HomeMy WebLinkAbout20073841.tiff RESOLUTION
914
RE: APPROVE CANCELLATION AND RELEASE OF LETTERS OF CREDIT,AND APPROVE
AMENDMENT TO IMPROVEMENTS AGREEMENTS FOR PLANNED UNIT
DEVELOPMENT FINAL PLAN, PF #1011, PELICAN SHORES, PUD - RIVER RUNS
THROUGH IT, LLC, C/O DOUG TIEFEL
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, by Resolution dated September 14, 2004, the Board approved the application
of Planned Unit Development Plan, PF #1011, for River Runs Through It, LLC, c/o Doug Tiefel,
P.O. Box 17130, Boulder, Colorado 80308, for 40 lots with R-1 (Low Density Residential) Zone
District uses, along with 193 acres of open space consisting of a river corridor and two private
recreational lakes on the following described real estate, to wit:
Part of the E1/2 of Section 36, Township 3 North,
Range 68 West of the 6th P.M., Weld County,
Colorado, and
WHEREAS, on December 20, 2004, the Board of County Commissioner of Weld County,
Colorado,approved three Improvements Agreements According to Policy Regarding Collateral for
Improvements between the County of Weld,State of Colorado, by and through the Board of County
Commissioners of Weld County, and River Runs Through It, LLC, c/o Doug Tiefel, as follows:
1. Improvements Agreement for Weld County Road #26 According to Policy
Regarding Collateral for Improvements (Public Road Maintenance), requiring
collateral of$264,895.00;
2. Pelican Shores PUD - - Block 1 Improvements Agreement According to Policy
Regarding Collateral for Improvements (Private Road Maintenance), requiring
collateral of$727,984.00;
3. Pelican Shores PUD - - Block 2 Improvements Agreement According to Policy
Regarding Collateral for Improvements (Private Road Maintenance), requiring
collateral of$594,440.00, and
WHEREAS, the Board was presented with Irrevocable Letter of Credit#NZS532910 from
Wells Fargo Bank, N.A.,Trade Services Division, Northern California,One Front Street,21st Floor,
MAC#A0195-212,San Francisco, California 94111, in the amount of$992,879.00,for agreements
#1 and #2, listed above, and
WHEREAS, the Board was presented with Irrevocable Letter of Credit#555566501 from
Heritage Bank, 2695 North Park Drive, Suite 101, Lafayette, Colorado 80026-3166, in the amount
of$594,440.00, for agreement#3, listed above, and
11111111111111111111111 I I 1111111111111 I I 111111 I I I 11111
3530914 01/24/2008 03:00P Weld County, CO
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PL1678
(.'c: A,yi ,Sa,4 P41 PA
CANCEL COLLATERAL - RIVER RUNS THROUGH IT, LLC, C/O DOUG TIEFEL
PAGE 2
WHEREAS, staff from the Weld County Departments of Public Works and Planning
Services have conducted a visual inspection and recommends release of said letters of credit and
reduction of the amount of retained collateral, as follows:
1. Improvements Agreement for Weld County Road #26 According to Policy
Regarding Collateral for Improvements (Public Road Maintenance). The
Departments of Public Works and Planning Services recommend a partial release
of collateral, in the amount of $225,160.75, retaining fifteen (15) percent, in the
amount of$39,734.25, and
2. Pelican Shores PUD - - Block 1 Improvements Agreement According to Policy
Regarding Collateral for Improvements (Private Road Maintenance). The
Departments of Public Works and Planning Services recommend a partial release
of collateral, in the amount of $659,301.40, retaining fifteen (15) percent, in the
amount of$68,682.60, and
3. Pelican Shores PUD - - Block 2 Improvements Agreement According to Policy
Regarding Collateral for Improvements (Private Road Maintenance). The
Departments of Public Works and Planning Services recommend a partial release
of collateral, in the amount of $518,324.00, retaining fifteen (15) percent, in the
amount of$76,116.00, and
WHEREAS, upon recommendation of staff, the Board deems it advisable to release a
portion of said collateral in the total amount of$1,402,786.15, and retain fifteen (15) percent, for
a total amount of$184,532.85, and
WHEREAS, the Board has been presented with an Amendment to the Improvements
Agreements and a Deed of Trust from Doug Tiefel on behalf of River Runs Through It, LLC, and
Columbine Land Resources, Inc., effective September 24, 2007, for Lot 18, Block 1, and Lot 14,
Block 2, Pelican Shores PUD, in the amount of $184,532.85 to secure the retained fifteen (15)
percent, and the Board believes it is in the best interests of Weld County to do so.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that Irrevocable Letter of Credit #NZS532910 from Wells Fargo Bank, N.A.,
Trade Services Division, Northern California, One Front Street, 21st Floor, MAC#A0195-212, San
Francisco, California 94111, in the amount of $992,879.00, and Irrevocable Letter of Credit
#555566501 from Heritage Bank, 2695 North Park Drive, Suite 101, Lafayette, Colorado 80026-
3166, in the amount of$594,440.00, be, hereby are, cancelled and released.
BE IT FURTHER RESOLVED by the Board that the Clerk to the Board be, and hereby is,
directed to return said collateral to the appropriate issuing party.
BE IT FURTHER RESOLVED by the Board that the Deed of Trust from Doug Tiefel,
effective September 24, 2007, for Lot 18, Block 1, and Lot 14, Block 2, Pelican Shores PUD, in the
amount of$184,532.85 to secure the retained fifteen (15) percent, be, and hereby is, accepted.
1111111111111111111111111111111111111111111111111111111 2007-3841
3530914 01/24/2008 03:00P Weld County, CO PL1678
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CANCEL COLLATERAL - RIVER RUNS THROUGH IT, LLC, C/O DOUG TIEFEL
PAGE 3
The above and foregoing Resolution was, on motion duly made and seconded, adopted by
the following vote on the 26th day of December, A.D., 2007.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ATMS MAL EXCUSED
David E. Long, Chair
Weld C Clerk to the Board
/4 William H. Jerke, Pro-Tem
eputy Clerk t6 the Board EXCUSED
am Garcia
APPROVED AS TO F
Robed D. Masden
Canty Attorney • de Clc xr""�4.
ouglas ademache
Date of signature: WI?
1 111111 111111 11111 III 111111111111 11111111 1111I I I I
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9j
AMENDMENT TO IMPROVEMENTS AGREEMENTS
THIS AMENDMENT to Improvements Agreements ("Amendment") is entered into this
day of December,2007,by and between the County of Weld, State of Colorado, acting
through its Board of County Commissioners, hereinafter referred to as"County," and Columbine
Land Resources,Inc., a Colorado corporation, and River Runs Through It, LLC, a Colorado
limited liability corporation, hereinafter referred to collectively as"Columbine."
WITNESSETH:
WHEREAS,on December 20, 2004,the parties hereto entered into three agreements
entitled, "Pelican Shores PUD—Block 1 Improvements Agreement According to Policy
Regarding Collateral for Improvements(Private Road Maintenance),""Pelican Shores PUD—
Block 2 Improvements Agreement According to Policy Regarding Collateral for Improvements
(Private Road Maintenance),"and"Improvements Agreement for Weld County Road#26
According to Policy Regarding Collateral for Improvements(Private Road Maintenance),"
hereinafter referred to collectively as"Improvements Agreements," all of them being recorded in
the Office of the Weld County Clerk and Recorder on January 26, 2005, at Reception Numbers
3256530, 3256531, and 3256529,respectively,wherein Columbine agreed to construct and
complete various improvements on the properties described in said Improvements Agreements
and to WCR 26,and
WHEREAS, pursuant to said Improvements Agreements, Columbine provided to County
collateral in the form of two letters of credit("LOC's")in the total sum of$1,587,319 to secure
the construction and completion of said improvements, and
WHEREAS, as of September 24, 2007, said improvements were complete, and as shown
in the Memorandum of even date therewith and attached hereto as Exhibit"A,"the
recommendation of Kim Ogle, Planning Manager, Weld County Department of Planning
Services,was to release said collateral, with the exception of fifteen percent(15%)
($184,532.85)to be retained by the County for one(1)year as a warranty for said improvements,
and
WHEREAS, Columbine desires to substitute a deed of trust for Lot 18, Block 1, and Lot
14, Block 2,Pelican Shores PUD, a planned unit development in the County of Weld, State of
Colorado, for the LOC's to secure said retained fifteen percent(15%),and
WHEREAS, said substitution of collateral is allowed pursuant to the Improvements
Agreement, and an appraisal has been submitted by Columbine which details that the value of
said Lot 18, Block 1, and Lot 14, Block 2, is sufficient to cover the $184,532.85 retained
amount.
11111111111111111111111111111111111111111111111111
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NOW,THEREFORE,in consideration of the foregoing,the parties hereto promise,
covenant and agree as follows:
1. The Improvements Agreements are amended and clarified such that the fifteen
percent(15%)retainage required by Section 9.8 of each Agreement shall be
secured by and through a collective deed of trust in the amount of$184,532.85
covering Lot 18, Block 1,and Lot 14, Block 2, Pelican Shores PUD, a planned
unit development in the County of Weld, State of Colorado,with the beneficiary
of said deed of trust to be the County of Weld, State of Colorado.
2. The one(1)year time for retaining said fifteen percent(15%) shall have started on
September 24, 2007.
3. Columbine may request that the County request a release of the deed of trust after
September 23, 2008.
4. That this Amendment shall be the"live note"necessary to present for the purpose
of requesting release of the deed of trust.
IN WITNESS WHEREOF,the parties hereto have caused this Amendment to be
executed on the day and year first written above.
Columbine Land Resources, Inc.,
a Colorado corporation
By: ' —rissst
Doug Tiefel as President
STATE OF COLORADO )
County of Weld ) ss.
n `
The foregoing instrument was acknowledged before me this C 0 day of December,2007,
by Doug Tiefel as President of Columbine Land Resources, Inc.,a Colorado corpoati q,,,,
/3 .. Jp
Witness my hand and official seal. '
Notary Public = (b 7,;.L\\,
My Commission expires �2 L'
11111111111111111111111III111111111111III11111IIII IIII 2
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River Runs Through It,LLC,
a Colorado limited liability corporation
By: tit 1 l l�
Doug Tiefel as Manager
STATE OF COLORADO )
County of Weld ) ss.
PA
The foregoing instrument was acknowledged before me this CU day of fete or,. 9Z..
by Doug Tiefel as Manager of River Runs Through It, LLC,a Colorado limit labi iityn n ;'•.`a
corporation.
•
Witness my hand and official seal.
/ Notary Public
L ct
My Commission expires C) 0"
/
ATTEST: M' r !! 14�G1-A;�,,�y, COUNTY OF WELD, STATE OF COLORADO
CLERK TO THE BOARD OF
CO TY COMMISSIONERS A.
BY: 'l,U • c, /i O
putt' erk to th 1 m H. Jerke, Chairman Pro-Tem
;w., Y:\"iC, Board of County Commissioners of the
County of Weld, State of Colorado
12/26/2007
STATE OF COLORADO )
County of Weld ) ss.
The foregoing instrument was acknowledged before me this26th day of December, 2007,
by William H. Jerke as Chairman Pro-tem, of the Board of County Commissioners
of the County of Weld, State of do
Witness my hand and offici se4orARy ,
PUB G
blic
�uF coy .
My Conunission expires nr, rnmmssr r,Expires May 15,2010
3
1111111 VIII 111111111111 III 11111 1111111 11111111 II11 II11
3530984 01/24/2008 03:53P Weld County, CO
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,2oo7- 385//
7L
DEED OF TRUST
THIS DEED OF TRUST, dated December Zo, 2007, between, and the PUBLIC
TRUSTEE of the County of Weld, State of Colorado,
Witness:
The grantor,by and through a document entitled, "Amendment to Improvements
Agreements,"hereinafter referred to as"Amendment,"dated December 2°,2007,to secure the
total principal sum of$184,532.85 dollars,payable to the order of the County of Weld, State of
Colorado,by and through the Board of County Commissioners of County of Weld,the
beneficiary herein, whose address is 915 Tenth Street, Greeley, Colorado 80631,after the date
thereof, with no interest thereon, does hereby grant and convey unto said Public Trustee the
following described property, situate in the County of Weld, State of Colorado,to wit:
The real property described as: Lot 18,Block 1, and Lot 14, Block 2,Pelican Shores
PUD, a planned unit development in the County of Weld, State of Colorado.
TO HAVE AND TO HOLD the same together with all its appurtenances, in trust
nevertheless,that in case of execution against collateral in accordance with the terms of said
Amendment,then upon the beneficiary filing notice of election and demand for sale, said Public
Trustee, after advertising notice of said sale weekly,for not less than four weeks,in some
newspaper of general circulation in said county, shall sell said property in the manner provided
by law in effect at the time of filing said notice and demand, at public auction for cash, at any
proper place designated in the notice of sale. Out of the proceeds of said sale said Trustee shall
retain or pay first all fees, charges and costs and all moneys advanced for taxes,insurance and
assessments, or on any prior encumbrance,with interest thereon, and pay the principal then due
on said Amendment,rendering the overplus(if any)unto the grantor; and after the expiration of
the time of redemption,said Trustee shall execute and deliver to the purchaser a deed to the
property sold. The beneficiary may purchase said property or any part thereof at such sale.
