HomeMy WebLinkAbout20052956.tiff LEGACY PARK
METROPOLITAN DISTRICT NO. 2
SERVICE PLAN
CITY OF DACONO,COLORADO
FINAL
SEPTEMBER 12, 2005
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TABLE OF CONTENTS
I. Introduction 1
II. Purpose of the Proposed District 4
III. Boundaries, Population&Valuation 5
IV. Description of Proposed Facilities 7
a. Type of Improvements 7
b. Description of Existing Conditions 10
c. Anticipated Development 10
d. Public Improvement Schedule 11
e. City Construction Standards 11
f. Limitation on Eminent Domain 11
g. Dedication of Improvements to the City 12
h. Ownership and Maintenance of Public Improvements by the District 13
i. Acquisition of Land for Public Improvements 14
j. Services to be Provided by other Governmental Entities 14
k. Integration 15
V. Financial Plan 15
a. General 16
b. Debt Issuance 17
c. Other Financial Restrictions, Limitations and Requirements 19
d. Limited Mill Levy 21
e. Investor Suitability 22
f. Refunding Bonds 22
g. Developer Bonds 23
h. Construction Financing Notes Issued to Developer 24
i. Identification of District Revenue 25
j. Security for Debt 26
k. Services of District 26
1. Quinquennial Review 27
m. Letters 27
VI. Landowners' Obligations as to Public Improvements 27
VII. Annual Report 28
VIII. Dissolution 30
IX. Consolidation 31
-� X. Elections 31
XI. Indemnities 33
XII. Disclosure and Disclaimer;No Third-Party Rights 33
XIII. Intergovernmental Agreements 34
XIV. Conservation Trust Fund 35
XV. Modification of Service Plan 35
XVI. Failure to Comply with Service Plan 37
XVII. Resolution of Approval 38
XVIII. Severability 38
XIX. Certification 39
TABLE OF EXHIBITS
Exhibit A Legal Description
Exhibit B Boundary Map
Exhibit C Vicinity Map
Exhibit D Property Owner's Consent
Exhibit E Engineer's Estimate of Costs and Certification
Exhibit F Location of Public Improvements
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
Exhibit H Underwriter's Letters
Exhibit I Legal Counsel Letter
Exhibit J Part I - Developer Indemnity Letter
Part II- District Indemnity Letter
Exhibit K Form of District Disclosure Statement
Exhibit L Form of City Disclaimer Statement
Exhibit M Form of Intergovernmental Agreement between District and City
Exhibit N Resolution of City Council Approving Service Plan
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LEGACY PARK METROPOLITAN DISTRICT NO. 2
SERVICE PLAN
I. INTRODUCTION
The District shall be named the Legacy Park Metropolitan District No. 2 (the "District").
The purpose of the District is to fmance certain streets, street lighting, traffic and safety controls,
water, landscaping, storm sewers and flood and surface drainage, and park and recreation
improvements for a proposed development to be known as Legacy Park. The developer of
Legacy Park and the petitioner for the formation of the District is Trinity Trust LLC, a Colorado
limited liability company(the"Developer"). The District is intended to provide for the financing
of public improvements for Legacy Park, but is not intended to be a District with perpetual
existence. The District will consist of approximately one hundred twenty-eight and thirty-four
one-hundredths (128.34) acres and no changes in the District's boundaries are anticipated or
authorized. The District shall be dissolved when its fmancial obligations are paid or provided for
or when the City of Dacono, Colorado 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
financed, constructed, installed, or acquired by the District shall be dedicated and conveyed to
the City or its designee, and will be operated and maintained by the City or its designee upon
City acceptance and completion of the District's warranty obligations. The City may require any
specific landscaping improvements dedicated and conveyed to the City be maintained by a
homeowners' association formed for Legacy Park, for the use and benefit of residents, taxpayers,
and property owners. The District shall not provide fire protection or emergency services, which
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fire protection and emergency services shall be provided by the Mountain View Fire Protection
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 expressly authorized by and in a manner consistent with this Service Plan. All functions,
activities, improvements, services, and programs of the District are limited to those expressly
authorized in this Service Plan, notwithstanding any different, additional, or expanded powers or
authority that may be granted to the District by any present or future statutory or regulatory
provisions.
The District is generally located south of State Highway 52 and east of York Street(Weld
County Road 11). 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
Trinity Trust LLC Miller, Gruber&Rosenbluth, LLC
_ a Colorado limited liability company Jennifer L. Gruber, Esq.
Thomas M. Huth 700 17th Street, Suite 2200
2971 Spinnaker Place Denver, Colorado 80202
Longmont, Colorado 80503 (303) 285-5320
(303) 678-5224 (303) 285-5330—facsimile
(303) 702-1785—facsimile igruber@mgrlawfirm.com
_ tmhuth@comcast.net
Investment Banker Engineer
Kirkpatrick, Pettis, Smith, Polian Inc. Carroll& Lange,Inc.
Andy Kane Russell L. Burrows, P.E.
1600 Broadway Street, Suite 1100 165 South Union Boulevards, Suite 156
Denver, Colorado 80202 Lakewood, Colorado 80228
(303) 764-5751 (303) 980-0200
(303) 764-5770—facsimile (303) 980-0917—facsimile
akaneakpsp.com rburrowsna,carroll-lange.com
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Bond Counsel Accountant
Kutak Rock,LLP Clifton Gunderson, LLP
Saranne K. Maxwell, Esq. Dawn Jones
1801 California Street, Suite 3200 6399 South Fiddler's Green Circle, Suite 100
Denver, Colorado 80202 Greenwood Village, Colorado 80111
(303)292-7704 (303) 779-5710
(303) 292-7799—facsimile (303) 779-0348—facsimile
saranne.maxwell@kutalcrock.com dawn.jones@cliftoncpa.com
r Market Projection Consultant
DRM Real Estate Advisors, L.L.C.
Derek R. Maunsell, MAI
Post Office Box 270898
Fort Collins, Colorado 80527
(970) 267-2900
(970) 267-2900—facsimile
derekmaunsell@drmrealestate.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
§ 32-1-202(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 financed, 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;
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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
District are compatible with facility and service standards of the City and special districts that are
interested parties pursuant to § 32-1-204(1), C.R.S.;
£ A general description of the estimated cost of acquiring land, engineering
services, legal services, administrative services, initial proposed indebtedness, 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 Legacy Park,which
improvements shall be dedicated and conveyed to the City or its designee as provided in this
Service Plan, or as otherwise required by the City. A certain number of limited improvements,
upon the direction and consent of the City, will be dedicated and conveyed to other servicing
districts, or, upon prior written approval of the City, retained by the District and operated and
maintained by the District or a successor non-profit homeowners' association, for the use and
benefit of residents, taxpayers, and property owners. The public improvements shall be financed
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,
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and shall not perform any services without the consent of the City as evidenced by a resolution
of approval of the City of Dacono City Council. In addition, the District will not contract with
any other governmental entity to receive any services that are or may become available from the
City, or to provide any services to or within any other governmental entity, without the prior
written consent of the City. The District shall not provide any services or facilities within any
area of the District that overlaps with the service area of another special district without first
obtaining the written consent of each and every special 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 City, subject to then-applicable statutory requirements, all as
_ further provided in Article VIII.
III. BOUNDARIES,POPULATION& VALUATION
The District consists of approximately one hundred twenty-eight and thirty-four one-
hundredths (128.34) acres located entirely within the boundaries of the City, 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, Trinity Trust LLC, a Colorado limited liability company, also the Developer of the
District property, is the sole owner of all property to be included in the proposed District. Trinity
Trust LLC has consented to the formation of the District, which consent is attached hereto as
Exhibit D and incorporated herein by this reference.
Legacy Park is being developed for the anticipated construction of four hundred nine
(409) single-family homes and two hundred (200) townhomes. The current population of the
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District is zero. The estimated population of the District at full build-out is one thousand seven
hundred four (1,704) people, subject to development approval by the City. It is acknowledged
that City development standards and requirements may affect the foregoing numbers of
anticipated homes and population. The estimated assessed value at full build-out is Fourteen
Million Eight Hundred Seventy-Seven Thousand Four Hundred Twenty-Two Dollars
($14,877,422.00). The property is currently zoned for residential uses. The current assessed
valuation of the District for purposes of this Service Plan is Zero Dollars ($0.00). The total
overlapping mill levy imposed upon the property within the proposed District for tax collection
year 2004 was one hundred two and six hundred seventy-three one-thousandths(102.673)mills.
The District shall be required to obtain written approval from the City 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 City
Council, 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 City 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
City may impose. No changes in the boundaries of the District shall be made unless the prior
written approval of the City Council has been obtained as part of a Service Plan modification, as
provided herein.
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IV. DESCRIPTION OF PROPOSED FACILITIES
a. Type of Improvements.
The District will finance, construct, acquire and install public improvements consisting of
streets, street lighting,traffic and safety controls, water, landscaping, storm sewers and flood and
surface drainage, and park and recreation improvements and facilities (as the foregoing terms are
used in § 32-1-1004(2), C.R.S. and the sections referenced therein) within the boundaries of the
District, and shall operate and maintain specific public improvements as directed or approved by
the City, all as limited by this Service Plan.
The Central Weld County Water District (the "Water District"), by contract, provides
potable water to the City for delivery to City water users. The Water District owns and
maintains treatment, distribution, and storage facilities (including pump station(s), elevated
tank(s), and master meters and appurtenances) and delivers water to the City water system at
certain master meter locations. The property within the District will receive water service from
_ the City through the City's arrangements with the Water District. The District, together with the
Developer, may provide fmancing for Water District water system improvements and facilities
that may be necessary for service to areas within the District, which facilities and improvements
are to be designed, constructed, installed, or acquired by the Water District. The District will
also provide for the design, construction, acquisition, and installation of City water system
improvements and facilities located within the boundaries of the District. In addition, a separate
raw water irrigation system will be installed by the District if it is determined by the Developer
and the City to be feasible and if it is approved by the City. The District will provide fmancing
for the City water system improvements, together with the Developer, as more fully set forth
below. All Water District system improvements shall be owned by the Water District. All City
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water systems improvements shall be dedicated to, conveyed to, and owned by the City upon
acceptance and completion of the District's warranty obligations. A separate raw water
irrigation system, if authorized by the City, shall, at the City's option, either be dedicated and
conveyed to the City or its designee, or owned by the District and maintained by the District or a
homeowners' association. All water rights for water service to the property and for any raw
water irrigation system shall be owned by the City. The District will not purchase, own,manage,
adjudicate, or develop any water rights or water resources; provided, however, that, upon the
prior written consent of the City, which may be granted or denied in the City's sole discretion,
the District may manage, adjudicate, or develop those water rights proposed for use in any raw
water irrigation system. The Developer, at its expense, is responsible for achieving any required
fire flows.
The District shall not design, construct, acquire, or install water improvements or
facilities through contracts by the District, including off-site improvements, except upon
_ approval of the City and Water District with respect to the Water District system, and the City
with respect to the City water system. Any intergovernmental agreement between the District
and the Water District shall be submitted to the City for review and shall be approved by the City
prior to execution by the District.
The District shall not construct any facilities outside the boundaries of the District, except
as necessary to connect service for the District to the facilities of other entities involved in
providing services to the District as described in this Service Plan, or as approved or directed by
the City, or, with the City's consent, as approved or directed by other governmental entities
having jurisdiction. However, the District shall not construct any water facilities, except any
approved separate raw water irrigation system and those facilities approved by the City for the
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City water system, without the prior written consent of the Water District, which consent may be
withheld for any reason or for no reason.
The Organizers of the District have prepared a preliminary engineering report based on
the City's construction standards. The table attached hereto as Exhibit E lists all facilities that
_ the District, subject to development approval of the City, 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. The combined estimated cost of the improvements is Seven Million Six Hundred
Ninety-Seven Thousand Seven Hundred Seventy-Six Dollars ($7,697,776.00),which exceeds the
estimated debt capacity of the District. Funding for improvements not funded by the District
shall remain the responsibility of the Developer of the property, which amount is presently
estimated to be One Million Eight Hundred Three Thousand Eight Hundred Sixty-Three Dollars
($1,803,863.00) (the difference between the total estimated cost of the improvements and the
total estimated net proceeds projected to be received from the District's general obligation
bonds). The City is not responsible for assuming any of the costs of the improvements funded by
the District or necessary for service to Legacy Park.
A map showing the location of the public improvements to be financed by the District is
attached hereto as Exhibit F. The District shall be authorized to finance, acquire, design,
construct, and install those types of public improvements and facilities authorized under this
Article IV and generally shown on Exhibit F, subject to development approval by the City.
Phasing of construction shall be in accordance with a phasing plan approved by the City, which
plan shall comply with City development and construction standards and be designed to meet the
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needs of residents and taxpayers within the boundaries of the District. The engineering exhibits
provided herein are preliminary. Upon the prior written approval of the City, the District may,
without amending this Service Plan, relocate or redesign improvements or facilities to be
provided by the District as necessary to comply with City design requirements or to better
accommodate the pace of growth and resource availability within the District. All public
improvement locations, designs, plans, and specifications are subject to City approval. City
consideration of any proposed changes in locations, designs, plans, and specifications for public
_ improvements may be undertaken through the development review process for Legacy Park.
b. Description of Existing Conditions.
The area is predominantly undeveloped.
c. Anticipated Development.
The Developer anticipates total build-out to occur by 2013, with the completion of thirty-
three (33) single-family homes in 2007, fifty-six (56) single-family homes and twenty (20)
_ townhomes in 2008, sixty-four(64) single-family homes and thirty-six (36) townhomes in 2009,
sixty-four (64) single-family homes and thirty-six (36) townhomes 2010, sixty-four (64) single-
family homes and thirty-six (36) townhomes in 2011, sixty-four (64) single-family homes and
thirty-six (36) townhomes in 2012 and sixty-four (64) single-family homes and thirty-six (36)
townhomes in 2013, subject to final design and development approval by the City. It is
acknowledged by the Developer that City approvals are required that have not yet been obtained
_ for Legacy Park, and that City development standards and requirements may affect the foregoing
numbers of anticipated homes and the foregoing anticipated build-out schedule.
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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 City for
_ Legacy Park.
e. City Construction Standards.
All proposed facilities and improvements shall be designed and constructed in
accordance with the standards and specifications established by the City and in effect from time
to time, and with applicable standards and specifications of the federal government and the State
of Colorado. All proposed facilities and improvements shall be compatible with those of the
City and other governmental entities having jurisdiction, including, but not limited to, the Water
District. The District and its engineer have designed and shall design the facilities and
improvements to meet such standards, specifications and compatibility requirements. The
District will obtain approval of civil engineering plans and permits for construction and
installation of facilities and improvements from the City prior to construction or installation.
The District shall be subject to all applicable provisions of the Dacono Municipal Code and to all
_ City 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 City
and shall not exercise any power of eminent domain without the prior written consent of the
City. No exercise of eminent domain by the District is contemplated or authorized in this
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Service Plan, and any proposed use thereof shall be considered a material modification of this
Service Plan subject to the City's prior written approval.
g. Dedication of Improvements to the City.
Except as specifically set forth in Article IV.h., below, the District shall dedicate and
convey to the City or its designee, or cause to be dedicated and conveyed to the City or its
designee, all public improvements and facilities, including, but not limited to, all streets, street
lighting, traffic and safety controls, water, landscaping, storm sewers and flood and surface
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 already been acquired
_ by the City 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 and
except to the extent expressly permitted by Article IV.h., below. The District shall also dedicate
and convey to the City 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 the City or its
designee immediately upon completion of construction, installation, and expiration of the two (2)
year warranty period that commences after the City has issued Initial Acceptance as set forth
below. All improvements, facilities, rights-of-way, fee interests, and easements shall be
conveyed and dedicated to the City or its designee by instruments acceptable to the City, free and
clear of all liens and encumbrances, except those acceptable to the City in its sole discretion.
Failure to comply with the requirements of this Article IV.g. shall be deemed an unauthorized
material modification of this Service Plan.
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Once a public improvement to be dedicated to the City is constructed and installed,the City
shall issue an "Initial Acceptance" letter stating the improvement has been constructed or installed
in conformance,with the City's standards, or shall issue a letter specifying the corrections necessary
to bring the improvement into compliance with City standards for the issuance of such "Initial
Acceptance" letter. The District at its expense shall promptly undertake any necessary corrections.
Upon issuance of the "Initial Acceptance" letter, the public improvements shall be warranted for
two (2) calendar years from the date of such "Initial Acceptance", during which time the District
_ shall maintain the improvements and correct all deficiencies therein as directed by the City. At the
conclusion of such two (2) year period, the City shall issue a"Final Acceptance"letter if the public
improvements conform to the City's specifications and standards, or shall issue a letter specifying
the corrections necessary to bring the improvement into compliance with City standards for the
issuance of such a "Final Acceptance" letter. The District at its expense shall promptly undertake
any necessary corrections. A"Final Acceptance"meeting shall then be arranged, at which time the
City will issue"Final Acceptance"for all public improvements to be accepted by it, and the District
will execute and deliver to the City all necessary instruments to dedicate and convey to the City the
improvements and facilities,and all necessary rights-of-way,fee interests,and easements.
_ h. Ownership and Maintenance of Public Improvements by the District.
Except for facilities and improvements described in this Article IV.h., 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, except
through approval by the City of an amendment to this Service Plan. The District shall have
authority to operate and maintain the improvements described in this Article IV.h.
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Tract landscaping improvements will be retained by the District for operations and
_ maintenance, except that upon request of the City, any such improvements and facilities shall
promptly be dedicated and conveyed to, and thereafter owned, operated, and maintained by the
City or its designee. If retained by the District, the District may contract with a non-profit
_ homeowners' association for operation and maintenance of these improvements and facilities.
Any contract with a homeowners' association must be approved by the City in advance, and the
City may require assurances that a homeowners' association accepts the operation and
maintenance obligations and has the financial ability to undertake such obligations.
i. Acquisition of Land for Public Improvements.
The District shall acquire, at no cost to the City, all lands or interests in land required by
the City for construction of streets, street lighting, traffic and safety controls, water, landscaping,
storm sewers and flood and surface 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 City. All land and interests in land shall be conveyed to the City or its designee at no cost to
the City at such times and by such instruments of conveyance as the City may reasonably
_ require, free and clear of all liens and encumbrances. Exceptions must be approved by the City
in advance and in writing. Failure to comply with this provision shall be deemed a 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 water, sanitary sewer, park and recreation, or other services or functions
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within the District. The District shall obtain a letter 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. The District shall obtain a resolution from the
Water District consenting to the overlapping boundaries for financing purposes only. The
_ District shall not provide ongoing water services to the District. The District shall receive
sanitary sewer service from the St. Vrain Sanitation District. The District shall not provide
sanitary sewer services to the District. The District is within and shall receive fire protection and
emergency services from the Mountain View Fire Protection District, or any successor entity
thereof Nothing herein shall limit or discharge the District's responsibilities for operation,
maintenance, and repair of public improvements prior to their acceptance by the City and
_ conveyance to the City or its designee, or limit or discharge the District's warranty obligations.
k. Integration.
All facilities and improvements shall be constructed so as to be integrated with existing
_ and planned facilities and improvements of the City and other entities providing service to
Legacy Park. The District shall obtain from such other serving entities approval of the proposed
plans for the facilities and improvements.
V. FINANCIAL PLAN
This Article V describes the nature, basis, method of funding, debt and mill levy limitations,
and other financial requirements and restrictions for the District's public improvements program
and operations. Together with the Financing 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 Financing Plan, consisting of the Accountant's Forecasted Cash
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Surplus Balances and ('ash 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 is contained in Exhibit G, attached hereto and incorporated
herein. The Financing 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
Financing 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 Financing 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 primarily
financed through the issuance of general obligation (limited tax) bonds (the "bonds"), secured by
the ad valorem taxing authority of the District and other District revenues, as discussed below. For
all purposes of this Service Plan,the terms "bonds,""general obligation bonds,""general obligation
debt," "general obligation indebtedness," or any similar term shall mean limited tax general
obligation bonds as further provided in V.d.,below. The Financing Plan anticipates the issuance of
one (1) series of bonds in 2009. The combined total estimated cost of the improvements is Seven
Million Six Hundred Ninety-Seven Thousand Seven Hundred Seventy-Six Dollars ($7,697,776.00).
The District has the capacity to issue general obligation bonds in the aggregate principal amount of
approximately Seven Million Five Hundred Fifty Thousand Dollars ($7,550,000.00), projected to
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yield net bond proceeds of approximately Five Million Eight Hundred Ninety-Three Thousand Nine
Hundred Thirteen Dollars ($5,893,913.00). Accordingly, it is currently anticipated that the bond
proceeds will be insufficient to allow for repayment of One Million Eight Hundred Three Thousand
Eight Hundred Sixty-Three Dollars ($1,803,863.00), 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 assessed values, lower interest rates, or other changed
circumstances), the District may agree to repay the Developer for unreimbursed 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 by the
Developer for capital costs of District public improvements.
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.
b. Debt Issuance.
This Service Plan authorizes only the issuance of general obligation bonds, except as
provided below with respect to notes issued to the Developer for construction financing. All
financial obligations of the District are subject to the provisions as to the Limited Mill Levy and
other limitations as set forth below. Other than ad valorem property taxes, specific ownership
taxes, facility fees, amounts capitalized from bond proceeds, and investment income on the
foregoing, no District revenues shall be pledged to any financial obligations of the District. The
District may be authorized to issue revenue bonds, certificates, debentures, or other evidences of
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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 intends to issue one (1) series of general obligation bonds in the aggregate
principal amount of approximately Seven Million Five Hundred Fifty Thousand Dollars
($7,550,000.00). 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 Eight Million Three Hundred
Five Thousand Dollars ($8,305,000.00) ("debt limit"); except to the extent otherwise provided in
Article V.f. 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 bonds will be issued in the approximate amount of Seven Million Five Hundred Fifty
Thousand Dollars ($7,550,000.00) and are anticipated to be issued in 2009. All net proceeds of
the bonds issued by the District (after deduction of reasonable amounts for capitalized interest,
capitalized reserves, and issuance costs) will immediately be deposited into an escrow account
held by the bond trustee. Bond proceeds will be released from the escrow account into an
unrestricted account on a pro rata basis as building permits are issued by the City, as further
described below. The amount of bond proceeds released into the unrestricted account will be on
a per unit basis (single-family and townhomes, combined). For example, the net bond proceeds
from the bonds are anticipated to be Five Million Eight Hundred Ninety-Three Thousand Nine
Hundred Thirteen Dollars ($5,893,913.00). Therefore, approximately Nine Thousand Six
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Hundred Seventy-Eight Dollars ($9,678.00) per unit will be transferred from the escrow account
to the unrestricted account upon the issuance of each building permit; provided, however, that
such transfers from the escrow account shall not be made unless all public improvements
required to serve the dwelling units for which such building permits have been issued have been
completed and initially accepted by the City in accordance with the City's subdivision
requirements and the subdivision agreement.
By depositing net bond proceeds into an escrow account and releasing portions of such
_ proceeds only upon the conditions described above, the City, its taxpayers, and its residents can
be assured that continued development will occur to pay the bonds and, to the extent
development does not occur, the escrow account will be used to defease the bonds within the
time required by any applicable federal requirements for tax-exempt bonds, but in no event later
than three (3) years from the date of issue and, as a result, there will not be an excessive debt
burden on the property tax base of the District. The District's Investment Banker has indicated
that issuance of building permits is a generally accepted lending criterion for special district debt
and that, accordingly, the escrow release requirements will evidence sufficient development
activity within the District to support repayment of the corresponding debt. The anticipated par
amount of the bonds is an estimate only. The actual amount of the bonds issued will be subject
to assessed valuations and market conditions as they exist at the time of issuance of the bonds,
and will be issued only in compliance with the above-stated debt limit and all other requirements
and restrictions of this Service Plan.
c. Other Financial Restrictions,Limitations and Requirements.
