Agenda Memo

City of Boulder City Council Agenda Item Meeting Date: February 5, 2026 Agenda Title Second reading and consideration of a motion to adopt Ordinance 8736 rezoning approximately 65,122 square feet of land located at 5501 Arapahoe Avenue and adjacent rights-of-way from the Business - Community 1 (BC-1) to the Mixed Use 4 (MU-4) zoning district as described in Chapter 9-5, “Modular Zone System,” B.R.C., 1981, and setting forth related details. (Case no. LUR2025-00016). AND Second reading and consideration of a motion to adopt Ordinance 8737 rezoning approximately 56,896 square feet of land located at 5505 Arapahoe Avenue and the adjacent Arapahoe Avenue right-of-way from the Business - Community 1 (BC-1) to the Mixed Use 4 (MU-4) zoning district, and rezoning the adjacent 56th Street right-of-way from Industrial - General (IG) to the Mixed Use 4 (MU-4) zoning district as described in Chapter 9-5, “Modular Zone System,” B.R.C., 1981, and setting forth related details. (Case no. LUR2025-00016).

Staff Contact •

Chandler Van Shaack, Principal Planner, Planning and Development Services

Draft Motion Language Staff requests council action in the form of the following motions: 1. Motion to adopt Ordinance 8736 rezoning approximately 65,122 square feet of land located at 5501 Arapahoe Avenue and adjacent rights-of-way from the Business - Community 1 (BC-1) to the Mixed Use 4 (MU-4) zoning district as

described in Chapter 9-5, “Modular Zone System,” B.R.C., 1981, and setting forth related details. AND 2. Motion to adopt Ordinance 8737 rezoning approximately 56,896 square feet of land located at 5505 Arapahoe Avenue and the adjacent Arapahoe Avenue rightof-way from the Business - Community 1 (BC-1) to the Mixed Use 4 (MU-4) zoning district, and rezoning the adjacent 56th Street right-of-way from Industrial - General (IG) to the Mixed Use 4 (MU-4) zoning district as described in Chapter 9-5, “Modular Zone System,” B.R.C., 1981, and setting forth related details.

Executive Summary The purpose of this item is for City Council to consider a request to rezone two parcels containing approximately 2.65 acres of land, generally located at 5501 and 5505 Arapahoe Avenue, and adjacent rights-of-way from Business- Community 1 (BC-1) to Mixed-Use 4 (MU-4) zoning and adjacent 56th Street right-of-way from Industrial General (IG) to Mixed-Use 4 (MU-4) zoning. Reviewed under application LUR202500016. This rezoning request is to facilitate redevelopment of the property under the Form-Based Code Standards of the East Boulder Regulating Plan. On December 2, 2025, the Planning Board held a public hearing and voted 7 - 0 to recommend to City Council approval of the Rezoning application to rezone 2.65 acres of land located at 5501 and 5505 Arapahoe and adjacent right-of-way from Business – Community 1 (BC-1) to Mixed – Use 4 (MU-4) zoning and a portion of 56th Street rightof-way from Industrial General (IG) to Mixed – Use 4 (MU-4) zoning. At the same meeting, the board voted 4-3 to approve the concurrent Form-Based Code Review application (LUR2025-00027). At its meeting on January 8, 2025, City Council passed two motions introducing and ordering published by title only Ordinances 8736 and 8737 and setting February 5, 2026, as the date for a public hearing to consider action on the rezoning ordinances. At the same meeting, council considered whether to call up the concurrent Form-Based Code Review Application submitted for the property (LUR2025-00027). Ultimately, the Form-Based Code Review application was not called up. Therefore, Planning Board’s decision on the Form-Based Code Review application is considered final.

Council Action Options Option

Outcome

If Council finds the rezoning request consistent with the Rezoning criteria in Sections 9-2-19(e) and (f), B.R.C. 1981, it must approve the rezoning requests and adopt Ordinances 8736 and 8737.

The properties at 5501 and 5505 Arapahoe Ave. And adjacent rights-of-way are rezoned from BusinessCommunity 1 (BC-1) to Mixed-Use 4 (MU-4) zoning and adjacent 56th Street right-of-way from Industrial General (IG) to Mixed-Use 4 (MU-4) zoning.

