The URL can be used to link to this page

Browse Search

Home My WebLink About20050146.tiff SANDER INGEBRETSEN MILLER & PARISH, P.C. A PROFESSIONAL CORPORATION ATTORNEYS AT LAW 700 171H STREET-,St mi 2200 !min O.CAR TER DENY ER,COLORADO 80202 DIRECT 303285.`308 PARALEGAL. PHONE: 303.285-5300 EMAIL: jcarter@ssiatlaw.;om FAA: 303-285-5301 December 29, 2004 VIA HAND DELIVERY Weld County Clerk and Recorder Elections Division Post Office Box 459 Greeley, Colorado 80632 Attn: Rudy Santos Re: Cottonwood Hollow Commercial Metrqpolitan District Cottonwood Hollow Residential Metropolitan District Neighbors Point Metropolitan District The Peaks Metropolitan District Organizational Filing Pursuant to § 32-1-306, C.R.S. Dear Mr. Santos: In accordance with §32-1-306, C.R.S., enclosed please find the Service Plan, which includes the legal description and map of the district's boundaries, for each of the above-captioned districts. The certified copies of the Orders and Decree for each district have been sent for recordation under separate cover. To confirm for our records that you have received the documents, please sign and return the enclosed acknowledgement. Should you have any questions, please do not hesitate to contact me. Very truly yours, SANDER INGEBRETSEN MILLER& PARISH ofessio� �Cora .ee G. arterit aralegal :jgc Cottonwood Corn'I R Res/Neighbors Point/The Peaks/Organization !GC1532 R''39'1713V0712/17n89.0002 i)/e' / P/W �� . 04 T-2 PI) 2005-0146 COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT SERVICE PLAN TOWN OF FIRESTONE,COLORADO APPROVED OCTOBER 13, 2004 TABLE OF CONTENTS I. Introduction II. Purpose of the Proposed District 4 III. Boundaries, Population&Valuation 5 IV. Description of Proposed Facilities 6 a. Type of Improvements 6 b. Description of Existing Conditions 8 c. Anticipated Development 8 d. Public Improvement Schedule 9 e. Town Construction Standards 9 f. Limitation on Eminent Domain 10 g. Dedication of Improvements to the Town 10 h. Ownership and Operation of Facilities by the District 12 i. Acquisition of Land for Public Improvements 12 j. Services to be Provided by other Governmental Entities 13 k. Integration 13 V. Financial Plan 14 a. General 14 b. Debt Issuance 16 c. Required Transfers of Bond Proceeds to Town 17 d. Other Financial Restrictions, Limitations and Requirements 18 e. Limited Mill Levy 20 f. Investor Suitability 21 g. Refunding Bonds 22 h. Construction Financing Notes Issued to Developer 22 i. Identification of District Revenue 23 j. Security for Debt 24 k. Services of District 24 I. Quinquennial Review 24 m. Letters 25 VI. Landowners' Obligations as to Public Improvements 25 VII. Annual Report 26 VIII. Dissolution 28 IX. Consolidation 29 X. Elections 29 XL Indemnities 31 XII. Disclosure and Disclaimer;No Third-Party Rights 31 XIII. Intergovernmental Agreements 32 XIV. Conservation Trust Fund 33 XV. Modification of Service Plan 33 XVI. Failure to Comply with Service Plan 35 XVII. Resolution of Approval 35 XVIII. Severability 36 XIX. Certification 37 TABLE OF EXHIBITS Exhibit A Legal Description Exhibit B Boundary Map Exhibit C Vicinity Map Exhibit D Property Owner's Consent Exhibit E Engineering Estimates Exhibit F Location of Public Improvements Exhibit G Financial Plan; Forecasted Cash Surplus Balances and Cash Receipts and Disbursements; Market Projection Consultant's Analysis; Developer's Letter in Support of Market Projections Exhibit H Underwriter's Letter Exhibit I Legal Counsel Letter Exhibit J Bond Counsel Letter Exhibit K Part I- Developer Indemnity Letter Part II- Form of District Indemnity Letter Exhibit L Form of Disclosure Notice Exhibit M Form of Town Disclaimer Statement Exhibit N Form of Intergovernmental Agreement between District and Town Exhibit 0 Resolution of Town of Firestone Approving Service Plan ii COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT SERVICE PLAN I. INTRODUCTION The District shall be named the Cottonwood Hollow Residential Metropolitan District (the "District"). The purpose of the District is to finance certain streets, street lighting, traffic and safety controls, water, landscaping, storm drainage and park and recreation improvements for a development to be known as the Cottonwood Hollow planned unit development ("Cottonwood Hollow"). The developer of Cottonwood Hollow and the petitioner for the formation of the District is Del Camino East Properties, L.L.C., a Colorado limited liability company (the "Developer"). The District is intended to provide for the financing of public improvements for the Cottonwood Hollow development, but is not intended to be a District with perpetual existence. The District will consist of approximately one hundred forty-six and three one hundredths of one (146.03) acres and no changes in the District's boundaries are anticipated or authorized. The District shall be dissolved when its financial obligations are paid or provided for or when the Town of Firestone, Colorado (the "Town") requests dissolution, provided then- - applicable statutory requirements are met, all as further described in this Service Plan, together with all exhibits hereto(the"Service Plan"). Except as expressly provided in this Service Plan, all public improvements and facilities that are financed, constructed, installed or acquired by the District shall be dedicated and conveyed to the Town or its designee and will be operated and maintained by the Town or its designee upon Town acceptance and completion of the District's warranty obligations. The Town may require that specific landscaping improvements that are dedicated and conveyed to the Town be maintained by a homeowners' association formed for the Cottonwood Hollow development, for the use and benefit of residents, taxpayers and property owners. The District shall not provide fire or emergency protection services, which fire and emergency protection services shall be provided by the Frederick-Firestone Area Fire Protection District, either directly or, with respect to emergency services, through contract with Tri-Area Ambulance District. The District may exercise those powers of a metropolitan district set forth in §§32-1-1001 and -1004, C.R.S. only to implement the provisions of this Service Plan and only to the extent authorized by and in a manner consistent with this Service Plan. The District is generally located along Sable Avenue between Interstate Highway 25 and Birch Street. The proposed boundaries of the District are limited to those boundaries described in Exhibit A, attached hereto. This Service Plan has been prepared by the following Developer and participating consultants(the"Organizers"): Developer District Counsel Del Camino East Properties, L.L.C. Sander Ingebretsen Miller&Parish a Colorado limited liability company A Professional Corporation Miles R. Grant Dianne D.Miller,Esq. 9116 West Bowles Avenue,Unit 15 700 17th Street, Suite 2200 Littleton, Colorado 80123 Denver,Colorado 80202 (303)979-9858 (303)285-5300 (303)979-9916—facsimile (303)285-5301—facsimile miles@trail-ridge.com dmillerna,ssimlaw.com • Investment Banker Engineer Bathgate Capital Partners Paragon Engineering Greg Fulton - A Professional Corporation 5350 South Roslyn Street, Suite 400 Sylvester Mikosz,P.E. Greenwood Village, Colorado 80111 5575 South Sycamore Street, Suite 103 (720)482-7460 Littleton, Colorado 80120 (303)694-6287—facsimile (303)794-8604 gfulton@bathgatepartners.com (303)795-3072—facsimile svlvester(2Iparagoneng.c om 2 Bond Counsel • BAccountant Becker, Stowe&Bieber, L.L.C. Clifton Gunderson, LLP Donald R. Bieber, Esq. Dawn Jones 1120 Lincoln Street, Suite 1002 6399 South Fiddler's Green Circle, Suite 100 Denver, Colorado 80203 Greenwood Village, Colorado 80111 (303) 830-0101 (303) 779-5710 -. (303) 860-9306—facsimile (303) 779-0348 (fax) dbieber@bsb-law.com dawn.iones@clifioncpa.com Market Consultant The Metro Study Wayde Jester 5300 DTC Parkway, Suite 350 Greenwood Village, Colorado 80111 (720)493-2020 (720)493-9222—facsimile wiester(a)metrostudy.com Pursuant to the requirements of the Special District Control Act, §§ 32-1-201, et seq., C.R.S., this Service Plan consists of a financial analysis and an engineering plan showing how the proposed facilities and services of the District will be provided and financed. As required by § 31-1-202(2), C.R.S., the following items are included in this Service Plan: a. A description of the proposed services; b. A financial plan showing how the proposed services are to be fmanced, including �- all elements required by§ 32-1-202(2)(b), C.R.S.; c. A preliminary engineering or architectural survey showing how the proposed services are to be provided; d. A map of the proposed District's boundaries and an estimate of the population and valuation for assessment of the proposed District; e. A general description of the facilities to be constructed and the standards for construction, including a statement of how the facility and service standards of the proposed 3 District are compatible with facility and service standards of the Town and special districts which are interested parties pursuant to § 32-1-204(1), C.R.S.; f. A general description of the estimated cost of acquiring land, engineering '- services, legal services, administrative services, initial proposed indebtedness and estimated proposed maximum interest rates and discounts and other major expenses related to the organization and initial operation of the District; and g. A description of any arrangement or proposed agreement with any political subdivision for the performance of any services between the proposed District and such other political subdivision and, if applicable, a form of the agreement. II. PURPOSE OF THE PROPOSED DISTRICT The District will finance the construction of public improvements for the Cottonwood Hollow development,which improvements shall be constructed to Town standards, warranted by the District,and dedicated and conveyed to the Town or its designee as provided in this Service Plan, or as otherwise required by the Town. The Town may require that specific landscaping improvements that are dedicated and conveyed to the Town be operated and maintained by a homeowners' association formed for the Cottonwood Hollow development, for the use and benefit of residents,taxpayers and property owners. The public improvements shall be financed, in part,through the issuance of indebtedness as set forth in Article V, "Financial Plan". Except as specified in or pursuant to this Service Plan, the District shall not construct or own any improvements, shall not provide for any maintenance, repair or operation of any improvements, and shall not perform any services without the consent of the Town as evidenced by a resolution of approval of the Town of Firestone Board of Trustees (the `Board of Trustees"). In addition, 4 the District will not contract with any other governmental entity to receive any services which are or may become available from the Town, or to provide any services to or within any other governmental entity without the prior written consent of the Town. The District shall not provide any services or facilities within any area of the District overlapping with the service area of another district without first obtaining the written consent of each and every district whose service area is so overlapped. The District shall dissolve when its financial obligations are paid or provided for, or otherwise upon request of the Town, subject to then-applicable statutory requirements, all as further provided in Article VIII. III. BOUNDARIES,POPULATION& VALUATION The District consists of approximately one hundred forty-six and three one hundredths of one (146.03) acres located entirely within the boundaries of the Town, as more particularly set forth in the legal description attached hereto as Exhibit A and as shown on the boundary map, attached hereto as Exhibit B, and the vicinity map, attached hereto as Exhibit C. The petitioner, also the Developer of the District property, is the sole owner of the property which constitutes the boundaries of the District. A letter from the Developer consenting to the formation of this District is attached hereto as Exhibit D and incorporated herein by this reference. The Cottonwood Hollow subdivision is being developed for the anticipated construction of three hundred fifty-three (353) single-family residences and two hundred thirty (230) multi- family residences by the Developer. The current population of the District is zero. The -- estimated population of the District at full build-out is one thousand six hundred eighteen(1,618) people subject to development approval by the Town. It is acknowledged that Town 5 development standards and requirements may affect the foregoing numbers of anticipated homes and population. The estimated assessed value at full build-out is Ten Million Nine Hundred Fifty-Five Thousand Three Hundred Fifty-Six Dollars ($10,955,356.00). The property is r currently zoned Planned Unit Development, for residential uses. The current assessed value is approximately Twenty-Two Thousand Three Hundred Sixty Dollars ($22,360.00). The total overlapping mill levy imposed upon the property within the proposed District for tax collection year 2003 was approximately ninety-five(95.000)mills. The District shall be required to obtain written approval from the Town of a Service Plan modification prior to any inclusion or exclusion of property to or from the District, or any other change in its boundaries. Any such approval may be granted or denied by resolution of the Board of Trustees, in its discretion. Any inclusion may be on the condition that all property originally in the District remain in the District, and on such other conditions as the Town may impose. Any exclusion may be on the condition that there is no detriment to the remaining residents and taxpayers within the District, or to the District's bondholders, and on such other conditions as the Town may impose. No changes in the boundaries of the District shall be made, unless the prior written approval of the Board of Trustees has been obtained as part of a Service Plan modification, as provided herein. IV. DESCRIPTION OF PROPOSED FACILITIES a. Type of Improvements. The District will provide for the financing, construction, acquisition and installation of public improvements consisting of streets, street lighting, traffic and safety controls, water, landscaping, storm drainage and park and recreation improvements and facilities (as the 6 foregoing terms are used in § 32-1-1004(2), C.R.S. and the sections referenced therein) within the boundaries of the District. The District is also authorized to finance park, recreation or other capital improvements of the Town that are identified by the Town and located outside of the .. District, as provided in Article V.c., below. With the exception of those public improvements specifically identified in Exhibit F and authorized by this Service Plan, specifically including the off-site street improvements to Sable Avenue, the District shall not finance, construct, acquire or install any improvements outside the boundaries of the District unless: (1) the Town, by written determination of its Town Engineer, determines that such improvements are necessary to connect service for the District to the facilities of the Town or other entities involved in providing services to the District; and (2) such proposed improvements are approved in advance by resolution of the Board of Trustees. The property within the District will receive water service from the Town and no other source. The District may finance, design, construct and install Town water system improvements and facilities located within the boundaries of the District. However, all water systems improvements within the District shall be dedicated and conveyed to and owned by the Town upon Town acceptance and completion of the District's warranty obligations. All water rights for water service to the property shall be owned by the Town; the District shall not purchase,own,manage, adjudicate or develop any water rights or water resources. The Organizers of the District have prepared a preliminary engineering report based on the Town's construction standards. The table, attached hereto as Exhibit E, lists all facilities which the District, subject to development approval of the Town, will be authorized to finance, acquire, design, construct, and install, including the costs in current dollars of each,together with an explanation of the methods, basis and/or assumptions used. A letter concerning the reasonableness of the cost estimates, and of the methods, bases and assumptions used, is included in Exhibit E. Subject to the debt limit set forth in Article V of this Service Plan and the requirements of Article V.c., the District will be authorized to fund any combination of the improvements. The combined estimated cost of the improvements is Four Million Three Hundred Eighty-Six Thousand Five Hundred Seventeen Dollars and Sixty-Eight Cents ($4,386,517.68). Funding for improvements not funded by the District shall remain the responsibility of the Developer of the property. The Town is not responsible for assuming any of the costs of the improvements funded by the District or necessary for service to the proposed Cottonwood Hollow development. A map showing the location of the public improvements to be financed by the District is attached hereto as Exhibit F. All water improvements are anticipated to be constructed within street right-of-way, unless otherwise required by the Town. The District shall be authorized to finance, acquire, design, construct and install those types of public improvements and facilities which are authorized under this Article IV and which are generally shown on Exhibit F, subject to the specific final design and approval thereof by the Town. Phasing of construction shall be determined by the District to meet the needs of the residents and taxpayers within its boundaries; provided, however, that improvements shall be installed in compliance with any phasing plan approved for the Cottonwood Hollow development at the request of the Developer. b. Description of Existine Conditions. The area is predominantly undeveloped. c. Anticipated Development The Developer anticipates total build-out to occur by 2010, with the construction of thirty-six (36) single-family residences in 2005, seventy-two (72) single-family residences and 8 twenty-two (22) multi-family residences in 2006, seventy-two (72) single-family residences and eighty-four (84) multi-family residences in 2007, seventy-two (72) single-family residences and eighty-four (84) multi-family residences in 2008, seventy-two (72) single-family residences and forty (40) multi-family residences in 2009 and twenty-nine (29) single-family residences in 2010, subject to final design and development approval by the Town. It is acknowledged by the Developer that Town development standards and requirements may affect the foregoing numbers of anticipated homes and the foregoing anticipated build-out schedule. d. Public Improvement Schedule. Construction of the public improvements will commence as soon as possible following approval of the Service Plan. The public improvements will be phased to meet the development schedule, and shall be installed in compliance with any phasing plan approved by the Town for the Cottonwood Hollow development. e. Town Construction Standards. All proposed facilities and improvements shall be designed and constructed in accordance with the standards and specifications established by the Town and in effect from time to time, and with applicable standards and specifications of the federal government and State of Colorado. All proposed facilities and improvements shall be compatible with those of the Town. The District and its engineer have designed and shall design the facilities and improvements to meet such standards, specifications and compatibility requirements of the Town. The District will obtain approval of civil engineering plans and permits for construction and installation of facilities improvements from the Town prior to the construction or installation of any facilities or improvements. In addition, any water facilities proposed to be financed by the District and dedicated to the Central Weld County Water District shall be designed by the Central Weld 9 County Water District, in accordance with the design standards of that District and the Town. The District shall be subject to all applicable provisions of the Firestone Municipal Code and to all Town rules, regulations and policies with respect to the conduct of its work on the improvements, as in effect from time to time. .. • f. Limitation on Eminent Domain. The District shall not exercise any power of dominant eminent domain against the Town and shall not exercise any power of eminent domain without the prior written consent of the Town. No exercise of eminent domain by the District is contemplated or authorized in this Service Plan, and any proposed use thereof shall be considered a material modification of this Service Plan,and shall be subject to the Town's prior written approval. - g. Dedication of Improvements to the Town. Except as specifically set forth within Article IV.h. of this Service Plan, the District shall dedicate and convey to the Town or its designee, or cause to be dedicated and conveyed to the Town or its designee, all public improvements and facilities, including, but not necessarily limited to, all streets, street lighting, traffic safety controls, water, landscaping, storm drainage and park and recreation improvements and facilities, as well as all rights-of-way, fee interests and easements necessary for access to and operation and maintenance of such improvements and facilities, to the extent such property interests have not been acquired by the Town through the land use approval process. The District shall not operate or maintain any public improvements, except as necessary to comply with its warranty obligations hereunder. The District shall also dedicate and convey to the Town or its designee any other facilities and improvements contemplated in this Service Plan, together with necessary rights-of-way, fee interests and easements. All such improvements, facilities, easements and rights-of-way shall be conveyed to 10 the Town or its designee immediately upon completion of construction, installation and expiration of the two (2) year warranty period that commences after the Town has issued a Conditional Acceptance as set forth below. All improvements, facilities, rights-of-way, fee interests and easements shall be conveyed and dedicated to the Town or its designee by .. instruments acceptable to the Town, free and clear of all liens and encumbrances, except those which are acceptable to the Town it its sole discretion. Failure to comply with the requirements of this Article IV shall be deemed to be an unauthorized material modification of this Service Plan. Once a public improvement to be dedicated to the Town is constructed and installed, the Town shall issue an "Conditional Acceptance" letter stating that the improvement has been constructed or installed in conformance with the Town's standards, or shall issue a letter stating the corrections necessary to bring the improvement into compliance with Town standards for the issuance of such a "Conditional Acceptance" letter. The District at its expense shall promptly undertake any necessary corrections. Upon issuance of the "Conditional Acceptance" letter, the public improvements shall be warranted for two (2) years from the date of such "Conditional Acceptance", during which time the District shall maintain the improvements and correct all deficiencies therein as directed by the Town. At the conclusion of such two (2) year period, the Town shall issue a "Final Acceptance" letter if the public improvements conform to the Town's specifications and standards, or shall issue a letter stating the correction necessary to bring the improvement into compliance with Town standards for the issuance of such a "Final Acceptance" letter. The District at its expense shall promptly undertake any necessary corrections. A "Final Acceptance closing" shall then be arranged and held (such closing in no event to occur more than one hundred twenty (120) days after the issuance of the "Final Acceptance" letter), at which time 11 the Town will issue a"Final Acceptance" for all public improvements to be accepted by it, and the District will execute and deliver to the Town all necessary instruments to dedicate and convey to the Town the improvements and facilities, and all necessary rights-of-way, fee interests and easements. h. Ownership and Operation of Facilities by the District. The District shall not be authorized to own or operate any improvements or facilities to be provided pursuant to this Service Plan, other than as necessary to permit the financing and construction thereof (including compliance by the District with its warranty obligations as provided in Article IV.g., above), except through approval by the Town by resolution or through an amendment to this Service Plan. Nothing herein shall limit the Town's authority to require that improvements and facilities be operated or maintained by a homeowners' association formed for the Cottonwood Hollow development. i. Acquisition of Land for Public Improvements. The District shall acquire at no cost to the Town all lands or interests in land required by the Town for construction of streets, street lighting, traffic and safety controls, water, landscaping, storm drainage and park and recreation improvements being constructed or installed by the District. Such land or interests in land may be acquired by the District by instruments of conveyance and/or plat dedication, in form and substance acceptable to the Town. All land and interests in land shall be conveyed to the Town or its designee at no cost to the Town at such times and by such instruments of conveyance as the Town may reasonably require (but in no event shall such conveyances be made later than the "Final Acceptance closing" described in Article IV.g, above), free and clear of all liens and encumbrances, except those which are acceptable to the Town. Exceptions must be approved by the Town in advance and in writing. 