The District shall request voter authorization for a maximum of Eight Million Three
Hundred Five Thousand Dollars ($8,305,000.00) of general obligation debt (together with
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construction fmancing notes) to account for 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; however, the debt limit imposed by
this Service Plan shall control unless modified with the City's approval pursuant to Article XV
hereof. Any increase in the amount of general obligation debt (together with construction
financing notes) actually issued in excess of the projected amounts shown in Exhibit G will be
consistent with the District's debt capacity at the time of such issuance (based on higher than
anticipated assessed values, lower interest rates, or other changes from projected circumstances).
The authorized maximum voted interest rate is eighteen percent (18%) per annum and the
maximum underwriting discount is four percent (4%) of bond principal. The actual interest rates
and discounts, within such maximum voted amounts, will be determined at the time the bonds
are sold by the District and will reflect market conditions at the time of sale. The term of any
bonds issued by the District shall not exceed thirty(30) years.
_ Estimated interest rates used in the Financing Plan are based on information furnished by
the underwriters, Kirkpatrick, Pettis, Smith, Polian Inc. In the event bonds are issued at an
interest rate higher than the estimated rates used in the Financing Plan, the principal amount of
bonds will be reduced so as to result in total debt service payments approximately equal to those
projected in the Financing Plan, and so that debt service on the bonds can be paid from the
.r revenue sources contemplated in this Service Plan. If actual increases in District assessed
valuation are less than the projected increases for those factors as shown in the Financing Plan
forecasts, it is expected that the District would compensate by increasing its mill levy (subject to
the Limited Mill Levy)or by reducing the principal amount of the bonds issued.
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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 City, which
approval may be granted only by the City Administrator or the City Council.
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
a with all applicable state and federal 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.
d. Limited Mill Len.
"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
to make up any deficiencies in any debt service reserve for the bonds, but,together with all other
District mill levies (including, without limitation, all mill levies for administration, warranty
maintenance and other operating expenses), such mill levy shall not exceed fifty (50.000) mills;
provided, however, that if the ratio of actual valuation to assessed valuation for residential real
property (presently seven and ninety-six one-hundredths percent (7.96%), as shown in Exhibit
G) is changed pursuant to Article X, section 3(1)(b) of the Colorado Constitution and legislation
r implementing such constitutional provision, the fifty (50.000) mill levy limitation provided
herein will be increased or decreased (as to all taxable property in the District) to reflect such
-21 -
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.
e. Investor Suitability.
Except as provided below in this paragraph as to rated bonds and in Article V.g., below
with respect to Developer Bonds,the District's bonds shall be issued not in a public offering and
only to financial institutions or institutional investors within the meaning of § 32-1-
1101(6)(a)(IV), § 32-1-103(6.5)and § 11-59-103(8), C.R.S. The District shall provide for and
shall utilize appropriate minimum denominations and mechanisms and procedures for transfers
and exchanges of bonds that 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
that regularly rate such obligations, compliance with the institutional investor limitation set forth
above shall not be required.
f. 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
-22 -
bonds must comply with Article V.e., above, "Investor Suitability". Except to the extent
expressly provided in this Article V.f., 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.
B. Developer Bonds.
In lieu of issuing bonds to third party investors,the Developer may choose to purchase all
of the bonds (the "Developer Bonds"). Except as provided below in this Article V.g., Developer
Bonds shall not be sold,transferred, assigned, participated or used as security for any borrowing.
_ Developer Bonds shall not be subject to the escrow requirements of Article V.b., above;
however, Developer Bonds may be resold (or otherwise transferred, assigned, participated, or
used as security) only to the extent that the requirements for release from escrow (issuance of
building permits and initial acceptance of public improvements) have been met with respect to
the principal amount of Developer Bonds to be sold, transferred, assigned, participated, or used
as security. If and when Developer Bonds are resold by the Developer, such resale must comply
with the institutional investor requirements of Article V.e., above, (unless the Developer Bonds
have received an investment grade rating as described in the last sentence of Article V.e., above).
r
The purchase of Developer Bonds by the Developer shall not be subject to any underwriting
discount, and interest rates on Developer Bonds shall not exceed the estimated interest rates used
in the Financing Plan. Except as otherwise specifically 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 Developer Bonds, both when owned by the Developer
- 23 -
and upon any permitted resale, including, without limitation, Limited Mill Levy, debt limit,
maximum interest rate, maximum term, prohibition on acceleration, bank trustee requirement,
and opinion requirements. For purposes of ownership of Developer Bonds, the Developer shall
include all affiliates or entities under the majority control of the Developer ("controlled
affiliates"), provided that the Developer and any such controlled affiliate must be an accredited
investor, as that term is defined under sections 3(b) and (4)(2) of the federal "Securities Act of
1933"by regulation adopted thereunder by the Securities and Exchange Commission, at the time
of acquisition of the Developer Bonds. To the extent that transfers or exchanges of Developer
Bonds are permitted under this Article V.g., the District shall provide for and shall utilize
appropriate minimum denominations and mechanisms and procedures for transfers and
exchanges of Developer Bonds that are reasonably designed to insure continuing compliance
with applicable requirements and restrictions as provided in or cross-referenced by this Article
V.g. The Developer (including all controlled affiliates) assumes all risk of nonpayment or other
default on Developer Bonds, and shall comply with the above-stated limitations, restrictions, and
requirements regarding Developer Bonds.
r 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 limit, 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 or bond counsel opinion requirements.
- 24-
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 not be
general obligations of the District, shall bear no interest, shall be issued only to the Developer
(and, therefore, not subject to any underwriting discount), and shall not be sold, transferred,
assigned,participated, or used as security for any borrowing. The Developer hereby represents 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 it will also be such an accredited investor if and when it
acquires such notes. Such notes shall be paid from proceeds of the District's general obligation
bonds when and if received by the District (subject, however,to the escrow requirements of V.b.,
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 shall not exceed fifty (50.000) mills, except for Gallagher
adjustments permitted under Article V.d., above. 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 (40.000) mills will produce revenue sufficient to support debt service,
25
operations, and warranty maintenance expenses throughout the repayment period. The District
expects to impose facility fees upon property located within the District and may impose such
facility fees without the consent of or notification to the City, provided that such facility fees are
limited to a one-time imposition of One Thousand Five Hundred Dollars ($1,500.00) per single-
... family dwelling unit and One Thousand Dollars ($1,000.00) per townhome. The District shall
not impose any other fees or user charges, and the imposition of any other fee or charge shall be
considered an unauthorized material modification of this Service Plan.
j. Security for Debt.
The District will not pledge any City 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; and
compliance with state reporting and other administrative requirements. The first year's operating
budget (for 2006) is estimated to be Fifty Thousand Dollars ($50,000.00), increasing annually at
a rate of two percent (2%) to accommodate for inflation. The District currently anticipates that,
upon approval by the City, a non-profit homeowners' association will maintain some or all of the
improvements the District may retain pursuant to Article IV.h., above, which may further reduce
or eliminate the District's operations and maintenance obligations. Such improvements will be
retained by the District for operations and maintenance, unless the City requests that such
improvements be dedicated and conveyed to the City or its designee.
-26-
I. 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 City Council may accept such application or hold a public hearing
thereon and take such actions as are permitted by law. The District shall be responsible for
payment of the City's consultant and administrative costs associated with such review, and the
— City may require a deposit of the estimated costs thereof. The City shall have all powers
concerning the quinquennial review as provided by statutes in effect from time to time.
m. Letters.
Attached hereto as Exhibit H is an underwriter's letter stating its intention to underwrite
the District's financial obligations as proposed in the Financing Plan. Attached hereto as
Exhibit I is 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.
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 any
obligation to construct public improvements for Legacy Park, of the obligation to enter into a
subdivision improvements agreement regarding such improvements, of the obligation to provide
to the City letters of credit as required by the City to ensure the completion of such public
improvements, or of any other obligations to the City under City ordinances, rules, regulations,
- 27 -
or policies, or under other agreements affecting the property within the District or Legacy Park,
or any other agreement between the City 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 City 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 City
to do so. The District's fiscal year shall end on December 3O of each year. The content of the
_ annual report shall include information as to the following matters that 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;
h. Status of construction of public improvements;
i. The current assessed valuation in the District; and
_28 _
j. A schedule of all fees, charges and assessments imposed in the report year and
proposed to be imposed 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 City
approval of material modifications of this Service Plan or for any other required City 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
City, the District shall provide to the City a currently dated and written certificate, signed by the
President and Secretary of the District, certifying 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 City in providing further information as to, and promptly remedying, any such
noncompliance. The City reserves the right, pursuant to §§ 32-1-207(3)(c) and (d), C.R.S., to
request reports from the District beyond the mandatory statutory five (5) year reporting period.
The District shall provide the City with a copy of the District's financial statements annually. In
years where an independent audit is not conducted,the District shall provide the City with a copy
_ of the application for exemption and the response by the State Auditor. In addition to the
foregoing, the District shall cooperate with the City by providing prompt responses to all
reasonable requests by the City for information, and the District shall permit the City to inspect
all public improvements, facilities,books, and records of the District.
- 29 -
VIII. DISSOLUTION
_ Promptly when all 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 City and will cooperate
fully with the City 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 City's request, the
District will cooperate fully with the City to dissolve the District pursuant to a plan for
dissolution stating there are outstanding financial obligations and providing that the District will
continue in existence (with the City Council serving as the District Board if the City so elects)to
the extent 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 any District financial
obligations are owned by the Developer (or by the Developer's controlled affiliates as provided
in Article V.g.), the Developer shall cooperate fully, and shall cause any such controlled affiliate
_ to cooperate fully, with the City to dissolve the District. Also, on or after December 31, 2012, if
the District has not issued any of its general obligation bonds, the City shall have the right to
require the District to dissolve in accordance with applicable law, and the District will cooperate
fully with the City to dissolve the District.
- 30 -
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 (including the
Developer's controlled affiliates) and shall also be binding on the Developer's 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 City 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
special district without the prior written approval of the City Council.
_ X. ELECTIONS
Following approval of this Service Plan by the City, 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 will be scheduled. All elections will be conducted as provided in the court orders, the
Uniform Election Code of 1992 (as may from time to time be amended), and Article X §20 of
the Colorado Constitution (the "TABOR Amendment"), and are currently planned for November
1, 2005, 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
- 31 -
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 shall comply with
the TABOR Amendment, and 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:
Thomas M. Huth Paul B. Vernon
2971 Spinnaker Place 6781 South Gibraltar Court
Longmont, Colorado 80503 Centennial, Colorado 80016
Susan C. Huth Andrew Terranova
2971 Spinnaker Place 8523 Ute Highway
Longmont, Colorado 80503 Longmont, Colorado 80503
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Maria Terranova
8523 Ute Highway
Longmont, Colorado 80503
XI. INDEMNITIES
The fully executed Trinity Trust LLC Indemnity Letter attached hereto as Part I of
Exhibit J is submitted by the Developer to the City as part of this Service Plan. The form of the
District Indemnity Letter attached hereto as Part II of Exhibit J shall be executed by the District
and delivered to the City 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 City. The execution of such Indemnity Letters are material considerations in the
City's approval of this Service Plan, and the City has relied thereon in approving this Service
Plan.
XII. DISCLOSURE AND DISCLAIMER; NO THIRD-PARTY RIGHTS
The District will also record a statement against the property within the District that
includes notice of the existence of the District, the anticipated mill levy, and the maximum
, allowed mill levy. The form of the notice is attached hereto and incorporated herein as Exhibit
K, subject to any changes required by the City in the future. In addition, attached hereto as
Exhibit L is a form of the City's disclaimer statement. The District shall conspicuously include
this disclaimer statement, or any modified or substitute statement hereafter furnished by the City,
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
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the disclosure or the disclaimer set forth in Exhibits K and L,respectively, except as directed by
the City. Neither this Service Plan, the intergovernmental agreement to be entered into between
the City and the District as described in Article XIII below, nor any other related agreements
shall be construed to impose upon the City any duties to, or confer any rights against the City
upon, any bondholders, investor, lenders, or other third parties.
XIII. INTERGOVERNMENTAL AGREEMENTS
The District shall enter into an intergovernmental agreement with the City in substantially
the form set forth in Exhibit M. The District shall execute and deliver the intergovernmental
agreement to the City 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 duly executed and delivered to the
City. The execution of such agreement is a material consideration in the City's approval of this
_ Service Plan, and the City has relied thereon in approving this Service Plan.
The District anticipates entering into one or more intergovernmental agreements with
Legacy Park Metropolitan District No. 1 for the sharing of costs related to off-site public
improvements benefiting both districts. The total estimated costs of shared off-site
improvements are included in Exhibit E. The cost-sharing intergovernmental agreements are
expected to provide that, to the extent one district finances and constructs shared off-site
improvements, the other district shall reimburse the financing and constructing district for its
agreed-upon share of the costs of the shared off-site improvements, but only if such
reimbursement does not adversely affect the reimbursing district's ability to repay its bonds.
Any such cost-sharing intergovernmental agreement shall be subject to review and approval by
- 34 -
the City Council prior to its execution by the District, and the City Council may grant or
withhold such approval in its sole and absolute discretion.
No other intergovernmental agreements are proposed at this time. Any
intergovernmental agreements proposed regarding the subject matter of this Service Plan
_ (including, without limitation, the above-referenced cost-sharing agreements with Legacy Park
Metropolitan District No. 1) shall be subject to review and approval by the City Council prior to
their execution by the District. Failure of the District to obtain such approval shall constitute an
unauthorized material modification of this Service Plan.
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 City is eligible to apply. The District shall remit
to the City any and all conservation trust funds it receives.
XV. MODIFICATION OF SERVICE PLAN
The District shall obtain the prior written approval of the City 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:
a. Any change in the stated purposes of the District or additions to the types of
facilities, improvements,programs, activities, or functions provided by the District;
- 35 -
b. 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 the Financing Plan, or any change in debt limit, change in revenue type, or change
in maximum mill levy (except for any necessary Gallagher adjustment as provided in Article
V.d., above);
c. Any change in the types of improvements or estimated costs of improvements
from that set forth in Exhibit E of this Service Plan;
d. Failure by the District to enter into the intergovernmental agreement (the form of
which is attached hereto as Exhibit M) immediately upon the District's formation as provided in
Article XIII of this Service Plan, or failure by the District to execute and deliver the District
indemnity letter (the form of which is attached hereto as Exhibit J-II) immediately upon the
District's formation as provided in Article XI of this Service Plan;
e. 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;
f. The failure of the District to develop any capital facility proposed in its Service
Plan when necessary to service approved development within the District;
g. Any proposed use of the powers set forth in §§ 32-1-1101(1)(f) and —1101(1.5),
C.R.S.,respecting division of the District;
h. The occurrence of any event or condition defined under the Service Plan or
intergovernmental agreement as necessitating a service plan amendment;
i. The default by the District under any intergovernmental agreement;
- 36 -
j. Any of the events or conditions enumerated in § 32-1-207(2), C.R.S., of the
Special District Act; or
k. Any action or proposed action by the District that 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 that may be
identified as a material modification.)
The District will pay all reasonable expenses of the City, its attorneys and consultants, as
well as the City's reasonable processing fees, in connection with any request by the District for
modification of this Service Plan or administrative approval by the City of any request
hereunder. The City may require a deposit of such estimated costs.
XVI. FAILURE TO COMPLY WITH SERVICE PLAN
In the event it is determined the District has undertaken any act or omission that violates this
Service Plan or constitutes a material departure from the Service Plan(including,without limitation,
any material modification of this Service Plan as described in Article XV that is not duly authorized
by the City),the City may utilize the remedies set forth in the Colorado statutes to enjoin the actions
of the District; may withhold issuance of any pennit, authorization, acceptance, or other
administrative approval for Legacy Park; or 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 City 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 City of any provisions of this Service Plan.
- 37 -
XVII. RESOLUTION OF APPROVAL
The Developer and other proponents of the proposed District agree to and shall
incorporate the City Council's Resolution of Approval, including any conditions on such
approval, into the Service Plan presented to the Weld County District Court. Such resolution
shall be attached as Exhibit N.
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 held invalid or unenforceable, the District and City 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.
_ 38 _
XIX. CERTIFICATION
Ibis Service Plan is submitted to the City 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 City's hearing on the
proposed Service Plan to be duly given to all"interested parties"within the meaning of§ 32-1-204,
C.RS., 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.
TRINITY TRUST LLC, a Colorado limited
liability company
Thomas M. Huth,Manager
September 12, 2005
EXHIBIT A
Legal Description
LEGAL DESCRIPTION
LEGACY PARK METROPOLITAN DISTRICT NO. 2
SHEET 1 OF 3
LEGAL DESCRIPTION
A PARCEL OF LAND LOCATED IN THE NORTHWEST QUARTER AND SOUTHWEST QUARTER OF SECTION 1,
TOWNSHIP 1 NORTH, RANGE 68 WEST OF THE 6TH PRINCIPAL MERIDIAN, CITY OF DACONO, COUNTY OF WELD,
STATE OF COLORADO, SAID PARCEL BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE NORTHWEST CORNER OF THE SOUTHWEST QUARTER OF SAID SECTION 1 AND CONSIDERING
THE WEST LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 1 TO BEAR NORTH 00'38'46" WEST WITH ALL
BEARINGS CONTAINED HEREIN RELATIVE THERETO; THENCE ALONG SAID WEST LINE SOUTH 00'38'46" EAST, A
DISTANCE OF 984.85 FEET; THENCE NORTH 89'21'14" EAST, A DISTANCE OF 30.00 FEET TO A POINT ON THE
EASTERLY RIGHT OF WAY LINE OF WELD COUNTY ROAD NUMBER 11 AS DESCRIBED IN BOOK 86 AT PAGE 273
OF THE RECORDS OF THE WELD COUNTY CLERK AND RECORDER, SAID POINT ALSO BEING THE POINT OF
BEGINNING;
THENCE NORTH 89'21'14" EAST, A DISTANCE OF 30.00 FEET TO A POINT ON A CURVE;
THENCE ALONG A NON-TANGENT CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00", A RADIUS OF
25.00 FEET, A CHORD BEARING OF NORTH 44'21'14" EAST, AND AN ARC LENGTH OF 39.27 FEET;
THENCE NORTH 89'21'14" EAST, A DISTANCE OF 503.33 FEET TO A POINT OF CURVATURE;
THENCE ALONG A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00", A RADIUS OF 25.00 FEET,
AND AN ARC LENGTH OF 39.27 FEET;
THENCE NORTH 89'21'14" EAST, A DISTANCE OF 50.00 FEET TO A POINT ON A CURVE;
THENCE ALONG A NON-TANGENT CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00", A RADIUS OF
25.00 FEET, A CHORD BEARING OF NORTH 44'21'14" EAST, AND AN ARC LENGTH OF 39.27 FEET;
THENCE NORTH 89'21'14" EAST, A DISTANCE OF 150.00 FEET TO A POINT OF CURVATURE;
THENCE ALONG A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00", A RADIUS OF 25.00 FEET,
AND AN ARC LENGTH OF 39.27 FEET;
"- THENCE NORTH 89'21'14" EAST, A DISTANCE OF 50.00 FEET;
THENCE NORTH 00'38'46" WEST, A DISTANCE OF 10.00 FEET TO A POINT OF CURVATURE;
THENCE ALONG A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00", A RADIUS OF 20.00 FEET,
AND AN ARC LENGTH OF 31.42 FEET;
THENCE NORTH 89'21'14" EAST, A DISTANCE OF 54.90 FEET TO A POINT OF CURVATURE;
THENCE ALONG A CURVE TO THE LEFT HAVING A CENTRAL ANGLE OF 36'51'14", A RADIUS
OF 225.00 FEET AND AN ARC LENGTH OF 144.72 FEET;
THENCE NORTH 52'30'00" EAST, A DISTANCE OF 94.40 FEET TO A POINT OF CURVATURE;
THENCE ALONG A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00", A RADIUS OF 20.00 FEET,
AND AN ARC LENGTH OF 31.42 FEET;
THENCE NORTH 52'30'00" EAST, A DISTANCE OF 50.00 FEET TO A POINT ON A CURVE;
THENCE ALONG A NON-TANGENT CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00", A RADIUS OF
20.00 FEET, A CHORD BEARING OF NORTH 07'30'00" EAST, AND AN ARC LENGTH OF 31.42 FEET;
THENCE NORTH 52'30'00" EAST, A DISTANCE OF 160.00 FEET TO A POINT OF CURVATURE;
THENCE ALONG A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00", A RADIUS OF 20.00 FEET,
AND AN ARC LENGTH OF 31.42 FEET;
THENCE NORTH 52'30'00" EAST, A DISTANCE OF 50.00 FEET TO A POINT ON A CURVE;
THENCE ALONG A NON-TANGENT CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00", A RADIUS OF
20.00 FEET, A CHORD BEARING OF NORTH 07'30'00" EAST, AND AN ARC LENGTH OF 31.42 FEET;
THENCE NORTH 52'30'00" EAST, A DISTANCE OF 80,00 FEET;
THENCE NORTH 37'30'00" WEST A DISTANCE OF 344.79 FEET;
THENCE NORTH 05'53'30" WEST A DISTANCE OF 39.93 FEET;
THENCE NORTH 00'31'38" WEST A DISTANCE OF 270.91 FEET TO THE NORTHEAST CORNER OF THE WEST HALF
OF THE SOUTHWEST QUARTER OF SAID SECTION 1;
f Carroll & Lange?
Professional Engineers 8 Land Surveyors
1\/ Lakewood,Sod,Union dBo 8 228 156
165Sth nionaBl 80229
(303)980-0200
P:\3111\EIOIIBITSVATRO—OIST\3111—Y-01ST-2.Ewg. SHEET 1 CF 3,PREPARED 7/11/05 JR: 3111
LEGAL DESCRIPTION
LEGACY PARK METROPOLITAN DISTRICT NO. 2
SHEET 2 OF 3
LEGAL DESCRIPTION
THENCE NORTH 00.24'09" WEST ALONG THE EAST LINE OF THE WEST HALF OF THE NORTHWEST QUARTER OF
SAID SECTION 1 A DISTANCE OF 20.00 FEET;
THENCE NORTH 89'59'21" EAST A DISTANCE OF 620.04 FEET;
THENCE SOUTH 00'00'39" EAST A DISTANCE OF 20.00 FEET TO A POINT ON THE SOUTH UNE OF THE EAST
HALF OF THE NORTHWEST QUARTER OF SAID SECTION 1;
THENCE NORTH 89'59'21" EAST ALONG SAID SOUTH LINE A DISTANCE OF 50.00 FEET;
THENCE NORTH 00'00'39" WEST A DISTANCE OF 20.00 FEET;
THENCE NORTH 89'59'21" EAST A DISTANCE OF 581.89 FEET;
THENCE NORTH 44'41'58" EAST A DISTANCE OF 103.26 FEET TO A POINT ON THE EAST UNE OF THE EAST
HALF OF THE NORTHWEST QUARTER OF SAID SECTION 1;
THENCE SOUTH 0016'32" EAST ALONG SAID EAST UNE A DISTANCE OF 93.38 TO THE NORTHEAST CORNER OF
THE SOUTHWEST QUARTER OF SAID SECTION 1;
THENCE SOUTH 0017'32* EAST ALONG THE EAST UNE OF SAID SOUTHWEST QUARTER A DISTANCE OF 2604.87
FEET TO A POINT ON THE NORTHERLY RIGHT OF WAY LINE OF WELD COUNTY ROAD 12 AS DESCRIBED IN BOOK
86 AT PAGE 273 OF THE RECORDS OF THE WELD COUNTY CLERK AND RECORDER;
THENCE SOUTH 89'40'04" WEST ALONG SAID NORTHERLY RIGHT OF WAY LINE A DISTANCE OF 2603.62 FEET TO
A POINT ON SAID EASTERLY RIGHT OF WAY UNE OF WELD COUNTY ROAD NUMBER 11;
THENCE NORTH 00'38'46" WEST ALONG SAID EASTERLY RIGHT OF WAY UNE A DISTANCE OF 1635.19 FEET TO
THE POINT OF BEGINNING;
SAID PARCEL CONTAINS 128.34 ACRES, MORE OR LESS.
