FAQs
- Best-case scenario: If the entertainment district project performs as expected, these revenue sources will cover all payments, without tapping into the City’s general fund or increasing taxes.
- Worst-case scenario: If revenues fall short (for example, if the PIFs underdeliver), the City may need to step in to replenish reserve funds or cover annual lease payment gaps. This is a risk the City is actively managing through a phased development approach and contingency planning.
- Catalyst, the city-owned project and entertainment district, is about $832 million that will go toward building the arena, three ice rinks, a hotel, and a water park. The cost breakdown for the entertainment district facilities is as follows:
- Around $200 million will cover the cost of borrowing money (like interest) and building roads, water lines, and sewer systems to support not only the Catalyst project, but the future growth in West Greeley. For the additional costs, the money will come from a nonprofit organization (a 501c3), the General Improvement District (GID), and Enterprise Funds. These groups will pay the debt using money made by the project—like profits from the facilities, fees and taxes generated in the project area.
Certificates of Participation (COPs): The City uses this to borrow money without raising taxes. The City temporarily leases buildings (like City Hall) to get a loan, then makes payments over time using project revenue. Once it’s paid off, the City keeps full ownership. Greeley has used this before for things like fire stations and City Center South.
Nonprofit Bond Financing (501(c)(3)): A nonprofit (not the City) will borrow money to build the project through bonds. The nonprofit manages the project and pays off the bonds. Once the bonds are repaid, the nonprofit will transfer ownership of the entertainment district back to the City. The City promises to help only if the project doesn’t earn enough money (called a “moral obligation”). To provide extra security, the City also makes an annual economic development payment from its general fund. This is a temporary investment. As the project begins to earn more than it spends, the nonprofit repays the City each year until the full amount is returned.
General Improvement District (GID): This is a special tax area around the project. Only property owners in this area pay the tax, and it helps pay for things like roads, sidewalks, water, and sewer. It doesn’t raise taxes for the whole city.
Enterprise Funds: These are special city funds used for water, wastewater, and stormwater. The fees paid by users help cover those parts of the project.
2025: The city issues $115 million in COPs to start planning and design
2026: A nonprofit issues about $832 million in bonds for construction, the COPs are repaid.
2038: Revenue is expected to exceed debt and begin paying off the debt principal
2060s: All bonds are expected to be paid off, and the city takes full ownership of the entertainment district
Local sales tax
Hotel lodging tax
Ticket surcharges
Public Improvement Fees (PIFs) from retail and restaurants
Financial stress tests will be conducted to plan for possible scenarios, such as lower attendance or delays in development.
Ongoing market monitoring will be done in partnership with financial advisors to track trends and adjust as needed.
Regular evaluations of fees and tax rates will help ensure they remain competitive and do not discourage new development.
Why didn’t people get to vote on the project?
Just like many other Colorado cities, Greeley is using standard financial tools that may be approved by ordinance—not requiring a vote. It’s secure, transparent, and governed by state law. In Colorado, cities like Greeley can approve certain projects through a public process called an ordinance, instead of a citywide vote. Greeley’s City Council passed Ordinance No. 15, 2025 on May 6, after months of public meetings and careful planning.
Over the past year, the city and its partner held more than 25 meetings with local groups, including business owners, sports teams, housing advocates, and neighbors. They also hosted five big community meetings to hear from the public and improve the project based on that feedback.
Right now, a petition is going around, but it doesn’t stop the project while that process continues.
Who pays for this project?
The project is mostly being paid for the by the people who use it, which is the area called the entertainment district. That means visitors and community members who go to the arena, hotel, water park, ice rinks, restaurants, and stores in the West Greeley area.
Revenue comes from things like ticket sales, hotel and sales taxes, special fees, and property taxes—all from within the project area. This helps make sure the people enjoying the area help pay for it.
Is the West Greeley Project going to cost $1 billion? How much will it really cost?
Yes, the full cost is about $1.1 billion, but it is not all paid by the city. Here’s the breakdown:
| USES | $ Millions |
| Hotel and Waterpark | $289.3 |
| Arena | $246.3 |
| Ice Center | $96.4 |
| Raw Water Dedication | $9.0 |
| Additional Proceeds | -$4.6 |
| Launch Expense & Working Capital | $8.0 |
| Operating Reserve 90 Days | $10.8 |
| Operating Ramp-up Reserve Fund | $5.0 |
| Capitalized Interest | $124.4 |
| Debt Service Reserve Fund | $33.2 |
| Total Cost of Issuance Estimate | $14.2 |
| TOTAL USES | $832.0 |
How is the construction of the project being paid for?
The project is being paid for using four commonly used financial tools:
This plan helps make sure the project pays for itself and doesn’t raise taxes.
How are COPs different from traditional loans and bonds?
Certificates of Participation (COPs) are a lease-financing tool used by public entities, such as cities or school districts, to fund large capital projects without needing voter approval for traditional bonds. Instead of borrowing money like a regular loan, the city lets investors buy shares in a lease. The city then uses the money to build the project and pays the investors back over time—like paying rent.
Will this raise my taxes?
No. This project will not raise your taxes.
The city is using proven financial tools to pay for the project without needing new tax money.
In 2025, the city will use Certificates of Participation (COPs) to fund early costs – this is a common way to borrow money without raising taxes.
In 2026, a nonprofit partner will take over the long-term funding by issuing bonds. Once that happens, The city’s COPs are paid off, and city buildings used as collateral are fully returned to the City.
The entertainment district is expected to pay for itself over time through sales taxes, tourism, and business activity. If it performs as planned, the city will eventually own major parts of the entertainment district – like the arena, water park, hotel, and ice rink – without increasing taxes for residents.
What financial benefit will this bring to the city?
