Boulder Junction commissions pursue Phase 2 strategy as debate intensifies over parking mill levy and developer-led Pearl Arts District

City staff briefed the Boulder Junction Access District (BJAD) Parking and Travel Demand Management commissions on May 20 on a proposed Phase 2 strategy that could combine urban renewal, a commercial metropolitan district and continued use of general improvement district tools to catalyze development east of the railroad tracks.

The presentation described a condition (blight) survey for a study area around Phase 2 that identified eight statutory 'blighting factors' — state criteria city staff said would make the area eligible for urban renewal if the Bureau accepts the findings — and flagged floodplain constraints and underutilized parcels as key barriers to private investment. Staff said the Pearl Arts District proposal by the developer Conscious Bay, an 11-acre, four-block concept with about 500 rental residences, an anticipated hotel and an anchor performing-arts venue, was a potential catalytic project that would likely require upfront infrastructure investment to proceed.

"This project will not happen without infrastructure coming first," Mark, a city staff presenter, said, explaining why staff is studying a combination of TIF (tax-increment financing), the new commercial-focused metropolitan district tool recently approved by Council, and GID options.

Why it matters: the choice of financing and governance tools affects who pays for new infrastructure and how tax revenues are used in the long term. Staff recommended continuing consultant-led strategy work through October, completing an impact/feasibility report this summer and treating a proposed temporary mill-levy reduction — from 10 mills to 5 mills — as likely in the draft 2027 budget while the analysis is completed.

Commissioners were sharply divided. Commissioner Rebekah Dumouchelle, who traced the district's mill-levy history and noted the garage debt has been retired, argued the levy’s original purpose has largely ended. "I don't even think we should be... collecting the 5 at this point," Dumouchelle said, urging relief for property owners and businesses that continue to shoulder higher local tax rates.

Other commissioners pushed for a measured approach. Staff argued a permanent levy change should await the consultant analysis so that any long-term reductions do not leave parking assets or future TDM (transportation demand management) responsibilities underfunded. "We'd like to get through this strategy development over the next six months so we'll know what the role of the GIDs is," the staff presenter told commissioners.

The meeting also included technical discussion of flood-control constraints that affect buildability in Phase 2. Commissioner and project representative Daniel Aizenman described an undersized culvert under the railroad on BNSF property that—if replaced by a larger conveyance structure and coordinated with FEMA mapping—could move roughly 35 parcels out of the 100-year floodplain and enable residential development east of the tracks. "The only thing that the city did not implement is the change on the undersized culvert, which needs to be replaced with a much broader capacity, a 35-foot trestle bridge," Aizenman said.

Local businesses raised near-term concerns about paid street parking and garage access. Commissioners reported complaints from a recent coffee-shop opening and other retailers who say short trips and employee parking are being discouraged by metered curb space. Commissioners discussed short-duration loading/drop-off spaces, extending free periods (weekends, evenings), first-30-minute free stalls or targeted employee parking passes as interim measures. Staff agreed to provide written follow-ups on ADA parking access, bollard replacements, and options for short-term parking relief.

What happened procedurally: the commissions approved several routine minutes and appointments (including confirming Robin Ronan as Parking Commission chair and appointing Sage Dalton as TDM vice chair). No formal decisions were taken on urban renewal, TIF, metro-district service plans or a permanent mill-levy change; staff will return with additional analysis and stakeholder engagement.

Next steps and timeline: staff said consultants (Community Attributes and CliftonLarsonAllen) will support stakeholder engagement and analysis through October, an impact/feasibility report will continue over the summer with a Bureau Board update expected in late June, and any negotiation of a TIF agreement with overlapping taxing entities would occur late summer into fall if the URA proceeds. Staff signaled possible formal urban renewal action in late 2026 or early 2027; passenger-rail funding and infrastructure timing remain external dependencies.

Practical takeaways: commissioners split between immediate tax relief for property owners and businesses, and a cautious approach that preserves tools to fund infrastructure if Phase 2 development requires public investment. Staff will return with the consultant analysis, written responses to outstanding ADA and bollard questions, and options for short-term parking policy changes. The joint commission's next meeting is scheduled for July 22 at 4 p.m.