About the CCBID
The City of Central Business Improvement District (“District”) was organized on December 15, 1998 within the commercial area of the City of Central (“City”) to provide various public services and improvements, particularly the completion of the Central City Parkway (“Parkway”) connecting the City street system to Interstate 70, in accordance with the provisions of the “Business Improvement District Act”, Part 12 of Article 25, Title 31, C.R.S. (“Act”), and City Ordinance No. 98-29 (“Ordinance”) establishing the District.
The District electors authorized incurring indebtedness at the TABOR election on November 2, 1999. The Board of Directors (“Board”) of the District was, however, unable to implement the Operating Plan until June 2003 because it could not secure financing for the construction of the Parkway (“Project”) due to a declining property tax base within the District. The Board obtained financing to construct the Parkway in June 2003 through the private placement of its Limited Tax General Obligation Bonds, Series 2003A (“Series 2003A Bonds”) in the principal amount of $45,200,000. Actual construction of the Parkway was commenced in July 2003. The Project was completed on schedule at the contract price of $38,395,000, and the Parkway opened for public use on November 19, 2004.
- Board of Directors:
Current members of the Board are Steve Boulter, Jeff Hentschel, Tom Kiahtipes, Thomas Robb and John Zimpel. The members of the Board were duly elected by the electors of the District or appointed by the City Council and constitute the governing body of the District. Members of the Board must be electors of the District (as defined in the Act). The next election of directors will be held in May 2022. Among other powers, the Board is authorized to enter into agreements affecting the affairs of the District, including without limitation intergovernmental agreements with the City, and to formulate the provisions of this Operating Plan and Budget.
- Operating Plan:
Section 31-25-1211, C.R.S., requires that the District file with the City an operating plan and proposed budget for the next fiscal year no later than September 30 of each year. The information in this Operating Plan and Budget may be amended, modified or supplemented by the District from time to time in accordance with the provisions of the Act.
The boundaries and service area of the District include all commercial property as described in the Ordinance. The commercial businesses within the service area benefit from the services and improvements furnished by the District. District boundaries may be changed from time to time in accordance with the provisions of the Act. City property may be included within the District, including without limitation any Parkway rights-of-way. All Parkway rights-of-way were included into the District by City Ordinance No. 07-01 on February 6, 2007 pursuant to the Act. The City previously established in the Ordinance that any property annexed into or zoned for commercial development in the City must, as a condition of approval, be included into the District.
- Description of Services and Improvements:
As set forth in the Ordinance, the District was organized to provide various services and improvements authorized under the Act, including without limitation streets, streetlights, landscaping, and pedestrian malls, together with curb, gutters, drainage facilities, sidewalks and other improvements (“Improvements”). The primary purpose of the District is to facilitate the financing, completion and operation of the Parkway. The District has completed the Parkway and other Improvements in cooperation with the City and other public agencies. The Parkway has been installed within City rights of-way and is operated and maintained by the City in accordance with the Intergovernmental Agreement dated January 11, 2001, as amended by Amendment No. 1 to Intergovernmental Agreement dated April 1, 2003 and Amendment No. 2 to Intergovernmental Agreement dated November 9, 2004 (together, “IGA”), between the City and District.
Under Amendment No. 2 to the IGA, the City and District cooperated in completing certain Parkway enhancements, including Parkway lighting, rumble grinding, additional guardrails, a maintenance building, and improvements to the intersection of Nevada, Main, Spring and Bride Streets. The City funded the Parkway lighting enhancement and the maintenance building used for snowplows, equipment and materials, and the District funded the other enhancement projects and completed all of the enhancement projects in accordance with plans approved by the City.
The District may provide any services authorized under the Act, including without limitation the maintenance of Improvements, the management of transportation services, the promotion or marketing of District activities, and the promotion, marketing and management of public events within the District (collectively, “Services”). The Board may authorize and implement a program of Services which generally benefit commercial properties within the District.
