Challenge:

• To redevelop a 4700-acre airport into a mixed-use community without any public risk or investment.
• Address environmental remediation of an operating airport with over 27 known contaminants, and recycle 1,100 acres of paving and 2,000 tons of asphalt.
• No Government financial support.
• A need for $750m in new infrastructure.
• To deliver on the community vision of a new urbanist, walkable community that recycles and knits the land back with surrounding communities.

Solution:

• Created a pay-as-you-go system that allowed the developer to purchase land through a 15-year option agreement and install infrastructure at its discretion.
• Established a 25-year Tax Increment Financing (TIF) agreement to fund regional infrastructure.
• Implemented a 55-year Community Facilities District (CFD) to fund in-tract infrastructure.
• Developed a 10% developer advance note, refinanced at a lower rate once tax revenue was in place.
• Created initial bonding capacity by maximizing existing retail demand, developing a 1 million square foot power center anchored by Walmart, Home Depot, and Sam’s Club. This generated enough sales and property tax revenue to support infrastructure needs for the first 1,000 homes.
• Balanced tax revenue creation with infrastructure installation, allowing for continuous development over 25 years without requiring additional capital infusion.

Outcome:

• $3.4 billion project completed.
• $462 million in TIF generated.
• 12,000 homes built and occupied, with 30,000 residents.
• New neighborhood established with zip code 80238.
• 1 train station developed.
• 1,100 acres of parks and open space created.
• 31 new schools built and occupied.
• 6 million square feet of office and retail space built and occupied.
• Community vision successfully realized.
• Awards & Recognition:
  • ULI International Award of Excellence received.
  • Named the Most Sustainable Community in the World by the Stockholm Sustainability Institute.
  • Established a new international model for Master Planned Community (MPC) development.
• Highly profitable development, generating a 10x return on peak investment.