Title
A Resolution of the City Council of Colorado Springs, Colorado Approving the Proposed 2027 Operating Plan and Budget for the GSF Business Improvement District.
Located in Council District #3
Presenter:
Drew Foxx, Planner II, City Planning Department
Kevin Walker, Planning Director, City Planning Department
Body
Summary:
The GSF 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 BID anticipates the District will primarily be engaged in early development and public improvement planning activities in 2027, and does not plan on certifying a mill levy for collection in 2027.
Background:
The District was organized in 2021 and 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 a five-member elected Board of Directors. The boundaries of this BID encompass about 23 acres located southeast of the intersection of South El Paso Street and East Pikes Peak Avenue and west of South Institute Street. The District does not anticipate any inclusion or exclusions of property in 2027.
This Operating Plan and Budget allows 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. Currently, the District imposes a mill levy of 0.00 for both operational and maintenance mill levy, and debt mill levy. The District does not anticipate certifying mill levy in 2027. Additionally, this BID proposes to make use of public improvement fee (PIF) revenues as an additional source of revenue for bonding. The nature and amount of these PIF is not specified currently and is not budgeted in the 2027 budget. The initial maximum debt authorization for the District shall be $83,100,000, and this maximum amount is the aggregate debt authorization for the District and the GSF Metropolitan District Nos. 1 & 2, which were formed in conjunction with the District. There is presently no debt and no intentions of issuing debt in 2027.
The District’s voters approved the waiver of the 5.25% property tax limit as set forth
in C.R.S. § 29-1-1702 at an election held on November 4, 2025. A regular election is
scheduled for May 4, 2027.
The District entered into various agreements necessary to facilitate the funding, construction, operation, and maintenance of public improvements. The District entered into an Inter-District Intergovernmental Agreement with GSF Metropolitan District Nos. 1 & 2 on May 21, 2021, whereby the District is responsible for financing, constructing, maintaining, and operating the public improvements and the GSF Metropolitan District Nos. 1 & 2 shall assign revenues to the District to offset the expenses of the construction of the public improvements and the District’s costs of operating and maintaining such public improvements. Additional agreements have also been made with Nor’Wood through a Facilities Funding and Acquisition Agreement and a Reimbursement Agreement (Operations). Both agreements were made on May 21st, 2021. However, the 2027 operating plan does not anticipate major development activity, valuation changes, and the District will be primarily engaged in public improvements planning.
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 April 2021 (Ordinance No. 21-35).
This item was introduced in a City Council Work Session on October 12, 2026.
Financial Implications:
The District does not have any existing debt and does not anticipate issuing debt in 2026. The combined maximum debt authorization for this BID and the GSF Metropolitan Districts 1 & 2 is $83,100,000. As noted in the District’s 2026 Operating plan and Budget the total amount of the cost of the proposed Public Improvements will be allocated between the 3 Districts as appropriate.
The District had a total of $222,292in principal and $38,957 in interest in developer advances at the end of 2025, which accrues interest at a rate of 8% per annum. The 2026 budget includes $39,600 in developer advances to fund operation of the BID. At the end of 2026, it is anticipated that the District will have an outstanding developer advance obligation in the amount of $248,028 in principal and $57,770 in interest. By the end of 2027, the total anticipated developer advance amount in principal and interest will be $372,440. The District anticipates developer funding for initial revenue sources and thereafter revenue derived from property tax and public improvement fees.
In past years, the District has budgeted for intergovernmental revenue from the GSF Metropolitan District No. 1. This revenue is from property taxes generated from the mills levied by the Metropolitan District for operations and maintenance and will be transferred to the BID which pays for all administrative expenses of the Metropolitan District. In 2027, the District does not budget for any intergovernmental revenues.
The District will not certify a mill levy for collection 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:
Enter stakeholder process. Enter N/A if not applicable.
Alternatives:
Enter alternatives. Enter N/A if not applicable.
Recommended Action
Proposed Motion:
Approve the Resolution approving the proposed 2027 Operating Plan and Budget for the GSF Business Improvement District.
Summary of Ordinance Language
N/A