Council approves up to $500,000 credit for Greystar to build regional drainage improvements near Peoria Parkway

Commerce City Council on the motion approved a resolution authorizing the city manager to negotiate a reimbursement agreement with Greystar Development Central LLC for up to $500,000 for construction of regional drainage improvements that will be built as part of the Aberdeen Subdivision No. 3 project north of 104th and Peoria Parkway.

The agreement, described during the meeting as a credit against drainage impact fees rather than a direct cash payment, passed by roll call 7 yes, 1 no and 1 excused absence. Councilmember Ford moved the resolution and Councilmember Dukes seconded the motion.

City staff said the development is in the final stages of administrative review: the final plat and site plan remain under staff review while a development agreement is drafted. Community development staff identified the project as a 336‑unit apartment development; the developer is being asked to install a regional drainage improvement adjacent to the site rather than the city constructing it separately.

Interim city staff explained the reimbursement term is a technical credit against assessed drainage impact fees. The city’s current drainage impact fee was noted in the meeting as 70 cents per square foot of impervious area; staff said the $500,000 cap is the maximum credit Greystar may receive against its assessed fee. The council also heard that construction will require a culvert to be placed under the O'Brien Canal and that the canal company will determine timing and restrictions related to spring runoff.

Council members pressed staff on traffic and staging questions: staff said any additional traffic mitigation or intersection improvements would be addressed in the final plat and development agreement review process. City staff indicated road impact fees and other impact fees will be assessed to the project in addition to the drainage fee credit.

The resolution was described on the record as required to allow the developer to proceed to final execution of development agreements and public improvements; staff said the credit is commonly used when a private developer installs a regional improvement that will benefit the broader area and that impact fees would otherwise be used to pay for such a project.

Council asked staff to provide follow‑up details on whether new traffic signals or other intersection improvements will be required, and staff said those items would be identified in the development agreement and subdivision process.

Votes at a glance: the council approved the resolution authorizing the city manager to negotiate the reimbursement agreement by a roll call vote of 7 yes, 1 no and 1 excused absence.

Ending: Staff said they will return with final documents, and the reimbursement agreement and development agreement will proceed through the city’s existing administrative and contractual review process.