Jamie Giellis with the Denver-based city planning consulting firm Centro Inc. gave a presentation on the proposed ordinance to create a Downtown Development Authority (DDA) for Old Colorado City (OCC) to the Colorado Springs City Council at their work session on June 24.
The draft ordinance was crafted under the guidance of Giellis after The Old Colorado City Partnership (OCCP) raised funds to hire Centro Inc. to look at recommendations from the 2018 Downtown Colorado Inc. assessment and provide guidance on implementing the recommendations related to OCC’s funding and organizational structure. The OCCP also formed a steering committee that is working with Giellis on the project.
How the DDA was chosen
In her presentation to city council, Giellis recapped the process that led her to recommend the DDA as the tool to revitalize OCC.
To engage stakeholders, Centro Inc., on behalf of OCCP, mailed a survey to property owners and registered voters within those boundaries, and held informational meetings this spring for residents, business owners and property owners, as well as OCC-related board members and city of Colorado Springs staff.
From that stakeholder engagement, a vision for OCC emerged: essentially, a walkable and safe historic Main Street with a mix of eclectic, local businesses.
Residents as well as commercial property and business owners identified parking as major issue. Another big concern identified by both residents as well as commercial property and business owners was addressing homelessness. Business and commercial property owners also expressed concern with the leadership and marketing of OCC. Stakeholders also identified major infrastructure needs.
Giellis, the steering committee and other stakeholders looked at several tools to implement the needed improvements stakeholders identified, including a Business Improvement District and a General Improvement District.
Giellis said some people had asked about expanding the existing Downtown DDA or Downtown BID, which Giellis explained is “a lot more complicated than it sounds” and would not best serve stakeholders.
“What the OCC stakeholders want is their own voice,” she said. “The needs are different there.”
Ultimately, Giellis said, she recommended the OCC DDA structure because of the flexibility DDAs have in the types of projects they can do and the types of funding they may use.
Expanded DDA boundaries
In the presentation to city council, the proposed boundaries of the DDA had expanded significantly from the original draft ordinance that was filed with the City of Colorado Springs. Originally, the boundaries were North 31st Street on the west; West Pikes Peak Avenue on the north; Interstate 25 on the east; and West Cucharras Street on the south.
The proposed boundaries that were presented to city council – and which will likely be at least very close to what goes into the final ordinance that may head to voters – are roughly:
• I-25 to the boundary with Manitou Springs
• Properties immediately adjacent to Colorado Avenue, plus properties in the current OCC Special Improvement Maintenance District areas, management of which will be taken over by the DDA if it goes into effect
• Additional commercial areas at the I-25 Gateway
Funding the DDA
The DDA would be funded by Tax Increment Funding, which does not take from the current city budget, but rather uses funds from future property and sales tax growth – as well as mill levies, a form of property tax based on assessed value. One mill is equal to $1 per $1,000 of assessed value. A DDA is capped at 5 mills, according to Giellis.
Giellis explained to the city council that once the DDA is formed, there will be a negotiation with all the entities that receive property and sales tax: the DDA, schools, the city and the county, with separate TIF agreements made with each of them as to the percentage share that each will take over the life of the DDA.
Giellis pointed out that a benefit to this property and sales tax funding is that it keeps funds generated by both residents and visitors in OCC to be used for OCC.
The proposed ordinance could have a first reading as early as the regular city council meeting on July 9 and a final reading and public hearing on July 24. If council passes it, it would go to voters within the OCC DDA borders in a separate ballot mailed out for the November election.
The cost for owners at 5 mills
In her presentation, Giellis showed a slide breaking down the cost for a typical residential owner and typical commercial owner.
The slide read that there are 266 residential parcels representing $8.7M of Assessed Value (AV) in the boundaries, with an average AV of $32,706 (and actual value of $488,149). At 5 mills, that would be an assessment of $136 per year.
We must do something. – COS City Council Member Michelle Talarico
The slide said there are 346 commercial parcels representing $47.5M of AV, with the AV of a commercial parcel being $137,283 (and actual value of $473,390). At 5 mills, that would be an assessment of $686 per year.
The DDA board
As the ordinance is currently written, the DDA board is comprised of 11 members: one member of city council who represents the area, plus ten members who are residents, landowners, or business lessees within the boundaries of the DDA.
Giellis recommended the council codifying seats to ensure a representative mix of stakeholders.
Giellis told the Bulletin that it was possible initial board members would be named in the ordinance; this is pending legal review.
Questions, concerns and comments
Council members had some questions and concerns. The city council does not take public comment at workshops.
Concerns expressed by council included the relatively few residents within the proposed DDA boundaries who had responded to surveys or attended a meeting, especially with property and sales taxes being involved.
Giellis agreed that outreach was key.
“There’s a lot of work to be done in voter outreach and education,” she said. “That work starts now and continues to Election Day.”
Jay Gust of Ascent Restaurant Group – who owns the popular Old Colorado City restaurant Pizzeria Rustica, amongst others – attended the work session and spoke with the Bulletin after the DDA presentation.
“I love the idea of getting funds to be used in the area they are created,” he said, citing “opportunities for positive growth” in areas including public safety, parking, and wayfinding.
“From the options that I’ve seen, the DDA is the right tool,” he said.
Council member Michelle Talarico – who represents the district which includes OCC – told the Bulletin she fully supports the intention of the ordinance.
“Regardless of the decision on whether to move ahead with the DDA being the tool that we use, I absolutely 100% believe it’s time for OCC to move ahead in some way,” she said. “We continue to fall behind in public safety, our business is down…our residents deserve to feel safer.”
“I think there is a perception that OCC is tired right now,” she continued. “That saddens me because there are so many amazing possibilities for OCC. We must do something.”
Talarico said she was proud of OCCP President Sara Vass and all the people who raised money to hire Centro Inc. and “start the conversation.”
“I am willing to do what I can as a representative of this district,” she said.
Giellis said she appreciated the discussion with council at the work session, and expressed hope that the ordinance would have an initial reading at the July 9 regular city council meeting.