I, THOMAS D. :y -• LICENSED IN THE STATE OF COLORADO,
DO HEREBY VE LEGAL DESCRIPTION WAS PREPARED
BY ME OR ' DIRE ', .`"VISION AND CHECKING.
'= 2596 •
•
THOMAS •'.L.S.
FOR AND ON c -�
L �• & LANGE, INC.
7-/4-05- N71 I1
DATE
Carroll sr. Lange
Professional Engineers&Land Surveyors
\/ 165dl South Union d.,Suite 156
Lakewood. no Colorado 80226
(303)980-0200
P:\31n\EXHIBITS\METR0-MST\3111-u-aST-2.A"g, SHEET 2 OF 3. PREPARED 7/11/05 it 3111
EXHIBIT
LEGACY PARK METROPOLITAN DISTRICT NO. 2
SHEET 3 OF 3
-
NE COR., W 1/2, SW 1/4, SEC. 07, ITS
7: 01 N., R 68 W.., 6TH P.M. o
FOUND 2-1/2" ALUMINUM CAP W ^ p
PLS 28258, 2000 o N m
90'00'00" k- `kg'
W a
R=20.00' I^ N � LIul3
L=31.42' 2 3 N00'24'09"W 2�N
¢ 20.00' -4 ^r)&90'00'00" \o NO0'31'38"W 4+ 3 m
^ POINT OF COMMENCEMENT R=20.00' N-
3 2 0
NW COR., SW 1/4, SEC. 1, L=31.42' 0 27 '53 2
T. 1 N., R 68 W, 671-1 P.M. CH8=N07'30'00"E 2 o NOS'53'30"W
FOUND 3-7/4" BRASS CAP &80'00'00" �' 2 39.93' N89'59'21"E
US CADASTRAL R=20.00' I4i N37'30'O0"W 581.89'
SURVEY,, BLM, 1952 344'78'
L=31.42' S. LINE, E 1/2, N 4'41'58"E
N89'21'14"E , N. LINE, W 1/2, -1.1,26'
503.33' SW 7/4, SEC. 013 NW 1/4, SEC. 07
: • ' " 1 .9:I�1 I�l N893921£ 93.38'
—1324.90' S00'i6'32"E
S00'38'46"E
984.85' N89'21'14"E
90'00'00" � 54,90' N89'59'21"E \ � a ¢o
— R=25.00' \A 90'00'00" � , o
L=39.27' i R=25.00' + �1����►�' 620-1 041 1 1h
�� �. N00'00'39"W a o N
CH8=N44'21'14"E L=39.27' %� ► ��� N52'30'00 E ���. �� 20.00' in
N8971'14"E CHB=N44'21'14 ► ►� 80.00' v A � N89'59'21"E NJ- 2 h
89'21'14"E %►�,�1, 50.00' m
30.00' i _.♦ &90'00'00" 3 J N
POINT OF� 4 50.00' /, ,,, ,`,� �♦� R=20.00' can co ¢in
BEGINNING L=31.42' ` S00'00'39"E 'o
,6 ��) '�► ��CHB=NO7'30'00"E-.� 20.00'
N89'21'14"E 128.34
in-`
� —90'00'00"-1 ��fy f ACRES± �� N5230'00"E o v 2 i
30.00' �I �I•I 11■
o 23 50.00' (.5 w, w� N
o a s R=25.00'r fl�� p■ III I _W tn N5230'00" 2 O
Z W v i L=39.27' �� � �� 50.00' N52'30'00"E -`^ .; ti t
US Q 09 o N89'21'14"E 1/c►� �� • x 160.00' -v ro 0
w / �� N52'30'00 E - N w
1— op op 3 150.00' 1� 1 94.40'1 4 �g S001 7'32"E
Q o —&90'00'00" j� Q,, &36'5114•
eFUTURE Fti 2604.87'
acn 2 R=25.00' - ��, ��R=225.00' LEGACY PARK � 0p
L=144.72' t
o L=39.27 ''1� nfla 1'/I�3 ON * fig
n EXISTING 3 2 N89'21'14"E ;fl &90'00'00 w `°
- 90' ROWy '� R=20.00' w o
90' ROW
50.00' �� I L=31.42' j 2 N Q
_.I IIIllIIJ , 1
120' ROW y I N00'38'46"W, - 14
ri 10.00' I-
MI
1635.19'
' S. LINE, SW 1/4, SEC. 01
-
N89'40'04"E 2633 46' \
SW COR., SW 1/4, SEC. 1, ' ' " SEW J 4, SEC. 1, 1
T. 1 N., R 68 W, W., 6TH P.M.
FOUND 3-1/4" ALUMMCAP .
PLS 13155, 1993 FOUND 3-1/4" ALUMINUM SCALE: 1" = 600'
CAP PLS 24667 L 1997
NOTE: ` arroll & Lange
• Denotes Change of Direction Only. This exhibit Protassiorel Enion Blvd,Sui Surveyors
— does not represent a monumented survey. It 165 South Union Blvd.,Soils 156
Lakewood,Colorado 60228
is intended only to depict the attached legal / (303)980-0200
description.
P:\3111\Elp115175\METRO—UST\3111—M—qsr-2d.q, SHEET 3 OF 3, PREPARED 7/11/05 ,w: 3111
EXHIBIT B
Boundary Map
- EXHIBIT
LEGACY PARK METROPOLITAN DISTRICT NO. 2
SHEET 3 OF 3
NE COR., W 1/2, SW 1/4, SEC. 01, 0 0
T. 01 N., R 68 W.., 6TH P.M. '2
FOUND 2-1/2" ALUMINUM CAP LVu ^ N o ro
PLS 28258, 2000—
��,. c i N
• A=90'00'00" \N W h
R=20.00' 13 I Les v 3
L=31.42' 2 3 N00'24'09"W 2\N
20.00' --1 ":'3
4=90'00'00" \o W `°
N00'31'38"W
POINT OF COMMENCEMENT R=20.00' 3 N 270.91' o
NW COR., SW 1/4, SEC. 1, L=31.42' 0 2
T. 1 N., R 68 W, 67H P.M. CHB=N07'30'00"E 2 2 39 o 39.9933'' '30"W
583'59'21"E 58
— FOUND 3-1/4" BRASS CAP 6=90'00'00" .89'
US CADASTRAL R=20.00' I4i N3T30'00"W 1
SURVEY, BLM, 1952 344.79'
L=31.42' N44'41'58"E
N. LINE, W 1 S. LINE, E 1/2,
— N89'21'14"E i /2, 103.26'
NW 1 4, SEC. 01
503.33' SW 1/4, SE;. 01 a N89'.5921 E-1324.90' ��93 38 32"E
S00'38'46"E
984.85' I N89'21'14"E
— e=90'00'00" I �4;$0'
N89'59R=25.00' A=90'00'00" '21"E e o0
L=39.27' I R=25.00' I 1 11 ( N00'00'39"W Y U kii N
CHB=N44'21'14"E i L=39.27' N52'30'00 E 20.00' (n�
— I CHB=N44'21'14" 80.00' N89'59'21E .r 2h
N89'21'14"E I `.' A (v
30.00' j 89'21'14"E A=90'00'00" 50.00' �3 j m
POINT OF 50.00' R=20.00' ¢y
L=31.42' SOO'00'39"E ct d
— BEGINNING 128 34 CHB=N07'30'00"E,— 20.00' o N
N89'21'14"E -80'00'00" ACR.34 N5230'00"E o 2 I
30.00' Tins � � 50.00' cip W„ w
C2 (D )3 ¢ R=25.00' N52'30'00" -W ") O
Z Iggl 62 W T l L=39.27' N52'30'00"E -� .� 2
i W v 14 `° N89'21'14"E N52'30'00%E 160.00' N•h
�' m 150.00' 94.40'
a W 3 `3 S00'17'32"E
Q o 1n I 1 X90'00'00" 6=36'81'114k FUTURE rrin 2604.87'
—
�! y 2 I — R=25.00' R=225.00' L
EGACY PARK tCN p
a 1n • ; L=144.72' voaloN \,P�i MJ Q V
L=39.27'
_ EXISi1NG 3 S I A=90'00'00 L11 r
90' ROW I N89'21'14"E R=20.00' 4i oo
FUTURE 50.00' L=31.42' :2`a 2
IIIIIIIJ N
120' ROW y NO0'38'46"W_ W e
`7 10.00' I I ll‘l J
N00'38'46"W — _ „"
1635.19' �R 12=._ mwg ~� .a* —�—
' m.
S. LINE, SW 1/4, SEC. 01
N89'40'04"E 2633.46' 1
SW COR., SW 1/4, SEC. 1, S89'40'04"W� SE COR., SW 1/4, SEC. 1,
_ T 1 N., R 68 W, 6TH P.M.
T. 1 N., R 68 W., 67H P.M.
FOUND 3-1/4" ALUMINUM CAP 2603.62'
PLS 13155, 1993 FOUND 3-1/4" ALUMINUM SCALE 1" = 600'
CAP PLS 24667 1997
NOTE: / arroll (St Lange
— • Denotes Change of Direction Only. This exhibit Professional Engineers B Land Surveyors
does not represent a monumented survey. It 165 South Lakewood.
Union Blvd.,Suite 156
is intended only to depict the attached gal \/ (3 3)980-0200 Colorado6°226
description. P:\3111\DO1ISITS\METRO—DIST\3111—M—MST-2.d.9. SHEET 3 OF 3, PREPARED 7/11/05 JN: 3111
EXHIBIT C
Vicinity Map
LEGACY PARK-
METROPOLITAN DISTRICT NO. 2
OCOLORADO SLATE NW. 52
i
SHARPE:
FUTURE
LEGACY RIDGELANDS '
PARCH
PINNACLE
•
FARRIS •
O RIDGEUAND3
III
_ a
^N j
11 DISTRICT 9
WELD COUNTY RD. 12
VICI \ ITY VAD
\ . T. S.
EXHIBIT D
Property Owner's Consent
September 12,2005
City of Dacono
Post Office Box 186
Dacono, Colorado 80514
RE: Proposed Legacy Park Metropolitan District No.2 (the"District")
To Whom It May Concern:
Trinity Trust LLC, a Colorado limited liability company, 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 I,Thomas M.Huth, as Manager of
Trinity Trust LLC, a Colorado limited liability company, consent to the organization of
the District.
TRINITY TRUST LLC,
a Colorado limited liability
company
Thomas M. Huth, Manager
STATE OF COLORADO )
) ss.
COUNTY OF 1JOut&r )
Subscribed and sworn to before me on this 12th day of September 2005, by
Thomas M. Huth, as Manager of Trinity Trust LLC, a Colorado limited liability
company.
[SEAL]
Notary Public
My Commission Expires:05/11/2008
My commission expires 1707 N.Main St.
Longmont,CO 80501
Legacy Park\No.2/Service Plan
7LG1531
0834.0003
EXHIBIT A
LEGAL DESCRIPTION
_ LEGACY PARK METROPOLITAN DISTRICT NO. 2
SHEET 1 OF 3
LEGAL DESCRIPTION
A PARCEL OF LAND LOCATED IN THE NORTHWEST QUARTER AND SOUTHWEST QUARTER OF SECTION 1,
TOWNSHIP 1 NORTH, RANGE 68 WEST OF THE 6TH PRINCIPAL MERIDIAN, CITY OF DACONO, COUNTY OF WELD,
STATE OF COLORADO, SAID PARCEL BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE NORTHWEST CORNER OF THE SOUTHWEST QUARTER OF SAID SECTION 1 AND CONSIDERING
THE WEST UNE OF THE SOUTHWEST QUARTER OF SAID SECTION 1 TO BEAR NORTH 0038'46" WEST WITH ALL
BEARINGS CONTAINED HEREIN RELATIVE THERETO; THENCE ALONG SAID WEST LINE SOUTH 00'38'46" EAST, A
DISTANCE OF 984.85 FEET; THENCE NORTH 89'21'14" EAST, A DISTANCE OF 30.00 FEET TO A POINT ON THE
EASTERLY RIGHT OF WAY UNE OF WELD COUNTY ROAD NUMBER 11 AS DESCRIBED IN BOOK 86 AT PAGE 273
OF THE RECORDS OF THE WELD COUNTY CLERK AND RECORDER, SAID POINT ALSO BEING THE POINT OF
BEGINNING;
THENCE NORTH 89'21'14" EAST, A DISTANCE OF .30.00 FEET TO A POINT ON A CURVE; •
THENCE ALONG A NON-TANGENT CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00", A RADIUS OF
25.00 FEET, A CHORD BEARING OF NORTH 44'21'14" EAST, AND AN ARC LENGTH OF 39.27 FEET;
THENCE NORTH 89'21'14" EAST, A DISTANCE OF 503.33 FEET TO A POINT OF CURVATURE;
THENCE ALONG A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00", A RADIUS OF 25.,00 FEET,
AND AN ARC LENGTH OF 39.27 FEET;
THENCE NORTH 89'21'14" EAST, A DISTANCE OF 50.00 FEET TO A POINT ON A CURVE;
THENCE ALONG A NON-TANGENT CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00", A RADIUS OF
25.00 FEET, A CHORD BEARING OF NORTH 44'21'14" EAST, AND AN ARC LENGTH OF 39.27 FEET;
THENCE NORTH 8921'14" EAST, A DISTANCE OF 150.00 FEET TO A POINT OF CURVATURE;
THENCE ALONG A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00", A RADIUS OF 25.00 FEET,
AND AN ARC LENGTH OF 39.27 FEET;
THENCE NORTH 89'21'14" EAST, A DISTANCE OF 50.00 FEET;
THENCE NORTH 00'38'46" WEST, A DISTANCE OF 10.00 FEET TO A POINT OF CURVATURE;
THENCE ALONG A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00", A RADIUS OF 20,00 FEET,
AND AN ARC LENGTH OF 31.42 FEET;
THENCE NORTH 89'21'14" EAST, A DISTANCE OF 54.90 FEET TO A POINT OF CURVATURE;
THENCE ALONG A CURVE TO THE LEFT HAVING A CENTRAL ANGLE OF 36'51'14", A RADIUS
OF 225.00 FEET AND AN ARC LENGTH OF 144.72 FEET;
THENCE NORTH 52'30'00" EAST, A DISTANCE OF 94.40 FEET TO A POINT OF CURVATURE;
THENCE ALONG A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00", A RADIUS OF 20.00 FEET,
AND AN ARC LENGTH OF 31.42 FEET;
THENCE NORTH 52'30'00" EAST, A DISTANCE OF 50.00 FEET TO A POINT ON A CURVE;
THENCE ALONG A NON-TANGENT CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00", A RADIUS OF
20.00 FEET, A CHORD BEARING OF NORTH 07'30'00" EAST, AND AN ARC LENGTH OF 31.42 FEET;
THENCE NORTH 52'30'00" EAST, A DISTANCE OF 160.00 FEET TO A POINT OF CURVATURE;
THENCE ALONG A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF.90'00'00", A RADIUS OF 20.00 FEET,
AND AN ARC LENGTH OF 31.42 FEET;
THENCE NORTH 52'30'00" EAST, A DISTANCE OF 50.00 FEET TO A POINT ON A CURVE;
THENCE ALONG A NON-TANGENT CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00", A RADIUS OF
20.00 FEET, A CHORD BEARING OF NORTH 07'30'00" EAST, AND AN ARC LENGTH OF 31.42 FEET;
THENCE NORTH 52'30'00" EAST, A DISTANCE OF' 80.00 FEET;
THENCE NORTH 37'30'00" WEST A DISTANCE OF 344.79 FEET;
THENCE NORTH 05'53'30" WEST A DISTANCE OF 39.93 FEET;
THENCE NORTH 00'31'38" WEST A DISTANCE OF 270.91 FEET TO THE NORTHEAST CORNER OF THE WEST HALF
OF THE SOUTHWEST QUARTER OF SAID SECTION 1;
,`` Carroll &. Lange
\, 1 South Union Blvd
a.Snd ure 156
men
165 South BIM. 28 155
(L33)98 Colorado 00aoz-
- (3W)980.0200'
P.\3111\D 4I81TS\METRO-015T\3111-M-q5T-2,"g, SHEET 1 OF J,PREPARED 7/11/05 a 3111
LEGAL DESCRIPTION
LEGACY PARK METROPOLITAN DISTRICT NO. 2
SHEET 2 OF 3
LEGAL DESCRIPTION
THENCE NORTH 00'24'09" WEST ALONG THE EAST LINE OF THE WEST HALF OF THE NORTHWEST QUARTER OF
SAID SECTION 1 A DISTANCE OF 20.00 FEET;THENCE NORTH 89'59'21" EAST A DISTANCE OF 620.04 FEET;
THENCE SOUTH 00'00'39" EAST A DISTANCE OF 20.00 FEET TO A POINT ON THE SOUTH UNE OF THE EAST
HALF OF THE NORTHWEST QUARTER OF SAID SECTION 1;
THENCE NORTH 89'59'21" EAST ALONG SAID SOUTH LINE A DISTANCE OF 50.00 FEET;
THENCE NORTH 00'00'39" WEST A DISTANCE OF 20.00 FEET;
THENCE NORTH 89'59'21" EAST A DISTANCE OF 581.89 FEET;
THENCE NORTH 44'41'58' EAST A DISTANCE OF 103.26 FEET TO A POINT ON THE EAST LINE OF THE EAST
HALF OF THE NORTHWEST QUARTER OF SAID SECTION 1;
THENCE SOUTH 0016'32" EAST ALONG SAID EAST LINE A DISTANCE OF 93.38 TO THE NORTHEAST CORNER OF
THE SOUTHWEST QUARTER OF SAID SECTION 1;
THENCE SOUTH 0017'32" EAST ALONG THE EAST LINE OF SAID SOUTHWEST QUARTER A DISTANCE OF 2604.87
FEET TO A POINT ON THE NORTHERLY RIGHT OF WAY LINE OF WELD COUNTY ROAD 12 AS DESCRIBED IN BOOK
86 AT PAGE 273 OF THE RECORDS OF THE WELD COUNTY CLERK AND RECORDER;
THENCE SOUTH 89'40'04" WEST ALONG SAID NORTHERLY RIGHT OF WAY LINE A DISTANCE OF 2603.62 FEET TO
A POINT ON SAID EASTERLY RIGHT OF WAY LINE OF WELD COUNTY ROAD NUMBER 11;
THENCE NORTH 00'38'46" WEST ALONG SAID EASTERLY RIGHT OF WAY LINE A DISTANCE OF 1635.19 FEET TO
THE POINT OF BEGINNING;
SAID PARCEL CONTAINS 128.34 ACRES, MORE OR LESS.
I, THOMAS D. D ?'. LICENSED IN THE STATE OF COLORADO,
DO HEREBY VE LEGAL DESCRIPTION WAS PREPARED
BY ME OR -•_. DIRE a' VISION AND CHECKING..
: 7-14-o
25965 sr Ij
ll
THOMAS o. 'Y :!.-.LS.
FOR AND ON =�,a' Ptak
w.:
7 /� L �.- & LANGE, INC.
74_0s- <.• WIfGSIK1U •.
DATE
•
^ j
f'N Carroll &Lange=
ProiesslonM Engineers&Land Surveyors
165 SouthUnion Blvd8..Suite 156
Lakewood65Sut Unien Colorado d.228
Su
(903)980-0200
P.\3111\DITBITS\METRO-DIST\3111-M-d5i-2dw9.SHEET 2 OF 3.PREPARED 7/11/05 J! 3111
•
•
. EXHIBIT
LEGACY PARK METROPOLITAN DISTRICT NO. 2
SHEET 3 OF 3
NE COR., W 1/2, SW 1/4, SEC 01, o
T. 01 N., R 68 W., 6771 PM f�3
FOUND 2-1/2" ALUMINUM CAP W N.
"' oZO
28258, 2000 o \�to
a=90'00'00" NI-
w N
R=20..00' I N La"
— L=31.42' 2 3 N00'24'09"W 7a,�IN
20..00'
POINT OF COMMENCEMENT R=20..001 270.91'01'38"W w 2 0
NW COR., SW 1/4, S£C. 1, L=31..42' �'0 2
T. 1 N, R 68 W., 6TH P.M. CHB=N07'30'00"E 2 o NOS'53'30"W
— FOUND 3-1/4" BRASS CAP X90'00'00" a 39.93' N8 89'21'E
US CADAS7RAL R=20,00' I4i 34479'00"W 58J.89'
SURVEY; BLM, 7952 344.79'
L=31.42' S. LINE, E 1/2, N 4'41'58"E
— N8921'14"E N. LINE, W 1/2, 5
NW 1 4, 10 .26'
503.33' SW 1/4, SEC. 01 / SEC. Of
N69'59'21 E 7324.90' 93 38''32"E
Soo"38'46"E •9 93.38'
984.85' N 9'21'14 E
._ 8=90'00'00" ern §4x90' N89'59'21"E R=25..00' a-90'00'00' a o
L=39.27' R=25.00' 6207041 N00'00'39"W tic(Qo
CHB=N4421'14"E L=39,27' N52'30'
00'E 20.00' y a
N89"21'14"E CHB=N44"21'14" 80.00' v A N89'59'21"E µ'° 2h
30.00' 8921'14"E a=40'00'00" 50.00' \3 N
50.00' R=20.00' 3 e
BEG I3N00'00'39"EOF L=31..42' S00'00'39"E `^'°
—
128.34 CHB=N07"30'00"E-0 20.00' cc,o:
N89"21'14"E -80'00'00" qCREgf N5230'00
E o2 i
30.00'
R=25.00' N5230'00" POy00' _W h W^ `s'
�. ZGI' W v L=39.27' 50.00' N52"30'00"E -1 • 2� 2
I} m\`° N69'21'14"E N52'30'O0XE 160.00' _\N p
Q w 150.00' 94.40' 3 S00'17'2"E
O co a=90'00'00" 6=38'81%114k FUTURE �y 2604.87'
a 2 in
R=25.00' R=225.00' d(@QA(�p1 PARK( �N'�3
¢ "o•
L=39.27' L=144.72' SUED9vISCION -M MJ
a EXISTING 3 N8921'14"E coIa=90'0000" w G
90' ROW R=20.00' 4i b a F
"' FUTURE 50.00' L=31.42' 2 N Q
II IIIIIJ
120' RowFm
10.00.0 f I8'45^w, m { Clii
N00'38'46`W _ _ Li
1835..19' Rm•12_=. — ;x a4 ra '.ors.—c: r ®.'—.. —i—
S. LINE SW 1/4, SEC. 01
- I N89'40'04"E 2633.46 t
SW COR., SW 1/4, SEC. 1, ),
T. 7 N., R 68 W, 6771 P.M. S89'40'04"W SE COR., SW 1/4, SEC. J, 1
FOUND 3-1/4" ALUMINUM CAP 2603..62' T 1 N., R 68 W., 6771 P.M.
