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Home My WebLink About20071161.tiff Kita OFFICE OF BOARD OF COMMISSIONERS PHONE: 970-336-7204 FAX: 970-352-0242 915 10TH STREET P.O. BOX 758 wilg C. GREELEY, COLORADO 80632 COLORADO April 18, 2007 David Foster, Attorney Foster Graham Milstein Calisher LLP 621 17t Street, 19th Floor Denver, CO 80293 Dear Mr. Foster: Thank you for meeting today with the Board of Weld County Commissioners and staff to discuss the Pioneer Communities/School District RE3J Capital Facilities Fee Foundation (Foundation). We would like to accept your offer to have a county representative on the Foundation's Board of Directors. As a result, we are designating Weld County Treasurer John Lefebvre. John was recently appointed the Weld County Treasurer,but he served four years as the Adams County Treasurer from 2003-2006. John has extensive investment and management experience. We believe he will be an excellent board member for the stewardship of the Foundation and its funds. John can be reached at 970-353-3845, extension 3260. Very truly yours, } David E. Long, Chair 9 William H. Jerke, Pro Tem William . Garcia • Robert D. Masden Baaglas ademache cc: Don Warden John Lefebvre SID 0 ( ito 0L/-4,73- a? 2007-1161 • 174111 u •el• S- FOSTER GRAHAM MILSTEIN CALISHER LLP ATTORNEYS AT LAW DANIEL S. FOSTER RANDALL M. CHIN DAVID WM. FOSTER April 4, 2007 JENNIFER G. FEINSOLD ROBERT G. GRAHAM STEPHEN A. FERMELIA MICHAEL G. MILSTEIN JOAN M. FRITSCHE DANIEL K. CALISHER JEFFREY N. MOXON BRIAN C. PROFFITT Board of County Commissioners SUSAN B. SCHNEIDER CYNTHIA TREADWELL-MILLER Weld County and Bruce T. Barker SHARI L. ULERY 915 Tenth Street PHILIP J. WORKMAN P.O. Box 758 Greely, CO 80632 RE: Pioneer Communities, Inc. (the "Developer"); Pioneer Communities (the "Project") Gentlemen: For more than a year now, the Developer has been meeting with representatives of School District RE3J (the "District") in an effort to respond to certain issues raised by the District related to the Project. Chief among these was the impact upon the capital facilities of the District that may be created by the students generated by the Project. We would like to schedule a study session with you to discuss our ideas more fully, but the key component to addressing the District's concerns is the creation of a tax- exempt capital facility fee foundation (the "Foundation") similar to that established in Brighton's school district 27J. The Brighton 27J Foundation recently completed a donation to Prairie View High School in excess of$6.2 million to help defray the cost of constructing this new high school for School District 27J. The purpose of the Foundation would be to collect and administer voluntary contributions from the developers within the Project. These contributions, referred to as "capital facility fees", would be utilized to mitigate the short fall between the District's bonding capacity and its corresponding capital facility needs, including building, acquisition or expansion of school facilities. No land acquisition, administrative or transportation facilities, however, are included in the capital facility needs covered by these fees. The applicable developers become obligated to pay the capital facility fees pursuant to a Participant Agreement, a copy of the proposed form of which is attached. The Participant Agreement contains, among other things, a fee schedule (the current list is included as an exhibit to the Participant Agreement), an obligation of the developer to pay the capital facility fees with respect to a particular lot within 30 days after the receipt of a building permit for such lot, the ability of the Board of the Foundation to increase the fees every 2 years, with the consent of the Participants, and an agreement of each 621 SEVENTEENTH STREET • 19TH FLOOR • DENVER, COLORADO 60293 303 333 9610 PHONE ♦ 303 333 9766 FAX WWW.FOSTERGRAHAM.COM Participant that a lien in favor of the Foundation is filed against such developer's property within the Project in order to secure payment of such capital facility fees. The operations and management of the Foundation are described in the attached by-laws. These by-laws provide for a Board of Directors to direct the Foundation, including administration of the capital facility fees contributed by the developers. The Board does not seek to substitute its judgment for that of the District or to involve itself in teaching decisions. The Board's purpose, rather, is to ensure that the capital facility fees are expended in accordance with the Participant Agreement. The Board consists of 5 directors. Two of these individuals will represent developers within the Project. Two more will be representatives of the District. We would like the remaining position to be filled by one of your commissioners, or alternatively, a senior management employee of Weld County, such as the Planning Director or Commissioner of Public Works. While we understand that the County is not in the business of providing educational services, we make this request with the knowledge that education of the residents of the County still has an impact upon the County and the services it is able to provide. We look forward to scheduling the study session with the Commission to discuss the matter further. At this session, we are prepared to describe the Foundation