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HomeMy WebLinkAbout20090405.tiffBOARD OF COUNTY COMMISSIONERS OF WELD COUNTY, COLORADO IN RE: APPEAL OF EXCLUSION OF CERTAIN REAL PROPERTY OWNED BY RM, LIMITED LIABILITY COMPANY JEFF HARE, MICK WELCH, ROD GANTENBEIN AND ANGIE POWELL, APPELLANTS v. BEEBE DRAW FARMS METROPOLITAN DISTRICT NO. 1. and REI, LIMITED LIABILITY COMPANY, APPELLEES BRIEF OF BEEBE DRAW FARMS METROPOLITAN DISTRICT NO. 1 Paul R. Cockrel Collins Cockrel & Cole 390 Union Boulevard, Suite 400 Denver, Colorado 80228-1556 Phone: 303-986-1551 Counsel for Beebe Draw Farms Metropolitan District No. 1 (00I53828.DOC / 2) 2009-0405 TABLE OF CONTENTS I. SUMMARY OF DISTRICT NO. 1'S RESPONSE 1 II. STATEMENT OF FACTS 1 III. COMPLIANCE WITH SERVICE PLAN 3 A. Board Has Full Discretion to Process Exclusions and such Adjustment of Boundaries Is Not a Material Modification of Service Plan. 3 B. Amended IGA Is Not a Material Modification of Service Plan. 4 C. Dual District Structure Provides For a Balancing of Interests 6 D. Equal Taxation6 E. Issue of Compliance with Service Plan Is Ancillary to this Appeal of Exclusion7 IV. APPROVAL OF PETITION FOR EXCLUSION 7 A. Petition Was in Compliance with Statutory Requirements and Was Not Defective. 7 B. Appellants Failed to Provide Any Objection to Statutory Factors and Board's Findings Are Supported by Record. 8 C. Record Supports Board's Findings That Exclusion of REI Property Satisfied All Statutory Factors under §32-1-501(3), C.R.S9 1. Exclusion of REI property is in best interests of REI property, District No. 1 and Weld County. 10 2. Relative cost and benefit to REI property from provision of District No. 1's services. 10 3. Ability of District No. 1 to provide economical and sufficient service to both REI property and all other properties within District No. 1. 11 4. Whether District No. 1 is able to provide services at a reasonable cost compared with costs that would be imposed by other entities in surrounding area. 11 5. Effect of denying Petition on employment and other economic conditions in District No. 1 and surrounding area. 11 6. Economic impacts on region and on District No. 1, surrounding area and State as a whole if Petition is denied12 7. Whether an economically feasible alternative service may be available. 12 {00153828.DOC / 2} 1 8. Additional cost to be levied on other property within District No. 112 D. Role of Board of County Commissioners 12 (00153828.DOC / 2) 2 I. SUMMARY OF DISTRICT NO. 1'S RESPONSE The approval of the Petition to Exclude Property ("Petition") owned by REI, Limited Liability Company ("REI" or "Petitioner") by the Board of Directors ("Board") of Beebe Draw Farms Metropolitan District No. 1 ("District No. 1") complied with all statutory requirements. No relevant evidence was presented in opposition to the exclusion of the property. Furthermore, the Record of Proceedings ("Record") confirms that the Board's decision was appropriate in light of the evidence and information before the Board at the time of its decision. In addition, the Board's approval of the exclusion and its simultaneous approval of the Amended and Restated Intergovernmental Agreement ("Amended IGA") between District No. 1 and Beebe Draw Farms Metropolitan District No. 2 ("District No. 2" and collectively, the "Districts" or separately, a "District") were in full compliance with the Service Plan. The Board believes that the exclusion and Amended IGA will enhance the services of both Districts in full conformance with the Service Plan. After its own review of the record of proceedings ("Record"), the Board of County Commissioners of Weld County ("BOCC") should come to the same conclusion and approve the exclusion of the REI property from District. No. 1. II. STATEMENT OF FACTS Appellants, four individuals out of all residents of District No. 1, appeal the Board's decision to exclude certain property owned by REI, comprising of approximately 2,194 acres, none of which has been platted. All plated property owned by REI is located in Filing 1, is unaffected by the exclusion, and remains within the boundaries of District No. 1. In processing the Petition, the Board complied with all statutory requirements by giving proper notice to residents, holding a public hearing, and evaluating the Petition in light of the evidence presented to the Board. §32-1-501, et seq., C.R.S. A public hearing was held on October 20, 2008, the public meeting was continued for decision on November 3, 2008 at the District community center. Notices, including a copy of the Petition and agenda items, were posted at least three days prior to each meeting in three public locations within the District, and such notice was filed with the Weld County Clerk and Recorder. (See "Notice and Agenda," Record of Proceedings, October 20`h, item 1). Notice of the public hearing was also published in the Greeley Tribune on October 14, 2008. (See "Proof of Publication," Record of Proceedings, October 20th, item 2). All objectors were required to submit objections in writing to the Board by noon on October 20, 2008. (See "Proof of Publication"). No written objections were timely filed with District No. 1. Many residents attended the public hearing and the continuation of the public meeting at which the Board made its final determination on the exclusion. At the public hearing on October 20th, Petitioner presented a power point presentation addressing its reasons for requesting the exclusion, as well as how the (00153828.DOC / 2) 1 exclusion complied with all requisite statutory factors. (See "REI Presentation," Record of Proceedings, October 20th, item 5). In conjunction with the Petition, REI requested the Board to consider amending the Intergovernmental Agreement dated August 8, 2001 ("IGA") between District No. 1 and District No. 2 to address any issues resulting from the exclusion. REI believed that a revision of the IGA would better clarify funding priorities and ensure uniform taxation within the Districts. Residents were given full opportunity to participate during the public comment period, including questioning of REI's representatives and the District's counsel. Numerous questions were asked and answered, but only one statement of concern was submitted at the hearing, and no evidence in opposition to the exclusion was presented. District counsel discussed various revisions that should be made to the IGA, if the Board were to decide to grant the Petition. The Board deferred its final decision on the Petition to a subsequent meeting in order to allow for revision of the IGA. At the public meeting on November 3rd, the Board reviewed the proposed terms of the Amended IGA. In addition, REI submitted a letter to the Board requesting modification of the legal description set forth in the Petition. (See "Directors' Parcel Letter", Record of Proceedings, November 3rd, item 4). More specifically, REI requested that a 39 -acre parcel ("Directors' Parcel") be excepted from the legal description attached to the Petition. The modification was requested pursuant to the Board's authority under §32-1-501(4)(A)(I), C.R.S., because additional review of title work had revealed that the Directors' Parcel was not entirely owned by REI. After consideration of the Petition, the Petitioner's presentation, and the residents' questions, as well as advice from its legal counsel and other evidence in the Record, the Board (i) unanimously adopted a Resolution approving the Amended IGA (see "Resolution," Record of Proceedings, November 3rd, item 11) and (ii) also unanimously approved the Petition for Exclusion of the REI property except for the Directors' Parcel and executed the Order for Exclusion by the Board ("Board Order"). (See, "Board Order for Exclusion," Record of Proceedings, November 3rd, item 13). Approval of the exclusion was conditioned on submittal of title work confirming REI's ownership of the excluded property, which was subsequently provided. The decision was made by the independent directors on the Board, including two residents. One director, who is affiliated with REI, abstained from participating in both the public hearing as well as the Board's final actions. Pursuant to §32-1-501(4)(b), C.R.S., the District Court for Weld County approved the Board Order excluding the REI property from District No. 1 on December 2, 2008 and the exclusion became effective on January 1, 2009. (See "Court Order of Exclusion," Record of Proceedings, Supporting Documents, item 6). In accordance with its commitment to the Board, REI and the individual owners of the Directors' Parcel submitted a Petition for Exclusion of the Directors' Parcel ("Directors' Parcel Petition") on December 23, 2008. (See, "Petition for Exclusion of (00153828.DOC / 2) 2 Directors' Parcel," Record of Proceedings, Supporting Documents, item 7). A public hearing on the Directors' Parcel Petition is scheduled for February 9, 2009. III. COMPLIANCE WITH SERVICE PLAN Appellants wrongfully assert that the exclusion of the REI property and the Amended IGA are not in compliance with the Consolidated Service Plan ("Service Plan") as previously approved by the BOCC in May 1999 and constitute material modifications of the Service Plan. Under both the provisions of the Service Plan and the Special District Act, the exclusion of the REI property does not constitute a material modification of the Service Plan, and the Amended IGA is also in full compliance with the Service Plan. A. Board Has Full Discretion to Process Exclusions and such Adjustment of Boundaries Is Not a Material Modification of Service Plan. The Service Plan gives the Board full authority to change the boundaries of the District by approving inclusions and exclusions without limitation. The Service Plan states that the Board has "complete discretion to approve inclusions or exclusions without processing an amendment of this Service Plan." (Service Plan, p. 10-11, § I(3)). As such, the Service Plan fully contemplates and allows for the exclusion of any property, regardless of size, from either District. The boundaries of the Districts were never intended to be static. Appellants argue that "huge" exclusions are different somehow, which demonstrates the weakness of their argument. If an exclusion of property had some significant impact on the Districts' operations, then a compliance issue might be presented. But Appellants have not shown any negative effect of the exclusion, much less any significant negative effect. This issue is also addressed in Part IV hereof. And the BOCC must keep in mind that because the Districts have overlapping boundaries with respect to the exclusion area, all of the REI property excluded from District No. 1 is still in District No. 2. The specific intent of the Service Plan is to govern the interrelationship between the Districts by dividing the provision of services and facilities between the Districts and ensuring that residents of both Districts receive the same services and facilities. (Service Plan, p. 6, §I(A)(1)). District No. 2 is to provide all services and facilities to all property within the Districts. This was the requirement before the exclusion of the REI property and the approval of the Amended IGA and remains so today. Nothing has changed in that regard. As such, the specific size of each District is truly insignificant to the implementation of the Service Plan. For many purposes, the Districts function as consolidated entities in accordance with the terms of the Amended IGA as provided in the Service Plan. Nowhere does the Service Plan limit the size of property that may be excluded. The acreage of an exclusion really is immaterial. In addition, the Amended IGA requires that the REI property be excluded from District No. 2 and re -included in District No. 1 after being developed as specified in the Service Plan. (Amended IGA, p. {00153828.DOC / 2} 3 12, §4.4 and Service Plan, p. 13, §I.(B)). Therefore, the REI exclusion is neither permanent nor detrimental to the future of District No. 1 or the operations of the Districts. REI simply has greater control over the development of its property during the land planning and platting phases processed through the County, and the intent of the Service Plan can be more easily implemented. There are no harmful, only beneficial effects of this exclusion. (See Service Plan, p. 16, §II(A)). Furthermore, the exclusion is not considered a material modification under the Special District Act. The statutory definition of a material modification under §32-1-207, C.R.S., is limited to any of the following four circumstances: (1) A decrease in the level of services (not present here); (2) A decrease in the financial ability of the district to discharge debt (not present here as explained below); (3) An addition to the type of services provided by the district (not present here); or (4) A decrease in the existing or projected need for organized services in the area (again not present here). The Record clearly shows that neither the exclusion nor the Amended IGA will have any of the above effects on the Districts. First, the exclusion will have no effect on the level of services, because those remain the same under the Amended IGA. Secondly, the financial ability of District No. 1 to discharge its debt is not effected. Because §32-1- 503, C.R.S. requires that the excluded property remain subject to any existing bonded indebtedness, the REI property will continue to be taxed for repayment of the District No. 1 bonds until they are paid off. In fact, the intent of both the exclusion and the Amended IGA is to allow the Districts to generate the same taxes, to provide the same level of services and facilities, and to implement the various provisions of the Service Plan, but to do so more efficiently and economically to the residents of the Districts, without adding or decreasing any services within the Districts' service area. B. Amended IGA Is Not a Material Modification of Service Plan. Appellants incorrectly contend that the Amended IGA constitutes a material modification of the Service Plan. However, the Service Plan not only contemplates, but requires, that the Districts enter into an intergovernmental agreement to clarify the responsibilities and functions of each District. (Service Plan, p. 27-28, §V(A)). The Service Plan intentionally left the specific terms of this intergovernmental agreement to be worked out between the Districts. As with any contract, the IGA can be modified and amended as deemed appropriate by mutual agreement of the Districts. County approval of the intergovernmental agreement or any modification thereof is not required by the Service Plan. The County did not review or approve the IGA, and it doesn't need to do so with regard to the Amended IGA. {00153828.DOC / 2} 4 Contrary to Appellants' general assertions, the Amended IGA fully and effectively implements the terms of the Service Plan. Under the Service Plan, District No. 1 functions only as a taxing district responsible for raising revenue to pay the operating, capital and debt service expenses of the Districts. (Service Plan, p. 6, §I(A)(1)). District No. 2 does all new financing, constructs all new facilities, provides all services within the service areas of the Districts, and raises other revenues as required to implement the provisions of the Service Plan. This basic structure does not change under the Amended IGA. District No. 1 remains as the primary taxing entity to discharge outstanding bonds and will continue to impose a mill levy and remit revenues to District No. 2. (Amended IGA, p. 11, §4.1(e)). The Amended IGA requires that the combined mill levy for all property within the Districts not exceed 40 mills, which is consistent with the Service Plan's limit of 50 mills. (Amended IGA, p. 6, §1.1(q); Service Plan p. 34, §VII). The new mandate that District No. 2 impose an operating mill levy within its boundaries identical to that of District No. 1 guarantees that properties in both Districts are treated equally and fairly, as was the intent of the Service Plan. The supplemental mill levy of District No. 2, together with the mill levy of District No. 1, will produce the same amount of taxes that would have been collected formerly by District No. 1. No property within either District is detrimentally effected. Appellants wrongfully allege that District No. 1 will bear the cost of operations of the Districts' facilities. However, under both the Service Plan and the Amended IGA, the exact opposite is true. The Amended IGA does not change the effect of the finances and operations of the Districts. Rather, the Amended IGA and the exclusion of the REI property will encourage development of the area as contemplated in the Service Plan, increasing the Districts' tax base and providing greater revenue for completing the public infrastructure. Under the Service Plan, District No. 2 is responsible for administering and operating both Districts, furnishing all services, and acquiring and installing all public facilities and improvements needed to serve the Districts and their residents. (Service Plan, p. 6, §I(A)(1)). The Amended IGA implements this responsibility by requiring District No. 2 to maintain both current and future facilities at specified service levels. The ability of District No. 2 to impose the supplemental mill levy will serve to ensure that District No. 2 can meet its Service Plan obligation to furnish all services and acquire and install all public facilities and improvements for use by residents of both Districts. Although not originally contemplated, the Service Plan expressly authorizes District No. 2 to have a separate mill levy. (Service Plan, p. 10, §I(A)(3)). The Service Plan also recognizes the principle that the Districts have "sufficient flexibility" under the Service Plan to provide public services and facilities "under evolving circumstances" without needing to seek amendments from the County. (See Service Plan, p. 16, §I(D)). The Amended IGA also guarantees that residents of both Districts will be allowed continued use of all amenities and public facilities without discrimination between the areas of the Districts. (Amended IGA, p. 16, §5.4). As such, the Amended IGA does not violate any provision of the Service Plan and actually serves to strengthen the (00153828.DOC /2} 5 relationship and cooperation between the Districts. The Amended IGA establishes a committee composed of directors from District No. 1 (residents) and District No. 2 (developer) to work together in order to coordinate the activities of the Districts, to implement the provisions of the Service Plan, and to discuss other management issues. (Amended IGA, p. 16, §5.5). C. Dual District Structure Provides For a Balancing of Interests As discussed above, the Amended IGA enhances the contractual authority of the Districts to work cooperatively and effectively in providing services and facilities for their constituents. While the Districts may have somewhat different interests — residential and development — the Service Plan and Amended IGA provide an institutional structure by which those interests can be harmonized for the benefit of the entire development. Why Appellants object to this with their legalistic arguments is actually a mystery. Perhaps, it is because they do not represent the true interests of the community as a whole. With the recent resignation of three Board members and the appointment of three additional resident directors, District No. 1 is now controlled entirely by residents, who will ensure that the concerns and needs of all homeowners are considered and met. (See, "Resignation Letters," Record of Proceedings, Supporting Documents, item 5). District No. 2 is controlled by the developer, REI, whose interest is in continuing to move forward in developing the unplatted property in District No. 2 as contemplated by the Service Plan. The exclusion of the REI property and the Amended IGA have enabled the Districts to achieve a better balance between the resident and developer interests, without harming or diminishing the interests of either group, regardless of Appellants' unsubstantiated contentions otherwise. The Service Plan and Amended IGA provide for a very strong institutional structure and ensure that both Districts will continue to provide the services and facilities required under the Service Plan. The County could expect no more than that. As such, the Board believes that the Amended IGA is in compliance with the Service Plan, actually enhances the specific requirements of the Service Plan, and in no respect contravenes or materially modifies any provision of the Service Plan. D. Equal Taxation. The Service Plan requires that a "uniform" and "reasonable tax burdens all properties." (Service Plan, p. 7, § I(A)(1).) The Service Plan leaves it up to the "intergovernmental agreements between the Districts [to] assure that the property tax levies remain reasonable and uniform throughout the Development." (Service Plan, p. 9, § I(A)(2)(b).) The Amended IGA does just this by specifying that the "total mill levy on all property within the Districts is uniform." (Amended IGA, p. 4, § 1.1(j)-(i)). Under the Amended IGA, both District No. 1 and District No. 2 may levy a property tax. (Amended IGA, p. 4-5, § 1.1(.D-(i)). This change was necessary to remain {00] 53828.DOC / 2) 6 in compliance with the Service Plan and ensure that the total mill levy remains uniform and equal across both Districts. (Amended IGA, p. 4, § 1.10)). There is no practical change in the mill levy. Taxes will be neither increased nor diminished. The property in District No. 1 will continue to be taxed at the same rate and application as previously, and the property in District No. 2, including the REI property excluded from District No. 1, will also be taxed at the same effective mill levy rate as the properties in District No. 1. Therefore, the Amended IGA complies with the Service Plan because the same level of taxation will uniformly burden all property, the rate and application of the mill levy will remain the same, and the only change is to the process of levying taxes by each District, rather than one District. Nothing in the Service Plan prohibits this, nor does the Special District Act restrict this. No taxpayer will be adversely effected. And all tax revenue will be used for the same purposes as before the exclusion. E. Issue of Compliance with Service Plan Is Ancillary to this Appeal of Exclusion. Finally, the issue of compliance with the Service Plan is only marginally relevant to the BOCC's involvement in this statutory appeal under §32-1-501(5)(b), C.R.S., which is to review the Board's decision to exclude the REI property. This compliance issue is addressed here only because Appellants have imbedded the issue in so many of their arguments. But then Appellants have little else to argue, given that the Board of each District and those residents attending the public hearing had no substantive objections to the exclusion of the REI property. If the BOCC concurs with the Districts that neither the exclusion of the REI property nor the Amended IGA constitute a material modification to the Service Plan, the BOCC does not need to conduct further hearings or take further action to address the compliance issue and can move on to make a final determination regarding the statutory appeal of the exclusion itself. IV. APPROVAL OF PETITION FOR EXCLUSION Appellants contend that the exclusion should not have been granted because (i) the petition was defective, and (ii) the Board erred in its findings that the exclusion complied with certain statutory requirements. However, the Record supports the Board's review and approval of the exclusion, and Appellants' procedural arguments are specious and overly legalistic. A. Petition Was in Compliance with Statutory Requirements and Was Not Defective. Appellants argue that the exclusion was invalid because the Board modified the legal description of the excluded property from the legal description in the Petition at the request of the Petitioner. Appellants base their argument on the requirement under §32- 1-501(1), C.R.S., that 100% of the fee owners of the property must sign the petition for exclusion. Appellants overlook the fact that at the time the Petition was filed, both the {00153828.DOC /2) 7 Petitioner and the Board believed that REI was the sole fee owner of the property described in the Petition for Exclusion. When that mistake was revealed by additional title work, the problem was remedied by deleting the 39 -acre Directors' Parcel (which had other ownership interests) from the larger REI acreage of approximately 2260 acres. The Special District Act specifically authorizes the Board to grant the exclusion of all or "any portion thereof' of the property described in the Petition. §32-1-501(2), C.R.S. The statute does not limit the time at, or the reasons for which the Board may modify the legal description of the subject property. The Board had full authority to allow Petitioner to correct the legal description of its property here. The Board could have done so unilaterally. REI actually had an ownership interest in the Directors' Parcel; it simply did not have a 100% interest as required by statute. There was no good reason to restart the exclusion proceedings, no due process or notice rights were affected, and all of the owners of the Directors' Parcel eventually signed the Directors' Parcel Petition confirming their consent to the exclusion of this parcel. The Directors' Parcel represents a small portion of the entire legal description and excepting it from the Petition did not affect the Board's analysis of the statutory factors discussed below. Appellants assert that Petitioner should have resubmitted the Petition and that a new public hearing be held. However, such action is an unnecessary expenditure of the Petitioner's and District's resources and serves no useful purpose. In addition, the Petitioner's intent was to petition for exclusion of the Directors' Parcel as soon as all owners could be contacted and signatures obtained. (Directors' Parcel Letter, p. 1). On December 23, 2008, REI and the individual directors submitted a petition for exclusion of the Directors' Parcel. A public hearing will be held on the Directors' Parcel Petition for exclusion in accordance with statutory requirements. Appellants also argue that the Petition was defective because Petitioner did not submit a deposit of money. However, the Board did not require such a deposit prior to the public hearings because REI agreed in the Petition and at the public hearing to pay all actual costs of the proceeding. (See Transcript of Public Hearing, p. 49.) REI actually paid directly the transcription costs of the public hearing and has been billed for certain publication and recording costs, and other expenses will be billed to REI as soon as an accurate total of such costs can be determined. Appellants have no substantive argument to make here and instead make much to do about the "deposit". If the Board had set the deposit requirement at $1, then the deposit requirement would have been satisfied by monies already spent by the Petitioner on these proceedings. The Districts will be out no expenses, because REI has agreed to pay all expenses, and District No. 1 has numerous statutory powers to collect any delinquent amount. Further, the BOCC has no legal authority to even consider this issue. See §32-1-501(5)(b)(II), C.R.S. B. Appellants Failed to Provide Any Objection to Statutory Factors and Board's Findings Are Supported by Record. {00153828.DOC / 2) 8 There are a total of eight statutory factors that must be considered before granting or denying a petition for exclusion of property from a special district. §32-1-501(3), C.R.S. REI addressed each of the eight factors in its presentation before the Board at the public hearing. (REI Presentation, p. 14-16). The Record fully supports the Board's findings on these factors. Prior to this appeal, neither Appellants nor any other person presented any substantive evidence or testimony that the exclusion failed to meet any of the statutory factors. The Appellants submitted two letters expressing concern about the effect of the exclusion, however neither provided specific evidence relating to the statutory factors. At the public hearing, an Appellant presented a "Letter From Concerned Residents" which expressed a general level of concern about the exclusion and asked the Board to consider the economic impact of the exclusion (See, "Letter of Concern," Record of Proceedings, October 20th, item 6). No specific economic concerns were identified at the public hearing. The Letter of Concern was purportedly supported by a number of residents of the District, but only listed names of some District residents and had no signatures to confirm real support. Economic impacts were thoroughly discussed at the public hearing. (See Transcript of Public Hearing, pp. 24-31, 39, 51-54, 58-59, 74-77 and 90-91). Similarly, at the continued meeting on November 3rd and after the public hearing had been closed, Appellants presented a letter from their attorney. (See, "Letter from Richard N. Lyons," Record of Proceedings, November 3rd, item 5). But this letter failed to raise specific objections or present substantive evidence for the Board's consideration and instead focused on the more general issue of compliance with the Service Plan. However, issues about compliance with the Service Plan are not relevant to the eight statutory factors that the Board had to consider and were therefore not relevant to the Board's evaluation of the Petition. Appellants had ample opportunity to submit evidence and present substantive objections as to any adverse impacts, which they failed to do. In addition, neither letter complied with the requirement that any written objection be filed by noon on October 20, 2008 as provided in the public hearing notice, and both are inadmissible as an official written objection. Failure to make such a written objection constitutes an assent to the exclusion. §32-1-501(2), C.R.S. Furthermore, at no time did Appellants officially object to the exclusion, either in writing or at the public hearing. As such, many of Appellants arguments are new and outside of the information presented to the Board at the public hearing. In accordance with §32-1-501(4)(A)(I), C.R.S., the Board had to consider only the information presented at the public hearing and discussed at the public meeting. The BOCC is controlled by this same rule. §32-1-501(5)(b)(II), C.R.S. C. Record Supports Board's Findings That Exclusion of REI Property Satisfied All Statutory Factors under §32-1-501(3), C.R.S. {00I53828.DOC / 2) 9 Both the Board and the BOCC must apply the evidence presented at the public hearing to determine whether the eight statutory factors in §32-1-501(3), C.R.S., are met. No dissenting or contravening evidence was presented by Appellants to support their argument that the exclusion should be denied. All evidence before the Board, and now available to the BOCC, supports the decision to exclude the REI property from District No. 1. 