The property at 4th and Union, known as the “horseshoe property”, formerly known as the Federal Center, is part of the Green Mountain Water and Sanitation District (GMWSD). As such, GMWSD must provide service to the property. GMWSD cannot legally stop development. However, according to District Rules and Regulations, GMWSD can require studies to make sure service is safe for residents and staff. GMWSD has identified several possible tracks to approve this development, which are outlined below. 

Normal Track

Under general development conditions, a developer will build its infrastructure in accordance with the District’s engineering and construction standards, as outlined in the Rules and Regulations.  Upon construction and passing inspection, that infrastructure will be conveyed to and accepted by the District.  The infrastructure becomes the property and responsibility of the District.  In this case, the environmental conditions of the site warrant greater oversight and investigation than the normal engineering and construction standards alone.  The District has prepared a draft development agreement outlining the inspection, investigation, testing, and reporting obligations expected of the Developer as conditions of approval for the development.  Following compliance with these obligations, the District would accept the infrastructure and become responsible for maintaining and operating it.  A draft of this proposed development agreement has been provided for review.  In the absence of an agreement otherwise, this track is standard.

• PRO: GMWSD has oversight.
• CON: GMWSD has ongoing maintenance, operations, and liability obligations.

Alternative Track

The District could agree with the developer not to accept the water and sanitary infrastructure and instead sell water and sanitary outflow capacity to the development as a unit (operating essentially as a mini-master meter relationship).  The developer or its successor entity would own, operate, and maintain the infrastructure, bill its customers according to its own rules, and pay the District for the water consumed and sewage produced within its boundaries.  The District would impose some engineering and construction requirements on the development to ensure the safety and integrity of the District’s systems and in compliance with Denver Water and Metro Wastewater Recovery requirements.  This would require an agreement for service with the developer and could be complicated by the potential for exclusion or the establishment of an overlapping service district, which complications are beyond the scope of this summary. 

• PRO: GMWSD has no ongoing maintenance, operations, or liability obligations.
• CON: GMWSD has no oversight.

Hybrid Alternative

The District could agree with the developer not to accept the water and sanitary infrastructure and instead sell water and sanitary outflow capacity to the development as a unit, while also imposing greater oversight than the normal engineering and construction standards alone (such inspection, investigation, testing, and reporting obligations being conditions of service).  Following compliance with these obligations, the developer or its successor entity would own, operate, and maintain the infrastructure, bill its customers according to its own rules, and pay the District for the water consumed and sewage produced within its boundaries, according to whatever agreement is reached with the District for service.

• PRO: GMWSD has no ongoing maintenance, operations, and liability obligations and has oversight.
• CON: Not feasible.