During 2021, it is anticipated that various transportation-related services, public events and promotional activities relating to the Parkway and the business area may be coordinated by the District, provided that sufficient funding is available. If other Services not specified in the Budget are approved by the Board, the Operating Plan and Budget will, if necessary, be supplemented with a more specific identification of such Services. All Services and Improvements provided by the District shall generally conform so far as practicable to this Operating Plan and Budget.
Costs of Improvements:
The cost of the Parkway, including rights-of-way and other Project-related expenses (such as costs of District organization, issuing Bonds, capitalized interest, permitting, and enhancement projects), was approximately $45,200,000. The City has assumed operational responsibility for the Parkway in accordance with the IGA.
- Financing Plan:
At the public election on November 2, 1999, District electors approved a ballot question to incur indebtedness in the amount of $45,200,000 at a rate not to exceed 7.75% for the purpose of financing the completion of the Parkway. At the public election on November 6, 2001, District electors approved a ballot question effectively authorizing an increase in the interest rate on such indebtedness to 9.75% to reflect then current market rates for similar securities.
On June 18, 2003, the District issued its Series 2003A Bonds to finance the Project in accordance with the terms of the Indenture of Trust dated as of June 18, 2003 (“Bond Indenture”). The Series 2003A Bond proceeds were used as follows: (i) $39,395,000 for Project completion, including payments due under the Ames Agreement; (ii) approximately $5,100,000 for Project-related expenses and capitalized interest on the Series 2003A Bonds; and (iii) $705,000 for costs of issuance of the Series 2003A Bonds.
In order to comply with debt service requirements of the Bond Indenture, the Board must impose property taxes against all taxable commercial property within the District at a levy of 80 mills (the “Limited Mill Levy”) until such time as (a) the assessed valuation of all taxable property within the District is at least $70,000,000 and (b) all interest accruals and unpaid principal amounts due on the Series 2003A Bonds have been made current, at which time the mill levy may be reduced. Any unpaid interest on the Series 2003A Bonds is accrued (at the bond interest rate of 9.75%) until payment can be made in accordance with the terms of the Bond Indenture. The total principal and interest repayment authorization for the Series 2003A Bonds has been reached in the amount of $114,000,000, and no further interest will be accrued. As long as the Limited Mill Levy is imposed, there can be no default on the Series 2003A Bonds because of insufficient debt service funds.
The District may also assess fees and other charges, if appropriate, to pay for the Improvements and Services provided by the District. The District may raise revenue by any other authorized means. No debt incurred by the District shall constitute a debt of the City, and no property outside the boundaries of the District will be responsible for the repayment of the Series 2003A Bonds.
Property taxes will be levied in the 2021 tax collection year (i) at the rate of 80 mills in order to pay in part the interest due on the Series 2003A Bonds in accordance with the terms of the Bond Indenture and (ii) at the rate of 5 mills for operating purposes per the electoral authorization obtained at the public election on May 8, 2012. Any unpaid interest on the 2003A Bonds will accrue until paid in full. As preliminarily reported by the Gilpin County Assessor, the assessed valuation of all taxable real and personal property within the District for 2020 collectible in 2021 is $18,958,153 (down from $19,436,737 in 2020). The Board may amend, modify or supplement the Operating Plan and Budget as presented herein at any time as necessary to balance District budgetary requirements with available District revenues, including without limitation any adjustments necessitated by changes in the assessed valuation of properties within the District as certified by the County Assessor.
The proposed Budget for the 2021 fiscal year is based upon the following assumptions: (i) a property tax of the full Limited Mill Levy (80 mills) in accordance with the terms of the Bond Indenture and (ii) a property tax of 5 mills for operations. The District has had discussions with representatives of the owners of the Series 2003A Bonds regarding restructuring of the bonds. At this time, there is not sufficient certainty that the Series 2003A Bonds will be refinanced.