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HomeMy WebLinkAbout20072572.tiff RESOLUTION RE: APPROVE CONSOLIDATED SERVICE PLAN FOR PROPOSED WATERFRONT AT FOSTER LAKE METROPOLITAN DISTRICTS NOS. 1, 2, AND 3 WHEREAS,the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS,pursuant to Section 32-1-204,C.R.S.,a Consolidated Service Plan concerning the proposed Waterfront at Foster Lake Metropolitan Districts Nos. 1, 2, and 3, was filed with the Weld County Board of County Commissioners, and WHEREAS, on June 6, 2007, by Resolution #2007-1593, the Board of County Commissioners scheduled a public hearing on the Consolidated Service Plan to be held at 9:00 a.m. on August 8, 2007, and WHEREAS,the Board of County Commissioners rescheduled said public hearing on the Consolidated Service Plan to be held at 9:00 a.m. on August 29, 2007, and WHEREAS, notice of the date, time, location, and purpose of said hearing was duly published in The Fort Lupton Press, the county legal newspaper, on August 8, 2007; notice was provided to the Division of Local Affairs of the name and type of the proposed district;and notice of the date,time and location of said hearing was provided to the Petitioners,to the governing body of each municipality and of each special district which had levied an ad valorem tax within the next preceding tax year and which had boundaries within a radius of three (3) miles of the proposed district,and to said Division,as required by Section 32-1-202(1), C.R.S.,and Section 32-1-204(1), C.R.S., and WHEREAS,the Weld County Planning Commission considered the Consolidated Service Plan at its meeting on July 17, 2007,and presented its favorable recommendation to the Board of County Commissioners at its hearing on this matter, as required by Section 32-1-204(2), C.R.S., and WHEREAS,the Board did,on August 29,2007,conduct a full public hearing on this matter, taking evidence establishing the jurisdiction of the Board to hear this matter and further taking evidence regarding the substantive issues set forth in Section 32-1-203, C.R.S.,at which hearing all interested parties were afforded an opportunity to be heard, and WHEREAS,the Board fully considered the Consolidated Service Plan and all testimony and other evidence presented to it in this matter relating to said Consolidated Service Plan,including the favorable recommendation of the Weld County Planning Commission, and WHEREAS,the Board,after consideration of all testimony and other evidence presented to the Board in this matter,finds that the Consolidated Service Plan meets the criteria contained within Section 32-1-203, C.R.S., and �,L'. �L � K EK' �3 c: w/G.�f- 2007-2572 SD0132 -/K v 7 APPROVE PROPOSED CONSOLIDATED SERVICE PLAN-WATERFRONT AT FOSTER LAKE METROPOLITAN DISTRICTS NOS. 1, 2, AND 3 PAGE 2 WHEREAS,no written requests for exclusion were submitted to the Board from any property owners or owners within the boundaries of the proposed Districts. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that: Section 1. The Board hereby determines that all of the jurisdictional and other requirements of Sections 32-1-202 and 32-1-204,C.R.S.,have been fulfilled, including those relating to the filing and form of the Service Plan, the form and publication of the public hearing of the hearing on the Service Plan,and the type of public hearing held herein, and that, pursuant to Section 32-1-204(1)the petitioners did give proper and timely notification of the hearing to the governing body of any existing municipality or special district which levied an ad valorem property tax in 2006, and which has boundaries within a radius of three miles from the boundaries of the proposed Districts. Section 2. The Weld County Planning Commission has considered this matter as required by law and has favorably recommended approval of the Consolidated Service Plan. Section 3. Based upon the information contained within the Consolidated Service Plan and evidence presented to the Board at the hearing,the Board hereby finds and determines as follows: A. There is sufficient existing and projected need for organized services of the nature proposed in the Consolidated Service Plan in the area to be serviced by the proposed District. B. The existing services in the area to be served by the proposed Districts are inadequate for present and projected needs. C. The proposed Districts are capable of providing economical and sufficient services to the area within its proposed boundaries. D. The area to be included in the proposed Districts has, or will have, the financial ability to discharge the proposed indebtedness on a reasonable basis. E. Adequate services are not, and will not be, available to the area through Weld County or other municipal or quasi-municipal corporations,including special districts,within a reasonable time and on a comparable basis. F. The facilities and service standards of the proposed Districts are,or will be, compatible with the facilities and service standards of Weld 2007-2572 SD0132 APPROVE PROPOSED CONSOLIDATED SERVICE PLAN-WATERFRONT AT FOSTER LAKE METROPOLITAN DISTRICTS NOS. 1, 2, AND 3 PAGE 3 County and of each municipality and special district which is an interested party hereto. G. The Consolidated Service Plan is in substantial compliance with the Weld County Comprehensive Plan and the Weld County Code. H. The creation of the proposed Districts will be in the best interest of the area proposed to be served. Section 4. The Consolidated Service Plan of the proposed Districts be,and hereby is, approved, subject to the following conditions: A. That the Petitioners shall secure resolutions from the respective Boards of Directors of the Longs Peak Water District("LPWD")and the St.Vrain Sanitation District("SVSD"),consenting to the formation of the Districts, as required by Section 32-1-107, C.R.S. (the "Consent Resolutions"), prior to the entry of the Districts' orders of formation by the District Court for, and in, Weld County, Colorado. B. That, to the extent required by and referenced in the Consent Resolutions, the Districts shall approve an intergovernmental agreement with each of LPWD and SVSD, and that such intergovernmental agreements, if any, be approved at the Districts' joint organizational meeting of their Boards of Directors, which meeting will be held following the entry of the Districts' orders of formation by the District Court for and in Weld County, Colorado. The intergovernmental agreements to be approved by the Districts with each of LPWD and SVSD generally set forth the following: (1) LPWD shall be the sole provider of water service within the boundaries of the Districts; (2) SVSD shall be the sole provider of sanitary sewer service within the boundaries of the Districts;(3)the Districts are prohibited from constructing a water treatment plant or wastewater treatment plant; (4) the Districts are prohibited from selling water or sanitary sewer taps; (5) water and sanitary sewer-related infrastructure constructed by the Districts will be completed in accordance with all then-current applicable regulations of LPWD and SVSD. Section 5. The Clerk to the Board be, and hereby is, directed to advise the Petitioners in writing of this action and to attach a certified copy of this Resolution for the purpose of filing the same with the District Court of Weld County. Section 6. All Resolutions, or parts hereof, in conflict with the provisions hereof, are hereby repealed to the extent of such conflict only. 2007-2572 SD0132 APPROVE PROPOSED CONSOLIDATED SERVICE PLAN-WATERFRONT AT FOSTER LAKE METROPOLITAN DISTRICTS NOS. 1, 2, AND 3 PAGE 4 Section 7. This Resolution,immediately upon its passage,shall be authenticated by the signatures of the Board of County Commissioners and the Clerk to the Board and sealed with the corporate seal of the County. Section 8. This Resolution is necessary for the health, safety and welfare of the citizenry of Weld County. The above and foregoing Resolution was,on motion duly made and seconded,adopted by the following vote on the 29th day of August, A.D., 2007. BOARD OF COUNTY COMMISSIONERS Lam WELD COUNTY, COLORADO ATTEST: ,rva �L� "' '�"ver %EXCUSED 1S61 (V David E. Long, Chair Weld County Clerk to th:% oFr A . It WilJi�m ¢I. r e, Pro-Tem BY: r.� ... ,�ts..:.i D ty CI: - to the Boar '� William F. Garcia O D AS TO • OEXCUSED Robert D. Masden • ttorney Douglas ademacher Date of signature: 61/10/0 2007-2572 SD0132 CONSOLIDATED SERVICE PLAN FOR WATERFRONT AT FOSTER LAKE METROPOLITAN DISTRICT NO. 1 WATERFRONT AT FOSTER LAKE METROPOLITAN DISTRICT NO. 2 WATERFRONT AT FOSTER LAKE METROPOLITAN DISTRICT NO. 3 WELD COUNTY, COLORADO Prepared by: Grimshaw&Harring, P.C. 1700 Lincoln Street, Suite 3800 Denver, CO 80203 Submitted to Weld County on: May 31, 2007 TABLE OF CONTENTS I. INTRODUCTION 1 A. Purpose and Intent 1 II. DEFINITIONS 1 A. Multiple District Structure. 4 B. Needs Analysis/Basis for Statutory Findings 4 C. District Functions Generally 4 III. BOUNDARIES 5 IV. PROPOSED LAND USE AND ASSESSED VALUATION 5 V. DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES 6 A. Powers of the Districts and Service Plan Amendment. 6 1. Operations and Maintenance Limitation 6 2. Longs Peak Water District and St. Vrain Sanitation District 7 3. Construction Standards Limitation 7 4. Privately Placed Debt Limitation 7 5. Initial Debt Limitation 8 6. Total Debt Issuance Limitation 8 7. Monies from Other Governmental Sources 8 8. Eminent Domain Limitation 8 9. Service Plan Amendment Requirement 8 B. Primary Infrastructure Plan 9 VI. FINANCIAL PLAN 9 A. General 9 B. Maximum Net Effective Interest Rate and Maximum Underwriting Discount.... 10 C. Maximum Debt Mill Levy. 10 D. Maximum Debt Mill Levy Imposition Term 10 E. Debt Repayment Sources 11 F. Security for Debt 11 G. Operating Costs of the Districts 11 H. Elections 12 VII. CONSOLIDATION 12 VIII. PROPOSED AND EXISTING INTERGOVERNMENTAL AGREEMENTS AND EXTRATERRITORIAL SERVICE AGREEMENTS 12 IX. CONCLUSION 13 LIST OF EXHIBITS EXHIBIT A Legal Descriptions EXHIBIT B Vicinity Map EXHIBIT C District Boundaries Map EXHIBIT D Primary Infrastructure Plan EXHIBIT E Map Depicting Public Improvements EXHIBIT F Financial Plan EXHIBIT G Statutory Considerations • • • I. INTRODUCTION A. Purpose and Intent. The Waterfront at Foster Lake Metropolitan District Nos. 1, 2 and 3 (the "Districts") are independent,units of local government, separate and distinct from the County, and, except as may otherwise be provided for by State or local law or this Service Plan, their activities are subject to review by the County only insofar as they may deviate in a material matter from the requirements of this Service Plan. This Service Plan is submitted in accordance with Part 2 of the Special District Act (Section 32-1-201 et seq., C.R.S.) and defines the powers and authorities of, as well as the limitations and restrictions on the Districts. It is intended that the Districts will provide a part or all of the Public Improvements necessary and appropriate for the development of a project within the County to be known as Waterfront at Foster Lake. The Public Improvements will be constructed for the use and benefit of all anticipated residents, property owners and taxpayers of the Districts. The primary purposes of the Districts will be to plan, design, acquire, construct, install, finance, receive reimbursement for, own, operate, maintain, relocate and/or redevelop the Public Improvements. The Districts are also being created to provide ongoing operations and maintenance of certain of the Public Improvements, as more specifically set forth in this Service Plan. This Service Plan has been prepared in accordance with Article XIV of Chapter 2 of the County Code. • II. DEFINITIONS In this Service Plan, the following terms shall have the meanings indicated below, unless the context hereof clearly requires otherwise: Aggregate Mill Levy Cap: means the maximum aggregate mill levy any District is permitted to impose for payment of Debt and operations and maintenance functions related to District Activities, as set forth in Section VI.G below. Approved Development Plan: means a development plan or other process established by the County for identifying, among other things, Public Improvements necessary for facilitating development for property within the Service Area as approved by the County pursuant to the County Code. Board: means the Board of Directors of one District, or the Boards of Directors of all Districts, as is contextually appropriate. BOCC: means the Board of County Commissioners of the County of Weld, Colorado. Debt: means bonds or other financial obligations not subject to annual appropriation for the payment of which a District has promised to impose, collect and pledge an ad valorem property tax mill levy or other rates, tolls, fees and charges available to a District. • County: means the County of Weld, Colorado. 1 • • County Code: means the Weld County Code, as the same may be amended from time to time. District: means District No. 1, District No. 2 or District No. 3. District Activities: means any and all functions undertaken by the Districts in accordance with this Service Plan and as permitted under applicable law in order to effectuate the purposes for which the Districts are organized. District Boundaries: means the initial boundaries of each of the Districts as described in Exhibit A and as depicted in the District Boundaries Map. District Boundaries Map: means the map attached hereto as Exhibit C, depicting the initial boundaries of each of the Districts. District No. 1: means the Waterfront at Foster Lake Metropolitan District No. 1, the boundary of which is designated as "R-1" on the District Boundaries Map. District No. 2: means the Waterfront at Foster Lake Metropolitan District No. 2, the boundary of which is designated as "R-2" on the District Boundaries Map. District No. 3: means the Waterfront at Foster Lake Metropolitan District No. 3, the boundary of which is designated as "C" on the District Boundaries Map. • Districts: means District Nos. 1 through 3, collectively. External Financial Advisor: means a consultant that: (1) advises Colorado governmental entities on matters relating to the issuance of securities by Colorado governmental entities, including matters such as the pricing, sales and marketing of such securities and the procuring of bond ratings, credit enhancement and insurance in respect of such securities; (2) shall be an underwriter, investment banker, or individual listed as a public finance advisor in the Bond Buyer's Municipal Market Place; and (3) is not an officer or employee of any District. Financial Plan: means the Financial Plan described in Section VI which has been prepared by an External Financial Advisor in accordance with the requirements of the County Code and describes (a) how the Public Improvements are planned to be financed; (b) how the Debt is expected to be incurred; and (c) the proposed sources of revenue and projected expenses of the Districts. LPWD: means the Longs Peak Water District, a quasi-municipal corporation and political subdivision of the State. Map Depicting Public Improvements: means the map or maps attached hereto as Exhibit E, showing the location of the Public Improvements listed in the Primary Infrastructure Plan. • 2 Maximum Debt Mill Levy: means the maximum mill levy any of the Districts is • permitted to impose for payment of Debt as set forth in Section VI.C below. Maximum Debt Mill Levy Imposition Term: means the maximum term for imposition of a mill levy as set forth in Section VI.D below. Maximum Net Effective Interest