1. Exclusion of REI property is in best interests of REI property, District No. 1 and Weld County. The exclusion of the REI property ensures that the improvements and facilities contemplated in the Service Plan will be built efficiently. (REI Presentation, p. 14). Currently, only a small portion of the planned development has been built. Residents of District No. 1 benefit from unique public improvements already in place, including a marina, riding and walking trails, swimming pool, playground, community center, and outdoor riding arena. (REI Presentation, p.10). However, the Service Plan contemplates additional public improvements, including a major equestrian center, basketball and tennis courts, a putting green, additional playgrounds and playing fields, and a cross-country riding arena. (REI Presentation, p. 11). These essential public facilities and improvements still need to be built to fulfill the vision of the Service Plan. (Service Plan, p. 21-25). The timely development of these facilities and improvements is in the best interests of the current and future residents of District No. 1, who will benefit from these public improvements. The exclusion ensures such development will occur by allowing District No. 2 to impose a separate mill levy on the excluded property. (Amended IGA, p. 15-16, § 5.3-5.4). If the developer has control over the unplatted land, it can proceed with its development plans, subject to all land use regulations of the County, increasing the Districts' tax base in the process and simplifying any necessary financing of public infrastructure, with no impact on District No. 1 residents. The Amended IGA requires District No. 2. to use these funds to build -out the public infrastructure, therefore avoiding any unnecessary delays in developing the excluded (unplatted) property and other facilities for use by residents of District No. 1. (Amended IGA, p. 13, §5.1). Construction and development create jobs, promote sales and increase the tax base that benefit both the immediate area as well as Weld County as a whole. (REI Presentation, p. 14). 2. Relative cost and benefit to REI property from provision of District No. 1's services. Exclusion of the REI property is less costly than having the REI property remain in District No. 1. (REI Presentation, p. 14). Prior to the exclusion, all taxable property was solely in District No. 1. The exclusion clearly delineates the boundary lines between the developed and platted property, which all will remain in District No. 1, and {00153828.DOC / 2) 10 the undeveloped property, which is now entirely in District No. 2. The costs of funding improvements to the REI property is now placed on District No. 2, and with the levy of a separate property tax in District No. 2, the ability of the Districts to finance public improvements. (REI Presentation, p. 14). In addition, the Districts will be able to establish a reserve for repayment of District No. 1's general obligation bonds, finance all of the public improvements set forth in the Service Plan, and repay costs of construction and other obligations. (See Amended IGA, p. 13). These funding priorities are accomplished without any additional cost to District No. 1. 3. Ability of District No. 1 to provide economical and sufficient service to both REI property and all other properties within District No. 1. Exclusion of the REI Property does not hinder the ability of District No. 1 to provide services, nor does the exclusion increase the cost of providing services. (REI Presentation, p. 15). While legally separate, District No. 1 and District No. 2 work together as contemplated under the terms of the Service Plan and Amended IGA to assure that services are provided to all properties and a property tax is imposed uniformly across both Districts. (Transcript of Public Hearing, p. 25). The Districts will continue to operate cooperatively and jointly to provide services to both Districts as required by the Service Plan. Exclusion of the REI property from District No. 1 does not create a greater tax burden on any of the remaining properties in District No. 1. The District No. 1 mill levy will be the same, and the REI property will be subject to the same mill levy rate as the properties in District No. 1. Nor does the exclusion create a greater burden on District No. 1 in providing services, because District No. 2 must provide such services using in part revenues available from the uniform operating mill levy of each District. 4. Whether District No. 1 is able to provide services at a reasonable cost compared with costs that would be imposed by other entities in surrounding area. The Service Plan recognizes that District No. 2 will provide all services within the Districts. District No. 2 is able to provide services more efficiently and at a lower cost than if the REI Property remained in District No. 1 or was served by some other entity. (REI Presentation p. 15). The exclusion allows District No. 2 to impose its own mill levy, and to use a portion of those funds to provide the public improvements to the REI property and the properties in District No. 1. (Amended IGA, p. 13-14, § 5.1). No other entity is available to provide the services furnished by District No. 2. 5. Effect of denying Petition on employment and other economic conditions in District No. 1 and surrounding area. Exclusion of the REI Property will have a positive impact on employment by encouraging development, promoting sales and creating jobs in the construction field. (00153828.DOC / 2) 11 (Transcript of Hearing, p. 26; REI Presentation p. 15). Denial of the Petition forces the Districts to maintain at the status quo, which is minimal and inefficient build -out. 6. Economic impacts on region and on District No. 1, surrounding area and State as a whole if Petition is denied. Again, the exclusion facilitates the completion, operation, and maintenance of the public improvements in the Districts, which encourages job growth, increases the Districts' tax base and positively affects the economy of the surrounding area, Weld County, and the State as a whole. (REI Presentation, p. 16). Denial of the Petition does nothing to encourage the build -out of the development, may actually impede development (because of legal disputes with disaffected residents, such as Appellants), and would have no positive economic impact. 7. Whether an economically feasible alternative service may be available. The more economically feasible alternative services are provided by District No. 2 in financing the construction, operation, and maintenance of the public improvements. (REI Presentation, p. 16). District No. 1 is not currently able to provide for these services in a timely, efficient manner. The exclusion facilitates providing these services both to the REI property and properties within District No. I without any additional financial burden to District No. 1. District No. 2 is required to provide services in compliance with the terms of the Service Plan. A material modification of the Service Plan would have to be processed for any other alternative. 8. Additional cost to be levied on other property within District No. 1. The exclusion does not create any additional costs to the properties within District No. 1. (REI Presentation, p. 16; Transcript of Proceedings, p. 26-27). The maximum mill levy that can be imposed on properties within District No. 1 remains the same at 40 mills. (Amended IGA, p. 6, § 1.1(q)). D. Role of Board of County Commissioners The Board's findings were based on evidence presented at the public hearing on October 20th and after further deliberations of the Board on November 3rd. Appellants presented no dissenting or contravening evidence that would have allowed the Board to deny the petition. Appellants now ask the BOCC to determine whether the Record supports the exclusion of the REI property from District No. 1 in accordance with the statutory factors set forth in §32-1-501(3), C.R.S. In reviewing the Board's decision to exclude the REI Property, the BOCC must, like the Board, consider only the information before the Board at the time of its decision. {00153828.DOC / 2) 12 In essence, the BOCC must make a determination as if the BOCC were present at the public hearing and only had the information presented by the Petitioner and heard in the question and answer discussions before the Board as set forth in the Record. The BOCC should disregard the Appellants new and extraneous arguments and evaluate the Petition based on the statutory factors and the evidence before the Board as set forth in the Record. The Board is hopeful that the BOCC's review of the Record and the arguments presented by the District and the Petitioner will lead to a determination that the exclusion was both appropriate and necessary and should be granted. Respectfully submitted this 23'1 day of January, 2009. Collins Cockrel & Cole, P.C. By: aic 4 Paul R. Cockrel Attorney for Beebe Draw Farms Metropolitan District No. 1 {00153828.DOC / 2} 13 EXHIBIT A RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF THE AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT {00153828.DOC / 2} 14 RESOLUTION OF BOARD OF DIRECTORS OF BEEBE DRAW FARMS METROPOLITAN DISTRICT NO. 2 APPROVING EXCLUSION OF REAL PROPERTY FROM BEEBE DRAW FARMS METROPOLITAN DISTRICT NO. 1 AND APPROVING AND AUTHORIZING EXECUTION OF AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT AND RELATED DOCUMENTS WHEREAS, on or about October 7, 2008, REI, LIMITED LIABILITY COMPANY, a Wyoming Limited Liability Company, filed a Petition (the "Petition") with the Beebe Draw Farms Metropolitan District No. 1 ("District No. 1") requesting that District No. 1 exclude the real property described in the Petition as amended (the "Property") from District No. 1, a copy of which Petition as amended is attached hereto as Exhibit A and incorporated herein by this reference; and WHEREAS, the Property is also located within the boundaries of the Beebe Draw Farms Metropolitan District No. 2 ("District No. 2"); and WHEREAS, District No. 1 and District No. 2 (together, the "Districts") were organized pursuant to a Consolidated Service Plan dated May 1999 and approved by the Board of County Commissioners of Weld County on July 21, 1999 (the "Service Plan"); and WHEREAS, the Districts are parties to an Intergovernmental Agreement dated August 8, 2001, as amended March 4, 2004 (the "IGA"), which will be further amended, restated and superseded by the Amended and Restated IGA (as defined herein); and WHEREAS, under the Service Plan, the Districts have complete discretion to approve the inclusion and exclusion of property into and out of the boundaries of their respective District; and WHEREAS, the IGA requires the prior written approval of District No. 2 prior to District No. 1's granting of any exclusion of property from its boundaries. NOW, THEREFORE, be it resolved by the Board of Directors of District No. 2 that: 1. The Property is currently within the boundaries of District No. 2, and District No. 2 will provide services to the Property more efficiently and therefore for less cost. 2. Exclusion of the Property is in the best interests of the Property and the Districts as it facilitates the financing, construction, operation and maintenance of the Public Improvements in accordance with the provisions of the Service Plan and the Amended and Restated IGA. )00140119.DOC I) 3. The Board of Directors hereby approves the exclusion of the Property from the boundaries of District No. 1, subject to the execution of an Amended and Restated Intergovernmental Agreement between the Districts, the near final form of which is attached hereto as Exhibit B (the "Amended and Restated IGA") and is incorporated herein by this reference, and which sets forth those amendments necessitated by the exclusion of the Property to assure the implementation of the Service Plan and the financing, construction, operation and maintenance of the Public Facilities, and subject to any other conditions to exclusion that may be imposed by District No. 1 necessary to effectuate the implementation of the Service Plan and the financing, construction, operation and maintenance of the Public Improvements. 4. The Amended and Restated IGA is hereby approved, and the President and Secretary of the District are hereby authorized to execute (i) the Amended and Restated IGA, including any revisions thereto which do not materially change the terms or understandings set forth therein, and (ii) any deeds or conveyance documents necessary to effectuate the teens thereof. APPROVED AND ADOPTED by the Board of Directors of Beebe Draw Farms Metropolitan District No. 2 on this 3m day of November, 2008. BOARD OF DIRECTORS OF BEEBE DRAW FARMS METROPOLITAN DISTRICT By (00140119.DOC /E 2 Secretary EXHIBIT A REI, Limited Liability Company Petition for Exclusion (0014011913OC/I PETITION FOR EXCLUSION In accordance with Section 32-1-501(1), C.R.S., the undersigned, REI LIMITED LIABILITY COMPANY, a Wyoming limited liability company (the "Petitioner"), does hereby respectfully petition the Beebe Draw Farms MetropolitanDistrict.No. 1 ("District"), acting. by u its o o vectors o r exc usion o real property —from the tuxuidarir-s_of.the_Distrietanhia^r to the coed' ions desc$bedi herein (thr ``F.x lc Lion„)• -- The Petitioner represents to the District as follows: 1. The land to be excluded consists of approximately 2,266.118 acres situate in the County of Weld, State of Colorado and is legally described on Exhibit A attached hereto and incorporated herein by this reference (the "Property"), and, at present, constitutes a portion of the District. 2. The Petitioner is the fee owner of one hundred percent (100%) of the Property and no other person(s), entity or entities own(s) an interest in the Property except as beneficial holde(s) of encumbrances. 3. The Petitioner hereby assents to the exclusion of the Property from the boundaries of the District and to the entry of an Order in the District Court, County of Weld, State of Colorado (the "Court"), excluding the Property from the boundaries of the District. The Petitioner acknowledges that there shall be no withdrawal of the Petition from consideration by the Board after publication of notice of the hearing therefore, without the Board's consent. 4. If requested by the Petitioner, the District and the Petitioner shall enter into an Exclusion Agreement which addresses the conditions of the exclusion and the conditions upon which the order of exclusion will be recorded with the Weld County Clerk and Recorder. 5. The Petitioner agrees that it will pay, or cause to be paid, the fees incurred by the District, if any, for the Exclusion if this Petition is accepted, including the costs of publication of appropriate legal notices and legal fees and costs incurred by the District in connection with the Exclusion of the Property. The Petitioner hereby requests that the Board approve the Exclusion of the Property from the boundaries of the District and that the District file a motion with the Court requesting that an Exclusion Order be entered, stating that from and after the effective date of the Exclusion Order, the Property shall not be liable for bonded indebtedness, assessments or other obligations of the District which may be incurred after the effective date of the Order. {00132502.D0C v:11 Signed this % tildayof September, 2008. REI LIMITED LIABILITY COMPANY, a Wyoming limited liability company Address of Petitioner: 3Cot0 5, L . ., Su$t7(3O En.gietuctidi "f CO &M?. STALn(is COLORADO CO OF trig an ) ss. The foregoing instrument was acknowledged before me this /7e'' day of September, 2008, by Christine Hethcock, as Manager of REI LIMITED LIABILITY COMPANY, a Wyoming limited liability company. Witness my hand and official seal. My commission expires: a -/.2-O7 (00132502.DOC r:l) 2 EXHIBIT A Legal Description of Property (00132302.DOC v:1) Beebe Draw Filing 2 Legal Description: Legal Description of a parcel of land being a portion of that certain parcel of land described on the boundary survey recorded April 12, 1995 in Book 1487, Page 123 under Reception No. 2433894 on file in ---. --.._-the-o ce-o- unty,- 4ituate-m- Irons ,- ,. ,- .. s ... , Township 3 North, Range- 65 -West -of .the -6,- Principal - dderidian-being-more-particularly-described-as -follows: Beginning at the Southwest Cotner of said Section 8 and considering the West line of said Section 8 as bearing North 00°09'35" West and with all bearings contained herein relative thereto; thence along said West line North 00°09'35" West 1994.84 feet to a point on the Southerly line of the corrected first filing plat of Beebe Draw Farms and Equestrian Center recorded December 13, 1989 in Book 1251 under Reception No. 02200074 according to the plat on file in the office of the Clerk and Recorder, said County; thence along the boundary of said plat the following 53 courses and distances; South 73°10'00" East 888.37 feet; thence South 16°50'00" West 153.46 feet; thence South 46°50'08" East 749.22 feet; thence North 55°46'07" Bast 97.84 feet; thence South 46°59'23" East 1326.17 feet; thence North 83°33'14" East 694.12 feet; thence North 32°48'49" East 257.46 feet to a point on a curve concave to the Northeast having a central angle of 21°56'45" and a radius of 993.66 feet; a radial line passing through said point bears South 31°0732" West; thence Southeasterly along the arc of said curve 380.60 feet to the end of said curve; thence tangent from said curve South 80°49'12" East 169.63 feet to the beginning of a tangent curve concave to the Southwest having a central angle of 26°11'26" and a radius of 1221.67 feet; thence Southeasterly along the arc of said curve 558.44 feet to the end of said curve; thence tangent from said curve South 54°37'46" East 70.54 feet; thence North 35°22'14" East 150.48 feet; thence North 85°4029" East 507.75 feet; thence South 87°32'47" East 399.71 feet; thence South 78°20'53" East 391.38 feet; thence North 13°54'57" West 1387.81 feet; thence South 88°16'34" East 17032 feet; thence South 37°13'43" East 1250.00 feet; thence South 62°09'58" East 450.00 feet; thence South 79°40'14" East 400.00 feet; thence South 75°25'39" East 450.00 feet; thence North 89°41'05" East 398.67 feet; thence North 00°22'03" East 470.01 feet; thence South 89°41'05" West 50.00 feet; thence North 00°22'04" East 495.00 feet; thence North 89°37'55" West 91.83 feet; thence North 42°24'27" West 646.46 feet thence North 72°26'31" West 54.60 feet thence North 17°1709" West 20735 feet; thence North 00°16'43" East 348.60 feet; thence North 12°04'51" West 380.71 feet; thence North 06°35'57" West 425.17 feet; thence North 41°32'24" West 327.37 feet; thence North 31°19'19" West 302.66 feet thence North 23°33'38" West 293.98 feet; thence North 20°5625" West 650.00 feet; thence North 34°55'56" West 423.91 feet; thence North 52°36'54" West 357.78 feet to a point on the South right-of-way line of Beebe Draw Farms Parkway; thence along said South right-of-way line the following three courses and distances; South 37°23'06" West 155.00 feet to the beginning of a tangent curve concave to the Northwest having a central angle of 28°09'58" and a radius of 1141.35 feet; thence Southwesterly along the arc of said curve 561.08 feet to the end of said curve; thence tangent from said curve South 65°33'04" West 266.94 feet; thence North 24°26'46" West 100.00 feet; thence North 46°08'35 West 1117.27 feet thence South 74°02'57" West 850.00 feet to a point on a curve concave to the Southwest having a central angle of 21°01'08" and a radius of 986.23 feet; a radial line passing though said point bears North 62°51'38" East; thence Northwesterly along the arc of said curve 361.80 feet to the end of said curve; thence tangent from said curve North 48°09'30" West 225.00 feet; thence South 4190'30" West 235.00 feet to the beginning of a tangent curve concave to the Southeast having a central angle of 20°43'40" and a radius of 225.00 feet; thence Southwesterly along the arc of said curve 81.40 feet to the end of said curve; a radial line passing through said end of curve bears North 68°53'10" West; thence departing said curve North 68°53'10" West 1 450.00 feet; thence South 38°50'00" West 331.13 fret; thence North 72°28'I1" West 508.22 feet; thence South 86°32'30" West 1532.88 feet; thence South 89°50'25" West 200.00 feet to a point on the West line of said Section 8; thence departing said corrected first filing plat of Beebe Draw Frames and Equestrian Center and along said West line of said Section 8 North 00°09'35" West 206.16 feet to the Northwest Comer of said Section 8; thence along the West line of the Southwest Quarter of said Section 5 North 00°25'20" West 2654.03 feet to the West Quarter Corner ofsaid Section 3; thence along the West line of —the Northwest Quark-of-said-Seedon-5-North-00-°-.2at-1327.27 Art to-the_Southwest-Comerofthe .-Nordr-Half-ofUw Northwest Quarter -Quaid -Station fr dienee•alentThe-Seutb lineekhe"Northaalf-of-the Northwest Quarter of said Section 5 North 89°44'21" East 2631.31 feet to the Southeast Corner of the North Half of the Northwest Quarter of said Section 5; thence along the South line of the Northwest Quarter of the Northeast Quarter from said Section 5 North 89°44'21" East 1331.58 feet to the Southeast Quarter of the Northwest Quarter of the Northeast Quarter of said Section 5; thence along the East line of the Northwest Quarter of the Northeast Quarter of said Section 5 North 00°38'58" West 1325.38 feet to the Northeast Corner of the Northwest Quarter of the Northeast Quarter of said Section 5; thence along the North line of the Northeast Quarter of said Section 5 North 89°39'41" East 1333.17 feet to the Northeast Corner of said Section 5; thence along the North line of the Northwest. Quarter of said Section 4 North 89°45'43" East 2638.09 feet to the North Quarter Corner of said Section 4; thence along the North line of the Northeast Quarter of said Section 4 North 89°2430" East 805.01 feet; thence departing said North line South 40°03'54" East 9.61 feet; thence South 10°09'16" West 45.49 feet; thence South 27°0156" West 281.98 feet; thence South 35°02'52" West 129.95 feet; thence South 46°24'35" West 113.95 feet; thence South 67°56'11" West 114.41 feet to the beginning of a tangent curve concave to the Southeast having a central angle of 43°14'52" and a radius of 210.00 feet; thence Southwesterly along the arc of said curve 158.51 feet to the end of said curve; thence tangent from said curve South 24°41'19" West 39.72 feet to the beginning of a tangent curve concave to the Southeast having a central angle of 68°10'08" and a radius of 217.23 feet; thence Southeasterly along the arc of said curve 258.45 feet to the end of said curve; thence tangent from said curve South 43°28'49" East 159.97 feet to the beginning of a tangent curve concave to the Southwest having a central angle of 48°38'11" and a radius of 81.88 feet; thence Southwesterly along the arc of said curve 69.51 feet to the end of said curve; thence tangent from said curve South 05°0921" West 19.20 feet to the beginning of a tangent curve concave to the Northwest having a central angle of 25°5(10" and a radius of 260.90 feet thence Southwesterly along the arc of said curve 117.95 feet to the end of said curve; thence tangent from said curve South 31°03'31" West 130.58 feet; thence South 09°40'49" West 95.26 feet; thence South 03°11'34" East 116.07 feet to the beginning of a tangent curve concave to the Northeast having a central angle of 36°30'36" Bast and a radius of 180.24 feet; thence Southeasterly along the arc of said curve 114.85 feet to the end of said curve; thence tangent from said curve South 39°42'10" East 116.57 feet to the beginning of a tangent curve concave to the Northeast having a central angle of 45°22'31" East and a radius of 114.82 feet thence Southeasterly along the arc of said curve 90.93 feet to the end of said curve; thence tangent from said curve South 85°04'41" Bast 170.71 feet to the beginning of a tangent curve concave to the Southwest having a central angle of 68°29'30" and a radius of 126.33 feet; thence Southeasterly along the arc of said curve 151.02 feet to the end of said curve; thence tangent from said curve South 16°35'11" East 120.95 feet to the beginning of a tangent curve concave to the West having a central angle of 25°35'07" and a radius of 440.41 feet; thence Southwesterly along the arc of said curve 196.66 feet to the end of said curve; thence tangent from said curve South 08°59'57" West 101.24 feet to the beginning of a tangent curve concave to the Northeast having a central angle of 59°32'10" and a radius of 242.34 feet thence Southeasterly along the arc of said curve 251.82 feet to the end of said curve; thence tangent from said curve South 50°32'12" East 97.62 feet; thence North 89°31'48" East 283.17 feet thence South 31°18'26" East 113.96 feet; thence South 58°32'01" West 57.39 feet; thence South 31°27'59" East 522.19 feet; thence South 10°25'00" Bast 99.33 feet; thence South 33°44'57" East 157.31 feet; thence South 51°33'07" West 95.52 feet; thence South 2 00°23'23" East 177.92 feet; thence South 10°18'08" Bast 78.26 feet; thence South 30°46'04" East 152.46 feet; thence South 47°55'59" East 265.05 feet; thence South 37°5827" West 164.42 feet; thence South 06°08'57" West 239.20 feet; thence South 33°32'01" East 129.62 feet; thence South 74°20'38" Bast 218.49 feet; thence South 21°05'43" East 136.12 feet; thence South 05°34'34" East 216.02 feet; thence South 40°38'47" East 130.48 feet; thence South 06°37'24" West 112.76 feet; thence South 13°34'05" Bast 59.67 feet; thence South 35 '1 t 13 . eet; ou eet; ence South -72°02'53" Bast 149.26 feet -thence -Sough -2 ° „ ° „ t _ 122:55=feet;-thane-Saab 1s08NdakBast.16824-f thane South-35°SFi26"-East 144,84-heti-thence South 52°48'46" East 145.60 feet; thence South 53°35'11" East 274.60 fat; thence South 01°31'42" West 75.03 feet; thence South 30°0325" West 263.26 feet; thence South 06°03'06" East 282.44 feet; thence South 25°15'38" East 337.55 fat; thence South 23°51'00" East 264.59 feet; thence South 29°30'32" East 174.35 feet; thence South 37°11'17" East 96.99 fat; thence South 52°03'02" East 69.68 fat; thence South 55°31'03" East 148.65 feet; thence South 16°11'28" East 138.93 feet; thence South 42°52'22" East 177.69 feet; thence South 25°09'33" East 155.19 feet; thence South 24°47'22" East 180.62 feet; thence South 36°43'50" East 146.03 feet; thence South 25°08'32" West 111.15 feet; thence South 02°01'46" East 227.19 feet; thence South 20°03'30" East 193.90 feet; thence South 12°32'52" East 346.85 feet thence South 10°22'25" West 264.13 feet; thence South 05°07'51" West 157.19 feet; thence South 32°3742" West 220.12 fat; thence South 19°19'50" West 268.66 fee; thence South 38°04'09" West 284.92 feet; thence South 79°43'19" West 714.61 feet; thence South 24°52'21" West 224.67 feet; thence South 07°13'48" East 37.52 feet to a point on the South line of said Section 10; thence along said South line South 89°28'30" West 283.01 feet to the Northeast Corner of said Section 9; thence along the South line of said Section 9 South 89°41'18" West 5121.15 feet to the Northeast Comer of said Section 17; thence along the East line of said Section 17 South 00°3021" East 5282.59 feet to the Southeast Corner of said Section 17; thence along the South line of said Section 17 South 89°33'05" West 5327.95 fret to the Southwest Corner of said Section 17; thence along the West line of said. Section 17 North 00°29'44" West 5259.39 feet to the POINT OF BEGINNING. EXCEPTING THEREFROM the following two (2) parcels: Parcel 1 - School Site Legal Description of a parcel of land being a portion of the Northwest Quarter of Section 4 and the Northeast Quarter of Section 5, Township 3 North, Range 65 West of the 6'h P.M., Weld County, Colorado, being more particularly described as follows: Beginning at the Northwest corner of said Section 4 and considering the North line of the Northwest Quarter of said Section 4 as bearing North 89°45'43" East and with all bearings contained herein relative thereto; thence along said North line North 89°45'43" East 844.05 feet thence departing said North line South 0099'37" West 30.00 feet to the TRUE POINT OP BEGINNING; thence South 00°19'37" West 674.51 feet to the beginning of a tangent curve concave to the Northwest having a central angle of 10°04'02" and a radius of 435.00 feet; thence Southwesterly along the arc of said curve 76.43 feet to the end of said curve, a radial line passing through said end of curve bears South 79°36'20" East; thence departing said curve South 89°45'34" West 2157.24 feet to a point on the East line of the Northwest Quarter of the Northeast Quarter of said Section 5; thence along said East line North 00°38'58" West 748.22 feet; thence departing said East line North 89°39'41" East 1332.98 feet; thence North 89°45'43" East 843.75 feet to the TRUE POINT OF BEGINNING. 3 Parcel 2 - Fire Station Site Legal Description of a parcel of land being a portion of the Northwest Quarter of Section 4, Township 3 North, Range 65 West of the 6° P.M., Weld County, Colorado, being more particuiarly descn'bed-as —follows• Beginning at the Northwest corner of said Section 4 and considering the North line of the Northwest Quarter of said Section 4 as bearing North 89°45'43" East and with all bearings contained herein relative thereto; thence along said North line North 89°45'43" East 924.06 feet; thence departing said North line South 00°19'37" West 30.00 feet to the TRUE POINT OF BEGINNING; thence North 89°45'43" East 400.02 feet; thence South 00°19'37" West 404.39 feet; thence North 89°4023" West 400.00 feet; thence North 00°19'37" East 400.44 feet to the TRUE POINT OF BEGINNING. Containing 2,266.118 acres, more or less, and is subject to all easements, agreements and rights -of -way of record. 