12 Failure to comply with this provision shall be deemed to be an unauthorized material modification of this Service Plan. j. Services to be Provided by other Governmental Entities. The District proposes to finance, construct, acquire and install the public improvements necessary to serve the District's residents and taxpayers, but is not authorized to and shall not provide any ongoing services within the District. The District shall receive fire protection and emergency services from the Frederick-Firestone Fire Protection District, either directly or, with respect to emergency services, through contract with the Tri-Area Ambulance District. The District shall receive sanitary sewer service from the St. Vrain Sanitation District. The District shall not provide any sanitary sewer services. The District shall obtain a resolution from the Carbon Valley Park and Recreation District consenting to the overlapping boundaries for financing purposes only. The District shall not provide ongoing park and recreation services to the District. The District shall obtain a resolution from the Central Weld County Water District consenting to the overlapping boundaries for financing purposes only. The District shall not provide ongoing water services to the District. Nothing herein shall limit or discharge the District's responsibilities for operation, maintenance and repair of public improvements prior to their acceptance by the Town and conveyance to the Town or its designee, or limit or discharge the District's warranty obligations. ^- k Intention. All facilities and improvements shall be constructed so as to be integrated with existing and planned facilities and improvements of the Town and other entities providing service to the Cottonwood Hollow development. The District shall obtain from such other serving entities approval of the proposed plans for the facilities and improvements. The District shall provide 13 the Town with copies of any submittals to such entities at the time of their submittal, and with copies of any approvals from such entities upon receipt. .. V. FINANCIAL PLAN This Article V describes the nature, basis, method of funding and debt and mill levy limitations and other financial requirements and restrictions for the District's public improvements program and operations. Together with the Financial Plan attached hereto as Exhibit G and further described below, this Article V constitutes the financial plan for the District as required by § 32-1- — 202(2)(b), C.R.S. A detailed Financial Plan, consisting of the Accountant's Forecasted Cash Surplus Balances and Cash Receipts and Disbursements (including a Summary of Significant Forecast Assumptions), the Market Projection Consultant's Analysis and the Developer's Letter in Support of the Market Projections are contained in Exhibit G, attached hereto and incorporated herein. The Financial Plan includes estimated operations and administration costs (including estimated costs of warranty maintenance), proposed indebtedness and estimated interest rates and discounts and other major expenses related to the organization and operation of the District. The Financial Plan projects the issuance of the debt and the anticipated repayment based on the development assumptions (including the market projections and absorption forecasts set forth therein) for property within the boundaries of the District. The Financial Plan demonstrates that, at - the projected level of development, and with the projected Developer support, the proposed District has the ability to finance the facilities identified herein, and will be capable of discharging the proposed indebtedness on a reasonable basis. a. General The provision of improvements and facilities by the proposed District will be financed 14 through the issuance of general obligation bonds (the `Bonds"), secured by the ad valorem taxing authority of the proposed District and other District revenues, limited as discussed below. The Financing Plan anticipates the issuance of two (2) series of Bonds in 2005 and 2007. The term of any Bonds issued by the District shall not exceed thirty (30) years. The combined total estimated cost of the improvements is Four Million Three Hundred Eighty-Six Thousand Five Hundred Seventeen Dollars and Sixty-Eight Cents ($4,386,517.68). The District has the capacity to issue general obligation bonds in the aggregate principal amount of approximately Five Million Seven Hundred Twenty-Five Thousand Dollars ($5,725,000.00), projected to yield net bond proceeds of Four Million Three Hundred Two Thousand Eight Hundred Thirteen Dollars ($4,302,813.00) (which will be further reduced by the District's contribution of Nine Hundred Eighty-Nine Thousand Six Hundred Forty-Seven Dollars($989,647.00)to the Town as provided in Article V.c., below). Accordingly, it is currently anticipated that the bond proceeds will be insufficient to allow for repayment of One Million Seventy-Three Thousand Three Hundred Fifty-One Dollars and Sixty-Eight Cents ($1,073,351.68), which will be contributed by the Developer; however, if the financing capability of the District changes and will permit repayment in the future (due to higher than anticipated assessment values, lower interest rates or any other circumstance),the District may agree to repay the Developer for=reimbursed public infrastructure costs so long as the District has the capacity to make such payments without exceeding the debt limit or Mill Levy Limit provided in this Service Plan and subject to all other requirements of Article V.h.,below. Payments made to the Developer by the District are expected to be made principally from Bond proceeds and shall not exceed the amount advanced for capital costs by the Developer. The Accountant's Forecasted Cash Surplus Balance and Cash Receipts and Disbursements in Exhibit G do not include the above-described Developer contribution to the costs of public improvements. 15 b. Debt Issuance. The District intends to issue two (2) series of general obligation bonds in the aggregate principal amount of approximately Five Million Seven Hundred Twenty-Five Thousand Dollars ($5,725,000.00). The aggregate principal amount of all general obligation bonds and all other forms of borrowing by the District, throughout the District's existence and regardless of subsequent payments and discharges, shall be limited to a total of Six Million Two Hundred Ninety-Seven Thousand Five Hundred Dollars ($6,297,500.00) (the "debt limit"); except to the extent otherwise provided in Article V.g. with respect to refunding bonds and in Article V.h. with respect to construction financing notes (i.e., notes or other financial obligations, if any, issued by the District to the Developer to evidence the District's obligation to repay the Developer's advances for construction costs). The first series of general obligation bonds will be issued in the approximate amount of Two Million Five Hundred Thousand Dollars ($2,500,000.00), at such time as thirty-six (36) homes (representing, together with undeveloped land in the District, a total of approximately Four Million Six Hundred Seventy-Five Thousand Sixty-Three Dollars ($4,675,063.00) in assessed valuation) have received building permits and all public improvements serving such homes have been completed and accepted by the Town ("Development Threshold I"), all of which is anticipated to occur in December 2005 as shown in Exhibit G. The Developer expects that sales of such first series of general obligation bonds (to financial institutions or institutional investors as further provided below) would be made on the basis that, builder activity having commenced within the District (as demonstrated by the development levels required by the immediately preceding sentence), there is a reasonable likelihood that projected future development will occur and will result in increased assessed valuation levels to support payment of such bonds. The second series of general obligation bonds will be issued in the approximate 16 .. amount of Three Million Two Hundred Twenty-Five Thousand Dollars ($3,225,000.00), at such time as certificates of occupancy have been issued for one hundred thirty (130) residential units and one hundred fifty-six (156) remaining residential units have received building permits (representing,together with the one hundred thirty(130) units which have received certificates of occupancy and together with undeveloped land in the District, a total of approximately Seven Million Seven Hundred Forty-Eight Thousand Seven Hundred Five Dollars ($7,748,705.00) in assessed valuation), and all public improvements serving such residential development have been completed and accepted by the Town ("Development Threshold II"), all of which is anticipated to occur in December 2007. c. Required Transfers of Bond Proceeds to Town. The District will pay to the Town for deposit into the Town's capital improvements fund a total of Nine Hundred Eighty-Nine Thousand Six Hundred Forty-Seven Dollars ($989,647.00) of the District's total net bond proceeds, forty-five percent (45%) of which shall be paid to the Town upon the issuance and delivery of the first series of Bonds, which is anticipated to occur in 2005, and fifty-five percent (55%) of which shall be paid to the Town upon the issuance and delivery of the second series of Bonds, which is anticipated to occur in 2007 (the "Town contribution"). Pursuant to an agreement to be executed between the Town and the District, the funds so paid to the Town shall be used by the Town to finance improvements (whether inside or outside the boundaries of the District) that the Town and the District would otherwise be empowered to construct, and for which the District is authorized to incur indebtedness (i.e., streets, street lighting, traffic safety controls, water, landscaping, storm drainage or park and recreation improvements and facilities),which improvements shall be of benefit to the Town and the District and shall be specifically identified in an amendment to the intergovernmental .. 17 agreement between the Town and the District, which amendment shall be fully executed prior to the issuance of any District bonds. The Developer of the District acknowledges that the foregoing provisions for allocation of bond proceeds to the Town's capital improvements fund for capital improvements are material considerations in, and conditions of, the Town's approval of this Service Plan, and the Town has relied thereon in approving this Service Plan. The District shall not issue bonds without including in such issuance the concurrent allocation and delivery to the Town of the funds required by this Article V.c., and such delivery of funds to the Town shall be a condition of closing for the Bonds. Further, the District shall not be authorized to incur any financial obligations of any kind or perform any other functions authorized under this Service Plan until the governing body of the District, upon formation thereof, has executed: (1) the intergovernmental agreement provided for in Article XIII and Exhibit N, with such amendments as the parties may mutually agree, stating its agreement to comply with the provisions of this Article V.c.; and(2)the District indemnity letter provided for in Part II of Exhibit K. d. Other Financial Restrictions.Limitations and Requirements. The District shall request voter authorization for such amount of general obligation debt as the District deems sufficient to allow for allocation of the amounts deposited in the Town's capital improvements fund (as described in Article V.c., above) among the District's powers, unforeseen contingencies, increases in construction costs due to inflation and all costs of issuance, including capitalized interest, reserve funds, discounts, legal fees and other incidental costs of issuance; provided, however, that the amount of general obligation debt (together with construction financing notes) actually issued by the District shall not exceed the debt limitation of Six Million Two Hundred Ninety-Seven Thousand Five Hundred Dollars ($6,297,500.00) as 18 stated in Article V.b., above. All bonds of the District will be sold for cash. The authorized maximum voted interest rate is fifteen percent (15%) per annum and the maximum underwriting discount is four percent (4%) of bond principal. The actual interest rates and discounts, within such maximum amounts, will be determined at the time the bonds are sold by the District and will reflect market conditions at the time of sale; provided, however, that the actual interest rate shall not exceed three hundred (300) basis points above the thirty (30) year 'AAA' Municipal Market Data rate in effect at the time the bonds are sold. Estimated interest rates used in Exhibit G are based on information furnished by the underwriters identified in Exhibit H. In the event bonds are issued at an interest rate higher than the estimated rates used in Exhibit G, the principal amount of bonds will be reduced so as to result in total debt service payments approximately equal to those projected in Exhibit G, and so that debt service on the bonds can be paid from the revenue sources contemplated in this Service Plan. If actual increases in District assessed valuation are less than the projected increases as shown in the Exhibit G forecasts, it is expected that the District would compensate by increasing its mill levy (subject to the Limited Mill Levy) or reducing the principal amount of the bonds issued. The Developer acknowledges and accepts the risk that, if all or a part of the general obligation bonds proposed to be issued by the District are not issued, because of changes in financial conditions or for any other reason, the Developer may not be paid or reimbursed for the cost of public improvements or other advances to the District. No bonds issued by the District shall provide for acceleration as a remedy upon default, unless the District has received the prior written administrative approval of the Town, which approval may be granted only by the Town Administrator or the Board of Trustees. Except as 19 provided below, with respect to notes issued to the Developer for construction financing, this Service Plan authorizes only the issuance of general obligation bonds and only within the above stated limits, and subject to the provisions as to the Limited Mill Levy as set forth below. The District may be authorized to issue revenue bonds, certificates, debentures or other evidences of indebtedness or to enter into lease-purchase transactions, only upon approval of an amendment to this Service Plan, and such an amendment shall be considered a material modification of the Service Plan. The District is not authorized to impose any development fees or user charges as part of this Service Plan. The District is not authorized to impose any taxes other than ad valorem property taxes as provided in this Service Plan. The District may be authorized to impose such fees, user charges or taxes only upon the prior written approval of the Board of Trustees. All bonds of the District shall be structured utilizing a commercial bank with trust powers as trustee to hold the bond proceeds and debt service funds and to pursue remedies on behalf of the bondholders. Any bonds issued by the District pursuant to this Service Plan shall be in compliance with all applicable legal requirements, including without limitation § 32-1-1101(6), C.R.S., and article 59 of title 11, C.R.S., and shall be approved by nationally recognized bond counsel. An opinion shall also be obtained from bond counsel or counsel to the District that the bonds comply with all requirements of this Service Plan. e. Limited Mill Levy. "Limited Mill Levy" shall mean an ad valorem mill levy (a mill being equal to 1/10 of 10) imposed upon all taxable property in the District each year in an amount sufficient to pay the principal of, premium if any, and interest on the bonds as the same become due and payable, and 20 to make up any deficiencies in any debt service reserve for the bonds, but, together with all other District debt service mill levies, such mill levy shall not exceed fifty (50.000) mills for debt service purposes; provided however, that in the event of changes in the ratio of actual valuation to assessed valuation for residential real property, pursuant to Article X, section 3(1)(b) of the Colorado Constitution and legislation implementing such constitutional provision (which changes shall be determined in relation to 2004 as the base year), the fifty (50.000) debt service mill levy limitation provided herein will be increased or decreased (as to all taxable property in the District) to reflect such changes so that, to the extent possible, the actual tax revenues generated by the mill levy, as adjusted, are neither diminished nor enhanced as a result of such changes ("Gallagher adjustment"). The Limited Mill Levy shall be an enforceable limit on all District mill levies for debt service purposes. In addition to the Limited Mill Levy applicable to all District debt service mill levies, the total District mill levy for administration, warranty maintenance and other operating expenses shall be limited to six(6.000)mills, as adjusted by the Gallagher adjustment. f. Investor Suitability. Except as provided below in this Article V.f. as to rated bonds, the District's bonds shall be issued only to financial institutions or institutional investors within the meaning of § 32-1- - I101(6)(a)(IV), § 32-1-103(6.5) and § 11-59-103(8), C.R.S. The District shall provide for and shall utilize mechanisms and procedures for transfers and exchanges of bonds which are reasonably designed to insure continuing compliance with such limitation of sales to institutional investors. If the District's bonds are rated in one of the four highest investment grade rating categories by one or more nationally recognized organizations which regularly rate such obligations, compliance with the institutional investor limitation set forth above shall not be required. 21 g. Refunding bonds. General obligation refunding bonds may be issued by the District to defease original issue bonds in compliance with applicable law, but any such refunding shall not extend the maturity of the bonds being refunded nor increase the total debt service thereon and shall meet the requirements of§ 32-1-1101(6)(a), C.R.S. Refunding bonds shall not be subject to the debt limit stated in Article V.b., above, provided that such refunding bonds demonstrate net present '— value debt service savings; but if such refunding bonds do not demonstrate net present value debt service savings, any increase in principal amount of the refunding bonds over the principal amount of bonds being refunded shall be subject to such debt limit. Any issuance of refunding bonds must comply with Article V.f., above ("Investor Suitability"). Except to the extent expressly provided in this Article V.g., all limitations, restrictions and requirements of this Service Plan with respect to general obligation bonds of the District shall be applicable to refunding bonds, including, without limitation, Limited Mill Levy, debt limit, maximum interest rate, maximum discount, maximum term, prohibition on acceleration, bank trustee requirement and opinion requirements. h. Construction Financing Notes Issued to Developer. The District may issue construction financing notes to the Developer to evidence the District's obligation to reimburse the Developer's advances for construction costs; any Developer advances which are not so reimbursed shall be treated as Developer contributions as described in Article V.a., above. Such notes shall be subject to the following restrictions set forth above for general obligation bonds: Limited Mill Levy, debt limitation, maximum term, prohibition on acceleration, and opinion as to Service Plan compliance; but such notes shall not be subject to the above-stated bank trustee requirement, minimum denomination, or bond 22 counsel opinion requirements. Such notes shall not be general obligations of the District, shall bear no interest(see Exhibit G), shall be issued only to the Developer(and therefore shall be not be subject to any underwriting discount), and shall not be transferred, assigned, participated or used as security for any borrowing. The Developer hereby represents that it is an accredited investor, as that term is defined under §§ 3(b) and (4)(2) of the federal "Securities Act of 1933" by regulation adopted thereunder by the Securities and Exchange Commission, and the '— Developer agrees that it will also be such an accredited investor if and when it acquires such notes. The repayment of construction financing notes from proceeds of an equal or lesser principal amount of the District's bonds shall not be treated as an increase in the principal — amount of District debt for purposes of the debt limit under this Service Plan. Such notes shall be paid from proceeds of the District's general obligation bonds (when and if received by the District, and subject to prior payment of amounts payable to the Town as provided in Article V.c., above); otherwise the notes will be unsecured obligations of the District. To the extent that any of such notes are outstanding when the District's general obligation bonds are also outstanding, payments on the notes may be made only if such payments do not adversely affect the District's ability to pay its general obligation bonds. The Developer solely assumes the risk of nonpayment or other default on such notes, including, without limitation, delay, inability or failure of the District to sell or issue its general obligation bonds. i. Identification of District Revenue. The District will impose a mill levy on all taxable property in the District as the primary source of revenue for repayment of debt service and for operations and administration. The mill levy imposed by the District for debt service purposes shall not exceed fifty (50.000) mills, and the mill levy for administration, warranty maintenance and other operating expenses shall not exceed six (6.000) mills, except for Gallagher adjustments permitted under Article V.e., above. 23 Although the mill levy imposed may vary depending on the phasing of facilities anticipated to be funded, it is estimated that a mill levy of approximately forty-five and nine hundred seventy-nine one thousandths (45.979) mills will produce revenue sufficient to support debt service and administration, warranty maintenance and other operating expenses throughout the repayment period. No fees or user charges shall be imposed by the District. j. Security for Debt. The District will not pledge any Town funds or assets for security for the indebtedness set forth in the Financing Plan of the District. k. Services of District. The District will require sufficient operating funds to plan and cause the public improvements to be constructed. The costs are expected to include: organizational costs, legal, engineering, accounting and debt issuance costs, compliance with warranty obligations, compliance with state reporting and other administrative requirements. The first year's operating budget (for 2004) is estimated to be Fifty Thousand Dollars ($50,000.00) and the second year's operation budget (for 2005) is estimated to be Fifty Thousand Dollars ($50,000.00). The operating budget amounts shown in Exhibit G are expected to be sufficient to enable the District to comply with its warranty obligations as described in Article IV.g., above. Until the District receives sufficient revenue from ad valorem taxes and other District sources, funds for District organizational costs, operation and administration will be contributed by the Developer. 1. Quinquennial Review. Pursuant to § 32-1-1101.5, C.R.S., the District shall submit application for a quinquennial finding of reasonable diligence in every fifth (5th) calendar year after the calendar year in which the District's ballot issue to incur general obligation indebtedness is approved by its electorate. Upon such application, the Board of Trustees may accept such application or hold a public 24 hearing thereon and take such actions as are permitted by law. The District shall be responsible for payment of the Town consultant and administrative costs associated with such review, and the Town may require a deposit of the estimated costs thereof. The Town shall have all powers concerning the quinquennial review as provided by statutes in effect from time to time. m. Letters. There is attached hereto as Exhibit H an underwriter's letter stating its intention to underwrite the District's financial obligations as proposed in this Financing Plan. There is attached hereto as Exhibit I a letter from legal counsel for the District stating that the petition for organization of the District, this Service Plan, notice and hearing procedures in connection therewith, and provisions thereof (including without limitation provisions as to the District's bonds, fees and revenue sources) meet the requirements of titles 11 and 32, C.R.S., and other applicable law. There is attached hereto as Exhibit J a letter from bond counsel for the District: (i) stating that provisions for payments of bond proceeds to the Town for deposit into the Town's capital improvements funds are authorized and permissible under currently applicable laws, and that the District is authorized by currently applicable laws to undertake such borrowing and make such payments of bond proceeds to the Town; and (ii) describing any significant legal or tax requirements or restrictions that the Town will be expected to comply with in connection with such payments. VI. LANDOWNERS'OBLIGATIONS AS TO PUBLIC IMPROVEMENTS The creation of the District shall not relieve the Developer, the landowner or any subdivider of property within the District, or any of their respective successors or assigns, of obligations to construct public improvements for the Cottonwood Hollow development, of the obligation to enter into a subdivision improvements agreement regarding such improvements, or 25 of obligations to provide to the Town letters of credit as required by the Town to ensure the completion of such public improvements, or of any other obligations to the Town under Town ordinances, rules, regulations or policies, or under other agreements affecting the property within the District or the Cottonwood Hollow development, or any other agreement between the Town and the Developer(or any such landowner, subdivider or successors or assigns). VII. ANNUAL REPORT The District shall be responsible for submitting an annual report to the Town within one hundred twenty (120) days from the conclusion of the District's fiscal year. Failure of the District to submit such report shall not constitute a material modification hereof, unless the District refuses to submit such report within thirty (30) days after a written request from the Town to do so. The District's fiscal year shall end on December 31St of each year. The content of the annual report shall include information as to the following matters which occurred during the year: a. Boundary changes made or proposed; b. Intergovernmental Agreements entered into or proposed; c. Changes or proposed changes in the District's policies; d. Changes or proposed changes in the District's operations; e. Any changes in the financial status of the District including any issuance of financial obligations or any change in revenue projections or operating costs; f. A summary of any litigation and notices of claim involving the District; g. Proposed plans for the year immediately following the year summarized in the annual report; 26 h. Status of construction of public improvements; i. The current assessed valuation in the District; and j. A schedule of all taxes imposed and tax or other revenues received in the report year, and proposed taxes to be imposed, and identified revenues to be received in the following year and the revenues raised or proposed to be raised therefrom. The foregoing list shall not be construed to excuse the requirement for prior written Town approval of those matters that are considered material modifications of this Service Plan or for any other required Town approval. The annual report shall be signed by the President and attested by the Secretary of the District. Along with the annual report, and at any more frequent intervals as reasonably requested by the Town, the District shall provide to the Town a currently dated and written certificate, signed by the President and Secretary of the District, certifying that the District is in full compliance with this Service Plan. If the District is not in full compliance with this Service Plan, the certificate shall include a detailed statement describing such noncompliance, and the District shall cooperate fully with the Town in providing further information as to, and promptly remedying, any such noncompliance. The Town reserves the right, pursuant to § 32-1-207(3)(c), C.R.S., to request reports from the District beyond the mandatory statutory five (5) year reporting report. In addition to the foregoing, the District shall cooperate with the Town by providing prompt responses to all reasonable requests by the Town for information, and the District shall permit the Town to inspect all public improvements and facilities and all books and records of the District. • 27 VIII. DISSOLUTION Promptly when all of the general obligation bonds to be issued by the District have been paid (or when provision for payment thereof has been made through establishment of an escrow as provided by § 32-1-702(3)(b), C.R.S.), the District will so notify the Town and will cooperate fully with the Town in taking all steps necessary under then applicable law to dissolve the District (including, without limitation: formulating a plan of dissolution; executing the District's consent to dissolve pursuant to § 32-1-704(3)(b), C.R.S.; making any necessary agreements as to continuation or transfer of warranty maintenance and other services, if any, which are then being provided by the District; submitting a petition for dissolution to the District Court; and, conducting any required dissolution election). In addition, at any time after the District has issued all of its general obligation bonds (excluding refunding bonds) as contemplated by the Financial Plan, upon the Town's request, the District will cooperate fully with the Town to dissolve the District pursuant to a plan for dissolution stating that there are outstanding financial obligations and providing that the District will continue in existence (with the Town Board of Trustees serving as the District Board of �- Directors if the Town so elects) to such extent as is necessary to adequately provide for the payment of such financial obligations, as provided in §§ 32-1-702(3)(c) and 32-1-707(2)(c), C.R.S. To the extent that any financial obligations are owned by the Developer, the Developer shall cooperate fully with the Town to dissolve the District. Also, on or after December 31, 2008, if the District has not issued any of its general obligation bonds, the Town shall have the right to require the District to dissolve in accordance with applicable law, and the District will cooperate fully with the Town to dissolve the District. 