Financial relationship links growth, schools

By Gary Raham
Wellington Correspondent

School development

House hunters seek affordable housing close to schools. Developers and school districts both know this.

IGAs (intergovernmental agreements) between school districts and incorporated communities like Timnath and Wellington can provide ways for a developer's building efforts to help finance new schools. At this time, however, neither Timnath nor Wellington has an IGA with the school district.

Poudre School District outlines physical requirements for schools for various age levels and the amount of property the district needs. Typically, elementary schools require the least space and supporting facilities, high schools the most. When possible, a school district can cut some costs by using one set of school plans in several different locations.

Through IGAs, developers may offer land to school districts for potential school sites. They know it will provide a valuable selling point. In Timnath, The Hillside Community Group, which is building housing in that town, has proposed to offer a parcel that will meet basic PSD guidelines. Such property still must pass inspections by state agencies like the Colorado Geological Survey to make sure the school isn't built on an active fault or subject to other foreseeable disasters.

Timnath and PSD are currently negotiating an IGA, and town administrator Joe Racine said he doesn't anticipate any problems. He considers PSD's requirements to be "school planning issues, which the town would support."

IGAs may also stipulate that if developers don't or can't provide suitable property, cash equivalent to market value may be provided to offset the costs of school construction. Developers usually pass on the costs from land or cash donations to the consumer. According to Shannon Bingham with Western Demographics Inc., this might add $565 to the cost of a house in Windsor and $900 to the cost of a house in Fort Collins.

PSD and Wellington have so far been unable to negotiate an IGA. Some town board members said they believe that PSD has placed too high a value on Wellington land. Local developers also have issues about equitable splits in the cost of development, some of which are "not fruitfully debated in public," according to Bingham.

Bill Franzen, PSD's operations executive director, said that the community meeting in Wellington "generated a clear message that we need to move foreword with an IGA." He anticipated scheduling more meetings with Wellington's town board by early May. Franzen said he thinks issues about the value placed on cash in lieu of land can be resolved.