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HomeMy WebLinkAbout20041855.tiff . COPY CONSOLIDATED SERVICE PLAN FOR ERIE CORPORATE CENTER METROPOLITAN DISTRICT NOS. 1, 2 AND 3 January 26,2004 Prepared for Erie Corporate Center Metropolitan Districts No. 1, 2 and 3 By White and Associates Professional Corporation 1805 Shea Center Drive, Suite 100 Highlands Ranch, CO 80129 303-858-1800 6rvirnc ce 10 tJ \ 2004-1855 l' nt `' L r1 -- 0 7-- O y n 0 . C/q (L,n1J S_p pOp CI o 3 TABLE OF CONTENTS I. INTRODUCTION 1 A. General Overview 1 1. Multiple District Structure 1 2. Benefits of Multiple District Structure 2 3. Configuration of Districts 2 4. Long-Term District Plan 3 5. Existing Services and Districts 3 6. Property Owner Associations 4 B. General Financial Information and Assumptions 4 C. Contents of Service Plan 6 D. Modification of Service Plan 6 II. NEED FOR NEW DISTRICTS AND GENERAL POWERS 6 A. Need for Metropolitan Districts 6 B. General Powers of Districts 7 1. Sanitation 7 2. Water 7 3. Streets 7 4. Traffic and Safety Controls 7 5. Parks and Recreation 8 6. Television Relay and Translator 8 7. Mosquito and Pest Control 8 8. Transportation 8 9. Legal Powers 8 10. Other 8 III. DESCRIPTION OF FACILITIES AND IMPROVEMENTS 9 A. General 9 B. General Design Standards 10 1. Wastewater System 10 2. Storm Drainage 10 3. Water System 11 4. Street System and Traffic Safety 11 5. Park and Recreation 12 C. Estimated Cost of Facilities and Surety 12 IV. DEVELOPMENT PROJECTIONS 12 V. PROPOSED AND EXISTING AGREEMENTS 12 A. Master Intergovernmental Agreement 12 B. Intergovernmental Agreement with Erie 13 C. Other Agreements/Authority 13 VI. OPERATION AND MAINTENANCE COSTS 13 VII. FINANCIAL PLAN 14 VIII. OTHER REQUIREMENTS 16 a. CONCLUSIONS 18 LIST OF EXHIBITS EXHIBIT A- Development Plan EXHIBIT B -Map -Boundaries EXHIBIT C-Development Projections EXHIBIT D -Estimated Costs of Improvements EXHIBIT E-Legal Descriptions EXHIBIT F-Financing Plan EXHIBIT G -Erie Resolution of Approval L INTRODUCTION A. General Overview This consolidated service plan ("Service Plan") for Erie Corporate Center Metropolitan District No. 1, 2 and 3 (hereinafter collectively known as "Districts") constitutes a combined service plan for three Title 32 special districts proposed for organization to serve the needs of a new community to be known as "Erie Corporate Center" in the Town of Erie ("Erie"), which is being developed by Community Development Group (the "Developer"). Erie Corporate Center is generally located in Erie between W.C.R. 10 on the south, W.C.R. 12 on the north, W.C.R. 7 on the west and Interstate 25 on the east. It consists of approximately 602 acres, and will be divided into development areas consisting of residential and commercial development, open space and parks. Exhibit A contains a general "Development Plan" for the community. Exhibit C contains development projections. Considerable public infrastructure will be constructed to provide the required water, wastewater, streets, traffic safety control, park and recreation facilities, drainage improvements and other improvements generally described herein. This Service Plan addresses the improvements that will be financed, constructed, installed and otherwise provided by the Districts, and demonstrates how the Districts will work together to provide the necessary public improvements. 1. Multiple District Structure. This Service Plan is submitted in accordance with Part 2 of the Special District Act (§32-1-201, et seq., C.R.S.). It defines the powers and authorities of, as well as the limitations and restrictions, on the Districts. This Service Plan further sets forth the general parameters for the working relationship between Erie Corporate Center Metropolitan District No. 1, Erie Corporate Center Metropolitan District No. 2 and Erie Corporate Center Metropolitan District No. 3. Erie Corporate Center Metropolitan District No. 1 shall be referred to as "District No. 1" or the "Service District," and Erie Corporate Center Metropolitan District Nos. 2 and 3 shall be referred to as"District No. 2" and"District No. 3", respectively or the "Financing Districts." The Service District and the Financing Districts are sometimes collectively referred to as "the Districts." The Service District is responsible for managing the construction and operation of facilities and improvements needed for Erie Corporate Center. The Financing Districts are responsible for providing the funding and tax base needed to support the Financing Plan for capital improvements and for operations. The Financing Plan discussed throughout this Service Plan refers to a consolidated financial plan for the Districts, which sets forth the manner in which public improvements for Erie Corporate Center are anticipated to be financed. Due to the interrelationship between the Districts, various agreements are expected to be executed by the Districts clarifying the respective responsibilities and the nature of the functions and services to be provided by each District. The agreements will be designed to help assure the orderly development of essential services and facilities resulting in a community that is aesthetic and an economic asset to Erie. 1 The establishment of Erie Corporate Center Metropolitan District No. 1 as the Service District, which will initially own and operate the public facilities throughout Erie Corporate Center, and the establishment of Erie Corporate Center Metropolitan District No. 2 as the residential district and District No. 3 as the commercial district (collectively the "Financing Districts"), will generate the tax revenue to pay the costs of the capital improvements, administration and operations and maintenance, as well as create benefits for the inhabitants of the community. In general, those benefits are: (a) coordinated administration of construction and operation of public improvements, and delivery of those improvements in a timely manner; and (b) assurance that improvements required by Erie are constructed in a timely and cost effective manner. 