4 EXHIBIT B [attach Amended and Restated Intergovernmental Agreement] {00140119.DOC I) AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT THIS AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT ("Agreement") is made and entered into as of this 3rd day of November, 2008, by and between the BEEBE DRAW FARMS METROPOLITAN DISTRICT NO. 1 ("District No. 1") and the BEEBE DRAW FARMS METROPOLITAN DISTRICT NO. 2 ("District No. 2"; collectively, "Districts" or either of the Districts, a "District"), both quasi -municipal corporations and political subdivisions of the State of Colorado operating within the County of Weld ("County"), Colorado, organized under the provisions of Article 1 of Title 32, C.R.S. RECITALS A. The Districts were organized to facilitate the development of the Beebe Draw Farms and Equestrian Center, also known as Pelican Lake Ranch (the "Development"), by cooperatively providing for the financing, acquisition, construction, installation, completion, operation, maintenance and replacement of public infrastruction improvements and the furnishing of services for the use and benefit of the property owners, residents and users of the public improvements within the Development. B. The Consolidated Service Plan of the Districts dated May 1999 ("Service Plan") and previously approved by the County, requires that the Districts enter into an intergovernmental agreement to, among other matters, coordinate the financing, construction, completion, operation and maintenance of the public improvements and the provision of services needed within the Development. C. The Financial Plan in the Service Plan recognizes that District No. 2 will provide for the financing, construction, completion, operation and maintenance of the public improvements needed within the Development, and District No. 1 will impose a property tax levy on all taxable property within its boundaries and, after payment of debt service on its outstanding bonds, will remit the remainder of all taxes and other revenue collected by it to District No. 2. D. In furtherance of such requirements, the Districts previously entered into that certain Intergovernmental Agreement dated August 8, 2001 ("Original Agreement") and now desire to amend and restate the Original Agreement in its entirety in order (00141345.DOC /} to better describe and confirm the cooperative relationship and current understandings between the Districts. E. Section 18(2)(a), Article XIV of the Colorado Constitution, Section 29-1-203, C.R.S., and Section 32-1-1001, C.R.S., empower the Districts to enter into contracts and agreements with one another to provide intergovernmental services and facilities, including the sharing of costs, the imposition of taxes, and the incurring of debt, when so authorized by their respective Boards of Directors. F. At the public election held on November 2, 1999, the electors of the Districts authorized the Districts to incur indebtedness and other multi -fiscal year obligations and to enter into agreements relating thereto, including this Agreement, and at prior public elections, District No. l's electors authorized District No. 1 to levy property taxes, incur general obligations, and enter into agreements relating thereto, including this Agreement, in order to provide for the financing, construction and completion of the public improvements and to furnish the services needed within the Development. G. The Boards of Directors of the Districts hereby determine that the terms, conditions and provisions of this Agreement are in the best interests of the Districts and are necessary to implement the provisions of the Service Plan with respect to the intergovernmental cooperation between the Districts and to establish the respective duties and responsibilities of the Districts concerning the economic and efficient development of the public improvements and the provision of services within the Development. AGREEMENT In consideration of the agreements, terms, conditions and authorizations set forth in the Recitals (which are incorporated herein by this reference) and in this Agreement, the adequacy and sufficiency of which are mutually acknowledged, the Districts agree as follows: SECTION 1. DEFINITIONS AND CONSTRUCTION OF AGREEMENT Section 1.1 Definitions. For all purposes of this Agreement, unless the context expressly indicates differently, the terms defined in this Section shall have the following meanings. All capitalized terms defined in the Recitals are incorporated herein by this reference. If any term is {00141345.00C /3 2 capitalized in this Agreement but not defined herein, it shall have the meaning set forth in the Service Plan. a. "Administrative Expenses" means those costs incurred by District No. 2 for the purpose of administering the Districts as governments and operating and maintaining the Public Improvements as further provided in Section 5.6. b. "Agreement" means this Amended and Restated Intergovernmental Agreement between the Districts, as may be amended or supplemented in writing from time to time. (00141345.DOC /) c. "Board" or "Boards" means the Board Directors of District No. 1 or District No. 2, applicable, or the Boards of both Districts. of as d. "County" means the County of Weld, Colorado. e. "Default" or "Event of Default" means one or more of the events described in Section 6.1. f. "Developer Advances" means all funds advanced to District No. 2 by developers or other persons pursuant to any funding, reimbursement, acquisition or redevelopment agreement, and any bond, note or other obligation evidencing or securing such borrowing, that are applied for payment of costs incurred for Administrative Expenses of the Districts, for the Process of Construction, or for other public purposes, and are repayable from Project Revenues or from other legally available revenues of the Districts. g. "District" or "Districts" means either District No. 1 or District No. 2, as applicable, or both District No. 1 and District No. 2. h. "District No. 1" Metropolitan District 20, 1986 as Beebe District, a Colorado successor or assign. means the Beebe Draw Farms No. 1, organized on August Draw Farms Metropolitan special district, and any i. "District No. 1 Pledged Revenues" means all revenues received from (i) the District No. 1 Required Mill Levy after payment of principal of and interest on the 1998 Bonds, (ii) specific ownership taxes, and (iii) all rates, fees, tolls 3 and charges imposed or collected within the Districts pursuant to Section 4.2, including without limitation facility fees and water tap fees, unless otherwise pledged for the repayment of Obligations, and remitted to District No. 2 pursuant to Section 4 for payment of (i) any Obligations other than the 1998 Bonds, (ii) the costs of the Process of Construction, and (iii) the payment of Administrative Expenses, all in conformance with the Funding Priorities. j. "District No. 1 Required Mill Levy" means the property tax levy required to be imposed by District No. 1 in accordance with Section 4.1 upon all real and personal property in District No. 1 and such other property that may be obligated by virtue of law for payment on the 1998 Bonds, at a rate determined annually by the Board of District No. 2, and all property tax revenue generated therefrom, subject to the following limitations: (i) The District No. 2 Required Mill Levy shall be the same as the District No. 1 Required Mill Levy minus the amount of the District No. 1 Required Mill Levy levied against taxable property within District No. 2 pursuant to Section 32-1-503(1), C.R.S., which is necessary for District No. 1 to make payment on the 1998 Bonds, so that the total mill levy on all property within the Districts is uniform (by way of example, if the District No. 1 Required Mill Levy is 40 mills and the portion required for payment on the 1998 Bonds is 10 mills, the District No. 2 Required Mill Levy shall be 30 mills); (ii) the District No. 1 Required Mill Levy shall not exceed the Mill Limitation; and (iii) the District No. 1 Required Mill Levy shall not be less than a rate sufficient to pay, when due, (A) the principal of and interest on the 1998 Bonds, and (B) all other Obligations until all Obligations have been fully repaid and discharged, and (C) all Administrative Expenses. k. "District No. 2" means the Beebe Draw Farms Metropolitan District No. 2, organized on November 24, 1999, a Colorado special district, and any successor or assign. {00141345.DOC /3 4 1. "District No. 2 Required Mill Levy" means the property tax levy required to be imposed by District No. 2 upon all real and personal property in District No. 2 at a rate determined annually by the Board of District No. 2, and all property tax revenue generated therefrom, subject to the following limitations: (i) The District No. 2 Required Mill Levy shall be the same as the District No. 1 Required Mill Levy minus the amount of the District No. 1 Required Mill Levy levied against taxable property within District No. 2 pursuant to Section 32-1-503(1), C.R.S., which is necessary for District No. 1 to make payment on the 1998 Bonds, so that the total mill levy on all property within the Districts is uniform (by way of example, if the District No. 1 Required Mill Levy is 40 mills and the portion required for payment on the 1998 Bonds is 10 mills, the District No. 2 Required Mill Levy shall be 30 mills); (ii) the District No. 2 Required Mill Levy shall not exceed the Mill Limitation; and (iii) the District No. 2 Required Mill Levy shall not be less than a rate sufficient to pay, when due, (A) all Obligations (other than the 1998 Bonds) until all Obligations have been fully repaid and discharged, and (B) all Administrative Expenses. m. "Election" means the special election conducted by each District on November 2, 1999, at which the electors of each District authorized the District to incur Obligations and enter into agreements related thereto, including without limitation this Agreement. n. "Financial Plan" means the financial plan of the Districts as set forth in the Service Plan, including any amendment or modification thereof. o. "Fiscal Year Budget" means the annual District budget and appropriation resolution duly adopted or amended by the Board in accordance with State law. p. "Funding Priorities" has the meaning set forth in Section 3.1(d). {00141345.DOC /} 5 q. "Mill Limitation" means (i) any limitation on the District No. 1 or District No. 2 Required Mill Levy as set forth in the Service Plan or in any ballot issue approved at the Election and (ii) a limitation on the rate of the property tax levy which shall not exceed 40 mills for all purposes. r. "Obligations" means all limited rate general obligation bonds, revenue bonds, notes, contracts, or funding, reimbursement, acquisition or redevelopment agreements of the Districts, including without limitation the 1998 Bonds, Developer Advances and refunding Obligations, that are secured by the District No. 1 Required Mill Levy, the District No. 1 Pledged Revenues or the Project Revenues as provided in any resolution, indenture or agreement authorizing the issuance of such Obligations. s. "Process of Construction" or "Processing of Construction" means the activities, in part or all together, of District No. 2 with respect to providing, completing and/or acquiring the Public Improvements needed for the Development, including without limitation the planning, design, engineering, testing, permitting, inspecting, construction, construction management, installation, completion and replacement of the Public Improvements. t. "Project Revenues" means all amounts received by District No. 2 from (i) the imposition of the District No. 2 Required Mill Levy, (ii) the District No. 1 Pledged Revenues, (iii) specific ownership taxes, and (iv) all rates, fees, tolls and charges imposed or collected within the Districts for the (A) repayment of any Obligations (other than the 1998 Bonds), (B) payment of the costs of the Process of Construction, and (C) payment of Administrative Expenses, all in conformance with the Funding Priorities. u. "Public Improvements" means the streets, drainage, traffic and safety controls, water, parks and recreation, mosquito control, transportation, and all other public improvements, facilities, equipment, land and related (00141345.noc /) 6 appurtenances described or authorized in the Service Plan. v. "Service Area" means the entire area of the Development, including all property within the boundaries of the Districts. w. "Service Plan" means the Consolidated Service Plan of the Districts dated May 1999, as may be amended or modified in writing from time to time with the approval of the County. x. "Term" means the period of time commencing on the date when this Agreement has been executed by each District and ending when District No. 2 has completed all Public Improvements, all Obligations have been repaid, and District No. 2 has been dissolved or consolidated with District No. 1 in accordance with provisions of the Article 1 of Title 32, C.R.S. y. "1998 Bonds" means the General Obligation Bonds, Series 1998 of District No. 1 in the original principal amount of $2,000,000 and the principal of and interest due per the 1998 Bond repayment schedule in accordance with the terms of the 1998 Bond Resolution, and any refunding or refinancing bonds issued in accordance with the 1998 Bond Resolution. The principal amount outstanding on the 1998 Bonds as of the date of execution of this Agreement is approximately $1,475,000. z. "1998 Bond Resolution" means the Resolution authorizing the issuance of the 1998 Bonds adopted by the Board of District No. 1 on October 21, 1998. Section 1.2 Construction of Agreement. For all purposes hereunder, unless the context expressly indicates differently, all definitions, terms, and words shall include both the singular and plural. Whenever "shall" or "will" is used herein, it shall be mandatory; "may" denotes that it is preferable or permissible, but not mandatory. Whenever "Party" or "Parties" is used herein, it shall refer to either District or both Districts. A reference herein to an act of "approval" may, if applicable, include a determination of either approval or disapproval. References to Sections herein are to sections of this Agreement, unless otherwise specified. {00141345.DOC /? 7 SECTION 2. PURPOSE The purpose of this Agreement is to establish the intergovernmental relationship between the Districts in compliance with the Service Plan and to implement the terms of the Service Plan with respect to the cooperation between the Districts relating to the financing, Processing of Construction, operation and maintenance of the Public Improvements, and the provision of services within the Service Area. While each District is an independent special district, the Districts will cooperate with each other in accordance with the terms of this Agreement, unless the Districts subsequently agree to perform any administrative or management function independently by execution of an amendment of this Agreement. This Agreement shall, in all circumstances, be interpreted consistently with the Service Plan and the intended responsibilities of each District in implementing the Service Plan. SECTION 3. REPRESENTATIONS AND WARRANTIES Section 3.1 Representations and Warranties. The Board of each District represents, acknowledges, warrants and agrees for the benefit of the other District that to the best of its actual knowledge: a. The execution and delivery of this Agreement and the documents required hereunder and the consummation of the transactions contemplated by this Agreement will not (i) conflict with or contravene any law, order, rule or regulation applicable to the District or to the District's governing documents, including the Service Plan; (ii) result in the breach of any of the terms or provisions or constitute a default under any obligation, agreement or other instrument to which the District is a party or by which it may be bound or affected; or (iii) permit another party to terminate any such agreement or instrument or to accelerate the maturity of any indebtedness or other obligation of the District; b. The Board has duly approved this Agreement; c. This Agreement is a valid and binding obligation of the District enforceable according to its terms, except to the extent limited by bankruptcy, insolvency and other laws of general application affecting creditors' rights and by equitable principles, whether considered at law or in equity, subject to all limitations set forth herein; (00141345.DOC /} 8 d. All revenues received by District No. 1 from the District No. 1 Required Mill Levy and all Project Revenues received by District No. 2 shall be expended in accordance with the priorities set forth in Sections 4.1.(b) and 5.1.(c) (the "Funding Priorities"); e. Each District may rely upon and enforce all representations, warranties and agreements set forth in this Agreement; and f. The Districts, and not the County, shall be responsible for paying all debts and liabilities of the Districts. Section 3.2 Performance of Agreement. Each District acknowledges and agrees that the performance of this Agreement over the full Term is essential to the implementation of and compliance with the Service Plan and that any material departure from the terms of this Agreement by either District, or any unilateral attempt by either District to materially alter the terms of or to terminate this Agreement, except as authorized hereunder, is and shall constitute an Event of Default and a material departure from the Service Plan which, in addition to any other remedy set forth herein, the non -defaulting District shall be entitled to enjoin in accordance with Section 32-1-207, C.R.S. SECTION 4. DISTRICT NO. 1 RESPONSIBILITIES Section 4.1 Imposition of the District No. 1 Required Mill Levy. Until such time as (i) the 1998 Bonds and all other Obligations, including without limitation all Obligations issued pursuant to the Developer Advances, have been paid in full or payment thereof has been provided for, (ii) all of the Public Improvements have been completed and paid for, (iii) payment of the Administrative Expenses has been provided for, and (iv) District No. 2 has been dissolved or consolidated with District No. 1, District No. 1 shall: a. Certify the District No. 1 Required Mill Levy no later than December 1 of each year in accordance with statutory requirements and provide prompt written notice of such certification to District No. 2, pursuant to the following process: (i) For the 2009 fiscal and property tax collection year, the District No. 1 Required Mill Levy shall be 40 mills, which shall by operation of law also be imposed upon all taxable property in District No. 2. On or before December 1, 2008, District No. 1 shall adopt a resolution establishing and {00141345.DOC /) 9 certifying the District No. 1 Required Mill Levy at a rate of 40 mills. District No. 1 shall provide prompt written notice to District No. 2 of such certification. Upon receipt from the County of the revenues from the District No. 1 Required Mill Levy, District No. 1 shall identify and segregate that portion of the revenues received from the District No. 1 Required Mill Levy necessary for payment of principal of and interest on the 1998 Bonds per the 1998 Bond repayment schedule. District No. 1 shall make payment on the 1998 Bonds when due. District No. 1 shall remit the District No. 1 Pledged Revenues to District No. 2 within 15 business days of receipt of such revenues from the County. (ii) Commencing with the 2010 fiscal and property tax collection year and for each year thereafter during the Term, District No. 2 shall determine and, on or before November 1, advise District No. 1 of the District No. 1 Required Mill Levy to be included in the Fiscal Year Budget for the next fiscal year. On or before November 15 of each year, District No. 1 shall provide written notice to District No. 2 of any reasonable objections it may have to the District No. 1 Required Mill Levy, which objections shall be limited to non-compliance with the Service Plan or non-compliance with the terms of this Agreement. If no written objections are received by District No. 2 by November 15, District No. 1 shall be deemed to have consented to the District No. 1 Required Mill Levy, and District No. 1 shall, no later than December 1 of each year, adopt a resolution establishing and certifying the District No. 1 Required Mill Levy and shall provide prompt written notice to District No. 2 of such certification. Upon receipt of the revenues from the District No. 1 Required Mill Levy from the County, District No. 1 shall identify and segregate that portion of the revenues received form the District No. 1 Required Mill Levy necessary for payment of principal of and interest on the 1998 Bonds per the 1998 Bond repayment schedule. District No. 1 shall make payment on the 1998 Bonds when due. District No. 1 shall remit the District No. 1 Pledged Revenues to District No. 2 within 15 business days of receipt of such revenues from the County. (iii) It shall District No. 1 fails to certify the Levy by December 1 of any year or Pledged Revenues to District No. 2. 2 shall have the rights and remedies b. All property District No. 1 from the District No be applied first for the payment of Bond repayment schedule, and then be an Event of Default if District No. 1 Required Mill to remit the District No. 1 In such event, District No. set forth in Section 6.3. tax revenue received by . 1 Required Mill Levy shall the 1998 Bonds per the 1998 the District No. 1 Pledged (00141345.DOC /} 10 Revenues shall be remitted to District No. 2 pursuant to the provisions hereof. c. The provisions of this Section are hereby declared to be the certificate of the Board of District No. 1 to the County authorizing the District No. 1 Required Mill Levy to be levied by the County, from year to year, as required by law for the purposes set forth herein. d. It shall be the duty of the Board of District No. 1 annually, at the time and in the manner provided by law for the adoption of the Fiscal Year Budget and the levy of property taxes, to ratify and carry out the provisions of this Section with reference to the establishment, levy and collection of the District No. 1 Required Mill Levy. The Board of District No. 1 shall levy, certify and collect the District No. 1 Required Mill Levy for the purposes and in the manner provided by law and for the purposes and in the manner set forth in the 1998 Bond Resolution and this Agreement. District No. 1 in cooperation with District No. 2 shall pursue any reasonable remedy available to collect, or cause the collection of, delinquent property taxes and remit all amounts realized from the sale of any real or personal property for delinquent taxes to District No. 2 (not required for payment of principal of and interest on the 1998 Bonds) in accordance with the provisions of this Agreement. e. District No. 1 shall be prohibited from retaining, appropriating, expending, pledging or otherwise encumbering any portion of the District No. 1 Pledged Revenues that are received by District No. 1 for any purpose, and all of such revenues and monies shall be transferred and paid to District No. 2 in accordance with the provisions of this Agreement. f. At any and all times, District No. 1 shall, to the extent authorized by law, pass, make, do, perform, execute, acknowledge and deliver any and all further agreements, acts, conveyances, assignments, transfers, certifications and assurances as may be necessary or desirable for the better assuring, effecting, confirming, undertaking and completing any and all obligations, duties, responsibilities and acts, or as may otherwise be reasonably required to carry out the terms and purposes of this Agreement and to comply with the Service Plan. Section 4.2 Rates, Fees and Charges. During the Term, District No. 1 shall adopt, impose and remit to District No. 2 such rates, fees, tolls and charges as are established by District No. 2 pursuant to Section 5 in order to repay the Obligations or to fund the Process of Construction costs and the Administrative Expenses of the Districts, and such rates, fees, (00141345.DOC /) 11 tolls and charges shall be deemed part of the District No. 1 Pledged Revenues. The procedures for adopting, budgeting and transferring such fees will be established by District No. 2. Section 4.3 District No. 1 Obligations. Other than the remittance of the District No. 1 Pledged Revenues to District No. 2, District No. 1 shall incur no direct Obligations, Developer Advances, or direct costs for Processing of Construction of the Public Improvements or for any other purpose, except for the repayment of the 1998 Bonds, unless otherwise approved in writing by each District. Section 4.4 Inclusion and Exclusion of Property. As contemplated in the Service Plan, District No. 1 shall process and approve the inclusion of platted property that is excluded from District No. 2 following infrastructure development. Upon petition of any property owner for the inclusion or exclusion of any other property into or from District No. 1, the Board of District No. 1 shall, prior to conducting any public hearing thereon, notify District No. 2 of such petition in writing. Before granting any petition for inclusion of such property into District No. 1, the Board of District No. 1 shall impose all conditions for inclusion established by District No. 2. District No. 1 shall exclude no property from District No. 1 without the prior written approval of District No. 2. All taxable property located within the original boundaries of District No. 1 shall remain liable for the repayment of its proportionate share of outstanding 1998 Bond indebtedness thereon in accordance with State law. Section 4.5 Dissolution of District No. 2. Upon receipt of notice and the dissolution of District No. 2 in accordance with the Service Plan, District No. 2 shall transfer, and District No. 1 shall accept responsibility for the operations and maintenance of all Public Improvements located within the Service Area that have not been transferred to the County or another district or public agency. Section 4.6 Organization of Additional Districts. No other special district or subdistrict shall be organized within the boundaries of either of the Districts without (i) the prior consent in writing of the affected District in accordance with State law and (ii) the County's approval of an amendment of the Service Plan relating thereto. SECTION 5. DISTRICT NO. 2 RESPONSIBILITIES Section 5.1 Imposition of the District No. 2 Required Mill Levy. Until such time as (i) the 1998 Bonds and all (00141345.DOC /) 12 other Obligations, including without limitation all Obligations issued pursuant to the Developer Advances, have been paid in full or payment thereof has been provided for, (ii) all of the Public Improvements have been completed and paid for, (iii) payment of the Administrative Expenses has been provided for, and (iv) District No. 2 has been dissolved or consolidated with District No. 1, District No. 2 shall: a. Provide written notice to District No. 1 of the District No. 1 Required Mill Levy in accordance with Section 4.1(a). b. Commencing with the 2010 fiscal and property tax collection year and for each year thereafter during the Term, certify the District No. 2 Required Mill Levy on property within its boundaries no later than December 1 of each year in accordance with statutory requirements. c. District No. 2 shall apply the Project Revenues in the following priority: (i) first, for payment of Administrative Expenses; then (ii) funding on or before December 31, 2009 a reserve for the repayment of the 1998 Bonds in the amount of $200,000 ("Bonds Reserve"); then (iii) payment of the Process of Construction costs and the repayment of all Obligations other than the 1998 Bonds; and then (iv) the funding of any other amenities, facilities or equipment as may be determined beneficial to the Development or as may otherwise be provided in this Agreement. d. In the event District No. 1 does not receive sufficient revenues from its District No. 1 Required Mill Levy to make payment of principal of and interest on the 1998 Bonds, District No. 2 shall remit funds from the Bond Reserve to District No. 1 in an amount sufficient for District No. 1 to make payment on the 1998 Bonds. At such time when the 1998 Bonds are paid in full, the Bond Reserve shall be released to District No. 2 for expenditure in accordance with the Funding Priorities. e. The provisions of this Section are hereby declared to be the certificate of the Board of District No. 2 to the County authorizing the District No. 2 Required Mill Levy to be levied by the County, from year to year, as required by -law for the purposes set forth herein. f. It shall be the duty of the Board of District No. 2 annually, at the time and in the manner provided by law for the adoption of the Fiscal Year Budget and the levy of property taxes, to ratify and carry out the provisions of this Section with reference to the establishment, levy and collection of the District No. 2 Required Mill Levy, including without limitation conducting a special election in November 2009 to authorize the (00141345.DOC /} 13 District No. 2 Required Mill Levy and any other obligations requiring electoral approval set forth herein. The Board of District No. 2 shall levy, certify and collect the District No. 2 Required Mill Levy for the purposes and in the manner provided by law and for the purposes and in the manner set forth in this Agreement. District No. 2. in cooperation with District No. 1 shall pursue any reasonable remedy available to collect, or cause the collection of, delinquent property taxes and apply all amounts realized from the sale of any real or personal property for delinquent taxes in accordance with the provisions of this Agreement. g. At any and all times, District No. 2 shall, to the extent authorized by law, pass, make, do, perform, execute, acknowledge and deliver any and all further agreements, acts, conveyances, assignments, transfers, certification and assurances as may be necessary or desirable for the better assuring, effecting, confirming, undertaking and completing any and all obligations, duties, responsibilities and acts, or as may otherwise be reasonably required to carry out the terms and purposes of this Agreement and to comply with the Service Plan. Section 5.2 General Responsibilities. District No. 2 shall exercise such duties and authority and shall have all the powers as are generally provided by State law and in the Service Plan. District No. 2, in its reasonable discretion, shall perform the following services and exercise the following powers for and on behalf the Districts: a. Manage and control the financing of the Public Improvements and the Processing of Construction, the payment of Administrative Expenses, and the completion of all actions, activities and work required to implement the Service Plan and this Agreement in conformance with the Funding Priorities; b. Budget and appropriate monies for public purposes in conformance with the Funding Priorities and provide for the payment of all expenses of the Districts; c. Establish uniform rules and regulations for the inclusion of property into the Districts in accordance with the provisions of the Service Plan; d. Adopt and enforce uniform rules and regulations for administrative and operating purposes applicable throughout the Service Area; 1 e. Establish all necessary service charges, connections fees, tap fees, system development fees, facility fees, and other rates, fees, tolls and charges for the provision {00141345.DOC /) 14 of the Public Improvements and services within the Districts, which shall be applied uniformly throughout the Service Area; f. Negotiate, prepare and enter into all applications, permits, licenses, agreements or other documents necessary to secure all applicable federal, State, County, and local approvals or other governmental authorizations for the financing, Processing of Construction, and operation and maintenance of the Public Improvements; g. Own, manage, operate, maintain and replace the Public Improvements and all property of the Districts for the general benefit of and use by all property owners, residents and related persons within the Service Area, without discrimination between the various areas of the Districts, until transferred to the County or another district or public agency. To the extent not previously effectuated, District No. 1 hereby transfers and assigns all of its interests in the Public Improvements and property of the Districts to District No. 2 for public use, subject to all limitations and conditions set forth herein; and h. Take all other actions required to implement and comply with the Service Plan and all agreements affecting the business affairs and interests of the Districts to which the District is or may become a party. Section 5.3 Financing of Public Improvements. District No. 2 shall finance and provide for the Process of Construction of all Public Improvements as required for each phase of the Development by incurring Obligations or using Project Revenues to pay the costs of the Process of Construction in conformance with the Funding Priorities and the provisions of the Service Plan. District No. 2 shall incur no Obligation which obligates District No. 1 or properties within District No. 1 for repayment of such Obligation except from the District No. 1 Pledged Revenues imposed, collected and remitted in accordance with the provisions hereof. District No. 2 shall apply and expend the Project Revenues in conformance with the Funding Priorities. Section 5.4 Completion of No. 2 shall be responsible for operation and maintenance of accordance with the provisions of Plan. District No. 2 shall, determinations relating to the expenditure of any Project Revenues and proceeds of Obligations for Processing of Construction of the Public Improvements and the payment of all Process of Construction costs, or for any other purpose with respect to the implementation, performance or enforcement of the Public Improvements. District the construction, completion, the Public Improvements in this Agreement and the Service in its discretion, make all (00141345.DOC I) 15 terms of this Agreement. Except as provided for herein for the remittance of the District No. 1 Pledged Revenues to District No. 2, District No. 1 shall have no responsibility for the financing, Processing of Construction, or the operation and maintenance of the Public Improvements. District No. 2 may transfer certain Public Improvements to the County or another public agency for ownership, operation and maintenance in accordance with the provisions of the Service Plan or intergovernmental agreements. District No. 2 shall own, manage, operate and maintain for the benefit of all property owners, residents and related persons within the Districts, without discrimination between the various areas of the Districts, all Public Improvements that are not transferred to the County or another public agency. All streets and roads owned and operated by District No. 2 shall be open for public use, subject to