El Paso County Planning Commission, Aug. 3 – Flying Horse North draft service plan recommended for approval

By Helen Walklett

At the Aug. 3 El Paso County Planning Commission meeting, the commissioners reviewed the draft service plan for the proposed Flying Horse North (FHN) Metropolitan Districts Nos. 1-5 and voted 5-3 to recommend it for approval.

A revised sketch plan was approved in November 2022 for the 910-acre area that would be covered by the plan. See https://www.ocn.me/v22n12.htm#epbocc.

The service plan includes a maximum debt authorization of $450 million, a debt service mill levy of 50 mills for commercial and residential property, and an operations and maintenance mill levy of 15 mills for a total maximum combined mill levy of 65 mills. Kari Parsons, senior planner, Planning and Community Development Department, said the statutory purposes of the district would be very standard and would include street improvements, the design, construction, and maintenance of drainage, sanitation, and recreation facilities, and covenant enforcement.

Parsons said a letter of opposition had been received. It came from FHN resident Phil Shecter who spoke against the FHN revised sketch plan at the El Paso Board of County Commissioners (BOCC) land use meeting in November 2022 and raised concerns about possible impropriety during that hearing with the BOCC in February 2023. Parsons said the letter raised concerns about land use, density, the home valuations included in the financial plan prepared by DA Davidson & Co., and the sketch plan approval process. She clarified that this application would not consider the sketch plan, the land uses within it, the density nor the process by which it was approved by BOCC.

The financial plan is based on 900 single-family units with estimated values ranging from $1.5 million to $6.0 million per unit, a golf clubhouse, fitness center, and convention center with estimated values of $400 to $500 per square foot and annual sales of $250 per square foot, and a 225-room hotel with estimated values of $200,000 per room and an average daily room rate of $500.

Attorney Russ Dykstra, partner, Spencer Fane, representing the applicants, said the residential development of about 844 acres would be located in districts 2-4 with the commercial development being located in 1 and 5. He said full buildout was anticipated at the end of 2030. The purpose of the districts would be to provide for construction, installation, financing, ownership, and maintenance of public improvements. They would accommodate the need for phasing of development and allow for a coordinated approach to infrastructure financing. He said there were significant costs for development in the area and public improvement costs are estimated at $39.35 million

Ahead of public comment Tom Bailey, chair, asked those who wanted to speak to limit their comments to the criteria. He said, “as Ms. Seago [Lori Seago, senior assistant county attorney] pointed out earlier, other questions about the approval of the sketch plan, the possible changes, anything else, the process that was used to get us where we are today, those are interesting but irrelevant. We can’t necessarily consider those things as we’re looking at these criteria for approval of this particular special district.”

Four members of the public spoke in opposition. No one spoke in support. One citizen said, “This type of debt and inflated housing is unsustainable.”

Terry Stokka, representing the Friends of Black Forest and the Black Forest Land Use Committee (BFLUC), commented, “While we understand a metro district is a logical thing to do for this, we’re not objecting to the metro district itself. We’re opposed to some elements of that plan because we believe that the costs are above reasonable. He continued, “We recommend that the service plan be returned to the applicant for some updates and some more realism.”

Amy Phillips, former chair, BFLUC, questioned whether the requirement that there be a demonstrated need for the services was being met. She said, “The existing residents do not need a hotel and do not want a hotel.”

Dykstra spoke again to clarify that the tax burden would only fall on new residents, saying, “This will not be on any existing residents out in Flying Horse North. This is just new residents.” He also clarified that the district would not be paying for the golf course or clubhouse which would be paid for with private funds. These facilities would be paying toward the debt service, however, and Dykstra pointed out this would lower the tax burden for residents. It is not yet known whether the convention center will be a public or private facility. Existing FHN residents will have access to all the public facilities.

Commissioner Becky Fuller said she didn’t think the assumptions made sense. She asked what the absorption rate is for new or resale $1.5 million homes in the county and was told about 75 per year.

Bailey said, “For me the assumptions made in the financial plan are reasonable. They’re not exact.”

Fuller said, “So when I’m looking at this, I do believe the first three criteria have been met. When we’re getting to item four where the financial ability to discharge the proposed indebtedness on a reasonable basis, we’re looking at 900 homes being absorbed in six years, which is about 150 a year over a million and a half in a market where we’ve seen 75 per year. I think that the underlying assumptions, they’re just not reasonable to me. For me, I think that it probably should be a different amount that they’re asking for.”

The vote to recommend for approval was 5-3. Commissioners Tim Trowbridge, Fuller, and Eric Moraes were the nay votes. Trowbridge said he agreed with Fuller and did not believe criteria 3 and 4 were met. Moraes commented, “I think a lot of the assumptions are a bridge too far to put faith in it at this point.”

Commissioner Christopher Whitney commented, “This is the second or third time since I’ve been here that I’ve felt like I need to vote aye because of what the statute and regulations require and, notwithstanding the fact that, on a moral basis, I’m not happy with it.” Describing the criteria as having been met “highly shakily with bullet form,” he added, “As the chair noted and as the testimony provided or the comments provided, we’re talking about a structure or a framework. We’re not talking about a plan that is written in blood and [which] everybody has to follow going forward so, for purposes of a structure or a framework, I’m okay with it but I expect it to change umpteen-nine times between now and when we finally finish.”

At the BOCC meeting on Aug. 29, the commissioners were expected to schedule the application to be heard at their Sept. 28 meeting.

Helen Walklett can be reached at helenwalklett@ocn.me.

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