The Nederland Downtown Development Authority (NDDA) met on Wednesday, September 13, 2023, at 6 p.m. to finalize their prioritized list of official goals. They also decided if, and how, to use their $500,000 line of credit.

On August 3, 2023, the NDDA attended a work session aimed at clarifying and discussing each board member’s suggestions for the organization’s goals. The intent was for a prioritized list to be created and drafted into an official document.

Board members gauged the “impact” of each goal, based on how the suggested goal affects the NDDA’s ability to foster a successful Central Business District (CBD), and gauged “effort” on the amount of time and money that goes into each respective project.

Each goal was categorized in one of four quadrants. Those listed as “high impact, low effort” were: increasing the Public Art budget; increasing the Beautification budget; and providing grant writing support for businesses.

“High impact, high effort” goals included: creating a summer concert series; changing municipal code to limit empty buildings remaining empty; creating an evaluation system for special event funding; continuing the Wayfinding project; developing a River Walk; creating a sanitation district; and developing parking solutions.

“Low impact, low effort” goals included instituting a free bus pass for employees who commute to Nederland, and developing better electrical infrastructure at Chipeta Park. And “low impact, high effort” goals were to develop better public engagement for the NDDA and bringing back 4th of July fireworks.

A concern was raised regarding a disconnect between the NDDA’s goals and their budget in relation to upcoming municipal code changes to be made that support affordable and alternative housing. The issue of assessing the code changes was ranked as their third priority; however, the board’s draft 2024 budget does not include a line item pertaining to the issue.

Town Administrator Miranda Fisher specified that a financial commitment from the NDDA was not necessary as the recent Housing Needs Assessment, conducted by third-party consultants Bohannan Huston, is paid for, nearly complete, and will provide suggestions for the code changes necessary. Fisher noted that the NDDA is required mainly in an advisory capacity.

Chair Ron Mitchell asked how the Town’s housing issues are within the NDDA’s purview, to which Vice Chair Andrew Dewart stated his opinion that the board should be involved with discussions about code change due to businesses within the CBD being affected by the Town’s lack of available affordable housing for Nederland’s workforce.

Due to the close relation between the organization’s goals and their draft 2024 budget, board members decided to conclude the discussion of prioritizing their goals until later in the meeting when addressing the final draft and vote of approval for their budget.

Board Member Scott Papich discussed how the NDDA project evaluation criteria could possibly be used for future proposals. Papich proposed questions that he suggested should be asked of any business, community member, or member of Nederland’s advisory boards.

The twelve suggested questions covered such concerns as: who the project impacts most; if the project will generate revenue, and if so for whom; whether the projections, estimates, and timelines for a project are realistic; and whether the intended project falls under the NDDA’s jurisdiction or is more of a Town project to be headed by the Board of Trustees (BOT).

Mitchell expressed his personal disagreement over the language used in the twelfth and final question, which reads: “We should objectively and proactively identify conflicts of interest. Any proposed project that entails clear conflicts of interest, or even the appearance of such, should not be influenced by members of the DDA who are in specific conflict (either by voting or even in our discussions).”

Mitchell took issue with use of the phrase, “even the appearance of such,” as he expressed that the appearance of a conflict of interest was not for any one board member to be the judge of in any capacity that would affect another member’s ability to vote on a project.

Papich took Mitchell’s and other board members’ suggestions and will return at a later meeting with an edited and updated project evaluation criteria for further review.

Moving on to the Action Items on their agenda, the NDDA voted to approve funding requests for several special events, including $1,000 from the Special Event fund for marketing for the Peak Vibes festival, which took place on September 9, 2023; as well as $1,000 for the October 1 Harvest Fest for marketing costs; and $2,100 from the Traffic and Safety fund for the Nederland Farmers Market.

Board Members Steve Karowe and Steve Rowntree presented proposed next steps for the Wayfinding project, the town-wide walkability and accessibility initiative. The NDDA were tasked with approving current signage locations and messaging, as well as voting whether the Wayfinding Committee should continue with third-party consultant group Merje to finalize the remaining signage designs.

The committee presented a signage map which indicated the placements of four district gateway signs, seven informational kiosks, 11 parking indication signs, and over 30 “vehicular” signs. Merje has been communicating with CDOT, private property owners, the city of Boulder, Boulder County, and the US Forest Service in order to accurately implement each sign through its placement and messaging.

Board members had no questions or concerns regarding the signage map and a motion was made to approve the committee moving forward with Merje to finalize all signs and produce design documents. The motion was seconded and passed unanimously.

