Title
A Resolution of the City of Colorado Springs approving a consolidated Service Plan for the Contrarian Airport Metropolitan Districts Nos. 1-6 located northwest of the intersection of Drennan Road and South Marksheffel Road.
Council District #4
Presenter:
Kevin Walker, Planning Director, City Planning Department
Body
Summary:
This service plan would allow the formation of the Contrarian Airport Metropolitan Districts Nos. 1-6 (“Districts”) to finance public improvements for the use and benefit of all anticipated inhabitants and taxpayers of the Districts as set forth in Exhibit E and to finance ongoing service operations and maintenance functions or services included in Exhibit F.
Background:
The proposed Districts would provide public improvements and operation and maintenance services for the service area as specified in Initial District Boundaries (Exhibit C-1) and Future Inclusion Area (Exhibit C-2). The Districts’ purpose is to plan, design, engineer, finance, and refinance costs associated with providing the public improvements and services necessary to support the project. The consolidated service plan for the six (6) districts will collectively undertake the financing and construction of public improvements and provide any necessary administrative functions and ongoing services as authorized by the service plan.
The service area of the Initial District Boundaries includes approximately 320 acres, and the total service area proposed to be included in the Future Inclusion Area boundaries is approximately 320 acres. Pursuant to the Special District Policy, all future district inclusions must be identified and presented with the initial petition and illustrated on the future district inclusions map to the service plan. The future district inclusions map included in this service plan does not incorporate any additional areas relative to the Initial District Boundaries Map. The Districts shall not include any property outside the service area without the prior written consent of the City Council.
The Districts are anticipated to be developed with residential, commercial, and industrial land uses. The Petitioner is providing 1,998 residential units and is anticipating approximately 4,995 future residents based upon the U.S. average household size of 2.5 persons per unit. The total non-residential development is anticipated to be approximately 1,598,993 square feet.
The combined maximum debt authorization for the Districts is proposed to be $400,000,000, based on $245,024,000 in estimated public improvements costs. Exhibit D of the service plan provides a summary of public improvements addressing anticipated categorical amount(s) and timing of issuance of debt through the life of the Districts. This Financial Plan is based on projected development revenues as limited by the service plan through the maximum debt mill levy and the maximum operations and maintenance mill levy. Further, this plan outlines how the District came to the proposed maximum debt authorization for the Districts and why that amount is appropriate based on the anticipated scope of work. Staff has been informed that the grading required for the District lead site improvements will be more challenging than the average property, thus adding considerable costs to the Financial Plan. The cost of grading shall only be considered for roadway infrastructure and other district facilities and shall not be figured for the grading of private lots.
The maximum debt mill levy for any district or combination of districts (commercial and residential) shall be limited to no more than 50 mills, which is consistent with the City’s Model Service Plan. The maximum operations and maintenance mill levies will be 20.0 mill for residential districts and 10.0 mill for commercial districts. The Model Service Plan limit is 20 mills. The purpose of differentiating between the residential and commercial operations and maintenance mill levy amounts is to be able to market commercial properties on a competitive basis. The Districts’ are set to the maximum mill levies described here but can impose lower mill levies if desired.
Exhibit E of the service plan authorizes the Districts to perform ongoing operations and maintenance functions related to landscaping, stormwater and detention facilities, monumentation, park and recreational facilities, streetscaping, sidewalks, covenant enforcement and design review, public art, mosquito control, and/or improvements of property owned by the Districts.
The Financial Plan (Exhibit D) and the Description of Permitted Services (Exhibit E) are generally informed by the proposed Zoning Map Amendment and Land Use Plan applications presently in review with the Land Use Review Division. The Zone Map Amendment (ZONE-25-0024) and the Land Use Plan (LUPL-25-0011) have not yet solidified the development programming and the amount of acres dedicated to each land use. The applicant is preliminarily requesting a maximum density of sixty (60) units per acre with a maximum unit count of two thousand (2,000) and a maximum of 2.5 million square feet in non-residential uses (civic, commercial, industrial). These applications are early in their administrative review and the requested entitlements are subject to change. These applications shall be presented to Council for a final decision at a later date.
Additionally, the proposed service plan adds language allowing for the Districts to create Special Improvement Districts (“SID”). This added language is not present in the City’s model service plan, but Special Improvement Districts are regulated pursuant to Section 32-1-1101.7, C.R.S. The purpose of the SID as stated by the Petitioner is to allow, “the Districts’ ability to finance the extensive public improvements needed for the Project in a manner that is most efficient and that reduces the costs to future homeowners and property owners.” To better understand how the SID could impact future landowners within the Districts, Staff inquired about who would be responsible for the costs encumbered by the SID. The Petitioner has committed to require any SID assessments imposed on a property would be paid off prior to transfer to an end user. This commitment would ensure that the end-users and future landowners would not be subject to both the standard Debt and Operation and Maintenance mill levies, and any fees imposed as a result of the SID.
Colorado Revised Statutes include four criteria for which an 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 nine 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 can provide 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.
• Adequate service is not, and will not be, available to the area through the City or County or other existing municipal or quasi-municipal corporations, including existing special districts, within a reasonable time and on a comparable basis.
• The facility and service standards of the Districts are compatible with the facility and service standards of the City within which the special district is to be located and each municipality which is an interested party under Section 32-1-204(1), C.R.S.
• The proposal is in substantial compliance with the Comprehensive Plan adopted pursuant to the City Code.
• The proposal is in compliance with any duly adopted City, regional or State long-range water quality management plan for the area.
• The creation of the Districts is in the best interests of the area proposed to be served.
Financial Implications:
There are no direct implications to general City taxpayers and ratepayers outside of the boundaries of these applicable metropolitan districts.
Board/Commission Recommendations:
N/A
Stakeholder Process:
The staff-level Special District Committee has been provided with access to these materials associated with this request. As of the date of this staff report, there have been no comments or questions from the Committee on this request.
Previous Council Action:
N/A
Alternatives:
City Council has the options at the formal meeting of approving or denying this service plan. City Council could also continue the item with specific directions provided to staff and the petitioners.
Recommended Action
Proposed Motion:
Move to adopt a Resolution of the City of Colorado Springs approving a new consolidated service plan for the Contrarian Airport Metropolitan Districts 1 - 6 located northwest of the intersection of Drennan Road and South Marksheffel Road.