Real estate development companies, through the individuals that control them, can run the special tax districts they create. Colorado’s Special District Act, meant to encourage development of open land, permits developers to control such districts and to pledge taxes and fees collected by the district to themselves. But, no government can delegate legislative functions to a private party such as a developer. Here, a special district attempted to assign the fees it collected to a developer. The developer then charged landowners interest on the fees. The court of appeals held that: 1) the district did not have the statutory authority to “assign” development fees, 2) developer could not charge interest on development fees, and 3) the assignment did not give developer a lien. Rather, districts can only “pledge” payments to developers, which must be set and collected by the district.
Tag Archives: Public Improvements
Sewers, water, and road maintenance – these are the things that the City of Sheridan does not directly provide to its residents. Unhappy, Radcliff wanted to leave Sheridan. In order for a business to disconnect from a municipality under C.R.S. 31-12-119, a petition to disconnect must meet the statutory requirements of C.R.S. 31-12-601. One of those requirements is that the municipality does not, upon demand, provide the parcel seeking to disconnect with the same services on the same general terms and conditions that the rest of the municipality receives. Sheridan, however, does not own its water and sewer systems, and can’t pay for road maintenance anywhere. The appeals court upheld the trial court’s finding that Radcliff does not receive services just like the rest of Sheridan does not receive services, and upheld the denial of the petition to disconnect.