Developer John Gargas of Inspire Residential asked council on Sept. 15 to apply the council’s recently amended affordable‑housing incentive policy to the Liberty Apartments Phase 1, a 72‑unit project in Orchard Mesa, and to extend the earlier city commitment (a prior $885,000 assistance package) to also include water and sewer connection fees.

What was requested: Gargas asked the city to authorize up to $671,000 in connection fees (water and sewer) tied to the project. The project is pursuing state affordable housing equity (referred to in the meeting as “Prop 1/2/3”) and includes a mix of income levels: 8 units at 60% AMI, 20 units at 80% AMI and the remainder at market‑concession levels with an overall average near 90% AMI for phase 1.

Council discussion and policy alignment: staff and council noted the council’s July resolution (referred to in the meeting as Resolution 45‑25) revised the city’s affordable‑housing incentive policy to make certain impact‑fee waivers and sewer‑tap fee backfills available for projects that meet the policy and have available budget. City staff clarified that the policy allows the city to waive city impact fees and, when the city has funding available, to cover city/county sewer connection fees. The city does not control fees charged by a separate private water provider; staff said the city cannot waive or reimburse another provider’s connection fee.

Direction to staff: Councilmembers expressed support for following the council’s policy and for providing the sewer‑fee assistance that the policy contemplates. Council directed staff to prepare a formal resolution for the next regular meeting (staff said they would prepare a short resolution to appear on the Sept. 17/Wednesday packet) committing city payment of the sewer connection fee (the PERSIGO/ county sewer charge identified in staff discussion) and to prepare the appropriation for the council to consider. Staff said the city already has the previously discussed $234,000 impact‑fee budgeted; applying that amount under the policy reduces the incremental ask to roughly $53,000, which council agreed could be covered from fund balance under the policy and current reserves.

Limits and next steps: Council members repeatedly clarified that water connection fees assessed by the private water provider are not within the city’s authority and thus are not included in the resolution. Several councilmembers praised the project’s cost efficiency and urged staff to move quickly because the developer was awaiting CHFA/Prop 1/2/3 funding decisions in October; staff said the city’s commitment letter would assist the developer’s funding application. Staff will return on short notice with a resolution and appropriation to commit the sewer connection fee payment for council consideration.

Ending: The council’s direction was procedural (staff to prepare a resolution and appropriation) rather than a formal vote; the developer said prompt action would help keep the project on a timetable for fall funding rounds.