If you have been following this editorial series, I hope you’ve come to understand that the special government district known as a metro district — as these districts are typically misused in Colorado — are the perfect tool…
…if your goal is to shift all the risk and financial burden of subdivision development from the developer onto the shoulders of the future property owners in the subdivision.
That is to say, developer-formed metro district can make a risky venture like subdivision development painless for the developer, and acutely painful for the property owners.
These metro district also violate some of the ethical assumptions we normally have about ‘government’.
In every other type of special district — fire district, hospital district, water district, sewer district, library district — it is against the law for the board members to personally benefit from their actions as board members.
In a developer-formed metro district, the whole point is to allow the board of directors to personally benefit, sometimes to the tune of millions of dollars.
In every other type of special district in Colorado, the voters living within the district must approve general obligation bonds and property tax mill levies. In a developer-formed metro district, the developer can purchase his own tax-exempt bonds, get reimbursed for all his costs by the future taxpayers, and can set the tax mill levy without any vote whatsoever by the taxpayers, without any requirement that he actually live in the subdivision.
In short, developer-formed metro districts are perhaps the most corrupt, unethical form of government ever invented in Colorado.
That’s not just my own opinion. It’s the opinion shared by practically everyone I’ve talked to about metro districts, while researching this editorial series.
In Part Five, on Monday, I mentioned that Bob Cole is the attorney advising the Pagosa Springs Town Council and the Town Planning Commission, on the problems and promises offered by metro districts, as a tool to encourage development in Pagosa Springs. I sat through a mind-numbing three-hour presentation by Mr. Cole on April 29, as he advised the Council and Planning Commission on the creation of a Town policy that would allow the creation of developer-formed metro districts within the town limits. Such districts are not currently allowed within the town.
This policy discussion was instigated by the Montrose-based Dragoo family, acting through ArenaLabs LLC. The Dragoos have presented preliminary plans for a 100-acre mixed use development, but the plan has not, to date, been approved by the Planning Commission. Nor has the Town Council approved any plans.
During his presentation to the joint meeting on April 29, attorney Bob Cole gave what I would consider ‘reasonably accurate’ information. But he did not present ‘reasonably complete’ information. He failed to point out, for the gathered Town officials, the corrupt, conflicted character of these special districts.
That lack of complete information caused me to wonder if Mr. Cole, himself, might have a conflict of interest.
He had himself indicated this possibility in his 2023 application to be hired as the Town Attorney.
Bob Cole has been retained by Straub Services, LLC to assist in seeking approval for and organizing a metropolitan district to assist with infrastructure development and provision of public services associated with the development of the Reservoir Ranch property. If we are engaged by the Town of Pagosa Springs, the proximity of this project to the Town creates the potential for a conflict of interest. Through discussions with Straub Services and the Town if it is determined that a conflict of interest exists and is of a nature that cannot be waived, our firm will be unable to represent either entity on this matter only. We have no other known potential conflicts of interests.
At yesterday’s Town Council meeting, Town Manager David Harris informed me that Mr. Cole is no longer advising Straub Services, LLC, and suggested that there’s not currently a ‘conflict of interest’ issue, in that regard.
But I had also mentioned Mr. Cole’s possible conflict of interest to metro district activist John Henderson, one of the authors of the 19-page ‘Handbook for Residents and City/County on Metro District Reform’, which you can download here.
Mr. Henderson responded via email, noting the long history of Mr. Cole’s law firm in promoting the legal basis for developer-formed metro districts. That firm was previously named Collins Cockrel & Cole; it’s currently known as Collins Cole Winn & Ulmer.
Mr. Henderson’s comment:
Collins and a client developer from Aspen created the Special District Association in 1975. By 1981, they got the legislature to completely re-write Title 32 and the modern metro district for developers was born.
Collins’ firm controls the SDA and his partner is currently one of the senior directors.
I hadn’t heard this claim about the SDA before, so I checked the SDA website to confirm Mr. Henderson’s comment.
Apparently, Bob Cole’s law firm partner Allison Ulmer is Executive Vice President of the SDA.
Mr. Henderson continues:
The SDA is the lead lobbyist and captive consultant for metro districts. It publishes the SDA manual which is a comprehensive summary of Title 32. Controversial issues are reported in a way favorable to the developers. Collins was and still is one of the leading firms representing metro districts.
As a result of our efforts at the local level, they are now advising local cities and counties to write ordinances favorable to developer misuse of metro districts.
One of Collins’ partners is now counsel for Dillon, CO and they are about to write a new metro district ordinance.
It’s all about the money. Favorable legislation at the state and local level ensuring full employment for the lawyers and consultants. Because of course you can’t run a metro district without them…
If Mr. Henderson is accurate in his perceptions of the Collins Cole Winn & Ulmer law firm, it could explain why Mr. Cole avoided sharing the metro district horror stories I’ve heard from everyone else.
Here’s that quote, one more time, from the email I received from journalist David Migoya:
Metro Districts are a ridiculously complex area, so I’d be pleased to share any of the snake pits or traps I had to manage because, rest assured, the sharks are circling.