Rate: means the maximum net effective interest rate applicable to any issuance of Debt, which is fifteen percent (15%) under this Service Plan. Maximum Underwriting Discount: means the maximum underwriter's discount applicable to any issuance of Debt, which is five percent (5%) under this Service Plan. Primary Infrastructure Plan: means the Primary Infrastructure Plan described in Section V.B. and attached hereto as Exhibit D, which includes: (a) a list of the Public Improvements to be developed by the Districts; and (b) an estimate of the cost of the Public Improvements. Project: means the development or property commonly referred to as Waterfront at Foster Lake within the County. Public Improvements: means a part or all of the improvements authorized to be planned, designed, acquired, constructed, installed, relocated, redeveloped, financed, operated • and/or maintained as generally described in the Special District Act, except as specifically limited in Section V below, and intended to serve the future taxpayers and residents of the Service Area as determined by the Boards. Service Area: means the property within and without the District Boundaries Map that may legally be served by the Districts. Service Plan: means this service plan for the Districts as approved by the BOCC. Service Plan Amendment: means an amendment to this Service Plan approved from time to time by the BOCC, in accordance with the Special District Act and the County Code. Special District Act: means Section 32-1-101, et seq., of the Colorado Revised Statutes, as amended from time to time. State: means the State of Colorado. SVSD: means the St. Vrain Sanitation District, a quasi-municipal corporation and political subdivision of the State. TABOR: means Article 10 Section 20 of the Colorado Constitution. Total Debt Issuance Limitation: means the total Debt the Districts are authorized to • issue, as set forth in Section V.A.6 and as supported by the Financial Plan. 3 • A. Multiple District Structure. • It is anticipated that the Districts, collectively, will undertake the financing of the Public Improvements. The nature of the functions and services to be provided by the Districts may be clarified and set forth in one or more intergovernmental agreements ("IGAs") between and among the Districts. All such IGAs will be designed to help assure the orderly development of the Public Improvements in accordance with the requirements of this Service Plan. The IGAs may be amended from time to time by mutual agreement of the Districts in order to best serve the evolving needs of the Project, and without the need to amend this Service Plan. Three Districts are proposed because the Project includes multiple uses, including various types of residential product and commercial development. District Nos. 1 and 2 are intended to include residential development and District No. 3 is intended to include commercial development. The Districts will jointly or individually finance the Public Improvements necessary and appropriate for the Project. B. Needs Analysis/Basis for Statutory Findings In order to establish compliance with the standards for Service Plan approval as set forth in Section 32-1-203, C.R.S., Exhibit G attached hereto provides a needs analysis for the Districts. C. District Functions Generally • The Districts shall be authorized to fund the District Activities from the proceeds of Debt to be issued by the Districts, and from other legally available revenues. All Debt payable from a pledge of property taxes is subject to the Total Debt Issuance Limitation, Maximum Debt Mill Levy, and Maximum Debt Mill Levy Imposition Term. Debt issued within these parameters and pursuant to the provisions of this Service Plan will protect property owners from excessive tax burdens to support the servicing of such Debt and also will result in a timely and reasonable discharge thereof. The Districts expect and are authorized to own, operate and maintain certain Public Improvements not dedicated to the County or other governmental entities, the scope of which shall include, but not necessarily be limited to street improvements located within the Project. Certain other Public Improvements will be dedicated to the County, or in the case of water and sanitation improvements to the Longs Peak Water District ("LPWD") and the St. Vrain Sanitation District ("SVSD"), respectively, according to the requisite procedures for each specific entity (including but not limited to applicable standards related to construction). Determination of both the scope and manner in which specific Public Improvements will be dedicated to the County, LPWD, SVSD, and/or other governmental entities will be the subject of specific agreements among the interested parties. Further detail on operations and maintenance of certain Public Improvements is discussed below. The County shall have and will exercise sole and exclusive jurisdiction over land use and building, e.g. zoning, subdivision, building permit issuance, and property development • within the boundaries of the Districts. Construction of the Public Improvements shall be subject 4 • to applicable provisions of the County Code and regulations of other governmental entities having jurisdiction. III. BOUNDARIES The area of the District Boundaries consists of approximately 587 acres, and covers all acreage within the Project. A legal description of the District Boundaries is attached hereto as Exhibit A and a vicinity map is attached hereto as Exhibit B. The District Boundaries Map is attached hereto as Exhibit C (District No. 1 is designated as area "R-1" therein, District No. 2 is designated as area "R-2" therein, and District No. 3 is designated as area "C" therein). It is anticipated that the Districts' boundaries may change from time to time as they undergo inclusions and exclusions pursuant to Section 32-1-401, et seq., C.R.S., and Section 32- 1-501, et seq., C.R.S. The Districts shall be permitted to include and/or exclude property within the Service Area without the need to amend this Service Plan. Any proposed exclusion or inclusion of property that does not lie within the Service Area shall require forty-five (45) day published and written notice to the County made pursuant to Section 32-1-207(3)(b), C.R.S. If the County expresses a written objection to the proposed action, the proposed action shall be considered a material modification of this Service Plan and shall be resolved only in accordance with Section 32-1-207(2), C.R.S. The vote by a Board to seek exclusions or inclusions of property not lying within the Service Area which precedes the notice to the County must occur at a public meeting of a District for which a District has sent written notification via U.S. Mail at least fourteen (14) days and not more than thirty (30) days in advance of such meeting to all • electors, residents and land owners within the District. Such notice shall include the date, time and location of the meeting, as well as a general description of the matters to be considered. IV. PROPOSED LAND USE AND ASSESSED VALUATION It is currently anticipated that at full build out the Project will include approximately 587 acres of mixed use development, including approximately 1,130 single family detached homes, 225 single family attached homes, 425 multi-family homes, and approximately 100,000 square feet of commercial space. All residential units within the Project will be included in either District No. 1 or District No. 2. The boundaries of District No. 3 shall be modified as necessary to include all commercial uses within the Project. The current assessed valuation of the Service Area is assumed to be $0.00 for purposes of this Service Plan and, at build out, is expected to be sufficient to reasonably discharge the Debt proposed in the Financial Plan, at a level approximating $45,000,000 in 2017. Approval of this Service Plan by the County does not imply approval of the development of a specific area within the Districts, nor does it imply approval of the number of residential units or the total site/floor area of commercial or industrial buildings which may be identified in this Service Plan or any of the exhibits attached hereto. Any and all development approvals are specifically subject to further approval by the County pursuant to the County Code and other applicable County requirements. S 5 • • • V. DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES A. Powers of the Districts and Service Plan Amendment. The Districts shall have the power and authority to provide the Public Improvements and undertake related District Activities within the Service Area, as such power and authority is described in the Special District Act, and other applicable statutes, the common law and the State Constitution, subject to the limitations set forth in this Service Plan. If, after this Service Plan is approved, the State Legislature includes additional powers or grants new or broader powers for Title 32 districts by amendment of the Special District Act, no such powers shall be available to or exercised by the Districts unless the Districts publish forty- five day notice and provide written notice to the BOCC pursuant to Section 32-1-207(3)(b), C.R.S. If, within forty-five (45) days of the publication of such notice, the BOCC expresses to the Districts a written objection to the proposed exercise of such new or broader power(s), then the exercise of the same by any District without the prior written consent of the BOCC shall be considered a material modification of the Service Plan and shall be resolved in accordance with Section 31-1-207(2), C.R.S. The vote by a Board to obtain or utilize such additional powers which precedes the notice to the County, must occur at a public meeting of a District for which a District has sent written notification via U.S. Mail at least fourteen (14) days and not more than thirty (30) days in advance of such meeting to all electors, residents and land owners within the District. Such notice shall include the date, time and location of the meeting, as well as a general description of the matters to be considered. • 1. Operations and Maintenance Limitation. "Operation and maintenance" shall refer to all District Activities necessary to maintain the Public Improvements, including but not limited to replacement of deteriorated materials and structures (as determined by County inspection). Specifically, the Districts shall be responsible for the operation and maintenance of all street improvements within the Project, including but not limited to streets, curbs, gutters, bridges, embankments, divider islands and medians, crosswalks, cross-pans and traffic signals and signage. The primary purpose of the Districts is to undertake the District Activities, including the provision of the Public Improvements. The Districts shall dedicate certain Public Improvements to the County in a manner consistent with the Approved Development Plan, other rules and regulations of the County, applicable provisions of the County Code, and other rules and regulations of other governmental entities having jurisdiction. In addition to the operation and maintenance of the Public Improvements identified above, each District shall specifically be authorized to own, operate and maintain any part or all of the Public Improvements within the District not dedicated to the County or other appropriate jurisdictions, including LPWD and SVSD, where it can be demonstrated that having the District be responsible for operation and maintenance is in the best interests of the County and the residents and taxpayers of the District. 2. Longs Peak Water District and St. Vrain Sanitation District. The Districts hereby acknowledge that LPWD will be the sole provider of water services within the Districts. • The Districts' authorization in this regard shall be limited to the financing and construction of all internal water improvements needed for the Project, and the financing and construction of water 6 • improvements outside the Project that are needed to connect the Districts' internal infrastructure to LPWD's existing lines. All water improvements authorized for financing and construction by the Districts shall be designed and constructed in accordance with LPWD's standards and shall be conveyed to LPWD upon completion. The Districts shall not amend this Service Plan in any manner that would affect or expand the water powers contemplated herein without the express written consent of LPWD. The Districts hereby acknowledge that SVSD will be the sole provider of sanitation services within the Districts. The Districts agree not to sell any sewer taps and will not construct, finance or otherwise provide for any sanitation treatment facility. The Districts shall be expressly prohibited from entering into any contract with any other sanitary sewer provide, other than SVSD, for such treatment facilities. The Districts' authorization in this regard shall be limited to the financing and construction of all internal sanitation improvements needed for the Project, and the financing and construction of sanitation improvements outside the Project that are needed to connect the Districts' internal infrastructure to SVSD's existing lines. Notwithstanding the aforesaid, the Districts' authorization with respect to the construction of sanitation improvements outside of the Project shall be exercised only with the prior written consent of SVSD. All sanitation improvements authorized for financing and construction by the Districts shall be designed and constructed in accordance with SVSD's standards and shall be conveyed to SVSD upon completion. The Districts shall not amend this Service Plan in any manner that would affect or expand the sanitary sewer powers contemplated herein without the express written consent of SVSD. • 3. Construction Standards Limitation. The Districts will ensure that the Public Improvements are designed and constructed in accordance with the standards and specifications of the County and of other governmental entities having proper jurisdiction, as applicable. The Districts will obtain approval of civil engineering plans and permits for construction and installation of Public Improvements from the County, or other appropriate governing jurisdictions. All Public Improvements constructed by the Districts for dedication to the County will be subject to review,monitoring and inspection by the County. 4. Privately Placed Debt Limitation. Prior to the issuance of any privately placed Debt, a District shall obtain the certification of an External Financial Advisor substantially as follows: We are [I am] an External Financial Advisor within the meaning of the District's Service Plan. We [I] certify that (1) the net effective interest rate (calculated as defined in Section 32-1-103(12), C.R.S.) to be borne by the District for the [insert the designation of the Debt] does not exceed a reasonable current [tax-exempt] [taxable] interest rate, using criteria deemed appropriate by us [me] and based upon our [my] analysis of comparable high yield securities; and (2) the structure of [insert designation of the Debt], including maturities and early • redemption provisions, is reasonable considering the financial circumstances of the District. 