A bill would set aside 1% to 5% of big Denver construction budgets for the businesses next door

A bill to make Denver's grant program for businesses hurt by city construction permanent, and to pay for it with a share of each big project's budget, goes to the Council's Finance and Business Committee on Tuesday, Nov. 10. The ordinance is 26-1712; a companion bill creating its fund is 26-1719. Both are sponsored by Council members Flor Alvidrez, Chris Hinds and Amanda Sawyer.

Why it matters: Denver has a run of major street projects ahead, including Vibrant Denver bond projects and bus rapid transit lines. The current Business Impact Opportunity (BIO) Fund has been the city's only tool for nearby businesses and "is not sufficient," the sponsors' slides say.

What the bill would do

From the slides:

A set-aside. City-funded construction projects of $10 million to $25 million lasting more than 12 months would set aside at least 1% of their budget for the program. Projects of $25 million or more lasting more than 18 months would set aside 1% to 5%.

Grants. Businesses with annual revenue of $100,000 or less could get no more than 10% of their revenue. Larger businesses would get at least $15,000. Amounts would be adjusted for inflation.

Tax assistance payments. The city could cover a business's property, business personal property, occupational privilege, sales or use taxes while it's affected, if it is current on past taxes.

Who qualifies. A business directly within a city-funded project's area, licensed and in good standing. More rules would come later.

A dedicated fund. Money would roll over from year to year and keep its interest. City administration would be capped at 7% and contractor administration at 20% of a contract.

Reporting. Starting in 2028, the economic development office would report each year to the mayor, Council and auditor on eligible projects, funding and spending.

What our records add

Why a separate fund. At an Oct. 27 committee briefing, Sawyer said multi-year projects keep running into year-end deadlines that send unspent money back, and that tax relief raises legal questions under the state's TABOR amendment (video).

Federal money is gone. At the same briefing, staff said the pandemic relief dollars behind the Colfax grants are used up and that no BIO money is set aside for the Federal Boulevard bus project (our story).

Why the budget mentions it. Mayor Mike Johnston's Nov. 6 letter lists "increased support for Denver businesses impacted by construction" among Council-driven changes to the 2027 budget (letter). The Denver Gazette had reported up to $2 million in the revised budget.

The current grant size. Staff told members in October that grants are typically $15,000 for larger businesses and $7,500 for smaller ones. The bill's $15,000 would be a floor, not a typical amount.

Peer cities. The slides cite San Antonio's grants of up to $35,000 and the Twin Cities' forgivable loans of up to $10,000 along the Central Corridor light rail line.

Open questions

The slides don't estimate how much the set-aside would raise in a year or which projects would qualify first. They also don't say who decides where between 1% and 5% a large project lands.

What's next

Nov. 10: Finance and Business Committee.

December: Full Council, according to the sponsors' timeline.