Title
A resolution of the City of Colorado Springs consenting to the dissolution of the Evergreen Ridge Metropolitan District.
Related Files: N/A
Located in Council District 3
Presenter:
Allison Stocker, Senior Planner, City Planning Department
Kevin Walker, Planning Director, City Planning Department
Body
Summary:
The Evergreen Ridge Metropolitan District (“the District”) was approved for formation by the City on September 26, 2023, and was formally organized pursuant to an Order and Decree of the El Paso County District Court on February 4, 2024. The District is located southwest of the Evergreen Cemetery along South 26th Street and Wheeler Avenue and encompasses approximately twenty (20) acres. The site is currently in construction and has an approved Development Plan (see Attachment 4 - Approved Development Plan) for 138 townhome units. Due to steep slopes along South 26th Street, approximately ten (10) acres will be held as preservation area. The District has never held any financial obligations, does not own any assets, and is not responsible for maintaining any public improvements as the site’s Developer has taken over obligations previously planned to be accomplished by the District. Since the Developer has taken over these obligations, and the District no longer has a function, 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 Evergreen Ridge Metropolitan District was created in 2022 under the City’s Model Service Plan and Policies. The District was approved to collect a maximum debt mill levy of 50 mills and a maximum operations and maintenance mill levy of 20 mills which is consistent with the City’s Model Service Plan. At the time-of-service plan adoption, the public improvements shown in the associated development plan were estimated to cost just over five (5) million dollars and the District elected to cap their maximum debt issuance at $7.5 million dollars. In 2026, the landowner and developer was the sole property owner. No debt mill levy has been certified as the District has not issued debt, and the operations and maintenance mill levy that was certified in 2026 will be used toward costs associated with dissolving the District.
Per Exhibit E of the Service Plan, the District has a list of permitted services to be provided by the District that includes the authority to construct some or all the public improvements such as installation of utilities, earthwork, park improvements, etc. With all planned improvements now being completed by the Developer and the common areas within the residential community being under the ownership of the LGI Homes - Colorado LLC, the District no longer has obligations and responsibilities as the Developer has taken over its construction obligations and the Homeowners Association is set to handle any long-term maintenance.
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 Attachment 1 (refer to Attachment 1- Board’s Dissolution Resolution) the District has never held any debt or maintained any financial obligations. The applicant intends to provide a Certified Financial Statement, and that will be provided to Council when it becomes available (refer to Exhibit B - Financial Certification). 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:
No additional City Council actions have been taken since the creation of the District in 2023.
Financial Implications:
N/A
Recommended Action
Proposed Motions:
Should the City Council wish to approve the request to dissolve the Evergreen Ridge Metropolitan District application, the following motion is suggested:
Approve a resolution of the City of Colorado Springs consenting to the dissolution of the Evergreen Ridge Metropolitan District.
Should the City Council wish to deny the request to dissolve the Evergreen Ridge Metropolitan District application, the following motion is suggested.
Deny a resolution of the City of Colorado Springs consenting to the dissolution of the Evergreen Ridge Metropolitan District.