7 5. Initial Debt Limitation. Prior to the effective date of approval of an • Approved Development Plan relating to development within the Service Area, the Districts shall not: (a) issue any Debt; (b) impose a mill levy for the payment of Debt by direct imposition or by transfer of funds from the operating fund to the Debt service funds; or (c) impose and collect any fees used for the purpose of repayment of Debt. 6. Total Debt Issuance Limitation. The maximum outstanding Debt of the Districts shall not exceed $28,000,000 without the approval of the County. The Districts shall not issue Debt in excess of$28,000,000 in the aggregate, provided that the foregoing shall not include the principal amount of Debt issued for the purpose of refunding or refinancing Debt lawfully issued by any District. To the extent the Districts seek to modify the Total Debt Issuance Limitation set forth herein, it shall proceed in accordance with Section 2-14-20O) of the County Code. 7. Monies from Other Governmental Sources. The Districts shall not apply for or accept Conservation Trust Funds, Great Outdoors Colorado Funds, or other funds available from or through governmental or non-profit entities for which the County is eligible to apply for, except pursuant to an intergovernmental agreement with the County. This Section shall not apply to specific ownership taxes which shall be distributed to and a revenue source for the Districts without any limitation. 8. Eminent Domain Limitation. No District shall exercise its statutory power of eminent domain, except as may be necessary to construct, install, access, relocate or redevelop the Public Improvements identified in the Primary Infrastructure Plan. Any use of eminent domain shall be undertaken strictly in compliance with State law. Any proposed use of eminent domain for a purpose other than as may be necessary to complete the Public Improvements identified in the Primary Infrastructure Plan shall require forty-five (45) day notice publication and written notice to the BOCC pursuant to Section 32-1-207(3)(b), C.R.S. If, within forty-five days of the publication of such notice, the BOCC expresses to the District a written objection to the proposed use of eminent domain by the District, then the proposed use of eminent domain shall be considered a material modification of the Service Plan and shall be resolved in accordance with Section 31-1-207(2), C.R.S. The vote by a Board exercise the District's power of eminent domain which precedes the notice to the County, must occur at a public meeting of a District for which a District has sent written notification via U.S. Mail at least fourteen (14) days and not more than thirty (30) days in advance of such meeting to all electors, residents and land owners within the District. Such notice shall include the date, time and location of the meeting, as well as a general description of the matters to be considered. 9. Service Plan Amendment Requirement. This Service Plan is general in nature and does not include specific detail in some instances because development plans have not been finalized. The Service Plan has been designed with sufficient flexibility to enable the Districts to provide the Public Improvements and the related operation and maintenance functions identified herein without the need for numerous amendments. Modification of the general types of services and facilities making up the Public Improvements, and changes in proposed configurations, locations or dimensions of the Public Improvements shall be permitted to accommodate the development needs of the Project, consistent with the then-current Approved Development Plan(s). Actions of the Districts that violate the limitations set forth 8 • • herein shall be deemed to be material modifications to this Service Plan and the County shall be • entitled to all remedies available under State and local law to enjoin such actions. B. Primary Infrastructure Plan. The Primary Infrastructure Plan, including: (1) a list of the Public Improvements to be constructed or acquired by the Districts; and (2) an estimate of the cost of the Public Improvements is attached hereto as Exhibit D. The Map Depicting Public Improvements is attached hereto as Exhibit E. In accordance with Section 2-14-20(L) of the County Code, the Map Depicting Public Improvements shall be provided to the County in (at minimum) 24" x 36" format. The Map Depicting Public Improvements may be reduced as necessary to permit filing of the approved Service Plan with the District Court for and in Weld County, Colorado. As shown in the Primary Infrastructure Plan, the estimated cost of the Public Improvements which may be planned for, designed, acquired, constructed, installed, relocated, redeveloped, maintained or financed by the Districts is approximately $55,000,000, including approximately $13,200,000 in offsite Public Improvements and approximately $41,800,000 in onsite Public Improvements. The Districts shall be permitted to allocate costs between such categories of the Public Improvements as deemed necessary in their discretion. All of the Public Improvements described herein will be designed in such a way as to assure that the Public Improvements standards will be compatible with those of the County and shall be in accordance with the requirements of the Approved Development Plan. All descriptions of the Public Improvements, and their related costs, are estimates only and are subject to modification as engineering, development plans, economics, the County's requirements, and construction scheduling may require. Upon approval of this Service Plan, the Districts will continue to develop and refine the Primary Infrastructure Plan and the Map Depicting Public Improvements, as necessary, and prepare for issuance of Debt. All cost estimates will be inflated to then-current dollars at the time of the issuance of Debt and construction. All construction cost estimates contained in Exhibit D assume construction to applicable local, State or Federal requirements. VI. FINANCIAL PLAN A. General. The Districts shall be authorized to undertake the District Activities from any legally available revenues, including but not limited to the proceeds of Debt to be issued by the Districts. The Financial Plan for the Districts shall be to issue such Debt as the Districts can reasonably pay from time to time within the Maximum Debt Mill Levy Imposition Term from revenues derived from the Maximum Debt Mill Levy and other legally available revenues. The total Debt that the Districts shall be permitted to issue shall not exceed the Total Debt Issuance Limitation and shall be permitted to be issued on a schedule and in such year or years as the Districts determine shall meet the needs of the Project and phased to serve development as it occurs. All Debt issued by the Districts may be payable from any and all legally available revenues of the Districts, including general ad valorem taxes to be imposed upon all taxable 9 • property within the Districts. The Districts will also rely upon various other revenue sources authorized by law. These will include the power to assess fees, rates, tolls, penalties, or charges as provided in Section 32-1-1001(1), C.R.S., as amended from time to time. The Total Debt Issuance Limitation is supported by the Financial Plan prepared by Piper Jaffray & Co., attached hereto as Exhibit F. The Financial Plan attached to this Service Plan satisfies the requirements of Section 2-14-20(I) of the County Code. The Financial Plan provides an illustration of the manner in which the Public Improvements and other District Activities maybe financed; however, the final terms of such financing shall be determined by the Boards subject to the parameters set forth in this Service Plan. B. Maximum Net Effective Interest Rate and Maximum Underwriting Discount. The interest rate on any Debt is expected to be the market rate at the time the Debt is issued, but the interest rate shall not exceed the Maximum Net Effective Interest Rate. The underwriting discount on any Debt shall not exceed the Maximum Underwriting Discount. Debt, when issued, will comply with all relevant requirements of this Service Plan, and State and Federal law then applicable to the issuance of public securities. C. Maximum Debt Mill Levy. The "Maximum Debt Mill Levy" shall be the maximum mill levy any District is permitted to impose upon the taxable property within the District for payment of Debt, and shall • be fifty (50) mills; provided that if, on or after January 1, 2006, there are changes in the method of calculating assessed valuation or any constitutionally mandated tax credit, cut or abatement; the mill levy limitation applicable to such Debt may be increased or decreased to reflect such changes, such increases or decreases to be determined by the Board in good faith (such determination to be binding and final) so that to the extent possible, the actual tax revenues generated by the mill levy, as adjusted for changes occurring after January 1, 2006, are neither diminished nor enhanced as a result of such changes. For purposes of the foregoing, a change in the ratio of actual valuation to assessed valuation shall be deemed to be a change in the method of calculating assessed valuation. D. Maximum Debt Mill Levy Imposition Term. A District shall not impose a levy for repayment of any and all Debt (or use the proceeds of any mill levy for repayment of Debt) on any property which exceeds thirty (30) years after the year of the initial imposition of such mill levy to such property unless the Board has voted in favor of a refunding of a part or all of the Debt and such refunding will result in a net present value savings as set forth in Section 11-56-101, C.R.S. et seq. The Districts shall be limited to issuing new Debt within a period of fifteen (15) years following the year in which the Districts conduct their initial debt authorization election. The Districts may issue Debt after the fifteen (15) year period in order to finance the Public Improvements outlined in this Service Plan if development phasing is of a duration that makes it impracticable to issue all Debt within said period. • 10 E. Debt Repayment Sources. • Each of the Districts may impose a mill levy on taxable property within their respective boundaries as a primary source of revenue for repayment of debt service and for operations and maintenance of certain Public Improvements, including but not limited to street improvements located within the Project. The Districts may also rely upon various other revenue sources authorized by law. At the Districts' discretion, these may include the power to assess fees, rates, tolls, penalties, or charges as provided in the Special District Act. In no event shall the mill levy in any District exceed the Aggregate Mill Levy Cap, the Maximum Debt Mill Levy, or the Maximum Debt Mill Levy Imposition Term, as specifically set forth in this Service Plan. F. Security for Debt. The Districts shall not pledge any revenue or property of the County as security for the proposed Debt set forth in this Service Plan. Approval of this Service Plan shall not be construed as a guarantee by the County of payment of any of the Districts' obligations; nor shall anything in the Service Plan be construed so as to create any responsibility or liability on the part of the County in the event of default by any of the Districts in the payment of any such obligation. G. Operating Costs of the Districts. The estimated cost of engineering services, legal services and administrative • services, together with the estimated costs of the Districts' organization and initial operations, are anticipated to be $100,000, which may be eligible for reimbursement from Debt proceeds. In addition to the capital costs of the Public Improvements, the Districts will require operating funds for administration and to plan and cause the Public Improvements to be operated and maintained. The first year's operating budget for each District is anticipated to be derived from property taxes and other revenues, and are estimated as follows: (1) $40,000 for District No. 1; (2) $20,000 for District No. 2; and (3) $15,000 for District No. 3. The Maximum Debt Mill Levy for the repayment of Debt shall not apply to the Districts' ability to increase their respective mill levies as necessary for provision of operation and maintenance services to taxpayers and service users located within the Service Area. The "Aggregate Mill Levy Cap" shall be the maximum mill levy a District is permitted to impose upon the taxable property within that District for payment of Debt and operations and maintenance functions, and shall be sixty-five (65) mills; provided that if, on or after January 1, 2006, there are changes in the method of calculating assessed valuation or any constitutionally mandated tax credit, cut or abatement; the mill levy limitation applicable to such Debt may be increased or decreased to reflect such changes, such increases or decreases to be determined by the Board in good faith(such determination to be binding and final) so that to the extent possible, the actual tax revenues generated by the mill levy, as adjusted for changes occurring after January 1, 2006, are neither diminished nor enhanced as a result of such changes. For purposes of the foregoing, a change in the ratio of actual valuation to assessed valuation shall be deemed to be a change in the method of calculating assessed valuation. Although a mill levy imposed by • a District for operations and maintenance may exceed fifteen (15) mills as part of the Aggregate I1 Mill Levy Cap, at no time shall the debt service mill levy of any District exceed the Maximum • Debt Mill Levy. H. Elections. The Districts will call elections on the questions of organizing the Districts, electing the initial Boards, and setting in place the proposed financial structure as required by TABOR. The election will be conducted as provided in the Uniform Election Code of 1992, the Municipal Election Code, and TABOR. In accordance with Section 2-14-20(J) of the County Code,proposed ballot questions will be submitted to the County no later than August 1, 2007. VII. CONSOLIDATION After all Debt has been issued by the Districts and adequate provision has been made for payment of all Debt of the Districts, the electorates of District Nos. 1 and 2 will have the opportunity to consider the consolidation of District Nos. 1 and 2 into a single entity, or the dissolution of a District in accordance with State law. It is currently anticipated that District Nos. 1 and 2 will consolidate into a single entity once the Project has been built-out and adequate provision for repayment of Debt issued by District Nos. 1 and 2 has been made. District Nos. 1 and 2 will not consider consolidation until such time as adequate provision has been made for operation and maintenance of the Public Improvements then-maintained by District Nos. 1 and 2. In the event the obligation for operation and maintenance is undertaken by another party, or is otherwise no longer the responsibility of the Districts, the County may request the Boards to • consider dissolution. Ultimately, control of any decision to consolidate or dissolve will rest with the respective electorate of each District. VIII. PROPOSED AND EXISTING INTERGOVERNMENTAL AGREEMENTS AND EXTRATERRITORIAL SERVICE AGREEMENTS As set forth in Section II.C., it is anticipated that the Districts will enter into one or more intergovernmental agreements ("IGAs") between and among the Districts to help assure the orderly development of the Public Improvements in accordance with the requirements of this Service Plan. The IGAs may be amended from time to time by mutual agreement of the Districts in order to best serve the evolving needs of the Project, and without the need to amend this Service Plan. It is intended that the IGAs will address the methods under which the