Title
A resolution approving a service plan allowing for the creation of the Greenways Metropolitan District Nos 1-3.
(Legislative)
Presenter:
Carl Schueler, Planning Manager- Comprehensive Planning, Planning & Development
Peter Wysocki, Director of Planning and Community Development
Body
Summary:
This service plan would allow the formation of the Greenways Metropolitan District Nos 1-3 (“Districts”) to finance public improvements cost and provide services for a proposed development area located in the vicinity of the Colorado Springs Ranch development in northeast Colorado Springs. The service plan allows for two residential districts and one smaller commercial district.
This item was discussed by the City Council Budget Committee on June 23, 2020 with these discussions summarized below. The Budget Committee requested individual maximum debt authorization caps for each of the 3 districts. A response has been provided in an updated draft service plan, which is attached.
This agenda item was introduced at a July 13, 2020 City Council Work Session, at which time there we no additional comments or questions.
Background:
These proposed metropolitan districts would provide property tax-based public improvements financing and services for the recently approved Greenways infill development located east of Power Boulevard primarily on the site of a former golf course. The overall proposed district area encompasses about 172 acres, and would accommodate on the order or 800-1,000 planned dwelling units. The affected property has Planned Unit Development (PUD) zoning approval consistent with the purposes and financial projections of this service plan.
The service plan does not request any deviations from the limitations in the City’s current Special District Policy and Model Service Plans.
This would be a consolidated service plan with three (3) districts created, two for residential purposes and one with non-residential uses. Unlike with several multiple district structures created in the past, in this case there would not be a small operating district.
The service plan allows a service mill levy cap of up to 30.0 mills Gallagher-adjusted back to 2006. Effectively, this limit would apply to District Nos. 1 and 2. District 3 would have a Gallagher-adjusted cap of 50.0 mills, provided that it does not contain residential uses. The maximum Gallagher-adjusted operations and maintenance mill levy will be 10.0 mill for all the districts.
The effective maximum combined debt authorization for these Districts is proposed to be up to $31,000,000 based on a preliminary cost estimate of about $27,100,000. The service plan specifically allows for District Nos. 1 and 3 to issue up to $24,000,000 in combined debt, with the limit for District No. 2 being $7,000,000. Districts 1 and 3 are combined because their public improvements are highly interrelated.
Authorized ongoing operations and maintenance functions for these districts are established in Exhibit D of the service plan. These include covenant enforcement, parks and community center operations and maintenance, streetscapes, monumentation, public art and storm water facility ownership and maintenance. Altogether, the petitioner has represented that the Districts may ultimately own and be responsible for up to 48-50 acres of property within this development. The developer has also indicated separate home owner’s associations are anticipated to be created within this project area.
Included as attachments are a clean copy of the most recent version of the service plan including exhibits, along with a “redline” showing insertions into the Model Service Plan.
This item was discussed at the June 23, City Council Budget Committee meeting. At that meeting, the Budget Committee asked for background and justification for why two residential districts were necessary, and requested individualized maximum authorized debt limits for each District, based on disaggregated costs. As noted above, the service plan has now been revised to separate out maximum debt authorizations for District Nos. 1-3 as a combination, and for District No. 2.
Colorado Revised Statutes include four criteria for which and affirmative finding must be made in order to approve this service plan, along with five other criteria which may be considered. These are all included within the body of the City’s Model Service Plans and this particular service plan. The four required criteria are as follows:
• There is sufficient existing and projected need for organized service in the area to be serviced by the Districts;
• The existing service in the area to be served by the Districts is inadequate for present and projected needs;
• The Districts are capable of providing economical and sufficient service to the area within its proposed boundaries; and
• The area to be included in the Districts does have, and will have, the financial ability to discharge the proposed indebtedness on a reasonable basis.
The petitioner’s attached supplemental correspondence dated July 1, 2020, addresses these required criteria and findings.
Previous Council Action:
This would be a new metropolitan district for this area and property. City Council has recently approved PUD zoning for the land uses contemplated by this service plan, and has approved a related land trade.
Financial Implications:
There are no direct implications to general City taxpayers and ratepayers outside of the boundaries of this District.
Board/Commission Recommendation:
Stakeholder Process:
The staff-level Special District Committee has been provided with the materials associated with this request. Comments or concerns from the Committee have been addressed in these documents.
Alternatives:
City Council has the options of approving or denying this service plan. Council could also approve the service plan with changes.
Recommended Action
Proposed Motion: (for July 28, 2019)
Approve a resolution of the City of Colorado Springs approving a service plan allowing for the creation of the Greenway Metropolitan District Nos 1-3
Summary of Ordinance Language
N/A