Title
A Resolution of the City Council of the City of Colorado Springs, Colorado approving the issuance of tax supported and special revenue bonds by the Gold Hill North Business Improvement District
(Legislative)
Presenter:
Kyle Fenner, Senior Planner, Planning and Neighborhood Services
Kevin Walker, Interim Director, Planning and Neighborhood Services
Body
Summary:
This is a request to approve issuance of debt by the Gold Hill North Business Improvement District ("District") in the form of Series A and Series B 2024 bonds, to be repaid from a combination of property tax and tax increment financing (TIF) revenues. The Series A bonds will be in the approximate principal amount of $18,110,000 at 6.5% and the Subordinate Series B bonds will be in the approximate principal amount of $2,996,000 and an anticipated rate of 8.75%.
The 2024 Bonds will be repaid by a debt service mill levy not to exceed 50.0 mills per year, subject to adjustment, and Tax Increment Financing (TIF) revenues from the Colorado Springs Urban Renewal Authority ("CSURA"). The 2024 Bonds will have a 30-year term and will mature in 2054.
The City's Special District Policy and the District's approved Operating Plan and Budget require that City Council's approval be obtained prior to issuing any debt that exceeds 10% of the District's assessed valuation. Approval of this debt issuance will require a 2/3rds majority of the entire City Council (at least six affirmative votes) pursuant to City Charter Section 7-100.
This item will be presented for review at the September 9, 2024, City Council work session.
This item will be presented for action at the September 24, 2024, regular City Council meeting.
Previous Council Action:
The Business Improvement District (BID) was established pursuant to Ordinance 21-62 adopted by Council on August 10, 2021, which approved the initial operating plan and budget ("Operating Plan") for the BID.
Background:
BIDs are created under Colorado...
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