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Modified Annexation Agreement for Banning Lewis Ranch to Generate $49M in Net City Revenue

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Presentation to Council provides financial impacts of  proposed modification

COLORADO SPRINGS, Colo. – Modification of the annexation agreement for Banning Lewis Ranch would spur development and generate $49M in net revenue for the City over the next 30 years according to an economic and fiscal impact report presented to City Council today [Monday, November 27, 2017]. Further, the projected growth would add $41 Billion to the city’s economy over the same period. The study also indicates that development would bring $434 Million in additional net revenue to Colorado Springs Utilities. The analysis was prepared by TischlerBise, a national leading fiscal, economic and planning consultant.

Projected growth in Banning Lewis includes 24,000 new homes for 62,000 new residents over 30 years. The area is also expected to generate 35,000 new jobs during that time. Net fiscal impact numbers were derived by considering the additional costs of service to the area (e.g. emergency services, infrastructure), against the potential revenues (e.g. sales tax) generated by the annexation.

“Putting an appropriate annexation agreement in place for Banning Lewis that pays for the cost of development and stimulates economic growth has been a priority over the past year. We know that development is currently leap-frogging the area and creating a donut effect, with business and residential development occurring in unincorporated El Paso County, rather than Banning Lewis Ranch,” said Bob Cope, economic development officer for the City of Colorado Springs.  “The analysis indicates that future development in Banning Lewis Ranch will more than pay for itself over the short, intermediate and long term and will create significant positive economic growth for the city.”

Banning Lewis Ranch was annexed into the City of Colorado Springs in 1988. Since 1988, very little development has occurred. A major factor deterring development activity has been the Annexation Agreement put in place in 1988. This has resulted in lost economic opportunity, lost municipal tax revenue and lost utility revenue.

City Council will be presented with an opportunity to approve a modification to the existing BLR Annexation Agreement at future City Council meetings. The full presentation is attached.