Downtown Development Authority (DDA) Formation Project

Under Colorado law, a DDA is a public entity created to support the long-term vitality of a central business district. It is a financing and implementation tool that can help plan, fund and carry out improvements over time. A draft Plan of Development is part of that process and outlines the priorities and framework that would guide the DDA if approved.

A DDA is created through both City Council action and voter approval within the proposed district boundaries. Eligible voters may include property owners, residents and qualified lessees or tenants. If established, the DDA would be governed by a board of directors appointed by City Council, with a majority of members required to live or own property within the district.

A DDA’s ability to support transformational projects comes from its long-term financing tools. Under Colorado law, a DDA may use tax increment financing (TIF), levy up to five mills with voter approval, and issue debt, including bonds. TIF allows a portion of future growth in property and sales tax revenue generated within the district to be reinvested locally. These tools can help drive redevelopment and economic growth in a central business district.

The DDA would operate under a Plan of Development, which establishes the district’s priorities, eligible investments, financing approach, and overall direction.

A DDA does not replace the city’s land use, zoning or core municipal responsibilities. Instead, it provides a dedicated structure for coordinating investment and implementing district improvements at a scale the current model was not designed to support.

A DDA invests in projects and programs that support economic vitality, improve public spaces, and enhance the community experience within a district. DDAs often partner on redevelopment and infrastructure projects that help revitalize underutilized properties, attract investment, and support long-term district improvements.

This can include:

• Catalyzing redevelopment and adaptive reuse of underutilized and vacant properties
• Attracting new housing, hospitality, employment, and neighborhood-serving uses
• Supporting local businesses, reducing vacancies, and strengthening commercial corridors
• Funding mobility, access, and parking improvements
• Investing in public spaces and multimodal connections that support economic vitality

The proposed DDA financing approach is designed to provide both near-term stability and long-term reinvestment capacity. If approved by voters, the DDA could use a combination of tax increment financing (TIF), a voter-approved mill levy, district revenues, and other funding sources to support improvements and investments over time.

TIF would serve as one of the DDA’s primary funding tools. By capturing a portion of future growth in property and sales tax revenues generated within the district and reinvesting those funds locally, the DDA could help fund public improvements, support redevelopment, and leverage future revenues for larger capital projects.

A mill levy would provide a more stable annual funding source, particularly in the early years while TIF revenues are still building. The proposed mill levy is structured to replace the existing CAGID and UHGID mill levies, resulting in no net new property tax burden for CAGID property owners and a projected modest increase for UHGID property owners.

Additional funding sources could also support the DDA’s work. If governance of General Improvement District (GID) assets transitions to the DDA, this may include parking system revenues, which would continue to support parking operations, maintenance and reinvestment. Grants, partnerships and other earned revenues could also help fund district improvements and initiatives over time.

The DDA would be governed by an independent board of directors appointed by City Council and made up of representatives from within the proposed district. The board would provide oversight and guide implementation of the DDA’s priorities, investments and operations.

City Council would retain appointment authority, approve the Plan of Development and any intergovernmental agreements, and hold at least one seat on the board to help ensure continued alignment with broader city goals and priorities. This structure is intended to balance district-focused leadership with ongoing city oversight and accountability.

Boulder’s existing commercial districts — CAGID and UHGID — were established more than 50 years ago to support shared parking, infrastructure and maintenance within the city’s central commercial areas. While these districts have successfully fulfilled their original purpose, the needs and conditions of Downtown and University Hill have evolved significantly over time.

Today, Boulder’s central business districts face a range of economic and operational challenges, including changing retail and office market conditions, aging infrastructure, increasing expectations for public spaces and maintenance, and the need for more coordinated long-term investment and district stewardship.

In response, the city has been evaluating a DDA as a tool to provide more flexible financing, coordinated governance, and long-term investment capacity to support reinvestment, revitalization and implementation of community priorities.

To help guide this effort from the beginning, the city convened a community-based Planning Group as part of the DDA exploration process. The group includes community members representing different parts of the proposed district and provides ongoing input on governance, funding, boundaries and long-term priorities.

Over the past year, the city and Planning Group have worked with stakeholders to refine potential district boundaries and develop a draft Plan of Development that would guide future investments, projects and strategies. The process is now entering its next phase, focused on legal formation steps and City Council review.

If there is broad community support, the formation of a DDA would ultimately go before eligible voters within the proposed district, including residents, property owners and qualified business tenants. If approved, City Council would certify the election results, appoint the initial DDA Board, and authorize the establishment of governance documents and bylaws. The Board would then finalize and adopt the Plan of Development and begin implementation consistent with the approved funding tools.

If established, Boulder would join many Colorado communities — including Fort Collins, Denver and Longmont — that use Downtown Development Authorities to support long-term investment and downtown vitality.