in greater detail, as well as answer any questions you may have. Please contact the undersigned with times and dates that are convenient for you. Very truly yours, 44- David Wm. Foster, Esq. For Foster Graham Milstein & Calisher LLP • E4el © a FOSTER GRAHAM MILSTEIN CALISHER LLP ATTORNEYS AT LAW LAURA S. ALMS DANIEL S. FOSTER RANDALL M. CHIN DAVID WM. FOSTER JENNIFER G. FEINDOLD ROBERT G. GRAHAM MICHAEL STEPHEN A. FERMELIA G. MILSTEIN DANIEL K. CALISHER JOAN M. FRITSCHE JERRI L. JENKINS MEMORANDUM JEFFREY N. MOXON BRIAN C. PROFFITT SUSAN S. SCHNEIDER TO: Weld County Board of County Commissioners CYNTHIA TREAOWELL-MILLER SHARI L. ULERY FROM: David Wm.Foster,Esq. PHILIP J. WORKMAN DATE: April 18,2007 RE: Pioneer Communities/School District RE3J Capital Facilities Fee Foundation For more than a year there have been meetings between School District RE3J (the "District") and Pioneer Communities, Inc., the developer (the "Developer") of Pioneer Communities (the "Project"). The result of these meetings is that, in addition to other donations described in Item 4 below, the Developer has committed to form and assist in the administration of a Capital Facilities Fee Foundation, which will collect and manage Capital Facility Fee donations from the Developer. The purpose of the Capital Facility Fees is to mitigate the shortfall between the District's bonding capacity and the demand for capital expenditures associated with providing capital facilities for the students generated by the Project. The Developer's commitment includes drafting the documentation that will govern the creation and operation of the Foundation. The following is a brief description of the Pioneer Communities/School District RE3J Capital Facilities Fee Foundation, along with a list of the additional commitments made by the Developer to the District in connection with the Project: 1. FOUNDATION. a. The Foundation is a tax exempt organization, the purpose of which is to collect and disburse Capital Facility Fees collected from the builder/developers constructing residential housing within the District. b. The Foundation is administered by a Board consisting of 5 Directors. Two directors are chosen by the builder/developers and two directors are chosen by the District. The fifth director either will be chosen by Weld County, or, if Weld County declines participation in the Foundation,by the 4 directors already selected. 2. PARTICIPANTS. a. The Participants consist of those builder/developers who are constructing residential housing in the District. Currently,the only Participant is the Developer. b. The Participants execute a Participant Agreement with the Foundation, pursuant to which they agree to pay a Capital Facility Fee to the Foundation for each residential housing unit they build within a certain development in the District; c. Payment of the Capital Facility Fee is voluntary. 621 SEVENTEENTH STREET • 19TH FLOOR • DENVER, COLORADO 80293 303 333 9010 PHONE • 303 333 9786 FAX WWW.FOSTERGRAHAM.COM Weld County Board of County Commissioners Re: Pioneer Communities/School District RE3J Capital Facilities Fee Foundation April 18, 2007 Page 2 • d. If a development has been approved, the developer has the option of either paying all Capital Facility Fees owed"with respect.to that development at the time of approval, or paying for each unit within 30 days after receipt of a building permit for such unit. e. If the fees are not all paid at once, the Foundation files a lien against the developer's property. This lien is released as the applicable Capital Facility Fee is paid on each unit. 3. CAPITAL FACILITY FEES. a. The purpose of the Capital Facility Fees is to mitigate the shortfall between the District's capital needs and its bonding capacity. b. The initial schedule of Capital Facility Fees for the Foundation is attached as Exhibit A. c. The schedule may be revised every 2 years, with the consent of the Participants. d. The Capital Facility Fees may be used to build, acquire or expand school facilities. e. The Capital Facility Fees may not be used for land acquisition, administrative or transportation costs. f. Capital Facility Fees are expended within the "feeder area" of the Foundation. The feeder area for the Foundation is the Project. 4. ADDITIONAL COMMITMENTS. In addition to the agreement to pay Capital Facility Fees and create the Foundation, including drafting and recording of all requisite documents, the Developer has agreed to do the following: a. Donate land in locations acceptable to the District in order to develop the number of schools the District determines will be required in order to educate the students generated by the Project; b. Construct improvements to the land donated for school sites, including rough grading and curbs, gutters and roadways to and around the boundary of each site; c. To the extent possible, locate school sites adjacent to parks and/or recreation centers to provide shared space for athletic fields and other facilities; and d. Provide sleeves or other underground capacity for insertion of cables, wires, optic fibers or other facilities required for communications, technology or similar functions. The documents described above are attached for your review. Do not hesitate to contact our office if you have any questions. 6rAf , 4 If C insti —10 fit „ etre iI New Hello