Milton council to hold public hearing on Granary district
Milton Town Council will hold a public hearing at 6:30 p.m., Monday, Oct. 9, on a resolution to create a special tax district for residents of the proposed Granary at Draper Farm development.
Following the hearing at Milton library, council will debate and possibly vote on the resolution.
The creation of the special development district for the Granary would happen in two steps. First, council would pass a resolution providing for the introduction of an ordinance to create the district. Second, council would debate the ordinance itself, which would lay out parameters of how the district would work.
An ordinance would set a special tax for Granary residents, and the proceeds from that tax would be put into a special fund that would fund public infrastructure improvements within and potentially outside of the Granary. The special tax does not preclude developer Convergence Communities from paying town-required performance bonds, which set aside money to ensure roads and other infrastructure are completed before turning over maintenance of that infrastructure to the town.
The Granary at Draper Farms is proposed as a 1,350-unit development on a 450-acre parcel on Sand Hill and Gravel Hill roads. The buildout would take place over 20 years in 10 sections, with the preliminary site plan for the first phase already approved by the planning and zoning commission. The development would be mainly residential, but some small commercial development such as a small-batch brewery is planned.
The structure of the district is laid out in the ordinance. The town would agree to issue special obligation bonds – bonds that Convergence officials have said are backed by Granary residents, not the town of Milton – up to $42 million. The developer would then use that money to pay for infrastructure projects benefiting the public, which could include streets, sidewalks, and parks and recreation facilities. Convergence has pledged to make up to 55 acres of the parcel into public open space, create a biking and walking trail that would connect to the town’s Rails to Trails, and install an amphitheater for public use within the development.
Convergence has also agreed to pay the town $5 million raised by the special development district to do other infrastructure projects. However, that money comes with strings attached: First, only projects built inside the Granary that benefit its residents would be covered 100%. Projects outside the Granary or located in the Granary but benefiting people outside the development would be covered at 33%, with the town required to cover the remaining costs. The town would also get the money in three tranches, with the first expected to come sometime in 2024, when the project is expected to break ground. Two remaining tranches would be released in 2030 and 2035. The town would have three years to spend the money, or it would revert back to Convergence.
Should council approve the ordinance, the special tax would be imposed, levied and collected starting with the 2024-25 taxable year. The special tax funds would be administered by a third party selected by the town. The special taxes would be collected at the same time as property taxes. Residents would have the option to prepay the special tax. According to the ordinance, the bonds would be sold at a negotiated, limited public offering.