The NDDA voted on the final draft of their 2024 budget to be recommended to the BOT at their meeting on September 19. Board members previously reviewed the draft of their budget during a work session on August 22.

The budget for Beautification was doubled from $30,000 in 2023 to $60,000, as board members are planning on placing more trash receptacles throughout the CBD.

A nod of four was given to approve a budget of $400,000 to the Wayfinding committee to complete the project in 2024, with members choosing to budget more than currently expected for completion as a cautionary measure to avoid having to go before the BOT with a supplemental budget.

The Public Art Committee budget was raised $30,000 for 2024, bringing the total budget to $50,000; and the Traffic and Safety fund budget was raised from $30,000 to $50,000.

The budget for the Performance Space Committee was set to $50,000 for the development of a summer concert series, which will provide the committee with the fiscal impact and community feedback needed to determine the validity of the performance space project.

There was discussion about setting the budget for the proposed River Walk project to $5,000. Board Member Barbara Hardt provided an update on the project after having walked the areas on the north and south side of the creek with Nederland Parks Department Manager Nicki Dunn.

Originally, the north side of the creek, running behind businesses on 1st Street, was the proposed location for the river walk. However, both business and private property owners have not been open to discussing such a prospect at this time. The recommendation from Dunn is to beautify the trails on the south side of the creek, running from the covered pedestrian bridge, behind the lodge, and connecting to Chipeta Park.

The NDDA also opted to budget $140,000 for matching funds for a potential grant to replace the crusher fine sidewalks in the CBD; board members also agreed to set aside $20,000 in the event that the Town requires financial support in the creation of a comprehensive parking plan.

A motion was made to approve the 2024 budget including all changes made to the draft during the meeting. The motion was seconded and passed.

Board members approved contracting with Downtown Colorado Inc. (DCI) to establish a financial strategy for each of the NDDA’s set goals. DCI is an organization that assists with downtown growth through advisory services, educational events, and financing mechanisms.

DCI’s proposal states that they would synchronize the NDDA’s priorities with the Town’s, build Action Items for official approval, and establish the proper budget line items for 2024 and 2025, all as part of their $12,500 contract.

The timeline and scope of work includes an initial planning meeting with key stakeholders, as well as the formation of a survey to take place sometime between late September and mid-October; the survey to be conducted and results to be reviewed throughout October; and in-person meetings and events to be conducted up until January 2024, with their official recommendations to the NDDA to be delivered in February 2024.

The NDDA were tasked with voting on whether to borrow from the organization’s $500,000 established line of credit to pay their bills and fund their projects.

During discussion of this topic previously some board members expressed agreement with Mitchell’s proposal in regard to using credit to build credit, though some were opposed based on there being no specific project or plan currently before the board to fund with its established credit.

Papich, during discussion on August 9, 2023, stated his belief that leveraging credit for the benefit of the NDDA while also potentially becoming a money lender to local businesses resulted in a conflict of interest for Mitchell, who leases several properties to businesses throughout the CBD.

Mitchell replied that the intended use of one’s supposed conflict of interest is what should be considered when scrutinizing, and stated that all board members had a conflict of interest due to either living in Town and/or within the district, and owning businesses in Town.

A special one-hour informational meeting was scheduled on August 11 for board members to hear from Troy Bernberg, Managing Director for an investment bank based out of Minneapolis, and to ask questions pertaining to the proper use of the NDDA’s line of credit.

Considering that the NDDA has a mill levy and due to a provision in their statute which dictates that any amount the organization borrows is subject to a debt limit set by the Taxpayer’s Bill of Rights, the organization is restricted as to what type of projects they can fully fund by using its line of credit.

The NDDA is prohibited from independently using a line of credit for any high-cost, long-term capital improvement plans, or any project that creates revenue for the NDDA, without approval from the BOT; and with the contribution being only a portion of the full funds required for a collaborative project with the Town.

Bernberg suggested engaging the developer community by championing projects that interest them and to focus on contributing to the final phase of funding on projects that have already been initiated by partnered entities, such as the Town of Nederland.

A motion was made for the NDDA to begin using the line of credit only on major capital expenses that have been established within budget items and to be paid back within less than 48 hours, and that does not exceed $50 in interest costs and $10,000 in transaction fees.

The Nederland Downtown Development Authority meets the second Wednesday of every month. Their next meeting is scheduled for Wednesday, October 11, 2023, and will be held online as well as in person at the Nederland Community Center.

For more information go to: https://townofnederland.colorado. gov/ downtown- developmentauthority