Denver Panel Advances Plan Forcing Big Construction Projects to Pay Hurt Businesses

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Denver businesses sitting in the shadow of major construction could soon get a guaranteed pool of money to lean on, instead of waiting on the mayor's say-so each time. On Tuesday, the city's Finance and Business Committee advanced a plan to make that kind of relief permanent, sending two ordinances to the full City Council that would reserve funding specifically for businesses caught in the dust and detours of future large-scale city projects.

The committee's action, reported by 9NEWS, would codify Denver's existing Business Impact Opportunity program, known as the BIO Fund, and create a dedicated special revenue fund to hold its money. That fund would be dedicated to the program.

How the Money Would Flow Under the proposal, the size and length of a construction project would determine whether nearby businesses qualify for help at all. City-funded projects costing between $10 million and $25 million would be required to contribute at least 1% of construction costs toward the fund if the work lasts 12 months or longer. Bigger jobs — those topping $25 million — would kick in 1% to 5% of construction costs, but only if they run at least 18 months. Projects under $10 million would be excluded entirely.

Once a business qualifies, the proposed BIO Fund would cap any single grant at $35,000. Only businesses located in Denver would be eligible; companies affected by a project but based outside the city would not qualify. The ordinances also explore letting the city pay businesses back through tax rebates — reimbursing taxes a business already pays rather than drawing fresh money from another pool.

A Complication Named TABOR The proposal also raises questions about how the BIO Fund would be funded.

Khan has spoken about planning for construction impacts. The BIO program distributed funds to 100 businesses last year.

Colfax as the Cautionary Tale The push for a permanent fund didn't emerge in a vacuum. Colfax's bus rapid transit construction project offers a local example of business changes alongside major construction.

The numbers along Colfax show both closures and new openings. A Denverite report found that 10 businesses across three Colfax business improvement districts had closed since construction began in October 2024, with nine new businesses opening to take their places — a slowdown compared with the roughly 20 closures per year those districts averaged in the post-COVID years.

One Colfax business improvement district executive director told the same Denverite report that not a single business in that district had closed because of construction, and that occupancy actually improved during the work, while acknowledging things weren't entirely rosy for every business. Mayor Mike Johnston moved to make $2 million available to replenish the BIO Fund, about half of it from the general fund, contingent on the council developing a long-term program design.

Smaller Grants Came First Before the city stepped in with larger relief, the privately funded Colfax Avenue Business Improvement District ran its own microgrant program, offering $500 to $1,500 to businesses that could prove at least a 10% revenue loss tied to construction impacts, as detailed in a Denverite report on grants for businesses between Grant and Josephine streets. Those funds could cover rent, payroll, emergency repairs, marketing campaigns, or efforts to drum up new revenue streams, according to CBS Colorado. The city's own earlier grant program for BRT-affected businesses required a steeper threshold — proof of at least a 20% revenue loss — in exchange for grants up to $15,000.

By February 2025, Colfax businesses were contending with construction challenges, as The Denver Post reported.

The stakes extend beyond any single storefront. With the ordinances now in front of the full Denver City Council, the next step is whether that permanent funding structure survives the vote.

Denver Panel Advances Plan Forcing Big Construction Projects to Pay Hurt Businesses

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