28 To the maximum extent permitted by law, the above-stated agreements to cooperate in dissolution of the District shall be binding on the undersigned Developer and other landowners signing the Consent contained in Exhibit D to this Service Plan(together constituting the owners of one hundred percent (100%) of the land in the District) and shall also be binding on their successors in title to any and all land in the District (including the nominees for the initial Board of Directors set forth in Article X hereof and succeeding directors who own land within the .. District); and such agreements shall obligate all such persons to cooperate fully with the Town as described above, including without limitation, the signing of petitions, execution of consents, and voting in favor of dissolution in any required election. IX. CONSOLIDATION The District shall not file a request with the District Court to consolidate with another district without the prior written approval of the Board of Trustees. X. ELECTIONS Following approval of this Service Plan by the Town, and after acceptance of the organizational petition and issuance of orders from the District Court, elections on the questions of organizing the District and approving bonded indebtedness and various agreements described herein, including the intergovernmental agreement between the Town and the District contemplated in Article XIII and Exhibit N hereof, will be scheduled. All elections will be conducted as provided in the court orders, the Uniform Election Code of 1992 (as amended by House Bill 93-1255 and as otherwise amended from time to time), and Article X §20 of the Colorado Constitution (the "TABOR Amendment"), and are currently planned for November 2, 29 2004, but may be held on any legally permitted date. The election questions are expected to include whether to organize the District, election of initial directors, and TABOR Amendment ballot issues and questions. Thus, the initial ballot may deal with the following topics (in several questions,but not necessarily using the exact divisions shown here): — a. Whether to organize the District, b. Membership and terms of the initial board members, c. Approval of new taxes, d. Approval of maximum operational mill levies, e. Approval of bond and other indebtedness limits, f. Approval of an initial property tax revenue limit, g. Approval of an initial total revenue limit, h. Approval of an initial fiscal year spending limit, and i. Approval of a four(4) year delay in voting on ballot issues. Ballot issues may be consolidated as approved in court orders. The petitioners intend to follow both the letter and the spirit of the Special District Act, the Uniform Election Code and the TABOR Amendment during organization of the District. Future elections to comply with the TABOR Amendment may be held as determined by the elected Board of Directors of the District. The following persons, who are or will be owners of property within the District, are anticipated to be nominated for the initial board of directors of the District: Miles R. Grant Doug Scott 20906 Horse Bit Way 1705 Viewpoint Road Morrison, Colorado 80465 Boulder, Colorado (303)979-9858 (303) 944-1784 30 Russ Watterson Laura Lambert 13821 Gaylord Street 3820 Ridgeway Land Brighton, Colorado 80602 Colorado Springs, Colorado 80908 (303) 452-1203 (719)495-7942 Rusty Green 191 University Boulevard Denver, Colorado 80206 (303) 777-2322 XI. INDEMNITIES The fully executed Del Camino East Properties, L.L.C. Indemnity Letter attached hereto as Part I of Exhibit K is submitted by the Developer to the Town as part of this Service Plan. The form of the District Indemnity Letter attached hereto as Part H of Exhibit K shall be executed by the District and delivered to the Town immediately upon formation of the District. The District shall not incur any financial obligations of any kind or otherwise perform any functions authorized under this Service Plan until the District Indemnity Letter has been duly executed by the District and delivered to the Town. The execution of such Indemnity Letters are material considerations in the Town's approval of this Service Plan, and the Town has relied thereon in approving this Plan. XII. DISCLOSURE AND DISCLAIMER; NO THIRD-PARTY RIGHTS The District will also record a statement against the property within the District which will include notice of the existence of the District, anticipated mill levy and maximum allowed mill levy. The form of the notice is attached hereto and incorporated herein as Exhibit L, subject to any changes requested by the Town in the future. In addition, there is attached hereto as Exhibit M a form of the Town's disclaimer statement. The District shall conspicuously 31 include this disclaimer statement, or any modified or substitute statement hereafter furnished by the Town, in all offering materials used in connection with any bonds or other financial obligations of the District (or, if no offering materials are used, the District shall deliver the disclaimer statement to any prospective purchaser of such bonds or financial obligations). No changes shall be made to the disclosure and the disclaimer set forth in Exhibits L and M, respectively, except as directed by the Town. Neither this Service Plan, the intergovernmental agreement to be entered into between the Town and the District as described in Article XIII below, nor any other related agreements shall be construed to impose upon the Town any duties to or confer any rights against the Town upon, any bondholders, investors, lenders or other third parties. - XIII. INTERGOVERNMENTAL AGREEMENTS The District shall enter into an intergovernmental agreement with the Town which shall be in substantially the form set forth in Exhibit N. The District shall execute and deliver the intergovernmental agreement to the Town immediately upon formation of the District. The District shall not incur any financial obligations of any kind or otherwise perform any functions authorized under this Service Plan until the intergovernmental agreement has been executed and delivered to the Town. The execution of such Agreement is a material consideration in the Town's approval of this Service Plan, and the Town has relied thereon in approving this Plan. No other intergovernmental agreements are proposed at this time. Any intergovernmental agreements proposed regarding the subject matter of this Service Plan shall be subject to review and approval by the Board of Trustees prior to their execution by the District. Failure of the District to obtain such approval shall constitute a material modification of this Service Plan. 32 XIV. CONSERVATION TRUST FUND The District shall not apply for or claim any entitlement to funds from the Conservation Trust Fund which is derived from lottery proceeds, or other funds available from or through governmental or nonprofit entities for which the Town is eligible to apply. The District shall remit to the Town any and all conservation trust funds which it receives. XV. MODIFICATION OF SERVICE PLAN The District shall obtain the prior written approval of the Town before making any material modifications to this Service Plan. Material modifications require a Service Plan amendment and include modifications of a basic or essential nature, including,but not limited to,- the following: 1. Any change in the stated purposes of the District or additions to the types of — facilities, improvements or programs provided by the District; 2. Any issuance by the District of financial obligations not expressly authorized by this Service Plan, or under circumstances inconsistent with the District's financial ability to discharge such obligations as shown in the build out, assessed valuation and other forecasts contained in Exhibit G, or any change in debt limit, change in revenue type (including, without limitation, the imposition of any tax other than ad valorem property tax as provided in this Service Plan) or change in maximum mill levy (except for any necessary Gallagher adjustment as provided in Article V.e., above); 3. Any change in the types of improvements or change of more than fifteen percent (15%) in the estimated costs of improvements from what is stated in Exhibit E of this Service Plan; 33 4. Failure by the District to comply with the requirements of Article V.c. of this Service Plan or Section 6 of the intergovernmental agreement (the form of which is attached hereto as Exhibit N)concerning transfer of bond proceeds to the Town; 5. Failure by the District to enter into the intergovernmental agreement (the form of which is attached hereto as Exhibit N) or failure to execute and deliver the District indemnity letter (the form of which is attached hereto as Exhibit K, Part II) immediately upon the District's formation as provided in Articles XIII and XI, respectively, of this Service Plan; 6. Failure to comply with the requirements of this Service Plan concerning the dedication of improvements or the acquisition and conveyance of lands or interests in land; 7. The failure of the District to develop any capital facility proposed in its Service Plan when necessary to service approved development within the District; 8. Any proposed use of the powers set forth in §§ 32-1-1101(1)(1) and —1101(1.5), C.R.S.,respecting division of the District; 9. The occurrence of any event or condition which is defined under the Service Plan or intergovernmental agreement as necessitating a service plan amendment; 10. The default by the District under any intergovernmental agreement; 11. Any of the events or conditions enumerated in § 32-1-207(2), C.R.S., of the Special District Act;or 12. Any action or proposed action by the District which would interfere with or delay the planned dissolution of the District as provided in Article VIII hereof (The examples above are only examples and are not an exclusive list of all actions which may be identified as a material modification.) 34 The District will pay all reasonable expenses of the Town, its attorneys and consultants, as well as the Town's reasonable processing fees, in connection with any request by the District for modification of this Service Plan or administrative approval by the Town of any request hereunder. The Town may require a deposit of such estimated costs. XVI. FAILURE TO COMPLY WITH SERVICE PLAN '— In the event it is determined that the District has undertaken any act or omission which - violates the Service Plan or constitutes a material departure from the Service Plan (including, without limitation, any material modification of the Service Plan as described in Article XV which is not duly authorized by the Town), the Town may utilize the remedies set forth in the statutes to seek to enjoin the actions of the District, or may withhold issuance of any permit, authorization, acceptance or other administrative approval for the Cottonwood Hollow development, or may pursue any other remedy available at law or in equity, including affirmative injunctive relief to require the District to act in accordance with the provisions of this Service Plan. The District shall pay any and all costs, including attorneys' fees, incurred by the Town in enforcing any provision of the Service Plan. To the extent permitted by law, the District hereby waives the provisions of§ 32- 1-207(3)(b),C.R.S.,and agrees it will not rely on such provisions as a bar to the enforcement by the Town of any provisions of this Service Plan. XVII. RESOLUTION OF APPROVAL The Developer and other proponents of the proposed District agree to and shall incorporate the Board of Trustee's Resolution of Approval, including any conditions on such 35 approval, into the Service Plan presented to the appropriate district court. Such resolution shall be attached as Exhibit 0. XVIII.SEVERABILITY .. If any portion of this Service Plan is held invalid or unenforceable for any reason by a court of competent jurisdiction, such portion shall be deemed severable and its invalidity or its unenforceability shall not cause the entire Service Plan to be terminated. Further,with respect to any portion so held invalid or unenforceable, the District and Town agree to pursue a Service Plan amendment or take such other actions as may be necessary to achieve to the greatest degree possible the intent of the affected portion. 36 - XIX. CERTIFICATION This Service Plan is submitted to the Town by the undersigned Developer, which is the District petitioner, and with the consent of all property owners of all property within the boundaries — of the proposed District. The undersigned will cause written notice of the Town's hearing on the proposed Service Plan to be duly given to all "interested parties"within the meaning of§ 32-1-204, C.R.S., and will or has caused all other required filings to be made and all other applicable procedural requirements to be met. The information contained in this Service Plan is true and correct as of this date. DEL CAMINO EAST PROPERTIES, L.L.C. • A Colorado limited liability company • • 'ea./7-7 71/ Miles R. Grant Manager October 14;2b04 EXHIBIT A Legal Description LEGAL DESCRIPTION PARCEL 1 - COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT A TRACT OF LAND LOCATED IN THE WEST HALF OF THE NORTHEAST - QUARTER OF SECTION 14, TOWNSHIP 2 NORTH, RANGE 68 WEST OF THE 6TH PRINCIPAL MERIDIAN, TOWN OF FIRESTONE, COUNTY OF WELD, STATE OF COLORADO, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS; - COMMENCING AT THE NORTHEAST CORNER OF SAID WEST HALF; THENCE S00°18'14"E ALONG THE EAST LINE OF SAID WEST HALF A DISTANCE OF 30.00 FEET TO THE POINT OF BEGINNING; - THENCE CONTINUING ALONG SAID EAST LINE S00°18' 14"E A DISTANCE OF 2624 .04 FEET TO THE SOUTHEAST CORNER OF SAID WEST HALF; THENCE S89°55'12"W ALONG THE SOUTH LINE OF SAID WEST HALF A DISTANCE OF 708.31 FEET; THENCE N05°54 '04"W A DISTANCE OF 231. 64 FEET; - THENCE N30°42'25"W A DISTANCE OF 310.05 FEET; THENCE N59°38'36"W A DISTANCE OF 73. 63 FEET; THENCE N78°48'01"W A DISTANCE OF 123.20 FEET; THENCE N16°18'30"W A DISTANCE OF 305.07 FEET; -- THENCE N12°48'12"W A DISTANCE OF 504 .03 FEET; THENCE N26°11'10"E A DISTANCE OF 228.92 FEET; THENCE N13°30'12"E A DISTANCE OF 100. 66 FEET; THENCE N04°09'08"W A DISTANCE OF 187.09 FEET; - THENCE N77°57'21"W A DISTANCE OF 163.27 FEET TO A POINT ON THE CENTER SECTION LINE OF. SECTION 14; THENCE N00°07'17"W ALONG SAID CENTER SECTION LINE A DISTANCE OF 42. 48 FEET; - THENCE N34°26'39"E A DISTANCE OF 345.91 FEET; THENCE N70°27'39"E A DISTANCE OF 183.51 FEET; THENCE N34°12'35"E A DISTANCE OF 86. 45 FEET; THENCE N01°45'32"E A DISTANCE OF 127. 93 FEET; THENCE N42°34 '20"W A DISTANCE OF 107.53 FEET; THENCE N50°34 '57"W A DISTANCE OF 145.48 FEET; THENCE S89°55'22"E A DISTANCE OF 1071. 60 FEET TO THE POINT OF BEGINNING, CONTAINING 64.04 ACRES, MORE OR LESS. WEND! *r f 41.00 fit/ ufrat OF CO1.O 00-038/DWG/Metropolitan-District/LGL-DIST-1 .TXT - PREPARED: 11-19-03 REVISED: 03-09-04 LEGAL DESCRIPTION PARCEL 2 COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT A TRACT OF LAND LOCATED IN THE EAST HALF OF THE NORTHWEST QUARTER OF SECTION 14, TOWNSHIP 2 NORTH, RANGE 68 WEST OF THE 6TH PRINCIPAL MERIDIAN, TOWN OF FIRESTONE, COUNTY OF WELD, STATE OF COLORADO, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS; COMMENCING AT THE NORTH QUARTER CORNER OF SAID SECTION 14; THENCE S00°07 '17"E ALONG THE EAST LINE OF SAID NORTHWEST QUARTER A DISTANCE OF 30.00 FEET TO THE POINT OF BEGINNING; THENCE S00°07'17"E CONTINUING ALONG SAID EAST LINE A DISTANCE OF 311.37 FEET; THENCE S57°55'06"W A DISTANCE OF 15.86 FEET; THENCE 546°08'59"W A DISTANCE OF 81.70 FEET; THENCE S14°17•'01"W A DISTANCE OF 299.30 FEET; THENCE S49°22'28"E A DISTANCE OF 56.74 FEET; THENCE S03°16' 13"E A DISTANCE OF 33.66 FEET; THENCE S62°37 '55"W A DISTANCE OF 36.80 FEET; THENCE S26°39'40"W A DISTANCE OF 29.30 FEET; THENCE S05°13'01"E A DISTANCE OF 184.28 FEET; THENCE 547°17'38"E A DISTANCE OF 36.28 FEET; THENCE S02°26'30"W A DISTANCE OF 59.58 FEET; THENCE S30°54 '29"W A DISTANCE OF 226.80 FEET; THENCE S03°27' 11"W A DISTANCE OF 212. 60 FEET; THENCE S04°05'07"E A DISTANCE OF 117.01 FEET; THENCE 525°08 '52"E A DISTANCE OF 256.67 FEET; THENCE S04°56'23"E A DISTANCE OF 488.16 FEET; THENCE 512°07'10"E A DISTANCE OF 150.75 FEET; THENCE 629°04 ' 16"E A DISTANCE OF 217.63 FEET TO A POINT ON THE SOUTH LINE OF NORTHEAST QUARTER OF SAID SECTION 14; THENCE S89°55' 12"W ALONG SAID SOUTH LINE A DISTANCE OF 56.46 FEET TO THE CENTER QUARTER CORNER OF SECTION 14; THENCE S89°56'54"W ALONG SOUTH LINE OF SAID NORTHWEST QUARTER OF SECTION 14 A DISTANCE OF 1303. 91 FEET TO THE SOUTHWEST CORNER OF SAID EAST HALF OF THE NORTHWEST QUARTER OF SECTION 14; THENCE N00°15'46"W ALONG THE WEST LINE OF SAID EAST HALF A DISTANCE OF 1059. 93 FEET; THENCE N89°56'37"E A DISTANCE OF 468.64 FEET TO A NON-TANGENT POINT OF CURVATURE; THENCE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 16°00'07" A RADIUS OF 1135.00 FEET A DISTANCE OF 316.99 FEET WHOSE CHORD BEARS N08°25'48"W A CHORD DISTANCE OF 315. 96 FEET; THENCE NOO°25'44"W A DISTANCE OF 314.08 FEET TO A POINT OF CURVATURE; THENCE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 11°25' 12" A RADIUS OF 1135.00 FEET A DISTANCE OF 226.22 FEET; THENCE N10°59'27"E A DISTANCE OF 225.17 FEET TO A POINT OF CURVATURE; - THENCE ALONG THE ARC OF A CURVE TO THE LEFT HAVING A CENTRAL. ANGLE OF 11°15' 14" A RADIUS OF 1015.00 FEET A DISTANCE OF 199.37 FEET; THENCE NOO°15'47'W A DISTANCE OF 297.70 FEET; THENCE 390°00'00"E A DISTANCE OF 802.30 FEET TO THE POINT OF BEGINNING, CONTAINING 55.66 ACRES, MORE OR LESS. 00-038/DWG/Metropolitan-District/LGL-DIST-2.TXT PREPARED: 11-19-03 REVISED: 03-09-04 LEGAL DESCRIPTION PARCEL 3 COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT A TRACT OF LAND LOCATED IN THE EAST HALF OF THE SOUTHWEST QUARTER OF SECTION 11, TOWNSHIP 2 NORTH, RANGE 68 WEST OF THE 6TH PRINCIPAL MERIDIAN, TOWN OF FIRESTONE, COUNTY OF WELD, STATE OF COLORADO, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS; COMMENCING AT THE SOUTH QUARTER CORNER OF SAID SECTION 11; THENCE N00°07 ' 16"W ALONG THE EAST LINE OF SAID SOUTHWEST QUARTER A DISTANCE OF 30.00 FEET TO THE POINT OF BEGINNING; THENCE N90°00'00"W A DISTANCE OF 802.43 FEET; THENCE N00°15'47"W A DISTANCE OF 636.73 FEET TO A POINT OF CURVATURE; THENCE ALONG THE ARC OF A CURVE TO THE LEFT HAVING A CENTRAL ANGLE OF 10°45'40' A RADIUS OF 1015.00 FEET A DISTANCE OF 190.63 FEET; THENCE N11°01'27"W A DISTANCE OF 796.41 FEET TO A POINT OF CURVATURE; THENCE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 01°52'28' A RADIUS OF 1015.00 FEET A DISTANCE OF 37.13 FEET WHOSE CHORD BEARS N10°05' 13"W A CHORD DISTANCE OF 37. 13 FEET; THENCE 590°00'00"E A DISTANCE OF 582.89 FEET; THENCE 502°14 '18"E A DISTANCE OF 147.11 FEET; THENCE 501°35'33"E A DISTANCE OF 227.04 FEET; THENCE $67°07 '59"E A DISTANCE OF 79.46 FEET; THENCE S41°30'13"E A DISTANCE OF 109.75 FEET; THENCE S28°16'04"E A DISTANCE OF 142.91 FEET; THENCE S15°04 '29"E A DISTANCE OF 123.50 FEET; THENCE 519°15'37"E A DISTANCE OF 118.72 FEET; THENCE S01°03'51"E A DISTANCE OF 131.94 FEET; THENCE S45°24 '51"E A DISTANCE OF 139.51 FEET TO A POINT ON THE EAST LINE OF SAID SOUTHWEST QUARTER; THENCE S00°07 '16"E ALONG SAID EAST LINE A DISTANCE OF 570. 36 FEET TO THE POINT OF BEGINNING, CONTAINING 26.33 ACRES, MORE OR LESS. 00-038/DWG/Metropolitan-District/LGL-DIST-3.TXT PREPARED: 11-19-03 REVISED: 03-09-04 - EXHIBIT B Boundary Map COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT OVERALL DISTRICT BOUNDARY MAP TOWN OF FIRESTONE, WELD COUNTY, STATE OF COLORADO SHEET 1CF1 I H I 77----T I II .....NINC.. WELD ....... . . . .. ..::;;C; 7 LiN I N C i: W EL]3 C Li iN T Y P:i D r\‘‘,,,,,,,,, .. / e ) I II rl - PARCEL 2 NW 1/4PARCEL 3 SW 1/4 _ ;, 55.66 Acres SECTION 14 CI\ 26.33 Acres SECTION 11 `. 0 COTONWOOD HOLLOW RESIDENTIAL A METROPOLITAN DISTRICT BOUNDARY �\`\.\ En - : I F"- SE 1/4 PARCEL 1 NE 1/4 : I m SECTION 11 64.04 Acres SECTION 14 < m . IG I CI p N N I I - - - 7,:,,..,., SCALE IN FEET I COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT LEGAL EXHIBIT „„.CORMRSECNCIVM TOWN OF FIRESTONE, WELD COUNTY, STATE OF COLORADO 2N,D 2 BD �� FOUND2 I/2'ALUM CAPEE 6 Sf 1 OF 3 STAMPED'1,5 22576' I C I I4 SEMION 14411. — NSW,6DIPAl — — — soo'or7re — — — — — — — 41 � NS MO 2 1/2'ALUM CAP STAMPED'LS 25614' 3 4(4 T7 504.03 N?6y7 101.. . BJ9 f 14 Tr-4T2 W ?7g•8? = 42.48' 3*39A. 6 1 '66' NO4'09'08'W N00'0717"W 30807 N13J0'77 E 167.09' • W N 76169 Z -6 0_ 3 to 7 al. 0\ 13 a a N�. 107.53' i r.62 W— M 1 n c 1^ N4274'20"W 4x9 M5 D A. I 2 < MARGARET C HILL I in 4739 WELD CO RD. 22 r� 127,93' CC LONGMONT, CO 80504 NO7'45'32"E 05 N59'38 n REC. 2538947 __ 12‘°. N3412.3SE p PARCEL 737311000021 •0 73.53' N ��411' v cm in N05"54'04"W 3164 CO n c 0' - PARCEL 1 m 64.04 Acres g - o 1n E1 Nag co ___ N �sit lQ P., Is} �,OA,��N J I FI;FND -- Al • •• S 0 SECTION CORNER l J 11� *f 1 17645 : . . DIMENSION LINE ID CHECK POINT Nil'is i00 91 lik:getyR‘lecPay co v:F COL:cies P. M`d ; a 'ERR? LYNN DOERING j1„v -I r. NE CORNER Of THE Wu2 Of 77[NE u2 '47 SHERWOOD CT. SEC71DI1 II,72x,R68W.6O PA LONGMONE, CO 8050? SE COMER DE DE W Irza M AE AM EauMD 2 Vz'ALUM.CAP STAMPED SWIM TM,7214 R66W,WPM 2 2 0 5 2381 SEC. 2465505 FOUND 2 I/2'ALUM.W STAMPED YS 2521,' SCREE IN FEET 'ARCEL 731374000017 S 00'18'14" E 2624.04' — • 50078'14'E r b An 2N2 !__7' ;!•::i L: lI'd 1!\ .. ' ; Ili �'. J0.00' Pail' ; � 1n 2bn WILLIAM P FLYNN w' 2 r 0 FREDERICK WEBB GREGORIO & HILDALIA ROBLES AP O t+n n m O A a 4917 4 YOm NANCY L & KAREN A BRUCKHAUSER 355 ALPINE SL — A Ac) 2Ni LONGMON� CO 80504 11 A 9629 WELD CO RD. 11 P,0. BOX 1089 m O o n O H w q n n 2 FREDERICK, CO 80530 LONGMONT CO 80501 v. 2 r Z ti ; a O O LONCMONT, CO 80501 Lc, n p 2• q O REC. 2518550 h In N 2 r k PARCEL 131311000062 O 0A REC. 24/6461 REC. 2619131 wa nnS Ww =10 p O O REC. 2187765 PARCEL 137314000016 PARCEL 731374000073 a O O$ In n n C 0 In 0 n PARCEL 137314000042 A s (jO b to ��A LOTS 0 002 0l" 002 RECORDED EXEMPTION oa O x O o A 1373-14-7-RE1957 4 -2 0 caul' 2 1.2 r.x b .I0 rn A b COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT LEGAL EXHIBIT TOWN OF FIRESTONE, WELD COUNTY, STATE OF COLORADO SHEET 2OF3 I III En . O7 I- m a MrCOMER°F/NEE IROFDEMW IN T 3C170.1]I,MAL NSW.®Ilex MOND 2 I/-MNI.CIO N RINCE BOX STAMPED'LS 25614' SWLWNWIONEF II 611I PA IN -- - - - _ --- - I I]j7 SECN%'14/4'RIM,M.BIN04 -- - x a' al." / :1r ll_ 1 11 1 ' 'MTV I-.� it /— FOUND NLL.CAP 5gY0lD'L5 Z2S]6' .. .. .. .. N N v N00'15'46"W 1059.93' — — — — — z S e 41 ZIA La 5 - ! ; ! ,°, m m EXEMPTION I a m No. 1313-14-2RE1400 i /-1 P as ail N 0025'44 W 314.08' 1 Hc. m L=316.99 L=226.22 N2p 5927"E 225.17 R-1135.00 R=11}5.00 00015'47-W 297.70' 1p 8=16'00'07" X1125'12' a CHD-315.96' L=199.37 LEGEND - CHB- 25. R1015.00 I 4.11't.214 f 0 SECTION CORNER I.J • DIMENSION UNE ID CHECK POINT 4 O U to PARCEL 2 -: 55.66 Acres I z 21r _ 3 zpo a0D to o 45 -.; SCALE IN FEET q d a ri DEL CAMINO SOUTH LLC 1J 0 275 S. MAIN Sr 52619'40'W GNOMON]; CO 80501 29.30' 54717'38-E 56922'28"E REC. 2423478 504'05'07"E 5032711"W 212.60' 36.28' -56.74' xwCOMER SEtnwµ PARCEL 131314301004 1566 117.07 SJ0S4• Mk ASSW.FOUND I/x'xM lw.CAP 574.. 1 _9• STAMPED LS 225]6 546'O8'59-W 51S.p9 it 546.O8.59-W 505'13'01"E 184.28' $1417. 61.70' 188.16' B0' 01"K. 5 94'56.23" E 299.30' 557-55'06'W 1 T1 15.86' 150.7`' 59.58' 56217'55"W 50376'73"E C N4 SEMI(6MYI(H2OL, 50226'30•W 36.80' 33.66' R ,BM P.M t �7¢j 500°0717*E _ _ _ _ _ 500'07'171 311.37' FOUND 2 I/'2'ALUM. CIO STAMPED'LS 2561. '�06 5151 500'0777 E 589'55'12"W •70,00• 56.46' • II • I I III COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT LEGAL EXHIBIT I I TOWN OF FIRESTONE WELD COUNTY, STATE OF COLORADO 0 SI ICET 3 OF 3 a 1 m a C 4Y COMM OF DEE W0MEN IN I WWII II,MIL Ma SWIM FOUND x1/2'ALUM.cP IN7NIE II r z l • I i:.:L- ii iNI?':L� , i-_ 71 i- • -%: nT Bar STAMPED l5 1561 I N — — N _ _ _ _ _ — _ — — — .. $00°00'1 1'W T b NW CORNFN°FINEE IQOFOE SW IN _I SECTION 1I.TM P6M',6MFAA 4 3 FOUND 2 1/2'ALUM.CM -_I i i i ./. STAMPED u 1237. E EXEMPTION n - 3 R=1015.0l0I5.O0 No. 1313-14-2RE1400 A=0152'28' - • CH0=37.13' CH8=N10'05'1YW 1 as ItIf - L=190.63' W 796.41 ._ 4 R=1015.00' N 11-01'27- a-tp'45'4o- N 00'15'47' W 636.73' I I b 0 e - d 0 r 71 ca PARCEL 3 e I 26.33 Acres - o LEGEND 0 { 0 SECTION CORNER 501'35'33"E 227.04' 502'14'18'E a DIMENSION LINE ID CHECK POINT m 147.11' I s s Li 4 I x` t 567'OT59'E 79.46' 6ialaN,ND6M., vnav n. 9� N, FOUND 2 1/Y JA CAP V3.pps pp p0 Qp STAMPED is 22516- .2509 9 E 57'81 2� $15 50 SCALE IN FEET %%51 . .1.0;043y 6� i 131.94' 51g'153 SO1'03'51'E ry4851 S 00'07'16' E 570.36' 5j ,7 NO0177'I6'W J0.00. a ii"- ElM COMER WPM II,RN,1168W.ONPIL . .. L -. i- I.I I.I. -• a V _ SET JO LING.3/e PERM W/ L� 2 1 ALVM. [AP STAMPED 1.5 237666 EXHIBIT C Vicinity Map I. .COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT I VICINITY MAP il TOWN OF FI STONEI WELD COUNTY, STATE OF COLORADO I SI-EET 1 OF 1 - — — o — — /--25 - - - - S»RaY.