Council considers expanding Exchange Place special improvement district amid questions over notices, scope and timing

City officials and special-improvement-district representatives spent more than an hour on Tuesday discussing an ordinance to expand the Exchange Place Alliance Special Improvement District’s boundaries and to authorize a district management corporation, but did not vote on the measure.

At the caucus meeting, city staff described the ordinance (City Ordinance 25-020) as a step to create a management entity and to assess a subset of high-value properties in the Exchange Place/Journal Square area to help fund a cultural arts facility and related programs. Administration staff said the draft would specially assess roughly 85 high-value parcels and that broader notice had been distributed to about 1,300 property owners in the proposed district.

The exchange drew repeated questions from council members and attorneys representing nearby stakeholder groups about who was being noticed, whether the proposed boundary overlapped the Historic Downtown SID, and whether property owners had been given a clear timeline. Patrick Conlin, counsel for Exchange Place Alliance, told the council the alliance had reviewed maps and reached out to property owners. Gerard Pizzillo, counsel for the Historic Downtown SID, said his client had not had a chance to meet with Exchange Place Alliance representatives and requested a SID-to-SID meeting before the ordinance returns for further consideration.

Council members pressed the administration for clearer communications to avoid confusing notices (some letters said a property would be assessed; other notices said it would not). City staff said earlier rounds of notices had been sent; one staff speaker said notices for a stakeholders meeting had been mailed about 22 days before that event. Staff also said a suggestion to delay assessment implementation until Jan. 1, 2026 could be added to the ordinance language for clarity.

City staff estimated the order of magnitude of potential assessments: a property assessed at about $4 million might see roughly $2,000 annually, while very large parcels could be charged significantly more. Staff said the district would be managed by a board that initially would be appointed, with later board membership transitioning to district representatives.

Council members repeatedly asked that attorneys and SID leaders meet to confirm maps and outreach before a final vote. The council scheduled a public hearing on the ordinance for its regular meeting on Thursday; members said they would hear public comment at that time and then decide whether to carry or vote the measure.

No final action was taken on Tuesday; council members left the item for the upcoming public hearing so residents and affected property owners can comment.

For now, the ordinance remains at first reading and the administration said it would circulate the list of affected parcels and work to set a SID-to-SID meeting before the Thursday hearing.