Boulder staff to recommend permanent outdoor-dining code after pilot shows revenue gains

Boulder staff told the Downtown Management Commission on Jan. 14 that the city will prepare ordinance language to make the outdoor-dining pilot permanent after seeing early positive results.

Regan, Community Vitality staff member, said the city’s outdoor dining program is a five-year pilot that currently expires in October 2027 and that staff plan to present recommended code changes to City Council later this year. "It is available to businesses in the public right of way, on-street parking spots or on the Pearl Street Mall, as well as on private property," Regan said.

The pilot allows businesses either to lease infrastructure from a city vendor, ModStreet, or to build or purchase their own compliant parklet infrastructure. To assess the program, staff surveyed current participants; 12 of the 21 active program participants responded, and respondents reported an average 7.3% increase in business revenue and that the cohort collectively hired 14 new employees.

Why it matters: the city will seek to convert a temporary, locally managed program into a permanent regulatory framework. That step would change how downtown streets and sidewalks are used and set long-term rules for structures in the public right of way.

Key changes staff plan before Council

- Move from a single annual application window (Feb. 1–March 1) to a rolling application to give businesses more time to complete paperwork and accommodate manufacturing timelines. - Update and simplify program guidelines so lighting, heating, maintenance and similar requirements are clearer to applicants. - Code/ordinance work: staff will prepare ordinance language and consult with the city attorney’s office before returning to Council later this year. - Vendor lead times: ModStreet historically quoted 6–12 week lead times; staff said ModStreet now outsources production of standard items and has promised a six-week turnaround for standard, approved applications—staff will include that expectation in guidance to applicants.

Discussion vs. decision: staff characterized these as program improvements and a path toward a permanent ordinance; the commission did not take formal action or vote on language at the Jan. 14 meeting. Staff said they will launch the new rolling application process beginning Feb. 1 and that lease terms for city-leased parklets remain three years, with renewals handled via fee payment rather than full reapplication.

Clarifying details and figures discussed at the meeting: the pilot runs through October 2027; survey respondents were 12 of 21 current participants; respondents reported an average 7.3% increase in revenue and 14 net hires; ModStreet lead times had ranged from 6–12 weeks but staff said ModStreet now promises six-week turnaround for standard products.

Next steps: staff will finalize ordinance language, implement a rolling application format in February and return to Council with recommendations later in 2025.