Agenda Memo

City of Boulder Downtown Commercial District Agenda Item Meeting Date: January 8, 2025 Agenda Title Consideration of a motion to adopt Resolution 319 of the City of Boulder Downtown Commercial District (formerly known as the Central Area General Improvement District) approving incentives offered to the Sundance Institute and authorizing the general manager to negotiate and execute a lease with the Sundance Institute; and setting forth related details

Staff Contact • • • • •

Nuria Rivera-Vandermyde, General Manager and City Manager Teresa Tate, City Attorney Chris Meschuk, Deputy City Manager Cris Jones, Director of Strategic Partnerships Sarah Gieger, Senior Counsel

Draft Motion Language Staff requests council consideration of this matter and action in the form of the following motion: Motion to adopt Resolution 319 of the City of Boulder Downtown Commercial District (formerly known as the Central Area General Improvement District) approving incentives offered to the Sundance Institute and authorizing the general manager to negotiate and execute a lease with the Sundance Institute; and setting forth related

Executive Summary The purpose of this item is for the district to review and direct the general manager (city manager) to sign the governing agreement that outlines the incentives the City and the Downtown Commercial District (CAGID) have committed to the Sundance Institute, as well as logistics for hosting the Sundance Film Festival (“Festival”) from 2027 to 2036. The City of Boulder, Visit Boulder, the Boulder Chamber, University of Colorado Boulder, and the State of Colorado coordinated and collaborated on a competitive bid to become the next host of the Sundance Fim Festival. It was announced on March 27, 2025, that Boulder was selected as the new home to the Festival, beginning in 2027. The governing agreement, included in Attachment A, will serve as the framework for festival operations in the city, and the city’s commitments to support the Festival. The agreement includes the following which is applicable to the district: • • •

•

An agreement to lease CAGID-owned office space to the Sundance Institute for institute offices. Traffic, parking and transportation planning, coordination and impact mitigation City Revenue Sharing, Rebates and Credits o Shared parking revenue for 1,000 parking spaces in downtown garages (up to $500,000 annually) Insurance requirements and other contractual terms.

Board Action Options Option

Outcome

Approve motion language as drafted

If the motion is approved the general manager will execute the agreement and lease

Define and adopt a modified motion

Board would need to define any modifications or amendments to the draft motion language. This will likely require staff to bring back an amended version.

Deny the motion or take no action

If this motion is denied staff will need direction from council on desired amendments.

Refer back to staff

If the Board refers this item back to staff direction on the revisions necessary prior to a decision will be needed.

Analysis The governing agreement between the city, the Sundance Institute, and CAGID outlines the foundation of how the city will support the Festival operations in the city, similar to other major special events the city holds. It also outlines the in-kind contributions and financial rebates that the city commits to support the annual Festival. The agreement includes the following which is applicable to the district: • • •

•

An agreement to lease CAGID-owned office space to the Sundance Institute for Institute offices. Traffic, parking and transportation planning, coordination and impact mitigation City Revenue Sharing, Rebates and Credits o Shared parking revenue for 1,000 parking spaces in downtown garages (up to $500,000 annually) Insurance requirements and other contractual terms.

Equity Analysis The development of this governing contract is a direct result of the bid process, and therefore the racial equity instrument was not utilized.

Fiscal Note Estimated Fiscal Impact Narrative No fiscal impact in 2025. Current Year Estimated Fiscal Impact Fund(s): CAGID Department(s): Community Vitality Program(s): Multiple

FY 2025 Budget

FY 2025 Estimated Impact

FY 2025 Net Change

Beginning Fund Balance

$23.1M

$0.0M

$23.1M

Total Forecasted Revenue

$9.8M

$0.0M

$9.8M

Total Estimated Expenses

$17.8M

$0.0M

$17.8M

Ending Fund Balance(s) After Reserves

$14.0M

$0.0M

$14.0M

FTE

19.66

0.0

19.66

Item

Three-Year Estimated Fiscal Impact The first year of fiscal impact for the terms contained in this contract will be in 2027. The forecasted revenue and expenses for the shared parking revenue are to be determined based on additional planning and pricing determinations as we get closer to the 2027 Festival.

Item

FY 2025

FY 2026

FY 2027

Total Forecasted Revenue

$0

$0

$TBD

Total Estimated Expenses

$0

$0

$TBD

Net Estimated Impact

$0

$0

$TBD

Climate, Resilience, and Sustainability Considerations The governing contract includes consideration of renewable energy credits to support climate impacts of the Festival, efforts to reduce traffic impacts, and in general the city and the Sundance Institute are collaborating on sustainability aspects for the Festival.

Community Engagement Because the city participated in a competitive bid process, no community engagement was conducted during the process. The development of this governing contract is a direct result of the bid process and, therefore, is a Inform level of engagement.

Workplan Considerations The implementation work to be ready to support the 2027 Sundance Film Festival is underway and included in staff’s workplan.

Next Steps for City Council acting as CAGID If CAGID approves the motion, the general manager (city manager) will execute the agreement, negotiate and finalize any relevant leases, and subsequent amendments to support Festival operations beginning in 2027.

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Attachments A – Resolution 319, including Exhibit A: Governing Festival and City Services Agreement