Centennial council approves special assessment tool to finance Festival Center townhomes; developer to carry assessments until sale

Centennial city council on Aug. 5 unanimously approved Resolution 2025‑R‑27 consenting to the Festival Commons Metropolitan District’s use of a special‑improvement district (SID) and special assessment bonds to finance public infrastructure for a 114‑unit townhome project at Festival Center.

The council action authorizes the metropolitan district to use a statutory SID assessment tool to raise money for infrastructure—sanitary sewer, storm sewer, water lines, streets, landscaping and retaining walls—without creating a direct city cash obligation. Neil Marciniak, Centennial’s economic development director, told council the tool is intended to help revitalize the north side of Festival Center at the northeast corner of County Line Road and South University Boulevard.

Jeff Erb, attorney for the Festival Commons Metropolitan District, and Jeffrey Powells of Local Homes explained how the SID and special‑assessment bonds will be structured. The assessment will be allocated lot‑by‑lot based on a benefit study and paid in installments to the district; the developer (Local Homes) will carry the assessment while lots are held and construction proceeds. The assessment is then accelerated and paid in full at the closing when each townhome is sold, so “a resident doesn’t pay it,” Erb said. “The assessment doesn’t live forward in time once somebody actually buys the unit.”

Marciniak said the district and project align with the city’s retail center strategy and that the district’s service plan was previously approved by council (Resolution 2024‑R‑32). The council’s approval of Resolution 2025‑R‑27 includes a four‑year time limit for the special assessment tool; staff and district attorneys said if the tool goes unused it does not remain available indefinitely.

Council member Mower moved approval; Council member Alston seconded. The vote was 7‑0.

What this means for buyers and residents: district and project attorneys said assessments are paid lot‑by‑lot and are due in full at the sale closing of each townhome, not as an on‑going special assessment charged to future homeowners after they take title. The district and developer emphasized the tool is intended to lower financing costs and accelerate access to bond proceeds needed to build infrastructure earlier in the development schedule.

Speakers at the meeting described the tool and answered council questions about market impacts, who holds the bonds and how assessments affect sale pricing; council members praised the clarity of the presentation.