Boulder considers Downtown Development Authority to boost economic growth and funding

In a recent Boulder City meeting, officials discussed the potential establishment of a Downtown Development Authority (DDA) aimed at revitalizing key areas of the city, particularly downtown and The Hill. Central to this proposal is the concept of tax increment financing (TIF), a unique revenue source that allows the city to capture future increases in property values and sales tax within a designated area without raising taxes for residents.

Tax increment financing is particularly relevant in light of current economic challenges and tax fatigue among residents. The DDA could enable Boulder to reinvest any revenue increases generated from property and sales taxes back into the community, fostering growth and development. This approach is seen as a necessary economic stimulus, especially since sales tax and property values have stagnated in recent years.

The proposed DDA could encompass a broad area, including connections between downtown and The Hill, and even extend to the Alpine Balsam area. Officials noted that the DDA could also implement a mill levy, allowing for an additional five mills to be collected, which could potentially consolidate existing improvement districts and streamline funding for community projects.

In addition to the DDA, alternative revenue strategies were discussed, including the possibility of "debrucing" to increase the mill levy, which would require a vote from affected property owners. Another option is the introduction of a public improvement fee (PIF) on sales tax, similar to what is seen at local shopping centers, which would also necessitate a vote.

The meeting highlighted the importance of addressing the visitor experience in Boulder, particularly with new hotels opening in the area. A recently approved lodging business assessment area could provide additional funding to enhance this experience, suggesting that a portion of the revenue generated from hotel stays could be directed towards improving amenities and services for visitors.

As Boulder considers these options, the focus remains on fostering economic growth while ensuring that any new measures are supported by the community. The discussions from this meeting will play a crucial role in shaping the city's financial strategies moving forward, with the potential for significant impacts on local residents and businesses alike.