City of Boulder 2D -- Permit City Lease Up to Thirty Years

The city leases land and structures to various tenants for 20 years, the maximum lease allowed.  Examples include Chautauqua, Spice of Life, EFAA, Eco-Cycle and airport tenants.  Twice the city has attempted to increase the lease term to 40 years, but voters rejected the attempts in 2007 and 2008.  This go-round the city is asking to raise the limit only to 30 years and only in limited circumstances -- when the tenant improves the property and when 6 members (two-thirds) of city council approve.

The tenant must show that the change to the property will benefit the community and must provide a business plan for repayment of any loans taken out to pay for the property change.  The city has to approve the financing.  Once the lease term is up, the city keeps the improvements except for tenant finishes.

The city argues that it is missing out on some great tenants with only a 20-year lease term; the tenants go elsewhere taking jobs and economic benefits with them.  The tenants argue that 20 years is not enough time to get a return on their investments.

Opponents point out that 20 years is a long time and that, with the world changing so rapidly, there is no telling what the city will want in 20 years, much less 30 or 40 years.  They also point out that the city can help tenants with financing especially since the city owns the improvement at the end of the lease term.

The city charges business tenants a market rate and nonprofit tenants a reduced rate (typically $1 per year).

Recommendation: lean toward for

The proposed changes in lease terms seem advantageous to the city, but I’m not sure I’d want to jump through the hoops necessary if I were a tenant.

City of Boulder Ballot Question No. 2D (Approved Ballot Language)
Permit City Lease Up To Thirty Years

Shall Section 111 of the Charter be amended pursuant to Ordinance No. 7858 to allow the city, upon approval by a two‐thirds vote of all council members, to grant a lease of public property for a period of more than twenty years and up to thirty years (rather than the current maximum of twenty years) if the tenant makes significant improvements to the public property that the council finds provides a public benefit?
‐For the Measure
‐Against the Measure


See Ordinance No. 7858 to refer 2D to the voters.
http://www.bouldercolorado.gov/files/Elections/2012/7858%20-%2030%20Year%20Leases.pdf