<� aw. Vag '^'`oFi: :'Y<,`:. rc,Sr.. 4u"no se•X 3YCs's: `a.a> YTa v<,'k?oQ�tt°ft'?. :: yo�Y<o≥o$w.E.::i:' �<`: s;ii: >:a:>�';'�iH≥xc.`,np COTTONWOOD HOLLOW .13- Z;•dii s % > RESIDENTIAL MET ROP LITAN D ODISTRICT €.� ao�a d ^, o t>:.t q::.tV'`i `'4'�r°off eo.�...�,.,t:: tiir 1nE int rte,: t-4 .r fviyi;. n C'. ;S4o..y�. m.:: .e 'zen.� ROAD 11 ">':'�a...,aoa«'�,a.f.xao :'Gs=<a:��`;niii::i•<i;'.'o',iiinl� .� a'.;�"e' O a ::`sII ■ a. `z: .. :.....:. .zi:ci.. :,, ,: .., .. ... .n.. em..,k,: oi:g3_a.:::: WvR< \ a..a. - .<,.r.:' I:>:<x«.,.>::a<t v> .>:itil:;n:. ro..b.f. A ra Lk fn ::�'". : .n3atM�U�he. o Si.. O "�at rte:'« k a •••".- . .....:.,.<: ..n ID W Pl Z C7 .i`�::o-'t M x ' w;-<n n 4;b w N., ��r 73 ��.14AAae:tta[tw�;�i N �3='.4Y: Z E<3' :. ay'5ixnm„a' t0[$]IX36S r�-.'e rn m :We:Pa • svztiT . ` ;i N<M[pA:CIeC bAi :"^>` x'�a✓x4}.y.^':r�us't Gf ... ilE:,: :: `t • i * m s9;:.".Y:�5ta :v '£, w ,� =e1 = . ROAD 13 COLORADO BLVD. .n$�[ l:ffA�"+ x [t � "�:_._»__E�_s ::. Y E! 4[ >. ... ..•". .. . : ..:.... ..:.... a._.. . ... ;z�.�'f,.,:.�i�� rn s _ a I y1y {pM1k Y rvw� ®.n M :.#.: ::e..a..:,..: ..�. ......: <:: .. :<.:.. :' ,' ifi�n �:.. � .,;' ....:<...>. 44 wt pi. lryi{•• C$:.^'[__Ids' -- _ •_E'��— ::.. : .. n ..:::>o:`✓ :.. .. ..: : .C x1x..k�iax �`f2�' KK < ea w t� K - .e.<..,b. . ..:.:>.:._ »me:.^e..:,.u..:. <., .3: :. . qs _ k�fS ,jta tl�;tq 7 ._.• b.3 `.a..:.. .. ..:.. . ..°':'; . .�°.:.._.\i, : ,.c:.a<:�.>:•>.n. ::<:..s.e:...i:',v'.. '::. : :: .'..:.:n '•.t}3•• � � n ..l:pss F' .3. p� 1^ ": _s:<s.e e<<.ce. .: .e.: sa[S;:anuv"� iElls .Hmga:y:>n...J.. .w< J<...�[. •'•,•••>':" . • Iewanni "e•:.. jV:"" . .....: spa '.:•>,attata •x874:},...a:«a. >.,...:<-.a ".3Y3':uo:. 4, " ,�w� M5'r .st»' n., «e.a .,... ..:-..l ..Jm.:<./snn:v.::vicvn, ieRViW,Gp:e<m.... ..`•: [Y{IIj$ ,_v. ..,.....:.. .n:aw.<:.:... ',:- , Qpya�1. ) .xn.6..° .:.' � is� ��i+aJ:—, ,124 VI t.s�{ il r:,'.t :,.[,<.,...;. F=>t i:>`>.s ,b'<£;ns::°: ?,-. .>,>tae_.,.. .,«<u �:� o J,t > v��n !,a ( m I f e tffi O �y:Eoa .at!»sfx..o.S S.e t » �f =.es.aE"n4. M N a.Na J ,.ax.n[.fy t�rvnnr c.3,. A Q.. 4P x 4^ � �q _ek ' C:•,ass.:_4XlR %^.'af:1;0.3:; .h:' ems...::. ...:..�� .bc.<:ge is>iyy . •...., -.::.n.<.,..:: "-"gin ,,.. :. .: . . . n.:. ........ .....<a..e a J. 'Fn...... . .. . a...,...t :,. ..: "?c ^t+,'ss`wS<`ssw S,. ...>n .v..."..:.: env.e.J.e : vFG F:.e:i:,:. ,..:.. v°.,. , ::'v�•,.'<:... �[ EC. t:..r.>e,e, >:>t< . ,<>�..a..a :..,t. .. ...... — '' `,•",`an FRONTIER ST co a :._az..<. . :. .... . .:.:e>«:>e.a.::e,.,a-«.<....,.n�i.':' �`s.h.,V.:b,etiy'` ,.<�.,.<n:..e.-:'-'?-h•*? >. .. . .... ;.oa� .,.:ei>..» ae:..e..:•e �.. °?:<s'y:..x3...3:�< `:r is m nsa,;� m a x t�Yte m !!r>'. �oKit₹'4':i�v.>` :.;. Khy,_ :,.... �<:bib.:e�: qi N .>.<: >.... ... ..... .. .. . b J."ez :.Jt:., �.r:p�.,e':<Cn.»a.>e;r� ..x. .nw,e«.. ..:...... -u<„ ...sp..t`e:..�'.7.::s.......:.ni-. e: CJ n .<a<.e.�.,ea,."..,. .« ..az .:3ne «:.><e.e e:a m Co N o.<.u„aie9:"s°ny.[kn 'wee<�k_'{s..,. e"'rs'o`> cty<u: m 'e,n Jrr:a�.n. re:"re N3 ne u °'T %y vYV {'≥!T ,W 'io ROAD n SCALE 1'•1200' I EXHIBIT D Property Owners' Consents April 22, 2004 Town of Firestone Post Office Box 100 Firestone, Colorado 80520 RE: Proposed Cottonwood Hollow Residential Metropolitan District (the "District") To Whom It May Concern: Del Camino East Properties, L.L.C., is the owner of the property attached hereto as Exhibit A, which property is proposed to constitute the boundaries of the District. The purpose of this letter is to advise that 1, Miles R. Grant, as Manager of Del Camino East Properties, L.L.C., consent to '- the organization of the District. • Del Camino East Properties, L.L.C. • Miles R. Grant, Manager l STATE OF COLORADO ) ss COUNTY OF 'J s41 ) Subscribed and sworn to before me on this 7r day of 2004, by Miles R. Grant as Manager of Del Camino East Properties, L.L.C. SUSAN M. MARIN . L 'ItFOFtOLORA �1).)Ag /)l 2 u,t. SL'TC OP COLORADO My Commission Expires 12131105 ! Notary Public My commission expires !a/4// G3 Cottonwood Hollow Residenn:l\Service Plan MGM] 0713.0003061?.0003 EXHIBIT A LEGAL DESCRIPTION PARCEL 1 COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT A TRACT OF LAND LOCATED IN THE WEST HALF OF THE NORTHEAST QUARTER OF SECTION 14, TOWNSHIP 2 NORTH, RANGE 68 WEST OF THE 6TH PRINCIPAL MERIDIAN, TOWN OF FIRESTONE, COUNTY OF WELD, STATE OF COLORADO, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS; COMMENCING AT THE NORTHEAST CORNER OF SAID WEST HALF; THENCE S00°18'14"E ALONG THE EAST LINE OF SAID WEST HALF A DISTANCE OF 30.00 FEET TO THE POINT OF BEGINNING; THENCE CONTINUING ALONG SAID EAST LINE S00°18'14"E A DISTANCE OF 2624.04 FEET TO THE SOUTHEAST CORNER OF SAID WEST HALF; THENCE S89°55'12"W ALONG THE SOUTH LINE OF SAID WEST HALF A DISTANCE OF 708.81 FEET; THENCE N05°54'04"W A DISTANCE OF 231.64 FEET; THENCE N30°42'25"W A DISTANCE OF 310.05 FEET; THENCE N59°38'36"W A DISTANCE OF 73.63 FEET; THENCE N78°48'01"W A DISTANCE OF 123.20 FEET; THENCE N16°18'30"W A DISTANCE OF 305.07 FEET; THENCE N12°48'12"W A DISTANCE OF 504.03 FEET; THENCE N26°11'10"E A DISTANCE OF 228.92 FEET; THENCE N13°30'12"E A DISTANCE OF 100.66 FEET; THENCE N04°09'08"W A DISTANCE OF 187.09 FEET; THENCE N77°57'21"W A DISTANCE OF 163.27 FEET TO A POINT ON THE CENTER SECTION LINE or SECTION 14; THENCE N00°07'17"W ALONG SAID CENTER SECTION LINE A DISTANCE OF 42.48 FEET; THENCE N34°26'39"E A DISTANCE OF 345.91 FEET; THENCE N70°27'39"E A DISTANCE OF 183.51 FEET; THENCE N34°12'35"E A DISTANCE OF 86.45 FEET; THENCE NO1°45'32"E A DISTANCE OF 127.93 FEET; THENCE N42°34 '20"4 A DISTANCE OF 107.53 FEET; THENCE N50°34'57"W A DISTANCE OF 145.48 FEET; THENCE S89°55'22"E A DISTANCE OF 1071. 60 FEET TO THE POINT OF BEGINNING, CONTAINING 64 .04 ACRES, MORE OR LESS. eau * + f�ote :°o tor cm 0QPo 00-038/DWG/Metropolitan-District/LGL-DIST-1.TXT PREPARED: 11-19-03 REVISED: 03-09-04 LEGAL DESCRIPTION PARCEL 2 COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT - A TRACT OF LAND LOCATED IN THE EAST HALF OF THE NORTHWEST QUARTER OF SECTION 14, TOWNSHIP 2 NORTH, RANGE 68 WEST OF THE 6TH PRINCIPAL MERIDIAN TOWN OF FIRESTONE, COUNTY OF WELD, STATE OF COLORADO, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS; COMMENCING AT THE NORTH QUARTER CORNER OF SAID SECTION 14; THENCE SOO°07'17"E ALONG THE EAST LINE OF SAID NORTHWEST QUARTER A DISTANCE OF 30.00 FEET TO THE POINT OF BEGINNING; THENCE S00°07'17"E CONTINUING ALONG SAID EAST LINE A DISTANCE OF 311.37 FEET; THENCE S57°55'06"W A DISTANCE OF 15.86 FEET; THENCE S46°08'59"W A DISTANCE OF 81.70 FEET; THENCE 514°17'01"W A DISTANCE OF 299.30 FEET; THENCE 549°22'28"E A DISTANCE OF 56.74 FEET; THENCE S03°16' 13"E A DISTANCE OF 33.66 FEET; THENCE $62°37'55"W A DISTANCE OF 36.80 FEET; THENCE S26°39'40"W A DISTANCE OF 29.30 FEET; THENCE S05°13'01"E A DISTANCE OF 184.28 FEET; THENCE S47°17'38"E A DISTANCE OF 36.28 FEET; THENCE S02°26'30"W A DISTANCE OF 59.58 FEET; THENCE 530°54'29"W A DISTANCE OF 226.80 FEET; THENCE S03°27'11"W A DISTANCE OF 212.60 FEET; THENCE SO4°05'07"E A DISTANCE OF 117.01 FEET; THENCE S25°08'52"E A DISTANCE OF 256.67 FEET; THENCE SO4°56'23"E A DISTANCE OF 488.16 FEET; THENCE 312°07'10"E A DISTANCE OF 150.75 FEET; THENCE S29°04' 16"E A DISTANCE OF 217.63 FEET TO A POINT ON THE SOUTH LINE OF NORTHEAST QUARTER OF SAID SECTION 14; THENCE 589°55' 12"W ALONG SAID SOUTH LINE A DISTANCE OF 56.46 FEET TO THE CENTER QUARTER CORNER OF SECTION 14; THENCE S89°56'54"4 ALONG SOUTH LINE OF SAID NORTHWEST QUARTER OF SECTION 14 A DISTANCE OF 1303.91 FEET TO THE SOUTHWEST CORNER OF SAID EAST HALF OF THE NORTHWEST QUARTER OF SECTION 14; THENCE NOO°15'46"W ALONG THE WEST LINE OF SAID EAST HALF A DISTANCE OF 1059.93 FEET; THENCE N89°56'37"E A DISTANCE OF 468.64 FEET TO A NON-TANGENT POINT OF CURVATURE; THENCE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 16°00'07" A RADIUS OF 1135.00 FEET A DISTANCE OF 316.99 FEET WHOSE CHORD BEARS N08°25'48"W A CHORD DISTANCE OF 315.96 FEET; THENCE NOO°25'44"W A DISTANCE OF 314.08 FEET TO A POINT OF CURVATURE; THENCE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 11°25'12" A RADIUS OF 1135.00 FEET A DISTANCE OF 226.22 FEET; THENCE N10°59'27"E A DISTANCE OF 225. 17 FEET TO A POINT OF CURVATURE; THENCE ALONG THE ARC OF A CURVE TO THE LEFT HAVING A CENTRAL ANGLE OF 11°15'14" A RADIUS OF 1015.00 FEET A DISTANCE OF 199.37 FEET; THENCE N00°15'47'W A DISTANCE OF 297.70 FEET; THENCE S90°00'00"E A DISTANCE OF 802.30 FEET TO THE POINT OF BEGINNING, CONTAINING 55.66 ACRES, MORE OR LESS. 00-038/DWG/Metropolitan-District/LGL-DIST-2.TXT PREPARED: 11-19-03 REVISED: 03-09-04 LEGAL DESCRIPTION PARCEL 3 COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT A TRACT OF LAND LOCATED IN THE EAST HALF OF THE SOUTHWEST QUARTER OF SECTION 11, TOWNSHIP 2 NORTH, RANGE 68 WEST OF THE 6TH PRINCIPAL MERIDIAN, TOWN OF FIRESTONE, COUNTY OF WELD, STATE OF COLORADO, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS; COMMENCING AT THE SOUTH QUARTER CORNER OF SAID SECTION 11; THENCE N00°07'16"W ALONG THE EAST LINE OF SAID SOUTHWEST QUARTER A DISTANCE OF 30.00 FEET TO THE POINT OF BEGINNING; THENCE N90°00'00"W A DISTANCE OF 802.43 FEET; THENCE NOO°15'47"W A DISTANCE OF 636.73 FEET TO A POINT OF CURVATURE; THENCE ALONG THE ARC OF A CURVE TO THE LEFT HAVING A CENTRAL ANGLE OF 10°45'40' A RADIUS OF 1015.00 FEET A DISTANCE OF 190.63 FEET; THENCE N11°01 '27"W A DISTANCE OF 796.41 FEET TO A POINT OF CURVATURE; THENCE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 01°52'28' A RADIUS OF 1015.00 FEET A DISTANCE OF 37.13 FEET WHOSE CHORD BEARS N10°05'13"W A CHORD DISTANCE OF 37. 13 FEET; THENCE 590°00'00"E A DISTANCE OF 582.89 FEET; THENCE S02°14 '18"E A DISTANCE OF 147.11 FEET; - THENCE S01°35'33"E A DISTANCE OF 227.04 FEET; THENCE 867°07'59"E A DISTANCE OF 79.46 FEET; • THENCE S41°30'13"E A DISTANCE OF 109.75 FEET; THENCE 528°16'04"E A DISTANCE OF 142.91 FEET; THENCE S15°04 '29"E A DISTANCE OF 123.50 FEET; THENCE S19°15'37"E A DISTANCE OF 118.72 FEET; THENCE S01°03'51"E A DISTANCE OF 131.94 FEET; ,- THENCE S45°24 '51"E A DISTANCE OF 139.51 FEET TO A POINT ON THE EAST LINE OF SAID SOUTHWEST QUARTER; THENCE SOO°07'16"E ALONG SAID EAST LINE A DISTANCE OF 570.36 FEET TO THE POINT OF BEGINNING, CONTAINING 26.33 ACRES, MORE OR LESS. 00-038/DWG/Metropolitan-District/LGL-DIST-3.TXT PREPARED: 11-19-03 REVISED: 03-09-04 EXHIBIT E Engineering Estimates a Cottonwood Hollow Residential Metropolitan District March 9, 2004 Construction Cost Estimate Job No.:00-039 Sable Ave Construction Sable Ave construction budget is base upon the interim section as shown in the Preliminary Development Plan drawings dated 10/16/03. The cost also includes addition work to maintain the section prior to the ultimate section being completed by Firestone The budget only includes work from the frontage road East to the existing culvert in Gadding Hollow ditch. ... Sable Ave 3970 If From Frontage Rd.East to godding hollow ditch/culvert 100'R.O.W Pavement width 32 LF(2 lanes©12 LF plus shoulders 4 LF each direction);depth 10 Inch Subgrade Preparation width 37 NO Curb 8 Gutter Landscape width 12 LF Strip on both sides Concrete sidewalk width 8 LF on both sides Construction Costs Item Quantity Unit Unit Price Total Subgrade Prep 14115 SY $ 2.10 $ 29,641.50 Cut Barrow Ditches 3500 LF $ 2.75 $ 9,625.00 Sidewalk 8'(includes prep) 7940 LF $ 17.10 $ 135,774.00 Handicap Ramps 5 EA $ 450.00 $ 2,250.00 Asphalt Paving 10"Section 14116 SY $ 21.00 $ 296,436.00 Landscape 95280 SF $ 1.00 $ 95,280.00 Stripe 14300 LS $ 0.94 $ 13,442.00 Interim Section Maintenance 14116 SY $ 5.00 $ 70,580.00 Sable Avenue Roadway Subtotals $ 653,026.50 Cost per foots $ 244.40 Storm Sewer Construction Costs Item Quantity Unit Unit Price Total 24"RCP 912 LF $ 42.00 $ 38,304.00 5'MH 3 EA $ 2,905.00 $ 8,715.00 Type C inlet 3 EA $ 3,000.00 $ 9,000.00 24"FES-RCP 1 EA $ 900.00 $ 900.00 ... 6.5'x16'Box Culvert 1 LF $ 213,622.00 $ 213,622.00 Wingwat 4 EA $ 3,000.00 $ 12,000.00 Stem Sable Ave Subtotals 282,541.00 Water System Construction Cost item Quantity Unit Unit Price Total • .� 12"PVC With All Fittings 2817 LF $ 42.00 $ 118,314.00 8"Water Line 2405 LF $ 39.00 $ 93,795.00 Master Meter 1 EA $ 50,000.00 $ 50,000.00 -'- Water in Sable Ave Subtotal's $ 262,109.00 Sable Ave Public Improvements Total- $ 1,197,678.50 • Cottonwood Hollow Residential Metropolitan District March 9, 2004 Construction Cost Estimate Job No.:00-039 Arbor St. Construction Arbor St.construction budget is base upon the ultimate section as shown in the Preliminary Development Plan drawings dated 10/16/03. The cost also includes addition work to build the ultimate section from the interim section also shown on the preliminary development plans.Cost is based on street construction south of Sable Ave and the segment included in Parcel 3. Arbor St 4612 If 120'R.O.W • Pavement width 44';depth 10 Inch Subgrade Preparation width=44' Landscape width 30'Strip on both sides Concrete sidewalk width 8 LF on both sides Construction Costs Item Quantity Unit Unit Price Total Subgrade Prep 22547 SY $ 2.10 $ 47,348.70 ,.� Sidewalk 8'(includes prep) 9224 LF $ 17.10 $ 157,730.40 Handicap Ramps 15 EA $ 350.00 $ 5,250.00 Asphalt Paving 10"Section 22547 SY $ 21.00 $ 473,487.00 Stripe 18500 LF $ 0.94 $ 17,390.00 Subtotal $ 701,206.10 Cost per foot $ 152.04 .— Addition work for interim section Asphalt Repair 22547 SY $ 1.75 $ 39,457.25 Cut/Fill barrow ditches 8 process 6149 CV $ 2.75 $ 16,909.75 Seed 308360 SF $ 0.10 $ 30,836.00 Stripe 2965 LF $ 0.75 $ 2,223.75 Subtotal $ 89,426.75 Water System Construction Cost Item Quantity Unit Unit Price Total 12"PVC With Alt Fittings_ 4601 LF $ 42.00 $ 193,242.00 • Subtotal 193,242.00 Arbot Street Total $ 983,874.85 Cottonwood Hollow Residential Metropolitan District March 9, 2004 Construction Cost Estimate Job No.:00-039 Godding Irrigation Ditch Irrigation Ditch 1793 LF Item Quantity Unit Unit Price Total Ditch Grading 4468 CY $ 1.40 $ 6,255.20 �— Bentomat Liner 71658 SF $ 1.15 $ 82,406.70 60"CMP 450 LF $ 215.00 $ 96,750.00 60"FES 8 EA $ 2,125.00 $ 17,000.00 15'Maintenance Path 26895 SF $ 2.15 $ 57,824.25 Seeding 34800 SF $ 0.10 $ 3,480.00 Total $ 263,716.15 — Cottonwood Hollow Residential Metropolitan District March 9, 2004 Construction Cost Estimate Job No.:00-039 Open Space Open Space — Tract Area(ac) 10 0.1 11 0.56 12 0.11 — 14 0.33 15 0.42 16 0.14 23 0.93 24 0.49 26 0.86 27 1.6 29 4.85 Total 10.39 ac or 452588 of Landscape Area Cost Estimate Item Quantity Unit Unit Price Total Landscape area 452588 sf $ 2.00 $ 905,176.80 10'Godding Hollow Trail 5988 LF Grading 1108 CY $ 1.10 $ 1,218.80 Subgrade Prep 5988 LF $ 2.25 $ 13,473.00 10'Concrete Trail 5988 LF $ 32.00 $ 191,616.00 Total $ 1,111,484.80 .. Cottonwood Hollow Residential Metropolitan District March 9, 2004 Construction Cost Estimate Job No.:00-039 Community Pond -South Item Quantity Unit Unit Price Total �- South Community Pond Excavation 79000 CY S 1.40 $ 110,600.00 PVC liner 127834 SF $ 1.15 $ 147,009.10 Total South Irrigation Pond Construction $ 257,609.10 Cottonwood Hollow Residential Metropolitan District March 9, 2004 Construction Cost Estimate Job No.:00-039 Totals Sable Ave. S 1,197,678.50 Arbor St. 983,874.85 Irrigation Ditch S 263,718.15 Open Space Construction S 1,111,484.60 South Community Pond Construction S 257,609.10 Offsite District Budget S 3,814,383.20 Contingency(15%) S 572,154.48 Total $4,386,517.68 PARAGON ENGINEERING CONSULTANTS; IVC. March 9. 2004 Town of Firestone 1 5 1 Grant Street _ Firestone, CO 80520 RE: Proposed Cottonwood Hollow Residential Metropolitan District To Whom It May Concern, I, S. Sylvester Mikosz, a Registered Professional Engineer in the State of Colorado, have reviewed the Engineer's Estimate of Probable Construction Costs within the proposed Cottonwood Hollow Residential Metropolitan District area. The Engineer's Estimate of Probable Construction Cost was based on the following information and assumptions: A. The quantities for each item were based on conceptual design of public improvements, as depicted in Preliminary Development Plan Dated October 16, 2003, prepared by Paragon Engineering Consultants that was not approved by appropriate agencies. B. Unit costs were based on recent bid cost for similar projects. Based on these assumptions, I believe that the Engineering Estimate of Probable Construction Cost contained within Service Plan for Cottonwood Hollow Metropolitan District is reasonable for the public improvements portion of this project. Additionally, I have reviewed the exhibits of the location of public improvements within the Service Plan for the district(Service District Roadways, Storm Drainage System, Water Distribution System, Parks and Open Space) and believe the exhibits represent the conceptual design of the public improvements prepared by Paragon Engineering Consultants. For and on Behalf of Paragon Engineering Consul Ohl losttet a - a 81 SC: S. y ester Mikosz, P.E. 4. Pr .ect Engineer NAlEO�`L``' 5575 Smith Sycamore, Ste 103 / Littleton, CO 80120 / (303) 794-8604 / FAX(303) 795-3072 EXHIBIT F Location of Public Improvements COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT STREETS AND GODDING IRRIGATION DITCH PLAN s� �Er 2 TOWN OF FIRESTONE,vex COUNTY, STATE OF COLORADO SHEET 1 OF 3 \ \\. ti - ` \\ �\ \ a b \� N4 Ta n't art y' b .. \ q \" \ MATCH UNE G \ SEE BELOW b N aa,:c r M N. N a. N \ s A PARCEL 1 \ N \ \ L — \— — \ \ \ m \ \ \ \ A el n i \ 0 rl Z A y 00 SEE ABOVE MATCH UNE - BIRCH ST. (NCR 11) 7° -_tl 2 SCALE IN FEET - _ j COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT STREETS AND GODDING IRRIGATION DITCH PLAN TOWN OF RRESTONE, WELD COUNTY, STATE OF COLORADO SHEET 20F3 91U -...,.� 20 �``�-.."'----- _ di 2� SCALE IN FEET - LIMITS OF __ _ \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ CONSTRUCTION N. \ \ i \ \ to EXEMPTION ^ \ \ I No. 1313-14-2RE1400 a I M \ \ n \ \ ro \ \ \ C W ARBOR S \ _ T o I 33 ��5�. PARCEL 2 12 I. a. i i \ r <N 9 6. S: '..., ,,,,,,,,- --.-:.•',<:.;::.',,/,'.:li',-,-,---:;:,,. \---\\ , SEE SHEET 1 COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT STREETS AND GODDING IRRIGATION DITCH PLAN TOWN OF RRESTONE, WELD COUNTY, STATE OF COLORADO SHEET 3OF3 LIMITS OF E -.- CONSTRUCTION I y . . EXEMPTION m No. 1313-14-2RE1400 y Y \ a ARBOR ST. c. ' ARBOR ST. W � PARCEL 3 e wy ralt Kt; 00 p � ip0 21 _�1 2�0 SCALE IN FEET SEE SHEET 1 I COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT WATER PLAN TOWN OF FIRESTONE, WELD COUNTY, STATE OF COLORADO SEE SHEET 2 SHEET 1 OF 3 I ..XAttSiV, >s "U'rawry. ,,:r .,a New X ,E 1 A 1 t$ I \ 1 V6: w; \h f \ N 4 py ' I, /N J 1 V,'19s ii \ ♦\\`\\`\ Il 1 \\\\\\ l ll 4 \A ar 1 1 LIVE E SEE BELOW 1 \ \ s PARCEL 1 \ \ N \ \ \ M I \ LU \ V, E XI \ 1., N e \ ! \ \ ! \ \ a m LIMITS OF SEE ABOVE CONSTRUCTION MATCH UNE 200 200 490 _..._ 2 WM 6• PVC -- 1 0 � SCALE IN FEET COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT WATER PLAN TOWN OF FIRESTONE, WELD COUNTY, STATE OF COLORADO SIEET2OF3 21_-__SL0.E IN FEET 1 \"" """""\"\""\\"""""""\""\\\\\\\\\\\\\\\\ \\\\\ \\\\\ \\\\\\\\\\\\\\\"""\\\\\\\\\\\\\\\\\\\\ �I1 1 1 LIMITS OF CONSTRUCTION II I " I EXEMPTION I _ No. 1313-14-2RE1400 A < ti - q. nl . '4 CI WIT 12- PVC , \ ` I r'' P� *TR ,2.Pyc - • n J W�‘ �► WTR 12'PVC Lil .a _ A ... ST . _ W W el-s'C. '1% PARCEL 2 I! ' e� It / I t a \ uo ms SEE SHEET 1 COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT WATER PLAN TOWN OF FEESTONE, WELD COUNTY, STATE OF COLORADO SHEET 3 OF 3 1 LIMITS OF CONSTRUCTION NJ L . T �� EXEMPTION .. No. 1313-14-2RE1400 a • -. g a IN lw LIMITS OF CONSTRUCTION , �11:::::::::11T:12. wia 1r PVCwmu• avcARBORST H' !I � j I1Il 1 I 1 Ii II �� PARCEL 3 ii vl ; A I 1 I, Y..< .....J<j :.. ........ I XIiso t o 300 ❑ 100 0 a 0 .... nfi$'s II SCALE IN FEET SEE SHEET 1 COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT STORM SEWER PLAN TOWN OF FIRESTONE, WELD COUNTY, STATE OF COLORADO SHEET1OF1 ,,y ;.f PARCEL 3 T; to C co iY a * STRIA TYPE -C. 51RM MH ,. INLET(TW.) STRM MH (TYP.) (TW.) CONCRETE SOX IFFS1RM 50' SABLE AVE. (VCR 22) //// ///// AI ' /�`\ SABLE AVE. (VCR 22) r STRIA TYPE -C' ' ' INLET (TW.) --- 51RM TYPE 'C' / •+ / INLET (TW.) / I / / CI / / 21 / / A PARCEL 2 / 1/ ; / EXEMPTION No. 1313-14-2RE1400 / F� '"1 / / ° / / / / / / / ,/ PARCEL 1 . 7 / i :.-..:.... 7 7__ , ..., __ 7 .. __ 7 _,,,,, ,.. __ 7 7 .. . 7 7 7 . . , ,..:. / 7 7 7 7 . .,.,... 7 200 __a 2 / 0 / I_ SCNLE IN GEEi i j / .//,t4 % / COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT PARKS, OPEN SPACE SPACE AND RECREATIONAL FACILITY PLAN TOWN OF FWESTONE, WELD COUNTY, STATE OF COLORADO 3 MEET 1 OF 3 SEE3EEf2 �— �_� ea w CODDINC HOLLOW '"^� A �� .\ . RaRarroxAc TRAIL m t V` nFts y � \ \ ti,,,,, _J 1 -e\� "^¢°`" eR'FLArroNAL rRA/L /�/cter,I pr \ ` GOODING HOLLOW a, COMMUNITY POND SOUTH w ' >4' .. a \ [ N. coo \ R4r \ a. Bp�N ro "R PARCEL 1 ,'r'°No, \ A \ \ \ TRACT 27 \ OPEN SPACE \ BEACH \ \ \ \ \ \ TR\ / OPEN ASPACE v \ \ \ \ \ \ \ \ RECREATIONAL TIME ��R.CRLANONAL TRAIL \ TRACT 29 l PACT 29 21____d 2 SCALE IN FEET COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT PARKS, OPEN SPACE SPACE AND RECREATIONAL FACILITY PLAN TOWN OF FIRESTONE, WELD COUNTY, STATE OF COLORADO SHEET 2 OF 3 2 \ N I \ \ rOPEN SPAC!` \ L. "' •f:I m J+ \ EXEMPTION \ Sa \\ o+ I No. 1313-14-2RE1400 c \ \ \ n a \ \ \ \ \ OF \ ARBOR ST. W \ OPEN SPAN[ �.PLAMMUND C W \ TLC[I I I'1 \ TRACT IA \ OPEN SPACE fSlYJ n \ PARCEL 2 a \ o \ ) I i \ 13- OPENASPACE P. \ \ \ Na\ T \ L =NJ' \ \ `q,� - S f S/ fb • \ _� GODDING HOLLOW y»000�2J (�... J C•A . . f t \ \ ‘ agcRfATIONAL TA. \ � 4 J ecaJ:c,�c�.. o \ 1 - J c� ;`Jam, y .'i •• '. RACRBANONAL TRAM We3 SEE SHEET 1 - p p p 210 2 2 0 SCALE IN FEET I COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT PARKS, OPEN SPACE SPACE AND RECREATIONAL FACILITY PLAN TOWN OF FIRESTONE, WELD COUNTY, STATE OF COLORADO SHEET 3OF3 1 .I a. EXEMPTION - tn No. 1313-14-2RE1400 a a -. \ n a\ — ba S L ARBOR ST. ARBOR ST. i PARCEL 3 rrrrl i en z N RECREATIONAL TRAIL 4r CODDmG HOLLOW <l ftREATIONAL TRAIL \\` ``\�°C`\\\\\\\\\\\\\\\\\\\\\\\ I NN_______..____, IL V Y p 210____a 2 ,r GODDING HOLLOW ASP SCALE IN FEET EXHIBIT G Financing Plan Forecasted Cash Surplus Balances and Cash Receipts and Disbursements Market Projection Consultant's Analysis Developer's Letter in Support of Market Projections COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT FORECASTED SURPLUS CASH BALANCES _ AND CASH RECEIPTS AND DISBURSEMENTS OCTOBER 12, 2004 a Clifton Gunderson LLP Certified Public Accountants&Consultants — Accountant's Report The Petitioners for Formation of Cottonwood Hollow Residential Metropolitan District Weld County, Colorado We have compiled the accompanying forecasted surplus cash balances and cash receipts and disbursements of Cottonwood Hollow Residential Metropolitan District (the "District") (in the Formation Stage of Development) as of the date of formation and for the calendar years ending through 2037, in accordance with attestation standards established by the American Institute of Certified Public Accountants. A compilation is limited to presenting in the form of a forecast, information that is the representation of the Petitioners for Formation of the District (collectively, "Management") and does not include evaluation of the support for the assumptions underlying the forecast. We have not examined the forecast and, accordingly, do not express an opinion or any other form of assurance _ on the accompanying schedules or assumptions. However, we did become aware of a departure from the guidelines for presentation of a forecast established by the American Institute of Certified Public Accountants, which is described in the following paragraph. Furthermore, there will usually be differences between the forecasted and actual results, because events and circumstances frequently do not occur as expected, and those differences may be material. We have no responsibility to update this report for events and circumstances occurring after the date of this report. As discussed in Note 4, the forecast is presented on the cash basis of accounting, whereas the historical financial statements for the forecast period are expected to be presented in conformity with generally accepted accounting principles on the accrual basis for government wide statements and the modified accrual basis for individual fund financial statements for all funds of the District by fund type. Guidelines for presentation of a forecast established by the American Institute of Certified Public Accountants require disclosure of the differences resulting from the use of a different basis of accounting in the forecast than that expected to be used in the historical financial statements for the period. Accordingly, if the AICPA presentation guidelines were followed, the forecast would indicate that the presentation reflects — surplus cash balances and the cash received and disbursed rather than fund balances and the revenue and expenditures that would be recognized under generally accepted accounting principles based on the accrual basis and the modified accrual basis of accounting. Greenwood Village, Colorado October 12, 2004 Sri D LBOffices in 13 states and Washington,DC H International 1 1 3 1 1 1 1 1 I 1 I I I I i I 1 1 1 COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT (IN THE FORMATION STAGE OF DEVELOPMENT) I Pans 2 f FORECASTED SURPLUS CASH BALANCES AND CASH RECEIPTS AND DISBURSEMENTS GENERAL AND DEBT SERVICE FUNDS ONLY SUMMARY-GENERAL FUND AS OF THE DATE OF FORMATION AND FOR THE CALENDAR YEARS ENDING THROUGH 2037 Cash Receipts Cats Disbursements Cash Balances General Net Specific Annual Annual Cumulative Total Fund Property Ownership Developer Interest Total Administrative Total Cash Surplus Collection Assessed Mill Taxes Taam Contributions- Income Cash Disbursements Cash Surplus Cash Collection Year Value Levy Administrative at Receipts Disbursements (Deficit) Balances Year (See Page 5) 98.009E 10.00% 2.00% 2.00% 2004 0 0.000 0 0 50,000 0 50,000 50.000 50,000 0 0 2004 2005 0 0.000 0 0 50,000 0 50,000 50,000 50,000 0 0 2005 2006 1,945,030 5.747 10,955 8,764 31,500 0 51,219 51,000 51,000 219 219 2006 2007 4,675,063 5.747 26,330 21,066 4,700 4 52,100 52,020 52,020 80 299 2007 2008 6,390,146 5.747 35,990 28,794 6 64,790 53,060 53,060 11730 12,029 2008 2009 7,748,705 5.747 43,641 34,915 241 78,797 54,121 54,121 24,676 36,705 2009 2010 9,314,575 5.747 52,460 41,971 734 95,165 55,203 55,203 39,962 76,667 2010 2011 10,531,802 5.747 59,316 47,456 1,533 108,305 56,307 56,307 51,998 128,665 2011 2012 10,955,356 2.100 