Arapahoe County approves Eastgate special districts service plan with $70 million debt cap, conditions

The Arapahoe County Board of County Commissioners on March 11 approved the Eastgate Special Districts combined service plan (case SD24-002), permitting the creation of six metropolitan districts to finance roads, water, storm drainage, parks and other infrastructure for a proposed mixed residential and commercial development near Interstate 70 in the Monahan area.

County staff and the applicant described the plan as a multi-phase mechanism for building infrastructure where no public utilities currently exist. Senior planner Kat Hammer told commissioners the plan would organize six districts to provide water and sanitation, storm sewer, transportation improvements, park and recreation services and other public improvements; staff recommended approval with one condition to remove television relay and translation services from the plan.

Applicant Jeffrey Herb and developer representatives said the districts will finance construction through district bonds and loans and phase improvements as development proceeds. The service plan sets a maximum debt limit of $70 million for project and regional improvements, with staff and the applicant citing a projected asset value at full build-out and a financial review by a county consultant that found the plan’s assumptions reasonable. The plan envisions a maximum combined mill levy of 75 mills (50 mills for debt service, 10 mills for operations and maintenance, and 15 mills for regional improvements), though developers and staff said actual levies will be set by elected district boards and could be lower depending on actual debt issuance and assessed valuations.

Commissioners pressed the applicant on governance and timing. The applicant explained that initial eligible electors in the May organizing election will be property owners within the district boundary (the property owner and family members currently), and that as homes are built and people move in future residents will become eligible electors and may stand for the district board in later elections. Applicant and county staff said most public streets are expected to be built to county standards and ultimately accepted for county maintenance; district responsibilities would likely include park and trail maintenance, covenant enforcement and some design-review functions unless those improvements are transferred to other public entities.

Commissioner Warren Gully asked for concrete examples of homeowner impact; developer representatives offered an estimate using a $400,000 house: total property taxes under the combined levy scenario would be around $2,100 annually, roughly $175 per month, acknowledging that the estimate depends on assessed valuation and how many mills are ultimately set. Commissioners noted the tradeoffs of financing large infrastructure via special districts and the potential long-term tax implications for homeowners.

The board moved to approve the service plan with the condition that the television relay and translation service be removed prior to final approval. The motion passed unanimously with Commissioners Fields, Warren Gully, Campbell and Sumi voting yes; Commissioner Jeff Baker was absent and excused.

The applicant indicated the next step would be a petition to Arapahoe County District Court to order the district organization election, targeted for early May, followed by the court order creating the districts if the election succeeds.