PLS 13155, 1993 FOUND 3-1/4" ALUMINUM SCALE: 1" = 600'
CAP PLS 24667 1997
" arroll & Lange
• Denotes Change of Direction Only. This exhibit ;/ Professional Engineers 8 Land Surveyors
does not represent a monumented survey. It 165 wSouthnod Union Blvd..58;1.156
is intended only to depict the attached legal (303)3039800200 eozzs
sa0-0zoo a—' description. PA 3111 SHEET 3 OF 3,PREPARED 7/11/05 JO 3111
EXHIBIT E
Engineer's Estimate of Costs and Certification
Opinion of Probable Costs
Legacy Park Metro District No. 2
Improvements
7/12/2005(Rev. 9-12-05)
Item Description Total Cost'
Grading
1 Total Grading $398,415
Water
1 Total Water. $403,800
Storm Sewer
1 Total Storm Sewer $2,133,688
Roadway Construction
1 Total Roadway $632,000
Recreational Amenity
1 Total Recreational Amenity $186,750
Landscape & Irrigation
1 Total Landscape& Irrigation $1,184,273
Subtotal Construction $4,938,926
Contingencies-25% $1,234,731
Subtotal $6,173,657
Engineering/Survey/Testing-20% $1,234,731
Construction Management-5% $308,683
Permits & Fees-5% $308,683
'Total Construction $8,025,7551
Carroll Lange, Inc.
JN 3111 9/20/2005
1
Opinion of Probable Costs
LEGACY PARK METRO DISTRICT NO. 2
-
FILING NO. 5 IMPROVEMENTS
7/12/2005(Rev.9-12-05)
—
Estimated
Item Estimated Unit
Number Item Description Quantity Unit Cost Subtotal
POTABLE WATER IMPROVEMENTS
1 12"PVC Water Main 1,587 L.F. $33.00 $52,371
2 8" PVC Water Main 2,342 L.F. $21.75 $50,939
—
3 6"PVC Water Main 114 L.F. $21.75 $2,480
4 12"Gate Valve&Box 4 Each $988.00 $3,952
5 12" 11 1/4 Degree Bend with Kick Block 4 Each $200.00 $800
—
6 8"Gate Valve&Box 9 Each $915.00 $8,235
7 12"X 8"Tee with Kick Block 1 Each $724.00 $724
8 12"X 8"Cross 1 Each $900.00 $900
9 8" Cross 1 Each $850.00 $850
- 10 12"X 6"MJ Tee W/Gate Valve and Kick Block 4 Each $1,200.00 $4,800
11 8"Tee with Kick Block 2 Each $310.00 $620
12 8"X 6"MJ Tee with Gate Valve and Kick Block 5 Each $1,150.00 $5,750
—
13 8"22 1/2 Degree Bend with Kick Block 1 Each $200.00 $200
14 8" 11 1/4 Degree Bend with Kick Block 5 Each $285.00 $1,425
15 8"Plug With Kick Block and Blow Off 3 Each $1,155.00 $3,465
16 Standard Fire Hydrant Assembly 9 Each $2,700.00 $24,300
— 17 Water Service Line 60 Each $795.00 $47,700
SUBTOTAL $209,510
STORM SEWER SYSTEM IMPROVEMENTS
1 5' I.D. Storm Manhole 5 Each $2,500.00 $12,500
2 15'Type R Inlet 1 Each $4,500.00 $4,500
3 10'Type R Inlet 5 Each $4,000.00 $20,000
- 4 36"RCP 440 L.F. $65.00 $28,600
5 36"FES 1 Each $520.00 $520
6 30" RCP 260 L.F. $50.00 $13,000
7 24" RCP 870 L.F. $33.00 $28,710
-
8 24"FES 1 Each $500.00 $500
9 18"RCP 130 L.F. $27.00 $3,510
10 Type'M'Soil Rip-rap 20 C.Y. $60.00 $1,200
11 Type'L'Soil Rip-Rap 10 C.Y. $65.00 $650
12 4'Wide Trickle Channel 200 L.F. $15.00 $3,000
13 10'Wide Grass Pave2Turf Reinforcement Model 80 L.F. $20.00 $1,600
14 Concrete For Headwall and Overflow Wier 10 C.Y. $400.00 $4,000
—
15 Water Quality and Orifice Plates 1 L.S. $2,000.00 $2,000
16 Type C Inlet 1 Each $2,000.00 $2,000
17 Type D Inlet 1 Each $5,000.00 $5,000
SUBTOTAL $131,290
2
STREET IMPROVEMENTS
1 Subgrade Preparation 14,717 S.Y. $1.10 $16,189
—
2 Asphalt Pavement(6"AC/12"Base) 14,717 S.Y. $13.00 $191,321
3 Mountable Curbwalk Type M5 3,512 L.F. $15.00 $52,680
4 Curb Return with Handicap Ramp-30' Radius 2 Each $1,560.00 $3,120
5 Curb Return with Handicap Ramp-20' Radius 10 Each $1,560.00 $15,600
—' 6 8'Cross Pan 3 Each $4,500.00 $13,500
7 Street Lighting 7 Each $2,500.00 $17,500
8 Signage and Striping 1 L.S. $7,000.00 $7,000
SUBTOTAL $316,910
OFFSITE STREET IMPROVEMENTS
(Weld County Road 11)
1 Subgrade Preparation 8,233 S.Y. $1.10 $9,056
2 Asphalt Pavement(8"AC/12" Base) 8,233 S.Y. $19.00 $156,427
3 8' Detached Concrete Sidewalk 13,742 S.F. $3.50 $48,097
4 Curb Return with Handicap Ramp-30' Radius 2 Each $1,560.00 $3,120
5 Street Lighting 5 Each $2,500.00 $12,500
-
6 Signage and Striping 1 _ L.S. $3,000.00 $3,000
SUBTOTAL $232,200
.-. OFFSITE STORM IMPROVEMENTS(Weld County Road 11)
1 54"RCP 130 L.F. $115.00 $14,950
2 54"FES 2 Each $1,700.00 $3,400
3 Type'M' Rip-rap 95 C.Y. $60.00 $5,700
SUBTOTAL $24,050
GRADING IMPROVEMENTS
1 Earthwork 11,100 C.Y. $1.50 $16,650
2 Erosion Control 28.3 Acre $2,500.00 $70,750
SUBTOTAL $87,400
Phase 5 Total $1,001,360
3
Opinion of Probable Costs
LEGACY PARK METRO DISTRICT NO. 2
FILING NO. 6 IMPROVEMENTS
7/12/2005 (Rev. 9-12-05)
Estimated
Item Estimated Unit
Number Item Description Quantity Unit Cost Subtotal
—
POTABLE WATER IMPROVEMENTS
1 8"PVC Water Main 3,543 L.F. $21.75 $77,060
2 6"PVC Water Main 128 L.F. $21.75 $2,784
3 8"Gate Valve&Box 9 Each $915.00 $8,235
4 8"Cross 2 Each $850.00 $1,700
5 8"Tee with Kick Block 1 Each $310.00 $310
—
6 8"X 6"MJ Tee with Gate Valve and Kick Block 9 Each $1,150.00 $10,350
7 8"22 1/2 Degree Bend with Kick Block 2 Each $200.00 $400
8 8" 11 1/4 Degree Bend with Kick Block 6 Each $285.00 $1,710
9 8" Plug With Kick Block and Blow Off 3 Each $1,155.00 $3,465
- 10 Standard Fire Hydrant Assembly 9 Each $2,700.00 $24,300
11 Water Service Line 84 Each $795.00 $66,780
SUBTOTAL $197,094
STORM SEWER SYSTEM IMPROVEMENTS
1 10'Type R Inlet 2 Each $4,000.00 $8,000
2 30" RCP 22 L.F. $50.00 $1,100
- 3 24"RCP 40 L.F. $33.00 $1,320
SUBTOTAL $10,420
y STREET IMPROVEMENTS
1 Subgrade Preparation 12,667 S.Y. $1.10 $13,934
2 Asphalt Pavement(6"AC/12"Base) 12,667 S.Y. $13.00 $164,671
3 Mountable Curbwalk Type M5 3,187 L.F. $15.00 $47,805
4 Curb Return with Handicap Ramp-20'Radius 10 Each $1,560.00 $15,600
5 8'Cross Pan 2 Each $4,500.00 $9,000
6 Street Lights 11 Each $2,500.00 $27,500
7 Signage and Striping 1 L.S. $6,300.00 $6,300
-
SUBTOTAL $284,810
GRADING IMPROVEMENTS
1 Earthwork 9,843 C.Y. $1.50 $14,765
2 Erosion Control 22.3 Acre $2,500.00 $55,750
SUBTOTAL $70,515
Phase 6 Total $562,838
r.
—
4
Opinion of Probable Costs
LEGACY PARK METRO DISTRICT NO. 2
FILING NO. 7 DISTRICT IMPROVEMENTS
7/12/2005 (Rev.9-12-05)
Estimated
Item Estimated Unit
Number Item Description Quantity Unit Cost Subtotal
POTABLE WATER IMPROVEMENTS
1 8"PVC Water Main 4,772 L.F. $21.75 $103,791
2 6" PVC Water Main 145 L.F. $21.75 $3,154
3 8"Gate Valve& Box 15 Each $915.00 $13,725
4 8"Tee with Kick Block 8 Each $310.00 $2,480
5 8"X 6"MJ Tee with Gate Valve and Kick Block 10 Each $1,150.00 $11,500
6 8"22 1/2 Degree Bend with Kick Block 9 Each $200.00 $1,800
7 8" 11 1/4 Degree Bend with Kick Block 12 Each $285.00 $3,420
8 8"Plug With Kick Block and Blow Off 5 Each $1,155.00 $5,775
9 Standard Fire Hydrant Assembly 10 Each $2,700.00 $27,000
10 Water Service Line 125 Each $795.00 $99,375
SUBTOTAL $272,020
STORM SEWER SYSTEM IMPROVEMENTS
-
1 5 I.D. Storm Manhole 14 Each $2,500.00 $35,000
2 15'Type R Inlet 2 Each $4,500.00 $9,000
3 10'Type R Inlet 4 Each $4,000.00 $16,000
- 4 42" RCP 220 L.F. $70.00 $15,400
5 42" FES 1 Each $1,225.00 $1,225
6 36"RCP 290 L.F. $65.00 $18,850
7 30"RCP 450 L.F. $50.00 $22,500
8 24" RCP 460 L.F. $33.00 $15,180
9 18" RCP 850 L.F. $27.00 $22,950
10 Type'M'Soil Rip-rap 19 C.Y. $60.00 $1,140
— 11 Type'L'Soil Rip-Rap 11 C.Y. $65.00 $715
12 4'Wide Trickle Channel 190 L.F. $15.00 $2,850
13 10'Wide Grass Pave2Turf Reinforcement Model 75 L.F. $20.00 $1,500
—
14 Concrete For Headwall and Overflow Wier 10 C.Y. $400.00 $4,000
15 Water Quality and Orifice Plates 1 L.S. $2,000.00 $2,000
16 Type C Inlet 1 Each $2,000.00 $2,000
17 Type D Inlet 1 Each $5,000.00 $5,000
SUBTOTAL $175,310
STREET IMPROVEMENTS
1 Subgrade Preparation 18,463 S.Y. $1.10 $20,309
2 Asphalt Pavement(6"AC/12"Base) 18,463 S.Y. $13.00 $240,019
3 Mountable Curbwalk Type M5 4,428 L.F. $15.00 $66,420
4 Curb Return with Handicap Ramp-20' Radius 12 Each $1,560.00 $18,720
5 8'Cross Pan 1 Each $4,500.00 $4,500
6 Street Lights 15 Each $2,500.00 $37,500
7 Signage and Striping 1 L.S. $8,800.00 $8,800
SUBTOTAL $396,268
GRADING IMPROVEMENTS
1 Earthwork 14,100 C.Y. $1.50 $21,150
2 Erosion Control 32.3 Acre $2,500.00 $80,750
SUBTOTAL $101,900
Phase 7 Total $945,498
Opinion of Probable Costs
LEGACY PARK METRO DISTRICT NO. 2
-' FILING NO. 8 IMPROVEMENTS
7/12/2005(Rev.9-12-05)
J
Estimated
Item Estimated Unit
Number Item Description Quantity Unit Cost Subtotal
—
POTABLE WATER IMPROVEMENTS
1 8"PVC Water Main 2,499 L.F. $21.75 $54,353
2 6"PVC Water Main 92 L.F. $21.75 $2,001
^ 3 8"Gate Valve&Box 6 Each $915.00 $5,490
4 8"Tee with Kick Block 2 Each $310.00 $620
5 8"Cross 1 Each $850.00 $850
6 8"X 6"MJ Tee with Gate Valve and Kick Block 5 Each $1,150.00 $5,750
7 8"22 1/2 Degree Bend with Kick Block 4 Each $200.00 $800
8 8" 11 1/4 Degree Bend with Kick Block 1 Each $285.00 $285
9 8"Plug With Kick Block and Blow Off 2 Each $1,155.00 $2,310
-- 10 Standard Fire Hydrant Assembly 5 Each $2,700.00 $13,500
11 Water Service Line 57 Each $795.00 $45,315
12 Master Meter Connection 1 Each $2,500.00 $2,500
SUBTOTAL $133,774
STORM SEWER SYSTEM IMPROVEMENTS
1 5' I.D. Storm Manhole 5 Each $2,500.00 $12,500
2 10'Type R Inlet 3 Each $4,000.00 $12,000
3 24"RCP 530 L.F. $33.00 $17,490
4 18"RCP 510 L.F. $27.00 $13,770
SUBTOTAL $55,760
STREET IMPROVEMENTS
—
1 Subgrade Preparation 10,084 S.Y. $1.10 $11,092
2 Asphalt Pavement(6"AC/12"Base) 10,084 S.Y. $13.00 $131,092
3 Mountable Curbwalk Type M5 2,373 L.F. $15.00 $35,595
4 Curb Return with Handicap Ramp-30' Radius 4 Each $1,560.00 $6,240
— 5 Curb Return with Handicap Ramp-20'Radius 4 Each $1,560.00 $6,240
6 Street Lights 8 Each $2,500.00 $20,000
7 Signage and Striping 1 L.S. $5,000.00 •$5,000
-
SUBTOTAL $215,259
•
OFFSITE STREET IMPROVEMENTS(Weld County Road 12)
1 Subgrade Preparation 8,354 S.Y. $1.10 $9,189
2 Asphalt Pavement(8"AC/12"Base) 8,354 S.Y. $19.00 $158,726
3 8' Detached Concrete Sidewalk 13,670 S.F. $3.50 $47,845
4 Traffic Signal @ CR-11 &CR-12 1 L.S. $85,000.00 $85,000
5 Street Lights 6 Each $2,500.00 $15,000
6 Signage and Striping 1 L.S. $3,500.00 $3,500
SUBTOTAL $319,260
GRADING IMPROVEMENTS
1 Earthwork 7,563 C.Y. $1.50 $11,345
2 Erosion Control 25.4 Acre $2,500.00 $63,500
SUBTOTAL $74,845
Phase 8 Total $798,899
Opinion of Probable Costs
LEGACY PARK METRO DISTRICT NO. 2
FILING NO. 9 IMPROVEMENTS
7/12/2005 (Rev.9-12-05)
Estimated
Item Estimated Unit
Number Item Description Quantity Unit Cost Subtotal
—
POTABLE WATER IMPROVEMENTS
1 8" PVC Water Main 3,075 L.F. $21.75 $66,881
2 6"PVC Water Main 106 L.F. $21.75 $2,306
—
3 8"Gate Valve& Box 8 Each $915.00 $7,320
4 8"Tee with Kick Block 2 Each $310.00 $620
5 8"Cross 1 Each $850.00 $850
6 8"X 6" MJ Tee with Gate Valve and Kick Block 6 Each $1,150.00 $6,900
7 8"22 1/2 Degree Bend with Kick Block 2 Each $200.00 $400
8 8" 11 1/4 Degree Bend with Kick Block 5 Each $285.00 $1,425
9 8" Plug With Kick Block and Blow Off 1 Each $1,155.00 $1,155
-
10 Standard Fire Hydrant Assembly 6 Each $2,700.00 $16,200
11 Water Service Line 83 Each $795.00 $65,985
- SUBTOTAL $170,042
STORM SEWER SYSTEM IMPROVEMENTS
1 10'Type R Inlet 1 Each $4,000.00 $4,000
2 18" RCP 110 L.F. $27.00 $2,970
SUBTOTAL $6,970
STREET IMPROVEMENTS
L. 1 Subgrade Preparation 11,619 S.Y. $1.10 $12,781
2 Asphalt Pavement(6"AC/12"Base) 11,619 S.Y. $13.00 $151,047
3 Mountable Curbwalk Type M5 2,945 L.F. $15.00 $44,175
4 Curb Return with Handicap Ramp-20'Radius 8 Each $1,560.00 $12,480
— 5 8'Cross Pan 1 Each $4,500.00 $4,500
6 Street Lights 10 Each $2,500.00 $25,000
7 Signage and Striping 1 L.S. $6,000.00 $6,000
-
SUBTOTAL $255,983
'OFFSITE STREET IMPROVEMENTS(Weld County Road 12)
1 Subgrade Preparation 4,375 S.Y. $1.10 $4,813
2 Asphalt Pavement(8"AC/12"Base) 4,375 S.Y. $19.00 $83,125
3 8'Detached Concrete Sidewalk 7,160 S.F. $3.50 $25,060
SUBTOTAL $112,998
GRADING IMPROVEMENTS
1 Earthwork 8,837 C.Y. $1.50 $13,256
2 Erosion Control 20.2 Acre $2,500.00 $50,500
SUBTOTAL $63,756
Phase 9 Total $609,748
9
Carroll & Lange= �`
Professional Engineers&Land Surveyors
Lakewood • Winter Park
September 12, 2005
JN: 3111
City of Dacono
512 Cherry Avenue
Dacono, CO 80514
Re: Proposed Legacy Park Metropolitan District
To whom it may concern:
The opinion of probable costs for the public improvements associated with the
proposed Legacy Park Metropolitan District was prepared under my supervision.
The estimate-is based on the following information and assumptions:
1) The quantities for District No. 1 are based on the Legacy Park Overall Plat
A construction plans, which were approved on March 9, 2005.
2) The quantities for District No. 2 are based on conceptual design by Carroll •
& Lange, Inc.
3) Unit costs are based on recent bid prices from similar projects within the
Denver Metropolitan area.
Based on these assumptions, it is my belief that the opinion of probable costs
contained within the Service Plan for Legacy Park Metropolitan District is a
reasonable estimate of costs associated with the public improvements portion of
this project.
I have reviewed both the opinion of probable costs and exhibits illustrating the
location of public improvements, within the proposed Service Plan area. These
- improvements include water, drainage, roadways, sidewalks, open space, parks,
and trail improvements.
For and on behalf of, �,,l���
CARROLL & LANGE, INC. ;° �.°g"G `Ty%
1/43,1Vp
Iit .
°:met 162w46 e � _
-O;
Russell L. Burrows, P.E. ,sib:.9 'iZ-�.
Engineering Manager ,,�JFSs*�••••* aoa
JJJ„Jxm iloo-�
cc: E/R
P.O.Box 3345
63 Cooper Creek Way, Suite 328
165 South Union Blvd., Suite 156 Winter Park,CO 80482-3345
Lakewood,CO 80228 (970)726-8100 Fax 726-9100
(303)980-0200 Fax 980-0917 Denver-Winter Park Dir. 980-9600
1 1 1 ► 1 ) l 1 1 1 I I I 1 1 1 I I ►
LEGACY PARK-
METROPOLITAN DISTRICT 2 0 300 800
STREET IMPROVEMENTS PLAN �� i -®-
SCALE: I' = 600'
ORIGINAL GRAPHIC SCALE
SHARPE RIDGELANDS III
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METROPOLITAN DISTRICT 2 0 300 600 y
WATER IMPROVEMENTS PLAN I -®
SCALE: 1• = 600'
ORIGINAL GRAPHIC SCALE
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1
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
LEGACY PARK
METROPOLITAN
DISTRICT NO. 2
FORECASTED SURPLUS CASH
BALANCES
AND
CASH RECEIPTS AND DISBURSEMENTS
SEPTEMBER 12, 2005
TABLE OF CONTENTS
PAGE
Accountant's Report 1
Forecast
Summary 2
Schedule of Estimated Assessed Valuation 4
Schedule of Estimated Facility Fees Revenue 6
Schedule of Estimated Bond Debt Service Requirements 7
Summary of Significant Forecast Assumptions and Accounting Policies 9
Clifton
Gunderson LLP
Certified Public Accountants&Consultants
,i
Accountant's Report
The Petitioners for Formation of
Legacy Park Metropolitan District No.2
Weld County, Colorado
We have compiled the accompanying forecasted surplus cash balances and cash receipts and
disbursements of Legacy Park Metropolitan District No. 2 (the "District") (in the Formation Stage of
Development) as of the date of formation and for the calendar years ending through 2039 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.
LLA
Greenwood Village, Colorado
September 12,2005
Offices in 14 states and Washington,DC H LB Intematona'
I I I I I 1 I 1 I I I 1 I I I I I 1 I
LEGACY PARK METROPOLITAN DISTRICT NO.2
(IN THE FORMATION STAGE OF DEVELOPMENT)
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 203
Debt Cash Receipts Cash Disbursements Cash Balances
General Service Net Specific Annual Administrative Annual Cumulative
Total Fund Fund TOTAL Properly Ownership Developer Interest Total Costs Total Surplus Surplus
Collection Assessed Mill Mill Mill Taxes Taxes Contributions Income Cash 550,000 Cash Cash Cash Collection
Year Value Levy Levy Levy for at Receipts Inflated by Disbursements (Deficit) Balances Year
(See Page5) (See Page I) 98.00% 10009 Administrative 2.00% 2.00%
2005 0 0.000 0.000 0.000 0 0 25.000 0 25,000 25,000 25,000 0 0 2005
2006 0 0.000 0.000 0.000 0 0 37,500 0 37,500 37,500 37,500 0 0 2006
2007 0 0.000 0000 0000 0 0 50.000 0 50,000 50,000 50,000 0 0 2007
2008 287,100 5.000 0.000 5.000 1,407 141 50,000 0 51,548 51000 51,000 548 548 2008
2009 1,421,501 5.000 35000 40.000 6,965 697 44,500 11 52,173 5-020 52,020 153 701 2009
2010 3,375,554 5.000 35.000 40000 16,540 1,654 35,000 14 53208 53060 53,060 148 849 2010
2011 5,681,644 5.000 35.000 . 40.000 27,840 2,784 23,500 17 54,141 54,122 54,122 19 868 2011
2012 8,137655 5000 35000 40.000 39,845 3,985 11,500 17 55,347 55,204 55,204 143 1,011 2012
2013 10,530,911 5.000 35000 40.000 51,601. 5,160 0 20 56,781 56,308 56,308 473 1,484 2013
2014 13,172,936 5.000 35.000 40.000 64,547 6,455 30 71,032 57,434 57,434 13598 15,082 2014
2015 14,877,422 5.000 35.000 40.000 72,899 7,290 302 80,491 58,583 58,583 21,908 36,990 2015
2016 15,174,970 5000 35000 40.000 74,357 7,436 740 82,533 59,755 59,755 22,778 59,768 2016
2017 15,174,970 5000 35.000 40.000 74,357 7,436 1,195 82,988 60,950 60,950 22,038 81,806 2017
2018 15,478,470 5000 35.000 40.000 75,845 7,585 1,636 85,066 62,169 62,169 22,897 104,704 2018
2019 15,478,470 5000 35.000 40.000 75,845 7,585 2,094 85,524 63,412 63,412 22,112 126,815 2019
2020 15,788,039 5.000 35.000 40.00D 77,361 7,736 2,536 87,633 64,680 64,680 22,953 149,768 2020
2021 15,788,039 5.000 35.000 40.000 77,361 7,736 2,995 88,092 65.974 65,974 22,118 171,886 2021
2022 16,103,800 5.000 35.000 40.000 78,909 7,891 3,438 90,238 67,293 67,293 22,945 194,831 2022
2023 16,103,800 5.000 35.000 40.000 78,909 7,891 3,897 90,697 68,639 68,639 22,058 216,888 2023
2024 16,425,876 5.000 35.000 40.000 80,487 8,049 4,338 92,874 70,012 70,012 22,862 239,750 2024
2025 16,425,876 5.000 35.000 40.000 80,487 8,049 4,795 93,331 71,412 71,412 21,919 261,669 2025
2026 16,754,393 5.000 35.000 40.000 82,097 8,210 5,233 95,540 72,841 72,841 22,699 284,369 2026 .
