Title
Metro Districts Regulation
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Summary & Background
Metro districts are an integral part of Commerce City, particularly in the North Range. A large portion of Commerce City residents live within Metro Districts. While metro districts provide funding and enable development, they also impose significant costs on home buyers. There is also the potential for abuse by bad actors. Council has expressed an interest in enhancing regulations. The purpose of the presentation this evening is to provide a very high level overview of metro districts and discuss Council’s consensus direction to Staff in continuing to develop additional regulations.
Metro District Overview:
While most council members are likely very familiar with metro districts and their operations, this presentation will also serve to ensure that all council members have the same underlying base of knowledge. Making sure everyone has the same understanding and background is vital to making informed decisions. This background information is designed to be introductory rather than exhaustive, and staff can provide more information as requested.
Metropolitan districts are a quasi local government allowed under Title 32 of the Colorado Revised Statute (CRS). They possess governmental powers subject to legal restrictions and provide services that are typically provided by government entities but are not currently being provided. These services are laid out in the service plan, the district’s chief organizing document. The typical services covered by metro districts are related to infrastructure - the funding and construction of streets, sewer/water lines, and more. Importantly, they also possess another key power of a local government: the ability to levy property tax. The tax imposed by the district within its borders is what funds the services provided.
Metro districts are chiefly used by developers as a financing mechanism. It allows them to finance development and offer lower home prices. New dev...
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