In an article posted to the Broomfield Enterprise website on May 14th, it was written that “Broomfield City Council on Tuesday unanimously approved the first reading of a six-month oil and gas moratorium aimed at allowing the city time to update local ordinances in light of the newly passed state law that gives municipalities more control.
The moratorium will halt until Nov. 14 the processing or approval of applications for use by special review or operator agreements to allow oil and gas operations in Broomfield.”
The full article can be found by clicking here.
Oil and Gas development in Broomfield has been a hot button topic for several years. New state legislation included in Senate Bill 19-181 makes protecting public health and safety and the environment a priority when considering oil and gas projects. The Colorado Oil and Gas Conservation Commission, the main regulatory body, would no longer be charged with fostering development.
It also allows cities and counties to regulate oil and gas development under their planning and land-use powers, something communities have requested as drilling has increased in and near the growing cities and counties north and east of Denver.
The legislation and newly announced moratorium is sure to ignite the debate surrounding oil and gas development in Broomfield once again.
The question is how will oil and gas operations impact home prices in Broomfield? In 2017 prior to a major ballot initiative surrounding oil and gas development near Anthem Highlands and Anthem Ranch, I would be asked this question from 75-80% of my clients and guests of open houses. It is very difficult to anticipate where home prices will go based simply on oil and gas. There are so many other factors that impact the housing market including inventory and interest rates that I believe it is irresponsible to try and give any definitive answer to this question. Instead, I ask questions to my clients about how they personally feel about living near an oil and gas site as well as provide some historical context of neighborhoods nearby that have gone through this in the past.The Vista Ridge community in Erie has been surrounded by oil and gas operations for years. Below are tables showing the average sales and median sales prices for homes in the Vista Ridge neighborhood over the past 10 years.
Homes in the Vista Ridge Community had an average appreciation rate over the past 10 years of 6.99%. When you compare this to the Anthem Highlands neighborhood across Hwy 7 that did not have any major oil and gas operations during this same time period, and an average appreciation rate of 7.14%, it can be seen that recent oil and gas production in Erie and Broomfield have not impacted home values as much as people may think.
Also consider this is just one example of the many across Northern Colorado. I frequently use this example simply because it is the most relatable for many of the clients I speak with.
Ultimately it comes down to personal preference and an individual or families willingness to live near these operations.
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