The grantor covenants that at the time of delivery of these presents,he is seized of said
property in fee simple, and that said property is free of encumbrances. The grantor also
covenants that he will pay all taxes and assessments against said property and amounts due on
prior encumbrances. If grantor shall fail to pay taxes or amounts due on prior encumbrance,the
beneficiary may pay the same and all amounts shall become indebtedness due hereunder, and in
case of foreclosure,he will pay an attorney's fees incurred by the beneficiary. Should the
beneficiary hereunder be made a party to any action affecting this deed of trust or the title to said
property,the grantor agrees that all court costs and a reasonable attorney's fee paid by the
beneficiary shall become additional indebtedness due hereunder, and the grantor does hereby
release and waive all claims in said property as a homestead exemption or other exemption now
or hereafter provided by law.
It is agreed that in case of default in payment of said principal or a breach of any of the
covenants herein,then said principal sum hereby secured may at the option of the beneficiary
become due and payable at once, anything in said Amendment to the contrary not withstanding
1
and possession of said property will thereupon be delivered to the beneficiary, and on failure to
deliver such possession the beneficiary shall be entitled to a receiver for said property,who may
be appointed by any court of competent jurisdiction.
Whenever used herein the singular number shall include the plural,the plural the
singular, and the use of any gender shall be applicable to all genders. MI of the covenants herein
shall be binding upon the respective heirs, personal representatives, successors, and assigns of
the parties hereto.
Executed the day and year first above written.
Columbine Land Resources,Inc.,
a Colorado corporation
By: 1 vtcv
Doug Tiefel as President
STATE OF COLORADO )
County of Weld ) ss.
et
The foregoing instrument was acknowledged before me this��) day of December, 2007,
by Doug Tiefel as President of Columbine Land Resources, Inc., a Colorado corpoation.
Witness my hand and official seal. \ /J
Notary Public
My Commission expires 52 ,-� L
River Runs Through It,LLC,
a Colorado limited liability corporation
By: K- tai'--
Doug Tiefel as Manager
STATE OF COLORADO )
County of Weld ) ss.
)
(A.
The foregoing instrument was acknowledged before me this;) day of December, 2007,
by Doug Tiefel as Manager of River Runs Through It, LLC, a Colorado limited liability
corporation.
Witness my hand and official seal. /
Vi /f <-Ct i
/ G Notary Public
My Commission expires b''' ' 1_)
2
1
Bruce Barker
From: Cyndy Giauque
Sent: Tuesday, December 04, 2007 4:19 PM
To: Bruce Barker
Subject: FW: Pelican Shores Release of Letters of Credit
Attachments: image001.jpg; image002.gif
image001.jpg(5 image002.gif(8 KB)
KB)
From: Forest Park [mailto:forestpark@mesanetworks.net]
Sent: Tue 12/4/2007 11:10 AM
To: Cyndy Giauque
Subject: Pelican Shores Release of Letters of Credit
Dear Cyndy:
Thank you for meeting with me last Monday, November 26, to discuss Pelican Shores
subdivision. Ap you know, we are requesting release of the Wells Fargo and Heritage Bank
(n/k/a First Community Bank) Letters of Credit for the subdivision. We are proposing to
substitute collateral for the warranty in the amount of 158 for Pelican Shores South with
a Deed of Trust on Lot 18, Block 1. With regard to Pelican Shores North we propose to
provide the County with a Deed of Trust on Lot 14, Block 2. I have provided you with
copies of the Letters of Credit and 'an- Appraisal, dated September 2007, that was provided
to Wells Fargo. I believe that you already have the correspondence from the Public Works
and Planning departments recommending the release of the collateral with the exception of
a warranty.
Would you please let me know how all of this is going? I am in town for the rest of this
week and out of town all of next week. We need to take care of this matter prior to the
upcoming Christmas holiday. I have requested this action many times now with no direct
assistance; consequently, I would greatly appreciate your help.
Sincerely,
Doug Tiefel, President
Columbine Land Resources, Inc.
P.O. Box 17130
Boulder, CO 80308-0130
Tele: 303-665-9390
Fax: 303-665-0165
O411Fewa. P4441 Tr;
THE RIVER RUN
tidbit T
COLUMBINE LAND RESOURCES, IN of.
DOUG TIEFEL
12/10/2007 3:07 PM C �t fT
\Ar<Sk {i.���tt PRESIDENT �C�•
P.O.Box t7130 IncSo YNt Jr7+ 5 (303)665-9390
Boulder,CO 80308 Fax:(303)665-0165
E-mail:GL-Semis@asiceem -�r.2 saS'L'7t 7 0 L) 7
Page 1 of 1
Kim Ogle
From: Forest Park[forestpark@mesanetworks.net]
Sent: Tuesday, March 20, 2007 4:39 PM
To: Kim Ogle; Donald Carroll
Subject: Pelican Shores subdivision
Dear Ms. Ogle and Mr. Carroll:
I am writing this note for Doug Tiefel, owner of Columbine Land Resources, Inc. who is the
Developer for Pelican Shores subdivision. Doug asked that I let you know that all traffic control and
stop signs have been installed at Pelican Shores North and Pelican Shores South. Obviously, all
snow has melted and we would ask that you please schedule for another inspection as soon as
possible. Please let us know how quickly this can be done. Thank you.
Tina L. iViCCits
Forest Park subdivision
P.O. Box 17130
Boulder, CO 80308
Phone: 303-665-9390
Fax 3o3-665-o165
• �
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12/12/2007
� � MEMORANDUM
L ` P TO: Board of County Commissioners
"ilk DATE: September 24, 2007
COLORADO FROM: Kim Ogle, Planning Manager
SUBJECT: Release of Improvements Agreement According to Policy
Regarding Collateral for Improvements (Private Road
Maintenance)for Block 1 and Block 2, and Improvements
Agreement for County Road 26 According to Policy
Regarding Collateral for Improvements (Public Road
Maintenance)
Pelican Shores PUD, Case Number PF-1011, Douglas Tiefel
The Department of Planning Services received written notice dated August 30, 2007, from Josh
Holbrook, Public Works Lead Construction Inspector that all Transportation related items have
been completed to the satisfaction of the Department of Public Works.
Monies for the Transportation components of the Improvements Agreement are:
Agreement No. 1 - County Road 26 Improvements (Public Road) $264,895.00
Agreement - Block 1 Improvements $727,984.00
Letter of Credit NZS532910 from Wells Fargo Bank $992,879.00
Agreement No. 2 - Block 2 Improvements
Letter of Credit #555577501 from Heritage Bank (Lafayette) $594,440.00
The applicant, Doug Tiefel representing Pelican Shores PUD a/k/a A River Runs Through It has
provided letters of substantial completion from:
Bill Meier, Lead District Representative for United Power in a letter dated September 13, 2007;
Cathy Mourhess, Land Development Coordinator for Qwest in a letter dated September 4, 2007
and Steve Bracken, Construction Coordinator for Source Gas in a letter dated August 30,2007.
Given the acceptance of Public Works for the Transportation line items and acknowledgment
from the utility service providers that all installations are complete, it is the recommendation of
the Departments of Public Works and Planning Services to release collateral monies as follows:
Pelican Shores PUD Block 1:
$727,984.00 - ($26,000 {telephone} + $179,100 {gas} + $65,000 {Electric}) = $457,884.00
Fifteen percent of$457,884 = $68,682.60 (15% to be retained by the County for one year
warranty)
Pelican Shores PUD Block 2:
$594,440.00 - ($14,000 {telephone} + $38,100 {gas} + $35,000 {Electric}) = $507,440.00
Fifteen percent of $507,440.00 = $76,116.00 (15% to be retained by the County for one year
warranty)
Pelican Shores - County Road 26 Improvements:
Fifteen percent of $264,895.00 = $39,734.25 (15% to be retained by the County for one year)
The Department of Public Works and the Department of Planning Services have determined
that the on-site improvements have been completed, therefore, Doug Tiefel, applicant or his
representative shall provide a substitute Letter of Credit, Performance Bond or other monies for
all on and off-site improvements covered under this one year warranty period as outlined
herein. This Letter of Credit, Performance Bond or similar document shall be received by the
Clerk to the Board prior to release of Letter of Credit NZS532910 from Wells Fargo Bank in the
amount of $992,879.00 and Letter of Credit#555577501 from Heritage Bank (Lafayette) in the
amount of $594,440.00.
Monies to be retained for the warranty period are one hundred eighty-four five hundred thirty-two
and 85/100s dollars ($184,532.85). At the conclusion of the one year warranty period, the
applicant or his representative may request release of all monies held for Pelican Shores PUD,
Case Number PF-1011.
Mr. Tiefel has submitted two appraisals for two separate building parcels within the development
to cover the warranty period. Mr Tiefel has also submitted two Deeds of Trust to Weld County
for these same two parcels to hold for the warranty period.
The Weld County Attorney has determined that the appraised value of the two parcels will be
sufficient to complete the warranty work required for Pelican Shores PUD, Case Number PF-
1011 and therefore on the advice of counsel, the Department of Planning Services recommends
acceptance of the Deeds of Trust as warranty collateral by the Board of County Commissioners..
MEMORANDUM
TO: Kim Ogle, Planner III
DATE: December 12, 2007
FROM: Public Works
SUBJECT: Partial Collateral Release— Pelican Shores
PF-1101
According to the December 1, 2007 List of Items held by the Clerk to the Board, River Runs
Through It, c/o Doug Tiefel (PL1678 #2004-3546) has three improvements agreements and two
letters of credit:
Item1 —WCR 26 (Public Road) Improvements (in the amount of$264,895)
Item 2 - Block 1 Improvements (in the amount of$727,984)
Item1 and Item 2 are covered by a single Letter of Credit in the amount of$992,879.00,
#NZS532910 from Wells Fargo Bank which expires 10/06/06, with automatic renewal without 60
days notice.
Item 3 - Block 2 Improvements - Letter of Credit (in the amount of $ 594,440.00,
#555577501 from Heritage Bank (Lafayette, CO), which expires 12/09/05, with automatic
renewal without 60 days notice.
Per the 9/20/07 e-mail memorandum to Planning Services from Public Works (Don Dunker):
The current amounts of collateral to be released for the following
Pelican Shores PUD Filings are:
Pelican Shores PUD Block 1:
$727, 984 .00 - ($26, 000 {telephone} + $179, 100 {gas} + $65, 000
{Electric}) = $457, 884 . 00
$457, 884 * . 15 = $68, 682 . 60 (15% to be retained by the County for one
year warranty)
$727, 984 - $68, 682 .60 = $659,301.40 (to be released)
Pelican Shores PUD Block 2 :
$594,440. 00 - ($14, 000 {telephone} + $38, 100 {gas} + $35, 000
{Electric}) = $507,440 .00
$507,440 . 00 * . 15 = $76, 116 .00 (15% to be retained by the County for
one year warranty)
$594,440 . 00 - $76, 116 .00 = $518,324.00 (to be released)
Pelican Shores WCR 26 Improvements:
$264, 895. 00 * . 15 = $39, 734 .25 (15% to be retained by the County for
one year)
$264, 895. 00 - $39, 734 .25 = $225,160.75 (to be released)
Totals:
$68, 682 . 60 + $76, 116 . 00 + $39, 734 .25 = $184, 532.85 (to be retained by
the County for one year warranty)
$659,301.40 + $518,324.00 + $225,160.75 = $1,402,786.15 (total to be
released)
M:\PLANNING--DEVELOPMENT REVIEW\Collateral\PF-1101-Pelican Shores PartialReleaseCOllateraLdoc
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1t %FJ_' i ; _ _ • i
a MEMORANDUM
Kit
TO: Don Dunker DATE: 8-30-2007
WIDCFROM: Josh Holbrook, PW Lead Construction Inspector
COLORADO SUBJECT: PF-1011, Pelican shores PUD
a/k/a A river Runs Through it, do Doug Tiefel
Don,
On August 29th, 2007 I met with Doug Tiefel at the above mentioned PUD to
verify that all the items listed in the punch list date May 15th, 2007 have been
completed.
All items have been completed per the improvements agreement dated December 20th
2004, except for letters of substantial completion from the phone, gas, and electric
companies.
Weld County is holding three agreements with the applicant:
Agreement No. 1 —WCR Improvements (public road) in the amount of$264,895
Agreement No. 2 — Block 1 Improvements in the amount of $727,984
Agreement No. 3 — Block 2 Improvements in the amount 04'594,440
The homeowner's Association (HOA) will be responsible for the maintenance of the
subdivision, but WCR 26 from rd. 13 to 2,100' west will be a public road and maintained
by Weld County.
This project is substantially complete, as soon as Weld County public works receive the
letters of completion from the phone, gas, and electric companies' release of collateral
can be granted.
C-Documents and Settings-kogle Local Scnings-Tempoan Internet Elks CLICK-release of collateral memo doc
Page 1 of 1
SUMMARY APPRAISAL
19 Finished Homesites within Phase I of the Pelican Shores Residential Subdivision
Located on the Northwest Corner of Weld County Roads 13 and 26
Firestone, Colorado 80504
RETECHS FILE NO. DNV07-1034-06-A.3
Date of Appraisal: September 1, 2007
PREPARED FOR:
Wells Fargo Bank
1740 Broadway
Denver, CO 80274
PREPARED BY'
Intermountain Consultants,Inc.
