Wheat Ridge council approves service plan for Legacy metropolitan districts to fund Lutheran campus redevelopment

The Wheat Ridge City Council voted Feb. 24 to approve a service plan and intergovernmental agreement enabling the creation of Legacy Metropolitan Districts Nos. 1–12 to fund public infrastructure for the redevelopment of the former Lutheran Legacy campus.

The plan, presented by Megan Murphy of White Bear Ankle Tanaka & Waldron on behalf of Intermountain Health, allows the metropolitan districts to issue up to $110 million of debt with a maximum debt mill levy of 67 mills and a statutory discharge (maximum debt imposition) term tied to state law. "There is a maximum debt mill levy imposition term, which is 40 years after the first imposition of a debt mill levy," Murphy said during her presentation, noting that the provision limits how long the debt levy can be imposed.

City staff said the proposed district boundaries include only parcels inside the roughly 100-acre Lutheran campus and that no properties outside that boundary would be taxed by the district. The service plan identifies about $99 million in public improvements needed to support redevelopment; the metropolitan district structure would allow developers to finance those improvements and pass debt service to properties within the district rather than relying on general city funds.

Resident Elise Brom testified during the public hearing urging council to reject the district formation. "Why would you add another level of government in the city which you don't control?" she asked, saying concerns include permanent higher property taxes for future residents and developer control of revenue streams. The speaker also asked whether historically significant buildings on the site, including the Chapel and Blue House, would be excluded from the district; staff responded that the boundaries cover only properties within the campus and that historic-preservation requests had been discussed with the city manager's office.

Council members asked staff about consumer disclosure and ongoing public access to district documents. Murphy described additional disclosure measures redlined after a council request: purchasers would be required to acknowledge district membership in the purchase-and-sale contract, and sales offices or model homes would display a prominent notice advising buyers the property is in a metro district and where to find further information. "It's actually gonna be a piece of paper they sign when they're signing the purchase and sale contract saying, I understand this property is in a special district," she told council.

Councilors also asked whether roads and sidewalks built by the district would meet city standards. Staff said the districts must meet city standards as a minimum and could elect to provide higher-quality improvements; maintenance of non-dedicated streets and other improvements would be the district's responsibility rather than the city's.

Mayor Pro Tem Corey Stites moved to approve Resolution No. 14-2025; the motion carried after a roll call. The clerk recorded "all ayes, no nays; motion carries." The council did not identify a specific vote tally in the record beyond that statement.

The service plan now permits the creation of up to 12 director districts, which developers often use to phase infrastructure financing as development proceeds. Staff said the market — home values and builder decisions at the time of development — will determine the timing and scale of debt issuance.

Councilors indicated they had received letters from some property owners asking to be excluded; city staff reiterated the district would not tax properties outside the mapped boundaries. The plan must comply with Colorado statutory requirements for metropolitan district service plans and related disclosures.

The council's approval allows Intermountain Health and the district organizers to proceed with the statutory formation steps and district administration under the terms the city reviewed.

Notes: This item was heard as agenda item 2 and included a public hearing and presentation by Intermountain Health's counsel and city staff. The council approved the service plan by motion and roll-call poll.