2027 16,754,393 5.000 35.000 40.000 82,097 8,210 5,687 95,994 74,297 74,297 21,697 306,065 2027
2028 17,089,481 5.000 35000 40.000 83,738 8,374 6,121 98,233 75,783 75,783 22,450 328,515 2028
2029 17,089,481 5.000 35.000 40000 83,738 8,374 6,570 98,682 77,299 77,299 21,383 349,898 2029
2030 17,431,271 5.000 35.000 40000 85,413 8,541 6,998 100,952 78,845 78,845 22,107 372,005 2030
2031 17,431,271 5.000 35.000 40.1100 85,413 8,541 7,440 101,394 80,422 80,422 20,972 392,977 2031
2032 17,779,896 5.000 35.000 40000 87.121 8,712 7,860 103,693 82,030 82,030 21,663 414,640 2032
2033 17,779,8% 5000 35.000 40.000 87,121 8,712 8,293 104,126 83,671 83,671 20,455 435,095 2033
2034 18,135,494 5.000 35.000 40.000 88,864 8,886 8,702 106,452 85,344 85,344 21,108 456,202 2034
2035 18,135,494 5.000 35.000 40.000 88,864 8,886 9,124 106,874 87,051 87,051 19,823 476,025 2035
2036 18,498,204 5.000 35.000 40000 90,601 9,064 9,521 109,226 88,792 88,792 20,434 496,459 2036
2037 18,498,204 5.000 35000 40.000 90,641 9,064 9,929 109,634 90,568 90,568 19,066 515,525 2037
2038 18,868,168 5.000 35.000 40.000 92,454 9,245 10,310 112,009 92,379 92,379 19,630 535,155 2038
2039 18,868,168 5.000 35.000 40.000 92,454 9,245 10,703 112,402 94,227 94,227 18,175 553,329 2039
2,276,218 227,624 277,000 140,566 2,921,408 2,368,079 2,368,079 553,329
This financial information should be read only in connection with the accompanying Summary of Significant Forecast Assumptions and Accounting Policies and Accountant's Report.
Page 2
I 1 I I I 1 1 1 1 ) I I I 1 I I 1 I ►
LEGACY PARK METROPOLITAN DISTRICT NO.2
(M THE FORMATION STAGE OF DEVELOPMENT)
FORECASTED SURPLUS CASH BALANCES AND CASH RECEIPTS AND DISBURSEMENTS
GENERAL AND DEBT SERVICE FUNDS ONLY
SUMMARY-DEBT SERVICE FUND
AS OF THE DATE OF FORMATION AND FOR THE CALENDAR YEARS ENDING THROUGH 203
Cash Receipts Cash Balances
Debt Net Specific Facility Interest Total Cumulative Net Cumulative Bond Surplus Fund Annual Cumulative
Total Service Properly Ownership Fees Income Annual Cash Debt Service Cash Transfer To Maximum Senior Total Ssnplus Surplus
Collection Assessed Fund Taxes Taxes Revenue at Cash Available on Available (Release Cumulative Balance Debt to Cash Cash Cash Collection
Year Value Mill Receipts for 2009 Bonds for Surplus From) Surplus of Assessed Disbursement! (Deficit) Balances Year
(See Page 5) Levy 98 00'/e 10.00% (See Page 6) 2 0fPA Debt Service (See Page 7) Fred Surplus Fund Balance $755,000 Ratio
2005 0 0000 0 0 0 0 0 0 0 0 0 0 2005
2006 0 0.000 0 0 49,500 0 49500 49,500 49,500 0 49,500 49,500 2006
2007 0 0.000 0 0 104,000 990 104,990 154490 154,490 D 104,990 154.490 2007
2008 287,100 0000 0 0 132,000 3,090 135,090 289,580 289,580 0 135,090 289,580 2008
2009 1421501 35.000 48,757 4,876 132,000 5,792 191,425 481,005 0 481,005 481,005 481,005 755,000 531% 481,005 (289,580) 0 2009
2010 3,375,554 35.000 115,782 11,578 132,000 9,620 268,980 268,980 0 268,980 268,980 749,985 755,000 224% 268,980 0 0 2010
2011 5,681,644 35.000 194,880 19,488 132,000 15000 361,368 361,368 0 361,368 5,015 755,000 755,000 133% 5,015 356,353 356,353 2011
2012 8,131655 35.000 278,916 27,892 132,000 22,227 461,035 817,388 283,125 534,263 0 755,000 755,000 93% 283,125 177,910 534,263 2012
2013 10,530,911 35000 361,210 36,121 0 25,785 423,116 957,379 566,250 391,129 0 755,000 755,000 7Y/. 566,250 (143,134) 391,129 2013
2014 13,172,936 35.000 451,832 45,183 0 22,923 519,938 911,067 566,250 344,817 0 755,000 755,000 57% 566,250 (46,312) 344,817 2014
2015 14,877422 35.000 510,296 51,030 0 21,996 583,322 928,139 616.250 311,889 0 755,000 755,000 50%. 616.250 (32,928) 311.889 2015
2016 15,174,970 35.000 520,501 52,050 21,338 593,869 905,778 637,500 268,278 (755,000) 0 0 49%. (117,500) 711389 1023,278 2016
2017 15,174,970 35.000 520,501 5050 20,466 593,017 1,616,295 656,875 48% 656,875 (63,858) 959,420 2017
2018 15,478,470 35.000 530,912 53,091 19,188 603191 1,562,611 669,375 47% 669,375 (66,184) 893,236 2018
2019 15,478,470 35000 530,912 53,091 17,865 601,868 1,495,104 665,375 46% 665,375 (63,507) 829,729 2019
2020 15,788,039 35000 541,530 54,153 16,595 612,278 1,442,007 676,000 44% 676,000 (63,722) 766,007 2020
2021 15,788,039 35.000 541,530 54,153 15,320 611,003 1,377,010 675,125 43% 675,125 (64,122) 701,885 2021
2022 16,103,800 35.000 552,360 55,236 14,038 621,634 1,323,519 683,500 41% 683,500 (61,866) 640019 2022
2023 16,103,800 35.000 552,360 55,2_36 12,800 620396 1,260,415 685,375 40% 685,375 (69,979) 575,040 2023
2024 16,425,876 35.000 563,408 56,341 11,501 631,250 1,206,290 691,125 38% 691,125 (59,875) 515,165 2024
2025 16,425,876 35000 563,408 56,341 10,303 630,052 1,145,217 685,375 36% 685,375 , (55.323) 459,842 2025
2026 16,754,393 35.000 579,676 57,468 9,197 641,341 1,101,183 693,875 34% 693,875 (52,534) 407,308 2026
2027 16,754,393 35.000 574,676 57468 8,146 640,290 1,047,598 690,500 33% 690,500 (50,210) 357,098 2027
2028 17,089,481 35.1%0 586,169 58,617 7,142 651,928 1,009,026 696,000 30% 696,000 (44,072) 313,026 2028
2029 17,089,481 35.000 586,169 58,617 6,261 651,047 964,073 689,625 29% 689,625 (38,578) 274,448 2029
2030 17,431,271 35.000 597,893 59,789 5,489 663,171 937,619 702,125 26% 702,125 (38,954) 235,494 2030
2031 17,431271 35000 597,893 59,789 4,710 662,392 897,886 702,000 24% 702,000 (39,608) 195,886 2031
2032 17,779,896 35.000 609,850 60,985 3,918 674,753 870,639 710,000 21% 710,000 (35,247) 160,639 2032
2033 17,779.896 35.000 609,850 60,985 3,213 674,048 834,687 710,375 19% 710,375 (36,327) 124,312 2033
2034 18,135,494 35.000 622,047 62,205 2,486 686,738 811,050 723,500 16% 723,500 (36,762) 87,550 2034
2035 18,135,494 35.000 622,047 62,205 1,151 686,003 773,553 723,250 13% 723,250 (37,247) 50,303 2035 '
2036 18,498,204 35.000 634,488 63,449 1,006 698,943 749,246 735375 10%. 735,375 (36,432) 13,871 2036
2037 18,498,204 35.000 634,488 63,449 277 698,214 712,085 708,750 7% 708,750 (10,536) 3,335 2037
2038 18,868,168 35000 647.178 64,718 67 711,963 715,298 711,000 4% 711,000 963 4,298 2038
2039 18,868,168 35.000 647,178 64,718 86 711,982 716,280 714,875 0% 714,875 (2,893) 1,405 2039
15,923,697 1,592372 813,500 340,586 18,670,155 _18,668,750 0 18,668,750 1,405
This financial information should be read only in connection with the accompanying Summary of Significant Forecast Assumptions and Accounting Policies and Accosmtanh Report.
Page 3
I 1 I I I I I I I I I I 1 I I I I I 1
LEGACY PARK METROPOLITAN DISTRICT NO.2
(IN THE FORMATION STAGE OF DEVELOPMENT)
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 on Page 5)
AS OF THE DATE OF FORMATION AND FOR THE CALENDAR YEARS ENDING THROUGH 203!
TOTAL RESIDENTIAL UNITS TOTAL
Single-Family Residential Unita Townhomea Residential Units RESIDENTIAL UNITS Est.Biennial Cumulative Estimated
Em.Market Annual Est.Market Annual Annual Annual Revaluation Market Residential RESIDENTIAL
Construction Collection Number of Value per Value Number of Value per Value Number of New Value of New per State Value Assessment ASSESSED
Year Year Dwelling Unit of New Dwelling Unit of New Residential Residential Statute at of New Ratio VALUATION
Units 3300000 Units Units $225,000 i Units Units Units 200% Units _go Page 5)
Inflation compounded annually on base price at 2.00% 2.00%
2005 2007 0 0 0 0
2006 2008 0 300,000 0 0 225,000 0 0 0 0 0 0
2007 2009 33 306,000 10,098,000 0 229,500 0 33 10,098,000 10,098,000 796% 803,801
2008 2010 56 312.120 17,478,720 20 234,090 4,681 800 76 22,160,520 201,960 32,460,480 7.96% 2,583,854
2009 2011 64 318,362 20375,194 36 238,772 8,595,785 100 28,970,979 61,431,459 7.96% 4.889,944
2010 2012 64 324,730 20,782,697 36 243,547 8,767,700 100 29,550,397 1,228,629 92,210,485 7.96% 7,339,955
2011 2013 64 331,224 21,198,351 36 248,418 8,943,055 100 30141,406 122.351,891 7.96% 9,739,211
2012 2014 64 337,849 21 622,318 36 253,387 9,121.916 100 30,744,234 2,447,038 155,543,163 796% 12,381,236
2013 2015 64 344,606 22,054,765 36 258,454 9,304.354 100 31,359,119 186,902,282 7.96% 14,877,422
2014 2016 0 351,498 0 0 263,623 0 0 0 3,738,046 190,640,328 7.96% 15,174,970
2015 2017 0 358,528 0 0 268,896 0 0 0 190 640,328 7.96% 15,174,970
2016 2018 0 0 3,812,807 194,453,135 7.96% 15,478,470
2017 2019 0 0 194,453,135 7.96% 15,478,470
2018 2020 0 0 3.889,063 198,342,198 7.96% 15,788,039
2019 2021 0 0 198,342,198 7.96% 15,788,039
2020 2022 0 0 3,966,844 202,309,042 7.96% 16,103,800
2021 2023 0 0 202,309,042 7.96%. 16.103,800
•
2022 2024 0 0 4,046,181 206,355,223 7.96%. 16,425,876
2023 2025 0 0 206,355,223 7.96% 16,425,876
2024 2026 0 0 4.127,104 210,482,327 7.96% 16,754,393
2025 2027 0 0 210,482,327 7.96% 16,754,393
2026 2028 0 0 4,209,647 214,691,974 7.96% 17,089,481
2027 2029 0 0 214,691,974 7.96% 17,089,481
2028 2030 0 0 4,293,839 218,985,813 7.96% 17,431,271
2029 2031 0 0 218,985,813 • 7.96% 17.431,271
2030 2032 0 0 4,379,716 223,365,529 7.96% 17,779,896
2031 2033 0 0 223,365,529 7.96% 17,779.896
2032 2034 0 0 4,467,311 227,832,840 7.96% 18,135,494
2033 2035 0 0 227,832,840 7.96% 18,135,494
2034 2036 0 0 4,556,657 232,389,497 7.96% 18,498,204
2035 2037 0 0 232,389,497 7.96% 18,498,204
2036 2038 0 0 4,647,790 237,037,287 7.96% 18.868,168
2037 2039 0 0 237,037,287 7.96% 18,868,168
409 I 133,610,045 200 I I 49,414,610 609 183,024.655_ 54,012,632
This financial information should be read only in connection with the accompanying Sutnmary of Significant Forecast Assumptions and Accounting Policies and Accountanl'a Repc
Page 4
I 1 I I I I 1 I I I I I I 1 I I I 1 I
LEGACY PARK METROPOLITAN DISTRICT NO.2
(IN THE FORMATION STAGE OF DEVELOPMENT)
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 203!
UNDEVELOPED LAND
Single-Family Residential Units Towohomes Residential Units Annual Cmnulative Estimated
Planed& Less: Annual Platted& Less: Annual Market Market Land LAND RESIDENTIAL TOTAL
Construction Collection Improved Lots Lots Actual Improved Lots Lots Actual Value of Value of Assessment ASSESSED ASSESSED ASSESSED Collection
Year Year $300,000 Developed Value 8225,000 Developed Value Undeveloped Undeveloped Ratio VALUATION VALUATION VALUATION Year
10,00% 1000% Land Land (S«Lige 4)
2005 2007 0 0 0 0 0 0 0 0 29.00% 0 0 0 2007
2006 2008 990,000 0 990,000 0 0 0 990,000 990000 29.00% 287,100 0 287,100 2008
2007 2009 1680,000 (990,000) 690,000 450,000 0 450,000 1,140,000 2,130,000 29.00% 617,700 803,801 1,421,501 2009
2008 2010 1,920,000 (1,680,000) 240,000 810,000 (450,000) 360,000 600,000 2,730.000 2900%, 791,700 2.583,854 3,375,554 2010
2009 2011 1,920,000 (1,920,000) 0 810,000 (810,000) 0 0 2,730,000 29.00% 791,700 4,889,944 5,681,644 2011
2010 2012 1,920,000 (1,920,000) 0 810,000 (810,000) 0 0 2,730,000 29.00% 791,700 7,339,955 8,131,655 2012
2011 2013 1,920,000 (1,920,000) 0 810,000 (810,000) 0 0 2,730,000 2900% 791,700 9,739,211 10,530,911 2013
2012 2014 1,920,000 (1,920,000) 0 810,000 (810,000) 0 0 2,730,000 29.00% 791,700 12,381,236 13,172,936 2014
2013 2015 0 (1,920,000) (1,920,000) 0 (810,000) (810,000) (2,730,000) 0 29.00% 0 14,877,422 14,877,422 2015
2014 2016 0 0 0 0 0 0 0 0 29.00% 0 15,174,970 15,174,970 2016
2015 2017 0 0 0 0 0 0 0 0 29.00% 0 15,174,970 15,174,970 2017
2016 2018 0 0 0 29.00% 0 15,478,470 15,478,470 2018
2017 2019 0 29.00% 0 15,478,470 15.478,470 2019
2018 2020 0 29.00% 0 15,788,039 15,788,039 2020
2019 2021 0 29.00% 0 15,788,039 15,788,039 2021
2020 2022 0 29.00% 0 16,103,800 16,103,800 2022
2021 2023 0 29.00% 0 16,103,800 16,103,800 2023
2022 2024 0 29.00% 0 16,425,876 16,425,876 2024
2023 2025 0 29.00% 0 16,425,876 16,425,876 2025
2024 2026 0 29.00% 0 16,754,393 16,754,393 2026
2025 2027 0 29.00% 0 16,754,393 16,754,393 2027
2026 2028 0 29.00% 0 17,089,481 17,089,481 2028
2027 2029 0 29.00% 0 17,089,481 17,089,481 2029
2028 2030 0 29.00% 0 17,431,271 17,431,271 2030
2029 2031 0 29.00% 0 17,431,271 17,431.271 2031
2030 2032 0 29.00% 0 17,779,896 17,779,896 2032
2031 2033 0 29.00% 0 17,779.896 17,779,896 2033
2032 2034 0 29.00% 0 18,135,494 18,135,494 2034
2033 2035 0 29.00% 0 18,135,494 18,135,494 2035
2034 2036 0 29.00% 0 18,498,204 18,498,204 2036
2035 2037 0 29.00% 0 18,498,204 18,498,204 2037
2036 2038 _ 0 29 0 18,868,168 18,868,168 2038
2037 2039 0 29.00% 0 18,868,168 18,868,168 2039
12,270,000 (12,270,000) 0 4,500,000 (4,500,000) 0_ 0
This financial information should be read only in connection with the accompanying Summary of Significant Forecast Assumptions and Accounting Policies and Accountant's Report.
Page 5
1 I I I I I I I I I I I I 1 1 I I 1 I
LEGACY PARK METROPOLITAN DISTRICT NO. 2
(IN THE FORMATION STAGE OF DEVELOPMENT)
FORECASTED SURPLUS CASH BALANCES AND CASH RECEIPTS AND DISBURSEMENTS
GENERAL AND DEBT SERVICE FUNDS ONLY
SCHEDULE of ESTIMATED FACILITY FEES REVENUE
AS OF THE DATE OF FORMATION AND FOR THE CALENDAR YEARS ENDING THROUGH 2039
Single-Family Facility Fees Townhomes Facility Fees TOTAL
Estimated Facility Estimated Estimated Facility Estimated ESTIMATED
Number of Fee Collected Single-Family Number of Fee Collected Townhomes FACILITY FEES
Single-Family per Facility Fees Townhomes per Facility Fees REVENUE
Year Units SF Unit Collected Units MF Unit Collected COLLECTED Year
Constr.Permits $1,500 Annually Constr.Permits $1,000 Annually ANNUALLY
2005 0 1,500 0 0 1,000 0 0 2005
2006 33 1,500 49,500 0 1,000 0 49,500 2006
2007 56 1,500 84,000 20 1,000 20,000 104,000 2007
2008 64 1,500 96,000 36 1,000 36,000 132,000 2008
2009 64 1,500 96,000 36 1,000 36,000 132,000 2009
2010 64 1,500 96,000 36 1,000 36,000 132,000 2010
2011 64 1,500 96,000 36 1,000 36,000 132,000 2011
2012 64 1,500 96,000 36 1,000 36,000 132,000 2012
2013 0 1,500 0 0 1,000 0 0 2013
2014 0 1,500 0 0 1,000 0 0 2014
2015 0 1,500 0 0 1,000 0 0 2015
2016 0 0 0 2016
2017 0 0 0 2017
2018 0 0 0 2018
2019 0 0 0 2019
2020 0 0 0 2020
409 613,500 _200 200,000 813,500
Note: Facility Fees are anticipated to be collected the year before each housing unit is completed.
This financial information should be read only in connection with the accompanying Summary of Significant Forecast Assumptions
and Accounting Policies and Accountant's Report.
Page 6
i
1 1 I I 1 I I 1 1 I 1 1 I I I 1 1 I I
LEGACY PARK METROPOLITAN DISTRICT NO.2
(IN TOE FORMATION STAGE OF DEVELOPMENT)
FORECASTED SURPLUS CASH BALANCES AND CASH RECEIPTS AND DISBURSEMENT
GENERAL AND DEBT SERVICE FUNDS ONLY
SCHEDULE Bf ESTIMATED BOND DEBT SERVICE REQUIREMENTS
AS OF THE DATE OF FORMATION AND FOR THE CALENDAR YEARS ENDING THROUGH 2039
Series 2009 Bond Issue
Dated: December 1,2009 57,550,000 Principal payments due on Dec.1.
lamed. December 1,2009
Interest Rate: 7.500%
Reduce Debt Net 2009
Outstanding Mill 11109 Senim By Bonds
Principal Bands Capitalized Debt Service
Year Principal Coupon Interest Balance Debt Service Interest Payments Year
(Mrs Page 51
2009 0 7500% 0 7.550,000 0 0 0 2009
2010 0 7.500% 566,250 7,550,000 566,250 (566,250) 0 2010
2011 0 7.500% 566,250 7.550,000 566,250 (566,250) 0 2011
2012 0 7.500% 566,250 7,550,000 566,250 (283.125) 283,125 2012
2013 0 7500% 566,250 7,550,000 566,250 566,250 2013
2014 0 7.500% 566,250 7,550,000 566,250 566,250 2014
2015 50,000 7.500% 566250 7,500,000 616,250 616,250 2015
2016 75,000 7.500% 562,500 7,425,000 637,500 637,500 2016
2017 100,000 7.500% 556,875 7,325,000 656,875 656,875 2017
2018 120.000 7.500% 549,375 7.205,000 669,375 669,375 2018
2019 125,000 7.500% 540,375 7,080,00➢ 665,375 665,375 2019
202D 145,000 7.500% 531,000 6,935,000 676,000 676,000 2020
2021 155,000 7.500% 520,125 6,780,000 675,125 675,125 2021
2022 175,000 7.500% 508,500 6,605,000 683,500 683,500 2022
2023 190,000 7.500% 495,375 6,415,000 685,375 685,375 2023
2024 210,000 )500% 481,125 6205,000 691,125 691,125 2024
2025 220.000 7.500% 465.375 5,985,000 685,375 685,375 2025
2026 245,000 7.500% 448,875 5,740,000 693,875 693,875 2026
2027 260,000 7.500% 430,500 5,480,000 690,500 690,500 2027
2028 285,000 7.500% 411,000 5,195,000 696,000 696,000 2028
2029 300,000 7.500% 389,625 4,895,000 689,625 689,625 2029
2030 335.000 7.500% 367,125 4.560,000 702,125 702.125 2030
2031 360,000 7.500% 342,000 4,200,000 702,000 702,000 2031
2032 395,000 7.500% 315,000 3805,000 710,000 710,000 2032
2033 425,000 7.500% 285,375 3,380,000 710,375 710,375 2033
2034 470.000 7.500% 253,500 2,910,000 723,500 723,500 2034
2035 505,000 7.500% 218,250 2,405,000 723,250 723,250 2035
2036 555,000 7.500% 180,375 1,850,000 735,375 735,375 2036
2037 570,000 7.500% 138,750 1,280,000 708,750 708,750 2037
2038 615,000 7.500% 96,000 665,000 711,000 711,000 2038
2039 665,000 7.500% 49,875 0 714,875 714,875 2039
7,550,000 I I 12,534,375 I 20,064,3754 (1,415,625) 18,668,750
r
USE OF PROCEEDS.