5300 DTC Parkway, Suite 230
Greenwood Village,CO 80111
303.674.6587
Intermountain Consultants, Inc.
September 4, 2007
Wells Fargo Bank
Attn: Mr.Richard G. Burd(DNV)
Wells Fargo RETECHS
1740 Broadway
Denver, CO 80274
RE: RETECHS File No. DNV07-1034-06-A.3
Dear Mr. Burd:
At your request, we are submitting to you a summary appraisal of 19 finished homesites within Phase I of the
gated Pelican Shores residential subdivision which is located on the northwest corner of Weld County Roads
13 and 26 in the northern metropolitan Denver area within unincorporated Weld County, Colorado. The de-
tached lots, which are centered on 54.76-acre Pelican Shores Lake, range in size from 17,938 to 40,087
square feet with an overall average lot size of approximately 27,933 square feet. The average street frontage
equates to 178 feet, while the average lake frontage is 182 feet. The 19 lots are finished and ready for vertical
construction.
The purpose of this analysis is to provide an opinion of market value of the subject property"as is"as of Sep-
tember 1, 2007, as well as the estimated gross retail proceeds of the 19 finished lots. The interest appraised
represents the fee simple position. Market value, as used herein, is defined in the body of this report with the
legal and physical descriptions also included. The property was inspected on August 15,2007 and subsequent
dates with the appraisal prepared on September 4, 2007. This report is in compliance with the Uniform Stan-
dards of Professional Appraisal Practice,Title XI FIRREA, and the guidelines of Wells Fargo Bank.
This summary report contains 23 pages with the exhibits, engagement letter, and conformance requirement
items included in the addendum. All information has been obtained from sources believed to be reliable. We
certify that we have no present or contemplated future interest in the property beyond these opinions of value.
Your attention is specifically directed to the Assumptions and Limiting Conditions where the parameters of the
assignment have been outlined in more detail.
Rea!Estate Appraisal&Consuliction
5300 OTC Parkway.Suite 230 Greenwood Village.CO E0 1 I l • 303.674.6537 • Fax 303.484 3603
Wells Fargo Bank
Attn: Mr. Richard G. Burd (DNV)
Wells Fargo RETECHS
September 4, 2007
Page 2
As a result of our investigation and analyses, coupled with the recognition of an estimated marketing and ex-
posure period of approximately 57 months, it is our opinion that the market value of the fee simple interest of
the subject property is as follows:
MARKET VALUE"AS IS"
AS OF SEPTEMBER 1, 2007
Three Million Three Hundred Thousand Dollars
$3,300,000
GROSS RETAIL PROCEEDS OF THE 19 FINISHED DETACHED HOMESITES
AS OF SEPTEMBER 1,2007
Five Million Three Hundred Forty-Five Thousand Dollars
$5,345,000
Regards,
Intermountain Consultants, Inc.
Bruce D. Buchan, MAI
Colorado Certified General Appraiser No. 1313128
BDB/tt
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
EXECUTIVE SUMMARY
Identification 19 Finished Homesites
of the Property: Within Phase I of the Pelican Shores residential subdivision
Located on the northwest corner of Weld County Roads 13 and 26
Firestone, CO 80504
Legal Description: Lots 1, 2, 4, 5, 8, and 13-26, Block 1, Pelican Shores PUD Subdivision,
County of Weld, State of Colorado.
Flood Plain: According to Flood Insurance Rate Map Community-Panel No. 080266 0855
C dated September 28, 1982 and to Letters of Map Amendment (LOMAs)
dated January 2, 2003, the lots are in Zone C and outside the 100-year flood
plain.
Census Tract: 20.01
Rights Appraised: Fee simple interest
Property Description: The subject consists of 19 finished detached homesites that are ready to
accommodate vertical construction. The lots are within Phase I of the Peli-
can Shores residential community that includes a total of 26 lots encompass-
ing a gross area of about 109.5 acres. The lots occupy a net area of about
16.33 acres, while Pelican Shores Lake encompasses 54.76 acres, 5.92
acres are attributed to public right-of-ways, 5.31 acres are improved with pri-
vate drives, and 27.14 acres consist of open space. The gross density
equates to .2 dwellings per acre including open space and right-of-ways,
while the net density is 1.6 dwellings per acre The 19 subject lots range in
size from 17,938 to 40,087 square feet with the average overall lot size
equating to approximately 27,933 square feet. The street frontages are from
62 to 415 feet with a 178-foot average. The frontages along the lake range
from 78 to 398 feet at an average of 182 feet with each site having the capa-
bility of accommodating a dock. The rectangularly shaped homesites, which
are at-grade and generally mild in topography with none offering walkout ca-
pability, enjoy favorable lake and mountain views. The ground cover con-
sists of grass with scattered deciduous trees. The lots front along two-lane
Pelican Shores Drive and Pelican Shores Court. The asphalt-paved private
streets, which are maintained by the homeowners association, are improved
with underground utilities. The community is accessed through a gated and
landscaped entry from County Road 26.
Personal Property: None
Easements: The subject is encumbered by a number of utility, access, and drainage
easements. In addition, two gas/oil wells with accompanying improvements
that are enclosed by fencing are located in the open space. The plat dictates
building setbacks of 150 to 175 feet from the wells which are in close prox-
imity to Lot 8. It is our opinion that these encumbrances will not impact the
marketability of the subject homesites.
Intermountain Consultants,Inc.
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
Zoning: The sites are zoned PUD R-1 (Planned Unit Development Low-Density
Residential), a residential classification by Weld County that permits the de-
velopment of detached homes. The subject, as platted, is in conformance
with the governing zoning.
Real Estate Taxes: The 2006 taxes, which were due in April of 2007, totaled $10,854 or $571
per lot According to the treasurers office,the taxes have been paid and no
specials or back taxes are due.
Highest and Best Use: Detached residential housing
Estimated Marketing
&Exposure Period: Approximately 57 months
Date of Appraisal: September 1,2007
Date of Preparation: September 4, 2007
Value Indications:
Market Value"As Is"as of September 1,2007: $3,300,000
Gross Retail Proceeds of the 19 Finished
Detached Homesites as of September, 1, 2007: $5,345,000
Intermountain Consultants,Inc. �I
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
PURPOSE AND FUNCTION OF THE APPRAISAL
The purpose of this summary appraisal is to provide an opinion of market value of the subject "as is" as of
September 1, 2007. The property consists of 19 finished homesites within Phase I of the gated Pelican
Shores residential subdivision. Also included are the estimated gross retail proceeds of the 19 lots as of
September 1, 2007. Pelican Shores is located on the northwest corner of Weld County Roads 13 and 26 in
the northern metropolitan Denver area within unincorporated Weld County, Colorado. The lots, which are
centered on 54.76-acre Pelican Shores Lake, range in size from 17,938 to 40,087 square feet. The overall
average lot size equates to approximately 27,933 square feet with an average street frontage of 178 feet and
an average lake frontage of 182 feet. The homesites are finished and ready for vertical construction. The
interest appraised represents the fee simple position. Market value is defined as follows:
"Market value means the most probable price which a property should bring in a competitive and open market un-
der all conditions requisite to a fair sale,the buyer and seller each acting prudently and knowledgeably, and as-
suming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a
specified date and the passing of title from seller to buyer under conditions whereby:
1) Buyer and seller are typically motivated;
2) Both parties are well informed or well advised,and acting in what they consider their own best interests;
3) A reasonable time is allowed for exposure in the open market;
4) Payment is made in terms of cash in U.S.dollars or in terms of financial arrangements comparable thereto;
and
5) The price represents the normal consideration for the property sold unaffected by special or creative financ-
ing or sales concessions granted by anyone associated with the sale." I
The function of this appraisal is for mortgage financing.
LEGAL DESCRIPTION
Lots 1,2,4, 5, 8, and 13-26, Block 1, Pelican Shores PUD Subdivision, County of Weld, State of Colorado.
+Title 12,Code of Federal Regulations,Part 34,Subpart C,Section 34.42.
Intermountain Consultants.Inc. 1
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
OSTENSIBLE OWNER/DELINEATION OF TITLE
The subject is under the ownership of River Runs Through It, LLC, who acquired 240.4 acres of which the 19
finished homesites are a part, from J Bar B, Inc. in December of 2000 for $2,850,000 including options
(2815462). The seller reportedly carried$2,000,000 at 7% interest for 15 years. At the time of sale, the prop-
erty was zoned for agriculture use while also including four lakes that occupied about 108 acres. According to
the purchaser,there were several issues that affected the northern 131 acres including 300,000 cubic yards of
silt improperly placed in the northern lakes and a citation for the illegal placement of a concrete embankment
along the St. Vrain River. The purchaser assumed the liability of these issues, which included $800,000 to
remedy the silt problem and $175,000 for the embankment, as well as the need to rezone the property, amend
the flood plain, and provide access to public water and sewer. Since the date of sale, the purchaser has devel-
oped 26 detached homesites, seven of which have sold between $216,000 and $300,000 on a cash basis. It
should be noted that Lot 12,which sold for$216,000,was acquired by one of the partners and not reflective of
the market. The remaining sales ranged from $285,000 to$300,000. Lot 2 is under contract for$295,000 on a
cash basis and is expected to close in September of 2007. In addition, a reservation is reportedly in place for
Lot 26 at $305,000. No other"arm's length"transactions have occurred over the past five years. The 18 re-
maining lots are listed from$290,000 to$305,000. A summary of the sales and listing prices are as follows:
Pelican Shores Phase I: 26 Lots
Summary of Lot Sales and Listing Prices
Size Sale Sale Listing Size Sale Sale Listing
Lot SF Date Price Price Lot SF Date Price Price
1 40,087 $300,000 14 22,010 $290000
2 25,589 U/C $295,000 15 25,596 $290,000
3 16,744 10/06 $285,000 16 23,176 $290,000
4 17,938 $300,000 17 25,537 $295,000
5 22,753 $295,000 18 23,292 $295,000
6 25,792 06/06 $285,000 19 37,597 $300,000
7 31,184 07106 $290,000 20 38,408 $300,000
8 25,062 $305,000 21 39,896 $300,000
9 30,360 04/05 $300,000 22 30,532 $295,000
10 27,171 04/06 $297,000 23 27,990 $295,000
11 22,184 04/05 $289,800 24 27,357 $295,000
12 25,178 08/06 $216,000 25 27,469 $295,000
13 20,127 $295,000 26 30,312 $305,000•
Reservafion
COMPETENCY
Bruce D. Buchan, MAI, is a Certified General Appraiser in the State of Colorado. Mr. Buchan has completed
numerous valuations of residential properties in the Denver metropolitan area as well as throughout Colorado.
Intermountain Consultants,Inc. 2
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
APPRAISAL DEVELOPMENT AND REPORTING PROCESS
The procedure for completing this summary report included an analysis of the physical and locational charac-
teristics of the property as well as an evaluation of the competitive market and supply/demand factors. In addi-
tion, the investment criteria and marketability of detached single-family sites have also been considered. The
preparation of this appraisal encompassed an inspection of the property as well as a review of the plat, survey,
project costs, and sales activity. The zoning, utility availability, flood potential, and tax status were verified by
the applicable authorities with the planning department interviewed regarding future development in the imme-
diate vicinity. Sources relied upon in our field work included interviews with buyers, sellers, and brokers as well
as information provided by the county records, the Multiple Listing Service, Home Builders Research, and Han-
ley Wood. Based on the property type, which consists of 19 finished homesites producing no income, the
Sales Comparison Approach to value has been employed. This summary report is a brief recapitulation of the
data and analyses utilized in arriving at our opinions of value. The supporting documentation is retained in our
office files.
LOCATION DATA
The Denver metropolitan area is located at the eastern base of the Front Range of the Rocky Mountains in
Colorado. This area, identified as the Denver-Boulder-Greeley CMSA (Consolidated Metropolitan Statistical
Area), is composed of eight counties — Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Jefferson,
and Weld--that cover approximately 8,586 square miles with a population of 2,856,103 (July 2005). The met-
ropolitan area has grown 44.2% since 1990 and 10.6% since 2000 with the forecast for 2025 including
3,925,881 residents.
The subject is located in the northern metropolitan area immediately north of the City of Firestone within unin-
corporated Weld County. Weld County is the third largest county in Colorado covering 4,004 square miles,with
elevations ranging from 4,400 to 5,000 feet. The county has been identified as the richest agricultural county in
the nation east of the Rockies, although it is also an important milk-producing area that includes nearly one-half
of the state's cattle. The current population totals 228,781.
Firestone, located in the southwestern corner of Weld County, is one of several smaller communities in the In-
terstate 25 corridor that has witnessed growth due primarily to its proximity to Denver. Incorporated in 1908,
the city has reported a 237.5% growth over the past five years, from 1,908 residents in 2000 to 6,440 residents
in 2005. One of the larger attractions to Firestone is the availability of affordable housing with the city reporting
29 major residential developments along with 15 major commercial developments. Reference to Firestone of-
ten encompasses the nearby towns of Frederick and Dacono, both of which are to the south of Firestone, al-
though all are within a three-mile radius of one another. The collective cities are known as either the Tri-Town
Area or Carbon Valley, the latter of which reflects the underground mining history of the more immediate area.
