The Lakewood City Council on May 12 approved a service plan to form the Bend at Lakewood Metropolitan District and separately adopted an urban‑renewal plan that will use tax‑increment financing to help pay for public infrastructure and environmental remediation for a proposed mixed‑use project near the Denver Federal Center light‑rail station.

The metro district approval passed 8–3 after extended presentations and questions about environmental cleanup, utility service and how financing and developer commitments will be enforced. The urban‑renewal plan passed 11–0.

The developer, Lincoln Property Company, presented plans for roughly 2,149 rental units and about 100,000 square feet of commercial space, phased south to north across the site. Allie Meister, Lincoln’s project development lead, said the team is committing 10 percent of residential units as affordable housing and expects the southern portion of the site (phase 1) to be ready for construction first. “First and foremost, affordable housing was a goal. And that’s a commitment that we’re willing to make with 10% affordable,” Meister told council.

Why council acted: city staff and the Lakewood Reinvestment Authority (LRA) told the council the combination of URA tax increment revenue and a metropolitan district is the most feasible way to finance public roads, remediation and infrastructure needed to make the site developable. Carol Miller, a city staffer in Sustainability and Community Development, told council the plan “will help transform the corridor into an urban, high‑density, mixed‑use transit‑oriented development and will assist with economic growth as envisioned in the comprehensive plan.”

Remediation and state oversight: the site includes parcels previously investigated by federal agencies. Lincoln and its consultants told council the southern portion of the site has received “no further action” letters from the Colorado Department of Public Health and Environment (CDPHE) and is ready for phase‑1 work; the northern portion contains historic landfill/impacted soils and will require a corrective action/materials management plan submitted to CDPHE before earthwork.

Scott Waldemeyer, environmental consultant with Vertex, described the regulatory steps and controls that will be used during excavation and construction, including a materials‑management plan, dust and air monitoring, wetting procedures, and state review and signoff. He told the council that the developer will submit the remedial plan to both the city and CDPHE and execute required measures before beginning the northern phase: “that materials management plan would essentially say that as a part of that, we’re gonna remove the impacted material, put in clean‑fill corridors and provide future utility workers those clean, safe environments,” he said.

Utility service and governance questions: councilors repeatedly asked how water and sewer service will be provided. Lincoln said it has discussed multiple options with area utilities and that one path is to use a metropolitan‑district financing mechanism to fund certain offsite or on‑site utility work; another path would be an intergovernmental arrangement if the existing special district (Green Mountain Water and Sanitation) agrees to serve the site. Lincoln said Green Mountain has declined to continue dialog in recent board meetings and the developer has filed a legal claim; the developer said it will pursue alternate inclusion or exclusion procedures if necessary. The council was told no district debt can be issued until utility arrangements and an approved development plan are in place.

Financing and next steps: the URA projects roughly $89.5 million in property‑tax increment over 25 years to support bonds for public improvements; staff and independent underwriters presented an initial capital plan and costs for public improvements of about $35.9 million (the applicant also presented an alternate utility option that could raise total public costs). City staff told council the URA and metro district financing package was modeled as viable under conservative assumptions and that the developer would be required to cover any shortfalls.

Council safeguards and oversight: council members pressed for enforceable commitments and a clear approval path. City staff and the applicant said the development agreement, the financing agreements and the LRA’s public‑financing approvals will be required before issuing debt. The council added a recital in its approval noting that future agreements — including a development agreement, an affordable‑housing agreement and parkland/open‑space dedications — will set forth the city’s expectations and be made binding. City staff emphasized the metro district cannot issue debt or levy millings for operations until those subsequent agreements and approvals are completed.

Public testimony and historic preservation: supporters of placing Car 25 (an historic interurban railcar owned by the city) at the development spoke in favor of the project and said the development could give the car a climate‑controlled public home with exhibition and event space. Opponents who testified during earlier public hearings raised concerns about contamination, long‑term liability and the adequacy of environmental testing; council discussion referenced CDPHE oversight and the requirement that cleanup plans be approved before northern‑phase work proceeds.

Votes and immediate consequences: the council approved the metropolitan district service plan by a roll call vote of 8 in favor and 3 opposed (Councilors Ryan, Isabel Cruz and Nystrom voted no). The council then approved the urban‑renewal plan 11–0. Staff and the applicant said the LRA will be the entity to review and approve subsequent public‑financing and development agreements; those agreements must be completed before bonds can be issued or construction financed.

What happens next: the applicant and the LRA will draft the development agreement and public‑financing documents; these must be reviewed by the LRA and city staff and will return to the appropriate boards for final approval before debt issuance. The developer must submit any CDPHE corrective action and materials‑management plans for the northern parcels and receive state concurrence before beginning remediation and utility work there.

The council’s approvals clear key legal and financing steps but leave significant conditions in place: state remediation approval, final utility arrangements and the development and financing agreements still must be completed before construction can commence.