22,546 45,449 2,573 70,568 57,433 57,433 13,135 141,800 2012 2013 10,955,356 2.100 22,546 45,449 2,836 70,831 58,582 58,582 12,249 154,049 2013 2014 11,174,463 2.100 22,997 46,358 3,081 72.436 59,754 59,754 12,682 166,731 2014 2015 11,174,463 2.100 22,997 46,358 3,335 72,690 60,949 60,949 11,741 178,472 2015 2016 11,397,953 2.100 23,457 47,285 3,569 79,311 62,168 62,168 12,143 190,615 2016 2017 11,397,953 2.100 23,457 47,285 3,812 74,554 63,411 63,411 11,143 201,758 2017 2018 11,625,912 2.100 23,926 48,231 4,035 76,192 64,679 64,679 11,513 213,271 2018 2019 11,625,912 2.100 23,926 48,231 4,265 76,422 65,973 65,973 10,449 223,720 2019 2020 11,858,430 2.100 24,405 49,195 4,474 78,074 67,292 67,292 10,782 234,502 2020 2021 11,858,430 2.100 24,405 49,195 4,690 78,290 68,638 68,638 9,652 244,151 2021 2022 12,095,599 2.100 24,893 50,179 4,883 79,955 70,011 70,011 9,944 254,098 2022 2023 12,095,599 2.100 24,893 50,179 5,082 80,154 71,411 71,411 8,743 262,841 2023 2024 12,337,511 2.100 25,391 51,183 5,257 81,831 72,839 72,839 8,992 271,833 2024 2025 12,337,511 2.100 25,391 51,183 5,437 82,011 74,296 74,296 7,715 279.548 2025 2026 12,584,261 2.100 25,898 52,206 5,591 83,695 75,782 75,782 7,913 287,161 2026 2027 12,584,261 2.100 25,898 52,206 5,749 83,853 77,298 77,298 6,555 291,016 2027 2028 12,835,946 2.100 26,416 53,250 5,880 85,546 78,844 78,844 6,702 300,718 2028 2029 12,835,946 2.100 26,416 53,250 6,014 85,680 80,421 80,421 5,259 305,977 2029 2030 13,092,665 2.100 26,945 54,315 6,120 87,380 82,029 82,029 5,351 311,328 2030 2031 13,092,665 2.100 26,945 54,315 6,227 87,487 83,670 83,670 3,817 315,145 2031 2032 13,350,518 2.100 27,484 55,402 6,303 89,189 85,343 85,303 3,846 318,991 2032 2033 13,354,518 2.100 27,484 55.402 6,380 89,266 87,050 87,050 2,216 321,207 2033 2034 13,621,609 2100 28,033 56,510 6,124 90,967 88,791 88,791 2,176 323,383 2034 2035 13,621,609 2.100 28,033 56,510 6,468 91,011 90,567 90,567 004 323,827 2035 2036 13,894,041 2.100 28,594 57,640 6,477 92,711 92,378 92,378 333 321,160 2036 2037 13,894,011 2.100 28,594 57,640 6,483 92,717 94,226 94,226 (1,509) 322,651 2037 890,662 1,517,372 136,200 133,963 2,678,197' 2,355,546 2.355,546 322,651 Note I: Per the District's Service Plan,the maximum mill levy for administration and operating expenses is 6 mills. This financial information should be read only in connection with the accompanying Summary of Significant Forecast Assumptions and Accounting Policies and Accountant's Report. '5 1 1 1 ) 1 1 1 1 1 1 I I I I I I I 1 1 COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT (IN THE FORMATION STAGE OF DEVELOPMENT) I Pre 3 FORECASTED SURPLUS CASH BALANCES AND CASH RECEIPTS AND DISBURSEMENTS GENERA/.AND DEBT SERVICE FUNDS ONLY SUMMARY-DEBT SERVICE FUND AS OF THE DATE OF FORMATION AND FOR THE CALENDAR YEARS ENDING THROUGH 2037 Cash Receipts Cash Dtsbarsemeats Cash Balances i. Debt Net Net Net Annual Cumulative t Total Service Property Interest Total Debt Service Debt Service Total Cash Cash i Collection Assessed Fund Taxes Income Cash on on Cash Surplus Surplus Collection Year Value Mill at Receipts 2005 Bonds 2007 Bonds Disbursements (Deficit) Balances Year (See Page 5) Levy 98.00% 2.00% (See Page 6) (See Page 9) 2001 0 0.000 0 0 0 0 0 0 0 0 2004 2005 0 0.000 0 0 0 0 0 0 0 0 2005 2006 1,945,030 10.232 76,687 0 76,687 0 0 0 76,687 76,687 2006 2007 4,675,063 40.232 184,325 1,534 185,859 78,891 0 78,894 106,965 183,652 2007 2008 6,390,146 40.232 251,947 3,673 255,620 182,967 0 182,967 72,653 256,305 2008 2009 7,748,705 40.232 305,511 5.126 310,637 182.967 100,558 283,525 27,112 283,417 2009 2010 9,314,575 40.232 367,249 5,668 372,917 217,967 235,425 453,392 (80,475) 202,942 2010 2011 10,531,802 40.232 415,241 4,059 419,300 210,342 235,425 445,767 (26,467) 176,475 2011 2012 10,955,356 10.232 431,941 3,530 135.471 212,817 255,125 468,242 (32,771) 143,704 2012 2013 10,955,356 10.232 431,911 2,874 134,815 210,192 258,925 469,117 (34,302) 109,402 2013 2014 11,174,463 10.232 440,580 2,188 442,768 207,292 261.775 469,067 (26,299) 83,103 2011 2015 11,174,463 40.232 440,580 1,662 442,242 209,392 259,525 468,917 (16,675) 56,428 2015 2016 11,397,953 10.232 449,391 1,129 450,520 211,117 257,000 468,117 (17,597) 38,831 2016 2017 11,397,953 40.232 449,391 777 450,168 207,742 259.475 467,217 (17,049) 21,782 2017 2018 11,625,912 40.232 158,379 436 458,815 214,092 251,850 465,942 (7,127) 14,655 2018 2019 11,625,912 40.232 458,379 293 458,672 214,417 251,325 468,742 (10,070) 1,585 2019 2020 11,858,430 40.232 467,547 92 467,639 209,642 256,425 466,067 1,572 6,157 2020 2021 11,858,430 40.232 467,547 123 467,670 204,867 . 263,150 468,017 (347) 5,810 2021 2022 12,095,599 40.232 476,898 116 477,014 210,092 259,125 469,217 7,797 13,607 2022 2023 12,095,599 40.232 476,898 272 477,170 201,567 265,100 469,667 7,503 21,110 2023 2021 12,337,511 40.232 486,435 422 486,857 213,767 265,325 179,092 7,765 28,875 2021 2025 12,337,511 40.232 486,435 578 487,013 207,117 279,900 487,017 (4) 28,871 2025 2026 12,581,261 40.232 196,164 577 496,711 210,192 283,250 193,442 3,299 32,170 2026 2027 12,584,261 40.232 496,164 643 496,807 212,517 285,300 497,817 (1,010) 31,160 2027 2028 12,835,946 40.232 506,087 623 506,710 214,092 291,875 505,967 743 31,903 2028 2029 12,835,946 10.232 506,087 638 506,725 209,917 302,050 511,967 (5,242) 26,661 2029 2030 13,092,665 40.232 516,209 533 516,742 215,092 295,725 510,817 5,925 32,586 2030 2031 13,092,665 40.232 516,209 652 516,861 219,417 304,025 523,442 (6,581) 26,005 2031 2032 13,354,518 10.232 526,533 520 527,053 212,342 310,550 522,892 4,161 30,166 2032 2033 13,354,518 40.232 526,533 603 527,136 219,617 305.575 525,192 1,944 32,110 2033 2034 13,621,609 40.232 537,064 642 537,706 210,667 314,850 525,517 12.189 44,299 2034 2035 13,621,609 40.232 537,064 886 537,950 214,442 311,975 526.417 11,533 55,832 2035 2036 13,894,041 40.232 547.805 1,117 548,922 0 397,975 397,975 150,947 206,779 2036 2037 13,894041 40.232 547,805 4,136 551,941 0 402,775 402,775 149,166 35,,,945 2037 14,283,026 46.122 14,329,148 5,948,545 ' 8,024,658 13,973,203 355,945 This financial locomotion should be read only in connection with the accompanying Summary of Significant Forecast Assumptions and Accounting Policies and Accountant's Report. 1 1 I I I I I I I I I I 1 I 1 I I I I • COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT (IN THf.FORMATION STAGE OF DEVELOPMENT) I Pare 4 i FORECASTED SURPLUS CASH BALANCES AND CASH RECEIPTS AND DISBURSEMENTS GENERAL AND DEBT SERVICE FUNDS ONLY SCHEDULE OF ESTIMATED ASSESSED VALUATION (Page I of 2 - Continued to Page 5) AS OF THE DATE OF FORMATION AND FOR THE CALENDAR YEARS ENDING THROUGH 2037 Single-Family Residential Multi-Family Residential TOTAL RESIDENTIAL UNITS Est.Biennial Cumulative Estimated Nusnber of Est.Mattel Annual Number of Est.Market Annual Annual Annual Revaluation Market Residential RESIDENTIAL Construction Collection Single- Value per Value Multi- Value per Value Number of New Value of New per State Value Assessment ASSESSED Year Year Family Residence of New SF Family Residence of New MF Residential Residential Statute at of New Ratio VALUATION Residences 5240292 Residences Residences 5173,010 Residences Units Units 2.00% Residences Inflation mnpwuded annually on base Price al 2.00% 2.00% 2005 2004 2006 0 240,292 0 0 173,010 0 0 0 0 7.96% 0 2005 2007 36 245.098 8,823,528 0 176,470 0 36 8.823.528 8,823.528 7.96% 702,353 2006 2008 72 250,000 18,000,000 22 180,000 3.960,000 94 21,960,000 176,471 30,959,999 7.96% 2,464,416 2007 2009 72 255,000 18,360,000 84 183,600 15.422,400 156 33,782,400 64,742,399 7.96% 5,153,495 2008 2010 72 260,100 18,727.200 84 187,272 15.730.848 156 34,458,048 1,294,848 100,495,295 7.96% 7,999.425 2009 2011 72 265,302 19,101,744 40 191.017 7.640,680 112 26,742,424 127,237.719 7.96% 10.128,122 2010 2012 29 270,608 7,847,632 0 194,837 0 29 7,847,632 2,544,754 137,630.105 7.96% 10.955,356 2011 2013 0 0 137,630,105 7.96% 10,955,356 2012 2014 0 0 2,752,602 140,382,707 7.96% 11,174.463 2013 2015 0 0 140.382,707 7.96% 11,174,463 2014 2016 0 0 2,807,654 143,190,361 7.96% 11,397,953 2015 2017 0 0 143,190,361 7.96% 11.397,953 2016 2018 0 0 2,863,807 146,054,168 7.96% 11,625.912 2017 2019 0 0 146,054,168 7.96% 11,625,912 2018 2020 0 0 2,921,083 148.975,251 7.96% 11,858.430 2019 2021 0 0 118,975,251 7.96% 11.858.430 2020 2022 0 0 2,979,505 151,954,756 7.96% 12,095,599 2021 2023 0 0 151,954,756 7.96% 12,095,599 2022 2024 0 0 3,039,095 154.993,851 7.96% 12.337,511 2023 2025 0 0 154,993,851 7.96% 12,337,511 2024 2026 0 0 3,099,877 158,093,728 7.96% 12,584.261 2025 2027 0 0 158,093,728 7.96% 12,584.261 2026 2028 0 0 3,161,875 161,255,603 7.96% 12,835,946 2027 2029 0 0 161,255,603 7.96% 12,835,946 I 2028 2030 0 0 3,225,112 164,480,715 7.96% 13,092.665 2029 2031 0 0 164,480,715 7.96% 13,092,665 2030 2032 0 0 3,289,614 167,770,329 7.96% 13,354,518 2031 2033 0 0 167,770,329 7.96% 13,354,518 2032 2034 0 0 3.355,407 171,125,736 7.96% 13,621,609 2033 2035 0 0 171,125,736 7.96% 13,621,609 2034 2036 0 0 3,422,515 174,548.251 7.96% 11,894,041 2034 2037 0 0 174,548,251 7.96% 13,894,041 353 I 90.860,100 230 I 42,753.928 583 ' ' 133,614,032 40,934,219 This financial information should be read only in connection with the accompanying Sunmury of Significant Forecast Assumptions and Accounting Policies and Accountant's Report • I I I I I I I I I I I I I I 1 1 I 1 I COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT (IN THE FORMATION STAGE OF DEVELOPMENT) I Pate 5 I FORECASTED SURPLUS CASH BALANCES AND CASH RECEIPTS AND DISBURSEMENTS GENERAL AND DEBT SERVICE FUNDS ONLY SCHEDULE OF ESTIMATED ASSESSED VALUATION (Page 2 of 2 - Continued from Page 4) AS OF THE DATE OF FORMATION AND FOR THE CALENDAR YEARS ENDING THROUGH 2037 Annual Undeveloped Residential Land Number of Planed/ Less: Less: Annual Cumulative Estimated LAND TOTAL Construction Collection Developed Partially Lots Developed Los Taken Market Market Value Land ASSESSED ASSESSED Collection Year Year SF and MF Finished Lots @ Developed @ Lots @ Down @ Value for of Land Assessment VALUATION VALUATION Yeas Vacant Lots 519,000 (519,000) 548,000 ($48000) Assessment Ratio 2005 0 0 29,00% 0 0 2005 2004 2006 0 6,707,000 0 0 0 6.707,000 6,707,000 29.00% 1,945,030 1,945 030 2006 2005 2007 150 4,370,000 (2,850,000) 7.200,000 (1,728,000) 6,992,000 13,699,000 29.00% 3,972,710 4,675,063 2007 2006 2008 150 (2,850,000) 7,200,000 (4,512,000) (162,000) 13,537,000 29.00% 3,925,730 6,390,146 2008 2007 2009 100 (1,900.000) 4,800,000 (7,488,000) (4.588,000) 8,949,000 29.00% 2.595,210 7,748,705 2009 2008 2010 106 (2,014.000) 5,088,000 (7,488,000) (4,414.000) 4.535,000 29.00% 1,315,150 9,314.575 2010 2009 2011 77 (1.463,000) 3,696,000 (5,376.000) (3.143,000) 1.392,000 29.00% 403,680 10.531,802 2011 2010 2012 0 0 (1,392,000) (1,392,000) 0 29.00% 0 10 955,356 2012 2011 2013 0 0 29.00% 0 10,955.356 2013 2012 2014 0 0 29.00% 0 11,174.463 2014 2013 2015 0 0 29.00% 0 11,174,463 2015 2014 2016 0 0 29.00% 0 11,397,953 2016 2015 2017 0 0 29.00% 0 11,397,953 2017 2016 2018 0 0 29.00% 0 11,625,912 2018 2017 2019 0 0 29.E 0 11.625,912 2019 2018 2020 0 0 29.00% 0 11,858,430 2020 2019 2021 0 0 29.00% 0 11.858,430 2021 2020 2022 0 0 29.00% 0 12.095,599 2022 2021 2023 0 0 29.00% 0 12,095,599 2023 2022 2024 0 0 29.00% 0 12.337,511 2024 2023 2025 0 0 29.00% 0 12,337,511 2025 2024 2026 0 0 29.00% 0 12,584,261 2026 2025 2027 0 0 2900% 0 12,584.261 2027 2026 2028 0 0 29.00% 0 12.835,946 2028 2027 2029 0 0 29.00% 0 12.835,946 2029 2028 2030 0 0 29.00% 0 13,092,665 2030 2029 2031 0 0 29.00% 0 13,092,665 2031 2030 2032 0 0 29.00% 0 13.354,518 2032 2031 2033 0 0 29.00% 0 13.354,518 2033 2032 2034 0 0 2900% 0 13.621,609 2034 2033 2035 0 0 2900. 0 13.621,609 2035 2034 2036 0 0 29.00% 0 ❑,894,041 2036 2035 2037 0 0 29 00% 0 13.894,041 2037 583 11,077,000 (11,077,000) 27,984,000 (27,984,000) 0 This f uncial infomution should be read only in connection with the accompanying Summary of Significant Forecast Assumptions and Accounting Policies and Accountant's Report • 1 1 1 1 1 I I I I I I 1 I I 1 1 I 1 1 COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT (IN THE FORMATION STAGE OF DEVELOPMENT) I Paee 6 I FORECASTED SURPLUS CASH BALANCES AND CASH RECEIPTS AND DISBURSEMENTS GENERAL AND DEBT SERVICE FUNDS ONLY SCHEDULE of ESTIMATED BOND DEBT SERVICE REQUIREMENTS AS OF THE DATE OF FORMATION AND FOR THE CALENDAR YEARS ENDING THROUGH 2037 Series 2005 Bond Inge Dated: Deeember 1,2005 $2,500,100 Issued: D:t:ber I,2005 Principal payments due on December I buret Rate: 7.500% Reduce Debt Service By. Net Total Debt Service Reserve Fund Capitalized 2005 Bonds Year Principal Coupon Interest Debt Swice Release I Interest Interest Debt Sanke Year (See Page 7 (See Page 7) IS:Page s) 2006 7.500% 187,500 187.500 (4,533) (182,967) 0 2006 2007 7.500% 187,500 187,500 (4,533) (104,073) 78,894 2007 2008 7.500% 187,500 187,500 (4,533) 182,967 2008 2009 7.500% 187,300 187.500 (4,5331 112.967 209 2010 35,000 7.500% 187,500 222,500 (4,533) 2I 7,967 2010 2011 35,000 7.500% 184,875 219,875 (5,000) (4,533) 210.342 2011 2012 35,000 7.500% 182,250 217.250 (4,433) 212,817 2012 2013 40,000 7.500% 179,625 219,625 (5,000) (4,433) 210.192 2013 2014 40,000 7500% 176,625 216,625 (5,000) (4,333) 207,292 2014 2015 45,000 7.500% 173.625 218,625 (5,000) (4.233) 209,392 2015 2016 45,000 7.5105E 170,250 215,250 0 (4,133) 211,1❑ 2016 2017 50,000 7.500% 166,875 216,875 (5,000) (4,133) 207,742 2017 2018 65,000 7.500% 163,125 228,125 (10,000) (4.033) 214,092 2018 2019 65,000 7.500% 158,250 223,250 (5,000) (3,833) 214,417 2019 2020 65,000 7.500% 153,375 218,375 (5.0001 (3.➢3) 209.642 2020 2021 65,000 7.500% N8,500 213,500 (5,000) (3,633) 204,867 2021 2022 75,000 7.500% 143,625 218,625 (5,000) (3,5331 210,092 2022 2023 80,000 7510% 138,000 218,000 (10,000) (3,433) 204,567 2023 2024 90,000 7.500% 132,000 222,000 (5,000) (3,233) 213,767 2024 2025 95,000 7.500% 125,250 220250 (10,000) (3,133) 207,117 2025 2026 105,000 7.500% 118,125 223,125 (10,000) (2,933) 210,192 2026 2027 115,000 7.5010% 110.250 225,251 (10,000) (2,733) 212,517 2027 2028 125,000 7.500% 101,625 226,625 (10,000) (2,533) 210092 2028 2029 135,000 7.500% 92,250 227,250 (15,000) (2,333) 209,917 2029 2030 145,000 7500% 82,125 227,125 (10,000) (2,033) 215,092 2030 2031 165,000 7.500% 71,250 236,250 (15,000) (1.833) 219,417 2031 2032 175,000 7.500% 58,875 233,875 (20,000) (1,533) 212,342 2032 2033 190,000 7500% 45,750 235,750 (15,000) (1,133) 2)9,617 2033 2034 200,000 7500% 31,500 231,500 (20,000) (833) 210,667 2034 2035 220,000 7.501% 16,500 236,500 01,625) (433) 214,442 2035 2,5006001 I 4,062,000 6,562.000 (226,625) (99.790) (287,040) 5.948,545 USE OF PROCFFDS. Corniest ion Casts 1.446,784 Contribution to Town(3989,647•45%) 445.341 Capitalized Interest 281.250 Interest Earnings at @ 2 000% Debt Service Reserve Fund 226,625 Inteerea Earnings at(4 2 000% Iunance Cast(400%) 100,000 32,500,000 This financial information should be read only in connection with the accompanying Sunalary of Significant Forecast Assumptions and Accounting Policies and Aceaalmh Report G wk24811accservlprotec02004 Forecast\ 84:44.41 inn;twinCottonwood Hollow Forecast I012-04-Resid-FINAL I I 1 ) I I I I I I I I I I I I I 1 1 COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT (IN THE FORMATION STAGE OF DEVELOPMENT) Page 7 i FORECASTED SURPLUS CASH BALANCES AND CASH RECEIPTS AND DISBURSEMENTS GENERAL AND DEBT SERVICE FUNDS ONLY . SCHEDULE OF DEBT SERVICE RESERVE FUND AS OF THE DATE OF FORMATION AND FOR THE CALENDAR YEARS ENDING THROUGH 2037 • CALCULATION of DEBT SERVICE RESERVE FUND on SERIES 2005 BOND ISSUANCE Beginning Debt Service Release Ending Interest at Date Balance Reserve from Reserve Balance 2.00% 12/01/2005 0 226,625 226,625 12/01/2006 226,625 0 226,625 4,533 12/01/2007 226,625 0 226,625 4,533 12/01/2008 226,625 0 226,625 4,533 12/01/2009 226,625 0 226,625 4,533 12/01/2010 226,625 0 226,625 4,533 12/01/2011 226,625 (5,000) 221,625 4,533 12/01/2012 221,625 0 221,625 4,433 12/01/2013 221,625 (5,000) 216,625 4,433 12/01/2014 216,625 (5,000) 211,625 4,333 12/01/2015 211,625 (5,000) 206,625 4,233 12/01/2016 206,625 0 206,625 4,133 12/01/2017 206,625 (5,000) 201,625 4,133 • 12/01/2018 201,625 (10,000) 191,625 4,033 12/01/2019 191,625 (5,000) 186,625 3,833 12/01/2020 186,625 (5,000) 181,625 3,733 12/01/2021 181,625 (5,000) 176,625 3,633 12/01/2022 176,625 (5,000) 171,625 3,533 12/01/2023 171,625 (10,000) 161,625 3,433 12/01/2024 161,625 (5,000) 156,625 3,233 12/01/2025 156,625 (10,000) 146,625 3,133 12/01/2026 146,625 (10,000) 136,625 2,933 12/01/2027 136,625 (10,000) 126,625 2,733 12/01/2028 126,625 (10,000) 116,625 2,533 12/01/2029 116,625 (15,000) 101,625 2,333 12/01/2030 101,625 (10,000) 91,625 2,033 12/01/2031 91,625 (15,000) 76,625 1,833 12/01/2032 76,625 (20,000) • 56,625 1,533 12/01/2033 56,625 (15,000) 41,625 1,133 12/01/2034 41,625 (20,000) 21,625 833 12/01/2035 21,625 (21,625) 0 433 226,625 (226,625) 99,790 This financial information should be read only in connection with the accompanying Summary of Significant Forecast Assumptions and Accounting Policies and Accountants Report. I 1 1 I I 1 I 1 I 1 1 I I I 1 I I 1 ) COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT (IN THE FORMATION STAGE OF DEVELOPMENT) L Pane 8 FORECASTED SURPLUS CASH BALANCES AND CASH RECEIPTS AND DISBURSEMENTS GENERAL AND DEBT SERVICE FUNDS ONLY SCHEDULE OF CAPITALIZED BOND INTEREST AS OF THE DATE OF FORMATION AND FOR THE CALENDAR YEARS ENDING THROUGH 2037 CALCULATION of CAPITALIZED INTEREST on SERIES 2005 BOND ISSUANCE Beginning Capitalized Interest at Disbursements Ending Date Balance Interest 2.00% (See Page 6) Balance 12/01/2005 0 281,250 • 281,250 6/01/2006 281,250 2.813 (91,484) 192,579 12/01/2006 192,579 1,926 (91,483) 103.022 6/01/2007 103,022 1,030 (91,484) 12,568 12/01/2007 12,568 21 (12,589) 0 281,250 5,790 (287,040) This financial information should be read only in connection with the accompanying Summary of Significant Forecast Assumptions and Accounting Policies and Accountant's Report. 1 1 - 7 1 1 1 1 1 1 I '1 1 1 1 I COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT (IN THE FORMATION STAGE OF DEVELOPMENT) I Pate 9 I FORECASTED SURPLUS CASH BALANCES AND CASH RECEIPTS AND DISBURSEMENTS GENERAL AND DEBT SERVICE FUNDS ONLY SCHEDULE of ESTIMATED BOND DEBT SERVICE REQUIREMENTS AS OF THE DATE OF FORMATION AND FOR THE CALENDAR YEARS ENDING THROUGH 2037 Series 2007 Bond Islet Dated: Dauber 1,2007 1.3,225,000 Imbed: December 1,2007 Pnixiyd payments due on December I. latest Rift: 7.500% Reduce Debt Service By Net Taal Debi Soria Rouse Fund Capitalized 2007 Bonds Yoe Principal Coupon Interest Otto Service Release I Iniaai INaai Debt Service Year (Sec Page 10)(Sec Page 10) (Sec Page II) 2008 7.500% 241875 241,895 0 (6,450) (235.425) 0 2008 2009 0 7 500% 241,175 241.875 0 (6,4501 (134.867) 100,558 2009 2010 0 7500% 241,05 241.875 0 (6,450) 235.425 2010 2011 0 9500% 241,05 241.875 0 (6,450) 235.425 2011 2012 20,000 1 500% 241,175 261.05 0 (6,450) 255.425 2012 2013 30,000 7.500% 240,375 270,395 (5,000) (6.450) 258925 2013 2014 30,000 7500% 238.125 268.125 0 (6,350) 261.775 2014 2015 35,000 7.500% 235,875 270,875 (UDR (6,350) 259.525 2015 2016 35000 7.MD% 233,250 268,250 (5,000) (6,250) 257,000 2016 2017 35,000 7.500% 230,625 265,625 0 (6.150) 259,475 2017 2018 35,000 7.500% 228,000 263,001 (5,000) (6,150) 251,850 2018 2019 40.000 7 500% 225,375 265175 (5,000) (6,050) 254.325 2019 2020 45.000 75 222,375 267,375 (5,000) (5950) 256.425 2020 2021 55.000 7.5004 219,000 274,000 (5,00) (5,850) 263,150 2021 2022 55.000 7500% 214,875 269,05 (5,000) (5750) 259.125 2022 2023 65,000 7.500% 210,750 295750 (5,000) (5,650) 265,100 2023 2024 75,000 7.5004 205,875 210,875 (10,000) (5,550) 265,325 2024 2025 90,000 7 500% 200250 290,250 (5,000) (5,350) 279,900 2025 2026 110.000 7.500% 193,500 303,500 (15,000) (5150) 20,250 2026 2027 115,000 7.500% 185,250 300,250 (10,000) (4,950) 285,300 2027 2028 135.000 7500% 176,625 311,625 (15,000) (4,750) 291,875 2028 2029 155,000 7.500% 166,500 321,500 (15,000) (4,450) 302,050 2029 2030 160,000 7.500% 154,875 314,875 (15,000) (4.150) 295,725 2030 2031 185,000 7.500% 142975 327,875 (20,000) (3950) 301.025 2031 2032 205,000 7 500% 129,000 334.000 (20,000) (3.450) 310,550 2032 2033 215,000 7 500% 113,625 328,625 (20,000) (3,050) 305,575 2033 2034 245,000 7500% 97,500 342,500 (25,000) (2,650) 314,150 2034 2035 260,000 9.500% 79.125 339,125 (25,000) (2,150) 311,975 2035 2036 380,000 7.510% 59,625 439,625 (40.000) 0,650) 397,975 2036 2039 415,000 7.500% 31,125 446,125 (42,500) (850) 402,975 2037 3,225,0001 I 5,643.950 8,868.750 (322,500) (151,303) 090192E 8,024.658 USF OF PROCFFDS. Carcuaaiol Costs 1,166,382 Canibalon to Town(8989,647•55%1 544,30 Capitalized Warn 362,813 Interest Earnings al at 2 000% Debi Soviet Reserve Fund 322.500 Intel Earnings as(a 2000% Issuance Costs(400%) 129,000 83.225.000 This financial infanwan should be read oily in conaiian with the accompanying Summery of Significant Fbrecasi ANumptioa and Accounling Policies and Accountants Report I 1 1 I 1 I I I I I. I I I I 1 1 ' 1 1 COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT (IN THE FORMATION STAGE OF DEVELOPMENT) Page 10 FORECASTED SURPLUS CASH BALANCES AND CASH RECEIPTS AND DISBURSEMENTS GENERAL AND DEBT SERVICE FUNDS ONLY SCHEDULE OF DEBT SERVICE RESERVE FUND AS OF THE DATE OF FORMATION AND FOR THE CALENDAR YEARS ENDING THROUGH 2037 • CALCULATION of DEBT SERVICE RESERVE FUND on SERIES 2007 BOND ISSUANCE Beginning Debt Service Release Ending Interest at Date Balance Reserve from Reserve Balance 2.00% 12/01/2007 0 322,500 322,500 12/01/2008 322,500 0 322,500 6,450 12/01/2009 322,500 0 322,500 6,450 12/01/2010 322,500 0 322,500 6,450 12/01/2011 322,500 0 322,500 6,450 12/01/2012 322,500 0 322,500 6,450 12/01/2013 322,500 (5,000) 317,500 6,450 12/01/2014 317,500 0 317,500 6,350 12/01/2015 317,500 (5,000) 312,500 6,350 12/01/2016 312,500 (5,000) 307,500 6,250 12/01/2017 307,500 0 307,500 6,150 12/01/2018 307,500 (5,000) 302,500 6,150 12/01/2019 302,500 (5,000) 297,500 6,050 12/01/2020 297,500 (5,000) 292,500 5,950 12/01/2021 292,500 (5,000) 287,500 5,850 12/01/2022 287,500 (5,000) 282,500 5,750 12/01/2023 282,500 (5,000) 277,500 5,650 12/01/2024 277,500 (10,000) 267,500 5,550 12/01/2025 267,500 (5,000) 262,500 • 5,350 12/01/2026 262,500 (15,000) 247,500 5,250 12/01/2027 247,500 (10,000) 237,500 4,950 12/01/2028 237,500 (15,000) 222,500 4,750 12/01/2029 222,500 (15,000) 207,500 4,450 12/01/2030 207,500 (15,000) 192,500 4,150 12/01/2031 192,500 (20,000) 172,500 3,850 12/01/2032 172,500 (20,000) 152,500 3,450 12/01/2033 152,500 (20,000) 132,500 3,050 12/01/2034 132,500 (25,000) 107,500 2,650 12/01/2035 107,500 (25,000) 82,500 2,150 12/01/2036 82,500 (40,000) 42,500 1,650 12/01/2037 42,500 (42,500) 0 850 322,500 (322,500) 151,300 This financial information should be read only in connection with the accompanying Summary of Significant Forecast Assumptions and Accounting Policies and Accountant's Report. I I I ► 1 I I I I 1 ► 1 I 1 1 1 ► I ► • COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT (IN THE FORMATION STAGE O1 DEVELOPMENT) Poet I I FORECASTED SURPLUS CASH BALANCES AND CASH RECEIPTS AND DISBURSEMENTS GENERAL AND DEBT SERVICE FUNDS ONLY SCHEDULE OF CAPITALIZED BOND INTEREST AS OF THE DATE OF FORMATION AND FOR THE CALENDAR YEARS ENDING THROUGI 12037 CALCULATION of CAPITALIZED INTEREST on SERIES 2007 BOND ISSUANCE Beginning Capitalized Interest at Disbursements Ending Date Balance Interest 2.00% (See Page 9) Balance 12/01/2007 0 362,813 362,813 6/01/2008 362,813 3,628 (117,713) 248,728 12/01/2008 248,728 2,487 (117,712) 133,503 6/01/2009 133,503 1,335 (117,713) 17,125 12/01/2009 17,125 29 (17,154) 0 362,813 7,479 (370,292) This financial information should be read only in connection with the accompanying Summary of Significant Forecast Assumptions and Accounting Policies and Accountant's Report. COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT (In the Formation Stage of Development) SUMMARY OF SIGNIFICANT FORECAST ASSUMPTIONS - AND ACCOUNTING POLICIES October 12, 2004 NOTE 1) NATURE AND LIMITATION OF FORECAST This forecast of financial information is for the purpose of a financial analysis of the proposed financial plan of Cottonwood Hollow Residential Metropolitan District (the "District") (in the Formation Stage of Development), located in the Town of Firestone (the "Town") in Weld County, Colorado. It is to display how the proposed facilities and services are currently anticipated to be provided and financed. This financial forecast presents, to the best knowledge and belief of Management of the District, the District's expected cash position and results of cash receipts and disbursements for the forecasted periods. Accordingly, the forecast reflects Management's judgement, as of October 12, 2004, the date of this forecast, the expected conditions within the District and the District's expected course of action. The assumptions disclosed herein are those that Management believes are significant to the forecast, however, they are not all-inclusive. There usually may still be differences between forecasted and actual results, because events and circumstances frequently do not occur as expected, and those differences may be material. The forecast is expressed in terms of 2004 dollars, with the only adjustments for inflation as follows. The market values of residential properties are forecasted to increase 2.00% per year, starting in 2005 through build-out. The market values of residential properties are forecasted to increase 2.00%biennially pursuant to the reassessment of property required by State statute. The residential assessment ratio is assumed to remain constant for collection year 2004 and beyond, based upon information as explained in Note 5. The assessment ratio for raw ground and developed lots is assumed to remain at a constant 29% for the entire forecast period in accordance with historical trends. Administrative costs in the General Fund are assumed to increase by 2.00%per year beginning in 2006. Page 12 COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT (In the Formation Stage of Development) SUMMARY OF SIGNIFICANT FORECAST ASSUMPTIONS AND ACCOUNTING POLICIES October 12, 2004 NOTE 2) ORGANIZATION The Petitioners for the formation of the District, a quasi-municipal corporation and political subdivision of the State of Colorado, are in the process of organization. The District will be governed pursuant to provisions of the Colorado Special District Act (Title 32). The District will operate under a service plan approved by the Town. The District's service area will contain approximately 146.03 acres of real property located entirely within the Town. The District is being established primarily to provide for financing, construction, acquisition and installation of streets, street lighting, traffic and safety controls, water, landscaping, storm drainage, and park and recreation improvements and facilities within the boundaries of the District. The District will also be authorized to finance park, recreation or other capital improvements of the Town that are identified by the Town and located outside of the District. The operation and maintenance of these services and facilities