Title
A Resolution of the City Council of Colorado Springs, Colorado Approving the Proposed 2026 Operating Plan and Budget for the Park Union Business Improvement District.
Related Files: N/A
Council District #3
Presenter:
Allison Stocker, Senior Planner, City Planning Department
Kevin Walker, Planning Director, City Planning Department
Body
Summary:
The Park Union 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 2026 Operating Plan and Budget for the BID.
The Park Union Business Improvement District was previously known as the SW Downtown BID. District imposed 5.229 mills for operations and maintenance and 21.565 mills for debt service in 2025. This coming operating plan year will see slight decreases in the mill levies with 21.481 mills for debt service and 10.740 for operations and maintenance. At this time, the District does not anticipate issuing bonds in 2026, does not anticipate boundary changes, or any other major changes to the Districts operations. There may be some minor public improvements completed before the end of 2025 or in 2026.
Background:
The initial boundaries of this BID were established pursuant to an election in 2017. The District encompasses approximately seventy-one (71) acres on the west side of Downtown Colorado Springs. Notably, this District includes the America the Beautiful Park, and under-utilized and vacant property. Currently, the boundaries of this BID overlap with those of two associated metropolitan districts. Over time, as this project develops, it is expected that any particular property will only be included in one of the three districts, with non-residential properties in the BID, and residential properties in one of the metropolitan districts. In some cases, these future exclusions and inclusions may be specific to separate floors of buildings that are devoted to eligible residential or non-residential uses.
The District has a 5-member board elected by the eligible electors of the District as provided by law. The District is authorized to provide the acquisition of improvements, construction of improvements, operation and maintenance of parking facilities, roadways, lighting, driveways, public utilities, and landscaping.
Similar to many of the Districts, Park Union will be holding an election on November 4, 2025 to determine if the eligible electors approve a waive of the 5.25% property tax limit. No other majors changes to the operating plan have been proposed aside from the minor decreases in the mill levies. The District anticipates funding the design, installation, or acquisition of public improvements during 2026 as required to support development within the District. At this time, installation of security cameras are 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 originally approved formation of this BID as the SW Downtown Business Improvement District in 2017 (Ordinance No. 17-94) and approved a name change to the Park Union Business Improvement District in 2021 (Ordinance No. 21-88). On the same date in 2017, Council also approved a service plan allowing creation of Southwest Downtown Metropolitan District Nos. 1 and 2. Council approved an ordinance to include additional property into this BID on May 14, 2019 (Ordinance No. 19-26).
On February 11, 2020 Council approved an initial issuance of debt in principal amount of approximately $28,275,000 as Series 2020A and approved future debt issuance of a combined aggregate principal amount of the Series 2020A and subsequently issued bonds not to exceed $50,000,000 (Resolution No. 10-20). In June 2020 the District issued $30,500,000 in Series 2020A bonds, the balance of the aggregate sum authorized by City Council for subsequently issued bonds is $19,500,000 and must be issued on or before February 11, 2024 (4 years after the date of the Resolution). In addition, not less than thirty (30) days prior to any subsequent issuance of bonds for the balance of the aggregate sum authorized, the District shall provide detailed information and an informational update to the City Council. As presented in the 2026 Operating Plan, this BID has the ability to issue additional Limited Tax Supported and Special Revenue Bonds, up to the authorized amount.
This item was introduced in a City Council Work Session on October 13, 2025.
Financial Implications:
In June 2020 the District issued Series 2020A Limited Tax Supported and Special Revenue Senior Bonds in the par amount of $30,500,00. The bonds bear an interest rate of 8% and are subject to optional redemption any time and subject to mandatory redemption on October 15th each year. As described in the 2025 Operating Plan, the District will annually review the interest rates on its bonds regarding market interest rate and evaluate possibilities to refund such bonds to the extent allowed, pursuant to the bond documents. The bonds were issued on a “drawdown” basis so that advances can be made in multiple installments, the initial drawdown was for $15,500,000, and the minimum drawdown amount is $1,000,000, except for the last drawdown. As of June 30, 2023, the total draws were in the amount of $26,500,000 and the District anticipates drawing an additional $4,000,000 during 2024. The bonds are structured as “cash flow” bonds, meaning that no regularly scheduled payments of principal are due on the bonds prior to their maturity date of December 1, 2049. Instead, interest on the bonds is payable on June 1 and December 1, and payments on the principal are payable on December 1 pursuant to a mandatory redemption from available Pledged Revenue, if any. The bonds will be repaid from a combination of limited BID property tax, specific ownership tax along with property and sales/use tax increment financing (TIF) revenues from the overlying urban renewal area. In addition, property taxes from the two related metropolitan districts in the area will be pledged as revenues.
The District anticipates imposing 10.740 mills for operations and maintenance and 21.481 mills for debt service in 2026. This District will also receive tax increment financing (TIF) generated from the District’s projects to be used toward the repayment of the District’s bonds and capital improvements. For 2026, $20, in CSURA TIF Revenues are projected. This BID has a public improvement fee (PIF) in place for 2.0% for retail sales, 4% for lodging, and 1% for construction activities. The PIF revenue is not pledged to bonds, therefore the 2026 PIF revenue of $50,000 is budgeted in the General Fund to be used to support public improvement construction and maintenance.
The District also has entered into an Inter-District Intergovernmental Agreement with SW Downtown Metropolitan Districts No 1. whereby the District is responsible for the development and operation of all public improvements, and the two Metropolitan Districts will assign revenue to offset the expenses incurred by the District. For 2026, $34,102 is projected in intergovernmental revenue.
The District may enter into additional agreements for landscaping, parking facility operation and maintenance, and security to enhance the area within the District as described in the Redevelopment Agreement with the City dated February 11, 2020.
The District estimates an outstanding developer advance balance of $3,931,185 at the end of 2026, which includes principal and interest. Interest accrues at a rate of 6% for operations and 8% for capital advances.
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 2026 Operating Plan and Budget.
Stakeholder Process:
N/A
Alternatives:
N/A
Recommended Action
Proposed Motion:
Approve the Resolution approving the proposed 2026 Operating Plan and Budget for the Park Union Colorado Springs Business Improvement District.
Summary of Ordinance Language
N/A