reasonable regulations, and shall be maintained in conformance with County road standards. All other Public Improvements and facilities of the Districts shall be available for public use, subject to reasonable regulations, and shall be maintained in a commercially reasonable manner. Section 5.5 Management of Districts. District No. 2 shall manage and administer all business affairs of the Districts, including without limitation the hiring and engagement of all employees, independent contractors, consultants, advisors, accountants, auditors, attorneys and other personnel, record - keeping, accounting and financial services, payment of Administrative Expenses, liability and property insurance, and all actions relating to statutory compliance. An executive committee of the Boards shall be constituted to facilitate ongoing communication between District No. 1 and District No. 2. The executive committee shall be composed of the president of each Board and shall also include one other Board member of each District who shall be appointed, removed, and replaced by actions of the applicable appointing Board from time to time. The executive committee shall meet periodically to discuss general management issues and to provide any comments on such issues in writing to the Boards for consideration. The executive committee may, as it deems appropriate, make recommendations to the Boards on issues on the respective Board's agenda. The executive committee may, as it deems appropriate, provide recommendations to the Boards on ways to implement the decisions of the Boards in a manner consistent with the provisions and authority conferred upon each of the Districts under this Agreement. The executive committee may, as it deems appropriate, provide recommendations to the Boards on ways to implement the provisions of the Service Plan. Additionally, the executive committee may communicate to a District on any other matter as may be directed by the other District. In no event will the executive committee have any {00141345.DOC /} 16 authority to make decisions or interfere with the decisions of the Districts. Section 5.6 Administrative Expenses. To the extent that adequate funding is available from Project Revenues and other legally available sources as provided in the Fiscal Year Budget, District No. 2 shall (i) manage, operate, maintain, repair and replace all Public Improvements not transferred to the County or another district or public agency, and (ii) generally administer the operations and business of the Districts, including without limitation the payment of all Administrative Expenses or other costs associated therewith. Section 5.7 Facility Fees and Water Tap Fees. District No. 1 has entered into certain facility fee and water tap fee agreements with developers within the District. All facility fees and water tap fees paid pursuant to such agreements (regardless of designation) shall be considered Project Revenues, unless previously pledged for the repayment of any Obligations, and shall be collected and used by District No. 2 for the completion of the Public Improvements in accordance with the provisions of Section 5.4. As recognized under the Original Agreement, this Agreement shall constitute an assignment to District No. 2 of all rights and interests of District No. 1 in and to such facility fees and water tap fees. SECTION 6. EVENTS OF DEFAULT AND REMEDIES Section 6.1 Events of Default by Districts. Subject to the terms of Section 6.5, a Default or an Event of Default by either Party under this Agreement shall mean one or more of the following events: a. Any representation or warranty made in this Agreement by a Party which was materially inaccurate when made or is proven to be materially inaccurate during the Term; b. Failure of District No. 1 to impose the District No. 1 Required Mill Levy in any year or to remit District No. 1 Pledged Revenue to District No. 2; or c. Failure of District No. 2 to impose the District No. 2 Required Mill Levy in any year; or d. A Party fails to substantially observe, comply with or perform any material responsibility, obligation, duty or agreement required of it under this Agreement; provided, however, that failure on the part of District No. 2 to observe or perform any responsibility or obligation hereunder shall not relieve or release either District from imposing the District No. (00141345.DOC /} 17 1 or District No. 2 Required Mill Levy, as applicable, and further provided that failure by either District to observe or perform any duty, responsibility or obligation hereunder shall not relieve or release the other District from making any payment, levying any property tax, otherwise performing its responsibilities hereunder, or result in an amendment or the termination of this Agreement. Section 6.2 Cure Period. Except as more specifically provided in subsection a. hereof with regard to District No. l's failure to impose the District No. 1 Required Mill Levy, upon the occurrence of an Event of Default by either Party, such Party shall, upon written notice from the other Party, proceed promptly to cure or remedy such Default. Such Default shall be cured within 30 days (or immediately with respect to a monetary payment Default) after receipt of such notice, or, if such default is of a nature which is not capable of being cured within such time period, curative action shall be commenced within the cure period and diligently pursued to completion. a. In the event that District No. 1 fails to impose the District No. 1 Required Mill Levy or District No. 2 fails to impose the District No. 2 Required Mill Levy by December 1 of any year, the defaulting District shall have no opportunity to cure and, in order to ensure that the District No. 1 Required Mill Levy or the District No. 2 Required Mill Levy, as applicable, is certified by December 15 of such year, the non - defaulting District, may, without further notice to the defaulting District, immediately proceed with the remedies set forth in Section 6.3. Section 6.3 Remedies on Default. Whenever an Event of Default occurs and is not cured or cure undertaken in accordance with the provisions of Section 6.2, the non -defaulting Party may take any one or more of the following actions: a. Recovery of actual costs and damages, including reasonable attorney fees and related expenses, through any action available at law or in equity, including without limitation the right of District No. 2 to certify to the County for collection against all taxable property within District No. 1, the amount of such costs and damages as a delinquent fee for services provided by District No. 2 in accordance with the procedures set forth in Section 32-1-1101(1)(e), C.R.S., or other special proceedings; b. In the event that either District has not certified the District No. 1 or District No. 2 Required Mill Levy, as applicable, the non -defaulting District may, subject to the provisions of the 1998 Bond Resolution, enforce the (0014134S.DOC /) 18 defaulting District's obligation to certify the District No. 1 or District No. 2 Required Mill Levy, as applicable, by mandamus or other action or special proceeding; c. In the event that District No. 2 fails to perform any management or operational responsibility specified herein and to cure or remedy such Default within the applicable cure period, District No. 1 may exercise temporary management responsibility over, or petition the District Court to appoint a conservator for, the Public Improvements and facilities of the Districts, including without limitation the levy, collection and expenditure of the Project Revenues to repay any Obligations currently due and to pay the Administrative Expenses of the Districts, until District No. 2 has cured or remedied such Default. In no event shall this Agreement be amended by District No. 1 in the event District No. 1 exercises its rights under this subsection c.; and d. Any other remedy available at law, in equity, or specified under the terms of this Agreement or the Service Plan, including without limitation specific performance or injunction. Section 6.4 Waivers. Except as otherwise expressly provided in this Agreement, any delay by either Party in asserting any right or remedy under this Agreement shall not operate as a waiver of any such right or limit such right in any way. Any waiver in fact made by such Party with respect to any Default by the other Party shall not be considered as a waiver of rights with respect to any other Default by the non -defaulting Party or with respect to the particular Default, except to the extent specifically waived in writing. It is the intent of the Parties that this provision will enable each Party to avoid the risk of being limited in the exercise of any right or remedy provided in this Agreement by waiver, laches or otherwise at a time when it may still hope to resolve any problem created by such Default. Section 6.5 Unavoidable Delay in Performance. Whether stated or not, all periods of time in this Agreement are subject to the provisions of this Section. Neither Party shall be considered in Default of its obligations under this Agreement in the event of unavoidable delay due to: (i) causes beyond its control and without its fault or negligence, including without limitation acts of God, public enemies, the federal, State, County or other local governments, the other Party or third parties, litigation concerning the validity and enforceability of the Service Plan, contracts implementing the Service Plan or this Agreement or relating to transactions contemplated herein (including the effect of petitions for initiative or referendum), (00141345.DOC /} 19 fires, floods, epidemics, restrictions, strikes, embargoes, and unusually severe weather or the delays of contractors or materialmen due to any of such causes; (ii) bankruptcy, insolvency, reorganization or similar actions under laws affecting creditor's rights, or any foreclosure or other exercise of remedies of any creditor or lender in connection therewith; and (iii) without limiting any of the foregoing, any action or inaction of the County, its officers, agents, agencies, departments, committees or commissioners which delays, directly or indirectly, the District's ability to perform, complete or comply with any schedule or requirement imposed by this Agreement, the Service Plan, or any Public Improvement project. In the event of the occurrence of such unavoidable delay, the time or times for performance of the obligations of the Party claiming delay shall be extended for the actual period of such delay; provided that the Party seeking the benefit of the provisions of this Section shall, within 30 days after such Party knows of such delay, first notify the other Party of the specific delay in writing and claim the right to an extension of performance for the period of such delay; and provided further that either Party's failure to notify the other of an event constituting an unavoidable delay shall not alter, detract from or negate its character as an unavoidable delay, if such event of delay was not known or reasonably discoverable by such Party. Section 6.6 Rights and Remedies Cumulative. The rights and remedies of the Parties under this Agreement are cumulative, and the exercise by either Party of any one or more of such rights shall not preclude the exercise by it, at the same or different times, of any other right or remedy specified herein for any other Default by the other Party. SECTION 7. MISCELLANEOUS PROVISIONS Section 7.1 Title of Sections. Any title of the several parts and sections of this Agreement are inserted for convenience or reference only and shall be disregarded in construing or interpreting any of its provisions. Section 7.2 Effective Date. This Agreement shall be in full force and effect and be legally binding upon each District upon the date of its execution by the Parties. On and after the effective date, the Original Agreement shall be terminated, amended and superseded in its entirety by this Agreement. All terms and provisions of this Agreement shall apply to any and all actions and requirements of each District for the 2009 Fiscal Year and each Fiscal Year thereafter during the Term. Section 7.3 No Third -Party Beneficiary. No third -party beneficiary rights shall be created in favor of any person not a {00141345.Doc /} 20 Party to this Agreement, unless the Parties mutually agree otherwise in writing. Section 7.4 Applicable Law. The laws of the State of Colorado shall govern the interpretation and enforcement of this Agreement. Venue shall be exclusive to the District Court in and for Weld County, Colorado. Section 7.5 Assignment. This Agreement shall not be assigned, in whole or in part, by either Party without the approval in writing of the other Party. This Agreement shall be binding on the Parties, their successors and assigns. Section 7.6 Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable, in whole or in part, under present or future laws effective during the Term, such provision shall be fully severable, and this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part of this Agreement. The remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by the severance of such provision from this Agreement. Further, in lieu of such illegal, invalid or unenforceable provision, there shall be added, as part of this Agreement, a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and still be legal, valid and enforceable, and this Agreement shall be deemed reformed accordingly. Without limiting the generality of the foregoing, if all or any portion of the payments required by the terms of this Agreement are determined by a court of competent jurisdiction in a final non -appealable judgment to be contrary to public policy or otherwise precluded, the Parties shall proceed in good faith to promptly restructure and/or amend this Agreement, or to enter into a new agreement to effectuate such purpose. Section 7.7 Service Plan Modifications. Neither District shall publish, without providing prior written notice to the other District and the County, any notice pursuant to Section 32- 1-207(3), C.R.S., of its intent to undertake the construction of any Public Improvement, the issuance of Obligations, the imposition of the Required Mill Levy or any other tax, rate, toll, fee or charge, or any other proposed activity of such District that is not consistent with the terms of the Service Plan or this Agreement and that would require any action to enjoin such activity as a potential or actual material departure from the Service Plan of such District be brought within 45 days of such notice. {00141345.DOC /} 21 Section 7.8 Amendments. This Agreement may be amended, in whole or in part, by written instrument executed by the Parties. Each amendment, which is in writing and signed and delivered by the Parties, shall be effective to amend the provisions hereof. Section 7.9 Entirety. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and replaces in their entirety any prior agreements, understandings, warranties or representations between the Parties with respect to the subject matter hereof, including without limitation the Original Agreement. Section 7.10 Counterparts. This Agreement may be executed in counterparts, each of which shall constitute one and the same instrument. Section 7.11 Notices. A notice or demand under this Agreement by either Party to the other Party shall be in writing and shall be deemed sufficiently given if delivered in person, by prepaid overnight express mail or national overnight courier service, or if forwarded by registered or certified mail, postage prepaid, return receipt requested, by electronically -confirmed facsimile transmission, and addressed as follows: a. Until subsequently changed, to: Beebe Draw Farms Metropolitan District No. 1 Attention: President 16500 Beebe Draw Farms Parkway Platteville, Colorado 80651 Beebe Draw Farms Metropolitan District No. 2 Attention: President 3600 South Logan, Suite 200 Englewood, Colorado 80110 With a copy to: Paul R. Cockrel Collins Cockrel & Cole, P.C. 390 Union Boulevard, Suite 400 Denver, Colorado 80228-1556 b. Or to such other address with respect to either Party as that Party may, from time to time, designate in writing and forward to the other Party as provided in this Section. Notices shall be deemed given upon such personal, courier or express mail delivery, or on the third business day following deposit in the U.S. Mail as provided herein. {00141345.DOC /} 22 Section 7.12 Good Faith of Parties. Except where any matter is expressly stated to be in the discretion of a Party, the Parties agree that in the performance of this Agreement or in considering any requested extension of time, each Party will act in good faith and shall not act unreasonably, arbitrarily, capriciously, or unreasonably withhold or delay any approval required by this Agreement. Section 7.13 Time. Unless the context indicates differently, all references herein to days shall be to calendar days, and all references herein to periods of time shall be to consecutive days or continuous periods of time. If the day for any performance or event provided for herein is a Saturday, Sunday or other day on which either national banks or the office of the Clerk and Recorder of the County are not open for the regular transaction of business, such day shall be extended until the next day on which such banks and office are open for the transaction of business. All times shall be of the essence. Section 7.14 Further Assurances. The Parties agree to adopt or approve such resolutions, regulations and agreements, to execute such documents or instruments, and to take such action as shall be reasonably requested by the other Party to confirm or clarify the provisions herein and to effectuate the agreements herein contained and the intent thereof. If all or any portion of the Public Improvements, Obligations or agreements approved in connection with this Agreement are asserted or determined to be invalid, illegal or are otherwise precluded, the Parties shall cooperate in the joint defense thereof, and if such defense is unsuccessful, the Parties will use reasonable, diligent, good faith efforts to amend, reform or replace such precluded matters. Section 7.15 Certifications. The Parties agree to execute such documents or instruments as the other Party may reasonably request to verify or confirm the status of this Agreement or other intergovernmental agreements between the Districts, and of the performance of the obligations hereunder and such other matters as either Party may reasonably request. Section 7.16 Survival of Representations and Warranties. No representations or warranties whatever are made by any Party to this Agreement, except as specifically set forth in Section 3. The representations and warranties made by the Parties to this Agreement, and all covenants and agreements to be performed or complied with by the Parties under this Agreement shall be continuing to the end of the Term. (00141345.DOC /) 23 In Witness Whereof, the Districts have caused this Agreement to be duly executed as of the day first above written. BEEBE DRAW FARMS METROPOLITAN DISTRICT NO. 1 By: President ATTEST: Secretary BEEBE DRAW FARMS METROPOLITAN DISTRICT NO. 2 By: President ATTEST: Secretary {00141345.DOC /) EXHIBIT B BOARD ORDER FOR EXCLUSION OF THE REI PROPERTY {00153828.DOC / 2) 15 ORDER BY THE BOARD OF DIRECTORS OF BEEBE DRAW FARMS METROPOLITAN DISTRICT NO. 1 FOR EXCLUSION OF REAL PROPERTY WHEREAS, on or about October 7, 2008 REI LIMITED LIABILITY COMPANY, a Wyoming Limited Liability Company (the "Petitioner"), the 100% fee owner of certain property located within the boundaries of the Beebe Draw Farms Metropolitan District No. 1 (the "District") filed a Petition (a copy of which is attached hereto as Exhibit A and incorporated herein by this reference) with the District requesting that the District exclude from the District all of the real property owned by the Petitioner described in the Petition (the "Initial Exclusion Property"); and WHEREAS, on November 3, 2008, Petitioner submitted a written request (attached hereto as Exhibit B and incorporated herein by this reference) to except from the Initial Exclusion Property that portion of the Petitioner's property set forth on Exhibit C attached hereto and incorporated herein by this reference, consisting of approximately 39 acres (the "Excepted Property"). The Initial Exclusion Property less the Excepted Property shall be referred to herein as the "Final Exclusion Property" and is more particularly set forth on Exhibit D attached hereto and incorporated herein by this reference; and WHEREAS, Petitioner is the 100% fee owner of the Final Exclusion Property; and WHEREAS, the Final Exclusion Property is also located within the boundaries of the Beebe Draw Farms Metropolitan District No. 2 ("District No. 2"); and WHEREAS, the District and District No. 2 (the "Districts") were organized pursuant to a Consolidated Service Plan dated May 1999 and approved by the Board of County Commissioners of Weld County on July 21, 1999 (the "Service Plan"); and WHEREAS, the Districts previously entered into an Intergovernmental Agreement dated August 8, 2001, as amended March 4, 2004 and as further amended and superceded by that certain Amended and Restated Intergovernmental Agreement dated November 3, 2008 (as amended and restated, the "IGA"); and WHEREAS, pursuant to the Service Plan, the Districts were organized to provide for the financing, construction, operation and maintenance of the public improvements and services needed for the Beebe Draw Farms and Equestrian Center (the "Development"); and WHEREAS, pursuant to the Service Plan and IGA, District No. 2 is responsible for administering and operating both Districts, furnishing all services, and acquiring, installing, operating and maintaining the public improvements and services (the "Improvements"); and WHEREAS, pursuant to the Service Plan and IGA, District No. 1 is obligated to impose a debt service mill levy sufficient to pay its existing bonds and a general mill levy which revenues are to be remitted to District No. 2 for the financing, construction, and operation and maintenance of the Improvements; and (00140302.DOC / 31 WHEREAS, the purpose of the Districts is to ensure that no area within the Development becomes obligated for more than its share of the costs of the Improvements and to ensure that the property tax levies remain uniform throughout the Development; and WHEREAS, pursuant to the Service Plan and IGA, District No. 1 and District No. 2 are authorized to impose a mill levy within their respective boundaries; and WHEREAS, under the Service Plan, the Districts have complete discretion to approve the inclusion and exclusion of property into and out of the boundaries of their respective District; and WHEREAS, the IGA requires the written approval of District No. 2 prior to the District granting any exclusion of property from its boundaries; and WHEREAS, at a public meeting held on November 3, 2008, District No. 2 by resolution consented to the exclusion of the Final Exclusion Property from the boundaries of District No. 1, a copy of which resolution is attached as Exhibit E and incorporated herein by this reference; and WHEREAS, the Petition was heard at a public meeting of the Board of Directors of the District on October 20, 2008 at the hour of 6:00 p.m. at Pelican Lake Ranch Community Center, 16502 Beebe Draw Farms Parkway, Platteville, Colorado, after publication of notice on the filing of such Petition, the place, time and date of such meeting, the name and address of the Petitioner, and a general description of the property to be excluded in the Greeley Tribune on October 14, 2008, a copy of which proof of publication is attached hereto as Exhibit F and incorporated herein by this reference; and WHEREAS, public notice calling for a public hearing on the request for approval of the Petition has been published in accordance with Section 32-1-501(2), C.R.S.; and WHEREAS, following the public hearing on October 20, 2008, the District conditionally approved the exclusion of the Initial Exclusion Property subject to the satisfaction of certain conditions; and WHEREAS, the Board of Directors has taken into consideration all of the factors set forth in Section 32-1-501(3), C.R.S; and WHEREAS, for the reasons set forth herein, it is deemed in the best interests of the District and the Petitioner that the Final Exclusion Property be excluded from the District, effective as of January 1, 2009. NOW, THEREFORE, be it resolved by the Board of Directors of District that: 1. The Board of Directors finds that the following conditions established by the Board at the public hearing on October 20, 2008 have been satisfied: (00140302.DOC / 3 ) 2 (a) The Petitioner has paid or will cause to be paid the costs associated with processing the Petition and requesting the Court to enter the Order for Exclusion, and recording thereof; and (b) The District and District No. 2 have entered into the IGA setting forth those amendments necessitated by the Exclusion of the Final Exclusion Property to assure the proper implementation of the Service Plan and the financing, construction, operation and maintenance of the Improvements; and (c) At a public meeting held on November 3, 2008, District No. 2 consented to the exclusion of the Final Exclusion Property from the boundaries of District No. 1, as required by the IGA. 2. The Board of Directors further finds that: (a) exclusion of the Final Exclusion Property is in the best interests of the Final Exclusion Property as it facilitates the financing, construction, operation and maintenance of the Improvements set forth in the Service Plan; (b) exclusion of the Final Exclusion Property is in the best interests of the District as it facilitates the financing, construction, operation and maintenance of the Improvements set forth in the Service Plan; (c) exclusion of the Final Exclusion Property is in the best interests of the County in which the District is located as it facilitates the financing, construction, operation and maintenance of the Improvements set forth in the Service Plan which was approved by the County; (d) the relative costs and benefit to the Final Exclusion Property justify exclusion from the District's services; (e) the ability of the District in cooperation with District No. 2 pursuant to the IGA, to provide economical and sufficient service to both the Final Exclusion Property and all of the properties within the District's boundaries will not be adversely affected; (0 the costs to provide the services to the Final Exclusion Property by District No. 2 pursuant to the IGA will be provided more efficiently and therefore will be less; (g) excluding the Final Exclusion Property will have a positive impact on employment and other economic conditions in the District and surrounding areas as it will facilitate the completion, operation and maintenance of the Improvements for the Development as well as additional amenities to serve the current and future residents within the Development; (h) excluding the Final Exclusion Property will have a positive economic impact on the region and on the District, surrounding area and State as a whole as it will facilitate the completion, operation and maintenance of the Improvements for the Development as well as additional amenities to serve the current and future residents within the Development; (00140302.DOC / 3) 3 (i) more economically feasible alternative services will be provided to the Final Exclusion Property by District No. 2 pursuant to the IGA in the form of Improvements being constructed which will directly serve the Final Exclusion Property; and (j) it should not be necessary for the District to levy any additional costs on other property within the District if the Petition is granted as modified because the Service Plan and IGA require uniform taxation on all property within the Districts. 3. The Board of Directors of the District shall and hereby does further acknowledge and resolve that in accordance with Section 32-1-503, C.R.S., the Final Exclusion Property described herein shall be obligated to the same extent as all other property within the District with respect to and shall be subject to the levy of taxes for the payment of that proportion of the outstanding indebtedness of the District and interest thereon existing immediately prior to the effective date of the Order for Exclusion consisting of the Beebe Draw Farms Metropolitan District General Obligation Bonds, Series 1998, in the original principal amount of $2,000,000, of which approximately $1,475,000 is currently outstanding ("Outstanding Indebtedness"). 4. The Board of Directors of the District shall and hereby does further order that, in accordance with Section 32-1-503(1), C.R.S., upon the effective date of the Order excluding the Final Exclusion Property, the Final Exclusion Property shall not be subject to any property tax levied by the Board of Directors of the District for the operating costs of the District. 5. The Board of Directors of the District shall and hereby does further resolve that in its discretion it may establish, maintain, enforce and, from time to time, modify service charges, tap fees, and other rates, fees, tolls and charges, upon residents or users in the area of the District as it existed prior to the exclusion, including the Final Exclusion Property, to supplement the proceeds of tax levies in the payment of the Outstanding Indebtedness and the interest thereon. 6. It is therefore ordered that the Petition be granted, as modified by the exception of the Excepted Property; and that the boundaries of the District shall be altered by the exclusion of the Final Exclusion Property as described below; and that the District Court of Weld County, Colorado, in which Court an Order was entered establishing this District, be requested to enter an Order that such real property be excluded from the District, effective as of January 1, 2009. The name of the fee owner of one hundred percent (100%) of the Final Exclusion Property and the legal description of the Final Exclusion Property, in conformance with title documentation to be submitted by the Petitioner confirming fee ownership of the Final Exclusion Property in the name of REI Limited Liability Company, are as follows: Owner: REI Limited Liability Company, a Wyoming limited liability company qualified and doing business in Colorado as Investors Limited Liability Company Legal Description The land as described on Exhibit D and incorporated herein of the Final by this reference. Exclusion Property: (00140302.DOC / 3) 4 APPROVED AND ADOPTED this 3'd day of November, 2008. Attest: BEEBE DRAW FARMS METROPOLITAN DISTRICT -NO. 1 By: Its: {00140136.DOC / 3 ) 5 EXHIBIT A Petition of REI, Limited Liability Company {00140136.DOC / 2) PETITION FOR EXCLUSION In accordance with Section 32-1-501(1), C.R.S., the undersigned, REI LIMITED LIABILITY COMPANY, a Wyoming limited liability company (the "Petitioner"), does hereby respectfully petition the Beebe Draw Fanns Metropolitan District No. 1 ("District"), acting by and through its Board of Directors ("Board"), for the exclusion of certain real property from the boundaries of the District, subject to the conditions described herein (the "Exclusion"). The Petitioner represents to the District as follows: 1. The land to be excluded consists of approximately 2,266.118 acres situate in the County of Weld, State of Colorado and is legally described on Exhibit A attached hereto and incorporated herein by this reference (the "Property"), and, at present, constitutes a portion of the District. 2. The Petitioner is the fee owner of one hundred percent (100%) of the Property and no other person(s), entity or entities own(s) an interest in the Property except as beneficial holder(s) of encumbrances. 