Gary Greaser, a Solterra resident sent this letter to Lakewood City Council:
Lakewood Planning,
While I am not submitting specific questions now for tomorrows “Development Dialogue” meeting, I am requesting your team consider the below actions for current and future Metro Districts. As a resident of Solterra (Fossil Ridge Metro District) since December 2010, I truly understand what can occur when a City (Lakewood) does not monitor and have solid checks and balances for developers. In our case, Brookfield! I have lived the abuse by Brookfield and lack of oversight from Lakewood and Jefferson County, so I believe it a priority for your team to consider the below.
I personally would request Lakewood not allow Metro Districts, but if that is too much to expect, the actions below have to be considered.
Metro District Focus
- Provide true disclosure on potential Infrastructure costs and furnish as part of potential buyer document package. Telling a buyer to find out on their own via the purchase agreement is deceptive and does not allow discovery of the real obligation.
- Solterra document projected $35M, the FRMD Service Plan projected up to $91M
- Provide thirty-year projected bond obligation amount (Principal and Interest) as defined in the Service Plan.
- Provide annual property tax obligation for average home cost based on Service Plan for bond debt and homes to be built each year
- Executive Summary on Service Plan to understand financial obligation for public and regional improvements as well as the complexity to maintain a Metro District
- Do not allow Developers to opt out of Tabor, residents must have the right to vote on bond debt
- Assure allocation reimbursement for all regional improvements. The FRMD Service Plan states $29M in regional improvements with $18.7M reimbursement, not a dollar has been received.
- No future regional improvements without resident vote
- Use of single Metro Districts to subsidize regional improvements for a City / County is unfair tax burden to residents that live in the MD, cost should be allocated to residents in entire City / County that benefited from the improvement.
- Alameda Parkway expansion serves multiple Lakewood communities, Solterra residents are less than 15% of the vehicles that leverage Alameda, but 100% of the cost for expansion was allocated to Solterra.
- Developers must not have free reign; municipalities must incorporate a check and balance.
- Independent construction and financial audits should be required
- Insight for board elections must be communicated to potential buyers prior to signed purchase agreement and must continue to the community for each election cycle through email communication and/or direct mail.
- Cancel of any board election must have more safeguards to validate effort was initiated to assure resident opportunity
- Modify CRS 32-1-103 to limit developer ability to qualify as the only board members, there must be resident and/or other oversite to protect future owners.
- Limit or eliminate ability for developer to conveniently contract to purchase taxable property to qualified as board member candidate when there is no intention to locate to the community
- 42% of the property tax paid by Solterra residents goes to FRMD and Mt Carbon MD, now at 65 Mill Levy combined. Have the advantages afforded to developers, counties and cities gone too far to ensure appropriate, sustainable growth?
- The Colorado Revised Statues prohibits a District from issuing increasing general obligation debt when the ratio of debt to assessed value is above 50% and property taxes is the source to pa down the debt.
- Solterra’s 2018 assessed value was $57M. Current active bonds of $29.5M puts community over 50%.
- If an additional $30M of bond debt is approved as the current board appears to support, Solterra will be above 100%. Very concerning on the future financial health for Solterra
Gary Greaser
Solterra
If you agree with Gary, send this along to the Lakewood City Council. They need to hear from you.