EC West Metropolitan Districts present proposed special improvement districts to county; no action taken

Representatives for the EC West Metropolitan Districts briefed the Elbert County Board of County Commissioners on June 11 about the districts’ intent to form special improvement districts (SIDs) to finance local, site‑specific public improvements for a large residential development. No board action was requested or taken at the meeting.

Why it matters: EC West covers approximately 1,464 acres planned for as many as 2,850 residential units. Estimated public improvement costs in the project’s service plans were described at roughly $376.4 million; SIDs are proposed as a financing tool to fund local streets, storm sewer and related on‑site infrastructure specific to benefiting lots, while other spine infrastructure would be financed through district bonds and water/sewer districts.

Paula Williams, counsel for the metropolitan districts, explained that Title 32 allows metropolitan districts to form SIDs and impose assessment liens on benefiting lots; the service plans approved by the board in 2024 contemplate SIDs if the county provides written consent. Williams said any assessments used to repay SID bonds must be paid before issuance of a certificate of occupancy for an affected lot.

Underwriter Jonathan Heroux (Piper Sandler) and engineer Michael Wolfersberger (Independent District Engineering Services) described how SID assessment lien financing can lower the cost of capital by using tax‑exempt financing and by allowing liens to be paid down quickly as lots are sold. Wolfersberger said the likely SID‑funded improvements would include local streets, storm sewer and potentially earthwork tied to individual filings.

Commissioners asked whether SIDs would increase home prices. Counsel and the underwriter said the mechanism can reduce overall financing costs compared with private developer financing and therefore can, in many cases, lower the financed cost of improvements; however, the assessment lien is assigned to each lot and the lien amount is based on projected finished‑lot value. The board also asked about ownership and maintenance of constructed roads; applicant representatives said the metropolitan districts would own and maintain internal roads after construction and warranty inspections, rather than dedicating them to the county.

Jim Yates (applicant representative) described the structure as “a substitute for private equity” that lowers the cost of money for building initial infrastructure. The representatives said the SID would be created within service plan parameters approved by the board; SIDs would issue assessment bonds repaid by benefiting lots, and lien proceeds would be used to repay bondholders as lots clear title.

No vote or consent was taken by the board at the June 11 meeting; staff said EC West representatives are scheduled to return on July 9 for follow‑up.