If Council finds the rezoning request inconsistent with the Rezoning criteria in Sections 9-2-19(e) and (f), B.R.C. 1981, council must deny the rezoning request and deny or take no action Ordinances 8736 and 8737.

The rezoning process ends. Additional discretionary review processes would then become necessary for the site to be redeveloped per the approved FormBased Code Review application.

Key Issues Staff has identified the following key issue to help guide council’s discussion: 1.

Is the rezoning request consistent with the Rezoning criteria in Sections 9-219(e) and (f), B.R.C. 1981?

Background Property Description & Site Context The approximately 115,551 square foot (2.65-acre) project site is located in East Boulder at the northeast corner of 55th Street and Arapahoe Avenue (See Figure 1 below for a vicinity map). The site is comprised of two properties: 5501 and 5505 Arapahoe Ave. One property previously operated as the Boulder Dinner Theater (5501 Arapahoe) and the other is currently the Premier Members Credit Union (PMCU), (5505 Arapahoe). The site is surrounded by commercial and light industrial uses to the north and east and commercial uses to the south and west. The Flatirons Golf Course lies to the southeast across Arapahoe Ave. The site currently contains a shared vehicular access off Arapahoe Ave. as well as two additional accesses per property off 55th and 56th Streets, respectively. A shared

driveway also connects through the sites to allow for drive-thru bank customers to exit onto the 5501 Arapahoe property. Overall, the site is largely paved, with surface parking comprising most of the former Boulder Dinner Theater site and roughly one third of the PMCU site.

BVCP Land Use Designation As shown in Figure 2, the BVCP land use designation for the site is MUTOD (Mixed Use Transit-Oriented Development). Per the BVCP, “MUTOD areas pair existing or planned transit facilities with residential and commercial development opportunities. The goal of MUTOD areas is to transform existing, disparate uses into mixed use, transitoriented neighborhoods rich with amenities and services. MUTOD areas are located at regional or local mobility hubs and/or along key transit corridors.” Anticipated uses consist “predominantly of attached residential uses. Supporting uses to be allowed include office, retail, service, commercial and light industrial. Uses should be vertically and horizontally integrated into MUTOD areas.”

The project site is also located within the boundaries of the East Boulder Subcommunity Plan (EBSP). As shown in Figure 3 below, within the plan the site is designated as an area of change with a Neighborhood TOD place type. The area of change in which the project site is located is identified as the 55th and Arapahoe Station Area, which is subject to the 55th and Arapahoe Station Area Master Plan (STAMP). The STAMP is an area plan that was adopted as part of the EBSP and “provides a detailed study of the vision, feasibility, and implementation strategies for this catalytic project.” The 55th and Arapahoe Station Area is intended to include “a variety of new destinations and housing into the fabric of an important working, industrial area. The corner of 55th and Arapahoe will include a mobility hub connecting new residents to places outside of East Boulder and bringing people from other parts of the city and the region to East Boulder by bus, bike, foot, car and even scooter. The neighborhood character will mix high- and low-density buildings with flexible industrial spaces whose doors open to the street, fostering an exchange of people, goods and ideas in this live/work neighborhood.”

City Council adopted the EBSP on Oct. 6, 2022. The plan guides the evolution of East Boulder over the next two decades into a local business hub with a variety of housing options and an artful community that is well connected to the surrounding city and the region.

Zoning As shown in Figure 5 below, the project site is currently zoned BC-1 (BusinessCommunity 1), defined as “Business areas containing retail centers serving a number of neighborhoods, where retail-type stores predominate” per Section 9-5-2 of the Land Use Code. The site is also subject to the East Boulder Form-Based Code, which was established following adoption of the EBSP in 2022 and added to Chapter 14 of the Land Use Code in 2025. As discussed in further detail below, the applicant is requesting a rezoning from BC-1 to MU-4 (Mixed-Use 4), which is defined in the Land Use Code as “Mixed use residential areas generally intended for residential uses with neighborhood-serving retail and office uses; and where complementary uses may be allowed. It is anticipated that development will occur in a pedestrian-oriented pattern, with buildings built up to the street.”

Currently, MU-4 zoning has been applied only to areas of the city where adopted subcommunity or area plans exist, including the Boulder Junction area and the Alpine Balsam area. As shown below in Figure 6, the EBSP recommends MU-4 zoning for the areas designated as Innovation TOD (residential) and Neighborhood TOD place types in the EBSP. As shown in Figure 4 above, these areas all currently have the MUTOD land use designation in the BVCP.

