Aurora advances major economic revival plan for East Colfax corridor

CLARIFICATION: The story has been corrected to show that Councilmember Danielle Jurinsky was the lone no vote in moving the plans forward because she supports the development authority but not the community development concepts.

AURORA | The East Colfax Corridor is moving into a second phase of a strategic economic revival plan as city lawmakers decide what redevelopment mechanism will benefit it most. 

“We want to create a champion, an organization, an entity, that’s going to champion all of the interests in the Colfax corridor,” said  Brad Segal, president of Progressive Urban Management Associates, consultant for the City of Aurora. 

All of the city council approved moving forward with two recommendations to create and combine a Downtown Development Authority and a Community Development Corporation, except Councilmember Danielle Jurinksy. Jurinsky said she supports the development authority but not the community development concepts.

The so-called “Colfax Corridor” is no stranger to controversy and redevelopment plans, some hailing back decades. The city’s aging urban beginnings have long been a focus of ways to weed out crime, homelessness and decades of urban decay and install new businesses and cultural venues.

The three options city council chose from were a Business Improvement District (BID), a Downtown Development Authority (DDA) and a Community Development Corporation (CDC). 

A BID and a DDA are similar, and both are governed by a state statute, while a BID only includes commercial properties and a DDA includes commercial and residential properties. BIDS are created through a petition and voted on by business owners and tenants, while DDAs allow residents voting power as well. 

A BID comprises at least five property owners, while a DDA has a board of five to 11 members. BIDs are funded by an added property tax or special assessment, but a DDA can also add a tax for operations. It is usually funded by a Tax Increment Financing (TIF), which allows the district to keep future increases in sales and property taxes, above a baseline. 

A TIF is not a new tax or an added tax, said Segal. TIFs enable the district to capture future increases in property tax revenue and sales tax revenue. 

“So as an area improves, as it prospers and tax proceeds increase, the increment or the amount of revenue above the original base, the district is what we capture and we reinvest into the area,” Segal said.

The focus for a BID is on management, marketing, advocacy and economic vitality,  and the focus of a DDA is development and redevelopment, infrastructure and economic vitality.

Downtown Development Authorities can also help with both infrastructure and services, such as street and sidewalk improvements, safety enhancements, beautification projects and economic development. DDAs can also fund capital improvements in the district, such as upgrading intersections, improving pedestrian safety, enhancing connectivity, activating underused or vacant spaces and even potentially developing multifamily housing.

The third option city lawmakers considered, which they decided to combine with the DDA, is a Community Development Corporation, which is not governed by a statute and is formed by incorporation as a non-profit group.

It is community-led and focuses on acquiring and renovating real estate for community benefit. A CDC lacks a dedicated funding stream, but it can pursue grants, donations and foundation support.

“A lot of nonprofits in Northwest Aurora, almost all, are focused on social services of one form or another,” Segal said. “This would be very different because a community development corporation is focused on real estate and is focused on helping to acquire and renovate real estate for community benefit.”

The next steps in the plan will include creating boundaries for the district, calculating the tax increment financing baseline, determining how the DDA and CDC entities will work together, governance structures and ongoing community engagement. PUMA will be back in midsummer for direction from the city council on the next steps. 

Members of the ​​PUMA group have been collecting feedback from an area focused so far on an East Colfax Avenue Corridor that includes Yosemite to Peoria streets, and East 17th Avenue to East 13th Avenue. The area is just being tested for feedback and is not the potential district, Naomi Lacewell said, the project manager on this project, and a senior associate for PUMA.

“The work in phase one has been a lot about understanding the area, getting oriented, working through data, looking, doing data analysis, reading previous plans and community outreach,” Lacewell said.

The third phase includes city council deciding the district details and creating a resolution that would put the DDA issue on the ballot this November for the affected electors within Northwest Aurora. 

Aurora has a project webpage up in multiple languages for residents in the area to get additional details and complete a survey. The survey was supposed to end in March, but Lacewell said they are going to keep it open. Click here:  engageaurora.org/colfaxplan 

Feedback collected so far from the community expresses a need for more safety improvements, cleaning, maintenance and beautification. Residents who have given feedback also want to see more arts and creative businesses, along with additional support for existing small businesses.

“We’ve been hearing a strong emphasis on safety. Safety is absolutely a key common theme,” Lacewell said. “Not only in terms of reducing crime, but also in terms of traffic safety. Colfax is a very dangerous traffic corridor. Folks want a better pedestrian environment. They want to feel safe walking up and down it and crossing it.”

Creating a combined DDA and CDC will also help with another issue, Lacewell said she heard from their outreach, which was a need for more synergy, communication and coordination between the city, the entities and the different groups in the area.

“Remember, the DDA has a tax increment, and it’s got the opportunity for potential mill levy when it’s partnered with CDC, then you also have philanthropic opportunities,” Segal said. “So the opportunities for foundations, for corporations, a whole variety of philanthropic opportunities that can leverage the resources that are being pulled together for the community.”