Title
A Resolution of the City of Colorado Springs approving a Service Plan for the Waterview North Metropolitan District Nos. 1 and 2 serving an area west of Powers Boulevard and north of Bradley Road
Presenter:
Mike Tassi, Assistant Director- Planning & Neighborhood Services Department
Peter Wysocki, Director, Planning & Neighborhood Services Department
.dy
Summary:
This consolidated service plan would allow formation of the Waterview North Metropolitan Districts Nos. 1 and 2 (Districts) for the purpose of providing public improvement financing and ongoing services for the proposed Waterview North development in the northern part of Colorado Springs.
There would be a total of two districts, one for the residential phases of this project and the other for the commercial areas.
This approximately 117 acre property is located in City Council District No. 4.
There are no requested exceptions from the model service plan, although it is noted that until and unless this currently unincorporated property becomes fully included in City limits, City Council will not have the authority to take action on this service plan. A clause in the resolution conditions approval of this service plan upon annexation and zoning of the subject property.
Background:
In this multiple district structure, Districts Nos. 1 and 2 (the “Districts”), are planned to have a variety of non-residential use and residential uses associated with the this proposed approximately 117-acre project. District No. 1 would encompass the residential property within the project, with District No. 2 encompassing the commercial areas. There are no proposed future inclusion areas. A total of about 1,151 dwelling units (primarily apartments and townhomes) and 320,000 square feet of commercial uses, are contemplated for this project. However, these development entitlements are not yet in place as of the writing of this cover memo because the project is in the process of annexation review and consideration, potentially occurring on the same agenda as this request. Formal Council action on this resolution cannot occur until and unless all of the subject property is annexed.
Consistent with the Special District Policy, this service plan allow for debt service mill levies of up to 50.0 mills for both the residential and commercial districts. The residential district will be authorized to certify an operations and maintenance levy up to 20 mills, with a maximum of 10 mills for the commercial district.
The two districts that are part of this service plan are intended to share a total maximum of $42 million in debt pre-authorization. The estimated public improvements costs are on the order of $20M. These estimates are supported by detailed calculations for a variety of public improvements included in Exhibit D.
Exhibit D also includes a financial plan which contemplates a single 2023 bond issuance of up to $40 million, with an available “project fund” of about $30 Million. Essentially, this figure “over-projects” funding anticipated to be necessary at this time. The actual amount of a bond issue would need to be consistent with funding needs at the time of issuance. The applicants note that one potential option in the event of a smaller bond issue, would be to certify debt service mill levies that are lower than the allowable maximums.
In their submittal letter the petitioner has addressed the four criteria in Colorado Revised Statutes for which City Council is required to make an affirmative finding.
The City Council Budget Committee considered this item at their January 10, 2023, meeting.
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 the materials associated with this request. No comments or concerns have been received as of the writing of this cover memo.
Previous Council Action:
There have been no prior City Council actions related to special districts for this property as it is not currently included within City limits. An annexation request is pending along with associated development applications.
Alternatives:
City Council has the options of approving or denying this service plan. Council could also continue the item with specific direction provided to staff and the petitioners.
Recommended Action
Proposed Motion:
Adopt a Resolution of the City of Colorado Springs approving a Service Plan for the Waterview North Metropolitan District Nos. 1 and 2 serving an area west of Powers Boulevard and north of Bradley Road