Devdoper Reimbursement 5,893,913
Capitalized Interest 1,354,087 Interest at 3.000%
Issuance Costs 302,000
TOTAL 2009 BONDS 7,550,000
Note. The net proceeds of the bonds will be deposited into an escrow account. Such proceeds will be released on a pro rata basis as building permits are issued.
This financial information should be read only m connection with the accompanying Summery of Significant Forecast Assumptions
and Accounting Policies and Accomtanfs Report.
•
Page 7
I 1 1 1 1 I I 1 I I 1 1 1 1 1 1 1 1 1
LEGACY PARK METROPOLITAN DISTRICT NO. 2
(IN THE FORMATION STAGE OF DEVELOPMENT)
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 2039
CALCULATION of CAPITALIZED INTEREST on
SERIES 2009 BOND ISSUANCE
Beginning Capitalized Interest at Disbursements Ending
Date Balance Interest 3.000% To Debt Service Balance
(See Page 7) (See Page 7)
12/01/2009 0 1,354,087 1,354,087
6/01/2010 1,354,087 20,311 (283,125) 1,091,273
12/01/2010 1,091,273 16,369 (283,125) 824,517
6/01/2011 824,517 12,368 (283,125) 553,760
12/01/2011 553,760 8,306 (283,125) 278,941
6/01/2012 278,941 4,184 (283,125) 0
12/01/2012 0 0 0 0
1,354,087 61,538 (1,415,625)
This financial information should be read only in connection with the accompanying Summary of
Significant Forecast Assumptions and Accounting Policies and Accountant's Report.
Page 8
LEGACY PARK METROPOLITAN DISTRICT NO. 2
(In the Formation Stage of Development)
SUMMARY OF SIGNIFICANT FORECAST ASSUMPTIONS
AND ACCOUNTING POLICIES
September 12,2005
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 Legacy Park Metropolitan District No. 2 (the "District") (in the Formation
Stage of Development), located in the City of Dacono (the "City") 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 the Petitioners for the
Formation of the District (the "Petitioners"), the District's expected cash position and results of
cash receipts and disbursements for the forecasted periods. Accordingly, the forecast reflects
Management's judgment, as of 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 will usually 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 2005 dollars, with the only adjustments for inflation as
follows. The market values of residential properties are forecasted to increase 2% per year,
starting in 2007 through build-out. The market values of residential properties are forecasted to
increase 2% biennially pursuant to the reassessment of property required by State statute. The
residential assessment ratio is assumed to remain constant for collection year 2009 and beyond,
based upon information as explained in Note 5. The assessment ratio for raw ground and
improved 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%
per year beginning in 2008.
NOTE 2) ORGANIZATION
The Petitioners are in the process of organizing the District as a quasi-municipal corporation and
political subdivision of the State of Colorado. 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 City. The District contains approximately 128.34 acres of real
property located entirely in Weld County, Colorado, within the City. The District is being
established primarily to provide financing for streets, street lighting, traffic and safety controls,
water, landscaping, storm sewers and flood and surface drainage, and park and recreation
improvements needed for the area.
Page 9
LEGACY PARK METROPOLITAN DISTRICT NO. 2
_ (In the Formation Stage of Development)
SUMMARY OF SIGNIFICANT FORECAST ASSUMPTIONS
AND ACCOUNTING POLICIES
September 12,2005
NOTE 2) ORGANIZATION(continued)
The operation and maintenance of these services and facilities, except as expressly provided by
the Service Plan, is anticipated to be provided by the City or other entities, and not by the
District. However, tract landscaping improvements will be retained by the District for operation
and maintenance, unless otherwise directed by the City. If retained by the District, the District
may contract with a non-profit homeowners' association for operation and maintenance of these
improvements and facilities.
As set forth in this forecast, the District is forecasted to issue $7,550,000 of debt. 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 2005, and to certify tax levies for tax
collections in 2008. 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 are landowners, principals or employees of the major property owner of the land
included within the boundaries of the District. The major landowner, as well as, the developer of
the District is Trinity Trust, LLC, a Colorado limited liability company(the"Developer").
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% for each year beyond 2006. Platted and
improved lot values were estimated to be approximately 10% of residential market value (see
Schedule of Estimated Assessed Valuation).
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.
Page 10
LEGACY PARK METROPOLITAN DISTRICT NO. 2
(In the Formation Stage of Development)
SUMMARY OF SIGNIFICANT FORECAST ASSUMPTIONS
AND ACCOUNTING POLICIES
September 12,2005
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 1/10 of one cent per dollar of assessed valuation. The forecast assumes
that the District will be able to set its mill levy at 5 mills for administration purposes for
collection beginning in 2008, and 35 mills for debt service purposes, for collection beginning in
2009. The mill levies for the General Fund and the Debt Service Fund are expected to remain
constant throughout the period of the forecast.
The Gallagher Amendment to the Colorado Constitution 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.
Pursuant to House Bill 05-1289, the residential assessment ratio will remain at 7.96% in 2005 for
collection in 2006. According to information as set forth in the Colorado Legislative Council
Staff Forecasts entitled "Assessed Value and Property Tax Projections" issued on December 20,
2004, the residential assessment ratio is projected to decline to 7.62% in 2007, and 7.39% 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 2009 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 levy of 40 mills as
forecasted for collection year 2009 ("Gallagher adjustment"). Per the District's Service Plan,the
Mill Levy cap for the combined purposes of debt service and administration is 50 mills, as
adjusted by the Gallagher adjustment.
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 of Estimated Assessed Valuation.
The assessed valuation rate for raw ground and improved lots is 29%until a home is constructed.
All residential property has been assumed to be assessed at the residential property rates as
explained above.
Page 11
LEGACY PARK METROPOLITAN DISTRICT NO.2
(In the Formation Stage of Development)
SUMMARY OF SIGNIFICANT FORECAST ASSUMPTIONS
AND ACCOUNTING POLICIES
September 12,2005
NOTE 5) PROPERTY TAXES (continued)
Increases to valuation for the development of infrastructure within the District for platted and
'— improved 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 128.34 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.
NOTE 7) FACILITY FEE
The forecast anticipates that the Board of Directors will set a facility fee, projected to be
collected at the time of a request for a building permit from the builder, based upon $1,500 for
each single-family residential unit,and $1,000 for each townhome unit.
NOTE 8) DEVELOPER ADVANCES
The forecast assumes that the Developer will advance funds needed for organizational and
construction costs to the District (see Note 12). 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 this Developer advance without creating future cash deficits, the
Developer advances will be reduced accordingly.
'— Page 12
LEGACY PARK METROPOLITAN DISTRICT NO.2
(In the Formation Stage of Development)
SUMMARY OF SIGNIFICANT FORECAST ASSUMPTIONS
AND ACCOUNTING POLICIES
September 12,2005
NOTE 8) 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 9) 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 10) INTEREST INCOME
Ca.
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%. 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 3%. The calculation of
this interest is also shown as separate Schedules of Capitalized Bond Interest.
NOTE 11) 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 $25,000, $37,500 and $50,000 in 2005, 2006 and 2007, respectively.
Beginning in 2008, these disbursements have been increased for inflation by 2% per year
throughout the term of the forecast. Should administrative costs exceed the forecasted amount,
the Developer will contribute funds to the District for the shortfall. These administrative
services are necessary as long as bonds are outstanding throughout the life of the District.
Page 13
LEGACY PARK METROPOLITAN DISTRICT NO. 2
(In the Formation Stage of Development)
SUMMARY OF SIGNIFICANT FORECAST ASSUMPTIONS
AND ACCOUNTING POLICIES
September 12,2005
NOTE 12) INFRASTRUCTURE IMPROVEMENTS
The estimated cost of the capital infrastructure improvements to be funded under the Service
'— Plan is $7,697,776, as expressed in 2005 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 (see Note 8).
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.
NOTE 13) DEBT SERVICE
_ The District anticipates issuing general obligation bonds on December 1, 2009 in the amount of
$7,550,000. The proceeds of such debt will be used for issuance costs, capitalized interest, and
to fund the cost of capital infrastructure improvements or to reimburse the Developer for the
advancement of those funds, to the extent possible (see Note 8). 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, 2010, and per the scheduled maturities are payable over a
30-year period, with the final payment on December 1,2039.
Prior to the date the Debt to Assessed Ratio is equal to 50% or less, pledged revenue (including
- certain amounts projected to be accumulated prior to the issuance of the bonds)that is not needed
to pay debt service on the Series 2009 Bonds in any year will be deposited to and held in the
Bond Surplus Fund, up to a maximum amount of$755,000. The forecast assumes that the Debt
to Assessed Ratio will be less than 50% in 2016, at which time the Bond Surplus Fund will be
terminated and any moneys therein applied to any legal purpose of the District. The forecast
assumes that moneys released fron the Bond Surplus Fund upon its termination will be applied to
the payment of debt service on the bonds.
Page 14
LEGACY PARK METROPOLITAN DISTRICT NO. 2
(In the Formation Stage of Development)
SUMMARY OF SIGNIFICANT FORECAST ASSUMPTIONS
AND ACCOUNTING POLICIES
September 12,2005
NOTE 13) DEBT SERVICE (continued)
Assumptions related to debt principal amounts, bond interest rates, issuance costs, capitalized
interest amounts and related interest earned at 3%, and other related debt service costs for the
proposed Series 2009 Bonds have been provided to Management by Kirkpatrick Pettis, 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 15
■DRM REAL ESTATE ADVISORS,LLC
Consulting.Research&Valuation
i`.
September 12,2005
Ms. Jennifer L.Gruber,Esq.
Miller,Gruber&Rosenbluth,LLC
700 17th Street
Denver, Colorado 80202 and,
City of Dacono
Town Planner/Planning Department
512 Cherry Avenue
Dacono,Colorado 80514
Re: The Proposed Legacy Park Metropolitan District No.2
_ (Proposed residential subdivision development 409 single-family lot
and 200 townhome units)
South of Highway 52,Between WCR#11 and WCR#13
Dacono,Colorado
Dear Ms. Gruber and the City of Dacono Planning Department:
I was engaged by Trinity Trust LLC to prepare a residential market analysis for the above
referenced property for development planning. In preparing the analysis, I reviewed relavent
portions of the Service Plan, dated September 7, 2005. Included in the study, I have made an
estimate of the projected absorption for the development based on historical and projected trends
for the area.
Legacy Park Metropolitan District No.2
Based on the analysis presented within this market study,I have projected a rate of absorption for
the subject's proposed 409 single-family lots and 200 townhomes to be in the area of 70 to 80
lots annually for the single-family and 100 to 110 units annually for the townhomes.
The rate of absorption is based on historical and projected trends for the area as well as the
location of the property and the projected size of the lots to be marketed at the property.
It should be noted that the projections relating to absorption may differ from that of the financing
plan due to the fact that our estimate of absorption is based on current supply and demand levels,
which are projected to increase in the future. In our research, we make projections based solely
on current data,and rely only nominally on trended market projections.
Please feel welcome to call anytime at the numbers as they appear below if you have any
questions.
Respectfully submitted,
D AL ESTATE ADVISORS,LLC
Derek R. unsell,MM
�. (970)214-8291 -Direct
Certified General Appraiser-State of Colorado CG40002154(12/31/07)
4025 Automation Way,Unit F4 • Fort Collins, Colorado 80525
Phone (970) 267-2900 • Fax (970)530-0799
Trinity Trust LLC
September 12,2005
Karen Cumbo,City Administrator
City of Dacono
516 Cherry Street
Dacono, Colorado 80514
Re: Legacy Park forecast model
Dear Karen:
Thank you for taking the time to talk with me on Friday regarding the property values in the Legacy
Park Metropolitan District Nos. 1 and 2 financial models. As we discussed,it is impossible to know
what the average value of the future homes will be. The financial models are expected to utilize
values which are possible and reasonable. I think you will find that the following information
adequately supports the values used in the models.
1)Homes in several other comparable developments in the Tri Town/Erie areas are selling for well
over$300,000.
When I spoke with the managers of the two Richmond projects in Dacono, (Sharpe Farms & Sweet
Grass), I found the following;
Sharpe Farms — Richmond offers two home series in Sharpe Farms, the "Seasons" & the more
expensive "American" series. Prices after options, for the Seasons Collection range from
approximately $200,000 up to $245,000. Prices for the American Collection range from
approximately$250,000 to $280,000 after options.
As you know, Woodcrest homes has also been active in the Sharpe Farms subdivision and, as I
understand it,the Woodcrest homes offered range in price up to approximately$290,000.
Sweet Grass — In this development, Richmond offers the "Seasons", "American", "Infinity" and
"Heritage" series. The Community Manager indicated that the home prices in the Sweet Grass
development, including options, range from $248,000 to $365,000. The minimum lot sizes in the
subdivision were reported to be 5,000 S.F. with the typical lot being somewhere between 6,000 and
6,500 S.F. As you know, these lot sizes are comparable to the Legacy Park lots.
Additionally, we found new homes in other comparable developments in the area around Dacono,
(Frederick,Firestone&Erie),selling for up to$450,000.
2)Energy prices have increased significantly during the past several months.
a) These increases drive up the cost of virtually everything. Land development and new home
construction are particularly sensitive to these increases because they require diesel fuel for
construction equipment,plastic pipe for utilities, etc.
2971 Spinnaker Place,Longmont, Co. 80503 -303 678 5224 Fax 303 702 1785
Trinity Trust LLC
b) The increased energy costs will undoubtedly make consumers more energy conscious. This will
likely translate into demand for more energy efficient homes. The cost of using more energy
efficient appliances,windows,insulation, etc.,will add to the initial cost of new homes.
3) More recently, hurricane Katrina will undoubtedly have a far reaching impact on housing costs.
Most economists are projecting that a combination of supply disruption and rebuilding efforts will
cause shortages of various construction materials. These shortages are expected to lead to additional
inflationary pressure on new home prices.
.. With regard to the townhome units projected to be built on the multi-family parcels in Legacy Park,
there are at least two other developments in the area which are presently selling multi family units at
prices over $200,000. The closest of these is the Cimarron Pointe condominium project in Firestone
which lists units in the $210,000 range. The other is the Vista Ridge condominium project in Erie,
which has units listed for sale at prices as high as $244,900. While the Legacy Park forecasts refer to
the multi family units as townhomes, and the multi family comparables cited above are
condominiums, we do not believe this distinction requires any adjustment, either up or down,to the
unit values in the forecast. However, since the Legacy Park multi family units are projected to be
_ built and sold toward the end of the build out of the respective phases, the previously mentioned
inflationary pressures identified in paragraphs 2 and 3 above are likely to have an even greater effect
over time,on the pricing of the Legacy Park townhome units.
In light of this most recent information, we believe that the property values used in the most recent
service plan models are both possible and reasonable.
In support of the information contained herein,we have reviewed the study conducted by DRM Real
Estate Advisors, LLC 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 Legacy Park
Metropolitan District No. 1 and Legacy Park Metropolitan District No. 2 formation application.
Sincerely,
Tom Huth,Manager
fc: Jennifer Gruber,Esq.
2971 Spinnaker Place, Longmont, Co. 80503 - 303 678 5224 Fax 303 702 1785
-
EXHIBIT H
Underwriter's Letters
Kirkpatrick Pettis
A Division of D.A.Davidson&Co.
Fixed Income Capital Markets
September 12,2005
Jennifer Gruber
Miller, Gruber&Rosenbluth,LLC
700 17th Street, Suite 2200
Denver CO 80202
RE: Proposed Legacy Park Metropolitan District No. 2
To Whom It May Concern:
As part of the service plan approval process, you have asked about the relationship between the
investment bankers and the proposed Legacy Park Metropolitan District No. 2. We are engaged
with the petitioners of the proposed District as described by the attached Letter of Intent. We
have the intention of serving as underwriters for the District's voter authorized debt once
sufficient credit support can be identified based on assessed value or guarantees provided by the
landowners. The structure represented in the financing plan involves non-rated bonds issued to a
third party, which we believe will be marketable based on the growth assumptions also included
in this plan. In this example, the debt would be sold to institutional investors and secured by an
escrow of bond proceeds, which would be released by lot as reimbursement to developers upon
receipt of a building permit.
You also requested an explanation of the level of credit risk associated with the types of
financing we are considering for this District. As with most start-up special districts,this District
.— expects to market bonds to third parties to raise capital for infrastructure before the entire project
is complete. The level of risk taken by a bondholder and the interest rate required for the
financing, decrease as development occurs. Our recent special district underwritings vary from
bonds sold at 8% with land in the District sold to builders and no homes constructed to refunding
bonds issued with most of the homes built at interest rates of 5% with "AAA" rated insurance.
In the case of "AAA" rated, insured bonds, the underlying Districts generally have debt/AV
ratios of 50% or less. The interest rate assumptions contained in the Service Plan are reasonable
based on current market conditions.
Because the financing in these districts is intended to pay for public infrastructure, we issue
bonds as close to the time the infrastructure is needed as possible. During the period of time
when homes are being constructed but not yet on the tax rolls, the District is projected to meet its
debt service obligation with capitalized interest. While this does increase the bondholders' risk,
the bondholders understand that risk and are compensated in the interest rate on the bonds. With
regard to the City's risk, we know of no example where a City was implicated in a special
district default and see no legal argument for such implication.
Kirkpatrick Pettis
A Division of DA Davidson&Co.Fixed Income Capital Markets
1600 Broadway,Suite 1100•Denver,Colorado 80202-4922•(303)764-6000•(800)942-7557•Fax(303)764-5770
www.dadavidson.com•www.kpsp.com
D.A.Davidson & Co.
Member SIPC
In the process of underwriting bonds for a non-rated residential metropolitan district, one key
criterion is the level of homebuilder activity. Methods of evaluating such activity include
contracts for sale of land in the District to builders, closing of land in the District to builders,
model home construction and home sales activity, building permits and certificates of
occupancy. This Service Plan includes an escrow mechanism with release of bond proceeds
based on building permits in the District. We hope this letter helps to clarify the financing model
represented in the financing plan and the current market for special district bonds. Please call if
you have any questions or require further clarification.
Sincerely,
•
Samuel R. Sharp •
Vice President
Kirkpatrick Pettis
A Division or DA.Davidson&Co.
Fixed Income Capital Markets
1
,
Kirkpatrick Pettis
6 Divisiunui DA.Davidson S Co.
FiNPd Income Capital.Markets
t/
August 9, 2005 ('f
Petitioners for Legacy Park Metropolitan District No. 2
c/o Thomas M.Huth
Manager
Trinity Trust LLC
2971 Spinnaker Place
Longmont,Colorado 80503
RE: Letter of Intent—Proposed Legacy Park Metropolitan District No.2
Dear Petitioners:
The petitioners are in the process of organizing the proposed Legacy Park Metropolitan
District No. 2 (the "District"). Once the District is organized it is anticipated that the
District will authorize and issue bonds(the `Bonds"). The Petitioners desire to engage the
services of Kirkpatrick Pettis, a Division of DA. Davidson & Co. Fixed Income Capital
Markets, its successors or assigns ("Kirkpatrick Pettis") regarding the creation of the
District and the process leading to the sale of those bonds.
Section 1. Arrangements Before Sale. There are several arrangements, which must be
made before any sale of bonds can occur. These arrangements include,but are not limited
to:
Developing a Plan of Finance. In concert with bond counsel and District
management,Kirkpatrick Pettis will prepare a plan of expected development,future
capital improvements, revenues, expenses, and debt repayment Once such a plan
is prepared and approved by the Proposed Board, various debt structures can be
analyzed within the plan to determine what will work best for the District
Structuring, Once a financing structure has been selected by the Proposed Board,
the terms of the debt (such as the sources of payment, the nature of the security,
— maturity schedule, the rights of redemption prior to maturity, etc.) must be
determined, taking into account both the interests of the District and the
expectations of investors.
Legal Counsel. Legal counsel will be selected and engaged by the District to
prepare the legal proceedings necessary to authorize the debt, to assist in the
preparation of disclosure documents necessary to sell the securities, and to render
KirkpaMck Pettis
A Division of DA.Davidson d Co.Fixed Income Capital Markets
1600 Broadway,Suite 1100 • Denver.Colorado 80202-4922 • (303)764-6000 • (800)942-7557 • Fox (303)764-6002
www.dadavidson.corn • www.kpsp.com
D.A. Davidson & Co.
member SIPC
I
certain approving opinions when the securities are delivered. All fees and expenses
of legal counsel selected hereunder shall be paid only from the proceeds derived
upon sale of the Bonds.
Ratings. The ratings which may be obtained for the bonds are likely to have a
significant effect on the rates of interest at which the bonds can be sold. If it is
determined to be in the District's best interest to obtain these ratings, Kirkpatrick
Pettis will assist the District in preparing and submitting applications to the rating
agencies along with detailed information about the District, the debt and any credit
enhancement.
Credit Enhancement. By providing investors with a guarantee of timely
payments on the debt, for even a limited time period, the purchase of credit
enhancement can produce a net reduction in financing costs. Kirkpatrick Pettis will
assist the District in investigating the availability of bond insurance,letters of credit
or other forms of credit enhancement and assist the District in determining the cost
effectiveness of these products.
Disclosure to Investors. In connection with the issuance of bonds by the District
and the sale and delivery of securities to ultimate investors, material information
about the District and the transaction must be compiled in a disclosure document
for distribution to prospective purchasers. As set forth above under Legal Counsel,
the District will engage the services of counsel to assist in the preparation of such
disclosure documents and advise the District and Underwriter about sales practices,
regulatory requirements, and security matters. If disclosure counsel is engaged as
the District's counsel, Kirkpatrick Pettis, will expect to receive the benefit of their
10(b)-5 opinion as welL
In contemplation of submitting an offer to underwrite the bonds,we will assist the
District in making these arrangements. By accepting this letter and accepting our
assistance in making these arrangements,the District will not incur any obligation
except to pay from the Bond proceeds the expenses as provided in Sections 4 and 6
of this letter. Our active participation in making these arrangements should not and
cannot be construed by the District as a promise to underwrite the bonds or as an
assurance that the bonds can be sold.
Section 2. Underwriting. At such time as the arrangements for the sale of the securities
have been successfully completed, it is our intention to submit for consideration by the
Petitioners our offer to underwrite the bonds. Our offer will be submitted in the form of a
bond purchase agreement and will set forth terms of the purchase such as the rates of
interest, the amount of any original issue premium or discount, our underwriting
compensation(2 percent of the principal amount of the bonds),and the date and conditions
for delivery of the bonds. Until the District accepts our offer, there will be no obligation
for this firm to purchase the bonds from the District. In consideration for our work
performed pursuant to Section 1, above, the District agrees that it will not consider other
Kirkpatrick Pettis
A Division of DA.Davidson&Co.
Fixed Income Capital Markets
underwriting proposals unless Kirkpatrick Pettis has first declined to underwrite the
transaction on terms and conditions acceptable to the District
Section 3. Remarketing. In the event that the District issues bonds that are remarketed
within their term,the District will have to engage a remarketing agent qualified to remarket
the bonds on each remarketing date. If an underwriting agreement is reached between
Kirkpatrick Pettis and the District, Kirkpatrick Pettis will submit an offer to serve as
'- remarketing agent to the District for compensation of.25 percent of the amount of bonds
annually remarketed. In further consideration for our work performed pursuant to Section
1,above,the District agrees that as long as Kirkpatrick Pettis is the lead underwriter,it will
provide Kirkpatrick Pettis with the option to submit a proposal to act as remarketing agent
and that it will not consider other proposals to act as remarketing agent unless and until the
Kirkpatrick Pettis proposal for remarketing has been rejected.