Districts will agree to (1) design, construct, acquire, install or otherwise provide the Public Improvements, (2) provide for the continued operation and maintenance of the street improvements installed within the Service Area, and (3) coordinate the dedication and conveyance of certain of the Public Improvements to other governmental entities having jurisdiction, including but not limited to the County, SVSD, and LPWD. It is also currently anticipated that the Districts may enter into an intergovernmental agreement(s) or other agreement(s) with LPWD and/or SVSD. Any and all intergovernmental agreements not expressly contemplated herein shall . require forty-five (45) day notice publication and written notice to the County pursuant to Section 32-1-207(3)(b), C.R.S. If the County expresses written objection to the proposed action, 12 • the proposed action shall be considered a material modification of the Service Plan and shall be resolved only in accordance with Section 32-1-207(2) C.R.S. The vote by a Board to enter into such an intergovernmental agreement which precedes the notice to the County, must occur at a public meeting of the District for which the District has sent written notification via U.S. mail at least fourteen (14) days and not more than thirty (30) days in advance of such a meeting to all electors, residents, and land owners. Such notice shall include the time, date and location of the meeting, as well as a general description of the matters to be considered. With the specific exception of facilities to be constructed outside the boundaries of the Districts and which are necessary for the development of the Project and are set forth as part of the Primary Infrastructure Plan, the Districts may only provide services to properties outside the Districts' Service Area pursuant to extraterritorial service agreements with the written consent of the BOCC. Any extraterritorial service agreements entered into by a District that are not described in this Service Plan shall require forty-five (45) day notice publication and written notice to the County pursuant to Section 32-1-207(3)(b), C.R.S. If, within forty-five (45) days of the publication of such notice, the County expresses to the District a written objection to the proposed action, then the proposed action shall be considered a material modification of the Service Plan and shall be resolved only in accordance with Section 32-1-207(2), C.R.S. The vote by a Board to enter into such an extraterritorial agreement which precedes the notice to the County, must occur at a public meeting of the District for which the District has sent written notification via U.S. mail at least fourteen (14) days and not more than thirty (30) days in advance of such a meeting to all electors, residents, and land owners. Such notice shall include the time, date and location of the meeting, as well as a general description of the matters to be • considered. IX. CONCLUSION It is submitted that this Service Plan for the Districts, as required by Section 32-1-203(2), C.R.S., and Section 32-1-203(3), establishes that: 1. There is sufficient existing and projected need for organized service in the area to be serviced by the Districts; 2. The existing service in the area to be served by the Districts is inadequate for present and projected needs; 3. The Districts are capable of providing economical and sufficient service to the area within their proposed boundaries; 4. The area to be included in the Districts does have, and will have, the financial ability to discharge the proposed indebtedness on a reasonable basis; 5. Adequate service is not, and will not be, available to the area through the County or other existing municipal or quasi-municipal corporations, including existing special districts, within a reasonable time and on a comparable basis; • 13 • • • 6. The facility and service standards of the Districts are compatible with the facility and service standards of the County and each municipality which is an interested party under Section 32-1-204(1), C.R.S.; 7. The proposal is in substantial compliance the County's Master Plan adopted pursuant to Section 30-28-106, C.R.S.; 8. The proposal is in compliance with any duly adopted County, regional or state long-range water quality management plan for the area; 9. The creation of the Districts is in the best interests of the area proposed to be served; and 10. The creation of the Districts is in the best interests of the residents and future residents of the area proposed to be served. Therefore, it is hereby respectfully requested that the Board of County Commissioners of Weld County, Colorado, which has jurisdiction to approve this Service Plan by virtue of Section 32-1-204, C.R.S., et seq., as amended, adopt a resolution which approves this Consolidated Service Plan for the Waterfront at Foster Lake Metropolitan District Nos. 1, 2 and 3, as submitted. • • 14 • EXHIBIT A Legal Descriptions District No. 1: A PARCEL OF LAND LOCATED IN THE SOUTH HALF OF SECTION 27 AND THE NORTH HALF OF SECTION 34, ALL IN TOWNSHIP 3 NORTH, RANGE 68 WEST OF THE SIXTH PRINCIPAL MERIDIAN, COUNTY OF WELD, STATE OF COLORADO BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SAID SECTION 34 WHENCE THE NORTH ONE-QUARTER CORNER OF SAID SECTION 34 BEARS NORTH 89°07'33" EAST 2566.17 FEET, SAID LINE FORMING THE BASIS OF BEARING FOR THIS DESCRIPTION; THENCE ALONG THE NORTH LINE OF THE NORTHWEST QUARTER OF SAID SECTION 34 NORTH 89°07'33" EAST 30.01 FEET TO A POINT ON THE EAST RIGHT-OF-WAY LINE OF WELD COUNTY ROAD NO. 7 AND THE POINT OF BEGINNING; THENCE ALONG SAID EAST RIGHT-OF-WAY LINE AND ALONG A LINE 30.00 FEET EAST OF AND PARALLEL WITH THE WEST LINE OF THE SOUTHWEST QUARTER OF SECTION 27, NORTH 00°22'25" WEST 2654.12 TO A POINT ON THE NORTH LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 27 FEET; • THENCE ALONG SAID NORTH LINE NORTH 89°04'53" EAST 1354.30 FEET; THENCE SOUTH 06°51'09" WEST 266.98 FEET; THENCE SOUTH 30°38'53" EAST 445.00 FEET; THENCE SOUTH 42°21'07" WEST 219.00 FEET; THENCE SOUTH 23°06'07" WEST 660.00 FEET; THENCE SOUTH 24°53'53" EAST 700.00 FEET; THENCE NORTH 88°51'07" EAST 454.00 FEET; THENCE SOUTH 60°53'53" EAST 385.00 FEET; THENCE NORTH 86°21'07" EAST 178.52 FEET; THENCE SOUTH 75°00'00" EAST 155.32 FEET; THENCE SOUTH 00°24'02" WEST 89.26 FEET; THENCE SOUTH 85°38'17" EAST 582.71 FEET; THENCE NORTH 65°31'22" EAST 315.60 FEET; THENCE NORTH 52°0424" EAST 339.15 FEET; THENCE NORTH 50°39'42" EAST 213.85 FEET; THENCE NORTH 21°19'16" EAST 257.83 FEET; THENCE NORTH 00°31'12" WEST 298.26 FEET; THENCE NORTH 14°21'24" WEST 244.37 FEET; THENCE NORTH 12°34'51" WEST 588.61 FEET; THENCE NORTH 43°15'27" EAST 134.45 FEET; THENCE NORTH 51°34'02" EAST 332.64 FEET; THENCE NORTH 41°59'02" EAST 419.65 FEET TO A POINT ON THE NORTH LINE OF THE SOUTHEAST QUARTER OF SECTION 27; THENCE ALONG SAID NORTH LINE, NORTH 89°04'53" EAST 472.67 FEET TO A POINT ON THE WEST RIGHT-OF-WAY LINE OF INTERSTATE 25; THENCE ALONG SAID WEST RIGHT-OF-WAY LINE SOUTH 00°06'27" WEST 2577.68 FEET; THENCE SOUTH 85°59'05" WEST 456.95 FEET; THENCE SOUTH 89°07'10" WEST 214.69 FEET; THENCE SOUTH 00°52'50" EAST 30.00 FEET; THENCE NORTH 89°07'10" EAST 670.00 FEET; THENCE SOUTH 00°00'41" EAST 25.00 FEET; THENCE SOUTH 89°07'10" WEST 492.80 FEET; THENCE ALONG THE ARC OF A CURVE TO THE • LEFT (SAID CURVE HAVING A RADIUS OF 800.00 FEET, A CENTRAL ANGLE OF 66°08'08" AND A CHORD WHICH BEARS SOUTH 56°03'06" WEST 873.01), A DISTANCE OF 923.43; THENCE SOUTH 22°59'02" WEST 338.11 FEET; THENCE • ALONG THE ARC OF A CURVE TO THE RIGHT (SAID CURVE HAVING A RADIUS OF 700.00 FEET, A CENTRAL ANGLE OF 89°55'40" AND A CHORD WHICH BEARS SOUTH 67°56'52" WEST 989.33), A DISTANCE OF 1098.67; THENCE NORTH 67°05'18" WEST 1517.51 FEET; THENCE ALONG THE ARC OF A CURVE TO THE RIGHT (SAID CURVE HAVING A RADIUS OF 2225.00 FEET, A CENTRAL ANGLE OF 14°33'24" AND A CHORD WHICH BEARS NORTH 59°48'36" WEST 563.77), A DISTANCE OF 565.29; THENCE NORTH 52°31'54" WEST 143.34 FEET; THENCE ALONG THE ARC OF A CURVE TO THE LEFT (SAID CURVE HAVING A RADIUS OF 700.00 FEET, A CENTRAL ANGLE OF 38°20'33" AND A CHORD WHICH BEARS NORTH 71°42'10" WEST 459.75), A DISTANCE OF 468.44; THENCE SOUTH 89°01'32" WEST 141.15 FEET TO THE POINT OF BEGINNING. EXCEPTING THERE FROM THE FOLLOWING DESCRIBED PARCEL: COMMENCING AT THE NORTH ONE-QUARTER CORNER OF SAID SECTION 34, WHENCE THE NORTHWEST CORNER OF SAID SECTION 34 BEARS SOUTH 89°07'33" WEST, A DISTANCE OF 2566.17 FEET, SAID LINE FORMING THE BASIS OF BEARINGS FOR THIS DESCRIPTION; THENCE ALONG THE WEST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 34, SOUTH 00°35'07" EAST, A DISTANCE OF 30.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE ALONG A LINE 30.00 FEET SOUTH OF AND PARALLEL WITH THE • NORTH LINE THE NORTHWEST QUARTER OF SAID SECTION 34 NORTH 89°07'33" EAST, A DISTANCE OF 0.15 FEET; THE ALONG A LINE 30.00 SOUTH OF AND PARALLEL WITH THE NORTH LINE OF THE NORTHEAST QUARTER OF SAID SECTION 34 NORTH 89°07'10" EAST, A DISTANCE OF 765.29 FEET; THENCE SOUTH 02°06'45" WEST, A DISTANCE OF 310.68 FEET; THENCE NORTH 87°52'58" WEST, A DISTANCE OF 751.65 FEET TO A POINT ON THE WEST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 34; THENCE ALONG SAID WEST LINE NORTH 00°35'07" WEST, A DISTANCE OF 270.95 FEET TO THE TRUE POINT OF BEGINNING. SAID PARCEL CONTAINS 217.738 ACRES,MORE OR LESS. District No. 2: A PARCEL OF LAND LOCATED IN THE NORTHEAST QUARTER OF SECTION 3, TOWNSHIP 2 NORTH, RANGE 68 WEST AND SECTION 34, TOWNSHIP 3 NORTH, RANGE 68 WEST OF THE SIXTH PRINCIPAL MERIDIAN, COUNTY OF WELD, STATE OF COLORADO BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SECTION 34 WHENCE THE WEST ONE-QUARTER CORNER OF SECTION 34 BEARS SOUTH 00°24'50" EAST • 2659.16 FEET, SAID LINE FORMING THE BASIS OF BEARING FOR THIS DESCRIPTION; THENCE ALONG THE NORTH LINE OF THE NORTHWEST • QUARTER OF SAID SECTION 34 NORTH 89°07'33" EAST 30.01 FEET TO A POINT ON THE EAST RIGHT-OF-WAY LINE OF WELD COUNTY ROAD NO. 7; THENCE ALONG SAID EAST RIGHT-OF-WAY LINE SOUTH 00°24'50" EAST 708.42 FEET TO THE POINT OF BEGINNING; THENCE NORTH 89°59'22" EAST 788.34 FEET; THENCE ALONG THE ARC OF A CURVE TO THE RIGHT (SAID CURVE HAVING A RADIUS OF 800.00 FEET, A CENTRAL ANGLE OF 17°03'35" AND A CHORD WHICH BEARS NORTH 20°39'30" EAST 237.32), A DISTANCE OF 238.20; THENCE NORTH 29°13'01" EAST 110.87 FEET; THENCE ALONG THE ARC OF A CURVE TO THE LEFT (SAID CURVE HAVING A RADIUS OF 2225.00 FEET, A CENTRAL ANGLE OF 07°07'18" AND A CHORD WHICH BEARS SOUTH 63°31'39" EAST 276.38), A DISTANCE OF 276.56; THENCE SOUTH 67°05'18" EAST 1517.51 FEET; THENCE ALONG THE ARC OF A CURVE TO THE LEFT (SAID CURVE HAVING A RADIUS OF 700.00 FEET, A CENTRAL ANGLE OF 89°55'40" AND A CHORD WHICH BEARS NORTH 67°56'52" EAST 989.33), A DISTANCE OF 1098.67; THENCE NORTH 22°59'02" EAST 338.11 FEET; THENCE ALONG THE ARC OF A CURVE TO THE RIGHT (SAID CURVE HAVING A RADIUS OF 800.00 FEET, A CENTRAL ANGLE OF 66°08'08" AND A CHORD WHICH BEARS NORTH 56°03'06" EAST 873.01), A DISTANCE OF 923.43; THENCE NORTH 89°07'10" EAST 492.80 FEET; THENCE SOUTH 00°57'01" EAST 25.00 FEET; THENCE SOUTH 89°07'10" WEST 455.00 FEET; THENCE SOUTH 00°56'56" EAST 25.00 • FEET; THENCE SOUTH 85°51'25" EAST 456.80 FEET TO A POINT ON THE WEST RIGHT-OF-WAY LINE OF INTERSTATE NO. 25; THENCE ALONG SAID WEST RIGHT-OF-WAY LINE SOUTH 00°57'01" EAST 2590.28 FEET; THENCE SOUTH 00°56'51" EAST 267.75 FEET; THENCE SOUTH 13°55'35" EAST 289.41 FEET; THENCE SOUTH 00°56'51" EAST 1025.00 FEET; THENCE SOUTH 07°07'44" EAST 325.05 FEET; THENCE SOUTH 00°56'51" EAST 494.18 FEET; THENCE SOUTH 89°03'18" WEST 66.01 FEET; THENCE NORTH 65°01'41" WEST 69.29 FEET; THENCE SOUTH 00°04'10" WEST 339.78 FEET; THENCE SOUTH 89°47'50" WEST 567.78 FEET; THENCE SOUTH 50°06'50" WEST 440.00 FEET; THENCE SOUTH 73°04'17" WEST 1383.42 FEET; THENCE SOUTH 23°14'50" WEST 55.32 FEET TO A POINT ON THE WEST LINE OF THE NORTHEAST QUARTER OF SECTION 3; THENCE ALONG SAID WEST LINE NORTH 00°35'48" EAST 730.38 FEET TO THE SOUTH ONE-QUARTER CORNER OF SAID SECTION 34; THENCE ALONG THE SOUTH LINE OF THE SOUTHWEST QUARTER OF SECTION 34, NORTH 89°54'46" WEST 520.82 FEET; THENCE NORTH 28°18'59" WEST 737.00 FEET; THENCE NORTH 01°04'15" WEST 2033.10 FEET TO A POINT ON THE NORTH LINE OF THE SOUTHWEST QUARTER OF SECTION 34; THENCE ALONG SAID NORTH LINE NORTH 89°07'20" EAST 817.26 FEET TO THE CENTER ONE- QUARTER CORNER OF SECTION 34; THENCE NORTH 00°34'36" WEST 1333.53 FEET TO THE NORTHEAST CORNER OF THE SOUTH HALF OF THE NORTHWEST QUARTER OF SECTION 34; THENCE ALONG THE NORTH LINE OF THE SOUTH HALF OF THE NORTHWEST QUARTER OF SECTION 34 SOUTH • 89°26'07" WEST 2540.06 FEET TO A POINT ON THE EAST RIGHT-OF-WAY LINE OF WELD COUNTY ROAD NO. 7; THENCE ALONG SAID EAST RIGHT-OF-WAY • LINE,NORTH 00°24'49" WEST 603.07 FEET TO THE POINT OF BEGINNING. SAID PARCEL CONTAINS 357.376 ACRES, MORE OR LESS. District No. 3: A PARCEL OF LAND LOCATED IN THE NORTHWEST QUARTER OF SECTION 34, TOWNSHIP 3 NORTH, RANGE 68 WEST OF THE SIXTH PRINCIPAL MERIDIAN, COUNTY OF WELD, STATE OF COLORADO BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SAID SECTION 34 WHENCE THE SOUTHWEST CORNER OF THE NORTH ONE-HALF OF THE NORTHWEST ONE-QUARTER OF THE SAID SECTION 34 BEARS SOUTH 00°24'50" EAST 1311.57 FEET, SAID LINE FORMING THE BASIS OF BEARING FOR THIS DESCRIPTION; THENCE ALONG THE NORTH LINE OF THE NORTHWEST QUARTER OF SAID SECTION 34 NORTH 89°07'33" EAST 30.01 FEET TO A POINT ON THE EAST RIGHT-OF-WAY LINE OF WELD COUNTY ROAD NO. 7 AND THE POINT OF BEGINNING; THENCE NORTH 89°01'32" EAST 141.15 FEET; THENCE ALONG THE ARC OF A • CURVE TO THE RIGHT (SAID CURVE HAVING A RADIUS OF 700.00 FEET, A CENTRAL ANGLE OF 38°20'33" AND A CHORD WHICH BEARS SOUTH 71°42'10" EAST 459.75), A DISTANCE OF 468.44; THENCE SOUTH 52°31'54" EAST 143.34 FEET; THENCE ALONG THE ARC OF A CURVE TO THE LEFT (SAID CURVE HAVING A RADIUS OF 2225.00 FEET, A CENTRAL ANGLE OF 07°26'06" AND A CHORD WHICH BEARS SOUTH 56°14'57" EAST 288.52), A DISTANCE OF 288.73; THENCE SOUTH 29°13'01" WEST 110.87 FEET; THENCE ALONG THE ARC OF A CURVE TO THE LEFT (SAID CURVE HAVING A RADIUS OF 797.34 FEET, A CENTRAL ANGLE OF 17°07'02" AND A CHORD WHICH BEARS SOUTH 20°39'30" WEST 237.32), A DISTANCE OF 238.21; THENCE SOUTH 89°59'22" WEST 788.34 FEET TO A POINT ON THE EAST RIGHT-OF-WAY LINE OF WELD COUNTY ROAD NO. 7; THENCE ALONG SAID EAST RIGHT-OF-WAY LINE NORTH 00°24'50" WEST 708.42 FEET TO THE POINT OF BEGINNING. SAID PARCEL CONTAINS 11.891 ACRES, MORE OR LESS. • EXHIBIT B • Vicinity Map • • SOUTH HALF OF SECTION 27 AND THE NORTH • HALF OF SECTION 34, TOWNSHIP 3 NORTH, RANGE 68 WEST AND THE NORTHEAST QUARTER OF SECTION 3, TOWNSHIP 2 NORTH, RANGE 68 WEST OF THE 6TH P.M., COUNTY OF WELD, STATE OF COLORADO. CO ORADOHIGHWAY66IMI - .. '��::mm�nnoj . T url.4fn =- III 1111 r. •=,�1't�. g. 7 .11 1111 - �1 MC NTEX ®nan FAFIMB Eli KITF-LEY a,yry'y_� __m. ® I ��'�� THE WATERFRONT I _°° .�4 °"� AlT FOSTER LAKE • ,.IIC,•:.Illtl . � �1�AP. 1 26 1111111111 ,- SLATER ,-■ Skii Foster ■ i Sanborn -t Lake � N � Reservoi 3 • • tai /...yi/nr/iii �/ �� r_-Film � �� - 111111\ llll//� 1111111/-� b5 � / III 0' i lI1i ly II I * �, �, i ni dl�i t iv•41 . •4 .."WAS nn. ;1oi.Q .�.,,,iU 4,. ., ‘94...17,1� v % ' /%44/.1/1 Ii pP��dmn itit j a • •1 !� i4jgj iignlunm 1:00,0,I1iiAY� � A N �.�fo,..4l, buns,,,„„„,4,..„...pir/..,,,,,.0,......„,,,,,„:440,„_,, SIEGRIST) 6 OST /l, b +/ g / ti: ,....„,,,,,, ---di P ADAMS r%%%-I -5 aura ^ J1 .VRAIN STATE PA\RK`S • _ —I o 0 I EXHIBIT B ? VICINITY MAP 0 1 000 2000 4000 ,+y 1900 S.SUNSET ST., SUITE 1-F LONGMONT,CO 80501 • THIS EXHIBIT DOES NOT REPRESENT SCALE: 111 = 20001 MAIN:303.772.5282 ci A MONUMENTED SURVEY. IT IS ONLY FAX: 303.772.7039 k INTENDED IPTION TO DEPICT THE ATTACHED 5-21-2007 BA 1 OF 1 DESCR g JOB# 5161 .002.04 • EXHIBIT C District Boundaries Map • 411 VI d / Q. a 6- 2/4.,,,,, !