3. The Petitioner hereby assents to the exclusion of the Property from the boundaries of the District and to the entry of an Order in the District Court, County of Weld, State of Colorado (the "Court"), excluding the Property from the boundaries of the District. The Petitioner acknowledges that there shall be no withdrawal of the Petition from consideration by the Board after publication of notice of the hearing therefore, without the Board's consent. 4. If requested by the Petitioner, the District and the Petitioner shall enter into an Exclusion Agreement which addresses the conditions of the exclusion and the conditions upon which the order of exclusion will be recorded with the Weld County Clerk and Recorder. 5. The Petitioner agrees that it will pay, or cause to be paid, the fees incurred by the District, if any, for the Exclusion if this Petition is accepted, including the costs of publication of appropriate legal notices and legal fees and costs incurred by the District in connection with the Exclusion of the Property. The Petitioner hereby requests that the Board approve the Exclusion of the Property from the boundaries of the District and that the District file a motion with the Court requesting that an Exclusion Order be entered, stating that from and after the effective date of the Exclusion Order, the Property shall not be liable for bonded indebtedness, assessments or other obligations of the District which may be incurred after the effective date of the Order. {00132502.DOC v:U Signed this I % fildayof September, 2008. REI LIMITED LIABILITY COMPANY, a Wyoming limited liability company STAOF COLORADO // COUNTY OFLanag By: Name: Christine Hethcock Its: Manager Address of Petitioner: 3(066 5, Lao „ Sui ZOO Fv..a�ewa� f "f CO gear. ss. The foregoing instrument was acknowledged before me this f7' day of September, 2008, by Christine Hethcock, as Manager of REI LIMITED LIABILITY COMPANY, a Wyoming limited liability company. Witness my hand and official seal. My commission expires: 6.-42-07 {00132502.DOC v:l) 2 EXHIBIT A Legal Description of Property {00132502.DDC vi } Beebe Draw Filing 2 Legal Description: Legal Description of a parcel of land being a portion of that certain parcel of land described on the boundary survey recorded April 12, 1995 in Book 1487, Page 123 under Reception No. 2433894 on file in the office of the Clerk and Recorder, Weld County, Colorado situate in Sections 4, 5, 8, 9, 10 and 17, Township 3 North, Range 65 West of the 6i° Principal Meridian being more particularly described as follows: Beginning at the Southwest Corner of said Section 8 and considering the West line of said Section 8 as bearing North 00°09'35" West and with all bearings contained herein relative thereto; thence along said West line North 00°09'35" West 1994.84 feet to a point on the Southerly line of the corrected first filing plat of Beebe Draw Farms and Equestrian Center recorded December 13, 1989 in Book 1251 under Reception No. 02200074 according to the plat on file in the office of the Clerk and Recorder, said County; thence along the boundary of said plat the following 53 courses and distances; South 73°10'00" East 888.37 feet; thence South 16°50'00" West 153.46 feet; thence South 46°50'08" East 749.22 feet; thence North 55°46'07" East 97.84 feet; thence South 46°59'23" East 1326.17 feet; thence North 83°33'14" East 694.12 feet; thence North 32°48'49" East 257.46 feet to a point on a curve concave to the Northeast having a central angle of 21°56'45" and a radius of 993.66 feet a radial line passing through said point bears South 31°07'32" West; thence Southeasterly along the arc of said curve 380.60 feet to the end of said curve; thence tangent from said curve South 80°49'12" East 169.63 feet to the beginning of a tangent curve concave to the Southwest having a central angle of 26°11'26" and a radius of 1221.67 feet; thence Southeasterly along the arc of said curve 558.44 feet to the end of said curve; thence tangent from said curve South 54°37'46" East 70.54 feet; thence North 35°22'14" East 150.48 feet; thence North 85°40'29" East 507.75 feet; thence South 87°32'47" East 399.71 feet; thence South 78°20'53" East 391.38 feet; thence North 139457" West 1387.81 feet; thence South 88°16'34" East 170.52 feet; thence South 37°13'43" East 1250.00 feet; thence South 62°09'58" East 450.00 feet; thence South 79°40'14" East 400.00 feet; thence South 75°25'39" East 450.00 feet; thence North 89°41'05" East 398.67 feet; thence North 00°22'03" East 470.01 feet; thence South 89°41'05" West 50.00 feet; thence North 00°22'04" East 495.00 feet; thence North 89°37'55" West 91.83 feet; thence North 42°24'27" West 646.46 fret; thence North 72°26'31" West 54.60 feet; thence North 17°17'09" West 207.35 feet; thence North 00°16'43" East 348.60 feet; thence North 12°04'51" West 380.71 feet; thence North 06°35'57" West 425.17 feet; thence North 41°32'24" West 327.37 feet; thence North 31°19'19" West 302.66 feet; thence North 23°33'38" West 293.98 feet; thence North 20°56'25" West 650.00 feet; thence North 34°55'56" West 423.91 feet; thence North 52°36'54" West 357.78 feet to a point on the South right-of-way line of Beebe Draw Farms Parkway; thence along said South right-of-way line the following three courses and distances; South 37°23'06" West 155.00 feet to the beginning of a tangent curve concave to the Northwest having a central angle of 28°09'58" and a radius of 1141.35 feet; thence Southwesterly along the arc of said curve 561.08 feet to the end of said curve; thence tangent from said curve South 65°33'04" West 266.94 feet; thence North 24°26'46" West 100.00 feet; thence North 46°08'35 West 1117.27 feet; thence South 74°02'57" West 850.00 feet to a point on a curve concave to the Southwest having a central angle of 21°01'08" and a radius of 986.23 feet; a radial line passing though said point bears North 62°51'38" East; thence Northwesterly along the arc of said curve 361.80 feet to the end of said curve; thence tangent from said curve North 48°09'30" West 225.00 feet; thence South 41°50'30" West 235.00 feet to the beginning of a tangent curve concave to the Southeast having a central angle of 20°43'40" and a radius of 225.00 feet; thence Southwesterly along the arc of said curve 81.40 feet to the end of said curve; a radial line passing through said end of curve bears North 68°53'10" West; thence departing said curve North 68°53'10" West I 450.00 feet; thence South 38°50'00" West 331.13 feet; thence North 72°28'11" West 508.22 feet; thence South 86°32'30" West 1532.88 feet; thence South 89°50'25" West 200.00 feet to a point on the West line of said Section 8; thence departing said corrected first filing plat of Beebe Draw Frames and Equestrian Center and along said West line of said Section 8 North 00°09'35" West 206.16 feet to the Northwest Corner of said Section 8; thence along the West line of the Southwest Quarter of said Section 5 North 00°25'20" West 2654.03 feet to the West Quarter Corner of said Section 5; thence along the West line of the Northwest Quarter of said Section 5 North 00°24'27" West 1327.22 feet to the Southwest Corner of the North Half of the Northwest Quarter of said Section 5; thence along the South line of the North Half of the Northwest Quarter of said Section 5 North 89°44'21" East 2631.31 feet to the Southeast Corner of the North Half of the Northwest Quarter of said Section 5; thence along the South line of the Northwest Quarter of the Northeast Quarter from said Section 5 North 89°44'21" East 1331.58 feet to the Southeast Quarter of the Northwest Quarter of the Northeast Quarter of said Section 5; thence along the East line of the Northwest Quarter of the Northeast Quarter of said Section 5 North 00°3858" West 1325.38 feet to the Northeast Corner of the Northwest Quarter of the Northeast Quarter of said Section 5; thence along the North line of the Northeast Quarter of said Section 5 North 89°39'41" East 1333.17 feet to the Northeast Corner of said Section 5; thence along the North line of the Northwest. Quarter of said Section 4 North 89°45'43" East 2638.09 feet to the North Quarter Corner of said Section 4; thence along the North line of the Northeast Quarter of said Section 4 North 89°24'30" East 805.01 feet; thence departing said North line South 40°03'54" East 9.61 feet; thence South 10°09'16" West 45.49 feet; thence South 27°01'56" West 281.98 feet; thence South 35°02'52" West 129.95 feet; thence South 46°24'35" West 113.95 feet; thence South 67°56'11" West 114.41 feet to the beginning of a tangent curve concave to the Southeast having a central angle of 43°14'52" and a radius of 210.00 feet; thence Southwesterly along the arc of said curve 158.51 feet to the end of said curve; thence tangent from said curve South 24°41'19" West 39.72 feet to the beginning of a tangent curve concave to the Southeast having a central angle of 68°10'08" and a radius of 217.23 feet; thence Southeasterly along the arc of said curve 258.45 feet to the end of said curve; thence tangent from said curve South 43°28'49" East 159.97 feet to the beginning of a tangent curve concave to the Southwest having a central angle of 48°38'11" and a radius of 81.88 feet; thence Southwesterly along the arc of said curve 69.51 feet to the end of said curve; thence tangent from said curve South 05°09'21" West 19.20 feet to the beginning of a tangent curve concave to the Northwest having a central angle of 25°54'10" and a radius of 260.90 feet; thence Southwesterly along the arc of said curve 117.95 feet to the end of said curve; thence tangent from said curve South 31°03'31" West 130.58 feet; thence South 09°40'49" West 95.26 feet; thence South 03°11'34" East 116.07 feet to the beginning of a tangent curve concave to the Northeast having a central angle of 36°30'36" East and a radius of 180.24 feet; thence Southeasterly along the arc of said curve 114.85 feet to the end of said curve; thence tangent from said curve South 39°42'10" East 116.57 feet to the beginning of a tangent curve concave to the Northeast having a central angle of 45°22'31" East and a radius of 114.82 feet; thence Southeasterly along the arc of said curve 90.93 feet to the end of said curve; thence tangent from said curve South 85°04'41" East 170.71 feet to the beginning of a tangent curve concave to the Southwest having a central angle of 68°29'30" and a radius of 126.33 feet; thence Southeasterly along the arc of said curve 151.02 feet to the end of said curve; thence tangent from said curve South 16°35'11" East 120.95 feet to the beginning of a tangent curve concave to the West having a central angle of 25°35'07" and a radius of 440.41 feet; thence Southwesterly along the arc of said curve 196.66 feet to the end of said curve; thence tangent from said curve South 08°59'57" West 101.24 feet to the beginning of a tangent curve concave to the Northeast having a central angle of 59°32'10" and a radius of 242.34 feet; thence Southeasterly along the arc of said curve 251.82 feet to the end of said curve; thence tangent from said curve South 50°32'12" East 97.62 feet; thence North 89°31'48" East 283.17 feet; thence South 31°18'26" East 113.96 feet; thence South 58°32'01" West 57.39 feet; thence South 31°27'59" East 522.19 feet; thence South 10°25'00" East 99.33 feet; thence South 33°44'57" East 157.31 feet; thence South 51°33'07" West 95.52 feet; thence South 2 00°2373" East 177.92 feet; thence South 10°18'08" East 78.26 feet; thence South 30°46'04" East 152.46 feet; thence South 47°55'59" East 265.05 feet; thence South 37°58'27" West 164.42 feet; thence South 06°08'57" West 239.20 feet; thence South 33°32'01" East 129.62 feet; thence South 74°20'38" East 218.49 feet; thence South 21°05'43" East 136.12 feet; thence South 05°34'34" East 216.02 feet; thence South 40°38'47" East 130.48 feet; thence South 06°37'24" West 112.76 feet; thence South 13°34'05" East 59.67 feet; thence South 35°26'15" East 136.24 feet; thence South 49°59'28" East 73.11 feet; thence South 72°02'53" East 149.26 feet; thence South 28°24'37" East 133.73 feet; thence South 40°21'43" East 122.55 feet; thence South 31°08'11" East 168.24 feet; thence South 35°26'36" East 144.84 feet; thence South 52°48'46" East 145.60 feet; thence South 53°35'11" East 274.60 feet; thence South 01°31'42" West 75.03 feet; thence South 30°0375" West 263.26 feet; thence South 06°03'06" East 282.44 feet; thence South 25°15'38" East 337.55 feet; thence South 23°51'00" East 264.59 feet; thence South 29°30'32" East 174.35 feet; thence South 37°11'17" East 96.99 feet; thence South 52°03'02" East 69.68 feet; thence South 55°31'03" East 148.65 feet; thence South 16°1178" East 138.93 feet; thence South 42°5222" East 177.69 feet; thence South 25°09'33" East 155.19 feet; thence South 24°47'22" East 180.62 feet; thence South 36°43'50" East 146.03 feet; thence South 25°08'32" West 111.15 feet; thence South 02°01'46" East 227.19 feet; thence South 20°03'30" East 193.90 feet; thence South 12°32'52" East 346.85 feet; thence South 10°22'25" West 264.13 feet; thence South 05°07'51" West 157.19 feet; thence South 32°32'42" West 220.12 feet; thence South 19°19'50" West 268.66 feet; thence South 38°04'09" West 284.92 feet; thence South 79°43'19" West 714.61 feet; thence South 24°52'21" West 224.67 feet; thence South 07°13'48" East 37.52 feet to a point on the South line of said Section 10; thence along said South line South 89°28'30" West 283.01 feet to the Northeast Corner of said Section 9; thence along the South line of said Section 9 South 89°41'18" West 5121.15 feet to the Northeast Corner of said Section 17; thence along the East line of said Section 17 South 00°3071" East 5282.59 feet to the Southeast Corner of said Section 17; thence along the South line of said Section 17 South 89°33'05" West 5327.95 feet to the Southwest Corner of said Section 17; thence along the West line of said Section 17 North 00°29'44" West 5259.39 feet to the POINT OF BEGINNING. EXCEPTING THEREFROM the following two (2) parcels: Parcel 1 - School Site Legal Description of a parcel of land being a portion of the Northwest Quarter of Section 4 and the Northeast Quarter of Section 5, Township 3 North, Range 65 West of the 6'h P.M., Weld County, Colorado, being more particularly described as follows: Beginning at the Northwest corner of said Section 4 and considering the North line of the Northwest Quarter of said Section 4 as bearing North 89°45'43" East and with all bearings contained herein relative thereto; thence along said North line North 89°45'43" East 844.05 feet; thence departing said North line South 00°19'37" West 30.00 feet to the TRUE POINT OF BEGINNING; thence South 00°19'37" West 674.51 feet to the beginning of a tangent curve concave to the Northwest having a central angle of 10°04'02" and a radius of 435.00 feet; thence Southwesterly along the arc of said curve 76.43 feet to the end of said curve, a radial line passing through said end of curve bears South 79°36'20" East; thence departing said curve South 89°45'34" West 2157.24 feet to a point on the East line of the Northwest Quarter of the Northeast Quarter of said Section 5; thence along said East line North 00°38'58" West 748.22 feet; thence departing said East line North 89°39'41" East 1332.98 feet; thence North 89°45'43" East 843.75 feet to the TRUE POINT OF BEGINNING. 3 Parcel 2 - Fire Station Site Legal Description of a parcel of land being a portion of the Northwest Quarter of Section 4, Township 3 North, Range 65 West of the 6t° P.M., Weld County, Colorado, being more particularly described as follows: Beginning at the Northwest corner of said Section 4 and considering the North line of the Northwest Quarter of said Section 4 as bearing North 89°4543" East and with all bearings contained herein relative thereto; thence along said North line North 89°45'43" East 924.06 feet; thence departing said North line South 00°19'37" West 30.00 feet to the TRUE POINT OF BEGINNING; thence North 89°45'43" East 400.02 feet; thence South 00°19'37" West 404.39 feet; thence North 89°40'23" West 400.00 feet; thence North 00°19'37" East 400.44 feet to the TRUE POINT OF BEGINNING. Containing 2,266.118 acres, more or less, and is subject to all easements, agreements and rights -of -way of record. 4 EXHIBIT B Written Request to Except Certain Property from the Initial Exclusion Property l00140136.DOC/ 2] November 3, 2008 VIA HAND DELIVERY Beebe Draw Farms Metropolitan District No. 1 Board of Directors Collins, Cockrel & Cole 390 Union Blvd. #400 Lakewood, CO 80228 Re: REI Limited Liability Company Petition for Exclusion Dear Board: As you know, on or about October 7, 2008, REI Limited Liability Company ("REI") submitted a Petition for Exclusion ("Petition") with the Beebe Draw Farms Metropolitan District No. 1 ("District") requesting the District exclude from the boundaries of the District the real property described in Exhibit A of the Petition ("Initial Exclusion Property"). The Initial Exclusion Property consisted of approximately 2,266 acres of undeveloped property. Since the filing of its Petition, REI has become aware of certain issues related to ownership and title of approximately 39 acres of property contained within the Initial Exclusion Property. REI is currently working with its legal counsel and the title company to resolve all ownership issues as soon as possible. In the meantime, REI requests that the Initial Exclusion Property be modified to except approximately 39 acres of property, as more particularly set forth on Exhibit A attached hereto and incorporated herein by this reference ("Excepted Property"). Accordingly, REI respectfully requests that the District grant its Petition, as modified, to exclude that property set forth on Exhibit B attached hereto and incorporated herein by this reference (which represents the Initial Exclusion Property less the Excepted Property). At such time when all ownership and title issues have been resolved, REI will submit a petition to the District to exclude the Excepted Property. Very truly yours, Its Christine Hethcock REI Limited Liability Company Manager 3600 S. Logan, Suite 200 Englewood, CO 80113 Enclosures cc: Vince Toenjes, Esq. McCready Sisneros, P.C. (00135859.DOC v:1 EXHIBIT A ' EXCEPTED PROPERTY The following described real property located in the County of Weld, State, .o! Colorado: Tawnehiv 3 North.- Renee SE West of the 6th P.N.: Section 4: The NA or the Si a:taept for the following described parcel: Commencing at the Northeast corner of the Myer Section 4, thence along the North line o! the said Npb,.South 80.35'03" West, 30_00'teet, thence South 0A'38'25" East, 30:00 feet parallel'with the East lino of said.NS* to the true Point of Beginning: thence centiniing South 00.3.5'25" East, 208.72 feet, thence South 89.35'05" West, 208.71 feet,. thence North 00.39'25" west, 208.73 feet, thence parallel with -the North ,fete of said W North 89.35'05" Bast,. 208.71'teet to the True Point of Beginning. Said parcel contains 39 acres, more or less. also known by street and nuMbor as: unimproved land; no street address, With all its appurtenances EXHIBIT B Beebe Draw Filing 2 Legal Description: Legal Description of a parcel of land being a portion of that certain parcel of land described on the boundary survey recorded April 12, 1995 in Book 1487, Page 123 under Reception No. 2433894 on file in the office of the Clerk and Recorder, Weld County, Colorado situate in Sections 4, 5, 8, 9, 10 and 17, Township 3 North, Range 65 West of the 6i° Principal Meridian being more particularly described as follows: Beginning at the Southwest Corner of said Section 8 and considering the West line of said Section 8 as bearing North 00°09'35" West and with all bearings contained herein relative thereto; thence along said West line North 00°09'35" West 1994.84 feet to a point on the Southerly line of the corrected first filing plat of Beebe Draw Farms and Equestrian Center recorded December 13, 1989 in Book 1251 under Reception No. 02200074 according to the plat on file in the office of the Clerk and Recorder, said County; thence along the boundary of said plat the following 53 courses and distances; South 73°10'00" East 888.37 feet; thence South 16°50'00" West 153.46 feet; thence South 46°50'08" East 749.22 feet; thence North 55°46'07" East 97.84 feet; thence South 46°59'23" Bast 1326.17 feet; thence North 83°33'14" East 694.12 feet; thence North 32°48'49" East 257.46 feet to a point on a curve concave to the Northeast having a central angle of 21 °56'45" and a radius of 993.66 feet; a radial line passing through said point bears South 31°07'32" West; thence Southeasterlyalong the arc of said curve 380.60 feet to the end of said curve; thence tangent from said curve South 80°49'12" Bast 169.63 feet to the beginning of a tangent curve concave to the Southwest having a central angle of 26° 11'26" and a radius of 1221.67 feet; thence Southeasterly along the arc of said curve 558.44 feet to the end of said curve; thence tangent from said curve South 54°37'46" East 70.54 feet; thence North 35°22'14" East 150.48 feet; thence North 85°4029" East 507.75 feet; thence South 87°32'47" Bast 399.71 feet; thence South 78°20'53" East 391.38 feet; thence North 13°54'57" West 1387.81 feet; thence South 88°16'34" East 170.52 feet; thence South 37°13'43" East 1250.00 feet; thence South 62°09'58" Bast 450.00 feet; thence South 79°40'14" East 400.00 feet; thence South 75°25'39" East 450.00 feet; thence North 89°41'05" East 398.67 feet; thence North 00°22'03" East 470.01 feet; thence South 89°41'05" West 50.00 feet; thence North 00°22'04" East 495.00 feet; thence North 89°37'55" West 91.83 feet; thence North 42°24'27" West 646.46 feet; thence North 72°26'31" West 54.60 feet; thence North 17°17'09" West 207.35 feet; thence North 00°16'43" East 348.60 feet; thence North 12°04'51" West 380.71 feet; thence North 06°35'57" West 425.17 feet; thence North 41°32'24" West 327.37 feet; thence North 31°19'19" West 302.66 feet; thence North 23°33'38" West 293.98 feet; thence North 20°56'25" West 650.00 feet; thence North 34°55'56" West 423.91 feet; thence North 5296'54" West 357.78 feet to a point on the South right-of-way line of Beebe Draw Farms Parkway; thence along said South right-of-way line the following three courses and distances; South 37°23'06" West 155.00 feet to the beginning of a tangent curve concave to the Northwest having a central angle of 28°09'58" and a radius of 1141.35 feet; thence Southwesterly along the arc of said curve 561.06 feet to the end of said curve; thence tangent from said curve South 65°33'04" West 266.94 feet; thence North 24°26'46" West 100.00 feet; thence North 46°08'35 West 1117.27 feet; thence South 74°02'57" West 850.00 feet to a point on a curve concave to the Southwest having a central angle of 21°01'08" and a radius of 986.23 feet; a radial line passing though said point bears North 62°5198" East; thence Northwesterly along the arc of said curve 361.80 feet to the end of said curve; thence tangent from said curve North 48°09'30" West 225.00 feet; thence South 41.50'30" West 235.00 feet to the beginning of a tangent curve concave to the Southeast having a central angle of 20°43'40" and a radius of 225.00 feet; thence Southwesterly along the arc of said curve 81.40 feet to the end of said curve; a radial line passing through said end of curve bears North 68°53'10" West; thence departing said curve North 68°53'10" West 1 450.00 feet; thence South 38°50'00" West 331.13 feet; thence North 72°28'11" West 508.22 feet; thence South 86°32'30" West 1532.88 feet; thence South 89°5075" West 200.00 feet to a point on the West line of said Section 8; thence departing said corrected rust filing plat of Beebe Draw Frames and Equestrian Center and along said West line of said Section 8 North 00°09'35" West 206.16 feet to the Northwest Corner of said Section 8; thence along the West line of the Southwest Quarter of said Section 5 North 00°2570" West 2654.03 feet to the West Quarter Corner of said Section 5; thence along the West line of the Northwest Quarter of said Section 5 North 00°24'27" West 1327.22 feet to the Southwest Corner of the North Half of the Northwest Quarter of said Section 5; thence along the South line of the North Half of the Northwest. Quarter of said Section 5 North 89°44'21" Bast 2631.31 feet to the Southeast Corner of the North Half of the Northwest Quarter of said Section 5; thence along the South line of the Northwest Quarter of the Northeast Quarter from said Section 5 North 89°4471" East 133138 feet to the Southeast Quarter of the Northwest Quarter of the Northeast Quarter of said Section 5; thence along the East line of the Northwest Quarter of the Northeast Quarter of said Section 5 North 00°38'58" West 1325.38 feet to the Northeast Corner of the Northwest Quarter of the Northeast Quarter of said Section 5; thence along the North line of the Northeast Quarter of said Section 5 North 89°39'41" East 1333.17 feet to the Northeast Corner of said Section 5; thence along the North line of the Northwest Quarter of said Section 4 North 89°45'43" East 2638.09 feet to the North Quarter Corner of said Section 4; thence along the North line of the Northeast Quarter of said Section 4 North 89°24'30" East 805.01 feet; thence departing said North line South 40°03'54" East 9.61 feet; thence South 10°09'16" West 45.49 feet; thence South 27°01'56" West 281.98 feet; thence South 35°02'52" West 129.95 feet; thence South 46°2435" West 113.95 feet; thence South 67°56'11" West 114.41 feet to the beginning of a tangent curve concave to the Southeast having a central angle of 43° 14'52" and a radius of 210.00 feet; thence Southwesterly along the arc of said curve 158.51 feet to the end of said curve; thence tangent from said curve South 24°41'19" West 39.72 feet to the beginning of a tangent curve concave to the Southeast having a central angle of 68°10'08" and a radius of 217.23 feet; thence Southeasterly along the arc of said curve 258.45 fed to the and of said curve; thence tangent from said curve South 43°28'49" East 159.97 feet to the beginning of a tangent curve concave to the Southwest having a central angle of 48°38'11" and a radius of 81.88 feet; thence Southwesterly along the arc of said curve 6931 feet to the end of said curve; thence tangent from said curve South 05°09'21" West 19.20 feet to the beginning of a tangent curve concave to the Northwest having a central angle of 25°54'10" and a radius of 260.90 feet; thence Southwesterly along the arc of said curve 117.95 feet to the end of said curve; thence tangent from said curve South 31°03'31" West 130.58 feet; thence South 09°40'49" West 95.26 feet; thence South 03°11'34" East 116.07 feet to the beginning of a tangent curve concave to the Northeast having a central angle of 36°30'36" Bast and a radius of 180.24 feet; thence Southeasterly along the arc of said curve 114.85 feet to the end of said curve; thence tangent from said curve South 39°42'10" East 11637 feet to the beginning of a tangent curve concave to the Northeast having a central angle of 45°22'31" East and a radius of 114.82 feet; thence Southeasterly along the arc of said curve 90.93 feet to the end of said curve; thence tangent from said curve South 85°04'41" East 170.71 feet to the beginning of a tangent curve concave to the Southwest having a central angle of 68°29'30" and a radius of 126.33 feet; thence Southeasterly along the arc of said curve 151.02 feet to the end of said curve; thence tangent from said curve South 16°35'11" East 120.95 feet to the beginning of a tangent curve concave to the West having a central angle of 25°35'07" and a radius of 440.41 feet; thence Southwesterly along the arc of said curve 196.66 feet to the end of said curve; thence tangent from said curve South 08°59'57" West 101.24 feet to the beginning of a tangent curve concave to the Northeast having a central angle of 59°32'10" and a radius of 242.34 feet; thence Southeasterly along the arc of said curve 251.82 feet to the end of said curve; thence tangent from said curve South 50°32'12" East 97.62 feet; thence North 89°31'48" East 283.17 feet; thence South 3198'26" East 113.96 feet; thence South 58°32'01" West 57.39 feet; thence South 31°27'59" East 522.19 feet; thence South 10°25'00" East 99.33 feet; thence South 33°44'57" East 157.31 feet; thence South 51°33'07" West 95.52 feet; thence South 2 00°23'23" East 177.92 feet; thence South 10°18'08" East 78.26 feet; thence South 30°46'04" East 152.46 feet; thence South 47°55'59" East 265.05 feet; thence South 37°5827" West 164.42 feet; thence South 06°08'57" West 239.20 feet; thence South 33°32'01" East 129.62 feet; thence South 74°20'38" East 218.49 feet; thence South 21°05'43" East 136.12 feet; thence South 05°34'34" East 216.02 feet; thence South 40°38'47" East 130.48 feet; thence South 06°37'24" West 112.76 feet; thence South 13°34'05" East 59.67 feet; thence South 35°26'15" East 136.24 feet; thence South 49°59'28" East 73.11 feet; thence South 72°02'53" Bast 149.26 feet; thence South 28°24'37" East 133.73 feet; thence South 40°21'43" East 122.55 feet; thence South 31°08'11" East 168.24 feet; thence South 35°26`36" East 144.84 feet; thence South 52°48'46" East 145.60 feet; thence South 53°35'11 East 274.60 feet; thence South 01°31'42" West 75.03 feet; thence South 30°0325" West 263.26 feet; thence South 06°03'06" East 282.44 feet; thence South 25°1538" East 337.55 feet; thence South 23°51'00" East 264.59 feet; thence South 29°30'32° East 174.35 feet; thence South 37°11'17" East 96.99 feet; thence South 52°03'02" East 69.68 feet; thence South 55°31'03" East 148.65 feet; thence South 16°11'28" East 138:93 feet; thence South 42°5222" East 177.69 feet; thence South 25°09'33" East 155.19 feet; thence South 24°47'22" East 180.62 feet; thence South 36°43'50" East 146.03 feet; thence South 25°08'32" West 111.15 feet; thence South 02°01'46" East 227.19 feet; thence South 20°03'30" East 193.90 feet; thence South 12°32'52" East 346.85 fat; thence South 10°22'25" West 264.13 feet; thence South 05°07'51" West 157.19 feet; thence South 32°32'42" West 220.12 feet; thence South 19°19'50" West 268.66 feet; thence South 38°04'09" West 284.92 feet; thence South 79°43'19" West 714.61 feet; thence South 24°52'21" West 224.67 feet; thence South 07°13'48" East 37.52 feet to a point on the South line of said Section 10; thence along said South line South 89°28'30" West 283.01 feet to the Northeast Corner of said Section 9; thence along the South line of said Section 9 South 89°41'18" West 5121.15,feet to the Northeast Corner of said Section 17; thence along the East line of said Section 17 South 00°3021" East 5282.59 feet to the Southeast Corner of said Section 17; thence along the South line of said Section 17 South 89°33'05" West 5327.95 feet to the Southwest Corner of said Section 17; thence along the West line of said Section 17 North 00°29'44" West 5259.39 feet to the POINT OF BEGINNING. EXCEPTING THEREFROM the following two (2) parcels: Parcel 1 - School Site Legal Description of a parcel of land being a portion of the Northwest Quarter of Section 4 and the Northeast Quarter of Section 5, Township 3 North, Range 65 West of the 6* P.M., Weld County, Colorado, being more particularly described as follows:. Beginning at the Northwest corner of said Section 4 and considering the North line of the Northwest Quarter of' said Section 4 as bearing North 89°45'43" East and with all bearings contained herein relative thereto; thence along said North line North 89°45'43" East 844.05 feet; thence departing said North line South 00°19'37" West 30.00 feet to the TRUE POINT OF BEGINNING; thence South 0099'37" West 674.51 feet to the beginning of a tangent curve concave to the Northwest having a central angle of 10°04'02" and a radius of 435.00 feet; thence Southwesterly along the arc of said curve 76.43 feet to the end of said curve, a radial line passing through said end of curve bears South 79°36'20" East; thence departing said curve South 89°45'34" West 2157.24 feet to a point on the East line of the Northwest Quarter of the Northeast Quarter of said Section 5; thence along said East line North 00°38'58" West 748.22 feet; thence departing said Bast line North 89°39'41" East 1332.98 feet; thence North 89°45'43" East 843.75 feet to the TRUE POINT OF BEGINNING. 