is anticipated to be provided by the Town or other entities, and not by the District. As set forth in this forecast, the District is forecasted to issue $5,725,000 of debt between two bond issues. However, the Service Plan may have a higher debt amount to allow for an under estimate of valuations in this forecast. Formation of the District is intended to be timed to allow for the proper legislative,judicial and election process to be completed in order for the District's electors to be able to vote for the authorization of debt and TABOR questions in November 2004, and to certify tax levies for tax collections in 2006. The Petitioners expect the favorable approval at the election since they constitute the majority of the current eligible electors within the proposed District's boundaries. NOTE 3) PETITIONERS FOR FORMATION The Petitioners for Formation of the District are principals of the company that intends to develop the property included within the boundaries of the District. The developer of the District is Del Camino East Properties, L.L.C., a Colorado limited liability company (the "Developer"). The Developer anticipates developing approximately 146.03 acres within the District. The Developer has provided the information regarding the number of units estimated to be built each year and the initial sales values for the residential properties to be developed in the District, based upon their knowledge and experience in developing other properties. The Developer anticipates that sales values will be increased by 2.00% for each year beyond 2004. Page 13 COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT (In the Formation Stage of Development) SUMMARY OF SIGNIFICANT FORECAST ASSUMPTIONS AND ACCOUNTING POLICIES October 12, 2004 NOTE 4) BASIS OF ACCOUNTING The basis of accounting for this forecast is the cash basis, which is a basis of accounting that is different from that allowed by the generally accepted accounting principles under which the District will prepare its financial statements. NOTE 5) PROPERTY TAXES The primary source of revenue or cash receipts will be ad valorem property taxes. Property taxes are to be determined annually by the District's Board of Directors and set by County Commissioners as to rate or levy based upon the assessed valuation of the property within the District. The Weld County Assessor determines the assessed valuation. The levy is expressed in terms of mills. A mill is 1/1,000 of the assessed valuation. The forecast assumes that the District will be able to set its initial mill levy at 45.979 mills for collection in 2006, for the combined purposes of debt service and administration. The initial mill levy for the General Fund is forecasted to be reduced to lower levels in future years as displayed in the forecast, while the Debt Service Fund mill levy is assumed to remain constant throughout the forecast period. The Gallagher Amendment states that residential assessed values Statewide must be approximately 45% of total assessed values. When the market values of residential property increase faster than the values of nonresidential property, the residential assessment ratio must decline to keep the 45 percent/55 percent ratio. According to information as set forth in the Colorado Legislative Council Staff Forecasts entitled "Assessed Value and Property Tax Projections" issued in December 2003, the residential assessment ratio is projected to decline from the current 7.96% in 2003 (for collection in 2004), to 7.64% in 2005, 7.43% in 2007, and 7.13% in 2009. The projections of the Legislative Council Staff are estimates only, do not have the force of law, and may or may not occur as projected. This forecast has included the current residential assessment ratio of 7.96% effective for collections in 2006 and throughout the term of the forecast period, since it is assumed that the District's Board will increase the mill levy, to maintain a mill levy that produces tax revenue in relation to current assessed valuation equivalent to revenue generated by the initial levy of 45.979 mills as forecasted for collection year 2006. Per the District's Service Plan, the maximum mill levy for administration and operating expenses is 6 mills, as adjusted by the Gallagher adjustment. The Limited Mill Levy for the purpose of debt service is 50 mills, as adjusted by the Gallagher adjustment. Page 14 COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT (In the Formation Stage of Development) SUMMARY OF SIGNIFICANT FORECAST ASSUMPTIONS AND ACCOUNTING POLICIES October 12, 2004 NOTE 5) PROPERTY TAXES (continued) The assessed valuation for the District is dependent upon the build-out schedule of the residential properties within the District. Management of the District has based the estimate of build-out on their forecasted build-out schedule. The forecasted development build-out schedule and conversion to assessed valuation is presented as a schedule (see pages 4 through 5). The assessed valuation rate for raw ground and developed lots is 19% until a home is constructed. All residential property has been assumed to be assessed at the residential property rates as explained above. Increases to valuation for platted and partially finished lots and for the development of infrastructure within the District for developed lots held for build-out are included in the forecasted assessed valuation. No assessed valuation has been assumed for State Assessed property that may be owned by public utilities within the District. The beginning assessed value of the land totaling 146.03 acres, which constitutes the District, has been deemed to be immaterial for purposes of the forecast. The property taxes resultant from the above mill levy and assessed valuation have been reduced for the Weld County Treasurer's 1.5% fee for collection of the taxes, and further reduced by 0.5%to allow for uncollectible taxes. NOTE 6) SPECIFIC OWNERSHIP TAXES Specific ownership taxes are set by the State and collected by the County Treasurer, primarily on vehicle licensing within the County as a whole. The specific ownership taxes are allocated by the County Treasurer to all taxing entities within the County. The forecast assumes that the District's share will be equal to approximately 10% of the total property taxes collected by the General and Debt Service Funds and will be allocated entirely to the General Fund. NOTE 7) DEVELOPER ADVANCES The forecast assumes that the Developer will advance funds needed for organizational and construction costs to the District (see Note 11). To the extent that bond proceeds are available for organizational and construction payments in any year, the Developer advance would be _ reduced accordingly. In addition, to the extent that there are surplus cash balances that can be applied towards reducing any Developer advance without creating future cash deficits, the Developer advances will be reduced accordingly. Page 15 COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT (In the Formation Stage of Development) SUMMARY OF SIGNIFICANT FORECAST ASSUMPTIONS AND ACCOUNTING POLICIES October 12, 2004 NOTE 7) DEVELOPER ADVANCES (continued) The forecast does not display cash receipts for Developer advances for construction costs and bond proceeds available for construction costs nor cash disbursements for construction costs. Accordingly, the forecast assumes that any Developer advances for construction will be repaid from bond proceeds and that construction costs will be funded by Developer advances and / or bond proceeds. Any Developer advances which cannot be reimbursed will be treated as developer contributions. Under the terms of the Service Plan, the District may issue construction financing notes to the Developer and such notes may not bear interest. NOTE 8) DEVELOPER CONTRIBUTIONS The forecast assumes that the Developer will contribute funds to the District for administrative costs as shown on the summary page for the General Fund of the forecast. NOTE 9) INTEREST INCOME The forecast includes interest income earned on monies that are forecasted to be on deposit or invested by the District at the prior year-end at an interest rate of 2.00%. Bond proceeds are expected to be used to establish a debt service reserve fund. Amounts from the debt service reserve fund may be released as the outstanding principal balance of the bonds is reduced. Such release amounts and interest earned on monies deposited in the debt service reserve fund at an interest rate of 2.00% have been included in the debt service schedule. The calculation of these release amounts and interest earnings are displayed as separate Schedules of Debt Service Reserve Funds(see pages 7 and 10). Additional interest earned on deposits from bond proceeds, for payment of bond interest expense during an initial period (capitalized interest), has been included in the debt service schedule at 2.00%. The calculation of this interest is also shown as separate Schedules of Capitalized Bond Interest(see pages 8 and 11). Page 16 COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT (In the Formation Stage of Development) SUMMARY OF SIGNIFICANT FORECAST ASSUMPTIONS AND ACCOUNTING POLICIES October 12, 2004 NOTE 10) ADMINISTRATIVE DISBURSEMENTS Administrative expenditures include the services necessary to maintain the District's administrative viability such as legal, accounting and audit, general engineering, insurance, banking, meeting expense, and other administrative expenses. Administrative costs have been included in the forecast at $50,000 per year in 2004 and 2005. Beginning in 2006, these disbursements have been increased for inflation by 2% per year throughout the term of the — forecast. These administrative services are necessary as long as bonds are outstanding throughout the life of the District. NOTE 11) INFRASTRUCTURE IMPROVEMENTS The estimated cost of the capital infrastructure improvements is $4,386,518, plus approximately $989,647 to be paid to the Town's capital improvement fund, as expressed in 2004 dollars. The forecast assumes that the Developer will advance funds for all infrastructure costs and be reimbursed from bond proceeds to the extent bonds can be issued, which may be less than the total eligible costs. The capital infrastructure costs per the engineering estimate exceed the amount that can be reimbursed to the Developer under this Plan. Management expects that the District will allow the Developer to: either advance funds to the District; or to actually construct the improvements under the District's supervision, for reimbursement by the District upon completion of the improvements to the extent bondable; or to contribute funds to the District, should costs exceed the District's capacity for repayment of such costs. The reimbursement of any additional costs is subject to the District's authorized indebtedness and other revenue available to the District. The amount of infrastructure costs not bondable within the limits of the proposed Service Plan would remain a responsibility of the Developer. There may be additional construction costs in the future. Page 17 ^ COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT (In the Formation Stage of Development) SUMMARY OF SIGNIFICANT FORECAST ASSUMPTIONS AND ACCOUNTING POLICIES October 12, 2004 NOTE 12) DEBT SERVICE The District anticipates issuing general obligation bonds on December 1, 2005, in the amount of $2,500,000 and on December 1, 2007, in the amount of$3,225,000. The proceeds of such debt will be used for issuance costs, capitalized interest, to establish debt service reserve funds for both bond issues, and to fund the cost of capital infrastructure improvements or to reimburse the Developer for the advancement of those funds, to the extent possible. The bonds are assumed to bear interest at an estimated rate of 7.50%. The bond interest is payable semi-annually on June 1 and December 1, with annual principal payments on December 1 of each year. The bonds anticipate starting interest repayments on June 1, 2006 for the Series 2005 bonds and on June 1, 2008 for the Series 2007 Bonds, and per the scheduled maturities are payable over 30-year periods, with final payments on December 1, 2035 and 2037,respectively. Assumptions related to debt principal amounts, bond interest rates, issuance costs, capitalized interest amounts and related interest earned at 2.00%, debt service reserve funds and related interest earned at 2.00%, and other related debt service costs for the proposed Series 2005 and Series 2007 Bonds have been provided to Management by Fulton Partners Investments, a division of Bathgate Capital Partners, the proposed underwriter of the proposed bond issuances of the District. This information should be read in connection with the accompanying Accountant's Report and forecast of financial information. ^ Page 18 metrostudy Housing Starts Here 5300 DTC Parkway,suite 350 Greenwood Village,CO 80111 phone 720.493.2020 fax 720.493.9222 October 20, 2004 web www.metrostudy.com City Officials Town of Firestone, Colorado 151 Grant Ave Firestone, Colorado 80525 Re: Cottonwood Hollow Subdivision To whom it may concern, Del Camino East Properties, LLC, the developer of the above referenced subdivision, has asked that Metrostudy confirm the estimates of reasonable lot absorptions and valuations for the proposed development. Metrostudy conducts a quarterly lot by lot survey of all new home developments in the ten count Front Range region and compiles this information to analyze the homebuilding market. Our data is based exclusively on primary research and we do not rely on any third party data to compile our information. Utilizing our data, we have reviewed the submarket surrounding Cottonwood Hollow and feel that the absorptions and price estimates forecasted in the Cottonwood Hollow Metropolitan District proformas, which are also in the table below, are possible. The projections are based on Cottonwood Hollow having at least four simultaneous unique builder programs that would cover the price spectrum from $175,000 to $275,000 and include townhome style product, cluster homes, starter single family and move-up single family product. Year Total New Single Annual Value of Average Value of Family Residences Residential Units Residential Units 2006 36 $8,823,528 $245,098 2007 94 $21,960,000 $233,617 2008 156 $33,782,400 $216,554 2009 156 $34,458,048 $220,885 2010 112 $26,742,424 $238,772 2011 29 $7,847,632 $270,608 If you have any questions or require additional information, please feel welcome to call me directly at 720.493.2020. Respectfully submitted, Wayde Jester, Market Analyst Metrostudy Del Camino East Properties, LLC. 9116 W. Bowles Ave. Unit 15 Littleton, Colorado 80123 July 15, 2004 Board of Trustees Town of Firestone Post Office Box 100 Firestone, Colorado 80520 • RE: Metro Study Analysis of Absorption Potentials Cottonwood Hollow development Dear Town Trustees: We have reviewed the above-referenced study conducted by Metro Study and support its findings. The Analysis of Absorption Potentials also satisfactorily confirms our projections and we request that it be admitted as a part of the Cottonwood Hollow Residential Metropolitan District formation application. Please do not hesitate to call with any questions you have about this correspondence. Very truly yours, DEL CAMINO EAST PROPERTIES, L.L.C., A Colorado limited liability company Miles R. Grant, Manager I 1 I 1 I I I I I I I 1 1 1 1 1 1 1 1 meyersgroup DuIdirg KnoMudge- MEYERS PROJECT SUMMARY REPORT MARKET NAME:Denver-Boulder-Greeley,CO COUNTY NAME:Weld,CO SUBMARKET NAME:South:Frederick/Firestone/Dacono All Housing Types , • January 2003-November 2003 THIS PERIOD OVERALL PROJECT FINISHED COST PER TYPICAL PROJECT I - PROJ OPEN DATE/ UNITS MONTHLY MONTHLY'UNSOLD BASE PRICE SO.FT. SO.FT. LOT SIZE BUILDER TYPE MAP CODE PLANNED NET RATE NET RATE UNITS RANGE RANGE RANGE (SOFT) COMMENTS South:Frededri/FVesteneIsoano OKMe SHARPE FARMSIRK:HMOND SF 03/21/2003 30 22 2.63 22 2.63 8 166,995-194.995 1,145-1.643 119-146 7200 Richmond Amara Homes 272 -NO - SHARPE FARMS SF 04/26/2003 40 16 2.23 16 2.23 24 213,950-249.950 1,729-2,598 96.132 7500 Woodvpl Homes 272 -NO SHARPE FARMWMOUNTAIN PEAK SF 02/2012003 43 0 0.00 0 0.00 43 194.500-232,000 1,232.2,039 110-158 7500 Needs Hanes 272 NO Oscan 113 38 1.53 38 1.53 75 166,996-249.950 1.145-2.596 96-158 Ede - - VISTA RIOGEID.R.HORTON SF 05103/2002 254 80 7.27 110 5.81 144 217,900-360.900 1,141-3.120 111-222 6600 D.R.Horan Hones 271 -NO VISTA POINTE/CLASSIC 8 SUMMIT SF 10/25/2002 321 57 5.18 66 4,99 255 251.950-337.450 1,665-3,251 104-159 10000 Melody Hones,Inc. 271 -NO ORCHARDS ATNSTARIDGEIWILDLIFE SF 012912003 172 43 131 43 5.31 129 252.990.276,990 1,583-2,458 112.160 8000 CanbneMai Homes 271 -NO GRANDVIEW/DIXOVERY/PREMIER SF 090112001 135 34 3.09 77 2.85 58 223,995-259.995 1.759-2,769 94-127 6750 KB Hare 271 -NO VISTA RIDGEIADVENTURE SERIES SF 06/21/2003 144 32 6.00 32 600 112 312,900-340,500 1,984-3.169 107.158 7745 Continental Homes 211 NO GRANOVIEWITOWNNOMES TH 09/01/2131 172 25 237 90 3.33 82 150.495-162,495 1.198.1,381 115-127 3200 KB Hone 271 -NO VISTA POINTEISUMMITS SF 01/15/2003 16 16 1.52 16 1.52 0 259,450-296.450 1,665-2,624 113.159 10000 Melody Homes,Inc. 271 -NO PEREGRINE AT VISTA RIDGE SF 0412612003 92 14 1.95 14 1.95 78 405,090-460,000 2,474-3,762 122-164 10800 John Lang Hansa 271 -NV NORTHRIDGE SF 01/1511999 65 2 0.25 65 1.17 . 0 346.950-474,770 1,923.2.996 136-203 11000 .PCO'10/03 Sheffield Hanes 271 -RD I Eels 1371 303 3M 513 . 2.97 858 150.495-474.770 1,141-3762 94.222 Firestone OAK MEADOWS II SF 06,15/2002 80 60 5.45 71 4.05 9 177,495-273,495 1.145-2,391 114-155 7500 i Richmond Amencan Homes 262 -NO ST.VRAIN RANCH/RIDGE CREST SF 07/15/1999 489 50 4.55 447 8.51 42 174,950-240,950 930'2.091 95-191 6500 U.S.Herne Corporason 262 -NO ST.VRAIN RANCH/CRYSTAL B VINTAGE SF 07/15/1999 400 38 3.45 325 6.18 75 203,990.281,990 1,547-2,534 107-145 7500 Ryland Homes 262 NO • • Copyright 2004 www-meyersgroup.com 1-800-MEYERS-7 All Rights Reserved-Meyers Real Estate Information,Inc. Page 1 of 3 01-14-2004 I 1 1 1 1 I I I I 1 1 1 I 1 1 1 1 1 1 meyersgroup Br KnoMadge. MEYERS PROJECT SUMMARY REPORT MARKET NAME:Denver-Boulder-Greeley,CO COUNTY NAME:Weld,CO SUBMARKET NAME:South:Frederick/Firestone/Dacono All Housing Types January 2003-November 2003 THIS PERIOD OVERALL 1 PROJECT FINISHED COST PER TYPICAL PROJECT I PROJ OPEN DATE I UNITS MONTHLY MONTHLY UNSOLD BASE PRICE SO.FT. SO.FT. LOT SIZE BUILDER TYPE MAP CODE PLANNED NET RATE NET RATE • UNITS RANGE RANGE RANGE (SOFT) COMMENTS BOOTH FARMSISUNRIDGEIHERITAGE♦AMERICAN SF 01/212001 70 12 1.09 56 1.63 14 192.995-291,995 1,293-2.669 106.164 7000 Richmond American Hones 262 440 MONARCH ESTATES/RHAPSODY SF 0001/2032 59 6 0.73 9 0.60 50 267,950.296,950 2,572-3,273 90.107 8500 U.S.Hone Corporation 262 -NO BOOTH FARMSISUNROGE/CRYSTAL SF 01101/2001 55 7 0.44 52 1.09 3 219,990-247,990 1,547.2,172 114.142 7000 Ryland Hones 262 -40 MONARCH ESTATESIANNIVERSARY SF 09012002 80 7 064 6 0.53 72 233,950-263,950 1.685-2,491 106.145 7800 U.S.Home Corporation 262 -NO MOUNTAIN SHADOWS SF 0510312003 259 7 1.01 7 1.01 252 215,400-269.900 1.752.3.130 83-125 9200 Neumann Hones 262 400 . BOOTH FARY818UNRIDGEINFINITY SF 0121,001 27 6 0.65 27 0.79 0 255,995-282.995 2.045.2,728 104-125 7000 Rirhmd Minn Hones 282 NO SOOTH FARM623UNRIDGEMNTAGE SF 0901/2001 50 4 0.36 50 1.43 0 248.990-275,990 1.000-2.534 109.138 7000 . Ryland Noma 262 -NO OAK MEADOWSIPARKSIDE SF 02/01/2002 14 3 0.34 14 0.74 0 223,050-281.660 1,777-2,490 105.128 7340 PCO'01003 Parkin Horne 262 NO ST.VRAIN RANCHIGENESEE SF 02101/2002 17 2 0.16 9 0.41 6 289,900.329,900 2,126-2.738 119.138 6800 Geese Company,The 282 440 OAK MEADOWS SF 0401/030 48 0 600 88 2.52 0 176.995•286995 1.293-2.669 107-137 7500 PCO'd 0303 Richmond American Homes 262 440 MONARCH ESTATES/900'S SF 12/01/2002 141 0 0.00 0 0.00 141 309,900-329,900 2,613-2,738 III-122 8500 Gonna Company,The 262 440 Firestone 1829 204 1.46 1163 3.01 666 174,950-329.900 930.3,273 - 83.191 • Frederick SAVANNAHITRADITIONS SF 10/152001 275 41 3.73 98 3.64 177 199.950-230,450 1,251-1,870 123.164 6300 Melody Horns,Inc. 272 -NO SAVANNAH/COTTAGES SF 01/012002 138 33 3.00 .114 4.98 . 22 172,050-193,450 1,080-1.605 121.160 3600 Mandy Honor,Inc. 73 -NO COUNTRYSIDE/ADVANTAGE SF 01052002 151 32 2.91 82 3.59 69 20,300-230.800 1.293.2,226 104.155 7000 Coax HMOS 272 'NO I SUMMIT VIEW ESTATES SF 11/01/1999 214 29 2.54 203 4.14 11 211.990-263,990 1.484-2,774 90-155 6600 Capital Pacific Honor 262 NO COONTRYSIOF/GARDEN COLLECTION SF 05/01/2002 151 24 2.16 33 1.70 116 1113,101,194,350 1,336-1733 112.137 5800 Center Homes 272 NO Frederick 927 159 2.80 530 3.80 397 172.450-263.990 1,080.2.774 90.164 Lochbule BERKSHIRE/CHALET&USERTY SF 01/182003 500 60 5.74 60 5.70 440 160,995-194,995 1,060-2.026 96-153 4200 KB Home 274 -NO Copyright 2004 www.meyersgroup-com 1-800-MEYERS-7 All Rights Reserved-Meyers Real Estate Information,Inc. Page 2 of 3 01-14-2004 Iei I 1 I I I I I I I I 1 1 1 1 1 1 1 meyegna�rsgroup � MEYERS PROJECT SUMMARY REPORT MARKET NAME:Denver-Boulder-Greeley,CO COUNTY NAME:Weld,CO SUBMARKET NAME:South:FrederieldFlrestone/Dacono All Housing Types January 2003-November 2003 THIS PERIOD OVERALL PROJECT FINISHED COST PER TYPICAL PROJECT/ - PROJ OPEN DATE/ UNITS MONTHLY MONTHLY•UNSOLD BASE PRICE SO.FT. 50.FT. LOT SIZE BUILDER TYPE MAP CODE PLANNED NET RATE NET RATE WITS RANGE RANGE RANGE (SOFT) COMMENTS LocssWo 500 60 5.74 SO 5.74 440 160095-194,995 1.060.2,026 96.153 Longmont RUIN VALLEY RANCH SF 11101/2002 70 22 2.00 23 1.77 47 309,000-363.000 1.858-2,901 125-166 30000 Capital Pacific Hobs 261 -NO ELMS AT MEADOWVALE SF 12/20/1999 144 17 1.55 143 3.02 1 213,990-380.990 1.225-3,196 99-264 10400 Ryland lanes 261 -RD MEADOW VALE/THE SUES SF 01/01/2002 62 15 1.38 25 1.09 37 370.900-427,900 2.534.3,730 115.147 10000 Genesee COVaay.The 261 -NO MEADOW VAlE/THE COVE SF 0001/2002 14 2 016 6 0.26 8 379.900-479.900 2,534.4,235 113.150 6100 Geneve Copany,The 261 -NO Longmont 290 56 117 197 .1.65 93 213.990-479,900 1,225-4.235 99-264 Unincorporated Wald Oily PELICAN LAKE RANCH(HWSTEELE CASTLE SF 0801/1099 5 1 0.09 5 0.10 0 474,995-474,995 4,545.4,545 105.105 115434 Steels CesW Custom dooms 254 -NC PELICAN LAKE RANCH(HI/HACIENDA BUILDERS SF 0601/1999 7 1 0.09 7 0.13 0 299,750.365,000 2.369-2,800 127-130 115434 Hacienda Buddra 254 -NO PELICAN LAKE RANCH(HyTJJTAUFFER CONS SF 0601/1999 5 1 009 4 0.08 1 547.500-547.500 2,550-2,550 215-215 115434 T.L.Slat Conau on 254 -NO PELICAN LAKE RANCH(MANSION MASTER SF 0601/1999 2 0 0.00 2 0.00 0 , 429,000-429,000 2.276-2,276 185-186 115434 Dodge.Mader Cuwvudlan 254 AO PELICAN LAKE RANCH(HASLER HOMES SF 08,01/1999 2 0 0.00 2 0.04 0 3555,000-355.000 2,100.2,100 169.169 115434 PCO'd 08/03 Mr Home 254 440 PELICAN LAKE RANCH(HmoLD TIME CUSTOM SF 08/01/1999 8 0 0.00 8 0.12 0 339,995-339,995 3,500.3,500 89.89 115434 PCO'd 11/03 OM Tyne Custom Homes 254 -NO PELICAN LAKE RANCH(HyGERRARDCONST SF 0601/1999 3 0 0.00 3 0.06 0 324,895-324,995 2.318.2,318 140-140 115434 Gerard Con luction 254 -NO • Unincorporated Wald Only 30 3 0.04 29 0.06 1 290750-547,500 2.100.4.545 89.215 South:FnderlclFOaatonaNewne 5060 823 1.93 2530 2.11 2530 150,495.547,500 930.4,545 83.264 Copyright 2004 www.meyersgroup.com 1-S00-MEYERS-7 All Rights Reserved-Meyers Real Estate Information,Inc. Page 3 of 3 01-14-2004 Del Camino East Properties, LLC. 9116 W. Bowles Ave. Unit 15 Littleton, Colorado 80123 July 15, 2004 Board of Trustees Town of Firestone Post Office Box 100 Firestone,Colorado 80520 RE: Meyers Group Analysis of Absorption Potentials Cottonwood Hollow development Dear Town Trustees: We have reviewed the above-referenced study conducted by Meyers Group and support its findings. The Analysis of Absorption Potentials also satisfactorily confirms our projections and we request that it be admitted as a part of the Cottonwood Hollow Residential Metropolitan District formation application. Please do not hesitate to call with any questions you have about this correspondence. Very truly yours, DEL CAMINO EAST PROPERTIES, L.L.C., A Colorado limited liability company - z-sC-4K Mites R. Grant, Manager EXHIBIT H Underwriter's Letter _" - B atil atCA CA March 22, 2004 City of Firestone 151 Grant Avenue Firestone, Colorado 80520 Re: Proposed Cottonwood Hollow Residential Metropolitan District To Whom It May Concern, You have asked about the relationship between our invcstment banking firm and the proposed Cottonwood Hollow Residential Metropolitan District in relation to the service plan approval process. We are engaged with the petitioners of the proposed District. We intend to serve as underwriters for the District's debt subject to mutually agreeable terms with the District and the Developer. The structure represented in the financing plan involves non-rated bonds issued to third party investors. We believe these bonds will be • marketable based on growth assumptions also included in this plan. We expect the bonds to be sold to private investors. • You also requested an explanation of the level of credit risk associated with the types of financing we are considering for this District. Our experience as a placement agent for . newly formed Special Districts indicates marketing bonds to third parties after the • construction of infrastructure. The level of risk taken by bondholders and the interest rate required for the financing both decrease as development occurs. Recent Special District interest rates range from approximately 8% where land in the District is sold to builders with no homes constructed to 5% where refunding bonds are issued with most of the homes built. We normally issue bonds as close to the infrastructure construction start date(in this instant,completion date) as possible. Relating to the City's risk, we have not experienced or know of an instance where an overlapping city was obligated or implicated in a Special District default. We hope this letter helps clarify the financing plan and the current market for the District bonds. Please call if you have any further questions or require further clarification. Thank you: Sincerg y, Gre Fulton Director of Fixed Income 3350 South Roslyn Street,Suite 400 Greenwood Village,Colorado 80111-2124 Phone: 303.694.0862 Fax; 303.694.6287 www.bathgatepartners.com Member NASD/SIPC EXHIBIT I Legal Counsel Letter SANDER INGEBRETSEN MILLER & PARISH, P.C. A PROFESSIONAL CORPORATION ATTORNEYS AT LAW 700 17`"STREET,SUITE 2200 DENVER,COLORADO 80202 PHONE: 303-285-5300 PAX: 303-285-5301 October 14, 2004 Town of Firestone Post Office Box 100 Firestone, Colorado 80520 RE: Organization of Cottonwood Hollow Residential Metropolitan District This firm has acted as counsel to the Petitioners in connection with the organization of the Cottonwood Hollow Residential Metropolitan District (the "District"). Pursuant to the requirements of section V.m. of the Service Plan for the District, this letter confirms that the petition for organization of the District filed with the Town on June 24, 2004, the Service Plan for the District, as approved on October 14, 2004, and the notice, hearing and other procedures in connection with the approval of the Service Plan, have met the requirements of the Special • District Act, § 32-1-101, et seq., C.R.S., and that the provisions of the Service Plan, including, without limitation, provisions as to the structure and terms of the District's bonds, fees and revenue sources, are consistent with applicable provisions of titles 11 and 32, C.R.S., and other applicable law. Please be advised, however, that this firm has not been engaged as bond counsel to the District, nor will this firm serve as bond counsel at any time for the District. This letter does not purport to offer any opinion of the type customarily required to be given by bond counsel with regard to any bond transaction of the District. This letter is limited to the use of the addressee as set forth above, and may not be relied upon by other parties or in connection with any future sale, resale or transfer of bonds and may be relied upon only as stated herein. This letter may not be used, quoted or referred to, in whole or in part, for any other purpose without the prior, written consent of the firm Very truly yours, SANDER INGEBRETSEN MILLER&PARISH, A P fessional Co oration k otret Cottonwood Hollow Residential\Service PI n JLG0824 ... 