% / 6,;,.AN 0 k Y 8° Lll • Ei 11 Yi / r r 9 \l A / 7. l \ \ �v 1' CCC CO `.\, Y \SN\\J ` >,/,/// a� ii I On X \ \ i1 T/,)�y` y \\� \\ U W V .1 /� // v{ Y \ � A A\I.' ch , , , , /1// l /21 Zit BZ 0 oa uNnoa a�nn z o 6 \SAY P1 /` f 1 > min U N N 1 \r �� ., ,., I-crzi m u~i R z O O ii5 -/,!\ ❑ \ V , � i , w /l/ if V V \ :" A , , '5 V\ r asds►ec., ,/ / , 7x,///// s,w v A >;. �1 iJ /4// ,E:48,1L ° '- \ � � / j /,�� / aU r f , / /7/O%// ////' 2' 1 / II/ .% w w H Y ,1 cog o X2;; 2 . / / 7, 7/, / Z ,8 /;//;/'///// //::)• z N N oN r0 WN 2! COet U ovu�vs..,ne uiru...rsw ovumr..r�.mwv..,•w.-:oo ioisa-..m.+w ne..n aow. <-^• r, • • • EXHIBIT D Primary Infrastructure Plan • • • • TABLE 1 ON-SITE ESTIMATED PUBLIC IMPROVEMENT CONSTRUCTION COSTS On-Site Costs only for the Waterfront at Foster Lake,Weld County,CO 23-May-07 • ITEM QUANTITY UNIT UNIT PRICE TOTAL 1. Items Calculated Overall 1.1 Internal Road Network Curb and Gutter 134,022 LF $20.00 $2,680,440 Sidewalk 75,290 SY $25.00 $1,882,250 Asphalt/Base Paving 310,000 SY $20.00 $6,200,000 Soil Preparation 310,000 SY $2.00 $620,000 Storm Drainage 48,000 LF $40.00 $1,920,000 Sanitary Sewer Lines 66,000 LF $46.00 $3,036,000 Water Lines 66,000 LF $30.00 $1,980,000 Earthwork 0 CY $6.00 a Miscellaneous Roadways-WCR 7 and WCR 28 have been moved to the Off-site Sheet-Table 2 1.0 Total Internal Street Systems $18,318,690 2.0 Recreation and Open Space Systems-Does not include arterial landscaping(See Parks and Open Space Map) Fishing Pier/Boat Docks 1 EA $150,000.00 $150,000 Pavilion 1 EA $100,000.00 $100,000 North Pocket Park 1 LS $150,000.00 $150,000 South Pocket Park 1 LS $150,000.00 $150,000 Community Center 1 LS $1,500,000.00 $1,500,000 • Open Space 8,851,320 SF $1.50 $13,276,980 Entry Monuments 4 EA $50,000.00 $200,000 Trail System 15,900 LF $6.00 $95,400 2.0 Total Recreation and Open Space Systems $15,622,380 3.0 Non-Potable Water System Improvements(does not include cost of water rights I transfers) Storage/Transfer Facility 3 EA $100,000.00 $300,000 Pump Stations 3 EA $250,000.00 $750,000 Miscellaneous Piping 67,000 LF $20.00 $1,340,000 3.0 Total Non-Potable Water System $2,390,000 Total Cost $36,331,070 Total Cost WI 15%Contingency $41,780,731 • C\Documents and Settings\mcaskin\Local Settings\Temporary Internet Files\OLK65\W atedront Public Improvement Costs(Combined)052307.xls • • TABLE 2 • OFF-SITE ESTIMATED PUBLIC IMPROVEMENT CONSTRUCTION COSTS Off-Site(Oversizing)Costs only for the Waterfront at Foster Lake,Weld County,CO 21-May-07 TOTAL ITEM/LOT BASIS QUANTITY UNIT UNIT PRICE COST Utilities Off-Site Sanitary Sewer Line $0 Off-Site Dry Utilities $250,000 Off-Site Water Lines and Appurtenances 18"Waterline from SH66 to WCR 28 5,280 LF $50.00 $264,000 Design-Actual+15% 1 EA $39,600.00 $39,600 Bidding 8,Construction-15% 1 EA $39,600.00 $39,600 Contingency-15% 1 EA $39,600.00 $39,600 Total Off-Site Water Improvements $382,800 Off-Site Ditch Improvements Spillway to Foster Lake 1 EA $500,000.00 $500,000 Piping of Outlet#3 5,400 LF $100.00 $540,000 Outlet#3 Headworks 1 LS $250,000.00 $250,000 Breach Path Drop Structures 1 LS $500,000.00 $500,000 St.Vrain River Restoration 1 LS $2,500,000.00 $2,500,000 Bridges for Spillway/Breach Path 4 EA $500,000.00 $2,000,000 Design/Construction/Contingency @ 25% 1 LS $1,572,500.00 $1,572,500 Total Off-Site Ditch Improvements $7,362,500 • Off-Site Transportation Improvements Potential Improvements(TBD by Final Traffic Report) $1,450,000 Intersection of WCR 7/SH 66 WCR 7-between WCR 28 and SH66 Signal at WCR 5.5/SH 119 WCR 26-between WCR 7 8 WCR 5.5 Pedestrian Crossing Signal at High School Design of Transportation Facilities(assumed 10%) $145,000 Subtotal $1,595,000 Arterial Roadways,Adjacent to the Site Weld County Road 7- Curb and Gutter 2,700 LF $12.00 $32,400 Sidewalk 2,400 SY $25.00 $60,000 Asphalt/Base Paving 9,000 SY $20.00 $180,000 Soil Preparation 9,000 SY $2.00 $18,000 Weld County Road 28 Curb and Gutter 13,000 LF $12.00 $156,000 Sidewalk 12,000 SY $25.00 $300,000 Asphalt/Base Paving 42,000 SY $20.00 $840,000 Soil Preparation 42,000 SY $2.00 $84,000 Subtotal of Arterial Roadways $1,670,400 Subtotal of Arterial Roadways w/ 15%Contingency $1,920,960 Total Off-Site Transportation Improvements $3,515,960 Note: All cost estimates shown for transportation Improvements do not include soft items such as landscaping,irrigation,street lighting,fencing,entry slgnage,bus stops,etc.Assumed In contingency • Total Off-Sites $11,511,260 Total Cost wth 15%Contingency $13,237,949 C:\Documents and Seahgs\mcaskin\Local Settings\Temporary Internet FilestOLN65\Waterfront Public Improvement Costs(Combined)052307.xls • • • EXHIBIT E Map Depicting Public Improvements • • C. 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Q0 C 0 .. - 0 0 0 p N M �T `-1 b ti N N N N N N N N N N pM M M M M r1 n M rn M C. F `y 5 - 7 aNNNNNNNONOONOONOOONOOOONNNNNNNNNN °3 3 .l VCa U $28,035,000 Waterfront at Foster Lake Metropolitan District Nos. 1 - 3 Limited Tax General Obligation Bonds Series 2011 Sources & Uses Sources Of Funds Par Amount of Bonds $28,035,000.00 Total Sources $28,035,000.00 Uses Of Funds Total Underwriter's Discount (2.000%) _ 560,700.00 Costs of Issuance 120,000.00 Deposit to Debt Service Reserve Fund 2,641,137.81 Deposit to Cayrtalized Interest(CIF)Fu_nd Proceeds Available for Construction 24,713,162.19 Total Uses $28,035,000.00 • Piper Jaffray & Co. Public Finance Services -Page 7- 5/21/2007 • EXHIBIT G Statutory Considerations A. There is sufficient existing and projected need for organized service in the area to be served by the Districts. The Financing Plan and the content of this Service Plan describe the overall development plans for the Project. The Project will require substantial Public Improvements, totaling approximately $55,000,000 (in 2007 dollars). Although the Districts may only finance a portion of the Public Improvements (subject to the Total Debt Issuance Limitation of $28,000,000), the Districts provide a mechanism to ensure that the Public Improvements are constructed on a schedule as will facilitate development within the Service Area. A multiple district structure is proposed in order to ensure that organized service is provided to the totality of the Project, and provides a mechanism to ensure that the varying levels of service necessitated by commercial and residential landowners may be reasonably accomplished. The demand for services and facilities to be provided by the Districts is demonstrable. B. The existing service in the area to be served by the Districts is inadequate for the present and projected needs / adequate service through other governmental entities, including existing special districts, will not be available within a reasonable time and on a comparable basis. There are currently no other entities in existence in the immediate vicinity of the Project which have the ability and/or desire to undertake the design, financing and • construction of the Public Improvements identified in this Service Plan. It is also the understanding of the proponents of the Districts that the County does not consider it feasible or practicable for the County to provide the necessary services and facilities for the Project. As set forth in the Service Plan, LPWD and SVSD will be providing water and sanitary sewer services to the Project. However, there are no existing governmental entities that are available to undertake the operation and maintenance of certain of the Public Improvements, including but not limited to the street improvements within the Project. The formation of the Districts is in the best interests of the area to be served. C. The Districts are capable of providing economical and sufficient service to the area within their boundaries. The proposed Districts are necessary in order to provide the most economical and efficient means of undertaking the District Activities to serve existing and future residents within their respective boundaries, as those boundaries may be amended from time to time. The Financing Plan attached to this Service Plan as Exhibit F demonstrates that the Districts will be able to provide economical and sufficient service to the Project. D. The area to be included in the Districts has, or will have, the financial ability to discharge the proposed indebtedness on a reasonable basis. The Financing Plan attached to this Service Plan as Exhibit F demonstrates that the Districts will have the ability to discharge the Total Debt Issuance Limitation of$28,000,000 on a reasonable basis and with a reasonable debt service mill levy. • • • • E. The facility and service standards of the Districts are compatible with the facility and service standards of Weld County. This Service Plan and all other applicable rules and regulations of the County require that the County's facility and service standards associated with the Public Improvements be met. Therefore, the facility and service standards of the Districts will be compatible with those of the County. F. The proposal is in substantial compliance with any master plan adopted pursuant to Section 30-28-106, C.R.S. /the proposal is in compliance with any duly adopted City, County, Regional, or State long-range water quality management plan for the area. The Service Plan clearly states that all Public Improvements must be constructed in accordance applicable ordinances, codes and regulations of the County, inclusive of the applicable Master Plan and any Water Quality Management Plan. In addition, the Service Plan requires that water and sanitary sewer Public Improvements be installed in accordance with applicable regulations of LPWD and SVSD. The Service Plan also states that the County has exclusive jurisdiction over all property development issues within the boundaries of the Districts. G. The creation of the proposed special districts will be in the best interests of the area proposed to be served. The Service Plan establishes that the creation of the Districts is in the best interests of the area to be served. A multiple district structure is merited given the varying land uses within the project — namely commercial and a mix of residential uses. The Districts provide a mechanism to coordinate the funding, acquisition and construction of certain off-site and on-site Public Improvements required for successful build-out of the Project, as more • particularly identified in the Primary Infrastructure Plan. In addition, following formation, the Districts will constitute quasi-municipal corporations vested with the ability to undertake the operation and maintenance of certain of the Public Improvements within the Project not dedicated to the County, LPWD or SVSD. For that reason, the formation of the Districts will support the maintenance of public infrastructure serving the Project over the long term, a benefit accruing to future residents and taxpayers of the Districts as well as the County generally. • • • RE: SERVICE PLAN-WATERFRONT AT FOSTER LAKE METROPOLITAN DISTRICT NOS. 1, 2, AND3 PAGE 1 • RESOLUTION RE: ACCEPTANCE OF FILING OF SERVICE PLAN, REFERRAL TO WELD COUNTY PLANNING COMMISSION FOR STUDY AND RECOMMENDATION, AND SET HEARING DATE FOR CONSIDERATION - WATERFRONT AT FOSTER LAKE METROPOLITAN DISTRICT NOS. 1, 2, AND 3. WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Service. Plan for the Waterfront at Foster Lake Metropolitan District Nos. 1, 2, and 3, has been received by the Clerk to the Board from counsel for the proposed Metropolitan Districts, Grimshaw & Harring, P.C., 1700 Lincoln Street, Suite 3800, Denver, Colorado 80203, for filing with, and consideration by, the Board of County Commissioners, and WHEREAS, Section 32-1-204(2), C.R.S., requires that the Service Plan be delivered to the Weld County Planning Commission for study and recommendation to the Board of County Commissioners, such recommendation to be received by the Board within thirty (30) days after the filing of the Service Plan, and • WHEREAS, the Board deems that the date of filing should be commensurate with the date of this Resolution, in order to allow enough time for referrals of the Service Plan to appropriate agencies for comment prior to the public hearing before the Planning Commission, and WHEREAS, the Board of County Commissioners deems it advisable to accept the filing of the Service Plan as of June 6, 2007, and to refer it to the Weld County Planning Commission for a hearing to be held on July 17, 2007, with study and recommendation to be received by the Board from Planning Commission prior to July 23, 2007, pursuant to the proposed schedule recommended by the applicant, which schedule waives the thirty-day requirement, and WHEREAS, the Board of County Commissioners deems it advisable to set a public hearing date for its consideration of said Service Plan, said hearing date to be August 8, 2007, at 9:00 a.m., and NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the filing of said Service Plan be, and hereby is, accepted. BE IT FURTHER RESOLVED that said Service Plan be, and hereby is, referred to the Weld County Planning Commission for study and recommendation back to the Board of County Commissioners, such recommendation to be received by the Board prior to July 23, 2007. • RE: SERVICE PLAN-WATERFRONT AT FOSTER LAKE METROPOLITAN DISTRICT NOS. 1, 2, AND3 PAGE 2 • BE IT FURTHER RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the public hearing for consideration of the Waterfront at Foster Lake Metropolitan District Nos. 1, 2, and 3, be, and hereby is, August 8, 2007, at 9:00 a.m. BE IT FURTHER RESOLVED by the Board of County Commissioners that the organizers of the proposed Metropolitan Districts have paid the required statutory filing fee of $500.00 to the Clerk to the Board. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 6th day June, A.D., 2007. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ATTEST: Weld County Clerk to the Board BY: David E. Long, Chair Deputy Clerk to the Board • William H. Jerke, Pro-Term APPROVED AS TO FORM: Robert D. Masden County Attorney William F. Garcia Date of signature: Douglas Rademacher • S . STATE OF COLORADO DEPARTMENT OF LOCAL AFFAIRS '.9°0. DIVISION OF LOCAL GOVERNMENT R� r5 �`� °o Local Government Services • *i` G`,� n 1313 Sherman Street,Suite 521 *dos* Denver,Colorado 80203 Phone: (303)866-2156 Bill Ritter,Jr. Governor FAX: (303)866-4819 TDD: (303)866-5300 Susan E.IGrkpalrick Executive Director NOTICE OF FILING OF SPECIAL DISTRICT SERVICE PLAN Pursuant to CRS 32-1-202(1), the County Clerk and Recorder shall notify the Division of Local Government within five days after the filing of a service plan for the formation of a new special district. •Please provide the information indicated and return this form to the Division of Local Government. WATERFRONT AT FOSTER LAKE • METROPOLITAN DISTRICT NOS. 1-3 MAY 31, 2007 Name of Proposed District Filing Date • METROPOLITAN DISTRICT AUGUST 8, 2007 Type of District Proposed Date of Hearing 915 10th STREET 9:00 A.M GREELEY, CO 80631 - Time of Hearing Location of Hearing GRIMSHAW &. EARRING, •P.C. ATTN: MARCUS A. MCASKIN (303) 839-3800 Contact Person Filing Service PlanPhone WELD COUNTY County Receiving Service Plan MAY 31, 2007 Clerk and Recorder Date FORM DLG-60 Revised 6/02 • • • • Page 1 of 2 • Linda Sweetman-King From: Rob Fleck [rob@stsan.com] Sent: Thursday, May 10, 2007 3:14 PM To: Linda Sweetman-King Subject: RE: Waterfront at Foster Lake-Service Agreement The requested changes have been sent to the board. The board meeting is next week. The one change that was not recommended for approval was the verbiage about "who benefit by such" in paragraph 10. And change the e to a y in the second sentence in paragraph 10 in the word reasonable. Sincerely, Robert Fleck District Engineering/Project Manager St. Vrain Sanitation District 11307 Business Park Circle Firestone, Colorado 80504 Rob@stsan.com 303-776-9570 303-682-4681 fax 303-485-1968 Original Message From: Linda Sweetman-King [mailto:Isk@terravisionsllc.com] Sent: Thursday, May 10, 2007 2:54 PM To: Rob Fleck Cc: Lauren Balsley; Cathy Leslie Subject: Waterfront at Foster Lake - Service Agreement Rob: Have you had a chance to review the draft of the agreement? When may I expect your comments? Will we still be able to make your board meeting with a draft of the agreement? TKS, LSK Sincerely, Linda Sweetman-King '1"erraVisions, 1745 Shea Center Drive Suite 310 Highlands Ranch,CO 80129 O: 303.468.6700 F: 303.468.6705 • C: 303.472.7862 1sk@tcrravisionsllc.com 5/16/2007 • • Page 1 of 1 • Linda Sweetman-King From: Linda Sweetman-King Sent: Wednesday, May 02, 2007 4:59 PM To: rob@stsan.com Cc: 'Cathy Leslie'; dkuosman@faegre.com; 'Schaub, Peter'; Lauren Balsley Subject: FW: Anderson/St. Vrain Rob: As you know I am working on the old Anderson farm property called Waterfront at Foster Lake. Attached is our redline against your boiler plate of the Subdivision Service Agreement. I will call you in the morning to discuss review and timing. The County is wanting us to have this agreement complete with you prior to our Change of Zone submittal in May. What is the schedule for your board meetings? I'll be in touch. Thanks in advance for your assistance on the Agreement. Sincerely, TerraVisions, LLC Linda Sweetman-King 1745 Shea Center Drive#310 Highlands Ranch, CO 80129 303-468-6700 Office 303-472-7862 Cell • • 5/16/2007 • • Page 1 of 3 • Linda Sweetman-King From: Linda Sweetman-King Sent: Monday, May 07, 2007 10:32 AM To: 'Rob Fleck' Cc: Lauren Balsley Subject: RE: Anderson/St.Vrain Rob: I have attached the current lot plan for Waterfront at Foster Lake. This will visually help you to see that Jim Anderson still owns 5 acres west of 1-25 and south of the Lake.As you recall, he came in separate for the inclusion agreement. Would it be correct to assume that Jim will need to do a separate Service Agreement with you for his 5 acres and therefore the legal description for my service agreement would exclude his 5 acres? If it's easier,just call me to discuss. Thanks so much! Sincerely, Linda Sweetman-King "TcrraVisions, LL,C. 1745 Shea Center Drive Suite 310 Highlands Ranch,CO 80129 O: 303.468.6700 F: 303.468.6705 • C:: 303.472.7862 lkk(a)tcrravisirm;llc.cum From: Rob Fleck [mailto:rob@stsan.com] Sent: Friday, May 04, 2007 9:00 AM To: Linda Sweetman-King Subject: RE: Anderson/St. Vrain For the subdivision service agreement, just include the land you will develop. Sincerely, Robert Fleck District Engineering/Project Manager St. Vrain Sanitation District 11307 Business Park Circle Firestone, Colorado 80504 Rob@stsan.com 303-776-9570 303-682-4681 fax 303-485-1968 • 5/16/2007 • • SUBDIVISION SERVICE AGREEMENT • 1. PARTIES. The parties to this Subdivision Service Agreement (this "Agreement") are the ST. VRAIN SANITATION DISTRICT ("District") and MIDWEST HERITAGE INN OF VISALIA, INC., a North Dakota corporation and MIDWEST HERITAGE INN OF DEPTFORD, INC., a North Dakota corporation (collectively, "Applicant"). 2. RECITALS AND PURPOSES. The Applicant owns, or is in the process of purchasing, certain real property, legally described in Exhibit A (the "Property"). Exhibit A is attached to this Agreement and incorporated herein by this reference. The District is a special district, which provides sanitary sewer service to its customers for which monthly service charges are made. The Applicant desires that the District provide sanitary sewer service ("Service") within the boundaries of the Property. The District desires to supply Service. The purpose of this Agreement is to set forth the terms and conditions concerning the purchase of Service connections and the District's providing such Service to the Property. 3. SUBDIVISION OF THE PROPERTY. The Applicant intends to subdivide the Property. The Applicant has furnished the District with preliminary plans which describe the future total development of the Property so that prior to entering into this Agreement the District could study and consider the total development under this Agreement as it relates to future demands upon the District for service within the entire development and the effect this may have, presently and in the future, on the District's entire system and its obligations in regard thereto. At such time as the Applicant obtains a final subdivision plat (the "Final Plat", or collectively, the "Final Plats") for the • subdivision of the Property ("Subdivision"), the Applicant agrees to furnish a reproducible copy of the Final Plat to the District. Any change or alteration in the area, size, shape, density, usages, requirements, number of service connections or timing of development of a Subdivision that may affect the issuance of taps pursuant to this Agreement shall first require the advance written approval of the District. For purposes of this paragraph, the term "approval" shall only extend to the District's review of the Applicant's proposed sanitary sewer infrastructure and other utility- related issues within the Property, and such term shall not include any land-use issues. The District's approval shall not be unreasonably withheld, conditioned or delayed. 4. CONDITIONAL COMMITMENT TO SELL/PURCHASE SANITARY SEWER SERVICE 4.1 Subject to subsections (a) and (b) below, Applicant hereby applies for JTBD) single-family residential equivalent sanitary service connections ("Connections") to the District's sanitary sewer system for service within the Property. Subject to the terms and conditions stated in this Agreement, the District hereby conditionally commits to sell, and the Applicant hereby conditionally commits to purchase, such total number of taps at the then-current plant investment fee per connection, and other applicable fees and charges pursuant to applicable District by-laws, rules and regulations, which may be in force from time to time (the "District's Rules and Regulations") for use solely within the boundaries of the Property, upon the terms and conditions set forth in this Agreement. • tempmail.doc I • (a) Notwithstanding anything to the contrary contained herein, Applicant's obligations under this Residential Subdivision Service Agreement are expressly conditioned upon Applicant's obtaining the necessary entitlements for the Property (including, without limitation, the Final Plat), satisfactory to Applicant in its sole discretion to allow for Applicant's planned development of the Property. (b) In the event the condition precedent in (a) above is not timely satisfied, then this Residential Subdivision Service Agreement shall be deemed void ab initio and the parties shall have no further obligations hereunder. 4.2 The Applicant acknowledges and agrees that the District's conditional commitment is subject to the availability of the Connections at the time the Applicant wishes to purchase such conditionally-committed Connections. Purchase of the conditionally-committed Connections may only be made by paying in full the total amount of the plant investment fee and other applicable fees and charges for each Connection purchased, up to the maximum number specified above. The District represents and warrants that as of the date of this Agreement, it has plant capacity and sufficient connections to serve [TBD] single family residences on the Property described on Exhibit A, serve [TBD] multi-family residences on the Property described on Exhibit A and serve approximately ten (10) acres of commercial development on the Property described on Exhibit A. 4.3 The District makes no warranties, promises or representations that such conditionally-committed Connections will be available for purchase or reservation due to • limitations on its treatment capacity as determined by its plant capacity, collection system capacity, discharge permit, and any governmental regulations or limitations. The Applicant acknowledges and agrees that it is solely responsible for inquiring as to the availability of Connections, and that the District is under no affirmative obligation to inform the Applicant of any other sales or reservations, commitments, or any other events, which may limit the District's ability to sell the conditionally-committed Connections. Applicant assumes all risks of unavailability by not purchasing said conditionally-committed Connections. 4.4 The District's obligation to sell such conditionally committed Connections is expressly conditioned upon the entry of an order of inclusion by the District's Board of Directors upon the submittal by the Applicant of a petition for inclusion and the fulfillment of all conditions of inclusion, which petition was approved by the District's Board of Directors on March 21, 2007. 5. TERM. This Agreement shall continue in full force and effect for a period of fifteen (15) years after the date of execution unless extended by mutual agreement by the parties in writing. 6. ACTIVATION OF TAP. All purchased Connections (taps) shall be deemed activated and subject to the District's minimum service charges pursuant to the District's Rules and Regulations upon payment to the District of plant investment fees and all other fees due for connection to District facilities, which fees are set forth on Exhibit B attached hereto and incorporated herein by this reference. • tempmail.doc 2 7. DESIGN SPECIFICATIONS AND CONSTRUCTION. It is agreed, as a condition • precedent to Service, that all sewer lines and appurtenant facilities required to provide Service within the boundaries of the Property ("Sewer Lines") and all necessary trunk lines, outfall lines and connecting lines and appurtenant facilities within the Property that are necessary to connect with the lines of the District as presently planned, engineered or installed ("On-site Connecting Lines"), shall be installed at the Applicant's sole cost and expense and shall be in designed and constructed in accordance with design and specifications as fixed by the District. The specific design of such Sewer Lines and On-Site Connecting Lines shall be submitted for District review and approval prior to construction, which approval shall not be unreasonably withheld, conditioned or delayed. The Applicant agrees that the actual installation and construction of the Sewer Lines and the On-Site Connecting Lines shall be constructed by Applicant, a metropolitan or similar special district formed by Owner and on behalf of Owner (the "Owner's District") or a third party who hereinafter acquires any portion of the Property (any of the foregoing are referred to as the "Constructing Party") and shall be subject to the general, as opposed to specific, supervision, inspection and approval by the District. The Applicant further agrees that the installation and construction of the off-site lines and facilities, including outfall lines, connecting lines, and trunk lines, will be constructed by the District utilizing funds provided to the District by the Applicant. All related costs of engineering study, review, inspection and approval for both on-site and off-site construction shall be at the sole cost and expense of, and paid by, the Constructing Party and the Applicant, respectively. The Constructing Party further agrees to give the District, through the District's Engineer, fourteen days advance notice prior to commencement of construction. 8. EASEMENTS. Applicant shall furnish, at Applicant's expense, any and all applicable • easements and rights-of-way within the Property (if not dedicated to the public use on the recorded plat) necessary for the Sewer Lines and the On-Site Connecting Lines, and all consents, permits, licenses and other agreements necessary to effectuate the intent of this Agreement. 9. TRANSFER AND CONVEYENCE OF LINES. 9.1 Prior to conveyance, the Constructing Party shall jet-clean, pressure and vacuum test all lines. Upon the Constructing Party's completion and the District's approval and acceptance of the Sewer Lines and the On-Site Connecting Lines, as evidenced by the issuance of the District's Certificate of Acceptance, the Constructing Party shall convey and transfer all of the Constructing Party's interest and ownership in the Sewer Lines, the On-Site Connecting Lines, and related appurtenant facilities to the Owner's District. Thereafter, the Owner's District shall convey, transfer and assign of all the Owner's District's interest and ownership in the Sewer Lines, the On-Site Connecting Lines, and related appurtenant facilities to the District, free and clear of all liens and encumbrances, and shall confirm that the work has been done in accordance with the laws of the State of Colorado, and all other governmental subdivisions, agencies and units and in accordance with the design standards and requirements of the District. 9.2 The Constructing Party shall guarantee the Sewer Lines and the On-Site Connecting Lines, as installed, against faulty workmanship and materials to the District for a • period of two (2) years from the date of the District's approval and acceptance of the tempmail.doc 3 • Sewer Lines and the On-Site Connecting Lines and shall, during said period, pay any and all actual costs and expenses of repair or replacement of the Sewer Lines and the Connecting Lines. Pursuant to District regulations, the Constructing Party shall post adequate security in a form acceptable to the District (e.g., bond, escrowed funds, or letter of credit, etc.) to insure the payment of the costs and expenses of repair or replacement during such two year period. The security, or such balance of the security if any portion of the security is used by the District to pay for the costs and expenses of repair or replacement, will be released or returned to the Constructing Party at the expiration of the two year period. 9.3 Upon completion, approval, acceptance, conveyance and transfer of the Sewer Lines and the On-Site Connecting Lines to the District, the District shall assume all responsibility thereafter, and all costs and expenses for operation and maintenance, except as to the above two (2)-year guarantee. The Constructing Party's completion of the construction, the inspection, approval and acceptance by the District, the transfer of the Sewer Lines and the On-Site Connecting Lines from the Owner's District to the District, and the payment of all construction costs and expenses for the Sewer Lines and the On-Site Connecting Lines required to be paid by the Constructing Party and Applicant, as applicable, are conditions precedent to the obligation of the District to furnish and provide Service. 10. EXTENDED AND OVERSIZED LINES. 