The Boulder City Council will decide Thursday whether to place a measure on the November ballot to create a downtown development authority. The proposed authority would use future tax revenue growth to spur investment downtown, leaving less available in the near term for other city needs.
The proposal has split councilmembers. Proponents see it as a needed tool to address stagnant sales tax revenue in the downtown core. Skeptics worry about making a financial commitment amid economic uncertainty and prioritizing downtown when the city faces other pressing needs.
The council began exploring the authority after making economic vitality a top priority at its 2024 council retreat. The proposal comes as sales tax revenue has remained flat for years, contributing to a projected $6.5 million hole in the city’s 2027 budget.
How the DDA would work, and who pays for it
To create a downtown development authority, or DDA, council must first refer a measure to the ballot. It then needs approval from businesses, registered voters and lessees within the district boundaries. The proposed district would include much of downtown around Pearl Street, as well as University Hill…