0713.0003 EXHIBIT J Bond Counsel Letter BECKER STOWE & BIEBER LLC ATTORNEYS AT LAW THE CHANCERY, SUITE 1002 1120 LINCOLN STREET DENVER, COLORADO 80203-2138 TELEPHONE (303) 830-0,01 FAX (303) 860-9306 October 13, 2004 Town of Firestone 151 Grant Avenue Box 100 Firestone, Colorado 80520 Re: Proposed Cottonwood Hollow Residential Metropolitan District We have been asked to write this letter in our capacity as bond counsel to the proposed Cottonwood Hollow Residential Metropolitan District (the"District"). The current draft of the Service Plan for the District provides as follows: • "The District will pay to the Town for deposit into the Town's capital improvements fund a total of Nine Hundred Eighty-Nine Thousand Six Hundred Forty-Seven Dollars($989,647.00)of the District's total net bond proceeds,forty-five percent(45%)of which shall be paid to the Town upon the issuance and delivery of the first series of Bonds, which is anticipated to occur in 2005,and fifty-five percent(55%)of which shall be paid to the Town upon the issuance and delivery of the second series of Bonds, which is anticipated to occur in 2007 (the "Town contribution"). Pursuant to an agreement to be executed between the Town and the District, the funds so paid to the Town shall be used by the Town to finance improvements(whether inside or outside the boundaries of the District) that the Town and the District would otherwise be empowered to construct, and for which the District is authorized to incur indebtedness (Le., streets, street lighting,traffic safety controls,water,landscaping,storm drainage or park and recreation improvements and facilities), which improvements shall be of benefit to the Town and the District and shall be specifically identified in an amendment to the intergovernmental agreement between the Town and the District, which amendment shall be fully executed prior to the issuance of any District bonds." We have been asked to confirm that the foregoing is an acceptable use of bond proceeds. The answer is in the affirmative. The District is specifically authorized by statute to provide improvements which benefit the District, whether such improvements are inside or outside the boundaries of the District, and to enter into intergovernmental agreements. Whether the District provides such improvements directly, or does so by contracting with the Town, would not in our BECKER STOWE & BIEBER LLC Town of Firestone, Colorado October 13, 2004 Page 2 view affect the validity or tax-exempt status of the bonds. We know of no reason why tax restrictions on this use of bond proceeds would differ from tax restrictions generally applicable to other governmental bond issues for capital purposes. The foregoing presumes that the improvements are of the type the District is permitted to provide under the Service Plan and organizational documents,and are of benefit to the District and the property owners and inhabitants thereof. As with all bond issues, as a condition of giving our opinion on the bonds, we would need certification as to the use of all proceeds, including these proceeds. Such certification would be requested from the District and possibly from the Town, depending upon the circumstances; however,if the Town enters into an agreement to so apply such proceeds,we would rely upon the Town's promises thereunder unless we had knowledge that other factors called that reliance into question. I hope this responds to your request. If you have further questions, please feel free to call me. • Sincerely, Donald . For the Firm - EXHIBIT K Part I-Developer Indemnity Letter Part II- District Indemnity Letter April 22, 2004 Town of Firestone Post Office Box 100 Firestone, Colorado 80520 RE: Cottonwood Hollow Residential Metropolitan District Ladies and Gentlemen: - This Indemnity Letter (the "Indemnity Letter") is delivered by the undersigned Del Camino East Properties, L.L.C., a Colorado limited liability company ("Del Camino East Properties") in order to induce the Town of Firestone (the "Town") to approve the Service Plan, including all amendments heretofore or hereafter made thereto (the "Service Plan") for the Cottonwood Hollow Residential Metropolitan District (the "District"). In consideration of the Town's approval of the Service Plan, Del Camino East Properties, for and on behalf of itself and its transferees, successors and assigns, represents, warrants, covenants and agrees to and for the benefit of the Town as follows: • • — 1. . Del Camino East Properties hereby waives and releases any present or future claims it might have against the Town or the Town's elected or appointed officers, employees, agents or contractors in any manner related to or connected with the Service Plan or any action • or omission with respect thereto. Del Camino East Properties further hereby agrees to indemnify and hold harmless the Town and the Town's elected and appointed officers, employees, agents and contractors, from and against any and all liabilities resulting from any and all claims, demands, suits, actions or other proceedings of whatsoever kind or nature made or brought by any third party, including attorneys' fees and expenses and court costs, which directly or indirectly or purportedly arise out of or are in any manner related to or connected with any of the following: (a) the Service Plan or any document or instrument contained or referred to therein; or (b) the formation of the District or any actions or omissions of Del Camino East Properties, the District, the Town or any other person or entity in connection with the District, including, without limitation, any bonds or other financial obligations of the District or any offering documents or other disclosures made in connection therewith. Del Camino East Properties further agrees to investigate, handle, respond to and to provide defense for and defend against, or at the Town's option to pay the attorneys' fees and expenses for counsel of the Town's choice for any such liabilities, claims, demands, suits, actions or other proceedings. It is understood and agreed that the Town does not waive or intend to waive the monetary limits (presently $150,000 per person and $600,000 per occurrence) or any other rights, immunities and protections provided by the Colorado Governmental Immunity Act, §§ 24-10-101, et seq., C.R.S., as from time to time amended, or otherwise available to the Town, its officers or its employees. 2. Del Camino East Properties hereby consents to the Town Disclaimer Statement contained in Exhibit M to the Service Plan, acknowledges the Town's right to modify the Town Disclaimer Statement, and waives and releases the Town from any claims Del Camino East Properties might have based on or relating to the use of or any statements made or to be made in such Town Disclaimer Statement (including any modifications thereto). 3. It is understood and agreed, and Del Camino East Properties hereby expressly acknowledges, that the Town, in acting to approve the Service Plan, has relied upon the provisions of this Indemnity Letter. 4. This Indemnity Letter has been duly authorized and executed on behalf of Del Camino East Properties. Very truly yours, DEL CAMINO EAST PROPERTIES L.L.C., a Colorado limited liability company • • Miles R. Grant, Manager Cottonwood Hofl w Re,tdential\Service Plan JLG0826 0713.0003 ,2004 (Date of Organizational Meeting) Town of Firestone Post Office Box 100 Firestone, Colorado 80520 RE: Cottonwood Hollow Residential Metropolitan District • Ladies and Gentlemen: This Indemnity Letter (the "Indemnity Letter") is delivered by the Cottonwood Hollow Residential Metropolitan District (the "District") in order to comply with the Service Plan, including all amendments heretofore or hereafter made thereto (the "Service Plan") for the District. In consideration of the Town's approval of the Service Plan, the District, for and on behalf of itself and its transferees, successors and assigns, represents, warrants, covenants and agrees to and for the benefit of the Town as follows: 1. The District hereby waives and releases any present or future claims it might have against the Town or the Town's elected or appointed officers, employees, agents or contractors in any manner related to or connected with the Service Plan or any action or omission with respect thereto. To the fullest extent permitted by law, the District hereby agrees to indemnify and hold harmless the Town and the Town's elected and appointed officers, employees, agents "- and contractors, from and against any and all liabilities resulting from any and all claims, demands, suits, actions or other proceedings of whatsoever kind or nature made or brought by any third party, including attorneys' fees and expenses and court costs, which directly or indirectly or purportedly arise out of or are in any manner related to or connected with any of the following: (a)the Service Plan or any document or instrument contained or referred to therein; or (b) the formation of the District or any actions or omissions of the District, the Town, Del Camino East Properties, L.L.C., a Colorado limited liability company ("Del Camino East Properties"), or any other person or entity in connection with the District, including, without limitation, any bonds or other financial obligations of the District or any offering documents or other disclosures made in connection therewith. The District further agrees to investigate, handle,respond to and to provide defense for and defend against, or at the Town's option to pay the attorneys' fees and expenses for counsel of the Town's choice for, any such liabilities, claims, demands, suits, actions or other proceedings. It is understood and agreed that neither the District nor the Town waives or intends to waive the monetary limits (presently $150,000 per person and $600,000 per occurrence)or any other rights, immunities and protections provided by the Colorado Governmental Immunity Act, §§ 24-10-101, et seq., C.R.S., as from time to time amended, or otherwise available to the Town, the District,its officers, or its employees. 2. The District hereby consents to the Town Disclaimer Statement contained in Exhibit M to the Service Plan; agrees that the District will include such Town Disclaimer Statement or any modified or substitute Town Disclaimer Statement hereafter furnished by the Town to the District in all offering materials used in connection with any bonds or other financial obligations of the District (or, if no offering materials are used, the Town Disclaimer Statement will be given by the District to any prospective purchaser of any bonds or other financial obligations of the District); and waives and releases the Town from any claims the District might have based on or relating to the use of or any statements made or to be made in such Town Disclaimer Statement(including any modifications thereto). 3. It is understood and agreed, and the District hereby expressly acknowledges, that the Town, in acting to approve the Service Plan, has relied upon the provisions of this Indemnity Letter. 4. This Indemnity Letter has been duly authorized and executed on behalf of the District. Very truly yours, COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT By: Title: • Cottonwood Hollow Rcsidcntial/Service Plan .� JLG0828 0713.0003 EXHIBIT L Form of Disclosure Notice COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT WELD COUNTY,COLORADO DISCLOSURE STATEMENT Pursuant to Article XII of the Service Plan of Cottonwood Hollow Residential Metropolitan District DISTRICT ORGANIZATION: Cottonwood Hollow Residential Metropolitan District (the "District"), Weld County, Colorado is a quasi-municipal corporation and political subdivision of the State of Colorado duly organized and existing as a metropolitan district pursuant to Title 32, Colorado Revised Statutes. The District was declared organized and an existing metropolitan district on 2004, pursuant to an Order and Decree Organizing District and Issuance of Certificates of Election for the Cottonwood Hollow Residential Metropolitan District, issued in the District Court of Weld County, Colorado. The Order and Decree was recorded in the records of the Weld County Clerk and Recorder on ,200_at Reception# The District is located entirely within the corporate limits of the Town of Firestone, Colorado, in Weld County. The legal description of the property forming the boundaries of the District is described in Exhibit A. DISTRICT PURPOSE: Cottonwood Hollow Residential Metropolitan District was organized for the purpose of financing streets, street lighting, traffic and safety controls, water, landscaping, storm drainage and park and recreation improvements, all in accordance with its Service Plan approved by the Board of Trustees of Firestone. When completed,improvements shall be dedicated to the Town of Firestone or other governmental entities, all for the use and benefit of residents and taxpayers, or operated and maintained by contract with a Homeowners' Association formed for the Cottonwood Hollow subdivision. The District's Service Plan is on file and available for review at the office of the District's general counsel, Sander Ingebretsen Miller & Parish, P.C., 700 17th Street, Suite 2200, Denver, Colorado 80202, and at the office of the Town Clerk, Town of Firestone, 151 Grant Avenue,Firestone,Colorado 80520. TAX LEVY INFORMATION: The primary source of revenue for the District is ad valorem property taxes. Property taxes are determined annually by the District's Board of Directors and set by the Board of County Commissioners for Weld County as to rate or levy based upon the assessed valuation of the property within the District. The levy is expressed in terms of mills. A mill is 1/1,000 of the assessed valuation, and a levy of one mill equals $1 of tax for each $1,000 of assessed value. The financial forecast for the District (as set forth in its Service Plan) assumes that the District will be able to set its tax levy at approximately forty-five and nine hundred seventy-nine one thousandths (45.979) mills or less for 2006 through 2037 for debt service and administration purposes (subject to legally required changes in residential valuation ratios). Except for _ adjustments permitted by the Service Plan for such changes in residential valuation ratios, the District shall not impose a debt service mill levy in excess of fifty (50.000) mills and shall not impose a mill levy for administration, warranty maintenance and other operating expenses in excess of six (6.000)mills. District taxes are collected as part of the property tax bill from Weld County. COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT By: ,President STATE OF COLORADO ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2004, by as President of the Cottonwood Hollow Residential Metropolitan District. WITNESS my hand and official seal. My commission expires: Notary Public Cottonwood Hollow Residential/Service Plan JLG1135 �- 0713.0003 EXHIBIT A (Legal Description of District) LEGAL DESCRIPTION PARCEL 1 COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT A TRACT OF LAND LOCATED IN THE WEST HALF OF THE NORTHEAST QUARTER OF SECTION 14, TOWNSHIP 2 NORTH, RANGE 68 WEST OF THE 6TH PRINCIPAL MERIDIAN, TOWN OF FIRESTONE, COUNTY OF WELD, STATE OF COLORADO, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS; COMMENCING AT THE NORTHEAST CORNER OF SAID WEST HALF; THENCE S00°18'14"E ALONG THE EAST LINE OF SAID WEST HALF A DISTANCE OF 30.00 FEET TO THE POINT OF BEGINNING; THENCE CONTINUING ALONG SAID EAST LINE S00°18'14"E A DISTANCE OF 2624.04 FEET TO THE SOUTHEAST CORNER OF SAID WEST HALF; THENCE 589°55'12"W ALONG THE SOUTH LINE OF SAID WEST HALF A DISTANCE OF 708.81 FEET; THENCE N05°54'04"W A DISTANCE OF 231.64 FEET; .� THENCE N30°42'25"W A DISTANCE OF 310.05 FEET; THENCE N59°38'36"W A DISTANCE OF 73.63 FEET; THENCE N78°48'01"W A DISTANCE OF 123.20 FEET; THENCE N16°18'30"W A DISTANCE OF 305.07 FEET; •- THENCE N12°48'12"W A DISTANCE OF 504.03 FEET; THENCE N26°11'10"E A DISTANCE OF 228.92 FEET; THENCE N13°30'12"E A DISTANCE OF 100.66 FEET; THENCE N04°09'08"W A DISTANCE OF 187.09 FEET; THENCE N77°57'21"W A DISTANCE OF 163.27 FEET TO A POINT ON THE CENTER SECTION LINE OF. SECTION 14; THENCE N00°07'17"W ALONG SAID CENTER SECTION LINE A DISTANCE OF 42.48 FEET; THENCE N34°26'39"E A DISTANCE OF 345.91 FEET; THENCE N70°27'39"E A DISTANCE OF 183.51 FEET; THENCE N34°12'35"E A DISTANCE OF 86.45 FEET; THENCE N01°45'32"E A DISTANCE OF 127.93 FEET; THENCE N42°34'20"W A DISTANCE OF 107.53 FEET; THENCE N50°34'57"W A DISTANCE OF 145.48 FEET; THENCE S89°55'22"E A DISTANCE OF 1071.60 FEET TO THE POINT OF BEGINNING, CONTAINING 64.04 ACRES, MORE OR LESS. w yj VS OR FOF COOP 00-038/DWG/Metropolitan-District/LGL-DIST-1.TXT PREPARED: 11-19-03 REVISED: 03-09-04 LEGAL DESCRIPTION PARCEL 2 COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT A TRACT OF LAND LOCATED IN THE EAST HALF OF THE NORTHWEST QUARTER OF SECTION 14, TOWNSHIP 2 NORTH, RANGE 68 WEST OF THE 6TH PRINCIPAL MERIDIAN, TOWN OF FIRESTONE, COUNTY OF WELD, STATE OF COLORADO, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS; COMMENCING AT THE NORTH QUARTER CORNER OF SAID SECTION 14; THENCE S00°07'17"E ALONG THE EAST LINE OF SAID NORTHWEST QUARTER A DISTANCE OF 30.00 FEET TO THE POINT OF BEGINNING; THENCE S00°07'17"E CONTINUING ALONG SAID EAST LINE A DISTANCE OF 311.37 FEET; THENCE S57°55'06"W A DISTANCE OF 15.86 FEET; THENCE 546°08'59"W A DISTANCE OF 81.70 FEET; -. THENCE S14°17'01"W A DISTANCE OF 299.30 FEET; THENCE S49'°22a28"E A DISTANCE OF 56.74 FEET; THENCE 303°16'13"E A DISTANCE OF 33.66 FEET; THENCE $62°37'55"W A DISTANCE OF 36.80 FEET; THENCE S26°39'40"W A DISTANCE OF 29.30 FEET; THENCE S05°13'01"E A DISTANCE OF 184.28 FEET; THENCE S47°17'38"E A DISTANCE OF 36.28 FEET; THENCE 502°26'30"W A DISTANCE OF 59.58 FEET; '- THENCE S30°54'29"W A DISTANCE OF 226.80 FEET;THENCE 503°27'11"W A DISTANCE OF 212.60 FEET; THENCE S04°05'07"E A DISTANCE OF 117.01 FEET; THENCE 525°08'52"E A DISTANCE OF 256.67 FEET; THENCE S04°56'23"E A DISTANCE OF 488.16 FEET; THENCE S12°07'10"E A DISTANCE OF 150.75 FEET; THENCE S29°04'16"E A DISTANCE OF 217.63 FEET TO A POINT ON THE SOUTH LINE OF NORTHEAST QUARTER OF SAID SECTION 14; THENCE 589°55'12"W ALONG SAID SOUTH LINE A DISTANCE OF 56.46 FEET TO THE CENTER QUARTER CORNER OF SECTION 14; THENCE 389°56'54"W ALONG SOUTH LINE OF SAID NORTHWEST QUARTER OF SECTION 14 A DISTANCE OF 1303.91 FEET TO THE SOUTHWEST CORNER OF SAID EAST HALF OF THE NORTHWEST QUARTER OF SECTION 14; THENCE NOO°15'46"W ALONG THE WEST LINE OF SAID EAST HALF A DISTANCE OF 1059.93 FEET; THENCE N89°56'37"E A DISTANCE OF 468.64 FEET TO A NON-TANGENT POINT OF CURVATURE; ^- THENCE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 16°00'07" A RADIUS OF 1135.00 FEET A DISTANCE OF 316.99 FEET WHOSE CHORD BEARS NO8°25'48"W A CHORD DISTANCE OF 315.96 FEET; THENCE N00°25'44"W A DISTANCE OF 314.08 FEET TO A POINT OF CURVATURE; THENCE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 11°25'12" A RADIUS OF 1135.00 FEET A DISTANCE OF 226.22 FEET; THENCE N10°59'27"E A DISTANCE OF 225.17 FEET TO A POINT OF CURVATURE; THENCE ALONG THE ARC OF A CURVE TO THE LEFT HAVING A CENTRAL ANGLE OF 11°15'14" A RADIUS OF 1015.00 FEET A DISTANCE OF 199.37 FEET; THENCE N00°15'47'W A DISTANCE OF 297.70 FEET; THENCE S90°00'00"E A DISTANCE OF 802.30 FEET TO THE POINT OF BEGINNING, CONTAINING 55.66 ACRES, MORE OR LESS. 00-038/DWG/Metropolitan-District/LGL-DIST-2.TXT PREPARED: 11-19-03 REVISED: 03-09-04 LEGAL DESCRIPTION PARCEL 3 COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT A TRACT OF LAND LOCATED IN THE EAST HALF OF THE SOUTHWEST QUARTER OF SECTION 11, TOWNSHIP 2 NORTH, RANGE 68 WEST OF THE 6TH PRINCIPAL MERIDIAN, TOWN OF FIRESTONE, COUNTY OF WELD, STATE OF COLORADO, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS; COMMENCING AT THE SOUTH QUARTER CORNER OF SAID SECTION 11; THENCE N00°07'16"W ALONG THE EAST LINE OF SAID SOUTHWEST QUARTER A DISTANCE OF 30.00 FEET TO THE POINT OF BEGINNING; THENCE N90°00'00"W A DISTANCE OF 802.43 FEET; THENCE N00°15'47"W A DISTANCE OF 636.73 FEET TO A POINT OF CURVATURE; THENCE ALONG THE ARC OF A CURVE TO THE LEFT HAVING A CENTRAL ANGLE OF 10°45'40' A RADIUS OF 1015.00 FEET A DISTANCE OF 190.63 FEET; THENCE N11°01'27"W A DISTANCE OF 796.41 FEET TO A POINT OF CURVATURE; THENCE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 01°52'28' A RADIUS OF 1015.00 FEET A DISTANCE OF 37.13 FEET WHOSE CHORD BEARS N10°05'13"W A CHORD DISTANCE OF 37.13 FEET; THENCE S90°00'00"E A DISTANCE OF 582.89 FEET; THENCE S02°14 '18"E A DISTANCE OF 147.11 FEET; THENCE S01°35'33"E A DISTANCE OF 227.04 FEET; THENCE $67°07'59"E A DISTANCE OF 79.46 FEET; THENCE S41°30'13"E A DISTANCE OF 109.75 FEET; - THENCE S28°16'04"E A DISTANCE OF 142.91 FEET; THENCE S15°04 '29"E A DISTANCE OF 123.50 FEET; THENCE S19°15'37"E A DISTANCE OF 118.72 FEET; THENCE S01°03'51"E A DISTANCE OF 131.94 FEET; THENCE S45°24 '51"E A DISTANCE OF 139.51 FEET TO A POINT ON THE EAST LINE OF SAID SOUTHWEST QUARTER; THENCE SOO°07'16"E ALONG SAID EAST LINE A DISTANCE OF 570.36 FEET TO THE POINT OF BEGINNING, CONTAINING 26.33 ACRES, MORE OR LESS. 00-038/DWG/Metropolitan-District/LGL-DIST-3.TXT PREPARED: 11-19-03 REVISED: 03-09-04 EXHIBIT M Form of Town Disclaimer Statement TOWN OF FIRESTONE, COLORADO-DISCLAIMER STATEMENT As a requirement imposed in its formation process, the Cottonwood Hollow Residential Metropolitan District (the "District") is obligated to the Town of Firestone (the "Town") to include this disclaimer statement in all offering materials used in connection with any bonds or other financial obligations of the District (or, if no offering materials are used, to give this disclaimer statement to any prospective purchaser, investor or lender in connection with any such bonds or other financial obligations of the District). The date of this disclaimer statement is The Town has not reviewed or participated in the preparation of any offering materials or any other disclosure documentation relating to any bonds or financial obligations of the District or any other materials to which this Disclaimer Statement is appended. Other than this Disclaimer Statement,no other statement of any kind is authorized to be made by or on behalf of the Town in any offering materials or any other disclosure documentation relating to any bonds or other financial obligations of the District. The Town and the District are separate legal entities. The Town is not a party to and is not obligated with respect to any borrowings, financings, bonds or other financial obligations of the District. As a statutory requirement for the formation of the District, the Town approved a Service Plan containing financial and other information furnished by the District's organizers. The Town's approval of the Service Plan was based upon such information furnished by the District's organizers, without independent investigation by the Town. The District's Service Plan was prepared in 2004 and not in connection with the offering of any bonds or other financial obligations. The Town's approval of the District's Service Plan should not be relied upon by prospective purchasers, bondholders, investors or lenders in evaluating the investment quality of the District's bonds or other financial obligations. The Service Plan and related agreements do not impose upon the Town any duties to, nor confer any rights against the Town upon,any purchasers,investors,lenders,bondholders or other third parties. Cottonwood Hollow Residennal/Service Plan JLG1540 0713.0003 EXHIBIT M Form of Town Disclaimer Statement TOWN OF FIRESTONE, COLORADO-DISCLAIMER STATEMENT As a requirement imposed in its formation process, the Cottonwood Hollow Residential Metropolitan District (the "District") is obligated to the Town of Firestone (the "Town") to include this disclaimer statement in all offering materials used in connection with any bonds or other financial obligations of the District (or, if no offering materials are used, to give this disclaimer statement to any prospective purchaser, investor or lender in connection with any such bonds or other financial obligations of the District). The date of this disclaimer statement is The Town has not reviewed or participated in the preparation of any offering materials or any other disclosure documentation relating to any bonds or financial obligations of the District or any other materials to which this Disclaimer Statement is appended. Other than this Disclaimer Statement, no other statement of any kind is authorized to be made by or on behalf of the Town in any offering materials or any other disclosure documentation relating to any bonds or other financial obligations of the District. The Town and the District are separate legal entities. The Town is not a party to and is not obligated with respect to any borrowings, financings, bonds or other financial obligations of the District. As a statutory requirement for the formation of the District, the Town approved a Service Plan containing financial and other information furnished by the District's organizers. The Town's approval of the Service Plan was based upon such information furnished by the District's organizers, without independent investigation by the Town. The District's Service Plan was prepared in 2004 and not in connection with the offering of any bonds or other financial obligations. The Town's approval of the District's Service Plan should not be relied upon by prospective purchasers, bondholders, investors or lenders in evaluating the investment quality of the District's bonds or other financial obligations. The Service Plan and related agreements do not impose upon the Town any duties to, nor confer any rights against the Town _ upon, any purchasers,investors, lenders,bondholders or other third parties. Cottonwood Hollow Residential/Service Plan 1LO1540 0713.0003 .. EXHIBIT N .. Form of Intergovernmental Agreement between District and Town INTERGOVERNMENTAL AGREEMENT BY AND BETWEEN THE TOWN OF FIRESTONE, COLORADO AND COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT This INTERGOVERNMENTAL AGREEMENT (the "Agreement") is entered into this day of 2004,by and between the TOWN OF FIRESTONE, COLORADO, a municipal corporation of the State of Colorado (the "Town"), and COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT, a quasi-municipal corporation and political subdivision of the State of Colorado (the "District"), collectively referred to herein as the "Parties". RECITALS WHEREAS, the District was organized to finance, acquire, design, construct and install certain facilities, and to exercise powers, all as are more specifically set forth in the District's Service Plan, dated October 14, 2004, and approved by the Town on October 14, 2004, by Resolution No. 04- (the"Service Plan"); and WHEREAS, the Service Plan makes reference to and requires the execution of an intergovernmental agreement between the Town and the District;and WHEREAS, the Town and the District have determined it to be in the best interests of their respective taxpayers,residents and property owners to enter into this Agreement; NOW, THEREFORE, for and in consideration of the covenants and mutual agreements herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows: COVENANTS AND AGREEMENTS 1. APPLICATION OF LOCAL LAWS. The District hereby acknowledges that the property within its boundaries shall be subject to all ordinances, rules and regulations of the Town, including without limitation, ordinances, rules and regulations relating to zoning, subdividing, building and land use, and to all related Town land use policies, master plans, related plans and intergovernmental agreements. 