Department of Community Development
Reference: Kestrel Metropolitan District & Service Plan
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Summer McCann, AICP, Senior Planner
Date Prepared: July 24, 2025
PURPOSE
Pursuant to Article 1, Title 32, Colorado Revised Statutes, as amended, the City of Brighton has the authority to approve service plans for special districts (also known as metropolitan or simply metro districts) that are organized within the City’s boundaries. City Council now has before it a proposal for a service plan (the “Service Plan”) for a new metropolitan district proposed to be known as the Kestrel Metropolitan District (the “District”). The proposed District intends to include the property known as the Kestrel Subdivision, generally located to the north of East 120th Avenue, south of East 124th Avenue, east of Peoria Street and west of Prairie View High School (the “Property”).
Service Plans are accompanied by an Intergovernmental Agreement (“IGA”) that outlines additional details and requirements. These items are typically beyond what is required per state statue and are deemed necessary by the City and/or the District in connection with the development of the project and the financing of public improvements.
BACKGROUND
The applicant and District’s organizer is Boulder Creek 120th & Peoria, LLC (the “Applicant”), and their team is additionally comprised of legal counsel from White Bear Ankele Tanaka & Waldron, and land use and engineering professionals from JR Engineering. The Applicant’s Financial Plan was formed by Piper Sandler & Co. City staff has reviewed the proposal in conjunction with Butler Snow LLP, the City’s outside counsel for Metropolitan Districts, and Hilltop Securities Inc., the City’s outside reviewer for financial service plans.
The proposed District will encompass 25.833 acres of land. The Property was most recently zoned Kestrel Planned Development and has been preliminarily platted under the Kestrel Subdivision Plan. The plat and zoning reflect a residential neighborhood with a system of trails, parks, and open spaces.
The Applicant is seeking the formation of the District to assist in the funding of improvements to serve the Property, such as roadway and access improvements, extension of water and sewer services, the modification of stormwater and drainage facilities and the construction of parks, open spaces, and landscaped areas.
Approval by the City Council is the first of several steps that new districts organized within the City limits of Brighton must complete before becoming a legal entity. However, this current step is the City’s only review prior to the formation of the District. The City Council will only see the Service Plan again if there is a proposal for a substantive amendment or as outlined under any special conditions in the Service Plan or accompanying IGA.
The City provides a template for metropolitan district service plans that the City may review, approve and/or amend (the “Model Service Plan”). The Model Service Plan includes a cap on mill levies, the requirement to have and hold the District meetings in Brighton, an annual audit and recordation of notification, full build-out of minor and major arterials within district boundaries and memorialization of the notices that detail inclusions boundaries and estimated property taxes. The submitted Service Plan uses the adopted Model Service Plan as a template and contains all of the required items.
CRITERIA BY WHICH COUNCIL MUST CONSIDER THE ITEM
Per the Special District Act, Article 1, Title 32 of the Colorado Revised Statutes, service plans must include the following items:
● Description of services,
● Financial information,
● Preliminary engineering or architectural survey showing how the services, are to be provided,
● Map of boundaries,
● Estimated population at build-out,
● Estimated assessed valuation at build-out,
● General description of facilities to be constructed,
● Estimated costs of land acquisition, engineering, legal and administrative costs, and costs related to the organization and initial operation of the district,
● Description and form of any proposed Intergovernmental Agreements (IGAs), and
● Other information set by State Statutes or required by the approving jurisdiction(s).
STAFF ANALYSIS / SUMMARY OF FINDINGS
City staff has reviewed the Service Plan and IGA along with Butler Snow, LLP and Hilltop Securities, Inc. Butler Snow offers specialization in metro district formation and Hilltop offers experience in metro district financial review.
Service Plan:
The submitted Service Plan addresses all items required by state statute to be included in service plans. Additionally, mill levy caps, audit, reporting, meeting location, and notification requirements are outlined according to the Model Service Plan.
