Title
A Resolution of the City Council of Colorado Springs, Colorado Approving the Proposed 2027 Operating Plan and Budget for the Gold Hill North Business Improvement District.
Related Files: N/A
Located in Council District #3
Presenter:
Drew Foxx, Planner II, City Planning Department
Kevin Walker, Planning Director, City Planning Department
Body
Summary:
The Gold Hill North 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 2027 Operating Plan and Budget for the BID.
The Operating Plan and Budget for this District states that the District will continue to be engaged in improvements planning in 2026 and 2027, improvements continue to be under construction such as grading, storm, sanitary sewer, landscaping, streets and alleys. The costs of these improvements will be allocated between the District and Gold Hill North Metropolitan Districts Nos. 1 & 2. The District will certify an operations and maintenance mill levy of 11.153 mills for 2027 and 55.769 mill levy toward debt service. The District does not anticipate issuing Debt in 2027 and does anticipate developer funding for initial revenue sources and thereafter revenues derived from property taxes and potentially from public improvement fees if imposed by the Board. No additional boundary changes are anticipated in 2027.
Background:
The District was organized in 2021, a special election for the District, consisting of debt and related issues and questions was held on November 2, 2021. The District is governed by an elected board of directors. The boundaries of this BID encompass about 52.346 acres initially; however, the District has had several inclusions and exclusions over recent years bringing the new acreage of the District to approximately 50.648 acres. The District is located southeast of the intersection of Interstate 24 and South 21st Street.
This District intends to be engaged in improvements planning and infrastructure through 2027 such as: water services, sanitation services, street improvements, drainage facilities, grading, landscaping, and storm and wastewater management facilities. These services shall be provided by the District in collaboration with the Gold Hill North Metropolitan Districts Nos. 1 & 2 pursuant to an Intergovernmental District Facilities and Construction Service Agreement and with the Colorado Springs Urban Renewal Authority pursuant to the Urban Renewal Agreement for development of the Gold Hill Mesa Commercial Urban Renewal District.
This Operating Plan and Budget allow for a mill levy cap of up to 50.000 mills for debt service and up to 10.000 Mills for general operations and administrative expense. However, in 2027 the District will be certifying an estimated operating mill levy of 11.153 mills for operation services and is imposing a mill levy of 55.769 for debt service. This BID proposes to make use of public improvement fee (PIF) revenues as an additional source of revenue for bonding. The District is contemplating using a PIF in 2027, and if imposed is anticipated to bring in an additional $5,000 dollars of revenue in 2027.
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 2021 (Ordinance No. 21-62).
An inclusion, an exclusion and an issuance of debt were presented to City Council on September 23, 2024, work session. This issuance of debt was approved by City Council by resolution on October 8, 2024. Both the inclusion and exclusion were heard by City Council on October 22, 2024, and approved via Ordinance No. 24-91 and 24-92, respectively
Since that time, an additional exclusion was completed via Ordinance No. 25-44 in April 2025. This exclusion was completed to correct an error in the land included in the District and excluded approximately 0.041 acres / 1,767 square feet of land.
This item was introduced in a City Council Work Session on October 12, 2026.
Financial Implications:
On December 19, 2024, the District issued Series 2024A Limited Tax General Obligation and Special Revenue Bonds (“Series 2024A Bonds”) in the amount of $22,100,000 and 2024B Subordinate Limited Tax General Obligation and Revenue Bonds (“Series 2024B Bonds”) in the amount of $2,345,000. The Series 2024A Bonds will bear interest at a rate of 5.600%, and the Series 2024B Bonds will bear interest at the rate of 8.000% per annum. The Series 2024A Bonds have accrued interest in the amount of $412,533, and the Series 2024B Bonds have accrued interest in the amount of $346,336. The Series 2024A Bonds mature on December 1, 2054, and the Series 2024B Bonds mature on December 15, 2054. The District may enter into agreements with other districts encompassing adjacent developments to cooperate on infrastructure projects. Intergovernmental revenue is transferred into the District from Gold Hill North Metropolitan District Nos. 1 & 2 to pay operation and maintenance and administrative expenditures. The combined maximum debt authorization for this BID and the Gold Hill North Metropolitan District Nos. 1 & 2 is $90,000,000.
At the end of 2026, it is anticipated that the District will have an outstanding developer advance obligation to AIPA Colorado Investments, LLC in the approximate amount of $162,164 in principal and $57,034 in interest. At the end of 2026, it is anticipated that the District will have an outstanding developer advance obligation to Gold Hill Development, LLC in the approximate amount of $1,398,923 in principal and $59,101 in interest. By the end of 2027, the District anticipates approximately $7.2 million in principal and interest for all developer advancements.
The District does not anticipate issuing Debt in 2027.
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 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 Gold Hill North Business Improvement District
Summary of Ordinance Language
N/A