Frederick includes a population of 6,518, having grown 164.2% since 2000, while Dacono has reported a
15.7%growth since 2000 with the current population including 3,488 residents. Longmont, about eight miles to
the west and primarily in Boulder County, includes a population of 81,678, while Greeley, the largest city in
Weld County with a population of 88,249 residents, is about 22 miles northeast of Firestone.
The Pelican Shores residential community is located on the northwest corner of Weld County Roads 13 and 26.
The subject neighborhood generally encompasses an area defined by Interstate 25 on the west, County Road
Intermountain Consultants.Inc. 3
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
28 on the north, County Road 15 on the east, and County Road 18 on the south. Although these boundaries
are not precise, they do provide locational reference to the area most greatly impacting the subject. The
neighborhood, which occupies about ten square miles, is dominated by agricultural uses with approximately
75% of the land unimproved. However, it is witnessing transition to residential housing with supporting com-
mercial uses due to the availability of vacant land coupled with the proximity to major transportation routes.
The 19 subject lots represent a portion of Phase I of the 40-lot Pelican Shores residential development which
encompasses 240.4 acres. As noted, Phase I includes 26 lots on 109.5 acres with seven lots having sold to
date. In addition, one lot is currently under contract. The gated community, bisected by the St. Vrain River, is
centered around four lakes which were once gravel pits that occupy about 108 acres with depths of 10 to 13
feet. Besides the lakes, approximately 120 acres of open space include a launching ramp and common
beaches. The 19 subject homesites, each of which can accommodate a private dock, are presently listed from
$290,000 to $305,000. The sites are being marketed to private individuals and builders with the intention of
building custom or speculative homes. The community, which is buffered by agricultural uses in all directions,
is accessed by asphalt-paved private drives with public utilities serving the lots. The majority of the detached
homes in the area are selling from the low$200,000s to the mid$300,0005.
Neighborhood shopping is available about one mile to the south at a King Soopers-anchored center on the
southeast corner of County Road 13 and Firestone Boulevard (County Road 24). The northwest corner of the
same intersection includes an unanchored retail center. Additional local shopping as well as restaurants, lodg-
ing facilities, service stations, and offices are in the vicinity of the Firestone Boulevard/Interstate 25 interchange
two miles to the southwest. The Twin Peaks Mall, anchored by Dillard's, JC Penney, and Sears, is roughly
eight miles to the west in Longmont,while the 700,000 square foot Shops at Centerra Lifestyle Center is about
17 miles to the north at the US 34/interstate 25 interchange in Loveland. The Flatiron Mall, which includes
Nordstrom and Macy's as major anchors, is 20 miles to the southwest in Broomfield. Schools serving the area,
which are within the St. Vrain School District and within about seven miles of the subject, include Mead Ele-
mentary, Mead Middle, and Skyline Senior High. Barbour State Park is roughly two miles to the west followed
by Union Reservoir an additional three miles. Two golf courses, Grandview and Saddleback, are within three
and one-half miles. Longmont United Hospital,just over seven miles to the west, offers major medical services,
as does the 570,000 square foot Medical Center of the Rockies at the Interstate 25/US 34 interchange.
Ingress and egress to the property is provided by both County Roads 13 and 26. County Road 13 is an as-
phalt-paved two-lane north/south arterial improved with overhead utilities, while County Road 26 in the vicinity
of Pelican Shores is a two-lane asphalt-paved feeder streets improved with overhead utilities and concrete
sidewalks, curbs, and gutters. Both streets are publicly maintained. The subject lots front along two-lane Peli-
can Shores Drive and Pelican Shores Court, both of which are improved with asphalt paving, underground utili-
ties, and gravel shoulders. The private streets are maintained by the homeowners association. County Road
13 intersects with Firestone Boulevard (County Road 24) approximately one mile to the south. Firestone
Boulevard is a major east/west arterial providing access to Intestate 25, the primary north/south freeway in the
state, about two miles to the southwest. On the west side of Interstate 25, this arterial is identified as Colorado
Highway 119 which provides access to Longmont. The E-470/Northwest Parkway interchange on Interstate 25
is twelve miles south of Colorado 119/Firestone Boulevard. Downtown Firestone is two miles to the south,
while the City of Longmont is about six miles to the west with Thornton, Broomfield, and Westminster within 15
miles to the south. The Denver Central Business District is approximately 28 miles to the south with Denver
International Airport (DIA) 25 miles to the southeast. Public transportation, provided by RTD (Regional Trans-
portation District), is available at a Park-n-Ride facility at Interstate 25 and Firestone Boulevard.
The uses surrounding the subject include agricultural/ranch uses to the west and south,while to the north is the
St. Vrain River and second phase of the Pelican Shores proposed community. Across County Road 13 to the
east is a gravel extraction facility. The subject is consistent with the comprehensive plan for the area and com-
patible with the surrounding uses.
Intermountain Consultants.Inc. 4
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
MARKET OVERVIEW
The residential market throughout the Denver metropolitan area, reflective of the current economic climate,
began slowing in 2001 due to such factors such as changes in the stock market, high-technology layoffs in the
dot-com industries, corporate cutbacks, and the influence of various mergers and acquisitions. The market
began to regain momentum in 2005, encouraged by exceptionally low interest rates and job growth that ex-
ceeded the national average. However, interest rates began increasing in 2006 as did foreclosure rates, espe-
cially in lower-end single-family products.
Statistics illustrating the status of the new residential market are provided by building permits. According to the
Home Builders Association of Metro Denver, 18,221 permits were issued in 2006. This represents a 13.6%
decline when compared to the 2005 activity, although comparison by permit type includes a 30.1% decline in
single-family permits,while both the attached and apartment categories reported 14.4%and 275.4%increases,
respectively. The metropolitan area permit activity since 2000 is itemized as follows:
Metropolitan Denver
Building Permit Activity 2000 to 2006
Yri
Year Detached Change Attached Change Apartment Change Total Change
2000 16,180 -- 3,321 --- 9,116 --- 28,617 ---
2001 14,542 -10.1% 4,442 33.8% 9,090 -0.3% 28,074 -1.9%
2002 13,966 -4.0% 4,425 -0.4% 4,085 -55.1% 22,476 -19.9%
2003 12,806 -8.3% 3,755 -15.1% 1,858 -54.5% 18,419 -18.1%
2004 14,460 12.9% 4,843 29.0% 2,681 44.3% 21,984 19.4%
2005 15,988 10.6% 4,642 -4.2% 460 -82.8% 21,090 -4.1%
2006 11,183 -30.1% 5,311 14.4% 1,727 275.4% 18,221 -13.6%
Source: Home Builders Association of Metro Denver
The Home Builders Association does not address unincorporated Weld County, although the City of Firestone
has reported an annual average of 232 single-family residential building permits over the past three years (225
permits in 2004, 310 in 2005, and 162 in 2006). As of July 2007,92 single-family permits had been issued.
Statistics pertaining to the new detached residential market in the area of the subject are provided by Hanley
Wood. As of August 2007,20 detached projects in the Tri-Town Area of southwestern Weld County were iden-
tified as being open or having closed out for three months or less. It is important to note that these projects are
indicative of residential activity of production homes. The base prices range from $123,900 to $426,200, sig-
nificantly lower than the home prices anticipated in Pelican Shores where the lots are listed between $290,000
and $305,000. However, these projects,which are itemized on the following page, provide an indication of the
residential activity in the area.
Intermountain Consultants,Inc. 5
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
Detached Single-Family Residential Projects in the Tri-Town Areas as of August 2007
Open or Closed-Out for Three Months or Less
No Project Name Location Builder Price Range SF Range
1. Booth Farms Firestone Advocate Homes $261,131-$349,237 1,604-2,790
2. Countryside Frederick Centex Homes $203,990-$231,990 1,293-2,226
3. Monarch Estates Firestone Amber Homes $192,500-$239,500 1,329-1,949
4. Moore Farms Frederick Advocate Homes $293,455-$384,900 1,615-3,156
5. Mountain Shadows Firestone Neumann Homes $222,900-$317,900 1,752-3,142
6. Prairie Greens Frederick BaseCamp Communities $123,900-$151,900 1,213-1,920
7. Rinn Valley Ranch Frederick Feature Homes $409,900-$499,000 1,948-3,129
8. Raspberry Hills Frederick D.R.Horton $256,450-$328,450 1,296-3,201
9. Saddleback Heights Firestone Advocate Homes $369,000-$426,200 2,400-3,155
10. Sagebrush Frederick D.R.Horton $245,950-$330,450 1,449-3,586
11. Sharpe Farms Dacono Woodcrest Homes $149,990-$247,950 1,415-2,598
12. St.Vrain Ranch Firestone Lennar Homes $242,950-$372,950 1,464-3,341
13. Stone Ridge Frederick J B J Construction $228,900-$264,650 1,481-2,068
14. Stone Ridge Frederick Journey Homes $222,500-$264,650 1,401-2,120
15. Stone Ridge/Signature Series Firestone Journey Homes $292,700-$372,700 1,730-2,978
16. Sweetgrass Dacono Richmond American Homes $244,995-$314,995 1,667-2,773
17. The Farm Frederick Marquis Homes $294,990-$396,990 1,650-2,937
18. The Farm/McHugh Homes Frederick McKee Associates $279,900-$324,900 1,600-2,552
19. Wyndham HilV2200 Series Frederick D.R.Horton $251,950-$308,950 1,655-2,725
20. Wyndham HilV3900 Series Frederick D.R.Horton $290,450-$328,950 2,283-3,119
As noted, the preceding projects are indicative of production housing. Even though all are located in south-
western Weld County, the locational attributes differ significantly from Pelican Shores even without the influ-
ence of the lake frontage.
Statistics provided by Coldwell Banker Colorado and REJMAX Professionals also provide insight into the resi-
dential market. As of mid-year 2007, the average price of a previously-owned closed single-family property
totaled $335,000. This represents a 4.0% increase since the end of 2006 when the average sale price was
$322,000. The average year-to-date price as of June 2007 was $313,851. The June 2007 median was
$263,000, with a year-to-date median of $247,250. The year-end 2006 medians were at $247,000 and
$249,900, respectively. As of June 2007, 30,256 unsold homes were on the market, slightly less than the
31,900 homes available a year ago as well as below the high of 31,989 homes reported in July of 2006.
As noted, Denver area foreclosure rates have been increasing with the 2006 total including 19,425 foreclosures
and exceeding the previous high of 17,122 set in 1988. Despite the increase, however, total foreclosures as a
percentage of homes are lower than two decades ago due to the growth in population, housing construction,
and homeownership. Reportedly, risky loans, fraud, and overbuilding of entry-level single-family homes in the
northeastern metropolitan area (specifically Weld County, northeast Adams and Denver counties, and parts of
Aurora) have fueled the current foreclosure activity. In addition, the tightening of mortgage requirements to
combat foreclosures has recently resulted in fewer loan approvals.
Intermountain Consultants,Inc. 6
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
The market for custom homesites is significantly limited when compared to either new production-built de-
tached housing or residential resales. Sales of finished lots similar to the subject, as detailed in the Sales
Comparison Approach section of this report, are ranging from around $130,000 to $390,000 with absorption
periods between .1 and .7 lots per month. The anticipated home price for a custom lot is typically estimated at
four times the cost of the lot.
PROPERTY DESCRIPTION
The subject consists of 19 finished detached homesites that are ready to accommodate vertical construction.
The lots are within Phase I of the Pelican Shores residential community that includes a total of 26 lots encom-
passing a gross area of about 109.5 acres. The lots occupy a net area of approximately 16.33 acres, while
Pelican Shores Lake encompasses 54.76 acres, 5.92 acres are attributed to public right-of-ways, 5.31 acres
are improved with private drives, and 27.14 acres consist of open space. The gross density equates to .2
dwellings per acre including open space and right-of-ways,while the net density is 1.6 dwellings per acre The
19 subject lots range in size from 17,938 to 40,087 square feet with the average overall lot size equating to
approximately 27,933 square feet. The street frontages are from 62 to 415 feet with a 178-foot average. The
frontages along the lake range from 78 to 398 feet at an average of 182 feet with each site having the capability
of accommodating a dock. The lots front along two-lane Pelican Shores Drive and Pelican Shores Court. The
asphalt-paved private streets,which are maintained by the homeowners association, are improved with under-
ground utilities. The community is accessed through a gated and landscaped entry from County Road 26. The
finished lots are summarized on the following page.
