Construction grant bill clears committee 6-0. Sponsors say the money is still General Fund money, just guaranteed

The Denver City Council's Finance and Business Committee on Tuesday, Nov. 10, voted 6-0 to send the full Council two bills that would make the city's grant program for businesses hurt by city construction permanent. Stacie Gilmore was absent. Council President Diana Romero Campbell moved both and Darrell Watson seconded (roll call).

The program ordinance is 26-1712 and the fund that holds its money is 26-1719. The sponsors are Flor Alvidrez, Chris Hinds and Amanda Sawyer. Our Tuesday story explains the set-aside of 1% to 5% of large city construction budgets. This story covers what was said in committee (video).

Why it matters: Denver has more long street projects coming, including bus rapid transit lines. This ordinance decides whether money for nearby businesses is set aside automatically or fought over in each year's budget.

Where the money comes from

Sawyer said the money is General Fund money. The change is that the ordinance requires it. "The funding source for these dollars is the general fund," she said, adding that sponsors had been told no "at every turn" when they looked for a dedicated source, and that short of asking voters for a sales tax there wasn't one. Because each qualifying project must set aside 1% or more, she said, "it has to be funded" (video).

Romero Campbell asked whether the 1% applies to a project's total cost or only to Denver's dollars, and whether capital money could be used. A sponsor pointed to the ordinance's wording and said the sponsors had looked at the city's 1% for art program as a model but couldn't find a capital source that fit, which is why the bill creates a fund that rolls over (video).

Not for state and federal projects

The ordinance covers city construction. A sponsor said state and federal agencies should pay for businesses hurt by their projects, naming Central 70, Federal Boulevard and possible bus rapid transit on Colorado Boulevard, and said the city doesn't have the money to save every business on roads it doesn't own. The sponsors said they had in mind an agreement with those agencies (video).

Tax relief: an option, not a plan yet

The bill lets the city cover some taxes for affected businesses "as allowed by law." The sponsors said the state's TABOR amendment means taxes have to be paid and then rebated, and that it would be decided project by project (video).

Watson said tax relief is the first thing businesses ask him about and asked how it might work (video). The city's economic development director said the department doesn't yet know how the tool would operate, wants to avoid extra paperwork for businesses and the finance department, and would need the finance department's help because it holds the tax data (video).

What the program has done

The economic development director said the program has made more than 3,000 grants over its life and that eligibility now requires a business to show a loss. Two people from organizations that help Colfax businesses apply told the committee that some owners were turned down because construction near them lasted longer than the grant windows, or because they fell short of revenue minimums. Members said the rules and regulations the ordinance calls for are where those details would be settled (video).

The sponsors also said city economists found sales tax collections fell in the Colfax-area business improvement districts once bus rapid transit construction began (video).

What our records add

The money is already in the 2027 budget. Mayor Mike Johnston's Nov. 6 letter lists "increased support for Denver businesses impacted by construction" among Council-driven budget changes.

Earlier briefing. At an Oct. 27 committee briefing, Sawyer said multi-year projects keep running into year-end deadlines that send unspent money back (video). The new fund would let money roll over.

What's next

The sponsors want adoption this year so the program starts Jan. 1, 2027. Their timeline puts the bills before the full Council in December.