Greeley Council approves 8 metro districts for Union Colony West Subdivision

GREELEY — Developers of the planned Union Colony West subdivision in west Greeley now have the approvals to cover the infrastructure costs that will allow them to bring 1,200 new residential units to town.

The Greeley City Council on Tuesday signed off on creating eight metropolitan districts to seek $62.8 million to cover the on- and off-site infrastructure costs of the 161-acre subdivision that is planned for 350 single-family homes, 850 multifamily units, and 12 acres (348,000 square feet) of commercial space.

The expected cost of the infrastructure within the subdivision — which is everything from bringing in water and sewer lines to curb and gutter to creating neighborhood parks and open space, is expected to be $54 million.

Residents and commercial owners will pay off the bonds over 30 years. The metro districts will be used in lieu of a homeowners association and will be in place for 40 years, which gives some wiggle room to refinance the original 30-year bonds. The bonds are paid off by homeowners, who will be assessed about 50 mills, but no more than 65 mills, on their annual property tax bill.

Developers have increasingly used metro districts to cover the costs of infrastructure buildout, which would otherwise be borne by the city.

“We have to remember, either the city pays for all the infrastructure, or the developer pays,” Councilmember Johnny Olsen said. “It’s not just about amenities. It’s about balancing the ability for the city to grow. … If you don’t want to live in a metro district, you can choose not to live in a metro district. It’s still free-market, it’s still free-choice, the infrastructure is in, we grow and things happen in Greeley.”

The council voted 5-1 to approve the districts, with council member Brett Payton abstaining and recusing himself from the conversation due to an apparent conflict of interest.

Each of the eight districts, which will be attached to the progressive phases of the project, will have their own board made up of those who live within that district. Once the entire project is built out, the districts will be combined into one, said Larry Buckendorf, a representative of the developer, Journey Homes.

Council members had multiple questions for Buckendorf to ensure that residents are adequately informed and know what they’re getting into before buying homes in the subdivision. Buckendorf explained that the developer has already covered the $11.9 million in costs to move power lines, and connect sewer lines to a further west subdivision, as well as dedicated specific park space in the subdivision to the city, much of which were part of the conditions of approval of the planned unit development.

The districts’ mill levy will tack on about $80 or so a month to a homeowner’s mortgage, depending on the home’s value, Buckendorf said. Without a metro district, he explained, the cost of each home would rise by up to $50,000, which would price many homebuyers out of the market.

“I want to be very clear. There is a tremendous misconception about metro districts,” Buckendorf told the council. “We’re the land-buyer, the entitlement entity, the development entity and homebuilding entity. With a comprehensive packet, eight pages of not just legalese attached to the purchase contract, and it spells out what a special district does.

“We give this to people and ask very clearly if they understand. We give them exactly what’s in the metro district, disclosures based on a $400,000 to $500,000 house, how much exactly the house will be and give a comprehensive disclosure they sign off on … so there is no debate when someone comes in and says I didn’t know there was a metro district.

“It’s a good tool; it’s not just money going into developers’ pockets,” Buckendorf said.

Council member Tommy Butler was the lone vote against the metro districts.

“I have been on the other side and not found a metro district I’ve supported yet,” Butler said. “I think that when we have a metro district, the amenities need to be substantial to justify them, and I don’t think this meets that.”

Some council members asked that the developer include amenities such as those in Water Valley in Windsor to make it a better class of neighborhood. Water Valley has interconnecting trails, a 27-hole golf course, restaurants, eight lakes and water features.

“Water Valley is beautiful and that’s what I want more of in Greeley – highly desired neighborhoods,” said council member Melissa McDonald. “Promontory doesn’t connect to Greeley at all, and those people spend their money (outside of Greeley).”