It’s projected that by 2065, after covering the cost of city services like police, fire, and maintenance, the combined entertainment and Cascadia districts are projected to generate $13.5 million in net revenue for the City each year, adding up to more than $360 million over time. These revenues can support future community investments and help strengthen Greeley’s long-term financial health.
Will this project take money away from downtown or east Greeley projects?
No. In fact, the city will likely look at similar financing models for other major projects.
The entertainment district will be built in phases, so it can grow over time based on performance. The city will make planned early payments to help get it started, but these won’t take funding away from downtown or east Greeley.
Even in a slower year, protections are in place to keep other city investments moving forward. Greeley is committed to supporting growth in all parts of the city.
How will the project’s debt be repaid – and when?
The debt will be paid back over several decades, using money generated by the project from sales taxes, hotel stays, and business activity.
Here’s a basic timeline:
While it takes time to see full benefits, hotels, housing, retail, and events will help generate revenue early and support the long-term success of both the project and Greeley as a whole.
Is there a contingency plan in place for this project?
Yes, there is a contingency plan in place. The project’s financial strategy is to bring in revenue from a variety of sources—including retail, restaurants, commercial activity, Public Improvement Fees (PIFs), long-term leases, sponsorships, and possible state-level revenue-sharing. By diversifying these revenue sources, the plan allows stronger areas to help offset weaker ones in any given year. This helps ensure debt payments can still be made without requiring the City to use its own funds.
Will the project increase demand for water?
The project is water-efficient and will only need 235 acre-feet (AF) of water, which is about 1% of the City’s yearly water use. To visualize, an acre-foot is enough water to cover a football field one foot deep.
The city uses about 22,000 AF of water per year on average but can supply up to 48,000 AF per year. Plus, past projects have saved more water than this new development will use.
Is the city’s current water supply enough to meet forecasted growth?
The City of Greeley can support the Cascadia project and other nearby growth with its current water supplies. The city uses about 22,000 acre-feet (AF) of water per year on average but can supply up to 48,000 AF per year. To visualize, an acre-foot is enough water to cover a football field one foot deep.
The project lets the city use water resources bought in advance, enabling it to spread out infrastructure costs among more users. This lowers the financial impact on current residents.
You may also have heard about Greeley’s Terry Ranch Project, which is a long-term plan to add drought-proof water storage to the city’s water portfolio. It's being developed in phases to meet needs and control costs, making it more cost-effective than building a large reservoir.
Will this project impact how Greeley Water is managed?
Greeley Water Enterprise, formed in 1958, makes sure the community has well-planned and operated water utilities. It is a not-for-profit service that follows City Charter guidelines and meets all regulations. The city's water utility will not be affected by the Cascadia project or other growth. Greeley Water remains publicly owned and managed for all residents and businesses.
Are there impacts to City water rights?
New developments like Cascadia must buy into the water supply and utility infrastructure, paying their share of the costs. The City’s Water Enterprise will maintain its strict ownership and control of all water rights.
Does the West Greeley project accelerate the timeline for Terry Ranch?
The growth in West Greeley, including Cascadia, won't require the use of Terry Ranch groundwater. The city's surface water supplies provide more than enough to meet the new demands. The Terry Ranch project is a deep aquifer water supply and storage that’s protected from surface contamination risks, and will be treated to meet all standards when needed.
Who pays for the water on this project?
The water needed for the City's Catalyst entertainment district, about 235 acre-feet per year, must be bought by the 501(c)3 developer and paid to the City’s water utilities, just like other fees. All new developments, including those in West Greeley, must purchase raw water and follow city codes and water use efficiency rules.
Will I pay for this project through my water or sewer bills?
The City may use its Utility Enterprises to fund infrastructure upgrades that improve the overall system—such as increasing capacity or reliability for all users. This is consistent with how the City has historically funded large-scale improvements. These upgrades can help support new development, which in turn spreads future utility costs across more users and helps keep long-term rate increases lower.
However, any utility improvements that only benefit the new development—like water or sewer lines serving just that area—will be paid for by those who directly benefit, such as the new businesses or residents.
How will this development impact property values?
Property values may increase, but it depends on market conditions. The City plans to use a new General Improvement District (GID) to fund infrastructure, operations, and maintenance that support both the project and surrounding area. These improvements are expected to drive economic activity, improve connectivity, and attract more visitors and residents—factors that can contribute to rising property values.
Current projections estimate residential property values in the area could grow by 6% every two years, and commercial property values by 4%, assuming strong economic activity and full buildout. However, these figures may change based on future market trends.
Given school district boundaries, does this development benefit Windsor schools?
Yes, however, there are four school districts that currently provide services to students in the City of Greeley (Greeley School District 6, Windsor School District RE-4, Johnstown-Milliken School District RE-5J, and the Eaton School District RE-2). The project area is located within the Windsor School District (RE-4), one of four school districts that serve students in Greeley. As a result, a portion of property tax revenue from the development will go to Windsor schools.
However, the majority of new revenue generated by the project will benefit the City of Greeley. This includes:
These revenues help fund essential city services such as roads, parks, and public safety—benefiting the entire Greeley community.
How is the developer being paid?
The project uses a fee developer model. This means the developer is paid a set fee to oversee design and construction, but they do not own the project.
They are compensated based on completed work and key project milestones—similar to how a contractor is paid for services. This model allows the City to keep full ownership and control of the project while still benefiting from the developer’s expertise in managing large, complex developments.
What steps will the city take to ensure financial stability and adapt to market changes in the entertainment district?
No development is without risk, but the City is taking proactive steps to manage uncertainty and maintain financial stability:
These strategies are designed to help the City respond effectively to changing economic conditions and protect long-term financial health.