Elston Park Metro District seeks council approval to issue up to $4 million in bonds for ongoing development

Elston Park Metropolitan District asked the City Council on Sept. 22 to approve a resolution allowing the district to issue senior and subordinate limited-tax general obligation bonds with a maximum aggregate principal of $4 million to finance ongoing public improvements in a new subdivision.

Why it matters: The bond issuance would be the districts first debt issuance to support construction of public infrastructure for a developing neighborhood. City staff said the request is within the districts authorized limits and that financial institutions and bond counsel will complete due diligence during the issuance process.

Details presented
- Allison Stocker, senior planner, said the Elston Park district was created under an older service plan and now plans to issue debt to fund on-site development; the district contains about 167 single-family and attached units and has a maximum authorized debt of roughly $15 million.
- Staff said the maximum $4 million request is higher than the expected issuance (staff estimated about $2.5 million in actual issuance depending on market conditions) and that a preliminary plan of finance shows project funds around $1.5 million with the senior and subordinate tranches covering additional costs.
- City review focuses on reasonableness of the request and alignment with planning approvals; financial underwriting is conducted by bond counsel and the market.

Next steps
Stocker said the item is scheduled for the Oct. 14 regular meeting for council action. No vote was taken at the work session.

Context
Council members were given supporting materials including the district boards authorizing resolution, service plan and development entitlements. Staff emphasized the district will likely need additional future bond issuances as construction proceeds.