Granby Ranch Metropolitan District (District), a quasi-municipal corporation and political subdivision of the State of Colorado, was organized by order of the District Court in and for Grand County on November 25, 2003, as a quasi-municipal corporation and political subdivision of the State of Colorado and is governed by an elected Board of Directors. The District was originally named SolVista Metropolitan District No. 2 and, on October 23, 2004, the name of the District was changed to Granby Ranch Metropolitan District.
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Financial and Operational Relationship Chart |
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The District operates under a service plan approved by the Town of Granby (Town) in May 2003 as amended with Town approval in June 2006 and November 2016. The District's service area is located in Grand County, Colorado entirely within the boundaries of the Town and is currently comprised of approximately 232.2 acres of land – a significant portion of which is developed and comprised of 362 home Lots. The District was established to provide financing for the design, acquisition, construction and installation of various public improvements within and without the District boundaries that benefit the taxpayers and inhabitants of the District. The District was also created to provide certain essential public-purpose facilities and public services for the use and benefit of all anticipated residents and taxpayers of real property located within the boundaries of the District.
Approximately 754.8 acres of land is excluded from the District’s service boundaries but is subject to paying the District’s debt mill levy until the District’s existing debt is repaid in full or otherwise defeased.
In 2006, the District issued approximately $14.7 million in bond debt for the purpose of funding construction of public infrastructure within the District. The District refinanced that debt in 2018.
The District owns no land and provides no public services. The District has no employees and contracts out all administrative, accounting and legal services.
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District's Relationship to Headwaters Metro District (hmd)
The boundaries of Headwaters Metropolitan District (HMD) is comprised of 5.3 acres of vacant land and one condo unit.
On July 17, 2013, the District, Granby Ranch Metropolitan District No 2 (GRMD2) and Granby Ranch Metropolitan District No 8 (BRMD8) entered into an Amended and Restated Amenity Fee Agreement with HMD to assess a one-time $10,000 “Amenity Fee” on each Apartment Unit, Residential Unit and Lot (as further described in the Amenity Fee Agreement) within the District, GRMD2 and GRMD8 upon (1) transfer of a Residential Unit or Lot to an End User or entity other than a “Qualified Builder” or (2) issuance of a certificate of occupancy on an Apartment Unit or (3) issuance of a certificate of occupancy on a Residential Unit not otherwise transferred to an End User. This Agreement replaces a May 26, 2005 Joint Resolution Regarding Amenity Fees Amenity Fee Agreement as amended on September 06, 2006. The Amenity Fees constitute a perpetual lien on all land within the District. The Amenity Fees are to be used solely for the purpose of financing the acquisition, construction and installation of “Amenities” to be acquired by HMD including a golf course, ski area, and related improvements, trails, and other recreational improvements, facilities, appurtenances, rights-of-way and other amenities as shall from time to time be acquired, constructed and installed by Headwaters. Payment of the Amenity Fee grants each residential dwelling unit “priority access” to such Amenities and discounted recreation facility use fees.
On December 31, 2012 Granby Realty Holdings (GRH) and Headwaters Metropolitan District (HMD) entered into the Second Amended and Restated Lease Purchase Agreement (“LPA”). Per the terms of the LPA, HMD agreed to lease from GRH a parcel of land located within the Town that included a ski area and a golf course (“Leased Premises”). The lease term was fifty years and provided HMD the option to acquire the Leased Premises during or upon the expiration of the lease term. The rent paid under the LPA was limited to the Amenity Fees collected by HMD from the District and remitted to GRH. The rent payments were not fixed to any specific amount and both parties to the LPA agreed that the amount of Amenity Fees paid by HMD to GRH may fluctuate greatly from month to month and year to year.
The LPA does not allow any refund of rents paid by HMD to GRH upon termination of the LPA and the LPA provides GRH the right to terminate the LPA if HMD defaults on any HMD responsibilities listed in the LPA.
Between December 31, 2005 and December 31, 2020, Amenity Fees totaling $6,110,000 were paid by 611 home lots within and without the District’s service boundaries to HMD, which forwarded such funds to GRH as rent payments due under the LPA.
On or before May 28, 2020, GRH defaulted on a deed of trust, which was secured by the Leased Premises. GRH’s lender (GP Granby Holdings, LLC or GPGH) foreclosed on the Leased Premises between May 28 and August 31, 2020 and notified HMD that the foreclosure effectively terminated the LPA.
District Board Composition and History
Between November 2003 and May 2010, all directors serving on the District's board were employees, owners, agents, close family members or designees of the primary company developing all land within the District. Consequently, all such directors had conflicts of interest regarding their public service on the District's board. In 2010, the first resident, taxpaying homeowner was elected to the Board.
May 2016 was the first time since the District was created in 2003 that a majority of the District's board was comprised of independent directors (who were homeowners). Subsequent to May 2018, all directors serving on the District's board have been independent regarding their public service on the Board.
District Revenue Sources
In order to fund the repayment of its bond debt, the District generates revenue from the following sources:
Property Taxes: Each year, the District assesses property taxes to fund the District's administrative costs and the repayment of the District's debt. Property tax assessments is the District's primary source of revenue and currently comprises approximately 93% of the District's total annual revenue.
Maximum Mill Levy: The District’s Service Plan establishes a Maximum Mill levy the District is permitted to impose on all taxable property within the District for the purpose of funding the District’s debt, operations, maintenance obligations and public services. The Maximum Mill Levy is 60 mills, as adjusted by the State of Colorado for changes in the ratio of taxable valuation to assessed valuation of real property since November 01, 2016. As of November 01, 2016, the ratio was 7.96%. The ratio for 2023 is 6.95%, which caused the District’s Maximum Mill Levy for 2023 to be 68.719.
Within the mill levy limits established by the District's service plan, the District also has voter approval (per the November 2003 TABOR election) to levy up to $2,875,000 in property tax revenue each year to fund the District's operations.
To fund the District's annual debt repayments, the District may adjust the debt portion of the mill levy rate each year to generate an amount sufficient to fund the annual principle and interest payments due on the bonds.
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