Title
A Resolution of the City Council of Colorado Springs, Colorado Approving the Proposed 2025 Operating Plan and Budget for the Interquest Town Center Business Improvement District
Presenter:
Allison Stocker AICP, Planner II, Planning Department
Kevin Walker, Interim Director, Planning Department
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 2025 Operating Plan and Budget for the BID.
The Operating Plan and Budget for this BID anticipates increasing its mill levy in 2025. The District imposed 5.218 mills for operations and maintenance and 41.751 mills for debt service in 2024. The District anticipates imposing 5.229 mills for operations and maintenance and 41.839 mills for debt service in 2025. Other than the mill levy change the District does not anticipate any additional debt issuances or boundary changes, however, the District does have a Board vacancy that they anticipate filling in 2025. 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 2025. 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 2025. 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 2025, including street improvements, water and wastewater improvements, and transportation projects. The District anticipates providing landscaping services in 2025.
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 7, 2024.
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 Operating Plan and Budget for this BID anticipates increasing its mill levy in 2025 The District imposed 5.218 mills for operations and maintenance and 41.751 mills for debt service in 2024. The District anticipates imposing 5.229 mills for operations and maintenance and 41.839 mills for debt service in 2025. This BID also levies a public improvement fee (PIF) of 1.5% on the sale of goods and services. For 2025, $170,000 in PIF revenues are projected.
The District estimates an outstanding developer advance balance of $115,003 at the end of 2024, which includes both the principal and interest. Interests accrues interest at a rate of 8%.
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:
N/A
Stakeholder Process:
N/A
Alternatives:
N/A
Recommended Action
Proposed Motion:
Move to approve the Resolution approving the proposed 2025 Operating Plan and Budget for the Interquest Town Center Business Improvement District.