Intermountain Consultants,Inc. 7
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
Summary of Finished Lots
Lot/ Size Street Lake View/
No Block SF Fronting Street Frontage Frontage Setting
1. 1/1 40,087 Pelican Shores Dr 62' 244' Premium
2. 2/1 25,589 Pelican Shores Dr 219' 193' Premium
3. 4/1 17,938 Pelican Shores Dr 130' 130' Premium
4. 5/1 22,753 Pelican Shores Dr 223' 78' Average
5. 8/1 25,062 Pelican Shores Dr 277' 214' Premium
6. 13/1 20,127 Pelican Shores Ct 78' 189' Average
7. 14/1 22,010 Pelican Shores Ct 64' 175' Average
8. 15/1 25,596 Pelican Shores Ct 130' 130' Average
9. 16/1 23,176 Pelican Shores Ct 92' 156' Average
10. 17/1 25,537 Pelican Shores Ct 105' 219' Average
11. 18/1 23,292 Pelican Shores Dr 297' 240' Average
12. 19/1 37,597 Pelican Shores Dr 415' 375' Premium
13. 20/1 38,408 Pelican Shores Dr 269' 114' Premium
14. 21/1 39,896 Pelican Shores Dr 185' 132' Premium
15. 22/1 30,532 Pelican Shores Dr 183' 105' Average
16. 23/1 27,990 Pelican Shores Dr 136' 136' Average
17. 24/1 27,357 Pelican Shores Dr 159' 113' Average
18. 25/1 27,469 Pelican Shores Dr 128' 125' Average
19. 26/1 30,312 Pelican Shores Dr 212' 398' Premium
Total: 530,728 Square Feet/27,933 Square Foot Average
178'Average Street Frontage/182'Average Lake Frontage
The rectangularly shaped homesites are at-grade and generally mild in topography with none offering walkout
capability. The 19 lots enjoy favorable lake and mountain views with the ground cover consisting of grass with
scattered deciduous trees. The sites are zoned PUD R-1 (Planned Unit Development Low-Density Residen-
tial), a residential classification by Weld County that permits the development of detached homes. The subject,
as platted, is in conformance with the governing zoning. According to Flood Insurance Rate Map Community-
Panel No. 080266 0855 C dated September 28, 1982 and to Letters of Map Amendment(LOMAs) dated Janu-
ary 2, 2003, the lots are in Zone C and outside the 100-year flood plain. However, 54.76-acre Pelican Shores
Lake is in Zone A and within a flood hazard area. The plat, which delineates these areas, is included as an
exhibit of this report. In addition, a soils report prepared by Western Soils, Inc. in March of 2004 concluded that
either slab-on-grade or spread footing foundations should be utilized to support future residences. Further-
more, special consideration should be given to basement excavations due to ground water conditions.
All of the necessary utilities are available to the lot lines and reportedly have the capacity to serve future devel-
opment. Electricity is provided by United Power with natural gas supplied by Xcel Energy,telephone service by
Qwest, and cable TV by Comcast. Public water is provided by the Central Weld Water District with sewer ser-
vice by the St. Vrain Sanitation District. Police protection is under the jurisdiction of the Weld County Sheriffs
Department, while fire protection is provided by the Mountain View Fire Protection District. As shown on the
site plan/plat, the subject is encumbered by a number of utility, access, and drainage easements. In addition,
two gas/oil wells with accompanying improvements that are enclosed by fencing are located in the open space.
The plat dictates building setbacks of 150 to 175 feet from the wells which are in close proximity to Lot 8. It is
our opinion that these encumbrances will not impact the marketability of the subject homesites.
Intermountain Consultants,Inc. 8
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
The lots are currently vacant and have reportedly never been improved. The gas/oil wells, which are situated
within open space, are enclosed by fencing. There are no other physical signs of environmental problems such
as underground storage tanks, stained soil, vegetation damage, discarded batteries, oil/gas drums, or propane
tanks. As indicated in our Assumptions and Limiting Conditions, unless otherwise stated in this report,the exis-
tence of hazardous materials that may or may not be present on the property was not observed by the apprais-
ers. Furthermore, the appraisers have no knowledge of the existence of such materials on or in the property
and are not qualified to detect such substances. The presence of substances such as asbestos, urea-
formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property.
The opinions of value are predicated on the assumption that there is no such material on or in the property that
would cause a loss in value. No responsibility is assumed for any such conditions or for any expertise or engi-
neering knowledge required to discover them. The client is urged to retain an expert in this field, if desired.
HOMEOWNERS ASSOCIATION
The Pelican Shores homeowners association is responsible for the maintenance and insurance of the common
areas as well as enforcing the covenants and architectural standards. The association fees are $150 per lot
per month or$450 per quarter.
REAL ESTATE TAXES
Assessed values in Weld County are based on 29.0% of the county assessor's estimated market value as of
2006. The 2006 taxes, which were due in April of 2007, are calculated by multiplying the assessment by the
appropriate mill levy. The subject parcel numbers are 120736401-001, 002, 004, 005,-008, and-013 through-
026. The actual and assessed values are as follows:
Real Estate Taxes
2006 2006 2007 2007
Actual Value Assessed Value Actual Value Assessed Value
Land $529,720 $153,710 $1,352,762 $392,350
Improvements -0- -0- -0- -0-
Total $529,720 $153,710 $1,352,762 $392,350
The current mill levy is 70.613 per$1,000 of assessed valuation with the taxes calculated at$10,854 or$571
per lot ($153,710 + $1,000 x 70.613). According to the treasurer's office, the taxes have been paid and no
back taxes are due. Furthermore,the subject is not in a special improvement district.
Intermountain Consultants,Inc. 9
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
HIGHEST AND BEST USE
In making a determination of the highest and best use of the subject property,the following definition is applied:
"That reasonably probable and legal use of vacant land or an improved property which is physically possible,appro-
priately supported, financially feasible, and that results in the highest value. The four criteria the highest and best
use must meet are legal permissibility,physical possibility,financial feasibility,and maximum profitability.' 2
Since the subject consists of 19 finished detached homesites that have yet to be improved with homes, the
highest and best use "as vacant" has been addressed. Legal permissibility considers zoning, building codes,
private restrictions and covenants, and environmental regulations, any or all of which may preclude many po-
tential highest and best uses. Physical possibility relates to the size, shape, area, and terrain of the lots that
may impact the development potential of the sites. For the homesites to be financially feasible, they must pro-
duce a positive net income or rate of return. Maximum profitability is that which provides the highest rate of
return or value.
Highest and Best Use"As Vacant"
Based on the four tests, it is our opinion that the highest and best use of the subject homesites, as va-
cant, would be for the development of detached residential homes at a density consistent with the
governing zoning and accompanying plat.
APPRAISAL PROBLEM
The purpose of this appraisal is to provide an opinion of market value of the subject property"as is°as of Sep-
tember 1, 2007. Also included are the estimated gross retail proceeds of the 19 detached homesites. The
Sales Comparison Approach,which utilizes and compares sales of similar sites to the subject,was employed in
the valuation of the subject.
2 the Dictionary of Real Estate Appraisal,3"Edition,the Appraisal Institute,1993.
Intermountain Consultants,Inc. 10
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
MARKET VALUE "AS IS"
19 FINISHED DETACHED HOMESITES
SALES COMPARISON APPROACH
In order to arrive at the market value of the subject lots'as is"as of September 1, 2007, the Sales Comparison
Approach was applied which is defined as follows:
°A set of procedures in which a value indication is derived by comparing the property being appraised to similar proper-
ties that have been sold recently,applying appropriate units of comparison,and making adjustments to the sale prices of
the comparables based on the elements of comparison. The sales comparison approach may be used to value improved
properties,vacant land,or land being considered as though vacant; it is the most common and preferred method of land
valuation when comparable sales data are available.° 3
This analysis is indicative of a bulk sale to a single purchaser. It takes into consideration not only the devel-
oper's profit but also absorption, sales commissions, closing fees, and holding costs associated with the sell-
out. In arriving at a bulk value, a search was first conducted for sales of multiple finished lakefront lots, how-
ever, no transactions comparable to the subject were identified. As a result,the Discounted Cash Flow Analy-
sis was utilized. It should be noted that the subject lots are being sold to builders or private individuals for ei-
ther speculative or custom homes.
Revenues associated with the subject include the anticipated proceeds from the sale of the 19 lots. The fin-
ished homesites, which are ready for vertical construction, range in size from 17,938 to 40,087 square feet with
an overall average size of 27,933 square feet and an average street frontage of 178 feet. The lake frontages
are from 78 to 398 feet at an average of 182 feet with all of the lots capable of accommodating docks. The
sites, which enjoy favorable views of the lake as well as the mountains to the west, are at-grade and level in
topography with none offering walkout capability. The lots are zoned PUD R-1 (Planned Unit Development
Low-Density Residential) by Weld County which allows single-family residential development. As indicated in
the Highest and Best Use section of this report, it is our opinion that the highest and best use of the lots is for
single-family residential development consistent with zoning.
In arriving at the retail proceeds of the detached homesites, a search was conducted for single-lot sales in the
area of the subject. Sources relied upon included the county records, Home Builders Research, and the Multi-
ple Listing Service. After a careful search, five lot sales were found to be representative of the subject. The
pertinent information regarding these transactions is summarized on the following page.
3 Ibid.
Intermountain Consultants,Inc. 11
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
Summary of Finished Lot Sales
Size Sale Sale Recording
No Location SF Zoning Date Price Document
1. 9837 Shoreline Dr 46,736 PUD 05/06 $290,000 3390195
Longmont,CO
2. 5771 Pelican Shores Dr 25,792 PUD R-1 06/06 $285,000 3401808
Firestone,CO
3. 5775 Pelican Shores Dr 31,164 PUD R-1 07/06 $290,000 3409213
Firestone,CO
4. 5795 Pelican Shores Dr 18,744 PUD R-1 10/06 $285,000 3437314
Firestone,CO
5. 5755 Pelican Shores Dr 25,589 PUD-R-1 U/C;to $295,000 N/A
Firestone,CO dose 09/07
The comparables reflect a range of value prior to adjustments from $285,000 to $295,000 per lot. All of the
detached homesites,which are located within three and one-half miles of the subject, have lake frontages rang-
ing from 109 to 299 feet. Furthermore, the finished lots had paved access with all utilities available including
public water and sewer. The sites were acquired on a cash basis with no tap fees included in the sale prices.
In surveying the area, which included tracking sales and reviewing the listing activity as well as conversations
with brokers, buyers, and sellers active in the area, there has been no evidence of time depreciation or appre-
ciation over the past 16 months. Adjustments were made to account for differences in location, lot size, view/
setting, amenities offered, and site characteristics.
Comparable No. 1 represents the sale of a 46,736 square foot finished lot located on the north side of
Shoreline Drive west of Weld County Road 7 about three and one-half miles southwest of the subject.
The rectangularly shaped parcel,which is within the Lighthouse Cove subdivision, is zoned PUD. The
non-walkout lot is at-grade and basically level with roughly 188 feet of frontage on Shoreline Drive.
The site also includes about 188 feet of frontage on a lake that permits both water skiing and private
docks while also including a boat launching facility. The similarly located property, which offers public
water and sewer, is indicative of a premium lot within the subject. Although the overall lot size is lar-
ger, the water's edge is within the lot lines of the sites in Lighthouse Cove. This is unlike the subject
where the waters edge is outside the lot lines. The impact of this condition results in an overstate-
ment of the lot area and in our opinion, the net area is competitive with the subject. Homes in the
community are selling from the upper$1,000,000s. The vacant lot, which is planned to be improved
with a custom home, sold in May of 2006 for$290,000 on a cash basis. After adjusting this compara-
ble for the differences in view/setting,the following values are indicated for the subject lots:
Average View/Setting Lots = $276,000
Premium View/Setting Lots = $290,000
Comparable No. 2 is the purchase of a 25,792 square foot finished lot located on the south side of
Pelican Shores Drive west of Pelican Shores Court within the Pelican Shores community. The prop-
erty,which is indicative of an average view/setting lot, has about 109 feet of lake frontage and 130 feet
of street frontage on Pelican Shores Drive. The basically level site is at-grade and zoned PUD R-1
Intermountain Consultants,Inc. 12
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
with both public water and sewer available to the property. The homesite also has the capability of in-
cluding a private dock. Motorized watercraft are allowed on the lake which also includes a common
launching ramp. The lot,which was acquired for the development of a speculative home to be offered
at$1,395,000, sold in June of 2006 for$285,000 on a cash basis. After adjusting this comparable for
the differences in view/setting,the following values are indicated for the subject lots:
Average View/Setting Lots = $285,000
Premium View/Setting Lots = $299,000
Comparable No. 3 is the sale of a 31,184 square foot lot located on the south side of Pelican Shores
Drive west of Pelican Shores Court within the subject subdivision. The basically level parcel has about
299 feet of lake frontage and 91 feet of street frontage along Pelican Shores Drive. The property,
which is indicative of a premium view/setting within Pelican Shores, is comparable in location and
amenities while also capable of accommodating a private dock. The property,which was acquired for
a custom home, sold in July of 2006 for$290,000 on a cash basis. After adjusting this comparable for
the differences in view/setting,the following values are indicated for the subject lots:
Average View/Setting Lots = $276,000
Premium View/Setting Lots = $290,000
Comparable No.4 is the sale of an 18,744 square foot lot located on the west side of Pelican Shores
Drive south of Pelican Shores Court also within the subject subdivision. The basically level parcel has
about 130 feet of lake frontage and 131 feet of street frontage along Pelican Shores Court. The prop-
erty,which is indicative of a premium view/setting within Pelican Shores, is also capable of accommo-
dating a private dock. The finished lot is presently being improved with a speculative home offered in
the low$1,000,000s. The homesite sold in October of 2006 for $285,000 on a cash basis. After ad-
justing this comparable for differences in view/setting,the following values are indicated for the subject
lots:
Average View/Setting Lots = $271,000
Premium View/Setting Lots = $285,000
Comparable No. 5 is the purchase of a 25,589 square foot finished lot located on the west side of
Pelican Shores Drive south of Pelican Shores Court within the Pelican Shores community. The prop-
erty, which is indicative of a premium view/setting lot, has about 219 feet of street frontage and 193
feet of lake frontage that can also include a private dock. The basically level site is at-grade and
zoned PUD R-1 with both public water and sewer available to the property. Motorized watercraft are
allowed on the lake which also includes a common launching ramp. The lot, which was acquired for
the development of a home in the $1,000,000 range, is under contract for$295,000 on a cash basis.