Application Description As discussed in further detail below, the applicant is requesting a rezoning from BC-1 to MU-4 (Mixed-Use 4), which is defined in the Land Use Code as “Mixed use residential areas generally intended for residential uses with neighborhood-serving retail and office uses; and where complementary uses may be allowed. It is anticipated that development will occur in a pedestrian-oriented pattern, with buildings built up to the street.” The requested rezoning is to make the zoning of the site consistent with the MUTOD BVCP land use designation and allow for redevelopment consistent with vision of the EBSP. Note that the rezoning is proposed concurrently with a Form-Based Code application redevelop the site under Application #LUR2025-00027 (which was approved by Planning Board and not called up by council on January 8, 2026, making the Planning Board approval final). Rezoning the site from BC-1 to MU-4, will also allow for ground-floor residential uses by-right whereas the BC-1 zone requires a Use Review to allow for ground floor residential uses. MU-4 zoning requires a development proposing

additional floor area for a property to meet trip generation requirements set forth in Section 9-2-22, B.R.C. 1981. The proposed development under FBC application LUR2025-00027 includes a TDM plan that sets forth how this development intends to meet its trip reduction requirements. For council’s information, the TDM Plan is attached to this memo as Attachment D. If the rezoning is not approved, an amendment to the FBC approval and/or additional review processes may be required to construct the project as proposed through the FBC application to meet BC-1 land use code standards (LUR2025-00027).

Application History At the public hearing on December 2, 2025 the Planning Board held a quasi-judicial hearing to review the proposed Rezoning and concurrent Form-Based Code applications described above. Following a public hearing, the board voted to recommend approval of the requested rezoning application #LUR2025-00016 with the following motion: On a motion by M. McIntyre and seconded by M. Roberts, the Planning Board voted 70 to recommend to City Council approval of the application to rezone 2.65 acres of land located at 5501 and 5505 Arapahoe and adjacent right-of-way from Business – Community 1 (BC-1) to Mixed – Use 4 (MU-4) zoning and a portion of 56th Street right-of-way from Industrial General (IG) to Mixed – Use 4 (MU-4) zoning. The board also voted 4-3 to approve the FBC application. A summary of the board’s discussion and recommendation on the rezoning can be found in the draft meeting minutes from the December 2, 2025 Planning Board Hearing included as Attachment G. The staff memorandum to Planning Board, meeting audio, and other related background materials are available on the Records Archive for Planning Board. A video of the hearing can be found at the following link: December 02, 2025 Planning Board Hearing (item starts 30 minutes into the video). At its meeting on January 8, 2026, City Council passed motions to introduce and order published by title only Ordinances 8736 and 8737 and set February 5, 2026 as the date for a public hearing to consider action on the rezoning ordinances. At the same meeting, council considered whether to call up the concurrent Form-Based Code Review Application submitted for the property (LUR2025-00027). Ultimately, the FormBased Code Review application was not called up. Planning Board’s approval of the FBC application is therefore final. Note that a reference to the Planning Board’s public hearing date on this rezoning application was corrected for second reading in Ordinances 8736 and 8737 to correctly

identify December 2, 2026, as the date the Board held a public hearing and recommended approval of the rezonings.

Public Comment Consistent with Section 9-4-3, “Public Notice Requirements,” B.R.C. 1981, staff provided written notifications to property owners and all addresses within 600 feet of the subject property. In addition, a public notice sign was posted on the property and therefore, all public notice requirements of section 9-4-3, “Public Notice Requirements,” B.R.C. 1981 were met. Staff has not received any written public comments on the request.

Criteria for Review Applicable Boulder Revised Code Sections Section 9-2-19(e), Rezoning Criteria, B.R.C. 1981 Section 9-2-19(f), Additional Criteria for the MU-4, RH-3, RH-6 and RH-7 zoning districts, B.R.C. 1981

Analysis Fiscal Note Estimated Fiscal Impact Narrative Review of this project is part of the P&DS team’s standard workplan and its impacts are incorporated into the annual revenue forecasting as part of the Budget office’s annual budget development. Therefore, the project will not have a meaningful fiscal impact past what has already been included in the approved budget.

