Title
A Resolution of the City of Colorado Springs approving a Service Plan for the Ovation Metropolitan District serving an area consisting of 60.28 acres generally located south of the intersection of Powers and Interquest Boulevard, east of Kettle Creek, and north of Old Ranch Road.
Presenter:
Allison Stocker AICP, Planner II, Planning and Community Development Department
Kevin Walker, Interim Planning and Community Development Director
Body
Summary:
This service plan would allow formation of the Ovation Metropolitan District (District) for the purpose of providing public improvement financing and ongoing services for the proposed the Ovation development in the northeast part of Colorado Springs.
The Ovation District will consist of one district and will contain all of the proposed residential phases of this project. The District is initially proposed to contain one property that consists of approximately 400 square foot and is located in City Council District No. 2. The total area proposed to be included in the Future Inclusion Area Boundaries is approximately 60.28 acres (less the Initial District Boundaries).
This service plan utilizes the Special District Policy and model service plan which among other provisions, allow for higher residential mill levies and provide an opportunity to present a financial plan to support issuance of future debt without needing to come back to City Council for subsequent approval.
There are no requested exceptions.
Background:
The District would initially encompass 400 square feet within the project. There is a proposed future inclusion area of 60.28 acres. A total of 290 dwelling units are being planned with this Service Plan. There is no non-residential development being contemplated for this project. The site was rezoned from PK (Public Parks) to R-Flex Low on February 27th, 2024 per Ordinance 24-03. This zone change was accompanied by a land use plan which requested a maximum residential density of six (6) dwelling units per acre.
Consistent with the current Special District Policy, this service plan allow for debt service mill levies of up to 50.0 mills for both residential and commercial districts. This residential district will be authorized to certify an operations and maintenance levy up to 20 mills.
The Ovation service plan proposes a total maximum of $24,500,000 million in debt pre-authorization. The estimated public improvements costs are on the order of $18,900,000 million. The remaining $5,600,000 million are set aside for the costs associated with issuance and financing. 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 two bond issuances in 2025 and 2035 of up to $24,500,000 million, with an available “project fund” of about $19 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.
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.
This proposal was taken to Budget Committee on July 23rd, 2024 and City Council Work Session on August 12th, 2024. During both presentations of the proposed Metro District, there were no comments or concerns regarding the proposal.
This item was approved by City Council on August 27th, 2024 on the Consent Calendar. The proposed ordinance was revised to rescind this past approval as the Applicant had not met their external noticing requirements prior to the hearing date.
The resolution has since been updated to add conditions to the proposed resolution in order to restrict the Ovation Metropolitan District from being created prior to acquisition from the City by the Developer. As of right now, the City owns the property, and the Developer does not have adequate standing to create the District in District Court. This condition only permits the Developer to formally create the District once the change of ownership occurs.
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 has been no prior action by City Council aside from the approval granted in error on August 27th, 2024. The proposed resolution would be a correction of that approval.
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 Motions:
Adopt a Resolution of the City of Colorado Springs approving a Service Plan for the Ovation Metropolitan District serving an area generally located south of the intersection of Powers and Interquest Boulevard, west of Powers Boulevard, north of Old Ranch Road, and east of Kettle Creek.
Adopt a Resolution of the City of Colorado Springs denying a Service Plan for the Ovation Metropolitan District serving an area generally located south of the intersection of Powers and Interquest Boulevard, west of Powers Boulevard, north of Old Ranch Road, and east of Kettle Creek.