Correction: Based on new information, this story has been changed to reflect the fact that the new Starbucks could be a regular coffee shop and not a Starbucks Evenings.

A startup incubator and a new Starbucks coffee shop are expected to open in Boulder's University Hill business district.

A Starbucks is in negotiations to open at the redevelopment that replaced Jones General Store. Mike Boyers, local developer and property owner, announced the lease negotiations Friday morning at a meeting involving Hill business owners and city officials.

The Starbucks is expected to be at 1350 College Ave. in the space briefly occupied by Zanitas Mexican Restaurant, Boyers said.

Starbucks operates a coffee shop at 1402 Broadway, off University Avenue. The University of Colorado acquired that property for $1.07 million in 2011.

Also unveiled at the meeting were plans to establish a 5,400-square-foot student-focused startup incubator.

The meeting was organized by Bonnie Dahl, co-owner of The Fitter and Yoyo's Frozen Yogurt, who aimed to generate discussion about the health and direction of the business district that sits west of CU.

Boyers -- who said he's invested roughly $25 million in the area during the past couple of years -- said he would be willing to contribute to seed funding to invest in efforts to spur activity and economic development on the Hill.

"I've got businesses up here that need more people," Boyers said.

During 2012, the Hill business district contributed $1.03 million in sales tax revenue to the city's coffers, a decline of 1.77 percent from the year before.

Business owners such as Mark Heinritz, co-owner of The Sink, expressed a desire for the city of Boulder to increase funding and support for the business district. Others suggested creating a "microdistrict" to transition the area into an arts district and a home for arts-related events.

"I think the Hill just needs a different opportunity," Heinritz said, echoing other business owners' concerns that the city did not follow through on intentions to help revitalize the area.

Recent discussions about potentially reforming the city's liquor licensing regulations could negatively affect businesses in the district that sits within 500 feet of CU, he added.

Limiting the options of what businesses can or cannot operate in the area could seriously harm the potential for economic growth, Heinritz said.

"My central concern is that doing anything with the 500-foot (liquor) rule is going to stamp the Hill as 'kids only,'" Heinritz said.

In a statement sent to the Camera following Friday's meeting, city officials said it will take a collaborative effort to bolster the Hill.

"The meeting was a very healthy and robust discussion about the many successes that have occurred on University Hill and an honest conversation about the work yet to be done to enhance the General Improvement District," Patrick von Keyserling, a city spokesman, said in the statement. "The city invested about $400,000 this year and is projecting a $425,000 investment in 2014 to continue partnerships with the residential and commercial districts, and improvements such as the road repair and waterline replacements on College Avenue.

"The vibrancy of University Hill is important to the community, and it requires a collaborative effort to address the challenges."

Contact Camera Business Writer Alicia Wallace at 303-473-1332 or wallacea@dailycamera.com.