Current Year Estimated Fiscal Impact Fund(s): 2120FD Department(s): Planning & Development Services Program(s): Item

FY 2026 Budget

FY 2026 Estimated Impact

FY 2026 Net Change

Beginning Fund Balance

$20,430,800

$0

$20,430,800

Total Forecasted Revenue

$15,179,491

$0

$15,179,491

Total Estimated Expenses

$17,735,173

$0

$17,735,173

Ending Fund Balance(s) After Reserves

$12,646,701

$0

$12,646,701

FTE

122.65

0

122.65

Three-Year Estimated Fiscal Impact

Item

FY 2026

FY 2027

FY 2028

Total Forecasted Revenue

$0

$0

$0

Total Estimated Expenses

$0

$0

$0

Net Estimated Impact

$0

$0

$0

1.

Is the rezoning request consistent with the Rezoning criteria in Sections 9-2-19(e) and (f), B.R.C. 1981?

Staff finds that the requested rezoning meets the appliable rezoning criteria, as described below: Land Use Code Section 9-2-19(e), B.R.C. 1981 states: The city's zoning is the result of a detailed and comprehensive appraisal of the city's present and future land use allocation needs. In order to establish and maintain sound, stable, and desirable development within the city, rezoning of land is to be discouraged and allowed only under the limited circumstances herein described. Therefore, the city council shall grant a rezoning application only if the proposed rezoning is consistent with the policies and goals of the Boulder Valley Comprehensive Plan, and, for an application not incidental to a general revision of the zoning map, meets one of the following criteria: The proposed rezoning is consistent with the policies and goals of the BVCP. Chapter 4 states: “The Boulder Valley Comprehensive Plan (BVCP) Land Use Map depicts a plan of the desired land use pattern in the Boulder Valley, and this chapter includes the land use designations that describe the characteristics, locations and uses for each category on the map.” Under subsection (b) of that paragraph, the BVCP states: “The land use designations should be used to guide future zoning decisions.” The proposed rezoning is consistent with the intent of the Land Use Map in that it would bring the zoning into compliance with the underlying land use designation. The proposed rezoning is also consistent with the recommendations of the EBSP, which is described in the BVCP as providing “clear guidance, consistent with BVCP policies, to further implement community goals and align future opportunities in East Boulder with community benefits.”

√ The applicant demonstrates by clear and convincing evidence that the proposed rezoning is necessary to come into compliance with the Boulder Valley Comprehensive Plan map; The proposed rezoning would bring the project site into compliance with the underlying BVCP land use designation, which is MUTOD (Mixed-Use TransitOriented Development). The existing BC-1 zoning was applied when the underlying land use was Community Business. The underlying land use

designation on the site was changed following adoption of the East Boulder Subcommunity Plan, which created the MUTOD land use designation. The EBSP specifically calls out MU-4 zoning as the desired zoning for the site, so the proposed rezoning would bring the property into compliance with both the EBSP and the BVCP land use designation.

n/a

The existing zoning of the land was the result of a clerical error;

Not applicable. n/a

The existing zoning of the land was based on a mistake of fact;

Not applicable. n/a The existing zoning of the land failed to take into account the constraints on development created by the natural characteristics of the land, including but not limited to, steep slopes, floodplain, unstable soils, and inadequate drainage; Not applicable. n/a The land or its surrounding environs has changed or is changing to such a degree that it is in the public interest to encourage a redevelopment of the area or to recognize the changed character of the area; or Not applicable. n/a The proposed rezoning is necessary in order to provide land for a community need that was not anticipated at the time of adoption of the Boulder Valley Comprehensive Plan. Not applicable. 9-2-19 (f), Additional Criteria for the MU-4, RH-3, RH-6 and RH-7 zoning districts. In the MU-4, RH-3, RH-6 and RH-7 zoning districts, for an application not incidental to a general revision of the zoning map, the city council shall also find that the rezoning meets the following criteria, in addition to Subsection (e) above: 1) Transportation. The land proposed for rezoning is: √ Subject to a right-of-way plan for the immediate area;

