Agenda Date: 10/15/2024
Subject:
Title
Resolution 110-2024: Amending the 2023-2024 Mineral Business Improvement District Operating Plan and Budget
Body
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From: |
James L. Becklenberg, City Manager |
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Prepared by: |
Reid Betzing, City Attorney |
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Presentations: |
Laura S. Heinrich, Spencer Fane LLP, Attorney for Mineral BID |
PURPOSE:
The Mineral Business Improvement District is requesting an amendment to increase the $20,000,000 debt limit that was originally approved in the approved 2023-2024 operating plan and budget.
LONG-TERM OUTCOME(S) SERVED:
High-Quality Governance
DISCUSSION:
The most recent pro forma for the District and preliminary bond issuance estimates indicate that the District has a higher debt capacity that originally approved. This proposed increase will allow for the District to finance a greater portion of the public improvements necessary to support the Development. Based on that analysis the District is proposing to increase the $20,000,000 debt limit to $30,000,000. Amendments to the operating plan and budget require Council approval pursuant to CRS Section 31-25-1211. This amendment is needed as the District wishes to issue bonds later this month.
BACKGROUND:
On September 19, 2023, council approved the formation of the Mineral Business Improvement District along with their 2023-2024 Operating Plan and Budget.
FISCAL IMPACTS:
There are no fiscal impacts for the city. Business Improvement Districts debts are the responsibility of the District and are paid by the property owners within the District.
STAFF RECOMMENDATION:
Staff recommends approval, as there is no financial impact on the city and the amendment will strengthen the District’s position and likelihood of successfully implementing this important project for the community.
ALTERNATIVES:
Council could not approve the amendment which would require the District to reevaluate its debt issuance.
PROPOSED MOTION:
Proposed Motion
I move to approve Resolution 110-2024 amending the 2023-2024 Mineral Business Improvement District Operating Plan and Budget.