2. Benefits of Multiple District Structure. a. Coordinated Services. As presently planned, development of Erie Corporate Center will proceed in phases, which will require the extension of public services and facilities. The multiple district structure will assure that the construction and operation of each phase of public facilities will be administered consistent with a long-term construction and operations program. Use of the Service District as the entity responsible for construction of improvements and for management of operation and maintenance needs will facilitate a well planned financing effort through all phases of construction, which will assist in the coordinated extension of services. b. Debt Allocation. Allocation of the responsibility for paying debt for capital improvements will be managed through development of a unified financing plan for such improvements and through development of an integrated operating plan for long-term operations and maintenance for those improvements retained by the Districts. Use of the Service District to manage these functions will help assure that no area within Erie Corporate Center becomes obligated for more than its share of the costs of capital improvements and operations. Neither high nor low- density areas will bear a disproportionate burden of debt and operating costs. c. Bond Interest Rates. The use of the Service District and/or the Financing Districts to issue bonds to provide for the cost of infrastructure in Erie Corporate Center will allow for the issuance of bonds at competitive interest rates. The use of a multiple district structure allows the Service District to coordinate with the Financing Districts the timing and issuance of bonds in such a way as to assure that improvements required by Erie are constructed in conformance with the time requirements, and in the manner, desired by Erie and the Districts. The combination of appropriate management and control of the timing of financing and the ability of the Districts to obtain attractive interest rates will benefit residents. 3. Configuration of Districts. In order to implement the multiple district structure, the boundaries of the Service District and the Financing Districts need to be carefully configured. A map showing the boundaries of the Districts are provided in Exhibit B. The Service District will contain approximately 3.983 acres, and the residential Financing District ("District No.2") and the commercial Financing District ("District No. 3") will initially contain approximately 186.00 and 411.374 acres, respectively. The combined acreage and boundaries of 2 the Financing Districts and the Service District cover all acreage currently within Erie Corporate Center. Legal descriptions of the property within the boundaries of the Districts are attached to this Service Plan in Exhibit E. The "service area" (the area legally permitted to be served) for the Service District will consist of the entire area of the Erie Corporate Center community, including the property within the Financing Districts' boundaries. The service area for each Financing District will be each Financing District's legal boundaries. The Service District will have power to impose taxes only within its legal boundaries, but will be permitted to impose fees and charges in its service area as well as to property or individuals outside of Erie Corporate Center based upon services provided to such property. It is currently anticipated that no residential units will be located within the Service District. District No. 2 is expected to contain all of the residential development, and District No. 3 is expected to contain only commercial development. It is possible that additional property may be included in the Financing Districts. Under Colorado law, the fee owner or owners of one hundred percent of any property proposed for inclusion may petition the boards of directors of the Financing Districts for inclusion of real property. The Districts shall have authority to consider such inclusions, subject to Erie's approval. Notwithstanding the aforesaid, the Districts shall be permitted to consider boundary adjustments of property located within the boundaries of either the Financing Districts or Service District without the prior approval of Erie so long as all of the property described in Exhibit B remains located in the Districts. No property shall be excluded from any District without Erie's approval, unless it is included into one of the other Districts. Notice of all inclusions or exclusions shall be provided to Erie pursuant to the annual reporting requirements set forth in Section VII,herein. 4. Long-Term District Plan. After all bonds or other debt instruments have been issued by the Districts and adequate provision has been made for payment of all debt and for operation and maintenance of the facilities not conveyed to Erie, the electorate of the Service District and Financing Districts, respectively, will have the opportunity to consider either the consolidation of the Service District and the Financing Districts into a single entity, or the dissolution of the Service District. The Service District will consider consolidation and/or dissolution at the time at which both the Service District and the Financing Districts' debt has been paid or adequate provision has been made for the payment thereof, and when adequate provision has been made for operation of all of the public facilities that have not been conveyed to Erie. Ultimately, control of these decisions will rest with the electorate in each District. 