FAQs

The entertainment district project will pay for itself primarily through revenue generated within the West Greeley Project Area.

The debt will be paid by revenue generated by the community members and visitors who use the arena, hotel, water park, and ice sheets and those who shop, dine, or live within primarily the boundaries of the West Greeley Project Area. These sources of revenue include ticket sales, lodging and sales taxes, public improvement fees (PIFs), assessments, property tax and other revenues tied directly to project activity, ensuring those who use the amenities are the ones contributing to the cost.

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.

The project is funded through four main funding mechanisms: Certificates of Participation (COPs), Nonprofit 501(c)(3) Conduit Financing, a General Improvement District (GID), and Enterprise Funds.

• Certificate of Participation is a financing instrument to fund capital projects. Investors purchase shares in a lease agreement, so this is a form of lease-backed financing. Here's how they work:
  • The City temporarily leases public buildings (like City Hall) to a financial institution to secure a loan.
  • The financial institution then leases the public buildings back to the City allowing the City to keep using the buildings as normal.
  • Over time, the City makes lease payments using projected revenues––not new taxes.
  • The City expects to roll the COPs obligation into long-term bond financing by the 501(c)(3) before any lease payments are due.
  • Once the loan is paid off, the leases end and the City keeps full ownership of the public buildings.
  • This tool has been used for many other projects in Greeley, including our local fire stations, Family FunPlex, Union Colony Civic Center, and police headquarters.

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 directly borrowing money, the city sells shares of the lease revenue to investors.

• Nonprofit 501(c)(3) Long-term Bond Financing allows bonds to be issued by a nonprofit—not the City—to finance the construction. The nonprofit will lease the entertainment district land from the City, issue the debt, manage the project, and operate the facility. Once the bonds are repaid, the nonprofit will transfer ownership of the entertainment district back to the City. The City is not the borrower, however, it has chosen to provide a moral obligation pledge to give the market confidence and help secure favorable financing terms. 
  • Moral obligation on debt is a commitment on behalf of the City to replenish reserve funds or cover annual lease payment gaps only if project revenues fall short. This could require appropriating funds from the City’s General Fund.   
  • Annual economic development payment adds additional security by providing a revenue stream that is not dependent on performance of the revenue streams dedicated to paying off the long-term bonds.
    • It comes from the City’s general fund but is treated as a temporary front-loaded investment. 
    • Once the project generates more revenue than it spends, the nonprofit repays the City. 
    • These repayments are rolled over annually until the full amount is reimbursed. 
• General Improvement District (GID) is a local taxing entity created to fund public improvements like water, wastewater, roads, sidewalks, and landscaping, within the development area. 
  • Only properties within the GID boundaries pay this tax. 
  • No citywide tax increase occurs. 
  • The GID helps ensure that new growth pays for itself. 
• Enterprise Fund is an entity used in government for activities that provide goods or services to the public for a fee; in this case, it pertains to water and wastewater infrastructure.

The current plan avoids new taxes. This project is intended to be self-funding through the financial structure created.  

In 2025, the City will use Certificates of Participation (COPs) to cover about $115 million in early project costs. These are a way for the City to secure funding without raising taxes.  

In 2026, bonds totaling about $832 million will be issued by a 501(c)(3) non-profit entity to fund the phased development of the entertainment district. Once the 501(c)(3) non-profit entity issues the long-term bonds, the City’s COP obligation is paid off, and City facilities leased as collateral under the COPs are released to the City.  

If the entertainment district performs as projected, it could generate revenue from sales taxes, tourism, and business activity, which will be used to pay off the bonds. Eventually, the City would own major parts of the entertainment district, including the arena, hotel, water park, and sheet of ice, without adding new tax burdens on residents. 

The entertainment district project is anticipated to stimulate economic activity in Greeley, though actual impacts will depend on future market performance and development timelines. 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 significant revenue for the City each year. These revenues can support future community investments and help strengthen Greeley’s long-term financial health.

