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Board recommends local improvement district to replace Greeley Mall private potable system
Summary
Staff asked the board to recommend City Council create Local Improvement District 172334 to replace the private potable water system serving Greeley Mall; board approved recommending the LID ordinance after staff described costs, easement needs and repayment options.
City staff asked the Greeley Water and Sewer Board to recommend that City Council adopt an ordinance establishing Local Improvement District (LID) 172334 to replace a private potable-water system at the Greeley Mall (23rd Avenue & 28th Street).
Derek, the presenting staff member, said the mall’s private system—installed in the early 1970s—has poor maintenance history and is in deteriorated condition. The Water and Sewer Department has had repeated communications with the mall’s owners with no progress toward voluntary replacement, prompting staff to propose an LID so the utility can construct a public potable system and be reimbursed by property assessments.
Staff estimated design fees at about $67,000 and construction costs in the $3.0–3.2 million range, with easement acquisitions required; staff said eminent-domain authority has been approved so necessary easements can be obtained. The LID boundaries would include two parcels owned by Greeley Mall Company LLC; one city-owned parcel (former Sears) sits inside the larger mall parcel but cannot be included for assessments because the city owns it; staff said the city’s portion will be removed from assessment calculations.
Staff presented repayment alternatives (do nothing, use plant-investment fees, use rate funds) and explained why the LID best assigns repayment responsibility to benefiting property owners. The board discussed bankruptcy risk for the mall, how meters and billing currently operate, and enforcement options (including potential shutoff tied to code enforcement). Legal counsel said assessment liens would participate in bankruptcy as a creditor if a mall owner declared bankruptcy, but equity and prior liens could affect recoveries.
The board moved and seconded a recommendation that City Council adopt the first ordinance establishing LID 172334; the motion carried.
Next steps: staff will present the second ordinance later (to specify final costs and assessment mechanisms) and pursue necessary easements and design work.
