Dos Rios board rejects Confluence Center PILT exemption request, motion fails 5–1

Grand Junction — The Dos Rios General Improvement District board declined a request from the Confluence Center of Colorado Inc. to exempt nonprofit tenants from payment‑in‑lieu‑of‑taxes (PILT), voting against a motion to grant the exemption at its Dec. 3 meeting.

Rusty Lloyd, president of the Confluence Center board, asked the board to exempt the center from PILT or to support annual relief, saying nonprofits could be ‘‘crushed’’ if the mill levy rose substantially in the event of a development default. ‘‘Those precious small resources that we have as nonprofits can go towards programming, and can go to the community benefit that was at the premise of this project,’’ Lloyd said.

John Gormley, chairman of 1 Riverfront/Colorado Riverfront Foundation and a Confluence Center board member, noted the group understands why the covenant was written to protect bondholder revenues but asked the board for relief because the project has developed more slowly than expected.

City staff and legal counsel cautioned that the Dos Rios covenants include a PILT covenant intended to preserve revenue pledged to bondholders. City Attorney staff said an exemption is possible under the covenant language but could trigger ‘‘material event’’ reporting to municipal securities regulators and complicate bond‑security arrangements. City Manager Mike Bennett said staff could not recommend waiving or fulfilling PILT obligations unilaterally because of the structure of the financing and potential impacts on bondholders.

Board discussion noted the difference between making a one‑time city payment on behalf of the center and adopting a formal exemption; the chair requested clarity and a properly framed motion. A motion to grant the exemption was moved and seconded; the board verbally recorded votes and the motion failed by a 5–1 margin.

Financial note: Confluence representatives estimated that a neighboring for‑profit facility had an assessed value near $1.6 million and paid roughly $2,500 in PILT; they acknowledged uncertainty in how the Confluence Center would be assessed. City staff emphasized that the GID’s debt service in 2026 is expected at $940,150 and that the GID will cover roughly $81,000 while the city will cover approximately $859,089 from sales tax capital funds.

The board did not adopt an exemption. Confluence representatives said they appreciate city support and will continue seeking ways to reduce operating costs and secure community funding.

Sources: presentations by Confluence Center representatives Rusty Lloyd and John Gormley; staff presentation by City Manager Mike Bennett and CFO Jay Valentine; board vote recorded Dec. 3.