Section 4. Payment of Expenses. Expenses will be incurred to make the arrangements
for the sale of the bonds before their delivery and the receipt of proceeds by the District but
such expenses will not be obligations of the District unless advance authorization has been
obtained from the District All of the expenses incurred in connection with the
authorization, sale, and delivery of the bonds, including rating application, letter of credit
fees and related expenses,insurance premiums,bond,disclosure and underwriter's counsel
and our out-of-pocket expenses for any travel outside of Colorado shall be paid only from
the proceeds derived upon sale of the Bonds.
Section 5. Not an Offer to Buy. This letter of intent is not an offer to purchase or a
guarantee that we will make an offer to purchase the District's bonds in the future. Our
offer to purchase, if made, will only be made by a bond purchase agreement prepared by
our counsel and reviewed by the District and its counsel after the successful conclusion of
the pre-sale arrangements described in Section 1 and the completion of other preliminary
matters. This letter serves to summarize the steps we hope will lead to an underwriting of
bonds at a future date at which time both Kirkpatrick Pettis and the District will incur and
assume additional obligations as set forth in the bond purchase agreement.
Section 6. Private Placement of Debt If the District determines that a private placement
of debt to developer or other parties would be in its best interest,the District agrees it will
utilize the services of Kirkpatrick Pettis as an advisor for a fee of 1% of the debt
distributed.
Section 7. Term of Letter Agreement This letter agreement shall remain in full force
and effect until such time as the Petitioners notify Kirkpatrick Pettis in writing of their
intent to terminate this letter agreement or the District becomes an organized legal entity.
Any action to terminate by notice shall provide no less than 30 days notice prior to
termination. An action to terminate by notice will include a breakup fee of$20,000 owed
to Kirkpatrick Pettis for services rendered.
Kirkpatrick Pettis
A Division of DA.Davidson&Co.
Fixed Income Capital Markets
'
After the organization of the District, Trinity Trust LLC shall use its best efforts to have
the District enter into a letter of intent with Kirkpatrick Pettis. This letter of intent shall .
include a break up fee of$35,000. Once Kirkpatrick Pettis has sewed as underwriter for a
bond issue by the Legacy Park Metropolitan District#1, Legacy Park Metropolitan District
#2 or Legacy Park Commercial District, or a breakup fee is paid under the respective letter
of intent for any of the foregoing Metropolitan Districts, the breakup fee shall no longer
apply. Kirkpatrick Pettis may resign as investment banker to the District by providing
written notification with no less than 30 days notice to the District.
Section 8. Acceptance. The petitioners or other authorized officers of the developer may
�- indicate their desire to proceed with the delivery of these investment banking services upon
the basis set forth in this letter by executing one copy of this letter and returning it to us.
Respectfully submitted,
Kirkpatrick Pettis, a Division of D.A. Davidson & Co. Fixed Income Capital Markets
•
uel R rp ew B. Kane
Vice President enior Vice President
ACCEPTED this l/4 day Agri 2005.
Trinity Trust LLC
111-., I. MyC
Authorized Officer
Kirkpatrick Pettis
A Division of D.A.Davidson&Co.
Fixed Income Capital Markets
EXHIBIT I
Legal Counsel Letter
Miller, Gruber& Rosenbluth, LLC
Dianne D.Miller* ATTORNEYS AT LAW
wwwmgrlawfirm.com.
Jennifer L.Gruber* Telephone: (303)285-5320
Monica A.Rosenbluth 700 17th Street,Suite 2200
Denver,Colorado 80202 Facsimile: (303)285-5330
*Admitted in Colorado and New Mexico
September 12, 2005
City of Dacono
Post Office Box 186
Dacono, Colorado 80514
RE: Organization of Legacy Park Metropolitan District No.2
This firm has acted as counsel to the Petitioners in connection with the organization of
the Legacy Park Metropolitan District No. 2 (the "District"). Pursuant to the requirements of
V.m. of the Service Plan for the District, this letter confirms that the petition for organization of
the District filed with the City on July 29, 2005, the Service Plan for the District, as approved on
September 12, 2005, 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 tides 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,
MILLER, GRUBER&ROSENBLUTH, LLC
Legacy Park No.2/Service Plan
JLG1555
0834.0003
EXHIBIT J
Part I -Developer Indemnity Letter
—
Part II -District Indemnity Letter
September 12,2005
City of Dacono
Post Office Box 186
Dacono, Colorado 80514
RE: Legacy Park Metropolitan District No.2
Ladies and Gentlemen:
This Indemnity Letter (the "Indemnity Letter") is delivered by the undersigned Trinity
Trust LLC, a Colorado limited liability company ("Trinity Trust") in order to induce the City of
Dacono (the "City") to approve the Service Plan, including all amendments heretofore or
hereafter made thereto (the "Service Plan") for the Legacy Park Metropolitan District No. 2 (the
"District"). In consideration of the City's approval of the Service Plan, Trinity Trust, for and on
behalf of itself and its transferees, successors and assigns, represents, warrants, covenants and
agrees to and for the benefit of the City as follows:
1. Trinity Trust hereby waives and releases any present or future claims it might
have against the City or the City'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. Trinity Trust further hereby agrees to indemnify and hold harmless the City and
the City'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 Trinity Trust,the District,the City 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. Trinity Trust further agrees to investigate, handle, respond to and to provide defense
for and defend against,or at the City's option to pay the attorneys' fees and expenses for counsel
of the City's choice for any such liabilities, claims, demands, suits, actions or other proceedings.
It is understood and agreed that the City 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 City, its officers or its
employees.
2. Trinity Trust hereby consents to the City Disclaimer Statement contained in Exhibit L
of the Service Plan, acknowledges the City's right to modify the City Disclaimer Statement, and
waives and releases the City from any claims Trinity Trust might have based on or relating to the
use of or any statements made or to be made in such City Disclaimer Statement (including any
modifications thereto).
3. Trinity Trust hereby represents and warrants to the City that it will be an
accredited investor if and when it acquires any construction financing notes, and that Trinity
Trust and its controlled affiliates will be accredited investors if and when they acquire any
Developer Bonds (all as defined and as further provided in the Service Plan).
4. Trinity Trust believes and represents that the assumptions, projections and
forecasts contained in the District's financial plan (Article V and Exhibit G of the Service Plan)
are reasonable.
5. It is understood and agreed, and Trinity Trust hereby expressly acknowledges,
that the City, in acting to approve the Service Plan, has relied upon the provisions of this
Indemnity Letter.
6. This Indemnity Letter has been duly authorized and executed on behalf of Trinity
Trust.
Very truly yours,
TRINITY TRUST LLC,
a Colorado limited liability company
Thomas M. Huth, Manager
, 2005
(Date of Organizational Meeting)
City of Dacono
Post Office Box 186
Dacono, Colorado 80514
RE: Legacy Park Metropolitan District No.2
Ladies and Gentlemen:
This Indemnity Letter (the "Indemnity Letter") is delivered by the Legacy Park
Metropolitan District No. 2 (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 City'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 City as follows:
1. The District hereby waives and releases any present or future claims it might have
against the City or the City'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 City and the City'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 City, Trinity Trust LLC,
a Colorado limited liability company ("Trinity Trust"), 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 City's option to pay the attorneys' fees and expenses for counsel
of the City's choice for, any such liabilities, claims, demands, suits, actions or other proceedings.
It is understood and agreed that neither the District nor the City 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 City, the
District, its officers, or its employees.
2. The District hereby consents to the City Disclaimer Statement contained in
Exhibit L to the Service Plan; agrees that the District will include such City Disclaimer
Statement or any modified or substitute City Disclaimer Statement hereafter furnished by the
City 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 City 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 City 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 City
Disclaimer Statement(including any modifications thereto).
3. It is understood and agreed, and the District hereby expressly acknowledges, that
the City, 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,
LEGACY PARK METROPOLITAN DISTRICT
NO. 2
President
EXHIBIT K
Form of District Disclosure Statement
•
LEGACY PARK METROPOLITAN DISTRICT No.2
WELD COUNTY,COLORADO
DISCLOSURE STATEMENT
Pursuant to Article XII of the Service Plan
of Legacy Park Metropolitan District No.2
DISTRICT ORGANIZATION:
The Legacy Park Metropolitan District No. 2 (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 , 2005, pursuant to an
Order and Decree Organizing District and Issuance of Certificates of Election for the Legacy Park
Metropolitan District No. 2, 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 City of Dacono,
Colorado, in Weld County. The legal description of the property forming the boundaries of the
District is described in Exhibit A.
DISTRICT PURPOSE:
The District was organized as a"financing only"district for the purpose of financing streets,
street lighting, traffic and safety controls, water, landscaping, storm sewers and flood and surface
drainage and park and recreation improvements, all in accordance with its Service Plan approved by
the City Council of Dacono. When completed, improvements shall be dedicated to the City of
Dacono 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 Legacy Park
development. The District's Service Plan is on file and available for review at the office of the
District's general counsel, Miller, Gruber&Rosenbluth, LLC, 700 17th Street, Suite 2200, Denver,
Colorado 80202, and at the office of the City Clerk, City of Dacono, 512 Cherry Street, Dacono,
Colorado 80514.
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 (40.000) mills (or less) for 2008 through
2039 for debt service and administration purposes. Except for certain adjustments permitted by
the Service Plan to compensate for legally required changes to residential valuation ratios, the
District shall not impose a mill levy in excess of fifty (50.000) mills. District taxes are collected
as part of the property tax bill from Weld County.
LEGACY PARK METROPOLITAN
DISTRICT NO.2
_ President
STATE OF COLORADO )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
200_, by as President of the Legacy Park Metropolitan
District No. 2.
WITNESS my hand and official seal.
My commission expires:
Notary Public
EXHIBIT A
(Legal Description of District)
-� Legacy Park\Service Plan
JLG12I0
0811.0003
LEGAL DESCRIPTION
LEGACY PARK METROPOLITAN DISTRICT NO. 2
_ SHEET 1 OF 3
LEGAL DESCRIPTION
A PARCEL OF LAND LOCATED IN THE NORTHWEST QUARTER AND SOUTHWEST QUARTER OF SECTION 1,
TOWNSHIP 1 NORTH, RANGE 68 WEST OF THE 6TH PRINCIPAL MERIDIAN, CITY OF DACONO, COUNTY OF WELD,
STATE OF COLORA00, SAID PARCEL BONG MORE PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE NORTHWEST CORNER OF THE SOUTHWEST QUARTER OF SAID SECTION 1 AND CONSIDERING
THE WEST LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 1 TO BEAR NORTH 0038'46" WEST WITH ALL
BEARINGS CONTAINED HEREIN RELATIVE THERETO; THENCE ALONG SAID WEST LINE 50UTH 00'38'46" EASE A
DISTANCE OF 984.85 FEET; THENCE NORTH 89'21'14" EASE A DISTANCE OF 30.00 FEET TO A POINT ON THE
EASTERLY RIGHT OF WAY LINE OF WELD COUNTY ROAD NUMBER 11 AS DESCRIBED IN BOOK 86 AT PAGE 273
OF THE RECORDS OF THE WELD COUNTY CLERK AND RECORDER, SAID POINT ALSO BEING THE POINT OF
BEGINNING;
THENCE NORTH 89'21'14" EAST, A DISTANCE OF 30.00 FEET TO A POINT ON A CURVE;
THENCE ALONG A NON-TANGENT CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00", A RADIUS OF
25.00 FEET, A CHORD BEARING OF NORTH 4421'14" EAST, AND AN ARC LENGTH OF 39.27 FEET;
THENCE NORTH 89'21'14" EAST, A DISTANCE OF 503.33 FEET TO A POINT OF CURVATURE;
THENCE ALONG A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00", A RADIUS OF 25.00 FEET,
AND AN ARC LENGTH OF 39.27 FEET;
THENCE NORTH 89'21'14" EAST, A DISTANCE OF 50.00 FEET TO A POINT ON A CURVE;
THENCE ALONG A NON-TANGENT CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00", A RADIUS OF
25.00 FEET, A CHORD BEARING OF NORTH 44'21'14" EASE AND AN ARC LENGTH OF 39 27 FEET;
THENCE NORTH 8921'14" EAST, A DISTANCE OF 150.00 FEET TO A POINT OF CURVATURE;
THENCE ALONG A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00", A RADIUS OF 25,00 FEET,
AND AN ARC LENGTH OF 39.27 FEET;
THENCE NORTH 8921'14" EAST, A DISTANCE OF 50.00 FEET;
THENCE NORTH 00'38'46" WEST, A DISTANCE OF 10.00 FEET TO A POINT OF CURVATURE;
THENCE ALONG A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00", A RADIUS OF 20,00 FEET,
AND AN ARC LENGTH OF 31.42 FEET;
THENCE NORTH 8921'14" EAST, A DISTANCE OF 54.90 FEET TO A POINT OF CURVATURE;
THENCE ALONG A CURVE TO THE LEFT HAVING A CENTRAL ANGLE OF 36'51'14", A RADIUS
OF 225.00 FEET AND AN ARC LENGTH OF 144.72 FEET;
THENCE NORTH 52'30'00" EAST, A DISTANCE OF 94.40 FEET TO A POINT OF CURVATURE;
THENCE ALONG A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00", A RADIUS OF 20.00 FEET,
AND AN ARC LENGTH OF 31.42 FEET;
THENCE NORTH 52'30'00" EAST, A DISTANCE OF 50.00 FEET TO A POINT ON A CURVE;
THENCE ALONG A NON-TANGENT CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00', A RADIUS OF
20.00 FEET, A CHORD BEARING OF NORTH 07'30'00" EASE AND AN ARC LENGTH OF 31.42 FEET;
THENCE NORTH 52'30'00" EASE A DISTANCE OF 160.00 FEET TO A POINT OF CURVATURE;
THENCE ALONG A CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00", A RADIUS OF 20..00 FEET,
AND AN ARC LENGTH OF 31.42 FEET;
THENCE NORTH 52"30'00" EAST, A DISTANCE OF 50.00 FEET TO A POINT ON A CURVE;
THENCE ALONG A NON-TANGENT CURVE TO THE RIGHT HAVING A CENTRAL ANGLE OF 90'00'00", A RADIUS OF
20.00 FEET, A CHORD BEARING OF NORTH 07'30'00" EAST, AND AN ARC LENGTH OF 31.42 FEET;
THENCE NORTH 52'30'00" EAST, A DISTANCE OF 80.00 FEET;
THENCE NORTH 37'30'00" WEST A DISTANCE OF 344.79 FEET;
THENCE NORTH 05'53'30" WEST A DISTANCE OF 39.93 FEET;
THENCE NORTH 00'31'38" WEST A DISTANCE OF 270.91 FEET TO THE NORTHEAST CORNER OF THE WEST HALF
OF THE SOUTHWEST QUARTER OF SAID SECTION 1;
ors Carroll & Lange
holavloml E,pineen S.Una Surveyor,
SouthBlvd
165 Union . 156
LakewoodColorado 0 80 Suite
(303)980-0200
P:\311\oeU91TSVAE1RO-nlST\3111-u-DST-za.y. SNEEI 1 CF 3,PREPARED 7/11/➢s al: m(
LEGAL DESCRIPTION
LEGACY PARK METROPOLITAN DISTRICT NO. 2
SHEET 2 OF 3
LEGAL DESCRIPTION
THENCE NORTH 00'24'09" WEST ALONG THE EAST LINE OF THE WEST HALF OF THE NORTHWEST QUARTER OF
SAID SECTION 1 A DISTANCE OF 20.00 FEET;
THENCE NORTH 89'59'21' EAST A DISTANCE OF 620.04 FEET;
THENCE SOUTH 00'00'39" EAST A DISTANCE OF 20.00 FEET TO A POINT ON THE SOUTH LINE OF THE EAST
HALF OF THE NORTHWEST QUARTER OF SAID SECTION 1;
THENCE NORTH 89'59'2V' EAST ALONG SAID SOUTH UNE A DISTANCE OF 50.00 FEET;
THENCE NORTH 00'00'39' WEST A DISTANCE OF 20.00 FEET;
_. THENCE NORTH 89'59'21' EAST A DISTANCE OF 581..89 FEET;
THENCE NORTH 44'41'58" EAST A DISTANCE OF 103.26 FEET TO A POINT ON THE EAST LINE OF THE EAST
HALF OF THE NORTHWEST QUARTER OF SAID SECTION 1;
THENCE SOUTH 0016'32" EAST ALONG SAID EAST UNE A DISTANCE OF 93.38 TO THE NORTHEAST CORNER OF
THE SOUTHWEST QUARTER OF SAID SECTION 1;
THENCE SOUTH 0097'3? EAST ALONG THE EAST UNE OF SAID SOUTHWEST QUARTER A DISTANCE OF 2604.87
FEET TO A POINT ON THE NORTHERLY RIGHT OF WAY UNE OF WELD COUNTY ROAD 12 AS DESCRIBED IN BOOK
86 AT PAGE 273 OF THE RECORDS OF THE WELD COUNTY CLERK AND RECORDER;
THENCE SOUTH 89'40'04" WEST ALONG SAID NORTHERLY RIGHT OF WAY UNE A DISTANCE OF 2603.62 FEET TO
A POINT ON SAID EASTERLY RIGHT OF WAY LINE OF WELD COUNTY ROAD NUMBER 11;
THENCE NORTH 00'38'46" WEST ALONG SAID EASTERLY RIGHT OF WAY LINE A DISTANCE OF 1635.19 FEET TO
THE POINT OF BEGINNING;
SAID PARCEL CONTAINS 128.34 ACRES, MORE OR LESS.
— I, THOMAS 0; LICENSED IN THE STATE OF COLORADO,
DO HEREBY :-�- �' � 1. 'aVE LEGAL DESCRIPTION WAS PREPARED
BY ME OR ;i ' DIRE . x';','VISION AND CHECKING,
: 7-14--0
- 259655 •* fr
THOMAS . .-.
FOR AND ON ='w,,' ..
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DATE
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165 u Enginee
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165 South olo BIM, 28 15fi
Lakewood) Colorado0080228
(303)986-0200
P:\3111\EAR81T5\MONO DIST\3111-11—DEST-2_dwg.SST 2 OF 3,PREPARED 7/11/05 it 3111
•
EXHIBIT
LEGACY PARK METROPOLITAN DISTRICT NO. 2
SHEET 3 OF 3
NE COR., W 1/2, SW 1/4, SEC 01, 0 O
T 01 N., R 68 W., 6TH P.M. h
FOUND 2-1/2" ALUMINUM CAP W ry o it
PLS 28258, 2000 •-7-%u N
A=-90'00'00" IAN w tu
R=20.00' L 3
L=31.42' 2 3 200'24'09"W 2�N
= 20..00' J ^"'3
A=90'00'00" o' 3 m
POINT OF COMMENCEAfENT R=20..00' �p 270.91'NO01'38'W 4 2—
or
NW COR., SW 1/4, SEC. 1, L=31.42' L 0 N05'53 2
T 1 N, R 68 W, 6TH P.M. CHB=N07'30'00"E 2 o 39 93' '30"W
FOUND 3-1/4" BRASS CAP 6=90•00100"
2 39.93' -581.89'21"E
US CADASTRAL R=20..00' I Li N3T30'00'W 58.89'
SURVEY; BLM, 1952 344.79'
L=31.42' S LINE, E 1/2 Nt4.41'58"E
N89.21'14"E i N. LINE, W 1/2, 103.26'
_ 503.33' ' ' SW 1/4, SEC. Ola NW 1/4, SEC. 01
i 1 -.9%LV• Iii N8959'21 E 93.38'
-1324.90' 93 2"E
S00'38'46"E ---
984.85' ` N89'21'14"E �� '•'
�so•oo'oo' I r('T , 54(90'
— R=25.00' _ 8=90'00'00' � �� '',�� N89'59'21"E ��``� ,� g o.o
L=39.27' 1 ' L 39.27' �'/►•��'��•-
6\ 230'00 E•���1 � 20,00 39"W h `r
CHB=N44'22500' ;
N89"21'14"E { ;�CHB=N44"21'14" � ,.'80.00' v ������ �i� N89'59'21"E * 2 N
i-
30,00' i 89'21'14"E &90'00'00" 50.00' �3 j rvJ N
POINT OF N! ;, 50..00' , ,�, ��� R=20.00' , , 500'00'39"E k 03 Q
BEGINNIN ,+��♦ ♦� L=31.42'
CHB=N07'30'00"E 20.00' rgoz CL
— N89"21'14"E 128.34 �► o O
.� 90'00'00" i.iy i ACRESt �� N52'30'00"E v 2
30.00' , S a . R=25.00' IIli ,�' 50 00' _W o w^ N
ci N52'30'OO" "? 2 O
2 w L=39 27' ��V' 1�� N52"30'00"E -� 2
h ►t/� It 50.00'
N.,*:`° N89'21'14"E 1��� , ` >; 160.00' -v p
-
gi m 150.00' �� �► N52'30'00 E -\_ a v,
C L._ Y 94.40' 4 3 S00'1T32"E
o in I • —b=90'00'00"`��f 1r-_dr36'5114 FUTURE _y 2604.87'
a h2 • I R=25,00' -' t� R=225.00' LEGACY PARK N Q
—
Q "o , L=39.27' +',,I I L-144.72' SUO3®IVI$V®RI ^ 1'3 alla
' a EXISTING 3 N89I21114"E X90'0000 Li o
90' ROW 4 50.00' ' , R=20.00' 2 0
_�.i L=31.42' :32 N Q
FUTURE 1
120' ROW I ■1 Noo3846'I J
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01
1635..19' • ,••.,..._ _W:R 12.----a- � tit'LEE —®—
( S. LINE SW 1/4, SEC. , \N89'40'04"£ 263346 !
- SW COR., SW 1/4, SEC 1,1 N., R 68 W., 6TH A.M.T 1 N.,R 68 W, 6TH P.M.
FOUND 3-1/4" ALUMINUM CAP P.M.2603.62'
PLS 13155, 1993 FOUND 3-1/4" ALUMINUM SCALE: 1" = 600'
CAP PLS 24667 1997
— " , arroll & Lange
• Denotes Change of Direction Only. This exhibit 165 =i Engineers er aland surveyors
does not represent a monumented survey. It South Union Bo so2zee 156
Is Intended only to depict the attached legal \/ (Lakewood
03j 9980-0200 Colorado abzze
description. PA3111WABDISVETRO-0153\1111—M—AST-2.d"B.SHEET 3 W 3.PREPARED 7/11/05 it 3111
EXHIBIT L
Form of City Disclaimer Statement
CITY OF DACONO, COLORADO-DISCLAIMER STATEMENT
As a requirement imposed in its formation process, the Legacy Park Metropolitan District
No. 2 (the "District") is obligated to the City of Dacono (the "City") 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
. [Insert date of offering materials or date disclaimer statement is
otherwise delivered, unless City directs a different date].
The City 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 City in any offering materials or any other disclosure documentation relating to any bonds or
other financial obligations of the District.
The City and the District are separate legal entities. The City 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 City approved a Service
Plan containing financial and other information furnished by the District's organizers. The
City's approval of the Service Plan was based upon such information furnished by the District's
organizers, without independent investigation by the City. The District's Service Plan was
prepared in 2005 and not in connection with the offering of any bonds or other financial
obligations. The City'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 City any duties to, nor confer any rights against the City upon, any
purchasers, investors, lenders, bondholders or other third parties. By purchasing or otherwise
accepting any bond or other financial obligation of the District,the owner or holder thereof waives
and releases any then existing or future claim against the City or the City's elected or appointed
officers, employees, agents or contractors in any manner related to or connected with the District or
its Service Plan or any action or omission with respect thereto.