10.1 Applicant shall be required to pay for installation of off-site trunk line extensions to • connect Applicant's sewer infrastructure to District facilities. District agrees to execute a Line Extension Agreement reasonable acceptable to Applicant with the Applicant and to reimburse the Applicant for the cost of such trunk line extension according to the terms of the Line Extension Agreement. District further agrees to reimburse the Applicant Line extension fee's collected from other property owners served or who benefit by such trunk line pursuant to the Line Extension Agreement at the rate set forth therein for a period of fifteen (15) years from and after the date of the Line Extension Agreement, but not thereafter, to pay to Applicant for its cost but, in no event, more than the total cost of such extending or oversizing paid the Applicant and agreed to by District upon presentation of Applicant's cost data. 10.2 If the District requires that trunk line and facilities be oversized to permit the use of these lines and facilities by the District to serve additional lands and property in addition to the Property of the Applicant, District agrees to reimburse the cost of such extending or oversizing at the then-current rate of oversizing reimbursement as stated in the District's Rules and Regulations. 10.3 In the event that no off-site trunk line extensions are required, Applicant may be required to pay a line reimbursement fee as a condition of connecting the Property to an existing trunk line as follows: (a) if service to the Property was included in a trunk line extension agreement, such fees may be payable in conjunction with the payment of the individual taps; or (b) if service to the Property was not included in an applicable trunk line extension agreement, the Applicant shall pay all such line reimbursement fees for all taps • tcmpmail.doc 4 • within a filing of the Subdivision of the Property at the time of first connection within such filing of the Subdivision as a condition of connecting to the line. 11. DISTRICT REGULATIONS. All Service provided under this Agreement shall be subject to the District's monthly service charges and to the District's Rules and Regulations. 12. GOVERNMENTAL REGULATIONS. Any provisions of this Agreement to the contrary notwithstanding, the obligation of the District to furnish Service under this Agreement is limited by and subject to all orders, requirements and limitations which may be imposed by federal, state, county or any governmental or regulatory body or agency having jurisdiction and control over the District and/or the operation of its sanitary sewer system and treatment facilities, or discharge permit for discharge into state waters. 13. DOCUMENTS TO BE FURNISHED. Applicant agrees to furnish District the following: 13.1 Upon execution of this Agreement, or at such time or times as may be reasonably requested by District, a topographical survey of the Property; and 13.2 When approved by the appropriate governmental boards, commissions, or agencies, the recorded Final Plat(s) and recorded[?] Address Plat for the Property, together with any requirements or conditions of approval fixed by such governmental entities, together with evidence of the Applicant's compliance or plan for compliance; and • 13.3 Upon completion, approval, acceptance, conveyance and transfer of the Sewer Lines and the On-Site Connecting Lines to the District: 13.3.1 "As-built" mylar maps (one full-sized and one half-sized copy), certified by the Applicant's engineer and depicting all lines, manholes, etc. constructed, installed, and transferred pursuant to Paragraph 9, above. 13.3.2 "As-built" AutoCad file certified by the Applicant's engineer and depicting all parcels, subdivision boundaries, non-sewer utilities, sewer lines, manholes, etc. in plan and profile, constructed, installed, and transferred pursuant to Paragraph 9 above. 13.3.3 A table of positions of each manhole listing latitude, longitude, and invert elevation. 13.3.4 The bid tabulation of the installation costs for sewer line elements. 13.4 "As-built" mylar maps certified by Applicant's engineer depicting all lines, manholes, etc. constructed, installed, and transferred pursuant to Paragraph 9 above. One copy to be full size and the other copy one-half(1/2) size. 13.5 In the event the Property to be served under this Agreement is not the entire project • of Applicant as hereinabove described, Applicant shall furnish preliminary plats and plans as lempmail.doc 5 developed by the Applicant with reference to the future total development of the entire • property so that prior to issuance of taps and initial installation of lines and facilities the District may study and consider the total development under this Agreement as it may relate to future demands upon the District for service within the entire development and the effect this may have, presently and in the future, on the District's entire system and its obligations in regard thereto. It is understood and agreed that a request for information as to future plans and developments of the Applicant and the consideration of such plans by the District in connection with its obligation to service Applicant's above described land under this Agreement shall in no wise be construed as an agreement or obligation of District to serve such other lands or areas proposed by the Applicant for such future development. All information required to be furnished to District by Applicant shall be provided at Applicant's expense. 14. DELAYS. Any delays in, or failure of, performance by any party of his or its obligations under this Agreement shall be excused if such delays or failure are a result of acts of God and nature, fires, floods, strikes, labor disputes, accidents, regulations or orders of civil or military authorities, restrictions or limitations contained in any initiative approved by the voters, shortages of labor materials, or other causes, similar or dissimilar, which are beyond the control of such party, including any orders, requirements or limitations described in paragraph 13 above. 15. TIME OF ESSENCE. Time is expressly stated to be the essence of this Agreement and any failure to perform the covenants and agreements herein agreed to be performed strictly at the times designated shall operate as an immediate termination of this Agreement. • 16. PARAGRAPH CAPTIONS. The captions of the paragraphs are set forth only for convenience and reference, and are not intended in any way to define, limit, or describe the scope or intent of this Agreement. 17. ADDITIONAL DOCUMENTS OR ACTION. The parties agree to execute any reasonable additional documents and to take any reasonable additional action necessary to carry out this Agreement. 18. INTEGRATION AND AMENDMENT. This Agreement represents the entire agreement between the parties and there are no oral or collateral agreements or understandings. This Agreement may be amended only by an instrument in writing signed by the parties. If any provision of this Agreement is held invalid or unenforceable, no other provision shall be affected by such holding, and all of the remaining provisions of this Agreement shall continue in full force and effect. 19. ALTERNATIVE DISPUTE RESOLUTION. In the event of any dispute or claim arising under or related to this Agreement, the parties shall use their best efforts to settle such dispute or claim through good faith negotiations with each other. If such dispute or claim is not settled through negotiations within 30 days after the earliest date on which one party notifies the other party in writing of its desire to attempt to resolve such dispute or claim through negotiations, then the parties agree to attempt in good faith to settle such dispute or claim by mediation conducted • under the auspices of the Judicial Arbiter Group (JAG) of Denver, Colorado or, if JAG is no longer tempnuil.doc 6 • • . in existence, or if the parties agree otherwise, then under the auspices of a recognized established mediation service within the State of Colorado. Such mediation shall be conducted within 60 days following either party's written request therefore. If such dispute or claim is not settled through mediation, then either party may initiate a civil action in the District Court for Weld County. 20. ATTORNEYS' FEES. If any party breaches this Agreement, the breaching party shall pay all of the non-breaching party's reasonable attorneys' fees and costs in enforcing this Agreement whether through legal proceedings or alternative dispute resolution pursuant to paragraph 19 above. 21. GOVERNING LAW. This Agreement shall be governed by the laws of the State of Colorado. 22. NOTICES. Any notice required or permitted by this Agreement shall be in writing and shall be deemed to have been sufficiently given for all purposes if sent by certified or registered mail, postage and fees prepaid, addressed to the party to whom such notice is intended to be given at the address set forth on the signature page below, or at such other address as has been previously furnished in writing to the other party or parties. Such notice shall be deemed to have been given when deposited in the U.S. Mail. 23. BINDING EFFECT; NOTICE OF ASSIGNMENT. This Agreement shall inure to the benefit of, and be binding upon, the parties, and their respective legal representatives, successors, and assigns as owners of the land described in Exhibit A. Any deposits, if any, which are made pursuant to the District's reservation of connection policy and approved agreements shall be • transferred to the credit of Applicant's assignee. Applicant shall give written notice to the District of such assignment and shall provide the assignee with a copy of this Agreement. 24. GOVERNMENTAL IMMUNITY. Nothing in this Agreement is intended, or shall be construed as, a waiver of any immunities provided to the District by statute or common law, including without limitation the Colorado Governmental Immunity Act, §24-10-101, et. seq., C.R.S. DATED ST. VRAIN SANITATION DISTRICT By President 11307 Business Park Circle Longmont, CO 80504 ATTESTED: District Manager • tempmail.doc 7 • • Approved As To Form: • District Legal Counsel • • tcmpmail.doc 8 • • • STATE OF COLORADO ) ss. COUNTY OF WELD ) The foregoing instrument was acknowledged before me this of 200_, by as President, and , as Manager of St. Vrain Sanitation District. Witness my hand and official seal. My commission expires: Notary Public • • tempmail.doc 9 • • • APPLICANT: MIDWEST HERITAGE INN OF VISALIA, INC., a North Dakota corporation Address: c/o HF Holdings, LLC 1745 Shea Center Drive Highlands Ranch, CO 80129 Attn: Darwin Horan By Darwin Horan, Manager of HF HOLDINGS, LLC, a Colorado limited liability company, Attorney-in-Fact for Gary Tharaldson, President of Midwest Heritage Inn of Visalia, Inc., a North Dakota corporation MIDWEST HERITAGE INN OF DEPTFORD, INC., a North Dakota corporation By Darwin Horan, Manager of HF HOLDINGS, LLC, a Colorado limited liability company, Attorney-in-Fact for Gary Tharaldson, President of Midwest Heritage Inn of Deptford, Inc., a North Dakota corporation STATE OF COLORADO ) ) ss. COUNTY OF WELD ) The foregoing instrument was acknowledged before me by Darwin Horan, Manager of HF HOLDINGS, LLC, a Colorado limited liability company, Attorney-in-Fact for Gary Tharaldson, President of Midwest Heritage Inn of Visalia, Inc., a North Dakota corporation and Midwest Heritage Inn of Deptford, Inc., a North Dakota corporation, this day of , 2007. Witness my hand and official seal My commission expires: • Notary Public tempmait.doc 10 II LONGS PEAK WATER DISTRICT SUBDIVISION SERVICE AGREEMENT FOR WATERFRONT AT FOSTER LAKE 1. PARTIES. The parties to this Agreement are the LONGS PEAK WATER DISTRICT("District"), and MIDWEST HERITAGE INN OF VISALIA, INC., a North Dakota corporation and MIDWEST HERITAGE INN OF DEPTFORD, INC., a North Dakota corporation(collectively, "Owner"). The District and the Owner are hereinafter referred to collectively as the Parties. 2. RECITALS AND PURPOSE. The Owner is the owner of certain property which it desires to develop and which is referred to as Waterfront at Foster Lake ("Subdivision"). The Subdivision is within the District's service area and is described on attached EXHIBIT A. The District is a special district organized under Colorado law which provides domestic andg `` n water service to its customers for which monthly service charges are made., E Own# desires that the District commit to provide water service within the bound ai of th& ub vision for approximately residential lot equivalent taps("RLE's"): e r all comply with all of the District's Bylaws, Policies and Regulations as theyaerir&thereafter exist. In order for the District to provide domestic and/or irrigation wat" iice,certain improvements to the District's 0 system(s)must be made. The Owner Ow inst ain Off-Site potable water infrastructure to accommodate the tot er, residential units in the Subdivision; install or participate in(via rebate or reimbutv ent a.geements described in EXHIBIT B)certain other Off-Site potable water infra ac iolscommodate the total number of RLE's in the Subdivision; install all required( r potale water infrastructure to support the total demands and requirements of the Su "divis ry; and install On-Site and Off-Site Brown Water Irrigation System infrastructure(" j' n System")to accommodate the total number of RLE's in the SubdiviSk Ownership of the On-Site and Off-Site potable water infrastructure improvemenconstructed on behalf of Owner will be transferred to the District upon completion,approval of and acceptance by the District. The District shall own and operate the Irrigation System, and ownership of all On-Site and Off-Site Irrigation System infrastructure constructed by the Constructing Party(as hereinafter defined)will be transferred to the District upon completion, approval of and acceptance by the District. District policies regarding ownership and operation of Irrigation Systems will be forthcoming. If the Owner complies with this Agreement,then the District agrees to provide potable water service for all requested taps under the terms and conditions set forth in this Agreement, and in accordance with the District Bylaws,Policies and Regulations. In addition,if the Owner complies with this Agreement,then the District agrees to provide irrigation water service for all requested taps under the terms and conditions set forth in this Agreement, and in accordance with the District Bylaws, Policies and Regulations, including forthcoming policies regarding Irrigation Systems. The purpose of this Agreement is to set forth the terms and conditions concerning the District's supplying such Water Service to the Subdivision.Accordingly, • the Parties agree to the following provisions in consideration of the terms, conditions, and mutual covenants set forth herein. NOW,THEREFORE,THE PARTIES AGREE: 3. CONSTRUCTION. 3.1 Subject to the terms and conditions set forth herein, the Owner, a metropolitan or similar special district formed by Owner and on behalf of Owner (the"Owner's District")or a third party who hereinafter acquires any portion of the Property (any of the foregoing are referred to as the "Constructing Party") shall install the On-Site and Off-Site infrastructure improvements for both the potable water system and for the Irrigation System("Installations")pursuant to the plans and specifications approved by the District as stated in Paragraph 3.2 of this Agreement. The obligations and benefits to this Agreement shall run with the land described in EXHIR T A. ani 3.2. The Constrctmg Party shall submit plans and specifications for the Installations to the strict approval,which approval shall not be unreasonably withhelaMficlehet or delayed. Upon receipt of the plans and specifications for the Insta�ttr s,4 District shall have a reasonable time (approximately 30 days)to revie plans and specifications for approval or • rejection. If written notice of approvalA Sgt given to the Constructing Party within such time period,the plan8 iis ifications shall be deemed rejected; provided,however, if the District reit*such loans and specifications,the District agrees to provide to the Convict a the reasons for such rejection. 