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Department of Community Development
Reference: Metro District Model Service Plan
To: Mayor Richard N. McLean and Members of City Council
Through: Clint Blackhurst, Acting City Manager
Prepared By: Mike Tylka, Associate City Planner
Date Prepared: April 4, 2017
PURPOSE
The purpose of this Study Session item is to review the City's current Metro District Service Plan Guidelines and Policies and consider a proposal to adopt a Model Service Plan for Metropolitan Districts to be used as a 'template' when the City receives applications for the formation of new districts.
BACKGROUND
Metro Districts, also known as Special Districts, are a common tool used by developers to fund infrastructure improvements in new mid-size to large developments. These districts can issue bonds to fund the costs associated with the improvements and, in turn, levy mills on the property within the district boundaries to recover those costs. District formation is sought by developers as a way to "make the numbers work".
In order for the Metro District to be formed, the organizers must submit a Service Plan to the City for review and eventual approval by the City Council. Districts are at first governed by the developer, as the property owner, and then by the individual property owners within district boundaries as development occurs. The formation and requirements for a Special District are governed by the Special District Act in the State statutes which also mandates that certain items are included in the Service Plan. No district can form within the City limits until a Service Plan has been approved by City Council.
More than ten years ago, when the City was receiving a number of requests for the formation of Metro Districts, the City of Brighton adopted certain Policy Guidelines to be used in reviewing proposed Service Plans. Each proposed Service Plan was reviewed on a case by case basis. As Metro Districts began to proliferate, the trend was to develop a 'model service pla...
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