Weld County approves industrial district plan with 65-mill levy cap
The districts could issue up to $81 million in debt, but cannot borrow until county-approved development plans are in place. No development proposal has been submitted for the site.
Weld County commissioners approved a service plan for three proposed Rural Farm metropolitan districts at an industrial park planned north of County Road 2 and east of County Road 21. Together, the districts could levy up to 65 mills in property taxes for debt and operations.
The plan caps the debt levy at 50 mills and the combined debt and operations levy at 65 mills; operations have no separate cap. The debt levy may be imposed for no more than 40 years after it starts, regardless of bond refinancing, an attorney for the districts’ proponents said. The plan requires debt to be issued within 15 years of the first debt election and to mature within 30 years of issuance. Bonds would let property owners pay for improvements through property taxes over time instead of including those costs in the purchase price, the attorney said.
The next step would be a Nov. 3 election, the attorney said. District-court proceedings and recording with the Weld County Clerk and Recorder would follow; the attorney expected organizational documents to be recorded in December. Weld County has received no development proposal for the site, including a site plan review, Maxwell Nader of the county’s Department of Planning Services said. County approval of development plans would still be required before construction, and the districts could not issue debt until those plans were approved, the attorney said.
“Who has oversight?” a commissioner said, citing a residential district the commissioner had discussed previously. County counsel said the county’s oversight is limited after approval of a service plan because metro districts have their own boards and are governmental entities. The attorney said the districts must send annual reports on assessed valuation and bond issuance, and county code also requires their agendas. The county could seek an injunction if a district imposed a mill levy above the service plan’s cap, the attorney said.
The attorney estimated public improvements at about $60.3 million, including around $11.3 million in utility and street work on Weld County Road 21. The plan permits the three districts to issue up to $81 million in debt combined. The 409-acre development would be built in phases, with buildout expected to take approximately 11 years, the attorney said.