4 I The Constructing Party shall have the ttt % esuubmit amended plans to the District for review. The District may impose reasonable standards for the protection of the District. This review process shalldPnue until the plans and specifications are approved by the District(collerpfik'ely,ihe"Approved Plans")or until terminated by the Owner.Upon this apparal, and subject to the conditions set forth in Paragraph 8 below,the Owner and District shall execute a Line Extension,Participation and Rebate Agreement, a Tap Purchase Agreement, and other such agreements (all of the above,reasonably acceptable to Owner and the District) so as to accommodate water service to the Subdivision. The Constructing Party shall make no modifications to the Approved Plans without the prior written approval of the District,which approval shall not be unreasonably withheld, conditioned or delayed. 3.3 The Constructing Party shall notify the District at least three (3)business days preceding the date of commencing work involved on the Installations,or replacement of the Installations,permitted hereunder. The District may inspect the Installations or replacements during the construction thereof, as it deems necessary to protect its interests. The right of the District to inspect the Installations or replacements shall be solely for the benefit of the District and shall not be deemed to be a waiver by the District to enforce the obligation of the • II LONGS PEAK WATER DISTRICT SUBDIVISION SERVICE AGREEMENT FOR WATERFRONT AT FOSTER LAKE 1. PARTIES.The parties to this Agreement are the LONGS PEAK WATER DISTRICT("District"),and MIDWEST HERITAGE INN OF VISALIA, INC., a North Dakota corporation and MIDWEST HERITAGE INN OF DEPTFORD, INC., a North Dakota corporation(collectively, "Owner"). The District and the Owner are hereinafter referred to collectively as the Parties. 2. RECITALS AND PURPOSE. The Owner is the owner of certain property which it desires to develop and which is referred to as Waterfront at Foster Lake ("Subdivision"). The Subdivision is within the District's service area and is described on attached EXHIBIT A. The Distr.nt is a special district organized under Colorado law which provides domestic and. g n water service to its customers for which monthly service charges are made.j1i Own 'desires that the District commit to provide water service within the boundari of tii ub jvision for approximately residential lot equivalent taps("RLE's")`thr0 mall comply with all of the District's Bylaws, Policies and Re ulations as the ' g y;A "'attw ereafter exist. In order for the District to provide domestic and/or irrigation wat ' " ice,certain improvements to the District's • system(s)must be made. The Owner lay inst :: ain Off-Site potable water infrastructure to accommodate the tot " er !residential units in the Subdi vision; ivision; install or participate in(via rebate or reimburse ent agreements described in EXHIBIT B)certain other Off-Site potable water infrakOctuirtrostcommodate the total number of RLE's in the Subdivision; install all required fl potable water infrastructure to support the total demands and requirements of the Su'li'dividl''tjp; and install On-Site and Off-Site Brown Water Irrigation System infrastructure(" ' ' n System")to s accommodate the total number of RLE's in the Subdivi 'th.Ownership of the On-Site and Off-Site potable water infrastructure improvement!constructed on behalf of Owner will be transferred to the District upon completion, approval of and acceptance by the District. The District shall own and operate the Irrigation System, and ownership of all On-Site and Off-Site Irrigation System infrastructure constructed by the Constructing Party(as hereinafter defined)will be transferred to the District upon completion, approval of and acceptance by the District.District policies regarding ownership and operation of Irrigation Systems will be forthcoming. If the Owner complies with this Agreement,then the District agrees to provide potable water service for all requested taps under the terms and conditions set forth in this Agreement, and in accordance with the District Bylaws,Policies and Regulations. In addition,if the Qwner complies with this Agreement,then the District agrees to provide irrigation water service for all requested taps under the terms and conditions set forth in this Agreement, and in accordance with the District Bylaws,Policies and Regulations,including forthcoming policies regarding Irrigation Systems. The purpose of this Agreement is to set forth the terms and conditions concerning the District's supplying such Water Service to the Subdivision.Accordingly, • • the Parties agree to the following provisions in consideration of the terms, conditions, and mutual covenants set forth herein. NOW,THEREFORE,THE PARTIES AGREE: 3. CONSTRUCTION. 3.1 Subject to the terms and conditions set forth herein,the Owner, a metropolitan or similar special district formed by Owner and on behalf of Owner (the"Owner's District")or a third party who hereinafter acquires any portion of the Property (any of the foregoing are referred to as the "Constructing Party") shall install the On-Site and Off-Site infrastructure improvements for both the potable water system and for the Irrigation System("Installations")pursuant to the plans and specifications approved by the District as stated in Paragraph 3.2 of this Agreement. The obligations and benefits to this Agreement shall run with the land described in EXHIBIT A. 3.2. The Cons - Tmg Part shall submit plans and specifications for the Installations to the j trict. tt a royal, which approval shall not be unreasonably withheld; ajor delayed. Upon receipt of the plans and specifications for the Inst arty,t District shall have a reasonable time • (approximately 30 days) to rev`" 1`"e plans and specifications for approval or rejection. If written notice of.;e royal ' t given to the Constructing Party within such time period,the plhu;9 's ifications shall be deemed rejected; provided,however,if the District rej such, ans and specifications, the District agrees to provide to the Conic 1 arta,the reasons for such rejection. The Constructing Party shall have the ' esriSmit amended plans to the District for review. The District may inipose mason e standards for the protection of the District. This review process s� iinue until the plans and specifications are approved by the District(col ely,the"Approved Plans") or until terminated by the Owner. Upon this appr`d'val, and subject to the conditions set forth in Paragraph 8 below,the Owner and District shall execute a Line Extension,Participation and Rebate Agreement, a Tap Purchase Agreement, and other such agreements (all of the above,reasonably acceptable to Owner and the District) so as to accommodate water service to the Subdivision. The Constructing Party shall make no modifications to the Approved Plans without the prior written approval of the District,which approval shall not be unreasonably withheld, conditioned or delayed. 3.3 The Constructing Party shall notify the District at least three (3)business days preceding the date of commencing work involved on the Installations,or replacement of the Installations,permitted hereunder. The District may inspect the Installations or replacements during the construction thereof, as it deems necessary to protect its interests. The right of the District to inspect the Installations or replacements shall be solely for the benefit of the District and shall not be deemed to be a waiver by the District to enforce the obligation of the • S Constructing Party to construct the Installations in accordance with the plans and shall not be deemed to estop the District for the Constructing Party's failure to install or properly design its Installations. 3.4 The Constructing Party agrees that the construction permitted hereunder shall proceed with reasonable diligence from the initiation of such construction to its completion. The construction by the Constructing Party may be completed in two or more phases as may be approved by the District,which approval shall not be unreasonably withheld. The Installations shall be constructed in such a manner so as not to interfere with the operations of existing facilities owned by the District without the prior permission of,notification to and coordination with the District. 3.5 Upon completion of the Installations,the Constructing Party shall notify the District. The District shall accept or reject Installations except that the District shall not be required to accept or reject until and unless all fees billed have been paid pursuant to Paragraph 6 below,and until all required easements for such Installations have bee = ,eted.The District shall not unreasonably withhold acceptance. The D4 P t shall.e entitled to test the Installations in accordance with District standards, sp; c ns and directives.Acceptance or rejection shall be in writing. If'il3i"st ti are rejected, the District shall specify the reasons for rejection, and ' ... strikting Party shall correct same, and the above process shall be repeated. Any fencing and other facilities appurtenant to • the District's existing facilitie all b 4 aced in a condition at least equal to the condition of such facilities an e"natces prior to construction. 3.6 The District's review and app alilans and specifications for the Installations is solely for its benefit 401Yeakps no benefit or right in any other party. The District's review and approval of th%'plannd specifications shall not relieve the Constructing Party or its agents or empl ' from its duty to properly design and construct the Installations. er ''' 3.7 The Constructing Party shall install permanent markers or indicators showing the location of the Installations for the purpose of locating the Installations as required by the Utility Notifications Center of Colorado ("UNCC"). These markers shall be installed in accordance with the standards, specifications and directives of the District.Additionally, a trace wire shall be installed along the entire length of the Installations, and shall be installed in accordance with the District's standards and specifications. 3.8 The Constructing Party shall be responsible, at its own expense, for obtaining any local, state or federal permits or approvals necessary for constructing the Installations. It is the Constructing Party's obligation to investigate and determine the need for any such permits or approvals. The Constructing Party is responsible, at its own expense,for obtaining all local, state and federal permits or approvals and for compliance with all local, state and federal laws and regulations applicable to the construction of the Installations, • • MEMORANDUM OF SURFACE AGREEMENT This Memorandum shall provide notice to all parties that Kerr-McGee Oil&Gas Onshore, LP, a Delaware limited partnership, and Waterfront at Foster Lake, LLC, have entered into an agreement dated/,4,000 q— (the"Agreement")covering the lands described on Exhibit A to this Memorandum. Among other matters,the Agreement provides certain accommodations to be made by both parties, subject to which, Kerr-McGee is authorized to commence drilling operations on the following wells at the following locations in Township 3 North,Range 68 West, Sections 27 & 34: . KMG 16-34 SE/4SE/4 of Section 34 KMG 23-27 Center of the SE/4 of Section 27 KMG 24-27 Center of the SE/4 of Section 27 KMG 33-27 Center of the SW/4 of Section 27 KMG 35-27 Center of the SW/4 Section Line of Section 27 KMG 37-27 SE/4SE/4 of Section 27 KMG 33-26 SE/4SE/4 of Section 27 KMG 21-34 Center of the NE/4 of Section 34 KMG 23-34 SE/4SW/4 of Section 34 KMG 24-34 Center of the NE/4 of Section 34 KMG 30-34 Center of the SW/4 Section Line of Section 27 KMG 37-34 SE/4SE/4 of Section 34 KMG 39-34 SE/4SE/4 of Section 34 • • KMG 41-34 SE/4SE/4 of Section 27 KMG 10-27 Center of the SE/4 of Section 27 KMG 11-27 Center of the S W/4 of Section 27 KMG 1-3 SE/4SE/4 of Section 34 KMG 2-3 SE/4SE/4 of Section 34 KMG 9-27 Center of the SE/4 of Section 27 KMG 12-27 Center of the SW/4 of Section 27 KMG 13-27 Center of the SW/4 of Section 27 KMG 14-27 Center of the SW/4 of Section 27 KMG 1-34 SE/4SE/4 of Section 27 KMG 2-34 Center of the NE/4 of Section 34 KMG 7-34 Center of the NE/4 of Section 34 • KMG 8-34 . Center of the NE/4 of Section 34 KMG 9-34 SE/4SE/4 of Section 34 KMG 11-34 SE/4SW/4 of Section 34 KMG 15-34 SE/4SW/4 of Section 34 ST. VRAIN 4-34 Center of the NW/4 of Section 34 The term of the Agreement shall be for the duration of the oil and gas lease presently covering the subject lands. Further information regarding the terms of the Agreement may be obtained by contacting Kerr-McGee at 1999 Broadway,Suite 3700, Denver, CO 80202, attention Denver Basin Land Manager. Executed this day of__,2007. KE - GEE &GAS ONSHORE,LP lu . ORENZO Ti e: a to Fact Date: WATERFRONT AT FOSTER LAKE,LLC Midwe •en :g: Inn of Visalia,Inc. a Nor Daktt• c. oration By: Darwin , ager of HF Holdings, Inc. a Colorado limited liability company Attorney-in-Fact for Gary Tharaldson,President of Midwest Heritage Inn of Visalia,Inc. • a North Dakota corporation and Midwest -ritage Inn of Deptford, Inc., a N•. +' ! \corporation By: Darwin�'o,mangy-r of HF Holdings,Inc a Colorado limited liability company Attomey-in-Fact for Gary Tharaldson,President Midwest Heritage Inn of Deptford,Inc. a North Dakota corporation Date: F7/3/p 3 ACKNOWLEDGMENTS STATE OF COLORADO ) ) ss. COUNTY OF DENVER ) The foregoing instrument was acknowledged before me this 7a day of�uut. 2007, by Joseph H. Lorenzo as Attorney in Fact of Kerr-McGee Oil & Gas Onshore LP, a Delaware limited partnership. WITNESS my hand and official seal. My commissio ' �*ed.L(/,t,`.‘ gra_ .j;�OTARy.� '4 No P li t s i ildiVOC FW _ Catalogal EON 0t119r2D1 STATE OF .,Geo- ) ss. COUNTY OF /IA ale The foregoing instrument was acknowledged before me this /3*day of J?u.it2_ 2007 by Darwin Horan as Manager of IIP Holdings,Inc,a Colorado limited liability company WITNESS my hand and official seal. My commission expires: Ac2'r k 4 CS174^1ls.:0 Expires Notary Public P..nenml:1Cr 30, 2009 GRETCHEN NNE Notary Pa KITELEY .7 .. A ' x 3 KMG 2421 avnoxc SUBDIVISION KMG 2221 , 0.0 KMG 25-21 FOSTER I LAKE KMG 1021 r7AGP 1 • I �,-- 12 7 / e0 KMG 11-27 / •,t O /9 // R f.- inMJ1 l� lam/ L 1, V _ (V craxmx �I _ LKMG 23-21 _ ,(332MG I q exhm r�i e.P"...°" .,,_�,. /,. 3326 KMG E • I o....3321 ..oy... o..� -f .e.e....,. I 1 _ , I udd {{ �• m rizr.= - ANI%-RSON 6-27 KMG 1327 4 KMG 1427 ANDERSON IY a x 15-VA %. q '707 moA. { �4 sL bJ evj� / v_' ' N ' 91 27 TMG KM1IG 13034 , .,. »,,s.. IRAGT J#:It / V D KMG 431 N 1 ,r r; \ )) ,C_...: r „/ ANDERSON *� • +�� —S L ; / o �°° Lti i KMG2iJd �LPFRCI I V47-34 _ MAO 31-34 ev ..•. nabu�o e C £ u,c LE M kv � wn AOLER .;,,. l LEGEND FLovo '> rn(G 104 KMG 53d.; BGUN4 KMG 6 �. 34 1 " 'T 0 ':kMGT34- .. — lj WELD COUNTY ROAD 26.5 KMG 2234 J r • r .. . ..., I k ANDERSON y KMG X1.34;' ' ,'034 rKM0 Pad, KMG 1234 _ = 0' FIRCICA @OF CO.NE ANL`F4t60N KMG 6_ " ADLER KMG 24 FMLY 1 TR".S4 d c� FLOYD SGUN 1—**'''''''''.” """"° `"" IS160011„, ` 0- • •KMG 33-34 1 I ► 1 h .. -ir ANDERSON ,.4M^r"'^"' 4 nuwM... :KMG - KMG 1534 O KMG 1234 r .. m '"""� 3 m� * 'r KMG 3134 1 J AND6CSON KMG29-3 _ FMLY TRSl3 L„:040, KMG _ MAP#3PERANADARK0 PLUGGED WELL � PER MEETING WI -� �s _�,_Yi 3 I_ //,�� KERR MCGEE - 0 KMG 4-3 GN eizsio6 MaG23 KMG 1-a • IL.i--i ` J TETRATECHINC WATERFRONT AT FOSTER LAKE n A-�,� dW HNC. 0ILGAS AND FACILITIES MAP DAIS 6/14/07 Hello