Calls for metro district reform mount

BY ROBERT DAVIS YELLOW SCENE MAGAZINE

Andrew Sorensen and his wife Samantha were elated when they bought their home in Broom eld’s Baseline neighborhood in September 2022 after nearly a year of bidding on homes that were overpriced and uninhabitable in some cases.

However, Sorensen said that excitement quickly turned to trepidation after the couple learned that their home was controlled by a metropolitan district, a controversial tool that Colorado developers use to build homes.

Sorensen’s home is part of Baseline Metropolitan District 3, one of nine metro districts that are responsible for developing homes and maintaining the necessary infrastructure like roads, water lines, and sewer systems. Colorado law also allows metro districts to issue bonds to nance its work, and those bonds are often paid back through property tax mill levies.

So far, the metro district has codied about $764 million in bonds that it can issue to investors. e debt incurred by these bonds would be paid back by Baseline homeowners over the next several decades. ere’s just one catch: e board members that set the Baseline Metropolitan District’s tax levels all work for McWhinney Real Estate Services, the developer building the neighborhood.

“When McWhinney owns the land, the rights to develop it, and the right to charge Coloradans whatever the company would like to nance the project via bonds, can you call it anything but self-dealing?” Sorensen asked Colorado lawmakers in February.

Like other homeowners in Colorado, Sorensen wants greater transparency and responsiveness from his metropolitan district’s governing board. For example, Sorensen said he and his neighbors don’t know if McWhinney is charging them a fair price for their development services.

He added that they also have no say in whether McWhinney raises the district’s mill levy in the future. is could e ectively price Sorensen, and other homeowners, out of the neighborhood if they are unable to keep up with property tax increases, he said.

“ ese practices should be far more heavily regulated than they are,” Sorensen added.

Metro districts and homebuilding

Metropolitan districts have come under increasing scrutiny in recent years as Colorado’s challenges with housing a ordability continue to fester.

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