Colorado Springs city councilmembers reversed their decision to annex 3,200 acres adjacent to Fountain. 

The council voted 5 to 4 to reverse a vote it took Aug. 1 to accept the annexation. La Plata Communities was pitching the annexation the company envisioned as a subdivision called Amara that could be home to 9,500 homes plus millions of square feet of retail space, schools, parks and public facilities over the next 25 years. 

“I am sad. I think it’s a good project. I just think it’s too soon with the other infrastructure projects we have in front of us,” Council President Randy Helms said.

Councilmembers Lynette Crow-Iverson, Dave Donelson, Nancy Henjum and Mike O’Malley also opposed the annexation along with Helms. Donelson changed his vote from Aug. 1, saying he believed his vote Tuesday was in line with citizens’ views.   

The council voted to change its decision after hearing serious questions from business owners facing high costs. They also heard concerns from the leaders of Manitou Springs and Fountain and farmers in the lower Arkansas Valley.

Councilman David Leinweber was among those who supported it because of the large number of companies bringing jobs to the community.

“Our city has said ‘OK’ to these companies and they are expecting to come. … Now it’s time for us to deliver a product that they want,” he said, referring to homes. 

The council heard support for the project from community members, including two former City Councilmen Tom Strand and Bill Murray. Supporters backed the expansion because it will supply housing particularly to the military community. 

La Plata Communities was also promising a minimum of 7% of the homes will be officially affordable, said Mike Ruebenson, chief operating officer. 

“It’s something we are voluntarily doing because we recognize the need,” he said. The company also expected to build a facility for childcare.

Residents and businesses were expected to help pay for the expansion on their monthly bills. The cost was expected to be about $8.30 a month the first year and then vary after that. Businesses and large customers, such as school districts, would have paid far more. 

Jack Damioli, president and CEO of The Broadmoor, raised concerns that his business will pay more than $1 million to support the annexation in the first 11 years. The Denver-based Anschutz Corp. bought The Broadmoor in 2011. The Gazette is owned by the Anschutz Corp.’s Clarity Media Group.

“Why should the business people and the ratepayers pay for the development?” Damioli asked. 

Ruebenson argued that costs are necessary, in part, because of all the other costs Utilities is facing including infrastructure to serve eastern Colorado Springs and upgrades across its system. 

Utilities Chief Financial Officer Tristan Gearhart said the organization is managing a $3.7 billion capital improvement plan including supporting growth in Banning Lewis Ranch and annexations are not budgeted making the new fees necessary. The new fee would have helped cash fund utilities for Amara and keep Utilities’ debt lower. 

Manitou Springs Mayor John Graham and Councilwoman Nancy Fortune raised concerned that their community will pay for an expansion to Colorado Springs that will not benefit their residents. 

Graham said Utilities told him that Manitou Springs will pay $315,000 for Amara, an estimate that does include what residents will pay. 

Fortune and Graham both believed that developers covered the full cost of development and do not want their residents to take on the costs of another community’s growth.

“I respectfully ask … remove that burden from our residents now and in the future,” Fortune said. 

Fountain’s Deputy City Manager Todd Evans told the council the annexation agreement includes numerous references to Fountain’s responsibilities and the town did not agree to those conditions. 

“We don’t consider any of that to be legal,” he said. 

Travis Easton, deputy chief of staff, said that details would be worked out with Fountain in the future.

Disagreeing, Evans said many of the details have already been outlined in the annexation agreement and Fountain was not consulted. 

Farmers from the lower Arkansas Valley pointed out the main source for water for Colorado Springs to grow must be the Arkansas River and growth pressure will take 5,000 to 6,000 acres of land out of production. 

“At some point, food security will have to become a priority,” said Jack Goble, district engineer at Lower Arkansas Valley Water Conservancy District.

Tim Hatton was among the supporters who called the subdivision necessary for the community and would multiply in a positive way. 

“I don’t think growth is a dirty word,” he said.