The transaction is schedule to close in September of 2007. After adjusting this comparable for the dif-
ferences in view/setting,the following values are indicated for the subject lots:
Average View/Setting Lots = $280,000
Premium View/Setting Lots = $295,000
Intermountain Consultants,Inc. 13
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
The comparables reflect an adjusted range of value from $271,000 to $285,000 per lot for the average view/
setting homesites and from $285,000 to $299,000 per lot for the homesites with premium view/settings. The
adjustments are summarized as follows:
Summary of Finished Lot Sale Adjustments
Sale Price Time Time Adj Lose- Lot View/ Amen- Site Chant Total Adj Price
No Per Lot Adj Price Per Lot Lion Size Setting ities teristics Adj Per Lot(md)
Average View/Setting Lots
1. $290,000 0.0% $290,000 Equal Equal -5.0% Equal Equal - 5.0% $276,000
2. $285,000 0.0% $285,000 Equal Equal Equal Equal Equal 0.0% $285,000
3. $290,000 0.0% $290,000 Equal Equal -5.0% Equal Equal - 5.0% $276,000
4. $285,000 0.0% $285,000 Equal Equal -5.0% Equal Equal - 5.0% $271,000
5. $295,000 0.0% $295,000 Equal Equal -5.0% Equal Equal -5.0% $280,000
Indicated Value $275,000
Premium View/Setting Lots
1. $290,000 0.0% $290,000 Equal Equal Equal Equal Equal 0.0% $290,000
2. $285,000 0.0% $285,000 Equal Equal +5.0% Equal Equal +5.0% $299,000
3. $290,000 0.0% $290,000 Equal Equal Equal Equal Equal 0.0% $290,000
4. $285,000 0.0% $285,000 Equal Equal Equal Equal Equal 0.0% $285,000
5. $295,000 0.0% $295,000 Equal Equal Equal Equal Equal 0.0% $295,000
Indicated Value $290,000
Based on the preceding discussion while also accounting for similarities and differences between the subject
and the comparables, it is our opinion that the aggregate retail proceeds of the subject lots, as of September 1,
2006,would be fairly represented as follows:
Estimated Gross Retail Proceeds
No of Estimated Combined
Lots Type Retail Price Retail Value
11 Average View/Setting Lots $275,000 $3,025,000
8 Premium ViewlSeting Lots $290,000 $2,320,000
19 Total $5,345,000
Average Retail Price Per Lot $ 281,316
GROSS RETAIL PROCEEDS OF THE 19 FINISHED DETACHED HOMESITES
AS OF SEPTEMBER 1,2007
Five Million Three Hundred Forty-Five Thousand Dollars
$5,345,000
Intermountain Consultants,Inc. 14
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
Absorption
The lots are being marketed as homesites available to builders and individuals. In order to arrive at the amount
of time needed to sell the 19 lots, absorption rates in eight projects in the area that accommodate speculative
and custom homes have been identified. These projects are summarized as follows:
Summary of Custom Lot Activity
Avg Months No of Lots Monthly
No Project/Location Lot Price on Market Absorbed Absorption
1. Candlelight Estates $225,400 12 2 0.2
Erie,CO
2. Legend Ridge $464,500 12 7 0.6
Niwot,CO
3. Portico $387,500 12 8 0.7
Longmont,CO
4. Rainbow Ridge Estates $132,000 12 2 0.2
Longmont,CO
5. Somerset Meadows $250,000 12 5 0.4
Longmont,CO
6. Summerlin $265,000 12 1 0.1
Longmont,CO
7. Pelican Shores $290,000 12 2 0.2
Firestone,CO
8. Reserve at Renaissance $229,000 12 5 0.4
Longmont,CO
Total 96 32 0.3 tavg)
The preceding projects, all of which are located in the northern/northwestern metropolitan Denver area, are
indicative of subdivisions accommodating custom builders offering high-end homes selling from around
$700,000 to the mid $1,000,000s. The projects reflect absorption rates from .1 to .7 lots per month with an
overall average of.3 lots per month.
Based on an aggressive marketing program, it is our opinion that the subject lots should be absorbed at a rate
of one lot per quarter or .3 lots per month. This equates to a 57-month or 19-quarter sell-out. The anticipated
absorption is summarized as follows:
Intermountain Consultants,Inc. 15
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
Summary of Projected Absorption
No of No of
Period Sales Period Sales
1e Quarter 1 11"Quarter 1
2^^Quarter 1 12"Quarter 1
3b Quader 1 13th Quarter 1
4"Quarter 1 14"Quarter 1
5"Quarter 1 15"Quarter 1
6"Quarter 1 16"Quarter 1
7"Quarter 1 17"Quarter 1
8"Quarter 1 18"Quarter 1
9"Quarter 1 19"Quarter 1
10"Quarter 1 Total 19
Revenues
The average retail proceeds of the finished lots, as of September 1, 2007, are estimated at $281,316 per lot.
The retail prices are anticipated to remain stable for the initial year and then increase 1.0% per quarter or 4.0%
annually for the remainder of the sell-out period.
Marketing and Closing Costs
This figure is estimated at 7.0% of the gross sale revenues and encompasses advertising as well as outside
commissions that range from 2.8%to 3.0%. In addition, approximately 1.0% of this category accounts for clos-
ing costs that are the responsibility of the seller.
Homeowner Fees
Homeowner fees are $150 per lot per month or$450 per quarter. The homeowners association is responsible
for the maintenance and insurance of the common elements of the project as well as enforcing the covenants
and architectural standards. The association fees are anticipated to increase 3.0%annually.
Intermountain Consultants,Inc. 16
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
Real Estate Taxes
The real estate taxes due in 2007 totaled $571 per lot or$143 per lot per quarter. The estimated taxes due in
2008 are based on the applying last year's mill levy to the 2007 assessed value provided by the assessor. This
figure equates to $1,458 per lot annually or $365 per lot per quarter ($392,350 + $1,000 x 70.613 + 19 lots).
The 2009, 2010,2011,and 2012 taxes are estimated to increase 3%annually over the 2008 taxes.
Administrative Expenses
The administrative expenses are estimated at 1.5% of the gross revenues and were applied to all of the lots
upon completion.
Discounted Cash Flow Analysis Technique
To arrive at a present value estimate of the cash flow generated from the sale revenues, the net operating in-
come was discounted at 18.0% over the projection period. This rate is considered consistent with investment
expectations and takes into consideration an entrepreneurial profit which is the monetary compensation for the
time, effort, and risk involved in selling-out the remainder of the project. To determine an appropriate discount
rate, several developers in the residential housing market including the Writer Corporation,Triton Development,
Woodcrest Homes, East West Partners, Remington Homes, McKee Construction, KB Home, Lowe Enterprises,
Ironwood Builders, Fullerton Company, Koelbel & Company, Village Homes, and Trimark were interviewed in
regards to what profit incentive would be required to undertake a project such as the subject. The responses
varied and ranged from yields of 16%to 22%.
The Discounted Cash Flow Analysis is presented on the following page.
Intermountain Consultants,Inc. 17
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
Discounted Cash Flow Analysis
19 Lots
1th 2m 3rd 4th 5th 6th 7th 8th 9th 10th
Projection Quarterly Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
Lots Available 19 18 17 16 15 14 13 12 11 10
Lots Sold 1 1 1 1 1 1 1 1 1 I
Average Retail Lot Price $281,316 $281,316 $281,316 $281,316 $284,129 $286,970 $289,840 $292,739 $295,666 $298,623
Est.Association Fees $450 $450 $450 $450 $464 $464 $464 $464 $477 $477
Est.Real Estate Taxes $143 $291 $365 $365 $365 $372 $376 $376 $376 $383
Revenues $281,316 $281,316 $281,316 $281,316 $284,129 $286,970 $289,840 $292,739 $295,666 $298,623
Expenses:
Mkting/Closing Costs-7.0% $19,692 $19,692 $19,692 $19,692 $19,889 $20,088 $20,289 $20,492 $20,697 $20,904
Association Fees $8,550 $8,100 $7,650 $7,200 $6,960 $6,496 $6,032 $5,568 $5,247 $4,770
Real Estate Taxes $2,717 $5,238 $6,205 $5,840 $5,475 $5,208 $4,888 $4,512 $4,136 $3,830
Administration-1.5% $4,220 $4,220 $4,220 $4,220 $4,262 $4,305 $4,348 $4,391 $4,435 $4,479
Total Expenses $35,179 $37,250 $37,767 $36,952 $36,586 $36,096 $35,556 $34,963 $34,515 $33,983
Net Income $246,137 $244,066 $243,549 $244,364 $247,543 $250,874 $254,284 $257,776 $261,151 $264,640
11th 12th 13th 14th 15th 16th 17th 18th 19th
Projection Quarterly Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
Lots Available 9 8 7 6 5 4 3 2 I
Lots Sold 1 1 1 1 1 1 1 I 1
Average Retail Lot Price $301,609 $304,625 $307,671 $310,748 $313,855 $316,994 $320,164 $323,365 $326,599
Est.Association Fees $477 $477 $491 $491 $491 $491 $506 $506 $506
Est.Real Estate Taxes $387 $387 $387 $395 $398 $398 $398 $406 $410
Revenues $301,609 $304,625 $307,671 $310,748 $313,855 $316,994 $320,164 $323,365 $326,599
Expenses:
Mkting/Closing Costs-7.0% $21,113 $21,324 $21,537 $21,752 $21,970 $22,190 $22,411 $22,636 $22,862
Association Fees $4,293 $3,816 $3,439 $2,946 $2,455 $1,964 $1,517 $1,012 $506
Real Estate Taxes $3,483 $3,096 $2,709 $2,370 $1,990 $1,592 $1,194 $812 $410
Administration-1.5% $4,524 $4,569 $4,615 $4,661 $4,708 $4,755 $4,802 $4,850 $4,899
Total Expenses $33,413 $32,805 $32,300 $31,730 $31,123 $30,500 $29,925 $29,310 $28,677
Net Income $268,196 $271,820 $275,371 $279,018 $282,733 $286,493 $290,239 $294,055 $297,922
Intermountain Consultants.Inc. 18
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
The present values of the cash flows are calculated as follows:
Cash Flow Calculation
Cash Discount Present
Period Flow Rate Factor Value
Quarter l $246,137 18.00% 0.9569 $235,529
Quarter2 $244,066 18.00% 0.9157 $223,491
Quarter3 $243,549 18.00% 0.8763 $213,422
Quarter4 $244,364 18.00% 0.8386 $204,924
Quarter5 $247,543 18.00% 0.8025 $198,653
Quarter 6 $250,874 18.00% O7679 $192,646
Quarter? $254,284 18.00% 0.7348 $186,848
Quarter 8 $257,776 18.00% 0.7032 $181,268
Quarter9 $261,151 18.00% 0.6729 $175,729
Quarter 10 $264,640 18.00% 0.6439 $170,401
Quarter 11 $268,196 18.00% 0.6162 $165,262
Quarter 12 $271,820 18.00% 0.5897 $160,292
Quarterl3 $275,371 18.00% 0.5643 $155,392
Quarter 14 $279,018 18.00% 0.5399 $150,642
Quarter 15 $282,733 18.00% 0.5167 $146,088
Quarter 16 $286,493 18.00% 0.4945 $141,671
Quarter 17 $290,239 18.00% 0.4732 $137,341
Quarterl8 $294,055 18.00% 0.4528 $133,148
Quarter 19 $297,922 18.00% 0.4333 $129,090
Total (md) $3,300,000
MARKET VALUE"AS IS"
AS OF SEPTEMBER 1,2007
Three Million Three Hundred Thousand Dollars
$3,300,000
Intermountain Consultants,Inc. 19
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
ASSUMPTIONS AND LIMITING CONDITIONS
1. Title to the property is assumed to be good and marketable.
2. No responsibility for legal matters is assumed, nor are the appraisers required to give testimony or
appear in court unless prior arrangements have been made in writing.
3. The information, estimates, and opinions furnished to the appraisers and contained in this report were
obtained from sources considered reliable and believed to be true and correct. However, no responsi-
bility for the accuracy of such items furnished to the appraisers can be assumed by the appraisers.
4. Sketches and reproductions in this report are intended for illustrative purposes only.
5. Possession of this report does not grant the right of reproduction of all or part of the contents of the
report without the written consent of the appraisers.
6. Neither all nor any part of the contents of this report shall be conveyed to the public through advertis-
ing, public relations, news, sales or other media without the written consent and approval of the au-
thors, particularly as to the valuation conclusions, the identity of the appraisers or the firm with which
they are connected, or any reference to the Appraisal Institute or to the MAI designation.
