DENVER — A Denver City Council committee on Tuesday advanced an ordinance that would write the city’s program for small businesses hurt by construction into law and require money to be set aside for it.
The Finance and Business Committee approved two ordinances, one creating the Business Impact Opportunity Program and one creating a special revenue fund for it. The measures now go to the full council.
A sponsor said the goal is for the program to take effect Jan. 1, 2027.
Councilmembers Amanda Sawyer, Chris Hinds and Flor Alvidrez sponsored the measures. The program, known as the BIO Fund, gives grants and technical help to small businesses affected by city-funded construction.
Hinds, who chairs the committee, said it has operated entirely within the city’s executive branch and that the sponsors want it in ordinance.
Hinds said the city asked its economist and the Department of Finance to look at sales tax collections in three business improvement districts along East Colfax: Colfax, Bluebird and Mayfair. He said collections were lower once bus rapid transit construction began than in the same months a year earlier. He did not give figures.
The city presentation said construction projects costing $10 million to $25 million and lasting more than 12 months would set aside at least 1% of their budgeted cost.
Projects of $25 million or more lasting more than 18 months would set aside between 1% and 5%. Hinds said projects under $10 million would not be covered.
A sponsor said the money has to come from the city’s general fund because the city has been unable to find a dedicated source. The sponsor said writing the set-aside into law means the program must be funded, which should end the yearly debate over where to find the money.
To qualify, a business must be in Denver, registered, licensed, and in good standing, and located directly within the area of a city-funded project. Hinds said the city will not fund Aurora businesses along the bus rapid transit line.
Businesses with annual gross revenue of $100,000 or less could receive grants of no more than 10% of that revenue. Businesses above $100,000 could receive at least $15,000, the presentation said. Amounts would be adjusted for inflation, and the economic development department could set more details in rules.
The ordinance also allows tax assistance for affected businesses, but only as allowed by law. A sponsor said the state’s Taxpayer’s Bill of Rights makes that complicated and it would have to be decided project by project.
Adeeb Khan, executive director of Denver Economic Development & Opportunity, said the department has not worked out how it would operate. He said the department would need to work with Finance, which administers tax receipts.
The special revenue fund lets unspent money roll over from year to year instead of returning to the general fund. The presentation said city administrative costs would be capped at 7% of the appropriation. Starting Jan. 1, 2028, the department would report each year to the mayor, council and auditor on eligible projects and how the money was spent.
John Feld, whose organization The Fax Partnership has helped administer the fund with the city for two years, told the committee that a city study showed 95% of businesses that received grants stayed open. He said many East Colfax businesses saw their eligibility expire before construction hurt them most, and he urged the committee to create a second window.
Helen Teckle, a senior business manager with the East Colfax Community Collective, said two business owners she works with were denied in the last round. She said some brick-and-mortar businesses do not make enough to meet a minimum revenue requirement.
Khan said the department supported 100 businesses last year and 88 so far this year. He said the ordinance’s wording would allow broader eligibility. He said the program cannot save every business.
“It will not make businesses whole. You will still have businesses that will fail as a result of construction.”
A sponsor also said the city should not be solely responsible for businesses affected by projects on roads owned by the state or federal government, such as Central 70, Federal Boulevard and Colorado Boulevard.
The ordinance calls for a discussion, possibly an intergovernmental agreement. The sponsor confirmed the fund could accept money from other governments.
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