Longmont approves urban renewal plan, up to $38 million for transit-center garage
The unanimous action advances a five-story, 700-space downtown garage toward a planned 2026 debt sale and construction, with final borrowing terms to be set later.
Longmont City Council unanimously approved the First and Main Urban Renewal Plan and authorized up to $38 million in certificates-of-participation financing for a five-story transit-center parking garage and related capital improvements.
The action advances a downtown project that city staff estimate will cost about $60 million. Staff identified roughly $35 million in existing funding, leaving an estimated gap of about $25 million. The council also approved a finding that the urban-renewal area is blighted and appropriate for redevelopment, according to the Sept. 8 council meeting recording.
The garage is planned to have about 700 spaces across five stories and 10 bays. The financing authorization is a ceiling, not a final borrowing amount. City documents set a maximum aggregate principal of $38 million, a maximum net effective interest rate of 5.75% and maximum total base-rental payments of $74 million. The city has not yet set the final amount it will issue or the total interest cost.
The financing plan allows one or two lease-purchase financings. A generally tax-exempt series would cover city and Regional Transportation District uses, while a taxable series could finance up to 350 parking spaces serving the project's private residential portion. The certificates would be repaid through lease revenues and annual appropriations rather than a single dedicated tax.
City staff projected annual payments of about $2.21 million beginning in 2029 and continuing through 2056. Projected repayment sources include tax-increment revenue from the Longmont Urban Renewal Authority, parking fees from private development, and money from the city's Public Improvement and Street funds. The payment amount and repayment schedule will depend on the debt terms ultimately selected.
The city's project materials estimate total transit-center uses at about $59.6 million and sources at about $35 million. The estimated uses include construction, land and demolition, design, soft costs and ownership expenses. Staff said the city expected to market the debt in October, with a target closing date of Oct. 22, 2026. Groundbreaking was targeted for late September or early October, followed by vertical construction in November; those are planned dates, not completed milestones.
The project will be built alongside several other downtown efforts, including the Coffman Street extension, quiet zones, multifamily housing, Boston Avenue improvements, the Boston connection and the South Parkway Bridge. Staff said coordinating six or seven projects would help manage timing and traffic disruptions, but did not provide a phase-by-phase construction schedule.
The city's project and financing materials authorize the city manager or chief financial officer to determine the timing and method of sale and whether to finance all or part of the project. Final terms are to be set in a later sale certificate.