7. The appraisers assume that there are no hidden or unapparent conditions of the property or subsoil
that would render them more or less valuable. The appraisers do not assume responsibility for such
conditions or for engineering which might be required to discover such factors.
8. Unless otherwise stated in this report, the existence of hazardous materials that may or may not be
present on the property was not observed by the appraisers. Furthermore, the appraisers have no
knowledge of the existence of such materials on or in the property and are not qualified to detect such
substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation, or
other potentially hazardous materials may affect the value of the property. The opinions of value are
predicated on the assumption that there is no such material on or in the property that would cause a
loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering
knowledge required to discover them. The client is urged to retain an expert in this field, if desired.
9. It is an assumption of this report that the properly will be aggressively marketed.
Intermountain Consultants,Inc. 20
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
CERTIFICATE
I certify that to the best of my knowledge and belief:
• I have made a personal inspection of the property that is the subject of this report.
• The statements of fact contained in this report are true and correct.
• The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions, and are my personal, unbiased professional
analyses, opinions, and conclusions.
• I have no present or prospective interest in the property that is the subject of this
report, and I have no personal interest or bias with respect to the parties involved.
• My compensation is not contingent upon the reporting of a predetermined value or
direction in value that favors the cause of the client, the amount of the value esti-
mate, the attainment of a stipulated result, or the occurrence of a subsequent
event.
• The appraisal assignment was not based on a requested minimum valuation, a
specific valuation, or the approval of a loan.
• My analyses, opinions, and conclusions were developed, and this report has been
prepared, in conformity with the Uniform Standards of Professional Appraisal Prac-
tice.
• This appraisal report has been made in conformity with and is subject to the re-
quirements of the Code of Professional Ethics and Standards of Professional Con-
duct of the Appraisal Institute, of which I am a member in good standing.
• As of the date of this report, I, Bruce D. Buchan, MAI, have completed the re-
quirements under the continuing education program of the Appraisal Institute.
• My state appraisal certification/registration has not been revoked, suspended, can-
celed, or restricted.
i
• In arriving at the analyses, conclusions, and opinions contained in this report, I,
• Bruce D. Buchan, consulted with Susan E.Taylor.
Bruce D. Buchan, MAI
Colorado Certified General Appraiser No. CG 1313128
Intermountain Consultants,Inc. 21
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
QUALIFICATIONS OF BRUCE D. BUCHAN, MAI
License: Colorado Certified General Appraiser No. CG 1313128
Education: University of Washington, B.A. in Urban Planning/Development, 1978
AIREA Courses 1A, 1B, II-1, II-2, 11-3, &VII
CCIM Course 101
Appraiser Regulations Seminar
Depredation Analysis
Discounted Cash Flow Analysis
Fair Lending&The Appraiser
Hotel/Motel Valuation
Rates, Ratios,and Reasonableness
Residential Review
Subdivision Analysis
Water Law I and II
Employment: Intermountain Consultants,Inc., Denver/Evergreen, Colorado
President of the full-service valuation and consulting firm
1983- 1985; 1987-2004; 2006-present
Asset Valuation Advisors, LLP, Denver, Colorado
Partner in the full-service firm
2004-2006
Laventhol&Horwath, Denver and San Francisco offices
Senior Manager,Appraisal and Leisure Time Industry Consulting Division
1985- 1986
Independent Fee Appraiser
Denver, CO and Seattle,WA
1978- 1983
Experience: Appraisals of urban, suburban, and resort properties including vacant land, sub-
divisions, office buildings, retail centers, industrial and special purpose facilities,
restaurants, golf courses, ski areas, destination resorts, lodging facilities, resi-
dential dwellings, apartments, condotels, employee housing, movie theaters,
utility districts, and recreational properties
Office, hotel,condominium, shopping center,and apartment feasibility studies
Market analysis studies
Appraisal reviews
Court Testimony: Qualified as an expert witness with the United States Bankruptcy Court and the
State of Colorado District Court
Organizations: Member,Appraisal Institute
Denver Board of Realtors
Grand County Board of Realtors
National Ski Areas Association
Vail Board of Realtors
Intermountain Consultants,Inc. 22
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
CLIENTS SERVED
Action Mortgage Company Key Bank
AmTrust Bank LaSalle Bank
American General Investment Corporation Legg Mason Real Estate Services
American National Bank Lowe Enterprises
American Real Estate Group Lutheran Brotherhood
American Savings and Loan Association Madden Development Company
Bank of America Mercantile Bank of Canada
Bank of Oklahoma Millennium Bank
Bank of the West Moore Mortgage Company
Bank One Nationwide Life Insurance
Boatmen's First National Bank New York Life Insurance Company
California Bank&Trust Norstar Bank
City of Arvada Ohio Savings Bank
Coldwell Banker Management Corporation Peak National Bank
Colorado State Bank Pioneer Industries
Column Financial RECOLL
Comerica Bank Resolution Trust Corporation (RTC)
Community First National Bank St.Anthony's Hospital
Compass Capital Seattle First National Bank
Crown Life Insurance Company Security Pacific Bank
Daniels and Associates Shapiro Development
East West Partners Silver Creek Resort
FBS Mortgage Snowbird Ski&Summer Resort
Federal Deposit Insurance Corporation (FDIC) Spectrum Properties
1st Bank State of Colorado
1st National Bank of Arvada Sterling Savings Bank
First Interstate Real Estate Services Company Town of Vail
First MainStreet Bank TrendWest Resorts
First National Bank of Colorado Trillium Corporation
Fleet Bank United States Postal Service
Fortis Advisers, Inc. U.S. Bank
Government National Mortgage Association (GNMA) U.S. Bancorp, Inc.
Grupe Company Washington Mutual Bank
Howard Life Insurance Washington Trust Bank
Information Handling Company Wells Fargo Bank
J E Robert Companies Wells Fargo Corporate Properties
Jefferson County Airport Wells Fargo Mortgage Company
Jefferson National Life Insurance WestStar Bank
KB Home Colorado, Inc.
Intermountain Consultants,Inc, 23
ADDENDUM
•
•
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PELICAN SHORES COURT
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
ASSUMPTIONS AND LIMITING CONDITIONS
1. Title to the property is assumed to be good and marketable.
2. No responsibility for legal matters is assumed, nor are the appraisers required to give testimony or
appear in court unless prior arrangements have been made in writing.
3. The information, estimates, and opinions furnished to the appraisers and contained in this report were
obtained from sources considered reliable and believed to be true and correct. However, no responsi-
bility for the accuracy of such items furnished to the appraisers can be assumed by the appraisers.
4. Sketches and reproductions in this report are intended for illustrative purposes only.
5. Possession of this report does not grant the right of reproduction of all or part of the contents of the
report without the written consent of the appraisers.
6. Neither all nor any part of the contents of this report shall be conveyed to the public through advertis-
ing, public relations, news, sales or other media without the written consent and approval of the au-
thors, particularly as to the valuation conclusions, the identity of the appraisers or the firm with which
they are connected, or any reference to the Appraisal Institute or to the MAI designation.
7. The appraisers assume that there are no hidden or unapparent conditions of the property or subsoil
that would render them more or less valuable. The appraisers do not assume responsibility for such
conditions or for engineering which might be required to discover such factors.
8. Unless otherwise stated in this report, the existence of hazardous materials that may or may not be
present on the property was not observed by the appraisers. Furthermore, the appraisers have no
knowledge of the existence of such materials on or in the property and are not qualified to detect such
substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation, or
other potentially hazardous materials may affect the value of the property. The opinions of value are
predicated on the assumption that there is no such material on or in the property that would cause a
loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering
knowledge required to discover them. The client is urged to retain an expert in this field, if desired.
9. It is an assumption of this report that the property will be aggressively marketed.
Intermountain Consultants,Inc. 20
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
CERTIFICATE
I certify that to the best of my knowledge and belief:
• I have made a personal inspection of the property that is the subject of this report.
• The statements of fact contained in this report are true and correct.
• The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions, and are my personal, unbiased professional
analyses, opinions, and conclusions.
• I have no present or prospective interest in the property that is the subject of this
report, and I have no personal interest or bias with respect to the parties involved.
• My compensation is not contingent upon the reporting of a predetermined value or
direction in value that favors the cause of the client, the amount of the value esti-
mate, the attainment of a stipulated result, or the occurrence of a subsequent
event.
• The appraisal assignment was not based on a requested minimum valuation, a
specific valuation,or the approval of a loan.
• My analyses, opinions, and conclusions were developed, and this report has been
prepared, in conformity with the Uniform Standards of Professional Appraisal Prac-
tice.
• This appraisal report has been made in conformity with and is subject to the re-
quirements of the Code of Professional Ethics and Standards of Professional Con-
duct of the Appraisal Institute, of which I am a member in good standing.
• As of the date of this report, I, Bruce D. Buchan, MAI, have completed the re-
quirements under the continuing education program of the Appraisal Institute.
• My state appraisal certification/registration has not been revoked, suspended, can-
celed, or restricted.
• In arriving at the analyses, conclusions, and opinions contained in this report, I,
Bruce D. Buchan, consulted with Susan E.Taylor.
A. ',as-
Bruce D. Buchan, MAI
Colorado Certified General Appraiser No. CG 1313128
Intermountain Consultants,Inc. 21
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
QUALIFICATIONS OF BRUCE D. BUCHAN, MAI
License: Colorado Certified General Appraiser No. CG 1313128
Education: University of Washington, B.A. in Urban Planning/Development, 1978
AIREA Courses 1A, 1B, II-1, 11-2, II-3, &VII
CCIM Course 101
Appraiser Regulations Seminar
Depreciation Analysis
Discounted Cash Flow Analysis
Fair Lending&The Appraiser
Hotel/Motel Valuation
Rates, Ratios,and Reasonableness
Residential Review
Subdivision Analysis
Water Law I and II
Employment: Intermountain Consultants,Inc., Denver/Evergreen,Colorado
President of the full-service valuation and consulting firm
1983- 1985; 1987-2004; 2006-present
Asset Valuation Advisors, LLP, Denver, Colorado
Partner in the full-service firm
2004-2006
Laventhol &Horwath, Denver and San Francisco offices
Senior Manager,Appraisal and Leisure Time Industry Consulting Division
1985- 1986
Independent Fee Appraiser
Denver, CO and Seattle,WA
1978- 1983
Experience: Appraisals of urban, suburban, and resort properties including vacant land, sub-
divisions, office buildings, retail centers, industrial and special purpose facilities,
restaurants, golf courses, ski areas, destination resorts, lodging facilities, resi-
dential dwellings, apartments, condotels, employee housing, movie theaters,
utility districts,and recreational properties
Office, hotel,condominium, shopping center,and apartment feasibility studies
Market analysis studies
Appraisal reviews
Court Testimony: Qualified as an expert witness with the United States Bankruptcy Court and the
State of Colorado District Court
Organizations: Member,Appraisal Institute
Denver Board of Realtors
Grand County Board of Realtors
National Ski Areas Association
Vail Board of Realtors
Intermountain Consultants,Inc 22
19 Finished Homesites within Phase I of Pelican Shores
Firestone,CO
CLIENTS SERVED
Action Mortgage Company Key Bank
AmTrust Bank LaSalle Bank
American General Investment Corporation Legg Mason Real Estate Services
American National Bank Lowe Enterprises
American Real Estate Group Lutheran Brotherhood
American Savings and Loan Association Madden Development Company
Bank of America Mercantile Bank of Canada
Bank of Oklahoma Millennium Bank
Bank of the West Moore Mortgage Company
Bank One Nationwide Life Insurance
Boatmen's First National Bank New York Life Insurance Company
California Bank&Trust Norstar Bank
City of Arvada Ohio Savings Bank
Coldwell Banker Management Corporation Peak National Bank
Colorado State Bank Pioneer Industries
Column Financial RECOLL
Comerica Bank Resolution Trust Corporation(RTC)
Community First National Bank St.Anthony's Hospital
Compass Capital Seattle First National Bank
Crown Life Insurance Company Security Pacific Bank
Daniels and Associates Shapiro Development
East West Partners Silver Creek Resort
FBS Mortgage Snowbird Ski&Summer Resort
Federal Deposit Insurance Corporation (FDIC) Spectrum Properties
1st Bank State of Colorado
1st National Bank of Arvada Sterling Savings Bank
First Interstate Real Estate Services Company Town of Vail
First MainStreet Bank TrendWest Resorts
First National Bank of Colorado Trillium Corporation
Fleet Bank United States Postal Service
Fortis Advisers, Inc. U.S. Bank
Government National Mortgage Association (GNMA) U.S. Bancorp, Inc.
Grupe Company Washington Mutual Bank
Howard Life Insurance Washington Trust Bank
Information Handling Company Wells Fargo Bank
J E Robert Companies Wells Fargo Corporate Properties
Jefferson County Airport Wells Fargo Mortgage Company
Jefferson National Life Insurance WestStar Bank
KB Home Colorado, Inc.
