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1 /22/2020 <br />Editorial: Rein in the unlimited taxing powers of developers <br />Just because we're $17 billion into this failed experiment of trusting for - <br />profit companies with taxpayer dollars doesn't mean it's too late to stop. In <br />fact, a new metropolitan district is likely being considered by a city council <br />or county commission near you this month. These city and county officials <br />should stop approving the formation of new districts immediately until <br />local officials and state lawmakers are able to gain control of the situation. <br />The situation, to briefly recap the first part of The Denver Post's <br />investigation "Metro Districts: Debt and Democracy," is dire. Post reporter <br />.................................................................................................................... <br />David Migoya uncovered multiple ways developers in Colorado are abusing <br />the almost unlimited power granted to them through these metropolitan <br />districts. <br />Almost no new development is occurring in Colorado that isn't funded, at <br />least in part, with taxpayer money. But it isn't local elected officials <br />spending that money and guarding against fraud and abuse. The <br />developers themselves have complete control, sometimes for decades. <br />Migoya's reporting included disturbing examples of developers violating <br />........................................................................................................................................ <br />public trust. <br />.................................... <br />RELATED: Read more from the Denver Post investigation "Metro <br />....................................................................................................................................................................... <br />Districts: Debt & Democracy"here. <br />We'll highlight one bad deal from among hundreds: <br />Lennar Corporation — one of the nation's largest homebuilders — is <br />running a metropolitan district that will help pay for the development of a <br />subdivision called Orchard Farms in Thornton. Homeowners in this <br />relatively small community of about 450 homes on 154 acres are being <br />fleeced by compounding interest, bad debt and transfer fees. <br />According to a bond document obtained by Migoya as part of his <br />investigation, homeowners in this neighborhood will be paying off the <br />developer's debt until 2053. As of 2018, $12.9 million in debt had been <br />issued by Lennar's representatives on the metro district board, and it will <br />be paid for through property taxes at rates that rival the city, county and <br />school taxes combined. <br />https://www.denverpost.com/2019/12/11/editorial-metro-districts-developers-taxes-bonds/ 54 2/5 <br />