Department of Community Development
Reference: Brighton Ridge Metropolitan District Nos. 1 and 2 Service Plans & IGAs
To: Mayor Gregory Mills and Members of City Council
Through: Jane Bais DiSessa, City Manager
Marv Falconburg, AICP, Deputy City Manager
Holly Prather, AICP, Community Development Director
Prepared By: Mike Tylka, AICP, Senior Planner
Date Prepared: August 24, 2021
PURPOSE
Pursuant to Article 1, Title 32, Colorado Revised Statutes, as amended (the “Special District Act”), 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 two proposals for service plans for new metropolitan districts known as the Brighton Ridge Metropolitan District No. 1 (“District No. 1”) and the Brighton Ridge Metropolitan District No. 2 (“District No. 2” and together, the “Districts”) with each covering a portion of the greater proposed Brighton Ridge development.
STRATEGIC FOCUS AREAS
• Recognizable and Well-Planned Community
• Financially Responsible
• Supportive, Sustainable Infrastructure
• Strong Regional Relationships and Partnerships
BACKGROUND
The formal applicant and organizer for both Districts is Walk Off, LLC (the “Applicant”), and their team is comprised of legal counsel from White Bear Ankele Tanka & Waldron and the engineering firm of Redland. The Applicant’s Financial Plans were prepared by Piper Sandler and their bond counsel is the firm of Kutak Rock, LLP.
The proposed District No. 1 will encompass approximately 83.145 acres generally located at the southwest and southeast corners of the intersection of Potomac Street and E. 120th Avenue (the “District No. 1 Property”). The Applicant is proposing mixed-use commercial and multi-family residential development of varying densities, and these uses are in line, where proposed, with the Comprehensive Plan’s future land use designations for the District No. 1 Property of Mixed-Use Commercial and Natural Resource Conservation. The District No. 1 Property is currently zoned as part of the Fuller Estates East Planned Unit Development as mixed-use, but is currently part of an in-process Zoning Map Amendment application that is planned to come before City Council in the near future for their consideration and ultimate decision.
The proposed District No. 2 will encompass approximately 62.777 acres in two areas with one generally located to the northeast of Interstate Highway 76 and to the south of the current southern terminus of Southgate Boulevard and the other between Southgate Boulevard and Potomac Street and north of School District 27J’s Bus Parking Facility (the “District No. 2 Property”). The Applicant is proposing lower density residential uses, and this is in line with the Comprehensive Plan’s future land use designations for the District No. 2 Property of Low Density Residential and Mixed-Use Commercial when put into context with the proposed overall development plans for the Brighton Ridge development. The lower portion of the District No. 2 Property is zoned as part of the Fuller Estates Central Planned Unit Development as Single-Family Residential Use. The upper portion is zoned as mixed-use via the Fuller Estates East Planned Unit Development, but is also currently part of an in-process Zoning Map Amendment application.
The Applicant is seeking the formation of the Districts to assist in the funding of necessary public improvements to serve the properties such as those pertaining to roadways, parks, and storm sewer.
The submissions use the amended Model Service Plan, adopted by the City Council on August 17, 2021, as their template, and the Applicant is not asking for any deviations from it.
Approval by the City Council is the first step of several that new districts organized within the City limits of Brighton must complete before becoming a legal entity, but this current step is the City’s only review prior to formation. The City Council will only see the service plans again if there is a proposal for a substantive amendment or as outlined under any special conditions in the service plan or accompanying intergovernmental agreement.
STATUTORILY REQUIRED CONTENTS OF A SERVICE PLAN
Per the Special District Act, service plans must include the following items:
• Description of the proposed services,
• Financial plan showing how the proposed services are to be financed,
• 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, initial proposed indebtedness and estimated proposed maximum interest rates and discounts, and other major 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).
CRITERIA BY WHICH COUNCIL MUST CONSIDER THE ITEM
Pursuant to the Special District Act, the City Council must make a finding that evidence satisfactory to the City Council of each of the following has been presented in order to approve the service plans:
• There is sufficient existing and projected need for organized service in the area to be serviced by the proposed special district.
• The existing service in the area to be served by the proposed district is inadequate for preset and projected needs.
• The proposed special district is capable of providing economical and sufficient service to the area within its proposed boundaries.
• The area to be included in the proposed special district has, or will have, the financial ability to discharge the proposed indebtedness on a reasonable basis.
PUBLIC NOTICE AND INQUIRY
Notices of the August 17, 2021 public hearings were published in the July 21, 2021 edition of the Brighton Standard Blade by the Applicant as required by the Special District Act. At the August 17, 2021 meeting of the City Council, the public hearings were opened and continued by Council action to a date certain of September 7, 2021 at the request of City staff and the Applicant. As of the date of this report, City staff has not received any public comment on the matters.
STAFF ANALYSIS / SUMMARY OF FINDINGS
City staff has reviewed the service plans along with Butler Snow, LLP and Ehlers & Associates, Inc. Butler Snow offers specialization in the legal requirements of metro district formation and Ehlers offers experience in metro district financial review.
The submitted service plans address all items required by State Statute to be included in service plans, and both align with the Model Service Plan adopted by City Council. Specifically mill levy caps, audit, reporting, meeting location, and notification requirements are outlined according to the Model Service Plan.
The daytime “population” at build-out for District No. 1 is estimated by the Applicant to be approximately 1,660 people and for District No. 2 to be approximately 500 people.
The Service Plans and the accompanying Exhibits outline that District No. 1 will need to spend approximately $17.435 million and District No. 2 will need approximately $9.583 million for the installation of public infrastructure. The maximum total aggregate principal amount of debt that may be issued or incurred by the applicable district shall not exceed $ 29.200 million for District No. 1 and for $12.800 million District No. 2.
The City’s Development Review Committee has reviewed the infrastructure cost estimates and finds them acceptable. See Exhibit E of the Service Plan for further detail. The City’s Finance Department Director and the City’s consultants for districts have reviewed all documents submitted as part of the application as well.
The Applicant has followed the Model Service Plan’s use of additional notification to new or potential property owners within the boundaries of the subject District relating to district taxes. At the time of the subject District’s organization, 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 maximum mill levy that can be levied on a property with an estimated value for review.
City staff finds that in the areas of the proposed Districts there are sufficient existing and projected needs for organized service, the existing services are inadequate for present and projected needs, the proposed Districts are capable of providing economical and sufficient services, and they have the financial ability to discharge the proposed indebtedness on a reasonable basis.
STAFF RECOMMENDATION
City Staff is recommending adoption of the resolutions approving the service plans for the Brighton Ridge Metropolitan District Nos. 1 and 2 and the accompanying intergovernmental agreements as it believes that the proposed service plans meet the requirements of Title 32-1-202(2) C.R.S.
OPTIONS FOR COUNCIL CONSIDERATION
The City Council has the following four (4) options before it for each district, to:
• Approve the Service Plan submitted, without condition or modification;
• Conditionally approve the service plan subject to the submission of additional information relating to, or the modification of, the proposed service plan or by agreement with the proponents;
• Disapprove the service plan as drafted with findings to justify the denial; or
• Continue the item to a later, specified date.
ATTACHMENTS
• City Council Resolution
• Service Plan with Exhibits (includes IGA)
• Proof of Newspaper Publication
• Draft City Staff Presentation