3 Parcel 2 - Fire Station Site Legal Description of a parcel of land being a portion of the Northwest Quarter of Section 4, Township 3 North, Range 65 West of the 6i° P.M., Weld County, Colorado, being more particularly described as follows: Beginning at the Northwest corner of said Section 4 and considering the North line of the Northwest Quarter of said Section 4 as bearing North 89°45'43" East and with all beatings contained herein relative thereto; thence along said North line North 89°45'43" East 924.06 feet; thence departing said North line South 00°19'37" West 30.00 feet to the TRUE POINT OF BEGINNING; thence North 89°45'43" East 400.02 feet; thence South 00°19'37" West 404.39 feet; thence North 89°40'23" West 400.00 feet; thence North 00°19'37" East 400.44 feet to the TRUE POINT OF BEGINNING. EXCEPT FOR THE FOLLOWING PROPERTY: The following described real property located in the County of Weld, State of Colorado: Township 3 North. Rana 68 West of the 6th P.M.; section 4: The NO of the NBA except for the following described parcel: - Cciamlenchwat corner of the NW% of Section 4, 4,Northeast thence along the North line of the said NW#, South 89.35'05" West, 30.00.feet; thence South 00.35'25" Nast, 30.00 feet parallal'.with the East line of said NW} to the true Point of Beginning: thence continuing south 00°35.'25" East, 206.71 teat; thence South 89.35'08" West, 208.71 .feet:. thence North 00•38'250 West, 208.71 feet: thence parallel with the North line of said Big -North 89'35'05" East, .208.71 feet to the True Point of Beginning. Said parcel contains 39 acres, more or less. also known by street and number as: unimproved land; no street address, with all its appurtenances. Containing 2227.118 acres, more or less 4 EXHIBIT C Excepted Property (00140136.DOC /2) • EXCEPTED PROPERTY The fallowing d ac ribel seal proierty located in the Cmmty of Weld, stato,at Calatadet =mob s torek, amuse dB waste the 6th PALS Section as Who ink ottbe O% except !or the following deecrihed l C9somnclag at the letbart owner of t e : 3#y ..0t Suction 4, them along the Worth lins at• the Nit s%, Saetb ti•si'0is Peetr 30.00'$eett lbws Sean 00.31'3' test, 30.00 feat pesedlel' with the nut line of aaia a64 to do tros•Pniat of lugimungl boa coatis _t-.. Seth 00°35036" flat, 306.73 feet; thence Oeatt OD•30'00s West, 206.71 f`ett. thence Z .lI1 00'35'3r fast, 206.71 teat; theses parellel with •the Reath Liao; aeid• env or Sr 205.71 fset to the tree Point of Beginni g. Said parcel oantains 39 acres, more or loss. • also known by suet sad saber ass .10.11030"on laMi no street address► with ell its importunes. EXHIBIT D Final Exclusion Property {00140136.DOC / 21 Beebe Draw Filing 2 Legal Description: A parcel of land being a portion of that certain parcel of land described on the boundary survey recorded April 12, 1995 in Book 1487, Page 123 under Reception No. 2433894 on file in the office of the Clerk and Recorder, Weld County, Colorado situate in Sections 4, 5, 8, 9, 10 and 17, Township 3 North, Range 65 West of the 6th Principal Meridian being more particularly described as follows: Beginning at the Southwest Corner of said Section 8 and considering the West line of said Section 8 as bowing North 00°09'35" West and with all bearings contained herein relative thereto; thence along said West line North 00°09'35" West 1994.84 feet to a point on the Southerly line of the corrected first filing plat of Beebe Draw Farms and Equestrian Center recorded December 13, 1989 in Book 1251 under Reception No. 02200074 according to the plat on file in the office of the Clerk and Recorder, said County; thence along the boundary of said plat the folbwing 53 courses and distances; South 73°10'00" East 888.37 feet; thence South 16°50'00" West 153.46 feet; thence South 46°50'08" East 749.22 feet; thence North 55°46'07" East 97.84 fleet; thence South 46°5923" East 1326.17 feet; thence North 83°33'14" East 694.12 feet; thence North 32°48'49" East 257.46 feet to a point on a curve concave to the Northeast having a central angle of 21°56'45" and a radius of 993.66 feet; a radial line passing through said point bears South 31°07'32" West thence Southeasterly along the arc of said curve 380.60 feet to the end of said curve; thence tangent from said curve South 80°49'12" East 169.63 feet to the beginning of a tangent curve concave to the Southwest having a central angle of 26°1P26" and a radius of 1221.67 feet; thence Southeasterly along the arc of said curve 558.44 feet to the end of said curve; thence tangent from said curve South 54°37'46" East 70.54 feet; thence North 35°22'14" East 150.48 feet; thence North 85°40'29" East 507.75 feet; thence South 87°32'47" East 399.71 feet; thence South 78°20'53" East 39138 feet thence North 13°54'57" West 1387.81 feet; thence South 88°16'34" East 170.52 feet; thence South 37°13'43" East 1250.00 feet; thence South 62°09'58" East 450.00 feet; thence South 79°40'14" East 400.00 feet; thence South 75°25'39" East 450.00 feet thence North 89°41'05" East 398.67 feet; thence North 00°22'03" East 470.01 feet; thence South 89°41'05" West 50.00 few thence North 00°22'04" East 495.00 feet; thence North 89°37'55" West 91.83 feet; thence North 42°24'27" West 646.46 feet; thence North 12°26'3 I" West 54.60 feet; thence North 1797'09" West 20735 feet; thence North 00°16'43" East 348.60 feet; thence North 12°04'51" West 380.71 feet; thence North 06°35'57" West 425.17 feet; thence North 41°32'24" West 327.37 feet; thence North 31°19'19" West 302.66 feet thence North 23°33'38" West 293.98 feet; thence North 20°56'25" West 650.00 feet; thence North 34°55'56" West 423.91 feet; thence North 52°36'54" West 357.78 feet to a point on the South right-of- way line of Beebe Draw Fanns Parkway; thence along said South right-of-way line the following three courses and distances; South 37°23'06" West 155.00 feet to the beginning of a tangent curve concave to the Northwest having a central angle of 28°09'58" and a radius of 1141.35 feet; thence Southwesterly along the arc of said curve 561.08 feet to the end of said curve; thence tangent from said curve South 65°33'04" West 266.94 feet; thence North 24°26'46" West 100.00 feet; thence North 46°08'35 West 11(7.27 feet; thence South 74°02'57" West 850.00 feet to a point on a curve concave to the Southwest having a central angle of 21°01'08" and a radius of 98623 feet a radial line passing though said point Form No. 1830.1 (CO -88) (Continued) bears North 62°51'38" East; thence Northwesterly along the arc of said curve 361.80 feet to the end of said curve; thence tangent from said curve North 48°09'30" West 225.00 fat thence South 41°50'30" West 235.00 feet to the beginning of a tangent curve concave to the Southeast having a central angle of 20°43'40" and a radius of 225.00 feet; thence Southwesterly along the arc of said curve 81.40 feet to the end of said curve; a radial line passing through said end of curve bears North 68°53'10" West; thence departing said curve North 68°53'10" West 450.00 fret thence South 38°50'00" West 331.13 feet thence North 72°28'11" West 508.22 feet; thence South 86°32'30" West 1532.88 feet; thence South 89°50'25" West 200.00 feet to a point on the West line of said Section 8; thence departing said corrected first filing plat of Beebe Draw Farms and Equestrian Center and along said West line of said Section 8 North 00°09'35" West 206.16 fat to the Northwest Corner of said Section 8; thence along the West line of the Southwest Quarter of said Section 5 North 00°2520" West 2654.03 feet to the West Quarter Corner of said Section 5; thence along the West line of the Northwest Quarter of said Section 5 North 00°24'27" West 1327.22 feet to the Southwest Corner of the North Half of the Northwest Quarter of said Section 5; thence along the South line of the North Half of the Northwest Quarter of said Section 5 North 89°44'21" East 2631.31 feet to the Southeast Corner of the North Half of the Northwest Quarter of said Section 5; thence along the South line of the Northwest Quarter of the Northeast Quarter from said Section 5 North 89°44'21" East 1331.58 feet to the Southeast Quarter of the Northwest Quarter of the Northeast Quarter of said Section 5; thence along the East line of the Northwest Quarter of the Northeast Quarter of said Section 5 North 00°38'58" West 1325.38 feet to the Northeast Coiner of the Northwest Quarter of the Northeast Quarter of said Section 5; thence along the North line of the Northeast Quarter of said Section 5 North 89°39'41" East 1333.17 feet to the Northeast Corner of said Section 5; thence along the North line 13f the Northwest Quarter of said Section 4 North 89°45'43" East 2638.09 feet to the North Quarter Corner of said Section 4; thence along the North line of the Northeast Quarter of said Section 4 North 89°24'30" East 805.01 feet; thence departing said North line South 40°03'54" East 9.61 feet; thence South 10°09'16" West 45.49 feet; thence South 27°01'56" West 281.98 feet; thence South 35°02'52" West 129.95 feet thence South 46°24'35" West 113.95 feet; thence South 67°56'11" West 114.41 feet to the beginning of a tangent curve concave to the Southeast having a central angle of 43°14'52" and a radius of 210.00 feet thence Southwesterly along the arc of said curve 158.51 feet to the end of said curve; thence tangent from said curve South 24°41'19" West 39.72 feet to the beginning of a tangent curve concave to the Southeast having a central angle of 68°10'08" and a radius of 217.23 feet thence Southeasterly along the arc of said curve 258.45 feet to the end of said curve; thence tangent front said curve South 43°28'49" East 159.97 fret to the beginning of a tangent curve concave to the Southwest having a central angle of 48°38'11" and a radius of 81.88 feet•, thence Southwesterly along the arc of said curve 69.51 feet to the end of said curve; thence tangent front said curve South 05°09'21" West 19.20 feet to the beginning of a tangent curve concave to the Northwest having a central angle of 25°54'10" and a radius of 260.90 feet; thence Southwesterly along the arc of said curve 117.95 feet to the end of said curve; thence tangent from said curve South 31°03'31" West 130.58 feet thence South 09° 40'49" West 95.26 feet; thence South 03°11'34" East 116.07 feat to the beginning of a tangent curve concave to the Northeast having a central angle of 36°30'36" East and a radius of 180.24 feet thence Southeasterly along the arc of said curve 114.85 feet to the end of said curve; thence tangent from said curve South 39°42'10" East 116.57 feet to the beginning of a tangent curve concave to the Northeast having a central angle of 45°22'31" East and a radius of 114.82 feet; thence Southeasterly along the arc of said curve 90.93 feet to the end of said curve; thence tangent from said curve South 85°04'41" East 170.71 feet to the beginning of a tangent curve concave to the Southwest having a central angle of 68°29'30" and a radius of 12633 feet; thence Southeasterly along the arc of said curve 151.02 feet to the and of said curve; thence tangent from said curve South 16°35'11" East 120.95 feet to the beginning of a tangent curve concave to the West having a central angle of 25°35'07" and a radius of 440.41 feet thence Southwesterly along the arc of said Form No. 1640-I (Rev. 1/92) (Caeinued) curve 196.66 feet to the end of said curve; thence tangent from said curve South 08°59'57" West 101.24 fret to the beginning of a tangent curve concave to the Northeast having a central angle of 59°32'10" and a radius of 24234 feet; thence Southeasterly along the arc of said curve 251.82 feet to the end of said curve; thence tangent from said curve South 50°32'12" East 97.62 feet thence North 89°31'48" East 283.17 feet thence South 31°18'26" East 113.96 feet thence South 58°32'0 I " West 57.39 feet; thence South 31°2759" East 522.19 feet; thence South I0°25'00" East 99.33 feet thence South 33°44'57" East 157.31 feet thence South 51°33'07" West 95.52 feet; thence South 00°23'23" East 177.92 feet thence South 10°18'08" East 78.26 feet thence South 30°46'04" East 152.46 fret; thence South 47°55'59" East 265.05 feet thence South 37°58'27" West 164.42 feet; thence South 06 °08'57" West 239.20 feet; thence South 33°32'01" Bast 129.62 feet; thence South 74°20'38" East 218.49 feet; thence South 21°05'43" East 136.12 feet; thence South 05°34'34" East 216.02 feet; thence South 40°38'47" East 130.48 feet thence South 06°37'24" West 112.76 feet; thence South 13°34'05" East 59.67 feet thence South 35°26'15" East 136.24 feet; thence South 49°59'28" East 73.11 feet thence South 72°02'53" East 149.26 feet thence South 28°24'37" East 133.73 feet thence South 40°21'43" East 122.55 feet; thence South 31°08'1 l" East 168.24 feet; thence South 35°26'36" East 144.84 feet; thence South 52°48'46" East 145.60 feet; thence South 53 °35'11" East 274.60 feet; thence South 01°31'42" West 75.03 feet; thence South 30°03'25" West 263.26 feet; thence South 06°03'06" East 282.44 fret thence South 25°15'38" East 337.55 feet thence South 23°51'00" East 264.59 feet; thence South 29°30'32" East 174.35 feet thence South 37°11'17" East 96.99 feet thence South 52°03'02" East 69.68 feet; thence South 55°31'03" East 148.65 feet thence South 16°1128" East 138.93 feet thence South 42°52'22" East 177.69 feet; thence South 25°09'33" East 155.19 feet; thence South 24°47'22" East 180.62 fret; thence South 36°43'50" East 146.03 feet thence South 25°08'32" West 111.15 feet thence South 02°0 l'46" East 227.19 feet thence South 20°03'30" East 193.90 feet; thence South I2°32'52" East 346.85 feet; thence South 10°22'25" West 264.13 feet; thence South 05°07'51" West 157.19 feet thence South 32°32'42" West 220.12 feet; thence South I9°19'50" West 268.66 feet thence South 38°04'09" West 284.92 feet; thence South 79°43'19" West 714.61 fret; thence South 24°5221" West 224.67 feet thence South 07°13'48" East 37.52 feet to a point on the South line of said Section 10; thence along said South line South 89°28'30" West 283.01 feet to the Northeast Comer of said Section 9; thence along the South line of said Section 9 South 89°41'18" West 5121.15 feet to the Southeast Comer of said Section 17; thence along the East line of said Section 17 South 00°3021" East 5282.59 feet to the Southeast Corner of said Section 17; thence along the South line of said Section 17 South 89°33'05" West 5327.95 feet to the Southwest Corner of said Section 17; thence along the West line of said Section 17 North 00°29'44" West 5259.39 feet to the POINT OF BEGINNING. Containing 2,266.118 acres, more or less, and is subject to all easements, agreements and rights -of -way of record.(Acreage provided for Parcel Identification purposes only) EXCEPTING THEREFROM, to the extent included within the foregoing Filing 2 Legal Description, all of the property described in that certain Warranty Deed to Beebe Draw Farms Metropolitan District Form No. 1640-I (Rev. 1/92) (Continued) recorded December 1, 1997 in Book 1636 at Page 673 at Reception No. 2581769, Weld County Clerk and Recorder, Colorado. FURTHER EXCEPTING THEREFROM the following three (3) parcels: Parcel 1- School Site Legal Description of a parcel of land being a portion of the Northwest Quarter of Section 4 and the Northeast Quarter of Section 5, Township 3 North, Range 65 West of the 6th P.M., Weld County, Colorado, being more particularly described as follows: Beginning at the Northwest corner of said Section 4 and considering the North line of the Northwest Quarter of said Section 4 as bearing North 89°45'43" East and with all bearings contained herein relative thereto; thence along said North line North 89°45'43" East 844.05 feet; thence departing said North line South 00°19'37" West 30.00 feet to the TRUE POINT OF BEGINNING; thence South 00°19'37" West 674.51 feet to the beginning of a tangent curve concave to the Northwest having a central angle of 10°04'02" and a radius of 435.00 feet thence Southwesterly along the arc of said curve 76.43 feet to the end of said curve, a radial lime passing through said end of curve bears South 79°36'20" East thence departing said curve South 89°45'34" West 2157.24 feet to a point on the East line of the Northwest Quarter of the Northeast Quarter of said Section 5; thence along said East line North 00°38'58" West 748.22 feet; thence departing said East line North 89°39'41" East 1332.98 feet; thence North 89°45'43" East 843.75 feet to the TRUE POINT OF BEGINNING. Parcel 2 - Fire Station Site Legal Description of a parcel of land being a portion of the Northwest Quarter of Section 4, Township 3 North, Range 65 West of the 6th P.M., Weld County, Colorado, being more particularly described as follows: Beginning at the Northwest corner of said Section 4 and considering the North line of the Northwest Quarter of said Section 4 as bearing North 89°45'43" East and with all bearings contained herein relative' thereto; thence along said North line North 89°45'43" East 924.06 feet; thence departing said North line South 00°19'37" West 30.00 feet to the TRUE POINT OF BEGINNING; thence North 89°45'43" East 400.02 feet thence South 00°19'37" West 404.39 fed; thence North 89°4023" West 400.00 feet; thence North 00°19'37" East 400.44 feet to the TRUE POINT OF BEGINNING. Parcel 3 — Directors Parcel The following described real property located in the County of Weld, State of Colorado: Township 3 North, Range 65 West of the 6th P.M.: Section 4: The NE'/4 of the NW 'A except for the following described parcel: Commencing at the Northeast corner of the NW '/4 of Section 4, thence along the North line of the said NW% , South 89°35'05" West, 30.00 feet; Form No. 1640-I (Rev. 1/92) (Continued) thence South 00°35'25" East, 30.00 feet parallel with the East line of said NW% to the true Point of Beginning; thence continuing South 00°35'25" East, 208.71 feet; thence South 89°35'05" West, 208.71 feet; thence North 00°35'25" West 208.71 feet; thence parallel with the North line of said NW'/ North 89°35'05" East, 208.71 feet to the true Point of Beginning, Said parcel contains 39 acres, more or less. (Acreage provided for Parcel Identification purposes only) (Legal provided by client) Form Na 1640.1 (Rev. 1192) (Continued) EXHIBIT E Consent of District No. 2 to Exclusion of Final Exclusion Property (00140302.DOC / 3 RESOLUTION OF BOARD OF DIRECTORS OF BEEBE DRAW FARMS METROPOLITAN DISTRICT NO.2 APPROVING EXCLUSION OF REAL PROPERTY FROM BEEBE DRAW FARMS METROPOLITAN DISTRICT NO. 1 AND APPROVING AND AUTHORIZING EXECUTION OF AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT AND RELATED DOCUMENTS WHEREAS, on or about October 7, 2008, REI, LIMITED LIABILITY COMPANY, a Wyoming Limited Liability Company, filed a Petition (the "Petition") with the Beebe Draw Farms Metropolitan District No. 1 ("District No. 1") requesting that District No. 1 exclude the real property described in the Petition as amended (the "Property") from District No. 1, a copy of which Petition as amended is attached hereto as Exhibit A and incorporated herein by this reference; and WHEREAS, the Property is also located within the boundaries of the Beebe Draw Farms Metropolitan District No. 2 ("District No. 2"); and WHEREAS, District No. 1 and District No. 2 (together, the "Districts") were organized pursuant to a Consolidated Service Plan dated May 1999 and approved by the Board of County Commissioners of Weld County on July 21, 1999 (the "Service Plan"); and WHEREAS, the Districts are parties to an Intergovernmental Agreement dated August 8, 2001, as amended March 4, 2004 (the "IGA"), which will be further amended, restated and superseded by the Amended and Restated IGA (as defined herein); and WHEREAS, under the Service Plan, the Districts have complete discretion to approve the inclusion and exclusion of property into and out of the boundaries of their respective District; and WHEREAS, the IGA requires the prior written approval of District No. 2 prior to District No. I's granting of any exclusion of property from its boundaries. NOW, THEREFORE, be it resolved by the Board of Directors of District No. 2 that: 1. The Property is currently within the boundaries of District No. 2, and District No. 2 will provide services to the Property more efficiently and therefore for less cost. 2. Exclusion of the Property is in the best interests of the Property and the Districts as it facilitates the financing, construction, operation and maintenance of the Public Improvements in accordance with the provisions of the Service Plan and the Amended and Restated IGA. {00140119.DOC /} 3. The Board of Directors hereby approves the exclusion of the Property from the boundaries of District No. 1, subject to the execution of an Amended and Restated Intergovernmental Agreement between the Districts, the near final form of which is attached hereto as Exhibit B (the "Amended and Restated IGA") and is incorporated herein by this reference, and which sets forth those amendments necessitated by the exclusion of the Property to assure the implementation of the Service Plan and the financing, construction, operation and maintenance of the Public Facilities, and subject to any other conditions to exclusion that may be imposed by District No. 1 necessary to effectuate the implementation of the Service Plan and the financing, construction, operation and maintenance of the Public Improvements. 4. The Amended and Restated IGA is hereby approved, and the President and Secretary of the District are hereby authorized to execute (i) the Amended and Restated IGA, including any revisions thereto which do not materially change the terms or understandings set forth therein, and (ii) any deeds or conveyance documents necessary to effectuate the terms thereof. APPROVED AND ADOPTED by the Board of Directors of Beebe Draw Farms Metropolitan District No. 2 on this 3r° day of November, 2008. BOARD OF DIRECTORS OF BEEBE DRAW FARMS METROPOLITAN DISTRICT N By Secretary (00140119.DOC /} 2 EXHIBIT A REI, Limited Liability Company Petition for Exclusion {00140119.DOC /} PETITION FOR EXCLUSION In accordance with Section 32-1-501(1), C.R.S., the undersigned, REI LIMITED LIABILITY COMPANY, a Wyoming limited liability company (the "Petitioner"), does hereby respectfully petition the Beebe Draw Farms Metropolitan.District.No. .1 ("District), acting. by and through its Board of Directors ("Boar3"Vtor t ►e exc uslon o certain real propertyfrom the houndaries_of_the_District_subjectio_the conditions desonbed h in (the EX sion"),-.------ The Petitioner represents to the District as follows: 1. The land to be excluded consists of approximately 2,266.118 acres situate in the County of Weld, State of Colorado and is legally described on Exhibit A attached hereto and incorporated herein by this reference (the "Property"), and, at present, constitutes a portion of the District. 2. The Petitioner is the fee owner of one hundred percent (100%) of the Property and no other person(s), entity or entities own(s) an interest in the Property except as beneficial holder(s) of encumbrances. 3. The Petitioner hereby assents to the exclusion of the Property from the boundaries of the District and to the entry of an Order in the District Court, County of Weld, State of Colorado (the "Court"), excluding the Property from the boundaries of the District. The Petitioner acknowledges that there shall be no withdrawal of the Petition from consideration by the Board after publication of notice of the hearing therefore, without the Board's consent. 4. If requested by the Petitioner, the District and the Petitioner shall enter into an Exclusion Agreement which addresses the conditions of the exclusion and the conditions upon which the order of exclusion will be recorded with the Weld County Clerk and Recorder. 5. The Petitioner agrees that it will pay, or cause to be paid, the fees incurred by the District, if any, for the Exclusion if this Petition is accepted, including the costs of publication of appropriate legal notices and legal fees and costs incurred by the District in connection with the Exclusion of the Property. The Petitioner hereby requests that the Board approve the Exclusion of the Property from the boundaries of the District and that the District file a motion with the Court requesting that an Exclusion Order be entered, stating that from and after the effective date of the Exclusion Order, the Property shall not be liable for bonded indebtedness, assessments or other obligations of the District which may be incurred after the effective date of the Order. (00132502.DOC v:1) Signed this 17 tnday of September, 2008. REI LIMITED LIABILITY COMPANY, a Wyoming limited liability company -By:— STAIN/ORADO Ina COUNTOFI/1A Name:. i ristine. Hethcock .. Its: Manager Address of Petitioner: 34,60 F_ ilewaac31o`�M'CO g SS. The foregoing instrument was acknowledged before me this /7' day of September, 2008, by Christine Hethcock, as Manager of REI LIMITED LIABILITY COMPANY, a Wyoming limited liability company. Witness my hand and official seal. My commission expires: 6-/)-0 j 12 Mary Public EON Juno 12, {00132502.DOC v:1) 2 EXHIBIT A. Legal Description of Property (00132502.DOC v:11 Beebe Draw Filing 2 Legal Description: Legal Description of a parcel of land being a portion of that certain parcel of land described on the boundary survey recorded April 12, 1995 in Book 1487, Page 123 under Reception No. 2433894 on file in _tire -office -o erk-an o er,— a nty,-. .lox o-situate-inSections ,- , , . , an .. - , Township 3 North, Range 65 West of the Principal- Meridian -being -more -particularly -described as - followss Beginning at the Southwest Corner of said Section 8 and considering the West line of said Section 8 as bearing North 00°09'35" West and with all bearings contained herein relative thereto; thence along said West line North 00°09'35" West 1994.84 feet to a point on the Southerly line of the corrected first filing plat of Beebe Draw Farms and Equestrian Center recorded December 13, 1989 in Book 1251 under Reception No. 02200074 according to the plat on file in the office of the Clerk and Recorder, said County; thence along the boundary of said plat the following 53 courses and distances; South 73°10'00" East 888.37 feet; thence South 16°50'00" West 153.46 feet; thence South 46°50'08" East 749.22 feet; thence North 55°46'07" East 97.84 feet; thence South 46°5923" East 1326.17 feet; thence North 83°33'14" East 694.12 feet; thence North 32°48'49" Bast 257.46 feet to a point on a curve concave to the Northeast having a central angle of 21°56'45" and a radius of 993.66 feet; a radial line passing through said point bears South 31°07'32" West; thence Southeasterly along the arc of said curve 380.60 feet to the end of said curve; thence tangent from said curve South 80°49'12" East 169.63 feet to the beginning of a tangent curve concave to the Southwest having a central angle of 26°11'26" and a radius of 1221.67 feet; thence Southeasterly along the arc of said curve 558.44 feet to the end of said curve; thence tangent from said curve South 54°37'46" East 70.54 feet; thence North 35°22'14" East 150.48 feet; thence North 85°40'29" East 507.75 feet; thence South 87°32'47" East 399.71 feet; thence South 78°20'53" East 391.38 feet; thence North 13°54'57" West 1387.81 feet; thence South 88°16'34" East 170.52 feet; thence South 37°13'43" East 1250.00 feet; thence South 62°09'58" East 450.00 feet; thence South 79°40'14" East 400.00 feet; thence South 75°25'39" East 450.00 feet; thence North 89°41'05" East 398.67 feet; thence North 00°22'03" East 470.01 feet; thence South 89°41'05" West 50.00 feet; thence North 00°22'04" East 495.00 feet; thence North 89°37'55" West 91.83 feet thence North 42°24'27" West 646.46 feet; thence North 72°26'31" West 54.60 feet; thence North 17°17'09" West 207.35 feet thence North 00°16'43" East 348.60 feet; thence North 12°04'51" West 380.71 feet; thence North 06°35'57" West 425.17 feet; thence North 41°32'24" West 327.37 feet; thence North 31°19'19" West 302.66 feet; thence North 23°33'38" West 293.98 feet; thence North 20°5625" West 650.00 feet; thence North 34°55'56" West 423.91 feet; thence North 52°36'54" West 357.78 feet to a point on the South right-of-way line of Beebe Draw Farms Parkway; thence along said South right-of-way line the following three courses and distances; South 37°23'06" West 155.00 feet to the beginning of a tangent curve concave to the Northwest having a central angle of 28°09'58" and a radius of 1141.35 feet; thence Southwesterly along the arc of said curve 561.08 feet to the end of said curve; thence tangent from said curve South 65°33'04" West 266.94 feet; thence North 24°26'46" West 100.00 feet; thence North 46°08'35 West 1117.27 feet thence South 74°02'57" West 850.00 feet to a point on a curve concave to the Southwest having a central angle of 21°01'08" and a radius of 986.23 feet; a radial line passing though said point bears North 62°51'38" East; thence Northwesterly along the arc of said curve 361.80 feet to the end of said curve; thence tangent from said curve North 48°09'30" West 225.00 feet; thence South 41°50'30" West 235.00 feet to the beginning of a tangent curve concave to the Southeast having a central angle of 20°43'40" and a radius of 225.00 feet; thence Southwesterly along the arc of said curve 81.40 feet to the end of said curve; a radial line passing through said end of curve bears North 68°53'10" West; thence departing said curve North 68°53'10" West 1 450.00 feet; thence South 38°50'00" West 331.13 feet; thence North 72°28'11" West 508.22 feet; thence South 86°32'30" West 1532.88 feet; thence South 89°50'25" West 200.00 feet to a point on the West line of said Section 8; thence departing said corrected first filing plat of Beebe Draw Frames and Equestrian Center and along said West line of said Section 8 North 00°09'35" West 206.16 feet to the Northwest Corner of said Section 8; thence along the West line of the Southwest Quarter of said Section 5 North 00°2520" West 2654.03 feet to the West Quarter Corner ofsard Section 5; thence along the West tailor —thallorthwest-Quaruaof-said-Sectitm-5-Narth-001247.71West-1327.22 feet -to -the -Southwest -Comer -of -the - ----- North-Halfof-the-Nerthwest-Quarter ofsaid•Seetion S —thane along-the-Southdineeof.the-North-Half-of-the . .. Northwest Quarter of said Section 5 North 89°4421" East 2631.31 feet to the Southeast Corner of the North Half of the Northwest Quarter of said Section 5; thence along the South line of the Northwest Quarter of the Northeast Quarter from said Section 5 North 89°44'21" East 1331.58 feet to the Southeast Quarter of the Northwest Quarter of the Northeast Quarter of said Section 5; thence along the East line of the Northwest Quarter of the Northeast Quarter of said Section 5 North 00°38'58" West 1325.38 feet to the Northeast Corner of the Northwest Quarter of the Northeast Quarter of said Section 5; thence along the North line of the Northeast Quarter of said Section 5 North 89°39'41" East 1333.17 feet to the Northeast Corner of said Section 5; thence along the North line of the Northwest. Quarter of said Section 4 North 89°45'43" East 2638.09 feet to the North Quarter Corner of said Section 4; thence along the North line of the Northeast Quarter of said Section 4 North 89°24'30" East 805.01 feet; thence departing said North line South 40°03'54" East 9.61 feet; thence South 10°09'16" West 45.49 feet; thence South 27°01'56" West 281.98 feet; thence South 35°02'52" West 129.95 feet; thence South 46°24'35" West 113.95 feet; thence South 67°56'11" West 11441 feet to the beginning of a tangent curve concave to the Southeast having a central angle of 43°14'52" and a radius of 210.00 feet; thence Southwesterly along the arc of said curve 158.51 feet to the end of said curve; thence tangent from said curve South 24°41'19" West 39.72 feet to the beginning of a tangent curve concave to the Southeast having a central angle of 68°10'08" and a radius of 217.23 feet; thence Southeasterly along the arc of said curve 258.45 feet to the end of said curve; thence tangent from said curve South 