As discussed at the May 13, 2025 study session, the Service Plan includes an updated definition of Mill Levy Adjustment. Due to new State legislation concerning residential assessment rates, and the expectation of future legislation impacting residential assessment rates, City staff felt it was necessary to update the beforementioned definition. City Council agreed with the proposed direction from City staff and their consultants and as such, this Service Plan is proposed with the updated definition. A link to a video recording of the May 13, 2025 study session can be found later in this memo.
With 174 lots, the population at build-out is estimated by the Applicant to be approximately 500 people. Note: There are no commercial units proposed to be developed within the District boundaries.
The Financial Plan (Exhibit D) to the Service Plan outlines that the District will need to spend approximately $9,508,679 for the installation of infrastructure and will need the borrowing authority of $13 million. The maximum debt authorization in the aggregate principal amount will equal $13 million.
Included in the improvements to the Property and the surrounding area are widening of existing streets including East 120th Avenue and Peoria Street, as well as new neighborhood connector public streets internal to the site. In addition to roadways, there will be improvements to water, sewer, and drainage infrastructure, parks, open space and trail improvements, all of which are internal or adjacent to the Subdivision.
The City’s consultants have reviewed the infrastructure cost estimates and finds them acceptable. See Exhibit E of the Service Plan for further detail. The DRC is satisfied with the ability of the infrastructure items to be constructed to serve the Property and the maintenance responsibilities as outlined. As mentioned, the City’s consultants for metropolitan districts have reviewed all documents submitted as part of the application as well.
At the time of the District’s organization, and as the mill levies are amended, the additional notice (Exhibit A of the IGA) will be recorded and included in the title work of the property. The additional notice will provide a summary of the taxes levied on a property with an estimated value for review by new property owners.
City staff finds that in the area of the proposed District there is sufficient existing and projected need for organized service, the existing service is inadequate for present and projected needs, the proposed District is capable of providing economical and sufficient service, and it has the financial ability to discharge the proposed indebtedness on a reasonable basis.
Intergovernmental Agreement:
The IGA outlines a variety of covenants, none of which are out of the ordinary for an intergovernmental agreement. The covenants include, but are not limited to, the maintenance and construction of certain public improvements, notice to property owners, enforcement of and amendments to the IGA, and successors and assigns. One provision of a more specific nature discusses the allowance of Special Assessments to establish one or more Special Improvement Districts in order to finance public improvements. The imposition of a Special Assessment and lien against each individual residential lot shall be paid in full prior to transfer of such lot to a homeowner.
PUBLIC NOTICE AND INQUIRY
Notice of the public hearing was published in the August 7, 2025, edition of The Brighton Standard Blade by the Applicant as directed by state statute for Metro District Service Plans. As of the date of this report, City staff has not received any public comment on the matter. Though not required, notice of the hearing was posted on the City website on August 12, 2025.
STAFF ANALYSIS
City staff and the city’s outside reviewers reviewed the Financial Service Plan for the proposed Kestrel Metropolitan District and found that it meets the requirements of Title 32-1-202(2) C.R.S. and the City’s Model Service Plan.
A draft resolution that approves the Service Plan and IGA has been included in the agenda packet for the City Council’s consideration.
ADDITIONAL MATERIALS
To review additional materials regarding metropolitan districts, please visit the city’s website and view the following City Council agenda materials and videos.
• City’s Website
o www.brightonco.gov/1063/Metropolitan-Districts <http://www.brightonco.gov/1063/Metropolitan-Districts>
• May 13th Study Session
o <https://brightonco.granicus.com/ViewPublisher.php?view_id=2>
OPTIONS FOR COUNCIL CONSIDERATION
The City Council has the following four (4) options before it, to:
● Approve the Resolution as drafted;
● Approve the Resolution with modifications;
● Deny the Resolution as drafted with findings to justify the denial; or
● Continue the item to a later, specified date.
ATTACHMENTS
● Draft City Council Resolution
● Service Plan with Exhibits (includes IGA)
● Proof of Newspaper Publication
● Website Notice
● Draft City Staff Presentation