To: Honorable Mayor and Members of Town Council
From: Michael J. Hyman, Town Attorney
Title
Resolution Consenting to the Dissolution of Castle Pines Commercial Metropolitan District No. 1
Body
________________________________________________________________________________
Executive Summary
Castle Pines Commercial Metropolitan District No. 1 (“District No. 1”), by and through its Board of Directors, has voted to dissolve. In accordance with the provisions of Section 32-1-701, et seq., C.R.S., legal counsel for District No. 1 is seeking the Town Council’s consent to file a Petition for Dissolution with the Douglas County District Court.
Background
In 1987, District No. 1 was formed together with Castle Pines Commercial Metropolitan District Nos. 2-5. In 2015, Town Council adopted Resolution No. 2015-04 re-authorizing District No. 1, along with Castle Pines Commercial Metropolitan District Nos. 3 and 4 (collectively, the “Districts”), to assist in the development and financing of infrastructure to serve portions of the Promenade development, and approving the Amended and Restated Consolidated Service Plan for the Districts (the “Service Plan”).
Discussion
Section 32-1-704(3)(b), C.R.S., provides that a special district can be dissolved by court order without the need for an election if: (i) the district lies wholly within the corporate limits of the municipality; (ii) the district has no financial obligations or outstanding bonds; and (iii) the special district board and the governing body of the municipality consent to the dissolution. In addition, pursuant to the Service Plan and the Town of Castle Rock/ Castle Pines Commercial Metropolitan District Nos. 1, 3 and 4 Master Intergovernmental Agreement (the “Master IGA”), District No. 1 shall be dissolved if all facilities contemplated under the Service Plan and Master IGA have been acquired, constructed, installed, and completed; final payment or discharge of all outstanding indebtedness of District No. 1 has been completed as required pursuant to Colorado law; and adequate provision has been made for ongoing operation and maintenance of the public improvements as contemplated in the Service Plan.
District No. 1 is wholly contained within Town boundaries, has no financial obligations or outstanding bonds, and its Board of Directors has consented to the dissolution. Further, legal counsel for District No.1 has represented that all facilities have been completed and adequate provision for ongoing operation and maintenance of the public improvements has been made. Lastly, Town staff has been provided a certificate from District No. 1’s accountant showing final discharge of all outstanding indebtedness.
Staff Recommendation
Based upon the request of the District No. 1 Board of Directors and the representations made by District No. 1’s legal counsel in support of such request, Town staff recommends that the Town Council consent to the District’s dissolution. Town staff further recommends that the Town council authorize the execution of the Partial Termination of the Master IGA to remove District No. 1 as a party.
Proposed Motion
“I move to approve the Resolution as introduced by title on first reading.”
Alternative Motions
“I move to approve the Resolution as introduced by title, with the following conditions: (list conditions)”
“I move to continue this item to the Town Council meeting on (date) to allow additional time to (list information needed)”
Attachments
Attachment A: Resolution
Exhibit 1: Partial Termination of the Master IGA
Attachment B: Letter from Legal Counsel Clint Waldron Re: Request for Town Consent to Dissolution (with enclosures)