Intermountain Consultants,Inc. 23
ADDENDUM
Yv
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M1
PELICAN SHORES COURT
Page 1 of 1
Donna Bechler
From: Kim Ogle
Sent: Wednesday, December 12, 2007 12:27 PM
To: Donna Bechler
Subject: FW: Pelican Shores - Reduction of Letter of Credit
Doug Tiefels development(Pelican Shores PUD)
Kim Ogle I Planning Manager
From: Forest Park [mailto:forestpark@mesanetworks.net]
Sent: Tuesday, September 25, 2007 1:11 PM
To: Kim Ogle
Subject: Pelican Shores - Reduction of Letter of Credit
Kim:
Thank you for your telephone message. Would you please let us know what the scheduled date is for the County
Commissioners Meeting for the consideration of the reduction of the Letter of Credit for River Runs Through It,
LLC?
Tina L. Willits
Columbine Land Resources, Inc.
P.O. Box 17130
Boulder, CO 80308-0130
Tele: 303-665-9390
Fax: 303-665-0165
12/12/2007
Page 1 of 1
Donna Bechler
From: Kim Ogle
Sent: Wednesday, December 12, 2007 1:17 PM
To: Donna Bechler
Subject: FW: Pelican Shores -release the money
Attachments: PF-1101-Pelican Shores PartialReleaseCollateral.doc
Kim Ogle I Planning Manager
From: David Bauer
Sent: Wednesday, December 12, 2007 12:56 PM
To: Kim Ogle
Subject: Pelican Shores - release the money
Kim,
Per your request, please see the attached memo for the partial release for Pelican Shores.
David Bauer
Weld County Public Works
12/12/2007
CLR
COLUMBINE LAND RESOURCES INC.
December 20,2007
Bruce Barker
County Attorney
County of Weld
915 10th Street
Greeley,CO 80634
Re: Pelican Shores Subdivision—Request for Reduction,Letters of Credit
Dear Bruce:
Enclosed please find the following documents:
1. Two(2)Original Amendments to Improvements Agreements;and
2. Original Deed of Trust for Pelican Shores PUD Lots 18,Block 1 and 14,Block 2.
Please let us know if you should have questions or need additional information. Thank you again for
your help with this process.
Sincerely,
1� ',V2—
Doug Tiefel
President
Enclosures
P.O. Box 17130, Boulder, Colorado 80308 • Tele 303.665.9390 • Fax 303.665.0165 • forestpark@mesanetworks.net
6
CLERK TO THE BOARD
WI
PHONE (970) 336-7215, Ext. 4225
FAX: (970) 352-0242
P. O. BOX 758
O GREELEY, COLORADO 80632
COLORADO
December 26, 2007
HERITAGE BANK
2695 NORTH PARK DRIVE STE 101
LAFAYETTE CO 80026-3166
RE: Cancellation and release of Collateral - Columbine Land Resources, Inc., c/o Doug
Tiefel
To Whom it may concern:
Attached hereto please find the Board of County Commissioners Resolution releasing the
collateral for Columbine Land Resources, Inc., do Doug Tiefel, and the original Letter of Credit
issued by Heritage Bank issuing collateral, in the amount of$594,440.00.
If you have questions or need additional information, please do not hesitate to contact me at
(970) 356-4000, Extension 4217.
Very truly yours,
BOARD OF COUNTY COMMISSIONERS
By: o' /C--1 /?°�_ l'�°!///'!�
Donna J. Becfiler,
Deputy Clerk to the Board
Heritage Baik24
L°r,lT
--- Lafayette•95th Stz s4 oer 4.
c
2695 North Park Drive • Suite 101 • Lafayette, CO 80026-3166w. PA dr° wOt PQG
303-666-0111 Fax 303-666-1904 wwheritagebanks.com `ry 4- Crre
d o d
e1, e rs
11.
e
ar
Heritage Bank
2695 North Park Drive
Lafayette, Co 80026
Irrevocable Letter of Credit
Number 555566501
December 9, 2004
BENEFICIARY:
County of Weld
C/O Board of County Commissioners
1555 N 17th Avenue
Greeley, CO 80631
At the request and for the account of Columbine Land Resources, Inc, c/o Doug Tiefel,
P. O. Box 17130, Boulder, CO 80308, we hereby establish our irrevocable Letter of Credit in
your favor in the amount of Five Hundred Ninety Four Thousand Four Hundred Forty and
NO/100 United States Dollars (US $594,440.00). This Letter of Credit is available with us
at our above office by payment of your draft(s) drawn on us at sight accompanied by your
signed and dated statement worded as follows:
"The undersigned, an authorized representative of County of Weld ("County)
hereby certifies that Columbine Land Resources, Inc ("Applicant") has not
performed according to the terms and conditions of the Improvements
Agreement for Pelican Shores PUD Block 2, agreement being signed by and
between the County and Applicant. The undersigned further certifies that
(1) County has given written notice to Applicant to cure the default and such
default has not been cured up to this date of drawing under this Letter of
Credit and all applicable cure period(s) if any, have expired. (2) The amount
of the accompanying draft drawn under Heritage Bank Letter of Credit
number 555566501 represents the amount the County is entitled to draw as a
result of the occurrence of such event of default."
The original of this Letter of Credit for our endorsement must also accompany each draft
on this Letter of Credit of our payment of such draft.
Colorado banking at its best.
Partial and multiple drawings are permitted under this Letter of Credit.
Each draft must be marked "Drawn under Heritage Bank Letter of Credit number
555566501."
This Letter of Credit expires at our above office on December 9, 2005 but shall be
automatically extended, without written amendment, to December 9 in each succeeding
calendar year unless we have sent written notice to you at your address above by
registered mail or express courier that we elect not to renew this Letter of Credit beyond
the date specified in such notice, which expiration date will be December 9, 2006 or any
subsequent December 9 and be at least sixty (60) calendar days after the date we send you
such notice.
Upon our sending you such notice of the non-renewal of the expiration date of this
Letter of Credit, you may also draw under this Letter of Credit by presentation to us at our
above address, on or before the expiration date specified in such notice, of your draft drawn
on us at sight accompanied by your signed and dated statement worded as follows:
"The undersigned, an authorized representative of County of Weld ("County")
hereby certifies that (1) the County has received notice from Heritage Bank
that Letter of credit No. 555566501 will not be renewed beyond its current
expiration date and (2) Columbine Land Resources, Inc. has failed to obtain
a replacement Letter of Credit in form and substance satisfactory to the
County."
If any instructions accompanying a drawing under this Letter of Credit request that
payment is to be made by transfer to an account with us or at another bank, we and/or
such other bank may rely on an account number specified in such instructions even if the
number identifies a person or entity different from the intended payee.
We hereby engage with you that each draft drawn and presented to us in compliance
with the terms and provisions of this Letter of Credit will be duly honored by payment to
you of the amount request.
Very Truly Yours,
Heritage Ba
•
Joseph W Dawson
VP/Managing Officer
Columbine Land Resources, Inc.
`' Revised 12/16/04
6
CLERK TO THE BOARD
PHONE (970) 336-7215, Ext. 4225
FAX: (970) 352-0242
P. O. BOX 758
owe GREELEY, COLORADO 80632
COLORADO
December 26, 2007
WELLS FARGO BANK N.A.
TRADE SERVICES DIVISION, NORTHERN CALIFORNIA
ONE FRONT STREET - 21st Floor
MAC #A0195-212
SAN FRANCISCO CA 94111
RE: Cancellation and release of Collateral - Columbine Land Resources, Inc., do Doug
Tiefel
To Whom it may concern:
Attached hereto please find the Board of County Commissioners Resolution releasing the
collateral for Columbine Land Resources, Inc., do Doug Tiefel, and the original Letter of Credit
issued by Wells Fargo Bank N.A., issuing collateral, in the amount of$992,879.00.
If you have questions or need additional information, please do not hesitate to contact me at
(970) 356-4000, Extension 4227.
Very truly yours,
BOARD OF COUNTY COMMISSIONERS
By: 4'1/0'1/0 42-pc-c<adt,2 -
Donna J. Bechter,
Deputy Clerk to the Board
c� Trade Services San Francisco
Y"'ELLS MAC A0195-212
ft'ELL One Front Street,21st Floor
San Fran`
WELLS FARGO BANK, N.A. 7
4E�A 94111
TRADE SERVICES DIVISION, NORTHERN CALIFORNIAc' of
ONE FRONT STREET- 21ST FLOOR r equ .4t cRED
MAC #A0195-212 8 d o 1retj eral IT
AA
SAN FRANCISCO, CALIFORNIA, 9411 c°u°t o aced°nger
CONTACT PHONE: 1(800) 798-2815 OPTION 1 be mmz by
EMAIL: sftrade@wellsfargo.com n°tv (7 Ss-ton
Ierk ers
IRREVOCABLE LETTER OF CREDIT to
the
BENEFICIARY: B° rd
County Of Weld Letter of Credit No: NZS532910
C/O Board Of County Commissioners Date: December 06, 2004
1555 N. 17TH Avenue
Greeley, CO 80631
At the request and for the account of River Runs Through It, LLC, c/o Doug
Tiefel, P.O. Box 17130, Boulder, CO 80308, we hereby establish our irrevocable
Letter of Credit in your favor in the amount of Nine Hundred Ninety Two Thousand
Eight Hundred Seventy Nine and NO/100 United States Dollars (US $992,879.00).
This Letter of Credit is available with us at our above office by payment of your draft(s)
drawn on us at sight accompanied by your signed and dated statement worded as
follows:
"The undersigned, an authorized representative of County Of Weld
("County "), hereby certifies that River Runs Through It, LLC
("Applicant") has not performed according to the terms and conditions of
the Improvements Agreement for Weld County Road 26 and the
Improvements Agreement for Pelican Shores PUD Bock 1, both
agreements being signed by and between the County and Applicant.
The undersigned further certifies that (I) County has given written notice
to Applicant to cure the default and such default has not been cured up
to this date of drawing under this Letter of Credit and all applicable cure
period (if any) has expired, and (II) The amount of the accompanying draft
drawn under Wells Fargo Bank, N.A. Letter of Credit number NZS532910
represents the amount the County is entitled to draw as a result of the
occurrence of such event of default."
The original of this Letter of Credit for our endorsement must also accompany
each draft on this Letter of Credit of our payment of such draft.
Partial and multiple drawings are permitted under this Letter of Credit.
Each draft must be marked "DRAWN UNDER WELLS FARGO BANK, N. A.
LETTER OF CREDIT NO. NZS532910."
1
This is an integral part of Wells Fargo Bank, N.A. Letter of Credit No. NZS532910
This Letter of Credit expires at our above office on October 6, 2006 but shall be
automatically extended, without written amendment, to October 6 in each succeeding
calendar year unless we have sent written notice to you at your address above by
registered mail or express courier that we elect not to renew this Letter of Credit beyond
the date specified in such notice, which expiration date will be October 6, 2006 or any
subsequent October 6 and be at least sixty (60) calendar days after the date we send
you such notice.
Upon our sending you such notice of the non-renewal of the expiration date of
this letter of credit, you may also draw under this Letter of Credit by presentation to us
at our above address, on or before the expiration date specified in such notice, of your
draft drawn on us at sight accompanied by your signed and dated statement worded as
follows:
"The undersigned, an authorized representative of County Of Weld
("County"), hereby certifies that (1) the County has received notice from
Wells Fargo Bank, N.A. that Letter of Credit No. NZS532910 will not be
renewed beyond its current expiration date and (2) River Runs Through
It, LLC, has failed to obtain and deliver to the County a replacement letter
of credit in form and substance satisfactory to the County."
If any instructions accompanying a drawing under this Letter of Credit request
that payment is to be made by transfer to an account with us or at another bank, we
and/or such other bank may rely on an account number specified in such instructions
even if the number identifies a person or entity different from the intended payee.
This Letter of Credit is subject to the Uniform Customs and Practice For
Documentary Credits (1993 Revision), International Chamber of Commerce Publication
No. 500, and engages us in accordance with the terms thereof.
We hereby engage with you that each draft drawn and presented to us in
compliance with the terms and provisions of this Letter of Credit will be duly honored by
payment to you of the amount requested.
Very truly yours,
WELLI)FARGO BANK, N. A.
�l
By: (11\-\ 1. /_/lliviA
(Authorized Signature)
SOCv, 1.17 0
ASSISTANT VICE PRESIDENT
2
CLERK TO THE BOARD
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PHONE (970) 336-7215, Ext. 4225
FAX: (970) 352-0242
P. O. BOX 758
GREELEY, COLORADO 80632
COLORADO
December 26, 2007
ATTN: DOUG TIEFEL
COLUMBINE LAND RESOURCES
RIVER RUNS THROUGH IT, LLC
PO BOX 17130
BOULDER CO 80308
RE: Partial Cancellation and release of Collateral
Mr. Tiefel:
On December 26, 2007,the Board of County Commissioners approved the partial cancellation and
release of collateral for PF#1011, in the amounts of$594,440.00 and $992,879.00 respectively,
as referenced above, and replaced them with a Deed of Trust in the amount of $184,532.85.
Enclosed is a copy of the Resolution signed by the Board of County Commissioners. I will forward
a copy of the recorded Resolution to you as soon as it has been recorded.
If you have questions or need additional information, please do not hesitate to contact me at(970)
356-4000, Extension 4227.
Very truly yours,
BOARD OF COUNTY COMMISSIONERS
By Donna J. Bechl6r
Deputy Clerk to the Board
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