November 8, 2013
Mr. Ken Lund
Colorado Office of Economic Development and International Trade
1625 Broadway, Suite 2700
Denver, CO 80202
RE: Colorado Springs RTA Application - City for Champions
Dear Mr. Lund:
The purpose of this letter is to provide clarification regarding the City of Colorado Springs commitment to provide the public funding identified in the City for Champions RTA application. I want to reiterate my support and enthusiasm for our application to enhance tourism to our great State of Colorado through attracting new visitors to Colorado Springs. The City can provide funding from the following sources:
Utilizing existing bond capacity
Increases in general fund revenues
City sales tax increment revenues from City for Champions
City Parking Enterprise System
Pikes Peak Rural Transportation Authority dedicated funding
Currently, the City has approximately $83 million in debt. Over the next few years that indebtedness will fall to approximately $50 million. By City Charter, the debt cap is approximately $400 million. The City has substantial bonding capacity that can be utilized in support of City for Champions project components.
The Executive Branch also expects additional general fund revenues to become available through continued growth in the local economy and tax base, as well as additional revenue generated through efficiencies in municipal government.
As the State is doing, I will support using a portion of our local sales tax increment from the City for Champion’s projects to fund a portion of the public investment. Estimates of the City sales tax revenues accruing from City for Champions are $174M over 30 years.
The City is committed to utilizing the municipally owned Parking Enterprise System in support of RTA projects. The Parking Enterprise currently has bonding capacity that can be dedicated to the construction of the 1,500 car parking structure included in the City for Champions application.
There is currently $2.12M included in the Pikes Peak Rural Transportation Authority approved budget for funding a portion of the America the Beautiful Park Bridge.
The City is committed to utilizing any and all of the sources described above to fully finance the public funding identified in the City for Champions Regional Tourism Act application. Thank you for the opportunity to provide the clarifying information above. We look forward to working with you, OEDIT staff, and the Economic Development Commission through the remainder of the Regional Tourism Act application process.
The City for Champions RTA Application team and its professional analysts have had an opportunity to review the preliminary “Third Party Analyst Evaluation: Colorado Springs RTA Application” prepared by EPS dated October 28, 2013. We appreciate the effort and attention EPS gave to their analysis and the City for Champions RTA Application Team is responding with the following additions and clarifications.