5. Existing Services and Districts. Erie will provide the usual municipal services such as water and sanitation service in conjunction with development of such improvements, and may supply such services to Erie Corporate Center directly or through arrangements with other municipal or quasi-municipal entities. Erie will also provide law enforcement services. The Mountain View Fire Protection District will provide fire protection. Other than Erie, there are currently no other entities in existence in the Erie Corporate Center area that have the ability or the expressed desire to undertake the design, financing and construction of the improvements designated herein which are needed for the community. 3 In order to minimize the proliferation of new governmental structures and personnel, the Service District intends to utilize existing entities as much as possible for operations and maintenance of public improvements. Although relatively few are expected, the Districts may retain operational and maintenance responsibilities for certain improvements such as community park and recreation facilities (including pocket parks, a recreation center, pool and landscaped common areas), which are not otherwise dedicated to and accepted by Erie. As a general matter, operations and maintenance of water, wastewater, storm drainage, street and traffic safety and associated landscaping, and park and recreation improvements will be the responsibility of Erie after such completed improvements are conveyed to Erie,by or on behalf of, and at the direction of the Service District. The timing for conveyance of improvements to Erie will be developed by mutual agreement between the Service District and Erie as generally described above and in Section V hereof pursuant to an Intergovernmental Agreement between Erie and the Districts (the "Town IGA"). To further avoid duplication of services and proliferation of governmental entities, it is possible that, for those improvements not conveyed to and accepted by Erie, the necessary operations and maintenance services may be provided by other entities, such as a property owners' association or a swimming pool or recreational facility operator through appropriate agreements with the Service District. Consequently, while the Service District and the Financing Districts will exist to finance capital improvements and coordinate the provision of services, they are expected to utilize existing entities as much as possible and may ultimately contract for or transfer responsibility for such operations and maintenance to a property owners association. 6. Property Owner Associations. Certain services will be provided within Erie Corporate Center by one or more property owner associations expected to be organized as Colorado non-profit, private membership organizations comprised of all property owners in Erie Corporate Center. The associations are expected to provide architectural control services, community organizations, community events and activities, community marketing, security, and other programs that may be beyond the scope of the Districts. All improvements, except for the community pool and associated landscaping, shall be transferred to Erie subject to Erie's acceptance thereof and provision of applicable warranties. Therefore, the Districts do not anticipate owning, operating and maintaining any of the public improvements other than certain and limited park and recreation improvements. It is anticipated that once the debt associated with such improvements not conveyed to Erie has been repaid, title to such improvements may be transferred to the property owners' association. B. General Financial Information and Assumptions The projected assessed valuations are shown in the Financing Plan attached hereto as Exhibit F. The anticipated cost of the public improvements necessary to provide access and appropriate services within Erie Corporate Center are substantial and are estimated in Exhibit D. The Districts anticipate obtaining financing for the capital improvements initially from Developer 4 advances, and then through the issuance of revenue bonds or other debt instruments by the Service District and/or through the issuance of limited tax general obligation bonds or other debt instruments by the Financing Districts. General obligation debt will be payable from revenues derived from ad valorem property taxes and from other available sources. The Financing District(s) anticipate the issuance, if any, of limited tax general obligation bonds after determination that the assessed valuation is sufficient to pay debt service within the limited mill levies allowed by this Service Plan. It is currently anticipated that credit enhancement and security, if any, for debt issued will be provided by the Developer. The financial forecasts for the Districts are contained in Exhibit F to this Service Plan. The Financing Plan demonstrates one method that might be used by the Districts to finance the cost of infrastructure as well as operation and administrative costs. At the time bonds or other debt instruments are proposed to be issued, alternative financing plans may be employed and utilized by the Districts without further approval from Erie so long as the alternative plans are consistent with the limitations set forth herein and do not constitute a material modification. Due to