, the debt issuance extension and increased debt limit.
In April 2022 City Council approved a name change for this BID from United States Air Force Academy Visitor’s Center Business Improvement District to TrueNorth Commons Business Improvement District (Ordinance No. 22-21).
This item was introduced in a City Council Work Session on October 12, 2026.
Financial Implications:
In January 2022, the District issued $7,695,000 in Series 2022A Special Revenue Bonds, $54,370,000 in Series 2022B Taxable Special Revenue Bonds, and $24,275,000 in Series 2022C Subordinate Special Revenue Bonds. The Bonds are special limited obligations of the District secured by and payable from the pledged revenues, consisting of revenues attributable to privately imposed public improvement fees payable with respect to certain retail sales transactions and construction activities occurring within the development, and revenues generated from the commercial and residential facilities fees imposed by Sample District. The Series 2022A Bonds of $7,695,000 are term bonds due December 1, 2052, at an interest rate of 5.00%. The Series 2006B Bonds are term bonds maturing as follows: $3,000,000 due December 1, 2029, at an interest rate of 6.00%, $26,370,000 due December 1, 2042 at an interest rate of 6.75%, and $25,000,000 due December 1, 2052 at an interest rate of 7.00%. The Series 2022C Bonds of $24,275,000 are term bonds due December 15, 2052, at an interest rate of 7.75%.
The proposed mill levy for the BID in 2027 is 60.000 mills (10.000 mills for operating expense and 50.000 mills for debt service) which is unchanged from 2025 and 2026. In addition, it is anticipated that the District will facilitate the imposition of public improvement fees (PIFs) on all taxable sales, lodging, and motor fuel sales within the project to fund the District’s debt service, operation and maintenance obligations, and to perform the obligations under the Enhanced Use Lease (EUL) that are assumed by the District. Based on the 2026 Operating Plan and Budget the amounts of these PIFs are expected to be 3.0% for retail and service sales, 2.0% for lodging, and 2.50% on motor fuel sales. The 2026 budget includes $1,228,052.00 PIF revenue and the 2027 projected PIF revenue is $1,352,450.00.
Through the agreement with the Colorado Springs Urban Renewal Authority, the District is able to take advantage of tax increment financing (TIF). In 2027, this funding source is anticipated to bring in approximately $2.2 million dollars in revenue. This revenue is intended to be used toward the repayment of the District’s bonds.
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 2027 Operating Plan and Budget.
Stakeholder Process:
N/A
Alternatives:
N/A
Recommended Action
Proposed Motion:
Approve the Resolution approving the proposed 2027 Operating Plan and Budget for the TrueNorth Business Improvement District
Summary of Ordinance Language
N/A