43°28'49" East 159.97 feet to the beginning of a tangent curve concave to the Southwest having a central angle of 48°38'11" and a radius of 81.88 feet; thence Southwesterly along the arc of said curve 69.51 feet to the end of said curve; thence tangent from said curve South 05°09'21" West 19.20 feet to the beginning of a tangent curve concave to the Northwest having a central angle of 25°54'10" and a radius of 260.90 feet; thence Southwesterly along the arc of said curve 117.95 feet to the end of said curve; thence tangent from said curve South 31°03'31" West 130.58 feet; thence South 09°40'49" West 95.26 feet; thence South 03°11'34" East 116.07 feet to the beginning of a tangent curve concave to the Northeast having a central angle of 36°30'36" East and a radius of 180.24 feet; thence Southeasterly along the arc of said curve 114.85 feet to the end of said curve; thence tangent from said curve South 39°42'10" East 116.57 feet to the beginning of a tangent curve concave to the Northeast having a central angle of 45°22'31" East and a radius of 114.82 feet; thence Southeasterly along the arc of said curve 90.93 feet to the end of said curve; thence tangent from said curve South 85°04'41" East 170.71 feet to the beginning of a tangent curve concave to the Southwest having a central angle of 68°29'30" and a radius of 126.33 feet; thence Southeasterly along the arc of said curve 151.02 feet to the end of said curve; thence tangent from said curve South 16°35'11" Bast 120.95 feet to the beginning of a tangent curve concave to the West having a central angle of 25°35'07" and a radius of 440.41 feet; thence Southwesterly along the arc of said curve 196.66 feet to the end of said curve; thence tangent from said curve South 08°59'57" West 101.24 feet to the beginning of a tangent curve concave to the Northeast having a central angle of 59°32'10" and a radius of 242.34 feet; thence Southeasterly along the arc of said curve 251.82 feet to the end of said curve; thence tangent from said curve South 50°32'12" East 97.62 feet; thence North 89°31'48" East 283.17 feet; thence South 31°18'26" East 113.96 feet; thence South 58°32'01" West 57.39 feet; thence South 31°27'59" East 522.19 feet; thence South 10°25'00" East 99.33 feet; thence South 33°44'57" East 157.31 feet; thence South 51°33'07" West 95.52 feet; thence South 2 00°23'23" East 177.92 feet; thence South 10°18'08" East 78.26 feet; thence South 30°46'04" East 152.46 feet thence South 47°55'59" East 265.05 feet; thence South 37°58'27" West 164.42 feet; thence South 06°08'57" West 239.20 feet; thence South 33°32'01" East 129.62 feet; thence South 74°20'38" East 218.49 feet; thence South 21°05'43" East 136.12 feet; thence South 05°34'34" East 216.02 feet; thence South 40°38'47" East 130.48 feet; thence South 06°37'24" West 112.76 feet; thence South 13°34'05" East 59.67 feet; thence South 35°26'15" East 1362�thence South 49°5928" East 73.11 feet; thence --South-73°0233East449,26-feet-thence-South-28°24371Bast-133:x3-feet;-thence-South a0°2t'43" past _ 12235 -feet; thence-South-3420844A-Eest-468:24 feet;-thence=South-35°26'36'1 East--144,84-feet;-thence South 52°48'46" East 145.60 feet; thence South 53°35'11" East 274.60 feet; thence South 01°31'42" West 75.03 feet; thence South 30°03'25" West 263.26 feet thence South 06°03'06" East 282.44 feet; thence South 25015'38" East 337.55 feet; thence South 23°51'00" East 264.59 feet; thence South 29°30'32" East 174.35 feet; thence South 37°11'17" East 96.99 feet; thence South 52°03'02" Bast 69.68 feet; thence South 55°31'03" East 148.65 feet; thence South 16°11'28" East 138.93 feet; thence South 42°5222" East 177.69 feet; thence South 25°09'33" East 155.19 feet; thence South 24°4722" Bast 180.62 feet; thence South 36°43'50" East 146.03 feet thence South 25°08'32" West 111.15 feet; thence South 02°01'46" East 227.19 feet; thence South 20°03'30" East 193.90 feet; thence South 12°32'52" East 346.85 feet; thence South 10°2225" West 264.13 feet; thence South 05°07'51" West 157.19 feet; thence South 32°32'42" West 220.12 feet; thence South 19°19'50" West 268.66 feet; thence South 38°04'09" West 284.92 feet; thence South 79°43'19" West 714.61 feet; thence South 24°52'21" West 224.67 feet; thence South 07°13'48" East 37.52 feet to a point on the South line of said Section 10; thence along said South line South 89°28'30" West 283.01 feet to the Northeast Corner of said Section 9; thence along the South line of said Section 9 South 89°41'18" West 5121.15 feet to the Northeast Corner of said Section 17; thence along the East line of said Section 17 South 00°30'21" East 5282.59 feet to the Southeast Corner of said Section 17; thence along the South line of said Section 17 South 89°33'05" West 5327.95 feet to the Southwest Corner of said Section 17; thence along the West line of said Section 17 North 00°29'44" West 5259.39 feet to the POINT OF BEGINNING. EXCEPTING THEREFROM the following two (2) parcels: Parcel 1 - School Site Legal Description of a parcel of land being a portion of the Northwest Quarter of Section 4 and the Northeast Quarter of Section 5, Township 3 North, Range 65 West of the a P.M., Weld County, Colorado, being more particularly described as follows: Beginning at the Northwest corner of said Section 4 and considering the North line of the Northwest Quarter of said Section 4 as bearing North 89°45'43" East and with all bearings contained herein relative thereto; thence along said North line North 89°45'43" East 844.05 feet; thence departing said North line South 00°19'37" West 30.00 feet to the TRUE POINT OF BEGINNING; thence South 00°19'37" West 674.51 feet to the beginning of a tangent curve concave to the Northwest having a central angle of 10°04'02" and a radius of 435.00 feet; thence Southwesterly along the arc of said curve 76.43 feet to the end of said curve, a radial line passing through said end of curve bears South 79°3620" East; thence departing said curve South 89°45'34" West 2157.24 feet to a point on the East line of the Northwest Quarter of the Northeast Quarter of said Section 5; thence along said East line North 00°38'58" West 748.22 feet; thence departing said East line North 89°39'41" East 1332.98 feet; thence North 89°45'43" East 843.75 feet to the TRUE POINT OF BEGINNING. 3 Parcel 2 - Fires Station Site Legal Description of a parcel of land being a portion of the Northwest Quarter of Section 4, Township 3 North, Range 65 West of the 6'" P.M., Weld County, Colorado, being more particularly desciibed-as follows* Beginning at the Northwest corner of said Section 4 and considering the North line of the Northwest Quarter of said Section 4 as bearing North 89°45'43" East and with all bearings contained herein relative thereto; thence along said North line North 89°45'43" East 924.06 feet; thence departing said North line South 00°19'37" West 30.00 feet to the TRUE POINT OF BEGINNING; thence North 89°45'43" East 400.02 feet; thence South 00°19'37" West 404.39 feet; thence North 89°4023" West 400.00 feet; thence North 00°19'37" East 400.44 feet to the TRUE POINT OF BEGINNING. Containing 2,266.118 acres, more or less, and is subject to all easements, agreements and rights -of -way of record. 4 EXHIBIT B [attach Amended and Restated Intergovernmental Agreement] {00140119.DOC /) AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT THIS AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT ("Agreement") is made and entered into as of this 3rd day of November, 2008, by and between the BEEBE DRAW FARMS METROPOLITAN DISTRICT NO. 1 ("District No. 1") and the BEEBE DRAW FARMS METROPOLITAN DISTRICT NO. 2 ("District No. 2"; collectively, "Districts" or either of the Districts, a "District"), both quasi -municipal corporations and political subdivisions of the State of Colorado operating within the County of Weld ("County"), Colorado, organized under the provisions of Article 1 of Title 32, C.R.S. RECITALS A. The Districts were organized to facilitate the development of the Beebe Draw Farms and Equestrian Center, also known as Pelican Lake Ranch (the "Development"), by cooperatively providing for the financing, acquisition, construction, installation, completion, operation, maintenance and replacement of public infrastruction improvements and the furnishing of services for the use and benefit of the property owners, residents and users of the public improvements within the Development. B. The Consolidated Service Plan of the Districts dated May 1999 ("Service Plan") and previously approved by the County, requires that the Districts enter into an intergovernmental agreement to, among other matters, coordinate the financing, construction; completion, --operation and maintenance of'th'e"public improvements and the provision of services needed within the Development. C. The Financial Plan in the Service Plan recognizes that District No. 2 will provide for the financing, construction, completion, operation and maintenance of the public improvements needed within the Development, and District No. 1 will impose a property tax levy on all taxable property within its boundaries and, after payment of debt service on its outstanding bonds, will remit the remainder of all taxes and other revenue collected by it to District No. 2. D. In furtherance of such requirements, the Districts previously entered into that certain Intergovernmental Agreement dated August 8, 2001 ("Original Agreement") and now desire to _lent in iso eneirvtjr i.. ,,„ ..,,,. (00141345.DOC /) to better describe and confirm the cooperative relationship and current understandings between the Districts. E. Section 18(2)(a), Article XIV of the Colorado Constitution, Section 29-1-203, C.R.S., and Section 32-1-1001, C.R.S., empower the Districts to enter into contracts and agreements with one another to provide intergovernmental services and facilities, including the sharing of costs, the imposition of taxes, and the incurring of debt, when so authorized by their respective Boards of Directors. F. At the public election held on November 2, 1999, the electors of the Districts authorized the Districts to incur indebtedness and other multi -fiscal year obligations and to enter into agreements relating thereto, including this Agreement, and at prior public elections, District No. l's electors authorized District No. 1 to levy property taxes, incur general obligations, and enter into agreements relating thereto, including this Agreement, in order to provide for the financing, construction and completion of the public improvements and to furnish the services needed within the Development. G. The Boards of Directors of the Districts hereby determine that the terms, conditions and provisions of this Agreement are in the best interests of the Districts and are necessary to implement the provisions of the Service Plan with respect to the intergovernmental cooperation between the Districts and to establish the respective duties and responsibilities of the Districts concerning the economic and efficient development of the public improvements and the provision of services within the Development. AGRAINENT In consideration of the agreements, terms, conditions and authorizations set forth in the Recitals (which are incorporated herein by this reference) and in this Agreement, the adequacy and sufficiency of which are mutually acknowledged, the Districts agree as follows: SECTION 1. DEFINITIONS AND CONSTRUCTION OF AGREEMENT Section 1.1 Definitions. For all purposes of this Agreement, unless the context expressly indicates differently, the terms defined in this Section shall have the following incorporated herein by this reference. If any term is (00141345.DOC it capitalized in this Agreement but not defined herein, it shall have the meaning set forth in the Service Plan. a. "Administrative Expenses" means those costs incurred by District No. 2 for the purpose of administering the Districts as governments and operating and maintaining the Public Improvements as further provided in Section 5.6. b. "Agreement" means this Amended and Restated Intergovernmental Agreement between the Districts, as may be amended or supplemented in writing from time to time. c. "Board" or "Boards" means the Board of Directors of District No. 1 or District No. 2, as applicable, or the Boards of both Districts. d. "County" means the County of Weld, Colorado. e. "Default" or "Event of Default" means one or more of the events described in Section 6.1. f. "Developer Advances" means all funds advanced to District No. 2 by developers or other persons pursuant to any funding, reimbursement, acquisition or redevelopment agreement, and any bond, note or other obligation evidencing or securing such borrowing, that are applied for payment of costs incurred for Administrative Expenses of the Districts, for the Process of Construction, or for other public purposes, and are repayable from Project Revenues or from other legally available revenues of the Districts. g. "District" or "Districts" means either District No. 1 or District No. 2, as applicable, or both District No. 1 and District No. 2. (00141345.DOC /1 h. "District No. 1" Metropolitan District 20, 1986 as Beebe District, a Colorado successor or assign. means the Beebe Draw Farms No. 1, organized on August Draw Farms Metropolitan special district, and any i. "District No. 1 Pledged Revenues" means all revenues received from (i) the District No. 1 R®gmixed--U* ±—L-evy after payrei'L of pri^c 1 —of and interest on the 1998 Bonds, (ii) specific ownership taxes, and (iii) all rates, fees, tolls 3 and charges imposed or collected within the Districts pursuant to Section 4.2, including without limitation facility fees and water tap fees, unless otherwise pledged for the repayment of Obligations, and remitted to District No. 2 pursuant to Section 4 for payment of (i) any Obligations other than the 1998 Bonds, (ii) the costs of the Process of Construction, and (iii) the payment of Administrative Expenses, all in conformance with the Funding Priorities. j. "District No. 1 Required Mill Levy" means the property tax levy required to be imposed by District No. 1 in accordance with Section 4.1 upon all real and personal property in District No. 1 and such other property that may be obligated by virtue of law for payment on the 1998 Bonds, at a rate determined annually by the Board of District No. 2, and all property tax revenue generated therefrom, subject to the following limitations: (i) The District No. 2 Required Mill Levy shall be the same as the District No. 1 Required Mill Levy minus the amount of the District No. 1 Required Mill Levy levied against taxable property within District No. 2 pursuant to Section 32-1-503(1), C.R.S., which is necessary for District No. 1 to make payment on the 1998 Bonds, so that the total mill levy on all property within the Districts is uniform (by way of example, if the District No. 1 Required Mill Levy is 40 mills and the portion required for payment on the 1998 Bonds is 10 mills, the District No. 2 Required Mill Levy shall be 30 mills); (ii) the District No. 1 Required Mill Levy shall not exceed the Mill Limitation; and (iii) the District No. 1 Required Mill Levy shall not be less than a rate sufficient to pay, when due, (A) the principal of and interest on the 1998 Bonds, and (B) all other Obligations until all Obligations have been fully repaid and discharged, and (C) all Administrative Expenses. k. "District No. 2" means the Beebe Draw Farms Metropolitan District No. 2, organized on November ?-4 —1999 ukoradosgoci�i-ctZ and marl successor or assign. (00141345.0OC /{ 4 1. "District No. 2 Required Mill Levy" means the property tax levy required to be imposed by District No. 2 upon all real and personal property in District No. 2 at a rate determined annually by the Board of District No. 2, and all property tax revenue generated therefrom, subject to the following limitations: (i) The District No. 2 Required Mill Levy shall be the same as the District No. 1 Required Mill Levy minus the amount of the District No. 1 Required Mill Levy levied against taxable property within District No. 2 pursuant to Section 32-1-503(1), C.R.S., which is necessary for District No. 1 to make payment on the 1998 Bonds, so that the total mill levy on all property within the Districts is uniform (by way of example, if the District No. 1 Required Mill Levy is 40 mills and the portion required for payment on the 1998 Bonds is 10 mills, the District No. 2 Required Mill Levy shall be 30 mills); (ii) the District No. 2 Required Mill Levy shall not exceed the Mill Limitation; and (iii) the District No. 2 Required Mill Levy shall not be less than a rate sufficient to pay, when due, (A) all Obligations (other than the 1998 Bonds) until all Obligations have been fully repaid and discharged, and (B) all Administrative Expenses. m. "Election" means the special election conducted by each District on November 2, 1999, at which the electors of each District authorized the District to incur Obligations and enter into agreements related thereto, including without limitation this Agreement. n. "Financial Plan" means the financial plan of the Districts as set forth in the Service Plan, including any amendment or modification thereof. o. "Fiscal Year Budget" means the annual District budget and appropriation resolution duly adopted or amended by the Board in accordance with State law. p. "Funding Priorities" has the meaning set forth in Section 3.1(d). (00141345.DOC /1 5 q. "Mill Limitation" means (i) any limitation on the District No. 1 or District No. 2 Required Mill Levy as set forth in the Service Plan or in any ballot issue approved at the Election and (ii) a limitation on the rate of the property tax levy which shall not exceed 40 mills for all purposes. r. "Obligations" means all limited rate general obligation bonds, revenue bonds, notes, contracts, or funding, reimbursement, acquisition or redevelopment agreements of the Districts, including without limitation the 1998 Bonds, Developer Advances and refunding Obligations, that are secured by the District No. 1 Required Mill Levy, the District No. 1 Pledged Revenues or the Project Revenues as provided in any resolution, indenture or agreement authorizing the issuance of such Obligations. s. "Process of Construction" or "Processing of Construction" means the activities, in part or all together, of District No. 2 with respect to providing, completing and/or acquiring the Public Improvements needed for the Development, including without limitation the planning, design, engineering, testing, permitting, inspecting, construction, construction management, installation, completion and replacement of the Public Improvements. t. "Project Revenues" means all amounts received by District No. 2 from (i) the imposition of the District No. 2 Required Mill Levy, (ii) the District No. 1 Pledged Revenues, (iii) specific ownership taxes, and (iv) all rates, fees, tolls and charges imposed or collected within the Districts for the (A) repayment of any Obligations (other than the 1998 Bonds), (B) payment of the costs of the Process of Construction, and (C) payment of Administrative Expenses, all in conformance with the Funding Priorities. u. "Public Improvements" means the streets, drainage, traffic and safety controls, water, parks and recreation, mosquito control, transporta Lirorranc -H—other puULc rovememts, _ facilities, equipment, land and related {00141345.DOC /I 6 appurtenances described or authorized in the Service Plan. v. "Service Area" means the entire area of the Development, including all property within the boundaries of the Districts. w. "Service Plan" means the Consolidated Service Plan of the Districts dated May 1999, as may be amended or modified in writing from time to time with the approval of the County. x. "Term" means the period of time commencing on the date when this Agreement has been executed by each District and ending when District No. 2 has completed all Public Improvements, all Obligations have been repaid, and District No. 2 has been dissolved or consolidated with District No. 1 in accordance with provisions of the Article 1 of Title 32, C.R.S. y. "1998 Bonds" means the General Obligation Bonds, Series 1998 of District No. 1 in the original principal amount of $2,000,000 and the principal of and interest due per the 1998 Bond repayment schedule in accordance with the terms of the 1998 Bond Resolution, and any refunding or refinancing bonds issued in accordance with the 1998 Bond Resolution. The principal amount outstanding on the 1998 Bonds as of the date of execution of this Agreement is approximately $1,475,000. z. "1998 Bond Resolution" means the Resolution authorizing the issuance of the 1998 Bonds adopted by the Board of District No. 1 on October 21, 1998. Section 1.2 Construction of Agreement. For all purposes hereunder, unless the context expressly indicates differently, all definitions, terms, and words shall include both the singular and plural. Whenever "shall" or "will" is used herein, it shall be mandatory; "may" denotes that it is preferable or permissible, but not mandatory. Whenever "Party" or "Parties" is used herein, it shall refer to either District or both Districts. A reference herein to an act of "approval" may, if applicable, include a . ictarerrEcertD _ Sections herein are to sections of this Agreement, unless otherwise specified. (00141345.DOC /f 7 SECTION 2. PURPOSE The purpose of this Agreement is to establish the intergovernmental relationship between the Districts in compliance with the Service Plan and to implement the terms of the Service Plan with respect to the cooperation between the Districts relating to the financing, Processing of Construction, operation and maintenance of the Public Improvements, and the provision of services within the Service Area. While each District is an independent special district, the Districts will cooperate with each other in accordance with the terms of this Agreement, unless the Districts subsequently agree to perform any administrative or management function independently by execution of an amendment of this Agreement. This Agreement shall, in all circumstances, be interpreted consistently with the Service Plan and the intended responsibilities of each District in implementing the Service Plan. SECTION 3. REPRESENTATIONS AND WARRANTIES Section 3.1 Representations and Warranties. The Board of each District represents, acknowledges, warrants and agrees for the benefit of the other District that to the best of its actual knowledge: a. The execution and delivery of this Agreement and the documents required hereunder and the consummation of the transactions contemplated by this Agreement will not (i) conflict with or contravene any law, order, rule. or regulation.. applicable to the District or to the District's governing documents, including the Service Plan; (ii) result in the breach of any of the terms or provisions or constitute a default under any obligation, agreement or other instrument to which the District is a party or by which it may be bound or affected; or (iii) permit another party to terminate any such agreement or instrument or to accelerate the maturity of any indebtedness or other obligation of the District; b. The Board has duly approved this Agreement; c. This Agreement is a valid and binding obligation of the District enforceable according to its terms, except to the extent limited by bankruptcy, insolvency and other laws of general application affecting creditors' rights and by equitable pr n ip , whether considered at law or in equity, _ subject to all limitations set forth herein; 100141345.DOC /) 8 d. All revenues received by District No. 1 from the District No. 1 Required Mill Levy and all Project Revenues received by District No. 2 shall be expended in accordance with the priorities set forth in Sections 4.1.(b) and 5.1.(c) (the "Funding Priorities"); e. Each District may rely upon and enforce all representations, warranties and agreements set forth in this Agreement; and f. The Districts, and not the County, shall be responsible for paying all debts and liabilities of the Districts. Section 3.2 Performance of Agreement. Each District acknowledges and agrees that the performance of this Agreement over the full Term is essential to the implementation of and compliance with the Service Plan and that any material departure from the terms of this Agreement by either District, or any unilateral attempt by either District to materially alter the terms of or to terminate this Agreement, except as authorized hereunder, is and shall constitute an Event of Default and a material departure from the Service Plan which, in addition to any other remedy set forth herein, the non -defaulting District shall be entitled to enjoin in accordance with Section 32-1-207, C.R.S. SECTION 4. DISTRICT NO. 1 RESPONSIBILITIES Section 4.1 Imposition of the District No. 1 Required Mill Levy. Until such time as (i) the 1998 Bonds and all other Obligations, including without limitation all Obligations issued pursuant to the Developer Advances, have been paid in full or payment thereof has been provided for, (ii) all of the Public Improvements have been completed and paid for, (iii) payment of the Administrative Expenses has been provided for, and (iv) District No. 2 has been dissolved or consolidated with District No. 1, District No. 1 shall: a. Certify the District No. 1 Required Mill Levy no later than December 1 of each year in accordance with statutory requirements and provide prompt written notice of such certification to District No. 2, pursuant to the following process: (i) For the 2009 fiscal and property tax collection year, the District No. 1 Required Mill Levy shall be all taxable property in District No. 2. On or before December 1, 2008, District No. 1 shall adopt a resolution establishing and {00141345.DOC /1 9 ) certifying the District No. 1 Required Mill Levy at a rate of 40 mills. District No. 1 shall provide prompt written notice to District No. 2 of such certification. Upon receipt from the County of the revenues from the District No. 1 Required Mill Levy, District No. 1 shall identify and segregate that portion of the revenues received from the District No. 1 Required Mill Levy necessary for payment of principal of and interest on the 1998 Bonds per the 1998 Bond repayment schedule. District No. 1 shall make payment on the 1998 Bonds when due. District No. 1 shall remit the District No. 1 Pledged Revenues to District No. 2 within 15 business days of receipt of such revenues from the County. (ii) Commencing with the 2010 fiscal and property tax collection year and for each year thereafter during the Term, District No. 2 shall determine and, on or before November 1, advise District No. 1 of the District No. 1 Required Mill Levy to be included in the Fiscal Year Budget for the next fiscal year. On or before November 15 of each year, District No. 1 shall provide written notice to District No. 2 of any reasonable objections it may have to the District No. 1 Required Mill Levy, which objections shall be limited to non-compliance with the Service Plan or non-compliance with the terms of this Agreement. If no written objections are received by District No. 2 by November 15, District No. 1 shall be deemed to have consented to the District No. 1 Required Mill Levy, and District No. 1 shall, no later than December 1 of each year, adopt a resolution establishing and certifying the District No. 1 Required Mill Levy and shall provide prompt written notice to District No. 2 of such certification. Upon receipt of the revenues from the District No. 1 Required Mill Levy from the County, District No. 1 shall identify and segregate that portion of the revenues received form the District No. 1 Required Mill Levy necessary for payment of principal of and interest on the 1998 Bonds per the 1998 Bond repayment schedule. District No. 1 shall make payment on the 1998 Bonds when due. District No. 1 shall remit the District No. 1 Pledged Revenues to District No. 2 within 15 business days of receipt of such revenues from the County. (iii) It shall District No. 1 fails to certify the Levy by December 1 of any year or Pledged Revenues to District No. 2. 