2. NATURE OF DISTRICT. The District agrees that it is organized for the purpose of financing certain public improvements for the area within its boundaries only (except to the extent otherwise specifically provided in Article V.c. of the Service Plan), which area is designated as the proposed Cottonwood Hollow development, and that the District's purposes, powers, facilities and activities are to be limited and governed by the Service Plan. The District is not intended to and shall not provide facilities or service outside its boundaries (except as otherwise specifically provided in Article V.c. of the Service Plan). Further, the District is not intended to and shall not exist perpetually, but instead shall be dissolved in accordance with the Service Plan and this Agreement. The District shall not provide any _ services or facilities within any area of the District overlapping with the service area of another district without first obtaining the written consent of each and every district whose service area is so overlapped. 3. CHANGE IN BOUNDARIES. The District agrees that, as set forth in the Service Plan, inclusion of properties within, or any exclusion of properties from, its boundaries shall constitute a material modification of the Service Plan; any purported inclusion or exclusion that has not been approved by the Town pursuant to the procedures applicable to a material modification of the Service Plan shall be void and of no effect. 4. TOWN APPROVAL REQUIREMENTS; REVIEW OF DISTRICT SUBMITTALS. The District agrees that any Town approval requirements contained in the Service Plan (including, without limitation, any Service Plan provisions requiring that any change, request, action, event or occurrence be treated as a Service Plan amendment proposal or be deemed a "material modification" of the Service Plan) shall remain in full force and effect, and such Town approval shall continue to be required, notwithstanding any future change in law modifying or repealing any statutory provision concerning service plans, amendments thereof or modifications thereto. The District agrees to reimburse the Town for all reasonable administrative and consultant costs incurred by the Town for any Town review of reports, plans, submittals, proposed modifications or requests for administrative approvals, or other materials or requests provided to the Town by the District pursuant to the Service Plan, this Agreement, state law or the Firestone Municipal Code. The Town may require a deposit of such estimated costs. 5. OWNERSHIP OF IMPROVEMENTS. The Parties agree that the District shall not be permitted to undertake ownership, operation or maintenance of any public improvements, facilities or services,except as specifically set forth in the Service Plan. 6. ALLOCATION OF FINANCING PROCEEDS. The Parties agree, and the Town's approval of the Service Plan is expressly conditioned upon the requirement, that a total of Nine Hundred Eighty-Nine Thousand Six Hundred Forty-Seven Dollars ($989,647.00) will be allocated from the District's net bond financing proceeds to the Town's capital improvements fund, which proceeds shall be paid to the Town at the time proceeds are realized from the issuance of bonds as provided for in the Service Plan. Such allocations shall be made in the -- amounts and at the times set forth in Article V.c. of the Service Plan, which Article is incorporated herein by reference as though set forth in full. Such allocations may be used by the Town to finance capital improvements (either within or outside the boundaries of the District) that the Town and the District would otherwise be empowered to construct, and for which the District is authorized to incur indebtedness i.e., streets, traffic safety controls, street lighting, water, storm drainage, park and recreation or landscaping improvements and facilities, which improvements shall be of benefit to the Town and the District and shall be specifically identified in an amendment to this Agreement which amendment shall be fully executed prior to the issuance of any District bonds. The District acknowledges and agrees that the provisions of this Agreement and the provisions of the Service Plan for concurrent allocation of bond proceeds to the Town's capital improvements fund for capital improvements are material considerations in, and conditions of, the Town's approval of the District's Service Plan, and that the Town has relied thereon in approving the District's Service Plan. Therefore, the District agrees that it shall include in and make available from the District's bond financing proceeds such Nine Hundred Eighty-Nine Thousand Six Hundred Forty-Seven Dollars ($989,647.00) to be paid to the Town's capital improvements fund. The District further agrees that it shall not issue bonds without concurrently allocating and delivering to the Town the funds required by Article V.c. of the Service Plan. The District further agrees that such delivery of bond proceeds to the Town shall be a condition of closing for each series of bonds. The District specifically agrees that the provisions of this Agreement and of the Service Plan for such concurrent allocation of bond proceeds to the Town shall run in favor of and shall be enforceable by the Town. The District represents and warrants that it has obtained all voter authorizations necessary to implement such provisions of this Agreement and the Service Plan, and that it will exercise its powers in accordance with and in furtherance of such provisions. 7. CONSOLIDATION. The District shall not file a request with the District Court to consolidate with another district without the prior written approval of the Town. 8. DISSOLUTION. The District agrees that it shall take all action necessary to dissolve the District upon payment or defeasance of the District's bonds or otherwise upon the request of the Town, all as provided in the Service Plan. 9. NOTICE OF MEETINGS. The District agrees that it shall submit a copy of the written notice of every regular or special meeting and work session of the District's Board of Directors to the Office of the Firestone Town Administrator,by mail, facsimile or hand delivery, to be received at least three (3) days prior to such meeting. The District agrees that it shall also submit a complete copy of meeting packet materials for any such meeting to the Office of the Firestone Town Administrator, by mail, facsimile or hand delivery, to be received at least one (1)day prior to such meeting. 10. ANNUAL REPORT. The District shall be responsible for submitting an annual report to the Town pursuant to and including the information set forth in Article VII of the Service Plan. 11. ENTIRE AGREEMENT OF THE PARTIES. This written agreement, together with the Service Plan, constitutes the entire agreement between the Parties and supersedes all prior written or oral agreements, negotiations, or representations and understandings of the Parties with respect to the subject matter contained herein. 12. AMENDMENT. This Agreement may be amended, modified, changed or terminated in whole or in part only by a written agreement duly authorized and executed by the Parties hereto and without amendment to the Service Plan. pa 13. ENFORCEMENT. The Parties agree that this Agreement may be enforced in law or in equity for specific performance, injunctive or other appropriate relief, including damages,as may be available according to the laws and statutes of the State of Colorado. 14. VENUE. Venue for the trial of any action arising out of any dispute hereunder shall be in Weld County District Court. 15. BENEFICIARIES. Except as otherwise stated herein, this Agreement is intended to describe the rights and responsibilities of and between the named parties and is not intended to, and shall not be deemed to, confer any rights upon any persons or entities not named as parties. 16. EFFECT OF INVALIDITY. If any portion of this Agreement is held invalid or unenforceable for any reason by a court of competent jurisdiction as to either party or as to both Parties, such portion shall be deemed severable and its invalidity or its unenforceability shall not cause the entire agreement to be terminated. Further,with respect to any portion so held invalid or unenforceable, the District and Town agree to take such actions as may be necessary to achieve to the greatest degree possible the intent of the affected portion. • 17. ASSIGNABILITY. Other than as specifically provided for in this Agreement, neither the Town nor the District shall assign their rights or delegate their duties hereunder without the prior written consent of the other Parties. 18. SUCCESSORS AND ASSIGNS. Subject to Paragraph 17 hereof, this "- Agreement and the rights and obligations created hereby shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and assigns. [Remainder of page intentionally left blank]. COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT By: President ATTEST: By: Secretary TOWN OF FIRESTONE By: Its: ATTEST: By: Its: .. EXHIBIT O Resolution of Town of Firestone Approving Service Plan TOWN OF FIRESTONE, COUNTY OF WELD, STATE OF COLORADO IN RE THE ORGANIZATION OF COTTONWOOD HOLLOW COMMERCIAL METROPOLITAN DISTRICT AND COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT IN THE TOWN OF FIRESTONE, COUNTY OF WELD, STATE OF COLORADO RESOLUTION NO. 04-45 RESOLUTION OF APPROVAL WHEREAS, pursuant to the provisions of Title 32, Article 1, Part 2, C.R.S. as amended, the Board of Trustees of the Town of Firestone, County of Weld, State of Colorado, following due notice, held a public hearing on the proposed Service Plans for Cottonwood Hollow Commercial Metropolitan District and Cottonwood Hollow Residential Metropolitan District, which hearing was concluded on October 14,2004; and WHEREAS, the Board of Trustees has considered the Service Plans and all other testimony and evidence presented at the hearing; and WHEREAS, based upon the testimony and evidence presented at the hearing, it appears that the Service Plans for Cottonwood Hollow Commercial Metropolitan District and Cottonwood Hollow Residential Metropolitan District, should be approved by the Board of Trustees, subject to certain conditions set forth below, in accordance with Section 32-1- 204.5(1)(c), C.R.S. THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF FIRESTONE,COLORADO: Section 1. That the Board of Trustees, as the governing body of the Town of Firestone, Colorado, does hereby determine, based on representations by and on behalf of Del Camino East Properties, L.L.C., a Colorado limited liability corporation, (the "Developer"), that all of the requirements of Title 32, Article 1, Part 2, C.R.S., as amended, relating to the filing of the proposed Service Plans for Cottonwood Hollow Commercial Metropolitan District and Cottonwood Hollow Residential Metropolitan District have been fulfilled and that notice of the hearing was given in the time and manner required by the Town. Section 2. That, based on representations by and on behalf of the Developer, the Board of Trustees of the Town of Firestone, Colorado, has jurisdiction over the subject matter of these proposed special districts pursuant to Title 32, Article 1, part 2, C.R.S., as amended. Section 3. That, pursuant to Section 32-1-204.5, C.R.S., Section 32-1-202(2), C.R.S., and Section 32-1-203(2), C.R.S., the Board of Trustees of the Town of Firestone, Colorado, does hereby find and determine, based on the Service Plans and other evidence presented by and on 1 behalf of the Developer, that, as to each of the Districts: (a) There is sufficient existing and projected need for organized service in the areas to be serviced by the proposed District; (b) The existing service in the areas to be served by the proposed District is inadequate for present and projected needs; (c) The proposed special district is capable of providing economical and sufficient service to the area within its proposed boundaries; (d) The area to be included in each proposed districts has, or will have, the • financial ability to discharge the proposed indebtedness on a reasonable basis; and (e) The creation of the proposed Districts will be in the best interests of the areas proposed to be served. Section 4. That pursuant to Section 32-1-204.5(1)(c), C.R.S., the Board of Trustees hereby imposes the following conditions upon its approval of the Service Plans: (a) The Developer agrees that the Town Attorney will be given reasonable notice of all proceedings in the District Court of Weld County relating to the organization of the Districts (including notice as described in Section 32-1-304, C.RS.). (b) The Developer agrees that,prior to the hearing date set by the District Court of Weld County pursuant to Section 32-1-304, C.R.S., all fees and expenses which have been submitted to the Developer for payment by or on behalf of the Town or its r. attorneys or financial or other advisors shall have been paid in full. (c) Prior to the hearing date set by the District Court of Weld County pursuant to _ Section 32-1-304, C.R.S., the District shall fully comply with the provisions of Section 32-1-107(3), C.R.S. with respect to the overlapping of service areas. The District's authorization to provide services or facilities within any overlapping area is expressly conditioned upon the Districts first obtaining the written consent of each and every district whose service area is so overlapped. (d) Prior to the Mayor's execution of this Resolution, the fully and properly executed originals of the following documents will be submitted for the proposed Districts: the engineer's statement of reasonableness of capital costs; accountant's letters and forecasts; letter in support of market projections and absorption rates; underwriter's letter, legal counsel letters; bond counsel letter, and Developer's indemnity letters that are required under the Service Plan and set forth in Exhibits E, G, H, I, J and K part I, to the Commercial Metropolitan District Service Plan and to the Residential Metropolitan District Service Plan, shall be provided to the Town. 2 (e) At its organizational meetings, each District shall execute its District indemnity letter, and the intergovernmental agreement with the Town ("IGA") that are required under the respective Service Plans and set forth in Exhibits K part II, and N to the Commercial Metropolitan District Service Plan and to the Residential Metropolitan District Service Plan, and shall provide the fully executed originals of the District indemnity letters and the IGAs,to the Town. If any of the above-stated conditions (a) through (d) are not met, the Town may file a motion with the District Court of Weld County requesting that the hearing on the organization of the Districts be delayed until such conditions are met, and Developer has represented that it will not oppose such motion. Further, if any of the above-stated conditions (a) through (e) are not met, the Town may pursue all legal and equitable remedies available to it for failure of compliance with such conditions of approval. Section 5. That the Service Plan of Cottonwood Hollow Commercial Metropolitan District, as set forth in Exhibit A to this Resolution and dated October 13, 2004, is hereby approved subject to the conditions stated in Section 4 above, in accordance with Section 32-1- 204.5(1)(c), C.R.S., and subject to the revisions set forth in Exhibit C. Section 6. That the Service Plan of Cottonwood Hollow Residential Metropolitan District, as set forth in Exhibit B to this Resolution and dated October 13, 2004, is hereby approved subject to the conditions stated in Section 4 above, in accordance with Section 32-1- 204.5(1)(c), C.R.S., and subject to the revisions set forth in Exhibit D. Section 7. That a certified copy of this Resolution be filed in the records of the Town of Firestone and submitted to the Developer for the purpose of filing in the District Court of Weld County for further proceedings concerning Cottonwood Hollow Commercial Metropolitan District and Cottonwood Hollow Residential Metropolitan District. RESOLVED,ADOPTED AND APPROVED this day of October,2004. TOWN OF FIRESTONE, COLORADO • (SEAL) " ATTEST: Michael P. Simone Mayor Judy Hegwood Town Clerk Ion 5/2004729 AM]ejI]Y:IRcnaslMetropolitan DioricesTa woodHollcwAppowlRel./x 3 CERTIFICATE I, Judy Hegwood, Town Clerk of the Town of Firestone, Colorado, do hereby certify that the above and foregoing is a true, correct and complete copy of a resolution adopted by the Board of Trustees of the Town of Firestone, Colorado, at a public meeting held on the day of October, 2004. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the Town of Firestone, Colorado,this day of October,2004. (SEAL) .. Town Clerk 4 EXHIBIT A (Copy of Commercial Metropolitan District Service Plan) EXHIBIT B (Copy of Residential Metropolitan District Service Plan) 5 EXHIBIT C REVISIONS TO COTTONWOOD HOLLOW COMMERCIAL METROPOLITAN DISTRICT SERVICE PLAN (Firestone Board of Trustees Meeting, October 14,2004) I. Page 5, 10th line under III, revise the sentence beginning with "The current and..." to read as follows: "The current population of the District is zero (0); the estimated daytime population of the District at full build-out is one thousand and forty-five (1,045)." 2. 6, line 1, change "commercial" to "Planned Unit Development, for Regional Commercial and Employment Center uses." 3. Page 14, 2"d line under"V. Financial Plan," after"limitations," strike "associated with" and insert"and other financial requirements and restrictions for". 4. Page 17, lines 17-20, delete sentence beginning with "In the event" and ending with "Service Plan." 5. Page 18, line 4, after "authorized to" delete "issue bonds" and insert "incur any financial obligations of any kind or perform any other functions authorized under this Service Plan". 6. Page 19, lines 8-9, delete the phrase "attributable to inflation and biennial revaluation .. factors"and the phrase"for those factors". 7. Page 20, line 2, insert new sentence before sentence beginning with"The District is not authorized...," to read as follows: "The District is not authorized to impose any development fees or user charges as part of this Service Plan." 8. Page 20, 5th line of V.e,after"mills"insert"for debt service purposes". 9. Page 20,7th line of V.e.,change."Commercial"to"commercial". 10. Last line of page 20 and first line of page 21, after "District" close parentheses and delete",including both Commercial and commercial property". 11. Page 21,line 5,after first"District"insert"debt service". 12. Page 22,4th line under V.h.,change"IV.a."to"V.a." .. 13. Page 22, 8th line under V.h., insert new sentence before sentence beginning with "Such notes shall not...,"to read as follows: "The repayment of construction financing notes from proceeds of an equal or lesser principal amount of the District's bonds shall not be treated as an increase in the principal amount of District debt for purposes of the debt limit under this Service Plan." 14. Page 22, 13th line under V.h, insert following after "Commission": ", and the 6 Developer agrees that it will also be such an accredited investor if and when it acquires such notes." 15. Page 31, last line of Article XII,after"bondholders"insert", investors, lenders". 16. Exhibit E, submit prior to organizational election date a statement from the Engineer clarifying which drawings were used to calculate the costs estimates. (The spreadsheets reference 4/9/03 plans and the letter references 10/16/03 plans). 17. Exhibit G, Market Projections, submit prior to organizational election supplemental information explaining how the market studies relate to the schedules of estimated assessed valuation also contained in Exhibit G. 18. Exhibit J, Bond Counsel Letter, submitted updated letter that correctly quotes language taken from Service Plan text; also, change "our" to "or" in third line below quoted provision of Service Plan. 19. Exhibit K, Part II, in Section 2 of District Indemnity Letter, change reference from "Exhibit K"to"Exhibit M". 20. Exhibit L,Form of Disclosure Notice,revise second and third to last sentences to read as follows(changes shown in underline and Atilt-coot): The financial forecast for the District(as set forth in its Service Plan) assumes that the District will be able to set its tax levy at approximately forty(40.000)mills or less for 2006 through 20402037 for debt service and administration purposes: (subject to Except for certain adjustments permitted by the Service Plan to compensate for legally required changes in commercial residential—valuation ratiosi, Except for adjustments permitted by the Service Plan for such changes in commercial valuation ratios.the District shall not impose a debt service mill levy in excess of forty(40.000) _ mills and shall not impose a mill levy for administration, warranty maintenance and other operating expenses in excess of six (6.000)mills. 21. Exhibit N, change title of Section 4 to read "Town Approval Requirements; Review of District Submittals." 7 EXHIBIT D REVISIONS TO COTTONWOOD HOLLOW RESIDENTIAL METROPOLITAN DISTRICT SERVICE PLAN (Firestone Board of Trustees Meeting, October 14, 2004) 1. Page 6, line 4, change "agricultural" to "Planned Unit Development, for residential uses". 2. Page 14, 2"d line under"V. Financial Plan," after"limitations," strike "associated with" and insert"and other financial requirements and restrictions for". 3. Page 16, lines 12 through 14 under V.b, change "sixty (60)" to "thirty-six (36)" and change "Six Million Three Hundred Ninety Thousand One Hundred Forty-Six Dollars ($6,390,146.00)" to "Four Million Six Hundred Seventy-Five Thousand Sixty-Three Dollars($4,675,063.00)". 4. Page 17, change lines 3 through 9 to read as follows (changes shown in underline and strikeout): "(representing, together with undeveloped land in the District, a total of approximately Seven Million Seven Hundred Forty Eight Thousand Seven Hundred Five Dollars($7,748,705.00) in assessed valuation), and one hundred fifty-six (156) fourteen (114) remaining residential units have received building permits (representing, together with the one hundred thirty (130) units which have received certificates of occupancy and together with undeveloped land in the District, a total of approximately Seven Million Seven Hundred Forty-Eight Thousand Seven Hundred Five Dollars ($7,748,705.00) Nine Million One Hundred Sixty One Thousand Six Hundred Seventy Dollars ($9,161,670.00) in assessed valuation), and all public improvements serving such residential...". 5. Page 17, lines 17-20, delete sentence beginning with "In the event" and ending with "Service Plan." 6. Page 18, lines 4-7, delete sentence beginning with "In the event" and ending with "Service Plan" 7. Page 19, lines 18-19,delete the phrase"attributable to inflation and biennial revaluation factors"and the phrase"for those factors". 8. Page 20,line 12,insert new sentence before sentence beginning with"The District is not authorized...," to read as follows: "The District is not authorized to impose any development fees or user charges as part of this Service Plan." r. 9. Page 21,5th line of V.e,after"mills"insert"for debt service purposes". 10. Page 21, 15th line of V.e,after first"District"insert"debt service". 11. Page 23, line 5, insert new sentence before sentence beginning with "Such notes shall not...," to read as follows: "The repayment of construction financing notes from proceeds of an equal or lesser principal amount of the District's bonds shall not be treated as an increase in the principal amount of District debt for purposes of the debt limit under this Service Plan." 12. Page 23, line 10, insert following after "Commission": ", and the Developer agrees that it will also be such an accredited investor if and when it acquires such notes." 13. Page 29, 5`h line under Article X, change"Exhibit M"to"Exhibit N". 14. Exhibit E, submit prior to organizational election date a statement from the Engineer clarifying which drawings were used to calculate the costs estimates. (The spreadsheets reference 4/9/03 plans and the letter references 10/16/03 plans). 15. Exhibit G, Market Projections, submit prior to organizational election supplemental information explaining how the market studies relate to the schedules of estimated assessed valuation also contained in Exhibit G. 16. Exhibit J, Bond Counsel Letter, submitted updated letter that correctly quotes language taken from Service Plan text; also,change "our"to "of' in third line below quoted provision of Service Plan. 17. Exhibit K, Part II, in Section 2 of District Indemnity Letter, change reference from "Exhibit K"to"Exhibit M". 18. Exhibit L,Form of Disclosure Notice,revise second and third to last sentences to read as follows(changes shown in underline and strikeout): The financial forecast for the District(as set forth in its Service Plan)assumes that the District will be able to set its tax levy at approximately forty-five and nine hundred seventy-nine one thousandths (45.979) mills or less for 2006 through 2037 for debt service and administration purposes. (subject to Except for certain adjustments permitted by the Service Plan to compensate for legally required changes in residential valuation ratios)Except for adjustments permitted by the Service Plan for such changes in residential valuation ratios, the District shall not impose a debt service mill levy in excess of fifty (50.000)mills and shall not impose a mill levy for administration, warranty maintenance and other operating expenses in excess of six (6.0003-mills. 19. Exhibit N, fourth line of Section 2, change 'Neighbors Point" to "Cottonwood Hollow". Hello