The Town of Pagosa is considering whether to allow Metro Districts to operate within the Township. Metro Districts, a form of local government, have become a popular way with developers to get infrastructure paid for by future occupants of undeveloped property. The traditional method has the developer assuming the risk, installing the infrastructure, and pricing it into the cost of the lot.
You might ask yourself, “Why should I care about Metro Districts, because I don’t live in one?” The answer is that Metro Districts issue long-term debt to finance infrastructure. If the development stalls, debt repayment may become problematic, impacting bond holders and potentially taxpayers. In a small-town setting with slower growth (ours is 2%), this risk is magnified. Towns can become responsible for services and maintenance without receiving proportional revenues.
Additionally, since developers often control Metro District Boards early on, there is potential to prioritize their interests over long-term community needs.
John Henderson, an attorney recognized as an expert on metro district abuse, has authored a “Handbook For Residents and City/County on Metro District Reform”. He lists four potential abuses that can occur in Metro Districts, if not curbed through specific restrictions built into the Metro District Policy and Service Agreements. These abuses can include:
Paying twice to finance land development for new subdivisions;
Metros are extraordinarily expensive;
No checks and balances and no oversight; and,
No relevant disclosures to homebuyers.
Mr. Henderson offers specific recommendations on how to prevent abuse (see pages 11-13). The Colorado League of Women Voters offers a one-hour YouTube video which provides examples of actual Metro District abuses that have occurred in Colorado towns and cities.
Allowing Metro Districts to operate within the Township for the purpose of facilitating development must be approached with great caution and with a thorough understanding of its complexities. Using Metro Districts to solve near-term community needs can come with the price tag of long-term negative consequences.
I urge Pagosans to educate themselves on this option and to voice your concerns to Town officials. I urge County and Town government officials to educate themselves before making decisions about Metro Districts, and I recommend inviting John Henderson to present before the Town Council and Town Planning Commission, which he has offered to do at no cost to the Town.
Lucinda Tagliareni
Pagosa Springs, CO