2 shall have the rights and remedies be an Event of Default if District No. 1 Required Mill to remit the District No. 1 In such event, District No. set forth in Section 6.3. b. All property tax revenue received by District No. 1 from the District No. 1 Required Mill Levy shall Bond repayment schedule, and then the District No. 1 Pledged (00141345.0O0 /I 10 Revenues shall be remitted to District No. 2 pursuant to the provisions hereof. c. The provisions of this Section are hereby declared to be the certificate of the Board of District No. 1 to the County authorizing the District No. 1 Required Mill Levy to be levied by the County, from year to year, as required by law for the purposes set forth herein. d. It shall be the duty of the Board of District No. 1 annually, at the time and in the manner provided by law for the adoption of the Fiscal Year Budget and the levy of property taxes, to ratify and carry out the provisions of this Section with reference to the establishment, levy and collection of the District No. 1 Required Mill Levy. The Board of District No. 1 shall levy, certify and collect the District No. 1 Required Mill Levy for the purposes and in the manner provided by law and for the purposes and in the manner set forth in the 1998 Bond Resolution and this Agreement. District No. 1 in cooperation with District No. 2 shall pursue any reasonable remedy available to collect, or cause the collection of, delinquent property taxes and remit all amounts realized from the sale of any real or personal property for delinquent taxes to District No. 2 (not required for payment of principal of and interest on the 1998 Bonds) in accordance with the provisions of this Agreement. e. District No. 1 shall be prohibited from retaining, appropriating, expending, pledging or otherwise encumbering any portion of the District No. 1 Pledged Revenues that are received by District No. 1 for any purpose, and all of such revenues and monies shall be transferred and paid to District No. 2 in accordance with the provisions of this Agreement. f. At any and all times, District No. 1 shall, to the extent authorized by law, pass, make, do, perform, execute, acknowledge and deliver any and all further agreements, acts, conveyances, assignments, transfers, certifications and assurances as may be necessary or desirable for the better assuring, effecting, confirming, undertaking and completing any and all obligations, duties, responsibilities and acts, or as may otherwise be reasonably required to carry out the terms and purposes of this Agreement and to comply with the Service Plan. Section 4.2 Rates, Fees and Charges. During the Term, District No. 1 shall adopt, impose and remit to District No. 2 such rates, fees, tolls and charges as are established by Obligations or to fund the Process of Construction costs and the Administrative Expenses of the Districts, and such rates, fees, (00141345.DOC /1 11 tolls and charges shall be deemed part of the District No. 1 Pledged Revenues. The procedures for adopting, budgeting and transferring such fees will be established by District No. 2. Section 4.3 District No. 1 Obligations. Other than the remittance of the District No. 1 Pledged Revenues to District No. 2, District No. 1 shall incur no direct Obligations, Developer Advances, or direct costs for Processing of Construction of the Public Improvements or for any other purpose, except for the repayment of the 1998 Bonds, unless otherwise approved in writing by each District. Section 4.4 Inclusion and Exclusion of Property. As contemplated in the Service Plan, District No. 1 shall process and approve the inclusion of platted property that is excluded from District No. 2 following infrastructure development. Upon petition of any property owner for the inclusion or exclusion of any other property into or from District No. 1, the Board of District No. 1 shall, prior to conducting any public hearing thereon, notify District No. 2 of such petition in writing. Before granting any petition for inclusion of such property into District No. 1, the Board of District No. 1 shall impose all conditions for inclusion established by District No. 2. District No. 1 shall exclude no property from District No. 1 without the prior written approval of District No. 2. All taxable property located within the original boundaries of District No. 1 shall remain liable for the repayment of its proportionate share of outstanding 1998 Bond indebtedness thereon in accordance with State law. Section 4.5 Dissolution of District No. 2. Upon receipt of notice and the dissolution of District No. 2 in accordance with the Service Plan, District No. 2 shall transfer, and District No. 1 shall accept responsibility for the operations and maintenance of all Public Improvements located within the Service Area that have not been transferred to the County or another district or public agency. Section 4.6 Organization of Additional Districts. No other special district or subdistrict shall be organized within the boundaries of either of the Districts without (i) the prior consent in writing of the affected District in accordance with State law and (ii) the County's approval of an amendment of the Service Plan relating thereto. SECTION 5. DISTRICT NO. 2 RESPONSIBILITIES Section 5.1 Imposition of the District No. 2 Required Mill Levy. Until such time as (i) the 1998 Bonds and all (00141345.DOC /) 12 other Obligations, including without limitation all Obligations issued pursuant to the Developer Advances, have been paid in full or payment thereof has been provided for, (ii) all of the Public Improvements have been completed and paid for, (iii) payment of the Administrative Expenses has been provided for, and (iv) District No. 2 has been dissolved or consolidated with District No. 1, District No. 2 shall: a. Provide written notice to District No. 1 of the District No. 1 Required Mill Levy in accordance with Section 4.1(a). b. Commencing with the 2010 fiscal and property tax collection year and for each year thereafter during the Term, certify the District No. 2 Required Mill Levy on property within its boundaries no later than December 1 of each year in accordance with statutory requirements. c. District No. 2 shall apply the Project Revenues in the following priority: (i) first, for payment of Administrative Expenses; then (ii) funding on or before December 31, 2009 a reserve for the repayment of the 1998 Bonds in the amount of $200,000 ("Bonds Reserve"); then (iii) payment of the Process of Construction costs and the repayment of all Obligations other than the 1998 Bonds; and then (iv) the funding of any other amenities, facilities or equipment as may be determined beneficial to the Development or as may otherwise be provided in this Agreement. d. In the event District No. 1 does not receive sufficient revenues from its District No. 1 Required Mill Levy to make payment of principal of and interest on the 1998 Bonds, District No. 2 shall remit funds from the Bond Reserve to District No. 1 in an amount sufficient for District No. 1 to make payment on the 1998 Bonds. At such time when the 1998 Bonds are paid in full, the Bond Reserve shall be released to District No. 2 for expenditure in accordance with the Funding Priorities. e. The provisions of this Section are hereby declared to be the certificate of the Board of District No. 2 to the County authorizing the District No. 2 Required Mill Levy to be levied by the County, from year to year, as required by law for the purposes set forth herein. f. It shall be the duty of the Board of District No. 2 annually, at the time and in the manner provided by law for the adoption of the Fiscal Year Budget and the levy of property taxes, to ratify and carry out the provisions of this Section District No. 2 Required Mill Levy, including without limitation 1 conducting a special election in November 2009 to authorize the (00141345.DOC /) 13 District No. 2 Required Mill Levy and any other obligations requiring electoral approval set forth herein. The Board of District No. 2 shall levy, certify and collect the District No. 2 Required Mill Levy for the purposes and in the manner provided by law and for the purposes and in the manner set forth in this Agreement. District No. 2. in cooperation with District No. 1 shall pursue any reasonable remedy available to collect, or cause the collection of, delinquent property taxes and apply all amounts realized from the sale of any real or personal property for delinquent taxes in accordance with the provisions of this Agreement. g. At any and all times, District No. 2 shall, to the extent authorized by law, pass, make, do, perform, execute, acknowledge and deliver any and all further agreements, acts, conveyances, assignments, transfers, certification and assurances as may be necessary or desirable for the better assuring, effecting, confirming, undertaking and completing any and all obligations, duties, responsibilities and acts, or as may otherwise be reasonably required to carry out the terms and purposes of this Agreement and to comply with the Service Plan. Section 5.2 General Responsibilities. District No. 2 shall exercise such duties and authority and shall have all the powers as are generally provided by State law and in the Service Plan. District No. 2, in its reasonable discretion, shall perform the following services and exercise the following powers for and on behalf the Districts: a. Manage and control the financing of the Public Improvements and the Processing of Construction, the payment of Administrative Expenses, and the completion of all actions, activities and work required to implement the Service Plan and this Agreement in conformance with the Funding Priorities; b. Budget and appropriate monies for public purposes in conformance with the Funding Priorities and provide for the payment of all expenses of the Districts; c. Establish uniform rules and regulations for the inclusion of property into the Districts in accordance with the provisions of the Service Plan; d. Adopt and enforce uniform rules and regulations for administrative and operating purposes applicable throughout the Service Area; a Estabi�:sh—al connections fees, tap fees, system development fees, facility fees, and other rates, fees, tolls and charges for the provision {00141345.DOC /) 14 of the Public Improvements and services within the Districts, which shall be applied uniformly throughout the Service Area; f. Negotiate, prepare and enter into all applications, permits, licenses, agreements or other documents necessary to secure all applicable federal, State, County, and local approvals or other governmental authorizations for the financing, Processing of Construction, and operation and maintenance of the Public Improvements; g. Own, manage, operate, maintain and replace the Public Improvements and all property of the Districts for the general benefit of and use by all property owners, residents and related persons within the Service Area, without discrimination between the various areas of the Districts, until transferred to the County or another district or public agency. To the extent not previously effectuated, District No. 1 hereby transfers and assigns all of its interests in the Public Improvements and property of the Districts to District No. 2 for public use, subject to all limitations and conditions set forth herein; and h. Take all other actions required to implement and comply with the Service Plan and all agreements affecting the business affairs and interests of the Districts to which the District is or may become a party. Section 5.3 Financing of Public Improvements. District No. 2 shall finance and provide for the Process of Construction of all Public Improvements as required for each phase of the Development by incurring Obligations or using Project Revenues to pay the costs of the Process of Construction in conformance with the Funding Priorities and the provisions of the Service Plan. District No. 2 shall incur no Obligation which obligates District No. 1 or properties within District No. 1 for repayment of such Obligation except from the District No. 1 Pledged Revenues imposed, collected and remitted in accordance with the provisions hereof. District No. 2 shall apply and expend the Project Revenues in conformance with the Funding Priorities. Section 5.4 Completion of Public Improvements. District No. 2 shall be responsible for the construction, completion, operation and maintenance of the Public Improvements in accordance with the provisions of this Agreement and the Service Plan. District No. 2 shall, in its discretion, make all determinations relating to the expenditure of any Project Revenues and proceeds of Obligations for Processing of Process of Construction costs, or for any other purpose with respect to the implementation, performance or enforcement of the 100141345.DOC /1 15 terms of this Agreement. Except as provided for herein for the remittance of the District No. 1 Pledged Revenues to District No. 2, District No. 1 shall have no responsibility for the financing, Processing of Construction, or the operation and maintenance of the Public Improvements. District No. 2 may transfer certain Public Improvements to the County or another public agency for ownership, operation and maintenance in accordance with the provisions of the Service Plan or intergovernmental agreements. District No. 2 shall own, manage, operate and maintain for the benefit of all property owners, residents and related persons within the Districts, without discrimination between the various areas of the Districts, all Public Improvements that are not transferred to the County or another public agency. All streets and roads owned and operated by District No. 2 shall be open for public use, subject to reasonable regulations, and shall be maintained in conformance with County road standards. All other Public Improvements and facilities of the Districts shall be available for public use, subject to reasonable regulations, and shall be maintained in a commercially reasonable manner. Section 5.5 Management of Districts. District No. 2 shall manage and administer all business affairs of the Districts, including without limitation the hiring and engagement of all employees, independent contractors, consultants, advisors, accountants, auditors, attorneys and other personnel, record - keeping, accounting and financial services, payment of Administrative Expenses, liability and property insurance, and all actions relating to statutory compliance. An executive committee of the Boards shall be constituted to facilitate ongoing communication between District No. 1 and District No. 2. The executive committee shall be composed of the president of each Board and shall also include one other Board member of each District who shall be appointed, removed, and replaced by actions of the applicable appointing Board from time to time. The executive committee shall meet periodically to discuss general management issues and to provide any comments on such issues in writing to the Boards for consideration. The executive committee may, as it deems appropriate, make recommendations to the Boards on issues on the respective Board's agenda. The executive committee may, as it deems appropriate, provide recommendations to the Boards on ways to implement the decisions of the Boards in a manner consistent with the provisions and authority conferred upon each of the Districts under this Agreement. The executive committee may, as it deems appropriate, provide recommendations to the Boards on ways to implement the provisions of the Service Plan. Additionally, lhe—executive--committior—may—mmmnioatc -trT---a District on any other matter as may be directed by the other District. In no event will the executive committee have any (00141345.DOC /1 16 authority to make decisions or interfere with the decisions of the Districts. Section 5.6 Administrative Expenses. To the extent that adequate funding is available from Project Revenues and other legally available sources as provided in the Fiscal Year Budget, District No. 2 shall (i) manage, operate, maintain, repair and replace all Public Improvements not transferred to the County or another district or public agency, and (ii) generally administer the operations and business of the Districts, including without limitation the payment of all Administrative Expenses or other costs associated therewith. Section 5.7 Facility Fees and Water Tap Fees. District No. 1 has entered into certain facility fee and water tap fee agreements with developers within the District. All facility fees and water tap fees paid pursuant to such agreements (regardless of designation) shall be considered Project Revenues, unless previously pledged for the repayment of any Obligations, and shall be collected and used by District No. 2 for the completion of the Public Improvements in accordance with the provisions of Section 5.4. As recognized under the Original Agreement, this Agreement shall constitute an assignment to District No. 2 of all rights and interests of District No. 1 in and to such facility fees and water tap fees. SECTION 6. EVENTS OF DEFAULT AND REMEDIES Section 6.1 Events of Default by Districts. Subject to the terms of Section 6.5, a Default or an Event of Default by either Party under this Agreement shall mean one or more of the following events: a. Any representation or warranty made in this Agreement by a Party which was materially inaccurate when made or is proven to be materially inaccurate during the Term; b. Failure of District No. 1 to impose the District No. 1 Required Mill Levy in any year or to remit District No. 1 Pledged Revenue to District No. 2; or c. Failure of District No. District No. 2 Required Mill Levy in any year; 2 to impose the or d. A Party fails to substantially observe, comply with or perform any material responsibility, obligation, duty or agreement required of it under this Agreement; provided, arc — perform any responsibility or obligation hereunder shall not relieve or release either District from imposing the District No. {00141345.DOC /k 17 1 or District No. 2 Required Mill Levy, as applicable, and further provided that failure by either District to observe or perform any duty, responsibility or obligation hereunder shall not relieve or release the other District from making any payment, levying any property tax, otherwise performing its responsibilities hereunder, or result in an amendment or the termination of this Agreement. Section 6.2 Cure Period. Except as more specifically provided in subsection a. hereof with regard to District No. l's failure to impose the District No. 1 Required Mill Levy, upon the occurrence of an Event of Default by either Party, such Party shall, upon written notice from the other Party, proceed promptly to cure or remedy such Default. Such Default shall be cured within 30 days (or immediately with respect to a monetary payment Default) after receipt of such notice, or, if such default is of a nature which is not capable of being cured within such time period, curative action shall be commenced within the cure period and diligently pursued to completion. a. In the event that District No. 1 fails to impose the District No. 1 Required Mill Levy or District No. 2 fails to impose the District No. 2 Required Mill Levy by December 1 of any year, the defaulting District shall have no opportunity to cure and, in order to ensure that the District No. 1 Required Mill Levy or the District No. 2 Required Mill Levy, as applicable, is certified by December 15 of such year, the non - defaulting District, may, without further notice to the defaulting District, immediately proceed with the remedies set forth in Section 6.3. Section 6.3 Remedies on Default. Whenever an Event of Default occurs and is not cured or cure undertaken in accordance with the provisions of Section 6.2, the non -defaulting Party may take any one or more of the following actions: a. Recovery of actual costs and damages, including reasonable attorney fees and related expenses, through any action available at law or in equity, including without limitation the right of District No. 2 to certify to the County for collection against all taxable property within District No. 1, the amount of such costs and damages as a delinquent fee for services provided by District No. 2 in accordance with the procedures set forth in Section 32-1-1101(1)(e), C.R.S., or other special proceedings; b. In the event that either District has not Levy, as applicable, the provisions of 100141345.0O0 /1 the non -defaulting District may, subject to the 1998 Bond Resolution, enforce the 18 defaulting District's obligation to certify the District No. 1 or District No. 2 Required Mill Levy, as applicable, by mandamus or other action or special proceeding; c. In the event that District No. 2 fails to perform any management or operational responsibility specified herein and to cure or remedy such Default within the applicable cure period, District No. 1 may exercise temporary management responsibility over, or petition the District Court to appoint a conservator for, the Public Improvements and facilities of the Districts, including without limitation the levy, collection and expenditure of the Project Revenues to repay any Obligations currently due and to pay the Administrative Expenses of the Districts, until District No. 2 has cured or remedied such Default. In no event shall this Agreement be amended by District No. 1 in the event District No. 1 exercises its rights under this subsection c.; and d. Any other remedy available at law, in equity, or specified under the terms of this Agreement or the Service Plan, including without limitation specific performance or injunction. Section 6.4 Waivers. Except as otherwise expressly provided in this Agreement, any delay by either Party in asserting any right or remedy under this Agreement shall not operate as a waiver of any such right or limit such right in any way. Any waiver in fact made by such Party with respect to any Default by the other Party shall not be considered as a waiver of rights with respect to any other Default by the non -defaulting Party or with respect to the particular Default, except to the extent specifically waived in writing. It is the intent of the Parties that this provision will enable each Party to avoid the risk of being limited in the exercise of any right or remedy provided in this Agreement by waiver, laches or otherwise at a time when it may still hope to resolve any problem created by such Default. Section 6.5 Unavoidable Delay in Performance. Whether stated or not, all periods of time in this Agreement are subject to the provisions of this Section. Neither Party shall be considered in Default of its obligations under this Agreement in the event of unavoidable delay due to: (i) causes beyond its control and without its fault or negligence, including without limitation acts of God, public enemies, the federal, State, County or other local governments, the other Party or third parties, litigation concerning the validity and enforceability of Agreement or relating to transactions contemplated herein (including the effect of petitions for initiative or referendum), (00141345.DOC /1 19 fires, floods, epidemics, restrictions, strikes, embargoes, and unusually severe weather or the delays of contractors or materialmen due to any of such causes; (ii) bankruptcy, insolvency, reorganization or similar actions under laws affecting creditor's rights, or any foreclosure or other exercise of remedies of any creditor or lender in connection therewith; and (iii) without limiting any of the foregoing, any action or inaction of the County, its officers, agents, agencies, departments, committees or commissioners which delays, directly or indirectly, the District's ability to perform, complete or comply with any schedule or requirement imposed by this Agreement, the Service Plan, or any Public Improvement project. In the event of the occurrence of such unavoidable delay, the time or times for performance of the obligations of the Party claiming delay shall be extended for the actual period of such delay; provided that the Party seeking the benefit of the provisions of this Section shall, within 30 days after such Party knows of such delay, first notify the other Party of the specific delay in writing and claim the right to an extension of performance for the period of such delay; and provided further that either Party's failure to notify the other of an event constituting an unavoidable delay shall not alter, detract from or negate its character as an unavoidable delay, if such event of delay was not known or reasonably discoverable by such Party. Section 6.6 Rights and Remedies Cumulative. The rights and remedies of the Parties under this Agreement are cumulative, and the exercise by either Party of any one or more of such rights shall not preclude the exercise by it, at the same or different times, of any other right or remedy specified herein for any other Default by the other Party. SECTION 7. MISCELLANEOUS PROVISIONS Section 7.1 Title of Sections. Any title of the several parts and sections of this Agreement are inserted for convenience or reference only and shall be disregarded in construing or interpreting any of its provisions. Section 7.2 Effective Date. This Agreement shall be in full force and effect and be legally binding upon each District upon the date of its execution by the Parties. On and after the effective date, the Original Agreement shall be terminated, amended and superseded in its entirety by this Agreement. All terms and provisions of this Agreement shall apply to any and all actions and requirements of each District for the 2009 Fiscal Year and each Fiscal Year thereafter during the Term. Section 7.3 No Third -Party Beneficiary. No third -party beneficiary rights shall be created in favor of any person not a (00141345.DOC /1 20 Party to this Agreement, unless the Parties mutually agree otherwise in writing. Section 7.4 Applicable Law. The laws of the State of Colorado shall govern the interpretation and enforcement of this Agreement. Venue shall be exclusive to the District Court in and for Weld County, Colorado. Section 7.5 Assignment. This Agreement shall not be assigned, in whole or in part, by either Party without the approval in writing of the other Party. This Agreement shall be binding on the Parties, their successors and assigns. Section 7.6 Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable, in whole or in part, under present or future laws effective during the Term, such provision shall be fully severable, and this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part of this Agreement. The remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by the severance of such provision from this Agreement. Further, in lieu of such illegal, invalid or unenforceable provision, there shall be added, as part of this Agreement, a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and still be legal, valid and enforceable, and this Agreement shall be deemed reformed accordingly. Without limiting the generality of the foregoing, if all or any portion of the payments required by the terms of this Agreement are determined by a court of competent jurisdiction in a final non -appealable judgment to be contrary to public policy or otherwise precluded, the Parties shall proceed in good faith to promptly restructure and/or amend this Agreement, or to enter into a new agreement to effectuate such purpose. Section 7.7 Service Plan Modifications. Neither District shall publish, without providing prior written notice to the other District and the County, any notice pursuant to Section 32- 1-207(3), C.R.S., of its intent to undertake the construction of any Public Improvement, the issuance of Obligations, the imposition of the Required Mill Levy or any other tax, rate, toll, fee or charge, or any other proposed activity of such District that is not consistent with the terms of the Service Plan or this Agreement and that would require any action to enjoin such activity as a potential or actual material departure from the Service Plan of such District be brought within 45 days (00141345.DOC /) 21 Section 7.8 Amendments. This Agreement may be amended, in whole or in part, by written instrument executed by the Parties. Each amendment, which is in writing and signed and delivered by the Parties, shall be effective to amend the provisions hereof. Section 7.9 Entirety. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and replaces in their entirety any prior agreements, understandings, warranties or representations between the Parties with respect to the subject matter hereof, including without limitation the Original Agreement. Section 7.10 Counterparts. This Agreement may be executed in counterparts, each of which shall constitute one and the same instrument. Section 7.11 Notices. A notice or demand under this Agreement by either Party to the other Party shall be in writing and shall be deemed sufficiently given if delivered in person, by prepaid overnight express mail or national overnight courier service, or if forwarded by registered or certified mail, postage prepaid, return receipt requested, by electronically -confirmed facsimile transmission, and addressed as follows: a. Until subsequently changed, to: Beebe Draw Farms Metropolitan District No. 1 Attention: President 16500 Beebe Draw Farms Parkway Platteville, Colorado 80651 Beebe Draw Farms Metropolitan District No. 2 Attention: President 3600 South Logan, Suite 200 Englewood, Colorado 80110 With a copy to: Paul R. Cockrel Collins Cockrel & Cole, P.C. 390 Union Boulevard, Suite 400 Denver, Colorado 80228-1556 b. Or to such other address with respect to either Party as that Party may, from time to time, designate in writing and forward to the other Party as provided in this di, courier or express mail delivery, or on the third business day following deposit in the U.S. Mail as provided herein. (00141345.DOC /} 22 Section 7.12 Good Faith of Parties. Except where any matter is expressly stated to be in the discretion of a Party, the Parties agree that in the performance of this Agreement or in considering any requested extension of time, each Party will act in good faith and shall not act unreasonably, arbitrarily, capriciously, or unreasonably withhold or delay any approval required by this Agreement. Section 7.13 Time. Unless the context indicates differently, all references herein to days shall be to calendar days, and all references herein to periods of time shall be to consecutive days or continuous periods of time. If the day for any performance or event provided for herein is a Saturday, Sunday or other day on which either national banks or the office of the Clerk and Recorder of the County are not open for the regular transaction of business, such day shall be extended until the next day on which such banks and office are open for the transaction of business. All times shall be of the essence. Section 7.14 Further Assurances. The Parties agree to adopt or approve such resolutions, regulations and agreements, to execute such documents or instruments, and to take such action as shall be reasonably requested by the other Party to confirm or clarify the provisions herein and to effectuate the agreements herein contained and the intent thereof. If all or any portion of the Public Improvements, Obligations or agreements approved in connection with this Agreement are asserted or determined to be invalid, illegal or are otherwise precluded, the Parties shall cooperate in the joint defense thereof, and if such defense is unsuccessful, the Parties will use reasonable, diligent, good faith efforts to amend, reform or replace such precluded matters. Section 7.15 Certifications. The Parties agree to execute such documents or instruments as the other Party may reasonably request to verify or confirm the status of this Agreement or other intergovernmental agreements between the Districts, and of the performance of the obligations hereunder and such other matters as either Party may reasonably request. Section 7.16 Survival of Representations and Warranties. No representations or warranties whatever are made by any Party to this Agreement, except as specifically set forth in Section 3. The representations and warranties made by the Parties to this Agreement, and all covenants and agreements to be performed or complied with by the Parties under this Agreement shall be continuing to the end of the Term. (00141345.DOC /1 23 In Witness Whereof, the Districts have caused this Agreement to be duly executed as of the day first above written. ATTEST: Sec a Secretary BEEBE DRAW FARMS METROPOLITAN DISTRICT NO. 1 arrr By: President BEEBE DRAW FARMS METROPOLITAN DISTRICT NO. 2 By: 1 resident {omaorn.DOci) EXHIBIT F Affidavit of Publication of Notice of Hearing )00140302.DOC / 3) Affidavit of Publication • IiETIN0 eoR HaAMNO DN PETrION ?J fim .us NOF EALPROPESTYPROMTNE litASP. .DRM6FROPMJTAN DI!TR rN'T, W11 NOTIDE $HEREBY ONENJO all lntara led ppnradrt et •a Pe' Won I9r Wagon of real Pesbean NW th e Bear W Dlreotoribl the Beene properly MMwpollt a DOW Ne I. ,7MBOWMd Dkw9Wahas mtedM nday.the*f1 day, of Oq ober et me heat of pAigmbhe Ppepllkantake Ranch dommunity Center, 19502 E"eebe D,AyfarmaParkway, • P S.peteredanthe.letff�,ttyknnaserl*placeo(enppen - The maebhsapn PNaoit Mmlbe nsmd. ' neine end atld mmePatltlonal l?:- REI LhnINd Lkbll eempa9 ; Atlerais �W a. 'V an 5a �aa07:19- The pjoDeri= to be eYglpdetl Xomtme DlsNkt N generally tle-- Aparc u. Apgrddothe palnnayapoteon roweled dl'ta lass In Bdok. 148T,Rage 12B wMaaioi eptlo0 Na?o bnfile m thIMO e I Sections 4,S,89, 10 and 17, Weld wnsWsonn, Range I Gest otth 8th P loandl7,Ta,•ne ,FFa RarmrtBo Wesresteefie Prnowa al Me eo Tilt two par - Station cels respectively rdescr eyto She Pe end Feblorian con1 all gaMdfierdea. more on the PatltbNlor G><dWelan and ao AnIIneresed acres, many ar laq. All InlwratgwhyeucPmyappear atdn heelingwanto d. Writ- ten sttemennmustheltletat nd ratted t granted.Marna by 10 noon onodob rRO20ah by llan avert' or rlema 12110 roman on October X1r, mall Cole, Atari ,. il M then Mao, 0 0 union Co@na Cookie! ✓ti 00, L Aawood, redo8 28 ernatlnlen rmxOn)r,Sb 40e,: Lakewood, Cob - BY redo BB0MOR8 AeRME:rm..ccoomm _ BY ORdSR FARMS E RDOFT N DIRECTORS OF NO.1 • E SEEK DRAW FARMS METROPOLITAN DISTRICT NO. 1. SEESEDRAW FARMS METROPOLITAN DISTRICT NO 1 t edrMgrY No ilk Burk Se ary ' TheTrltiene October 14,2006 - STATE OF COLORADO County of Weld, I, Jennifer Usher SS. of said County of Weld, being duly sworn, say that I am an advertising clerk of THE TRIBUNE that the same is a daily newspaper of general circulation and printed and published in the City of Greeley, in said county and state; that the notice or advertisement, of which the annexed is a true copy, (days): that the notice was published in the regular and entire issue of every number of said newspaper during the period and time of publication of said notice, and in the newspaper proper and not in a supplement thereof; that the first publication of said notice was contained in the, issue of the said newspaper - bearing date the Fourteenth day of October AD.2008 and the last publication thereof: in the issue of said newspaper bearing date the Fourteenth day of October AD. 2008' that said The Tribune has been published continuously and uninterruptedly during the period of at least six months next prior to the first issue there of contained said notice or advertisement above referred to; that said newspaper has been admitted to the United States mails as second-class matter under the provisions of the Act of March 3, 1879, or any amendments thereof; and that said newspaper is a daily newspaper duly qualified for publishing legal notices and advertisements within the meaning of the laws of the State of Colorado. October 14.2008 Total Charges: $61.52 day of, November 2008 7ionxni.res F11/20 Notary Public Hello