probable credit enhancement and other support expected from the Developer or other private sources, the Financing Plan demonstrates that the cost of public improvements and operation and administrative costs can be provided with reasonable mill levies. The estimated costs will not constitute legal limits on the financial powers of the Districts; however, the Districts shall not be permitted to issue bonds that are not in compliance with the bond registration and issuance requirements of Colorado law. The financial structure contemplated in the Financing Plan demonstrates that the risks associated with development of Erie Corporate Center will be borne initially by the Developer of the project. Due to the nature of liabilities associated with issuance of revenue bonds and developer owned debt, the entire risk of development will rest with the Developer until such time as the Financing Districts develop sufficient assessed valuation to support the debt service requirements of the bonds issued. At such time, any security provided by the Developer to support such bonds shall be incrementally reduced. In this manner, Erie is assured that the risks of development and the responsibility for repayment of debt issued for Erie Corporate Center will be borne solely by the residents and property owners of Erie Corporate Center, and will never become the responsibility, in any degree, of Erie. Additionally, Erie can be assured that there are legal and financial controls on special district indebtedness, which operate to limit indebtedness that residents can expect to pay. Generally, under current state law provisions, a special district cannot sell valid indebtedness payable from property tax revenues in excess of fifty percent (50%) of its valuation for assessment unless a statutory exception applies. Excepted from this limitation is indebtedness which is rated or insured, issued in minimum denominations of five hundred thousand dollars, issued to financial institutions or institutional investors, payable from a limited debt service mill levy not to exceed 50 mills, or unless such indebtedness is secured as to the payment of principal and interest by a letter of credit, line of credit or other credit enhancements. In addition, state securities laws do not provide exemption from registration for special district indebtedness not meeting such minimum requirements. 5 C. Contents of Service Plan This Service Plan consists of a financial analysis and preliminary engineering plan showing how the facilities and services for Erie Corporate Center can be provided and financed by the Districts working on a coordinated basis. Numerous items are included in this Service Plan in order to satisfy the requirements of law for formation of special districts. The assumptions contained within this Service Plan were derived from a variety of sources. Information regarding the present status of property within the Districts, as well as the current status and projected future level of similar services, was obtained from the Developer. The Developer assembled the construction cost estimates, and has experience in the costing and construction of similar facilities. The attorneys of White and Associates Professional Corporation, which represent numerous special districts, provided legal advice in the preparation of this Service Plan. The Developer provided financial recommendations and advice in the preparation of the Service Plan. D. Modification of Service Plan This Service Plan has been designed with sufficient flexibility to enable the Financing Districts to provide required services and facilities for Erie Corporate Center under evolving circumstances without the need for numerous amendments. While the assumptions upon which this Service Plan are generally based are reflective of current zoning for the property within Erie Corporate Center, the cost estimates and Financing Plan are sufficiently flexible to enable the Districts to provide necessary services and facilities without the need to amend this Service Plan in the event zoning changes. Modification of the general types of services and facilities, and changes in proposed configurations, locations, or dimensions of various facilities and improvements shall be permitted to accommodate development needs consistent with the then current zoning for the property. Pursuant to the Town IGA, the Districts shall be responsible for all reasonable costs of Erie's review for a material modification initiated by the Districts, conditioned upon Erie providing the Districts with a not-to-exceed estimate prior to each review. II. NEED FOR NEW DISTRICTS AND GENERAL POWERS A. Need for Metropolitan Districts Operations and maintenance of wastewater, storm drainage, street and traffic safety and associated landscaping, and park and recreation improvements will initially be provided by the Districts during the construction phases, with said operations to be assumed by Erie upon its final acceptance of the public facilities. Erie does not consider it feasible or practicable to provide Erie Corporate Center with the public improvements. Consequently, it is necessary that the proposed Districts be organized as a means to provide the residents and taxpayers with the necessary public improvements. 