Understanding Downtown Development Authorities (DDAs)

What is a DDA?

The City of Boulder is exploring the potential creation of a Downtown Development Authority (DDA), a special district authorized under Colorado law that communities may use to support redevelopment, infrastructure improvements and other investments within a designated area.

The proposed DDA boundary includes Downtown Boulder, the Civic Area and University Hill. If established, the DDA would operate for an initial 30 years, and could use financing tools such as Tax Increment Financing (TIF) to support projects within the district.

TIF works by capturing a portion of future increases in property and sales tax revenues generated within the district and reinvesting those funds within the district. Under Colorado law, DDAs are intended to support reinvestment, redevelopment and revitalization in designated areas.

If created, a DDA would operate as a separate special district under Colorado law with its own board and governance structure. The City of Boulder would continue to provide municipal services and retain its existing authority over land use, zoning and development review.

Why is the City of Boulder exploring the creation of a DDA?

Boulder's existing commercial districts - the Central Area General Improvement District (CAGID) and University Hill General Improvement District (UHGID) - were established more than 50 years ago to support shared parking, infrastructure and maintenance within the city's central commercial areas. While these districts continue to fulfill their original purpose, the needs and conditions of Downtown Boulder and University Hill have evolved over time.

Today, these districts face changing economic conditions and infrastructure needs, including shifts in retail and office markets, aging facilities, increasing expectations for public spaces and maintenance, and the need for coordinated long-term investment strategies.

City analysis has found that Downtown Boulder and University Hill have experienced declining economic performance over the past six years when adjusted for inflation. These trends have prompted discussions about how best to support reinvestment, economic activity and long-term district stewardship.

In response, the city has been evaluating whether a DDA could serve as a financing and governance tool to help implement community priorities and support future investments within the proposed district.

What is a DDA designed to do?

A DDA is guided by a Plan of Development that establishes priorities for investments, projects and programs within the district. In Boulder, the draft Plan of Development identifies five policy areas for potential future investment across Downtown Boulder, University Hill, the Civic Area and the corridors that connect them.

As outlined in the draft Plan of Development, a DDA could support efforts to:

• Catalyze redevelopment at strategic sites, including underutilized properties and aging buildings.
• Strengthen commercial corridors and support small businesses through investments that encourage economic activity and occupancy.
• Support housing and mixed-use development opportunities throughout the district.
• Partner on improvements to public spaces, including areas such as Pearl Street Mall and the Civic Area.
• Improve multimodal connections between Downtown Boulder, University Hill and the Civic Area.

The draft Plan of Development is intended to provide a coordinated framework for future investment if a DDA is ultimately established by voters.

How does the formation process work?

To help guide this effort, the city convened a community-based Planning Group as part of the DDA exploration process. The group includes community members representing different parts of the proposed district and provides input on governance, funding, boundaries and long-term priorities.

Over the past year, the city and Planning Group have worked with stakeholders to refine potential district boundaries and develop a draft Plan of Development that would guide future investments, projects and strategies. The process is now entering its next phase, focused on legal formation steps and City Council review.

If City Council approves a ballot measure, eligible electors within the proposed district would vote on the formation of a DDA in the November 2026 election. Eligible electors include residents, property owners and qualified business tenants within the district, as defined by Colorado law.

If voters approve the formation of a DDA, City Council would certify the election results, appoint the initial DDA Board and authorize the establishment of governance documents and bylaws. The Board would then finalize and adopt a Plan of Development and begin implementation consistent with approved funding tools and applicable law.

If established, Boulder would join other Colorado communities including Fort Collins, Denver, and Longmont that have created Downtown Development Authorities as a tool to support reinvestment and redevelopment within designated districts.

Explore additional FAQs and learn more about the project on the project webpage.