Financial safeguards have been put in place for this project with a goal of minimizing risk through a phased development approach. The financial model for this project includes provisions for the City to make initial economic development payments in the early years until the project stabilizes. This approach ensures that the project is sustainably managed and positioned for long-term success. While acknowledging the possibility of needing additional financial support in a low-performing year, the financial safeguards in place are intended to minimize impacts on other projects, including downtown and east Greeley investments. The City is committed to managing these projects prudently to ensure citywide growth and development.

The West Greeley and downtown projects use two different funding models. West Greeley is funded primarily through revenues generated by the project itself, like sales taxes, lodging taxes, property taxes, and public improvement fees (PIFs). Alternatively, the downtown project is largely supported by general tax-funded investments in infrastructure and public facilities, such as a new civic campus that will include the future City Hall. Because West Greeley is designed to pay for itself, it does not take away from funding allocated for the downtown area. In fact, over time, revenues raised through growth in West Greeley may strengthen the City’s overall financial capacity, potentially benefiting future downtown efforts

The repayment period spans several decades, but according to current projections, by 2038 the City anticipates revenue from sales taxes and other project-related activities to exceed debt service and reserve funding requirements. 

• 2025: COPs issued to fund pre-development work ($115M) 
• 2026: 501(c)(3) nonprofit entity issues long-term bonds for construction (approx. $832M) 
• 2038: Projected date where annual revenue exceeds all debt and reserve requirements 
• 2060s: Projected date for full repayment of the long-term bonds and ownership of the entertainment district transfers back to the City 

Although large economic projects take time to deliver their full benefits, this development aims to spark early activity through hotels, housing, retail, and events. These features are expected to create revenue that can help offset some of the City’s initial costs and support long-term financial stability.

The financial strategy includes exploring ways to bring in more revenue, such as adding more retail, restaurants, and commercial activity, as well as using Public Improvement Fees (PIFs), long-term leases, sponsorships, and possible state-level revenue-sharing. The goal is to diversify revenue sources so if one area underperforms in a given year, others can help make up the difference. This helps ensure there is enough revenue to cover debt payments, so the City does not need to commit financial resources.

Utility system upgrades that benefit all users across the City—such as increased system capacity or reliability—may be funded through the City’s Utility Enterprises, consistent with our long-standing approach to citywide infrastructure. These investments can help attract development that ultimately spreads future costs across more users, helping to moderate long-term rate increases. However, utility improvements that exclusively serve private development will be repaid by those who benefit from the project, such as new businesses or residents in the area. These costs are not intended to be passed on to existing customers.

This depends on market conditions. As currently modeled, the City will leverage a newly created General Improvement District (GID) to finance infrastructure, operating costs, and maintenance that benefit the project and surrounding area. This infrastructure will not only stimulate immediate economic activity but also create long-term financial stability. The connectedness and accessibility of the project is intended to attract more visitors and residents, which may lead to increased property values for owners, and higher tax revenues for the City. Tentatively, market value is projected to grow 6% every two years for residential and 4% for commercial properties within the project area assuming sustained economic activity and full buildout. These projections are subject to change based on market conditions.

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, Johnston-Milliken School District RE-5J, and the Eaton School District RE-2). The area that will be developed in this project is located in the Windsor school district. However, the majority of new revenue goes directly to Greeley through: 

• Local sales tax 
• Hotel lodging tax 
• Ticket surcharges 
• Public Improvement Fees (PIFs) from retail and restaurants 

These revenues fund Greeley’s roads, parks, police, and more—benefiting the entire City. 

The project uses a fee developer model, meaning the developer is paid a set fee to manage the design and construction. They do not own the project and are compensated based on completed work and key milestones, similar to how a contractor is paid for services. This approach allows the City to retain full control of the project while benefiting from the developer’s experience in delivering large, complex projects.

No development is risk-free, but the City is doing its best to limit that risk. The City will conduct financial stress tests to anticipate potential revenue fluctuations and prepare for various economic scenarios, such as lower attendance and development delays. Staff will also work closely with financial advisors to monitor market trends continuously. Finally, the City will carry out detailed evaluations of fees and tax rates within these districts to ensure that the rates are not inhibiting development. This proactive strategy will allow the city to effectively adapt and adjust to changing economic conditions.