6 B. General Powers of Districts The Service District will have power and authority to provide the services and facilities described in this Section both within and outside its boundaries, in accordance with law. The powers and authorities of the Service District and the Financing Districts will be allocated and further refined in a Master Intergovernmental Agreement between the Districts (the "Master IGA"), the general form of which is described in Section V(A), which may be voted upon and approved by their respective electorates. For purposes of the Special District Control Act, the Master IGA shall not constitute an amendment of this Service Plan. It will, however, constitute a binding agreement between the Districts regarding implementation of the powers contained in this Service Plan. The Districts shall have authority to provide the following services and facilities, all of which shall be in conformance with Erie's standards and specifications: 1. Sanitation. Pursuant to the annexation agreement between the Developer and the Town concerning the land within the proposed Districts, the District shall not have the ability to exercise or otherwise provide sanitary sewer services and improvements if the St. Vrain Sanitation District provides such services, unless the St. Vrain Sanitation District consents to the Districts exercise of such power. However, if sewer service to the property is provided by the Town, then the District shall have the ability, without any St. Vrain Sanitation District consent, to exercise sanitation powers and construct and otherwise fmance the Town required sewer main improvements necessary for phased demand of the development. In such event, the District shall have the power of design, acquisition, installation and construction of sanitary sewer lines and all necessary or proper equipment and appurtenances incident thereto, together with all necessary, incidental and appurtenant facilities, land and easements, and all necessary extensions of and improvements to said facility or system. 2. Water. The design, acquisition, installation and construction of a complete water and irrigation water system, including but not limited to transmission and distribution systems for domestic and other public or private purposes, together with all necessary and proper facilities, equipment and appurtenances incident thereto which may include, but shall not be limited to, transmission lines, distribution mains and laterals, land and easements, together with extensions of and improvements to said systems. 3. Streets. The design, acquisition, installation, construction, operation, and maintenance of arterial street and roadway improvements, including but not limited to curbs, gutters, culverts, storm sewers and other drainage facilities, detention ponds, retaining walls and appurtenances, as well as sidewalks, bridges, parking facilities, paving, lighting, grading, landscaping, undergrounding of public utilities, snow removal equipment, or tunnels and other street improvements, together with all necessary, incidental, and appurtenant facilities, land and easements, together with extensions of and improvements to said facilities. 4. Traffic and Safety Controls. The design, acquisition, installation, 7 construction, operation, and maintenance of traffic and safety protection facilities and services through traffic and safety controls and devices on arterial streets and highways, as well as other facilities and improvements including but not limited to, signalization at intersections, traffic signs, area identification signs, directional assistance, and driver information signs, together with all necessary, incidental, and appurtenant facilities, land easements, together with extensions of and improvements to said facilities. 5. Parks and Recreation. The design, acquisition, installation, construction, operation and maintenance of public park and recreation facilities or programs which may include, but are not limited to, grading, soil preparation, sprinkler systems, playgrounds, playfields, swimming pool, bike and hiking trails, pedestrian trails, pedestrian bridges, picnic areas, common area landscaping and weed control, outdoor lighting of all types, community events, a recreation center and other facilities, together with all necessary, incidental and appurtenant facilities, land and easements, and all necessary extensions of and improvements to said facilities or systems. 6. Television Relay and Translator. The acquisition, construction, completion, installation and/or operation and maintenance of television relay and translator facilities, including but not limited to cable television and communication facilities, together with all necessary, incidental and appurtenant facilities, land and easements, and all necessary extensions of and improvements to said facilities so long as said facilities and improvements are not in conflict with any City ordinance or franchise agreement. 7. Mosquito and Pest Control. The design, acquisition, installation, construction, operation, and maintenance of systems and methods for the elimination and control of mosquitoes,rodents and other pests. 8. Transportation. The design, acquisition, installation, construction, operation and maintenance of public transportation system improvements, including transportation equipment, park and ride facilities and parking lots, parking structures, roofs, covers, and facilities, including structures for repair, operations and maintenance of such facilities, together with all necessary, incidental and appurtenant facilities, land and easements, and all necessary extensions of and improvements to said facilities or systems. 