Title
A resolution of the City of Colorado Springs, Colorado approving the issuance of tax supported and special revenue bonds by the Creekwalk Marketplace Business Improvement District in an amount not to exceed $16,500,000 for a project located at the South Nevada Avenue corridor.
(Legislative Item)
Presenter:
Carl Schueler, Comprehensive Planning Manager, Planning & Community Development
Peter Wysocki, Planning and Community Development Director
Body
Summary:
This is a request to approve issuance of debt by the Creekwalk Marketplace Business improvement District ("District") in the form of Series A and Series B 2021 bonds, to be repaid from a combination of limited property tax, public improvement fee (PIF) and property and sales tax increment financing (TIF) revenues. The Series A bonds will be in a principal amount not to exceed $13,200,000 and the subordinate Series B bonds will be in the approximate principal amount of $3,330,000. The Series A bonds are anticipated to have an interest rate of 5.00 to 5.75%, and the Series B bonds would have a rate of 8.00%. 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.
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 BID is located in City Council District No. 3.
This item was presented to the City Council Budget Committee on October 26, 2021.
Background:
BIDs are created under Colorado Statute and City Policy to finance and/or maintain certain public improvements in non-residential areas, utilizing a property tax mill levy as the revenue source. BIDs are separate legal entities from the City, but their Operating Plans and the Special District Policy require City Council approval of all formal BID debt. The standard of review of the debt instruments is consistency...
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