EXHIBIT M
Form of Intergovernmental Agreement between District and City
INTERGOVERNMENTAL AGREEMENT
BETWEEN
_ THE CITY OF DACONO, COLORADO
AND
LEGACY PARK METROPOLITAN DISTRICT NO. 2
THIS AGREEMENT (the "Agreement") is made and entered into as of this _ day of
200_, by and between the CITY OF DACONO, a home-rule municipal corporation
of the State of Colorado (the "City"), and the LEGACY PARK METROPOLITAN DISTRICT
NO. 2, a quasi-municipal corporation and political subdivision of the State of Colorado (the
"District").
RECITALS
WHEREAS, the District was organized to provide those public improvements and to
exercise powers as are more specifically set forth in the District's Service Plan dated
September 22, 2005, and approved by the City on September 12, 2005, by Resolution No. 05-
71 ("Service Plan"); and
WHEREAS, the Service Plan makes reference to and requires the execution of an
intergovernmental agreement between the City and the District; and
WHEREAS, the City 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 City, including without limitation, ordinances, rules and regulations relating to zoning,
subdividing, building and land use, and to all related City 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,
which area is designated as the proposed Legacy Park development, and that the District's
purposes, powers, facilities and activities are to be limited and governed by the Service Plan.
The District shall fully comply with all provisions, requirements,restrictions and limitations of
the Service Plan. The District is not intended to and shall not provide facilities or service
outside its boundaries (except to the extent specifically permitted in 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 property within the District will
receive water service from the City through the City's arrangements with the Central Weld
County Water District. 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 City pursuant to the procedures applicable to a
material modification of the Service Plan shall be void and of no effect.
4. CITY APPROVAL REQUIREMENTS; REVIEW OF DISTRICT
SUBMITTALS. The District agrees that any City 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 City 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 City for all reasonable
administrative and consultant costs incurred by the City for any City review of reports, plans,
submittals or other materials or requests provided to the City by the District pursuant to the
Service Plan, this Agreement, state law or the Dacono Municipal Code. The City may require
a deposit of such estimated costs.
5. OWNERSHIP OF IMPROVEMENTS: LIMITED FUNCTIONS. The parties
agree that the District shall serve as a "financing only" district and shall not be permitted to
undertake ownership, operation, or maintenance of public facilities and services, except as
specifically set forth in the Service Plan. All functions, activities, improvements, services, and
programs of the District are limited to those expressly authorized in the Service Plan,
notwithstanding any different, additional, or expanded powers or authority that may be granted
to the District by any present or future statutory or regulatory provisions.
6. CONSOLIDATION. The District shall not file a request with the district court
to consolidate with another district without the prior written approval of the City.
7. 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 City, all as provided in the Service Plan.
8. 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 Dacono City 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
Dacono City Administrator, by mail, facsimile or hand delivery, to be received at least one (1)
day prior to such meeting.
9. ANNUAL REPORT; OTHER INFORMATION. The District shall be
responsible for submitting to the City an annual report and other information pursuant to and as
_ set forth in Section VII of the Service Plan.
10. 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.
11. 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.
12. 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.
13. VENUE. Venue for the trial of any action arising out of any dispute hereunder
shall be in the Weld County District Court.
14. 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.
15. 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 City agree to take such actions as may be
necessary to achieve to the greatest degree possible the intent of the affected portion.
16. ASSIGNABILITY. Other than as specifically provided for in this Agreement,
neither the City nor the District shall assign their rights or delegate their duties hereunder
without the prior written consent of the other parties.
17. SUCCESSORS AND ASSIGNS. Subject to Section 16 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].
LEGACY PARK METROPOLITAN DISTRICT NO. 2
President
ATTEST:
Secretary
CITY OF DACONO
By:
Its:
ATTEST:
By:
Its:
EXHIBIT N
Resolution of City Council Approving Service Plan
CITY OF DACONO, COUNTY OF WELD, STATE OF COLORADO
IN RE THE ORGANIZATION OF LEGACY PARK METROPOLITAN DISTRICT NO. 1
AND LEGACY PARK METROPOLITAN DISTRICT NO. 2 IN THE CITY OF DACONO,
COUNTY OF WELD, STATE OF COLORADO
RESOLUTION NO. 05-71
RESOLUTION OF APPROVAL
WHEREAS, pursuant to the provisions of Title 32, Article 1, Part 2, C.R.S. as amended,
the City Council of the City of Dacono, County of Weld, State of Colorado, following due notice,
held a public hearing on the Service Plans of the proposed Legacy Park Metropolitan District No.
1 and Legacy Park Metropolitan District No. 2 (hereinafter collectively referred to as "Legacy
Park Metropolitan Districts 1 and 2" or the"Districts") on the 12th day of September 2005; and
•
WHEREAS, the City Council 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 should be approved by the City Council, subject to certain conditions set
forth below, in accordance with C.R.S. § 32-1-204.5(1)(c).
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DACONO, COLORADO:
Section I. The City Council, as the governing body of the City of Dacono, Colorado,
does hereby determine, based on representations by and on behalf of Trinity Trust, LLC, a
Colorado limited liability company (the "Developer"), that all of the requirements of Title 32,
Article 1, Part 2, C.R.S., as amended, relating to the filing of Service Plans for the proposed
Legacy Park Metropolitan Districts 1 and 2 have been fulfilled and that notice of the hearing was
given in the time and manner required by law.
Section 2. Based on representations by and on behalf of the Developer, the City Council
of the City of Dacono, Colorado, has jurisdiction over the subject matter of the proposed special
districts pursuant to Title 32, Article 1,part 2, C.R.S., as amended.
Section 3. Pursuant to C.R.S. §§ 32-1-204.5, 32-1-202(2) and 32-1-203(2), the City
Council of the City of Dacono, Colorado, does hereby fmd and determine, based on the Service
Plans and other evidence presented by and on behalf of the Developer,that:
(a) There is sufficient existing and projected need for organized service in the
area to be serviced by the proposed Districts;
1
(b) The existing service in the area to be served by the proposed Districts is
inadequate for present and projected needs;
(c) The proposed Districts are capable of providing economical and sufficient
service to the area within their proposed boundaries;
(d) The area to be included in each proposed District has, or will have, the
fmancial ability to discharge the proposed indebtedness for such District
on a reasonable basis; and
(e) The creation of the proposed Districts will be in the best interests of the
area proposed to be served.
Section 4. Pursuant to C.R.S. § 32-1-204.5(1)(c), the City Council hereby imposes the
following conditions upon its approval of the Service Plans:
�- (a) The Developer agrees that the City 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 C.R.S. §
32-1-304).
(b) The Developer agrees that, prior to the hearing date set by the District
Court of Weld County pursuant to C.R.S. § 32-1-304, all fees and
expenses which have been submitted to the Developer for payment by or
on behalf of the City or its 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 C.R.S. § 32-1-304, the Districts shall fully comply with the provisions
of C.R.S. § 32-1-107(3) with respect to the overlapping of service areas.
The Districts' 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, for each District, the
fully and properly executed and updated originals of the engineer's
statement of reasonableness of capital costs; accountant's letter and
forecasts; letters in support of market projections and absorption rates;
underwriter's letter; legal counsel letter; Developers' indemnity letter; and
property owners' consents that are required under the Service Plans and set
forth in Exhibits D, E, G, H, I and Part 1 of Exhibit J thereto (with such
revisions thereto as may be required pursuant to Exhibit B to this
Resolution), shall be provided to the City.
2
•
(e) At their organizational meetings, the Districts shall each execute the
District indemnity letter and intergovernmental agreement with the City
that are required under the Service Plans and set forth in Part 2 of Exhibit J
and Exhibit M thereto, and shall provide the fully executed originals of
such documents to the City.
If any of the above-stated conditions (a) through (d) are not met, the City 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 City may pursue all legal and equitable remedies available to it for failure of compliance
with such conditions of approval.
•
Section 5. The Service Plans of the proposed Legacy Park Metropolitan Districts 1 and 2,
as set forth in Exhibit A to this Resolution and dated September 7, 2005, are hereby approved
subject to the conditions stated in Section 4, above, in accordance with C.R.S. § 32-1-204.5(1)(c)
and subject to the revisions set forth in Exhibit B.
Section 6. A certified copy of this Resolution shall be filed in the records of the City of
Dacono and submitted to the Developer for the purpose of filing in the District Court of Weld
County for further proceedings concerning the District.
PI 71i
RESOLVED,ADOPTED AND APPROVED this boy day of 2005.
-oF DAeo��
CITY COUNCIL,
;woe
`o CITY OF DACONO, COLORADO
3
• £
y
":L', FTC to
aJ i
NUAR'i Need'O % . -sue%
y�y•tpO_ Wade Carlson
_ Mayor
Vale - lliott-Lucero
City Clerk
09/12/W05 3.20 PM]ah]F\Company\Dac000Vgeuo Diun<W.egacy ParkUpprovS.res.tloc
•
CERTIFICATE
I, Valerie Elliott-Lucero, do hereby certify that the above and foregoing is a true,
correct and complete copy of a resolution adopted by the City "ouncil of the City of Dacono,
Colorado, at a public meeting held on the /o277(day of SD( }O2, , 2005.
_ IN WITNESS WHEREOF,..p I have hereunto set my hand and the seal of the City of
Dacono,Colorado,this ) day of SetJ}.PA. 2005.
yO�EoRCOA-
(S t3 a
(VI City Jerk
* �gNUAR'l,��O
cOLORPO
4
EXHIBIT A
(insert Service Plan dated September 7,2005)
5
EXHIBIT B
Revisions to the Legacy Park Metropolitan Districts 1 and 2 Service Plans
(Dacono City Council Meeting, September 12,2005)
Legacy Park Metropolitan District 1
1. Service Plan, page 1, line 16 under "I. INTRODUCTION": insert comma after the first
"designee."
2. Service Plan, page 2, line 4: revise "extent authorized" to read "extent expressly
authorized."
3. Service Plan,page 2, line 4: after the period, insert the following sentence: "All functions,
activities, improvements, services, and programs of the District are limited to those
expressly authorized in this Service Plan, notwithstanding any different, additional, or
— expanded powers or authority that may be granted to the District by any present or future
statutory or regulatory provisions."
4. Service Plan,page 8, line 16: delete comma following"Water District."
5. Service Plan,page 12, line 19 under"g. Dedication of Improvements to the City": remove
extra space between"deemed"and"an."
6. Service Plan,page 13, line 12: insert"a"between"such"and"`Final Acceptance' letter."
7. Service Plan,page 13, line 14: delete"a"between"issue"and "`Final Acceptance'."
8. Service Plan, page 14, line 9 under "i. Acquisition of Land for Public Improvements":
remove extra space between"deemed"and"a."
9. Service Plan, page 14, line 3 under "j. Services to be Provided by other Governmental
Entities": revise "or other services within"to read"or other services or functions within."
10. Service Plan, page 15, first line under "V. FINANCIAL PLAN": insert comma after
"limitations."
11. Service Plan,page 18, line 17: insert comma after"capitalized reserves."
12. Service Plan, page 18, line 21: add "(single-family and townhomes, combined)" after "per
unit basis."
13. Service Plan,page 19, line 12: remove extra space between"than" and "three."
6
14. Service Plan, page 19, line 13: revise "existing lots within the District" to read "property
tax base of the District."
15. Service Plan, page 19, line 13: revise "The District's Financial Advisor" to read "The
District's Investment Banker."
16. Service Plan, page 19, line 14: delete comma after"special district debt."
17. Service Plan, page 19, line 17: revise"each series of bonds"to read"the bonds."
18. Service Plan, page 19, line 19: revise "each series of bonds"to read "the bonds."
19. Service Plan, page 20, line 8: insert comma after"lower interest rates."
20. Service Plan, page 21, line 8 under"d. Limited Mill Levy": replace em dash with a hyphen
in"one—hundredths"to read"one-hundredths."
21. Service Plan, page 21, line 8 under"d. Limited Mill Levy": insert comma after"(7.96%)."
22. Service Plan, page 23, line 2 under "g. Developer Bonds": revise "bonds of a series" to
read"of the bonds."
23. Service Plan,page 27, first line under"m. Letters": delete tab to adjust spacing.
24. Service Plan, page 29, line 14: revise "reporting report." to read "reporting period. The
District shall provide the City with a copy of the District's financial statements annually. In
years where an independent audit is not conducted,the District shall provide the City with a
copy of the application for exemption and the response by the State Auditor."
25. Service Plan, page 34, lines 7-17 under "XIII. INTERGOVERNMENTAL
AGREEMENTS": begin new paragraph starting with "The District anticipates" and revise
the text of this paragraph to read as follows:
The District anticipates entering into one or more intergovernmental
agreements with Legacy Park Metropolitan District No. 2 for the sharing of
costs related to off-site public improvements benefiting both districts. The
total estimated costs of shared off-site improvements are included in Exhibit
E. The cost-sharing intergovernmental agreements are expected to provide
that, to the extent one district finances and constructs shared off-site
improvements, the other district shall reimburse the financing and
constructing district for its agreed-upon share of the costs of the shared off-
- site improvements, but only if such reimbursement does not adversely affect
the reimbursing district's ability to repay its bonds. Any such cost-sharing
7
intergovernmental agreement shall be subject to review and approval by the
City Council prior to its execution by the District, and the City Council may
grant or withhold such approval in its sole and absolute discretion.
26. Service Plan, page 34, line 17 under "XIII. INTERGOVERNMENTAL AGREEMENTS":
begin new paragraph starting with"No other intergovernmental agreements are proposed at
this time."
27. Service Plan, page 34, lines 19 and 20 under "XIII. INTERGOVERNMENTAL
AGREEMENTS": delete"Legacy Park Commercial Metropolitan District and the."
28. Service Plan, page 35, second line of paragraph XV.a.: revise "or programs provided by
the District"to read"programs, activities, or functions provided by the District."
29. Exhibit E, Engineer's Estimate of Costs and Certification: replace entire exhibit with
revised Engineer's Estimate of Costs and Certification dated September 12, 2005, which
shall be subject to revisions that may be required by the City Administrator based upon
final review by the City Engineer. The Service Plan text and other exhibits shall be revised
in accordance with any revisions to this Exhibit E required by the City Administrator.
30. Exhibit G, Financing Plan: Throughout the exhibit, change "multi-family" to read
"townhomes."
31. Exhibit G, Financing Plan: Page 10 of Clifton Gunderson spreadsheets, first paragraph
under Note 2 (continued), line 4: between "maintenance" and period, insert ", unless
otherwise directed by the City."
32. Exhibit G, Financing Plan: Page 11 of Clifton Gunderson spreadsheets, first paragraph
under Note 5, line 5: between "one cent" and period, insert "per dollar of assessed
valuation."
33. Exhibit G, Financing Plan: Page 14 of Clifton Gunderson spreadsheets, second paragraph
under Note 13, line I: after"pledged revenue"insert "(including certain amounts projected
to be accumulated prior to the issuance of the bonds)."
34. Exhibit G, Financing Plan: Page 14 of Clifton Gunderson spreadsheets, second paragraph
under Note 13: at end of paragraph, insert sentence to read as follows: "The forecast
assumes that moneys released from the Bond Surplus Fund upon its termination will be
applied to the payment of debt service on the bonds."
35. Exhibit G, Financing Plan, letter from DRM Real Estate Advisors, LLC: in first line of
first paragraph, delete"and commercial." Add language indicating that DRM has reviewed
relevant portions of the Service Plan dated September 7, 2005. In the first line of the fourth
paragraph, insert "may" between "absorption" and "differ." Provide executed revised and
re-dated letter.
8
36. Exhibit G, Financing Plan, letter from Developer: provide executed revised and re-dated
letter with added explanation as to forecast of housing unit prices for both single-family
and townhomes (including how such prices relate to projected and actual housing prices for
comparable developments).
37. Exhibit J, Part I, Developer Indemnity Letter: third line of paragraph 2, change "waive" to
"waives";provide executed revised and re-dated letter.
38. Exhibit M, Form of Intergovernmental Agreement between District and City: revise
Section 5 to read as follows:
5. OWNERSHIP OF IMPROVEMENTS: LIMITED FUNCTIONS. The
parties agree that the District shall serve as a "financing only" district and
shall not be permitted to undertake ownership, operation, or maintenance of
public facilities and services, except as specifically set forth in the Service
Plan. All functions, activities, improvements, services, and programs of the
District are limited to those expressly authorized in this Service Plan,
notwithstanding any different, additional, or expanded powers or authority
that may be granted to the District by any present or future statutory or
regulatory provisions.
39. Exhibit M, Form of Intergovernmental Agreement between District and City: revise
Section 9 to read as follows:
9. ANNUAL REPORT; OTHER INFORMATION. The District shall be
responsible for submitting to the City an annual report and other information
pursuant to and as set forth in Section VII of the Service Plan.
Legacy Park Metropolitan District 2
1. Service Plan, page 1, line 16 under "I. INTRODUCTION": insert comma after the first
"designee."
2. Service Plan, page 2, line 4: revise "extent authorized" to read "extent expressly
authorized."
3. Service Plan,page 2, line 4: after the period, insert the following sentence: "All functions,
activities, improvements, services, and programs of the District are limited to those
expressly authorized in this Service Plan, notwithstanding any different, additional, or
expanded powers or authority that may be granted to the District by any present or future
statutory or regulatory provisions."
4. Service Plan,page 8,line 16: delete comma following"Water District."
9
5. Service Plan, page 12, line 19 under "g. Dedication of Improvements to the City": remove
extra space between"deemed" and"an."
6. Service Plan,page 13, line 12: insert"a"between"such"and "`Final Acceptance' letter."
7. Service Plan,page 13, line 14: delete"a"between"issue" and"`Final Acceptance'."
8. Service Plan, page 14, line 9 under "i. Acquisition of Land for Public Improvements":
remove extra space between"deemed"and"a."
9. Service Plan, page 14, line 3 under 1. Services to be Provided by other Governmental
Entities": revise"or other services within"to read"or other services or functions within."
10. Service Plan, page 15, first line under "V. FINANCIAL PLAN": insert comma after
"limitations."
11. Service Plan,page 18, line 17: insert comma after"capitalized reserves."
12. Service Plan, page 18, line 21: add "(single-family and townhomes, combined)" after "per
unit basis."
13. Service Plan,page 19, line 11: remove extra space between"than"and"three."
14. Service Plan, page 19, line 12: revise "existing lots within the District" to read "property
tax base of the District."
15. Service Plan, page 19, line 12: revise "The District's Financial Advisor" to read "The
District's Investment Banker."
16. Service Plan,page 19, line 13: delete comma after"special district debt."
17. Service Plan,page 19, line 16: revise"each series of bonds"to read "the bonds."
18. Service Plan,page 19, line 18: revise"each series of bonds"to read "the bonds."
19. Service Plan,page 20, line 7: insert comma after"lower interest rates."
20. Service Plan,page 21, line 8 under"d. Limited Mill Levy": replace em dash with a hyphen
in"one—hundredths"to read "one-hundredths."
21. Service Plan,page 21, line 8 under"d. Limited Mill Levy": insert comma after"(7.96%)."
10
22. Service Plan, page 23, line 2 under "g. Developer Bonds": revise "bonds of a series" to
read "of the bonds."
23. Service Plan,page 27, first line under"m. Letters": delete tab to adjust spacing.
24. Service Plan, page 29, line 14: revise "reporting report." to read "reporting period. The
District shall provide the City with a copy of the District's financial statements annually. In
years where an independent audit is not conducted, the District shall provide the City with a
copy of the application for exemption and the response by the State Auditor."
25. Service Plan, page . 34, lines 7-17 under "XIII. INTERGOVERNMENTAL
AGREEMENTS": begin new paragraph starting with "The District anticipates" and revise
the text of this paragraph to read as follows:
The District anticipates entering into one or more intergovernmental
agreements with Legacy Park Metropolitan District No. 1 for the sharing of
costs related to off-site public improvements benefiting both districts. The
total estimated costs of shared off-site improvements are included in Exhibit
E. The cost-sharing intergovernmental agreements are expected to provide
that, to the extent one district finances and constructs shared off-site
improvements, the other district shall reimburse the financing and
—
constructing district for its agreed-upon share of the costs of the shared off-
site improvements, but only if such reimbursement does not adversely affect
the reimbursing district's ability to repay its bonds. Any such cost-sharing
intergovernmental agreement shall be subject to review and approval by the
City Council prior to its execution by the District, and the City Council may
grant or withhold such approval in its sole and absolute discretion.
26. Service Plan, page 34, line 17 under"XIII. INTERGOVERNMENTAL AGREEMENTS":
begin new paragraph starting with "No other intergovernmental agreements are proposed at
this time."
27. Service Plan, page 34, lines 19 and 20 under "XIII. INTERGOVERNMENTAL
AGREEMENTS": delete"Legacy Park Commercial Metropolitan District and the."
28. Service Plan, page 35, second line of paragraph XV.a.: revise "or programs provided by
the District"to read "programs, activities, or functions provided by the District."
29. Exhibit E, Engineer's Estimate of Costs and Certification: replace entire exhibit with
revised Engineer's Estimate of Costs and Certification dated September 12, 2005, which
shall be subject to revisions that may be required by the City Administrator based upon
final review by the City Engineer. The Service Plan text and other exhibits shall be revised
in accordance with any revisions to this Exhibit E required by the City Administrator.
11
30. Exhibit G, Financing Plan: Throughout the exhibit, change "multi-family" to read
"townhomes."
31. Exhibit G, Financing Plan: Page 10 of Clifton Gunderson spreadsheets, first paragraph
under Note 2 (continued), line 4: between "maintenance" and period, insert ", unless
otherwise directed by the City."
32. Exhibit G, Financing Plan: Page 11 of Clifton Gunderson spreadsheets, first paragraph
under Note 5, line 5: between "one cent" and period, insert "per dollar of assessed
valuation."
33. Exhibit G, Financing Plan: Page 14 of Clifton Gunderson spreadsheets, second paragraph
under Note 13, line 1: after"pledged revenue" insert "(including certain amounts projected
to be accumulated prior to the issuance of the bonds)."
34. Exhibit G, Financing Plan: Page 14 of Clifton Gunderson spreadsheets, second paragraph
under Note 13: at end of paragraph, insert sentence to read as follows: "The forecast
assumes that moneys released from the Bond Surplus Fund upon its termination will be
applied to the payment of debt service on the bonds."
35. Exhibit G, Financing Plan, letter from DRM Real Estate Advisors, LLC: in first line of
first paragraph, delete "and commercial." Add language indicating that DRM has reviewed
relevant portions of the Service Plan dated September 7,2005. In the first line of the fourth
paragraph, insert "may" between "absorption" and "differ." Provide executed revised and
re-dated letter.
36. Exhibit G, Financing Plan, letter from Developer: provide executed revised and re-dated
letter with added explanation as to forecast of housing unit prices for both single-family and
townhomes (including how such prices relate to projected and actual housing prices for
comparable developments).
37. Exhibit J, Part I, Developer Indemnity Letter: third line of paragraph 2, change "waive"to
"waives"; provide executed revised and re-dated letter.
38. Exhibit M, Form of Intergovernmental Agreement between District and City: revise
Section 5 to read as follows:
5. OWNERSHIP OF IMPROVEMENTS: LIMITED FUNCTIONS. The
parties agree that the District shall serve as a "financing only" district and
shall not be permitted to undertake ownership, operation, or maintenance of
public facilities and services, except as specifically set forth in the Service
Plan. All functions, activities, improvements, services, and programs of the
District are limited to those expressly authorized in this Service Plan,
notwithstanding any different, additional, or expanded powers or authority
that may be granted to the District by any present or future statutory or
regulatory provisions.
12
39. Exhibit M, Form of Intergovernmental Agreement between District and City: revise
Section 9 to read as follows:
9. ANNUAL REPORT; OTHER INFORMATION. The District shall be
responsible for submitting to the City an annual report and other information
pursuant to and as set forth in Section VII of the Service Plan.
13
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