9. Legal Powers. The powers of the Districts will be exercised by the Boards of Directors to provide the services contemplated in this Service Plan. The foregoing improvements and services, along with all other activities permitted by law, will be undertaken in accordance with, and pursuant to, the procedures and conditions contained in the Special District Act, other applicable statutes, and this Service Plan, as any or all of the same may be amended from time to time. 10. Other. In addition to the powers enumerated above, the Boards of Directors of the Districts shall also have the following authority: a. To amend this Service Plan as needed, subject to the appropriate statutory 8 procedures and as permitted under the Town IGA,by written notice to Erie pursuant to § 32-1-207, C.R.S., of actions which the Districts believe are permitted by this Service Plan but which may be unclear. In the event Erie elects not to seek to enjoin any such activities under said statute, such election shall constitute agreement by Erie that such activities are within the scope of this Service Plan. Each District shall have the right to amend this Service Plan independent of participation of the other Districts; provided, however, that no District shall not be peiiuitted to amend those portions of this Service Plan which affect, impair, or impinge upon the rights or powers of the other Districts without such District's consent; and b. To forego, reschedule, or restructure the financing and construction of certain improvements and facilities, in order to better accommodate the pace of growth, resource availability, and potential inclusions of property within the Districts, or if the development of the improvements and facilities would best be performed by another entity; and c. To provide all such additional services and exercise all such powers as are expressly or impliedly granted by Colorado law, and which the Districts are required to provide or exercise or,in its discretion, chooses to provide or exercise; and d. To exercise all necessary and implied powers under Title 32, C.R.S. in the reasonable discretion of the Boards of Directors, except as limited by this Service Plan. III. DESCRIPTION OF FACILITIES AND IMPROVEMENTS The Districts will be permitted to exercise their statutory powers and authority set forth herein to finance, construct, acquire, operate and maintain the public facilities and improvements described in Section II of this Service Plan either directly or by contract. Where appropriate, the Districts will contract with various public and/or private entities to undertake such functions, including, but not limited to the Master IGA and Town IGA as further described in Section V. Detailed information for each type of improvement needed for Erie Corporate Center is set forth in the following pages. It is important to note that the information contained in this Section is conceptual and preliminary in nature only, and that modifications to the type, configuration, and location of improvements will be necessary as development proceeds. All facilities will be designed in such a way as to assure that the facility and service standards will be compatible with those of Erie and other service providers, as appropriate. The following sections contain general descriptions of the contemplated facilities and improvements, which are expected to be funded by the Financial Districts and constructed or caused to be constructed by the Service District. A. General Construction of all planned facilities and improvements will be scheduled to allow for 9 proper sizing and phasing to keep pace with the need for service. All descriptions of the specific facilities and improvements to be constructed, and their related costs, are estimates only and are subject to modification as engineering, development plans, economics, Erie's requirements, and construction scheduling may require. B. General Design Standards Improvements within the Districts will be designed and installed by the Service District in conformance with current standards adopted by the Service District and Erie. Designs and contract documents prepared for improvements must be reviewed and approved by the Service District and must be in accordance with Erie's applicable standards and specifications. 1. Wastewater System. The wastewater system will connect to Erie's sanitary sewer system in a manner consistent with Erie's Sanitary Sewer Master Plan applicable to Erie Corporate Center. The sanitary sewer lines will be designed and installed to conform to the current standards and recommendations of the Colorado Department of Health, Erie, Rules and Regulations adopted by the Districts and sound engineering judgment. All major elements of the sanitary sewer lines required for proper operation will be designed and installed independently and separately by the Developer. 2. Storm Drainage. a. Generally. The Service District plans to install the necessary storm drainage system to serve Erie Corporate Center that detain developed drainage and convey historic drainage per the Town's construction standards. The proposed elements of the storm drainage system will provide a network of ditches, culverts, and curbs and gutters designed and installed in accordance with applicable regulatory standards and sound engineering judgment. The Service District will design and install all storm drainage improvements except for specific improvements within individual development parcels that will be designed and installed by individual developers. All major storm drainage facilities will be designed to conform to the standards and recommendations for drainage improvements pursuant to Erie design criteria, including the intent of the current Urban Drainage and Flood Control District Master Plan requirements and the Rules and Regulations of the Districts. The development plan for the proposed storm drainage system within the project is more specifically described in Exhibit A. b. Culverts. Culverts will be installed, as needed, under roadways that intersect storm drainage channels. Culverts will be designed to pass flows as required and may include headwalls, wing walls, inlet structures, and riprap protection to enhance their hydraulic capacity and reduce bank or channel erosion. An overall drainage plan will be developed that will identify the major facilities necessary to convey the storm runoff from Erie Corporate Center. This plan will include all infrastructure required to convey the flows generated within Erie Corporate Center. This plan must maintain the 10 flexibility to modify the major drainage facilities as more detailed information is generated during the design of the individual phases. The overall drainage plan will include the utilization of storm sewers, drainage channels, streets, gutters, and culverts. 