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Staff outlines how —metro districts— can fund Midtown Centennial infrastructure as city weighs policy options
Summary
Economic development staff briefed council on Title 32 metro districts in Midtown Centennial, describing their powers to levy property taxes, issue debt for infrastructure, and the complications introduced by new residential development and overlapping districts. Staff said it is engaging 11 metro districts in discovery to assess partnerships.
City economic development staff told the Centennial City Council on March 3 that metro districts (Title 32 special districts) are likely to play a central role in implementing the Midtown Centennial vision, but that the city will face policy choices as residential uses are added to historically commercial areas.
Neil Marciniak, the city's economic development director, said metro districts are separate local government entities formed under state statute and the city's municipal code that can provide services such as street and stormwater improvements, water and sanitation, and other public infrastructure. "They are a separate local government entity that, you know, essentially this body has to approve to operate in our community," Marciniak said.
Staff reported there are about 11 metro districts inside the Midtown Centennial boundary. Some were formed in the 1980s for commercial development and are in maintenance mode; newer districts (for example, "Centennial 360" and the "Jones" districts) were created to support recent mixed-use and residential projects and are still paying down debt. Marciniak described how metro districts raise revenue by imposing property taxes and fees and by issuing debt to pay for public improvements; once debt is repaid, he said, districts typically transition to a lower tax rate and a maintenance focus.
Marciniak flagged several governance and equity considerations that will affect implementation: many older commercial districts have eligible electors limited to property owners (one vote per property), while the introduction of rental residences can change elector dynamics by adding many residential voters who do not directly receive a separate property-tax bill. He also described overlapping-district rules: when a proposed district seeks to provide a service already offered by an existing district, the existing district must provide consent for that service to be duplicated.
Staff discussed example districts in Midtown (Greenwood Consolidated, Southgate, Panorama, Jones, Highland Park, and a large, multi-jurisdictional district known as SPYMED) and noted that some metro districts extend beyond Centennial's boundaries and may require county-level approvals for certain amendments. Marciniak said staff will continue engaging district boards and stakeholders to determine partnership capacity and whether policy recommendations should return to council.
Council members asked about who must approve amendments when a district covers multiple jurisdictions, how residents in rental properties learn about their voting rights, and whether older commercial districts would be a vehicle for redevelopment or whether new districts would be required. Staff said they are in discovery and will provide additional information as proposals emerge.
No formal action was requested or taken; staff framed the briefing as an initial step in developing implementation tools and policy options.
