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Council consents to dissolution of The Canyons Metropolitan District No. 6 as part of refinancing plan
Summary
The council approved Resolution 24‑53 consenting to the dissolution of The Canyons Metropolitan District No. 6 after counsel described a refinancing transaction that will refund bondholders, issue new bonds and include an $8 million cash payment in exchange for forgiveness of about $55 million in developer advances.
Counsel representing The Canyons districts told council the dissolution of District No. 6 is part of a multi‑district refinancing and bond‑pricing process that included district board approvals. Megan Murphy said the District 5 bonds were priced and the parties expect a closing on Oct. 11; the plan will refund outstanding bondholders, issue new bonds that include new‑money components and allow developers to forgive certain outstanding advances so District 6 can be dissolved.
Murphy described financial mechanics: the districts currently owe roughly $55 million in advances; as part of the restructuring the developers will accept a lump sum payment of about $8 million and forgive the remaining advances, leaving no outstanding debt in District 6 so it can dissolve. Council members asked about mill‑levy impacts, resident input and whether residents would receive refunds; counsel said taxpayers are not required to vote and that the bondholders (not residents) will be refunded as part of the transaction. The council approved the resolution.