The area is subject to the East Boulder Subcommunity Plan, which includes a Connections Plan that specifies desired roadway improvements. The diagram below shows the proposed connections for the 55th and Arapahoe Station Area. √ The right-of-way plan is capable of being implemented to the extent necessary to serve the property and to connect to the arterial street network through collector and local streets, alleys, multi-use paths and sidewalks concurrent with redevelopment; and The EBSP Connections Plan is capable of being implemented to the extent necessary to serve the property. No new connections through the property are required, and the FBC project proposed concurrently with this request for rezoning has incorporated all of the required street improvements along both 55th and Arapahoe. √ The public infrastructure can be paid for by way of redevelopment under the provisions of Section 9-9-8, "Reservations, Dedication and Improvement of Rights-of-Way," B.R.C. 1981, without contribution of funds by the city, or that there is a plan for financing and construction that has been approved by city council through the capital improvement program and the city council anticipates appropriating such funds within two years of the rezoning. Yes, and the conditions of approval for the Form-Based Code review application submitted concurrently with this request for rezoning require that the public infrastructure will be paid for by the applicant without contribution of funds by the city.

2) Water, Wastewater and Stormwater Management and Flood Control. The city council shall determine whether there are adequate public facilities available for the rezoning area. The city council shall determine whether there are adequate water, wastewater and stormwater management and flood control facilities by considering the following: √ Whether the infrastructure meets the requirements of the City of Boulder Design and Construction Standards, adopted city master plans, the Boulder Valley Comprehensive Plan, subcommunity plans and area plans.

The water, wastewater and stormwater management and flood control facilities for the rezoning area meet the requirements of the City of Boulder Design and Construction Standards. √ Whether the land proposed to be rezoned has adequate water, wastewater and stormwater management and flood control public facilities that are: n/a In place at the time of the rezoning request; n/a Under construction and will be available at the time that the impacts of the proposed development will occur; or √ Guaranteed by an enforceable development agreement ensuring that the public facilities will be in place at the time that the impacts of the proposed development will occur. Approval of the concurrent FBC application will require execution of a development agreement ensuring that the public facilities will be in place at the time that the impacts of the proposed development will occur.

√ Whether the property owner has, or will in the future, paid its fair share of the infrastructure needs of the surrounding area, as described in city master plans, subcommunity plans or area plans. Policy D10 of the EBSP recommends establishing a 55th and Arapahoe Station Area General Improvement District to engage public financing mechanisms for infrastructure and services that benefit more than one property to support the goals of the EBSP and the 55th and Arapahoe Station Area Plan. This recommendation has not yet been implemented, so no particular infrastructure needs to be funded has yet been identified and there is no mechanism by which to require the property owner to pay their fair share of the infrastructure needs of the surrounding area. However, should such an Improvement District be implemented in the future, the property owner would be taxed in accordance with the requirements of the district. 3) Transportation Demand Management Services. In the MU-4, RH-6 and RH-7 zoning districts, the property subject to the rezoning is located within an area that has parking and transportation related service provided by a general improvement district or an equivalent organization or otherwise

meets the trip generation requirements of Section 9-9-22, "Trip Generation Requirements for the MU-4, RH-6 and RH-7 Zoning Districts," B.R.C. 1981. The rezoning site is not located within an area that has parking and transportation related service provided by a general improvement district or an equivalent organization, and, therefore, any development with additional floor area of the rezoning site is subject to the trip generation requirements of Section 9-9-22, "Trip Generation Requirements for the MU-4, RH-6 and RH-7 Zoning Districts," B.R.C. 1981. The concurrent FBC application for development of the site includes a TDM plan to meet this requirement. Please see Attachment F for staff’s analysis of the TDM Plan’s consistency with the requirements of Section 99-22, B.R.C. 1981.

Findings Staff finds that the proposed rezoning meets the applicable criteria in Sections 9-2-19(e) and (f), B.R.C. 1981, and recommends that council introduce and order published by title only Ordinances 8736 and 8737.

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Attachments Attachment A:

Applicant’s Written Statement – Rezoning

Attachment B:

Draft Rezoning Ordinance 8736

Attachment C:

Draft Rezoning Ordinance 8737

Attachment D:

TDM Plan

Attachment E:

Traffic Study

Attachment F:

Analysis of Section 9-9-22, Trip Generation Requirements for the MU-4 Zoning District

Attachment G:

Draft 12/02/25 Planning Board Minutes