County identifies parcels in Promontory assessment district
December 16, 2014
When the Summit County Council approved Mountain Regional Water District’s request to levy an $8.8 million bond, it also set up an assessment district in Promontory for repayment of the developer’s portion of the bond.
The county issued an ordinance this week confirming the list of parcels included in the assessment district that will finance the costs of installing culinary water improvements related to future growth in Promontory.
On Dec. 3, the council agreed to allow Mountain Regional to levy the bond to finance improvements to its water systems. Of the $8.8 million, approximately half will be repaid by Promontory Development and the other half by Mountain Regional Water customers.
Promontory is essentially establishing an improvement district as collateral for its portion of the bond. The bond will help fund a large water tank that will provide storage and water flow capabilities to the district.
The assessment district only includes land owned by Promontory, including a clubhouse and golf course, and does not affect current property owners, Promontory Managing Director Rich Sonntag said.
When the County Council approved the bond, it acknowledged Promontory as the sole property owner.
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"It’s basically just the lots that are owned by the developer and the future development property that has not yet been platted," Sonntag said. "It doesn’t affect anyone but us."
In the future, when Promontory Development sells a lot, the impact fees will go toward the assessment and pay part of the obligation, he said.
"We pay that off when we sell the property," Sonntag said. "And whenever a new homeowner takes control of the property, it will be free from the bond."
The bond will be repaid over a period of 20 years.
"The improvements needed to be done all at once, not in portions," Sonntag said. "That’s why we are putting it all in up front and are putting our property into a district. Then we’ll get back a piece at a time when someone builds a house."
Mountain Regional Water customers will be responsible for the other half of the bond, approximately $4.4 million, but shouldn’t experience any increases in rates or impact fees as a result of the bond, according to Mountain Regional Water General Manager Andy Armstrong.
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