The popular Alley Enhancement project, funded by the Fort Collins Downtown Development Authority, has been stalled because of changes in state policy that cut the DDA's budget.

The DDA's Alleys Master Plan initially called for 10 alleys to be improved through a variety of beautification processes, and three of those alleys have been completed to date.

"With a 56-percent reduction in revenue, it will take the organization several years to save up and put funds in place to design and construct the next round of alley enhancements," said Matt Robenalt, executive director of the DDA.

In 2010, Old Firehouse Alley and Montezuma Fuller Alley were both improved with pavers, pedestrian-scaled lights, flower pots and street furniture. In 2011, West Myrtle Alley received similar treatments, transforming it into a welcoming, safe place for pedestrians.

But, because of a law signed in Fort Collins in 2008 by former Gov. Bill Ritter, the DDA's tax increment revenues were reduced by 56 percent beginning this year. The statute is actually a positive development for the DDA, which would have been forced to close its doors at the end of 2011 if the law had not passed.

In addition to allowing the DDA to