The Crested Butte News Serving the Gunnison Valley since 1999
Includes recently approved Upper Prospect development
[ By Kendra Walker ]After two-and-a-half hours of public hearing and discussion at the August 19 town council meeting, the Mt. Crested Butte town council in a split vote approved the service plans and the associated intergovernmental agreements for three new proposed metropolitan districts in the recently approved Upper Prospect subdivision and undeveloped Prospect properties near the CBMR Umbrella Bar.
“Metropolitan districts are commonly formed by developer/property owners to provide the funding for and administration of public improvements needed to serve their development,” explained town attorney Gerald Dahl in a memo to the council. “Metropolitan districts have the significant authority to issue bonds and impose property taxes to service those bonds, thereby making capital available to the developer as the project moves forward.”
It is the town’s role to agree to a service plan for each district, which details the physical area of the district, how that area might be expanded, the public services and improvements to be funded by the district and the amount and nature of the bonds and property taxes imposed to service those bonds.
Representatives of the applicant explained that the proposed districts Nos. 3, 4 and 5 cover 178 acres and would serve approximately 820 people at full build out. The town recently approved the final planned unit development (PUD) plan for the area covering the proposed district No. 3 (Upper Prospect), which will create 52 single-family lots. Plans for development on the area covering Nos. 4 and 5 have not yet been brought to the town.
The existing (built) Upper Prospect development is presently served by two metropolitan districts (Nos. 1 and 2). Applicant attorney MaryAnn McGeady explained that no property in District No. 1 can be developed and no property tax can be imposed, so it would not be impacted by the new proposed districts. “We believe it will have a positive impact on No. 2,” she further explained. “Since the Proposed Districts’ inclusion area overlaps with District No. 2, District No. 2 will see an increase in real property tax revenue payable to it from property within its boundaries.” Additionally, District No. 2 is not obligated to payments issued by new bonds associated with the property on Nos. 3, 4 and 5.
The town council was concerned about the order of the process in forming the special districts before any development in Nos. 4 and 5 had been approved by the town.
“Why are we being asked to approve a service plan for areas that have not been developed?” asked mayor Nicholas Kempin.
“I have a hard time with deciding what you’re going to do before you know what you’re building on it,” said council member Roman Kolodziej.
“These decisions have zero burden on a future land use decision,” assured applicant attorney Aaron Huckstep. “But if there’s going to be development out there, we need ability to have those districts in place and synergy there.”
“The district is not going to build what you haven’t approved, and it won’t incur debt on what you haven’t approved,” added McGeady.
“My concern is we don’t know what will happen with 4 and 5,” said council member Bruce Nation. “I’d rather that just be flexible so nothing weird is happening that’s out of our control.”
With that mindset, Nation made individual motions to approve each of the three district service plans, with the condition that there should be no inclusion of any property within the boundary of the district until such property has either 1. received a single development approval under the town code or 2. The proposed inclusion is approved by the council as a major alteration of the service plan.
Kolodziej and Kempin only favored approving district No. 3, being the only property with town-approved development plans, and voted against approving the service plans for Nos. 4 and 5. However, the votes passed 3-2 for all three districts. Council members Valeda Scribner and Bobbie Sferra were not at the meeting.
The next step is for the applicants to file District Court proceedings for the formation of the districts in this upcoming November election.
