Boulder staff outline four economic‑development tools to address vacancies, including a downtown development authority and CHIPS zone

City staff asked the Boulder City Council on July 24 for guidance on four proposed economic‑development initiatives designed to address commercial vacancies and support business vitality: continued exploration of a downtown development authority (DDA), restructuring the Boulder Urban Renewal Authority (BURA), applying for a CHIPS zone designation, and an expanded, criteria‑based economic‑development incentive program.

The presentation, led by Assistant City Manager Mark Wolf and economic vitality staff, framed the measures as tools the city can use to support commercial vibrancy, help recruit and retain businesses, and align investments with local equity and sustainability values.

Why it matters: Council identified economic vitality as a priority earlier this year and asked for concrete, actionable steps. The initiatives discussed would create new legal and financial mechanisms that could be used to fund streetscape upgrades, maintenance, programming, and incentives for redevelopment, which staff argued could help blunt declining sales‑tax growth and commercial vacancies.

Four initiatives and next steps - Downtown Development Authority (DDA): Staff is contracting a feasibility study and financial modeling with consultants (PUMA). A planning group of property owners, tenants, residents and partners will be convened. Staff plans extensive stakeholder engagement through late 2025 and to return to council in Q2 2026 with feasibility findings and an initial proposal; if feasible and supported, a DDA proposal could go to voters in November 2026.

- Boulder Urban Renewal Authority (BURA) update: Staff proposed research and a plan to bring BURA’s structure into compliance with current state rules, add commissioners (including other taxing‑authority representatives), and create a path to consider additional urban renewal areas. A detailed proposal on scope, authority and appointment process is planned for early 2026.

- CHIPS zone application: Staff described potential benefits from state and federal incentives for quantum, semiconductor and advanced‑industry companies. The city intends to return to council within weeks with more detail and, if directed, would bring a resolution to apply for a state CHIPS zone designation.

- Expanded economic‑development incentive program: Staff proposed a citywide, criteria‑based program to supplement the existing flexible rebate program (currently budgeted at $150,000/year and historically producing estimated returns of about 10:1). The expanded program would delegate day‑to‑day review to staff, tie individual incentives to measurable outcomes (fee waivers, other forms), and report regularly to council. Staff suggested eligibility criteria could include reducing vacancy, advancing sustainability, supporting wages and workforce development, promoting equity, and supporting targeted industries (creative industries, advanced industries, local food and agriculture were discussed by council).

Council feedback and concerns Council members generally welcomed the specificity and speed of staff work and asked clarifying questions about program geography (staff said the incentive program is intended to be citywide but incentives based on city fees apply only inside city limits), sequencing (staff said some work can proceed in parallel), and governance details such as potential impacts on other taxing entities. Several council members urged faster timelines, stressed that criteria should reflect wages and equitable hiring, and asked staff to consider incentives for converting vacant upper‑floor commercial space to housing and to study when ground‑floor retail requirements may be counterproductive.

Staff requested council guidance on priorities and said they would return with refined proposals. Mark Wolf closed by saying the four initiatives are a significant lift and will require additional council actions and staffing once council provides direction.