Exposing financial dangers of some metro districts
Re: “Debt & Democracy: Tax authorities created by builders, developers, leave homeowners paying bill indefinitely,” Dec. 8 news story; and “Little transparency over fees,” Dec. 9 news story
I commend David Migoya’s excellent reporting on the undemocratic nature of metropolitan districts that cripples us with debt. I live in three metro districts in the Green Valley Ranch North neighborhood of Denver. I have suffered the travesties covered in Migoya’s article. My taxes are some of the highest in Denver, they are eating away at my savings, and I am fearful of being able to sell my home, especially in a market downturn. Who will buy, after potential buyers read Migoya’s reporting? How suspect will they be when they realize how our city and state governments have let loose the dogs of greed upon Colorado homebuyers?
Tom Carllon, Denver
David Migoya’s fine reporting in “Metro Districts: Debt and Democracy” was informative and somewhat shocking.
The TABOR amendment applies to everyone else in the state, however, at the formation of most special districts, one of the first things the developer does is to “de-bruce” their new special district. This, in effect, overrides the TABOR amendment and allows the taxation to spin out of control, as the author points out in these examples.
Food for thought for the next time activists try to get rid of the TABOR amendment in Colorado.
Dean May, Golden
Re: “Rein in the taxing powers of developers,” Dec. 11 editorial
Kudos and taxpayer gratitude to The Denver Post for its editorial that revealed the failure of the experiment, which gave developers “taxing and bonding authority.” Major credit goes to Denver Post reporter David Migoya for his research that has broken down the complexities hiding the greedy and successful acts of developers.
We should ask The Post to stay on the case and develop a campaign to end the waste of public money transformed into corporate profits. Billions of tax dollars have gone down that drain. The campaign should seek not only to urge readers to help produce “guardrails and controls” on the process, but in addition find a way to produce a societal improvement by using the taxing and bonding authority to fund the development of affordable housing for Denver’s growing population of homeless citizens.
Phillip K. Tompkins, Denver
The series’ opening article, “Debt and Democracy,” makes a strong case for the importance of investigative journalism in our society. Without it, citizens would remain un- aware and at the mercy of hidden decisions and schemes that directly affect our lives. We could easily become the unknowing victims of ventures motivated by narrow self-interest of a few at the expense of many. I am proud that our local newspaper, The Denver Post, despite extreme economic challenge, sees fit to devote its dwindling resources to the deep and thorough investigation into the easily corruptible system of metro districts. Without skilled and dedicated professional journalists, we would remain in the dark, and our democracy would suffer for it. Congratulations, and thank you.
Fred Jaben, Denver
As a real estate policy analyst, I am familiar with metro districts as a development tool.
There are 1,819 residential metro districts in our state. Your series focuses on a handful, with most of the horror stories related to homeowner woes in metro districts in Thompson River Ranch in Johnstown.
To protect customers, local governments often cap the number of property tax mills that metro districts can charge. They are also beginning to require disclosures for prospective homeowners, so buyers understand the financial commitments involved in purchasing homes in metro districts. Responsible brokers, of whom there are many, explain metro districts to clients so buyers make educated decisions.
My employer, IRES, the regional MLS in northern Colorado, now includes a required field that brokers complete when they add a new listing to indicate whether a property is in a metro district to further ensure this information is available to real estate brokers and consumers.
Already your series is being cited by citizens and City Council members as “proof” that metro districts are bad and should be prohibited. Developers will tell you that metro districts are only one financing tool, albeit an important one, in today’s economy. Most operate responsibly without out-of-control debt. It’s important that homebuyers be educated before they buy real estate to understand their obligations. If they want to buy a home in a metro district, they should review that district’s financial documents thoroughly before signing a contract.
Barbara Koelzer, Loveland