Title
Authorization for Allison Valley Metropolitan District No. 2 to Issue up to $13,500,000 in Debt as a Limited Tax General Obligation Loans
(Legislative Matter)
Body
From:
Carl Schueler, Comprehensive Planning Manager, Planning and Development Department
Summary:
This is a request to approve issuance of formal debt in an aggregate amount of up to $13,500,000 by the Allison Valley Metropolitan District No. 2 ("District") in the form of bank loans. The City's Special District Policy and the District's approved service plan require that City Council's approval be obtained prior to issuing any debt. This request was introduced at the July 27, 2015 Informal City Council meeting.
Approval of this debt issuance will require a 2/3rds majority of the entire City Council (at least six affirmative votes) pursuant to City Charter Article 7-100.
Previous Council Action:
The District was established by election in November 2006, following approval by Council of a service plan earlier that year (Resolution No.129 -06). Council approved a land use Master Plan amendment for this area in 2014. Action to approve an amendment of the District's service plan is anticipated as part of the immediately prior agenda item.
Background:
Metropolitan districts are created under Colorado Statute and City Policy to finance and/or maintain certain public improvements in commercial and residential areas, primarily utilizing a property tax mill levy as the revenue source. These districts are a separate legal entity from the City, but their service plans and the City's Special District Policy require City Council approval of all formal debt. The standard of review of the debt instruments is consistency with the service plan and all applicable laws.
The proposed debt instruments will be commercial loan agreements, used to reimburse the developer for advances already made to the District. These consist of a 2015A Limited Tax Obligation Note in a...
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