Boulder City Council on Thursday, Sept. 18, approved an ordinance requiring developers to pay into an escrow account for transportation benefits, such as RTD EcoPasses and bike and car share credits. The change is expected to increase construction costs for commercial and housing projects, while boosting funding to help people get around without driving.
The goal is to minimize the impacts of new development on the city’s transportation system and enable more people to avoid driving vehicles. The policy follows the city’s repeal of parking minimums, which was part of a broader effort to reduce housing costs and rethink car-centric streets that left an excess of parking.
Currently, as a condition of approval, the city typically requires developers to contribute to an escrow account that tenants use primarily for EcoPasses. However, many of those payments expire after three years with no requirement to continue them, according to Chris Hagelin, a senior transportation planner for the city.
The new ordinance requires annual, ongoing payments from developers or property owners when a project exceeds certain size thresholds. The money would then be disbursed to tenants for amenities like EcoPasses and other transportation options. It could also fund a “transportation wallet” used to pay residents not to drive.
The ordinance sets out tiered “financial guarantees” and requirements based on the square footage of the development or the number of housing units. For example, a housing project with 200 dwelling units would require a payment of $280 per unit each year, amounting to about $56,000 annually. The Target on 28th Street, which is about 175,000 square feet, would have to pay about $86,000 a year, according to a presentation from city officials.
“One of the reasons this ordinance is paired with the elimination of parking minimums is because there’s a great deal of money to be saved,” Hagelin told the city’s Transportation Advisory Board last month. “Parking is very expensive to build, and it’s also expensive to maintain.”
The city plans to measure results with resident surveys and vehicle trip counts, Hagelin said. For larger projects, developers would also pay into a remedial fund to implement a plan if targets are missed. The new rules are set to take effect April 1, 2026.