Consultants working with the City of Boulder on commercial-district finance briefs recommended evaluating a downtown development authority (DDA) that could encompass Downtown and University Hill and suggested a set of alternative near- and longer-term revenue and governance tools for existing improvement districts.

Reagan and PUMA presented district profiles and recommendations on April 8 and proposed that the city evaluate formation of a DDA that could use tax increment financing (TIF) and an optional mill levy (up to five mills for a DDA) to fund capital improvement and connectivity projects. The consultants said TIF and a DDA would not increase current tax rates but would capture future revenue increments from sales-tax and property-value growth within a defined base year for reinvestment in the district.

Key recommendations and options

PUMA recommended the city first clarify roles and reduce overlaps between downtown GID and the business-improvement district and identify redundancies that could be consolidated administratively. The consultants described the DDA as a compelling option because it provides two principal revenue tools—tax increment financing and a potential mill levy—and more dedicated staffing and governance for district programs. They said a DDA’s planning document (plan of development) and board composition can be used to preserve University Hill priorities and distribution of investments.

If a DDA is not pursued, consultants outlined alternative strategies for each district: debrucing to increase mill levies within legal limits; a Pearl Street public improvement fee (PIF) charged at point of sale in a defined area; capture of lodging business assessment revenue from new hotels to fund near-term visitor-experience or streetscape work; urban renewal on site-specific blighted parcels; and use of metropolitan districts for large new-development infrastructure financing. For Boulder Junction (BJAD) the consultants recommended analyzing consolidation of the parking and transportation-demand-management districts and evaluating expansion of the district footprint to include adjacent properties for phase‑2 redevelopment.

Market context and constraints

PUMA’s district profiles reviewed vacancy and valuation trends from 2016–2024 and reported rising retail vacancy across several GIDs since the pandemic, elevated office vacancy in some districts, and uneven property valuation growth. The consultants noted the Pearl Street area and East Boulder community center as examples of capital needs being funded through existing district and city revenues.

Commission and public concerns

Commissioners asked about distributional effects and process risks. Questions focused on who would vote in TABOR elections (the affected-area electors include residents, registered voters and qualifying property entities or designated lessees), how formation could affect other taxing authorities (for example, Boulder Valley Schools and County revenue), and the governance safeguards to ensure The Hill retains a voice if a DDA includes both areas. Consultants recommended embedding protections in the DDA plan of development and governance seats and noted that negotiations with other taxing jurisdictions would be part of any formation process.

Estimates and timing

Consultants characterized relative revenue “orders of magnitude” qualitatively: a DDA plus TIF and optional mill levy could be a major revenue generator over decades (described as the highest-order option); urban renewal and metropolitan districts could produce moderate to large financing for specific projects; PIFs and lodging assessment capture were identified as smaller, gap‑filling tools that could be calibrated to near-term needs. The consultants emphasized that the DDA model builds incrementally and that significant returns could take years to materialize because TIF relies on future increments above a base year.

Next steps and requests

PUMA and staff asked commissioners to provide feedback; staff said their advisory memo to City Council is due in the coming days and recommended further analysis, stakeholder outreach and legal review to evaluate a DDA, potential TABOR ballot language, and impacts on other taxing jurisdictions. No formal action or vote was taken at the meeting.

Ending

Consultants and staff said they will include commission feedback in the memo to council, continue technical analysis, and schedule further briefings; they also invited commissioners to future Fund Our Future engagement sessions that will run July–October.