Title
A Resolution of the City Council of Colorado Springs, Colorado Approving the Proposed 2025 Operating Plan and Budget for the Interquest South Business Improvement District
Presenter:
Allison Stocker AICP, Planner II, Planning Department
Kevin Walker, Interim Director, Planning Department
Body
Summary:
The Interquest South 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 District imposed 1.00 mill for operations and maintenance and 5.00 mills for debt service in 2024. In 2025, the District anticipates imposing 1.00 mills for operations and maintenance 5.00 mills for debt service in 2025. However, there are no additional debt issuances, boundary changes, or planned improvements. This BID will continue servicing outstanding debt and perform operations and maintenance functions.
Background:
The boundaries of this development-specific BID were initially established pursuant to an election in 2004. This BID has an elected board, comprised of developers associated with this property. The District is authorized to provide the acquisition and financing of improvements, construction of improvements, operation and maintenance of parking facilities, roadways, lighting, driveways, public utilities, and landscaping.
This Operating Plan and Budget notes that the District completed the construction of public improvements in 2022 therefore does not anticipate development activity in 2025.
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 formation of this BID in 2004 (Ordinance No. 04-238) and has approved the BID Operating Plan and Budget annually since its formation. In September 2015, Council approved a series of three ordinances and one resolution authorizing exclusions of certain property, inclusions of other property, and allowing for the temporary appointments of two directors for this otherwise elected board of directors. In 2017, City Council approved the temporary appointment of two additional directors, thereby allowing for the total membership to be increased to four individuals.
Council subsequently approved an ordinance to exclude certain property on November 14, 2017 (Ordinance No. 17-103) and authorized the issuance of up to $4,000,000 in debt in the form of a bond issuance on October 24, 2017 (Resolution No. 116-17).
This item was introduced in a City Council Work Session on October 7, 2024.
Financial Implications:
The District issued $4,000,000 in Limited Tax General Obligation Bonds, Series 2017 to fund public improvements, pay bond issue costs, fund an initial deposit to the Surplus Fund, and fund capitalized interest. The proposed mill levy for the BID in 2025 is 6.000 mills (1.000 mill for general expenses and 5.000 for debt service). The mill levy has no change compared to 2024. The pledged property taxes for these bonds are capped at no more than 50.0 mills.
Some or all of the properties associated with this BID have a public improvement fee (PIF) covenant in place for up to 1.5%. This Operating Plan and Budget includes a PIF of 1.5% to be used for payment of the District’s Series 2017 Special Tax Revenue Bonds, except for $140,482.00, which is to be transferred in 2025 to the General Fund for operations and maintenance funding, the amount transferred will increase by 1% each year. For 2025, $375,000 in PIF revenues are projected.
The District has outstanding developer advances with three developers which are estimated to total $650,540.00 at the end of 2024. The advances accrue interest at a rate of 7% or 8% depending on the developer owed. As of December 31, 2024, the accrued interest on the developer advance balances is estimated to be $4,649,588 including principal and interest.
This Operating Plan and Budget indicates this BID owns and operates parking facilities and certain street improvements, and their budget includes expenditures for maintenance of these.
As a separate legal entity, the financial activities of the BID are separate from those of the City, such that any current or future financial obligations of the BID would be specific to the property in this BID and would not be 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 to approve the proposed 2025 Operating Plan and Budget for the Interquest South Business Improvement District.
Summary of Resolution Language
N/A