Title
A resolution of the City of Colorado Springs consenting to the dissolution of the Gold Hill Mesa Metropolitan District No. 1.
(Legislative)
Council District 3
Presenter:
Drew Foxx, Planner II, Planning Department
Kevin Walker, Director, Planning Department
Body
Summary:
The attached resolution will authorize the administrative dissolution of the Gold Hill Mesa Metropolitan District No. 1 (the “District”), which is finalized through State and District Court. The District is no longer active and the District board of directors and current property owner(s) are in concurrence with its dissolution.
The District was approved for formation by City Council on September 14, 2004 via Resolution No. 197-04 and was formally organized pursuant to an Order and Decree of the El Paso County District Court on November 8, 2004. The District is located southeast of Sout 21st Street and State Highway 24 and includes a small strip of land not intended for development. As of 2025, the District no longer has any outstanding financial obligations, has no active capital projects, maintains no infrastructure, does not own any assets, has no remaining administrative functions, and has no other service responsibilities as these obligations and responsibilities have been transferred to Gold Hill Mesa Metropolitan District No. 2. As such, the District requests the City Council of the City of Colorado Springs consent to a dissolution of the District pursuant to C.R.S Section 32-1-704(3)(b).
Background:
The preliminary service plan and amended consolidated service plan for the Gold Hill Mesa Metropolitan District Nos. 1 - 3 was approved by City Council in 2004 and 2006 respectively. At that time, the intended structure was for District No. 1 to function as an administrative and oversight district responsible for coordinating financing, authorizing intergovernmental agreements, and supporting the operations of the residential and commercial districts.
Gold Hill Mesa Metropolitan District No. 2 (“District No. 2”) was created to encompass all of the residential development and is responsible for providing operational services to property owners and funding the costs associated with public infrastructure. Subsequently, the original detached single-family and the single-family attached residential portion of this project have been largely built out and included in District No. 2. Since 2024, District No. 2 has been responsible for the operational and financial responsibilities of District No. 1. Currently, District No. 2 has a number of resident board members, whereas District No. 1 has a board comprised entirely of developer representatives.
Gold Hill Mesa Metropolitan District No. 3 (“District No. 3”) was created to encompass all commercial development and was responsible for providing operational services and funding costs associated with infrastructure. District No. 3 has since been dissolved on June 28th, 2022, per resolution No. 82-22. Subsequently, the developers have since transferred the responsibilities of District 3 to Gold Hill North Business Improvement District (“BID”) per Ord. No. 21-62 in that the BID now encompasses the commercial development associated with the Gold Hill Mesa development and is responsible for financing and providing operational services to these commercial properties.
Pursuant to C.R.S Section 32-1-704(3)(b), a Metropolitan District may be dissolved by the District Court of El Paso County without the need for bringing the issue to an election if certain conditions are met. The District can be dissolved by the District Court without an election when the District lies wholly within the City, if the District has no financial obligations or outstanding bonds, and if the Board of Directors of the District and City Council consent to the dissolution. Per Exhibit A (refer to Exhibit A - Board of Directors Dissolution Resolution) the District has no outstanding debt or financial obligations. The District does not levy taxes or assessments and has no residents, service responsibilities, or remaining administrative functions that are not already performed by District No. 2. The District’s service plan does not indicate any special or deviating requirements for the District to be able to dissolve.
Based upon the District’s ability to meet the Statutory criteria for the dissolution, the District’s Board of Directors requests that City Council consent to the dissolution of the District by approving this resolution.
Previous Council Action:
City Council approved a preliminary consolidated service plan for the Gold Hill Mesa Metropolitan Districts 1 - 3 on September 14, 2004 (Resolution No.197-04) and an amendment to the consolidated service plan on July 11, 2006 (Resolution No. 99-06). City Council has also authorized an issuance of debt by District No. 2 in 2011, followed by an authorization for refinanced and additional debt by that district in 2022. City Council consented to the dissolution of District 3 on June 28th, 2022 (Resolution No. 82-22).
However, there have been no other Council actions directly pertaining to this particular metropolitan district.
Financial Implications:
N/A
Recommended Action
Proposed Motions:
Motion to approve a resolution of the City of Colorado Springs consenting to the administrative dissolution of the Gold Hill Mesa Metropolitan District No. 1.
Motion to deny a resolution of the City of Colorado Springs consenting to the administrative dissolution of the Gold Hill Mesa Metropolitan District No. 1.