Lakewood-West Colfax   Business Improvement District

Questions & Answers

Commonly Asked Questions

What is a Business Improvement District (BID)?  A BID is a special district that allows for an assessment on commercial property to finance supplemental services and improvements in a defined area. Colorado has had BID legislation since 1988. BIDs are common in commercial districts throughout the nation and have proven to be an integral part of revitalization efforts. Nationwide, the BID renewal rate is greater than 99%. There are presently dozens of business improvement districts in Colorado and several along Colfax Avenue in Denver and Aurora. The Lakewood section of Colfax is the only significant segment of Colfax without the benefit of a business improvement district.


What is the BID formation process?
More than 300 area property and business owners have been involved in the process to develop the West Colfax Avenue Action Plan and a preliminary operating plan for the proposed Lakewood-West Colfax Business Improvement District. The steps in the BID formation process include:

1. Community Planning - Involving hundreds of business and property owners in the West Colfax Corridor, an 18-month community planning process was conducted in 2005 and 2006 resulting in the West Colfax Avenue Action Plan, which was adopted by the Lakewood Planning Commission and approved by Lakewood City Council as an amendment to the City’s Comprehensive Plan. The formation of a business improvement district was among the near-term Action Steps of the plan.

2. Ongoing Community Outreach - In addition to the process involved in developing the West Colfax Action Plan, the organizing group conducted even more community outreach. Through an alliance with the West Colfax Community Associations and other interested groups, the group conducted more than a dozen workshops and seminars for the local area business and property owners to test the viability of the BID concept and gather input on corridor priorities.

3. BID Steering Committee - To guide the formal BID process and to provide governance for BID activities, if the BID is approved, a Steering Committee comprised of area property owners is  formed, including representative property owners from within the proposed district.

4. One-on-One and Group Meetings with Local Property Owners - Members of the organizing group met with over 100 property and business owners throughout the BID study area to provide information, answer questions, and assess interest in the BID concept for the Lakewood-West Colfax Corridor.

5. Stakeholder Focus Groups - Stakeholder focus groups involved property and business owners as well as neighborhood groups in the design and development of the objectives and priorities in the draft of the preliminary BID Operating Plan. Group members were surveyed to assess program priorities and whether or not they were willing to support a BID for the corridor.

6. Direct Mail Letters and Surveys - BID organizers prepared and sent out multiple mailings, including informational letters and surveys, to all property owners in the proposed district. The results were compiled and the input included in the design of the preliminary BID Operating Plan.

7. Door-to-Door Campaigns - Volunteers walked Colfax Avenue to speak with business and property owners in order to receive additional input for the priorities of the BID plan. Educational forums, called BID Lunch & Learns, were held at locations along West Colfax to provide more information on the BID effort and how a BID could enhance commercial areas along the corridor.

8.  BID Operating Plan (Preliminary) - Based upon the input from community meetings, focus groups, direct mail surveys, and one-on-one meetings, a BID Operating Plan will be drafted and presented to the BID Steering Committee for review and feedback. The final BID Operating Plan will be the result of a more than a year-long process that included outreach and discussions with, and input from, community stakeholders. The BID Operating Plan provides details on its governance, BID boundaries, program priorities and budget.

9. Petition Drive and Validation - The organizing group is responsible for gathering the required number of petitions to move forward with the BID process. The petitions must be notarized and then certified by the Lakewood City Clerk’s office.

10. City Council Approval to County for Special Mail Election - After the petitions are certified, the organizing group presents the BID Operating Plan, which includes the proposed governing board (Steering Committee), to the Lakewood City Council for acceptance. With the Council’s acceptance provided to Jefferson County, the process then moves to a Special Mail Election to property and business owners within the boundaries of the proposed district.
More Commonly Asked Questions

I already pay taxes! Why support a BID?  We all pay city and/or county taxes that are used for priorities all over the city and county, not just along the Lakewood-West Colfax corridor. Legally, funds raised by a BID must be used in the same area that is being assessed. In this case, BID funds can be used only for improvements, programs and services that benefit the Lakewood-West Colfax corridor. BID-supported services do not replace existing city or county services; rather, they are in addition to the existing services. BID budget decisions are made by district property owners, thus ensuring accountability and local control of priorities.

What do BID funds pay for?  Based upon input from area property and business owners, a preliminary BID Operating Plan is in the process of being developed to guide BID programs and services. It is anticipated that a majority of the BID budget will focus on economic development, cleanup and beatification, and marketing and promotions for the Lakewood-West Colfax District.

Who will manage the BID programs?
  To maximize accountability to ratepayers and provide local control, the BID Operating Plan provides criteria for a BID Board of Directors (Steering Committee) that is comprised of property and business owners representing different geographic areas as well as different business types within the proposed Lakewood-West Colfax District.

Can residential properties be assessed in a BID?  No. State law only allows for the assessment of commercial property within the proposed BID area. A residential property is exempt.

How much will it cost me?  A BID assessment will be based upon the tax value of commercial property. With a projected budget range of $250,000 to $500,000* based on an estimated assessed tax value of $50-$100 million* of commercial properties within the BID area, assessments will be no higher than 5 mils. One mil is equal to $1 per $1,000 of assessed value. NOTE: Individual mil levies for commercial property are calculated on assessed value (not appraised or market value). Assessed value is 29% of actual value. (*Final district footprint will determine projected budget based on tax valuation of properties included in the BID.) Examples below are based on 5 mils.

Example A: small retail shop or restaurant
    Assessed value $55,000 x 5ml =
    $275/yr (75 cents a day)
Sample payback: 2 new customers who shop once per month

Example B: mid-size auto dealership
    Assessed value $765,000 x 5ml =
    $3,825/yr ($10.48 a day)
Sample payback: 2-3 additional car sales during the year

Example C: mid-size office/retail center
    Assessed value $1,005,000 x 5ml =
    $5,025/yr ($13.77 a day)
Sample payback: 1 tenant expansion during the year

Example D: large shopping center
Assessed value $2,850,000 x 5ml = $14,250/yr ($39.04 a day)
Sample payback: 1 new retail tenant during the year

Will they raise my BID assessment later on? No. The assessment rate will not increase. Only property owners can change the assessment by a majority vote.

Can the BID be dissolved?
Yes. The BID can be dissolved in the same way as it is formed: if property owners representing more than 50% of total acreage and assessed value submit petitions to City Council. The BID also can be dissolved if it fails to submit an Operating Plan to City Council for two consecutive years.

Are there examples of successful BIDs in Colorado?
Yes—many! Numerous BIDs exist in Colorado, such as the Alameda Corridor in Lakewood, South Broadway Corridor in Englewood, East and West Colfax Corridors in Denver, Cherry Creek North, Downtown Boulder and Downtown Denver, as well as dozens more throughout the state.

How can a BID help my business?
BIDs typically help protect and enhance property values and energize economic activity through heightened security, cleanup and beatification programs, business support services, and a variety of district marketing and promotional campaigns designed to elevate awareness and increase patronage to businesses throughout the district.  

What are some specific programs that will help my business?  Click Here.
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