City Council on Sept. 2 approved a service plan and intergovernmental agreement (IGA) to enable formation of the Kestrel Metropolitan District, a special district proposed for a 25.83-acre subdivision near 100th Avenue and 120th Street. The motion passed with a 6-0 vote; Council member Snyder recused from the decision. Assistant Director of Community Development Shannon McDowell presented the plan and recommended approval, saying the application meets requirements of the Colorado Revised Statutes and the city's model service plan.

The service plan states the district would finance design and construction of public improvements including arterial and collector roadway work (north side of 100th Avenue to major arterial standard and east side of Peoria Street to collector standard), internal streets, drainage modifications (including two ponds), water and sewer extensions, and parks and open space. McDowell said the development was preliminarily platted in 2025 and that final plat and construction plans were under staff review.

The district's financing elements in the plan include an estimated $9,700,000 cost for infrastructure, a borrowing authority (debt limit) of $13,000,000, and a combined mill levy cap of 60 mills (with up to 50 mills for debt service and up to 10 mills for operations and maintenance). The plan limits debt-repayment mill levies to a maximum term of 40 years and requires disclosure to potential property owners that lots lie within an inclusion area. McDowell said the plan estimates about 500 residents at full build-out. Sean Allen, counsel for the applicant, described the district's reliance on tax-exempt bond financing to provide "attainable housing" product types and explained the typical two-stage bond issuance and later refinancing to reduce long-term rates.

During the presentation Allen and McDowell both described expanded transparency requirements for metro districts: ADA-compliant district websites with specified disclosures, seller and builder disclosure requirements to buyers, and other statutory notice obligations. Jackie Phillips, Colorado House District 31 representative, addressed the council during public comment and noted that recent state legislation increasing transparency around metro districts was authored by local legislators and praised the disclosure requirements Allen described.

McDowell said planning staff and outside reviewers found the service plan meets the statutory and city model requirements and that no formal public comments were received before the hearing. Council members asked procedural questions about initial district board composition (developer-appointed voters at formation) and traffic/signal improvements; Council member Green voiced concern about traffic at the Peoria/Thunderhawk intersection and asked whether a project sign had been posted on site (McDowell said no sign was required for a metro district hearing). The council approved a resolution finding the service plan sufficient and authorizing the IGA as presented.

Because the service plan approval is only one step, Allen explained that if council approves the service plan, the organizers next petition district court for an election to form the district; a judge's order and a certified election would be needed before the district is formally organized.