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Board approves H H H Ranch metro districts with authority for special‑assessment SID bonds and deep‑well water system
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Summary
El Paso County approved service plans for H H H Ranch Metropolitan Districts 1–3, authorizing up to $37 million in debt, the ability to form special improvement districts (SIDs) for assessment‑lien bonds, and a plan to use deep Denver‑Basin wells and a centralized water system.
The El Paso County Board of County Commissioners on Sept. 25 approved Title 32 service plans for H H H Ranch Metropolitan District Numbers 1 through 3, authorizing up to $37,000,000 in debt and a combined mill levy cap of 65 mills.
The applicant described a three‑district structure: District 1 would function as an overlay operations and management district; Districts 2 and 3 would act as financing districts tied to phased filings. Ryan Farr, attorney for the applicant, said the developer’s model anticipates constructing a centralized water supply using deep Denver‑Basin (nontributary) wells, treated and distributed by the district. Using deeper nontributary aquifers reduces reliance on the shallow aquifer, but Farr and the applicant’s consultants said deeper wells and a central system are more expensive and are the primary reason the applicant seeks municipal bonding.
The plan requests a maximum debt authorization of $37,000,000 based on estimated eligible public improvements of about $29,000,000 and total infrastructure costs estimated at roughly $32,000,000. The service plan also seeks authority to use special improvement districts (SIDs) and issue assessment‑lien bonds; Michael Lund of Piper Sandler explained that SIDs impose an assessment on each lot while it remains owned by the developer and that the lien must be cleared before transfer to an end user, so homeowners would not inherit that debt. Lund told commissioners that municipal assessment bond financing typically yields lower interest rates than private developer financing.
The board’s staff presentation noted the property was recently rezoned to RR‑2.5 and that the districts must comply with the new state statutory limit on debt‑mill‑levy imposition terms (a 40‑year maximum). Carrie Parsons, Principal Planner, said the financial plan provided by Piper Sandler supports the applicant’s ability to discharge debt within the required statutory timelines. Commissioners asked questions about timing, amortization and refinancing; Lund said bonds are expected to be issued in 2027 with 30‑year terms and that refinancing could occur as development proceeds.
The board approved the service plans by a 4‑0 vote. The applicant intends to seek a court order for an election and then organization of the districts if the election is successful.