3. Water System. The water system will consist of a water distribution system consisting of buried water mains, fire hydrants, and related appurtenances located predominately within the Districts' boundaries. The proposed domestic potable water distribution system is expected to include pressurized water mains with multiple pressure zones. Water system components will be installed in accordance with the applicable standards of all entities with jurisdiction over the Districts, including Erie. The Drinking Water Design Criteria of the Colorado Department of Health will also be followed where applicable. The water system will also be designed based on Erie fire protection requirements. The individual water system components will be sized based upon the projected potable, irrigation and fire flow requirements of Erie Corporate Center. The water distribution system will be dedicated to Erie. The system is expected to include main distribution and transmission lines and related appurtenances. The mains will provide for normal and peak water demands of the project as well as the delivery of fire protection water. The development plan for the proposed water system is described in Exhibit A. 4. Street System and Traffic Safety a. General. The Service District proposes to construct an arterial street system to serve all of Erie Corporate Center. The existing and proposed elements of the street system will provide a network of major arterial streets to serve the flow of traffic within and surrounding the Districts. All facilities will be designed and installed in accordance with applicable regulatory standards and sound engineering judgment. The development plan for the proposed street system is more specifically described in Exhibit A. b. Streets. Public streets will be designed and installed to conform to the standards and recommendations of the American Association of State Highway and Transportation Officials, the Colorado Department of Highways (where applicable), Erie's standards and specifications and the Rules and Regulations adopted by the Districts. Traffic controls and signage will be provided along streets to enhance the flow of traffic within Erie Corporate Center. Streetlights will be funded on a pro rata basis by the Service District along collector roadways. Lighting of local roadways will be the responsibility of the individual developers of the residential parcels. c. Landscaping. Landscaping may be installed by the Service District along the roadway rights-of-way and trail easements. The Service District also intends to install and maintain landscaping along the internal streets and entry features at major entrances, unless dedicated to the Town. Additional features may be installed and maintained by the developers of the individual parcels. 11 d. Signals and Signage. Signals and signage will be installed by the Service District as required by traffic studies, the Service District's Rules and Regulations, and by Erie. 5. Park and Recreation. All park and recreational facilities and/or services will be constructed in accordance with plans and specifications approved by Erie as set forth in Exhibit A. All park and recreational facilities @arks and trails to service the development, and a pool to serve the residential community) will be constructed in accordance with engineering and design requirements appropriate for the surrounding terrain, and shall be compatible with Erie's standards or the standards of other local public entities, as appropriate. C. Estimated Cost of Facilities and Surety. The estimated cost of the facilities to be constructed, installed and/or acquired by the Financing District is shown in Exhibit D, and are exclusive of organizational costs, inflation and all bond issuance costs, including but not limited to such issuance expenses like debt service reserves, capitalized interest,underwriter's discount, and legal fees. Any surety required of the Districts by Erie for completion of the public improvements that are funded by the Districts, shall be set at an acceptable level by Erie taking into consideration the quasi-municipal and publicly accessible nature of Title 32 metropolitan districts. The amounts and timing of the surety required of the Districts will be based on final plat approval, and shall be due for only the District funded improvements contemplated on a phase-by-phase basis. The District surety requirements will be in addition to the estimated costs of the public improvements, and shall not count against the debt limit contemplated herein. IV. DEVELOPMENT PROJECTIONS Land use within the project will be primarily residential and commercial. See Exhibit C, "Development Projections" for proposed land classifications and densities. V. PROPOSED AND EXISTING AGREEMENTS A. Master Intergovernmental Agreement As noted in this Service Plan, the relationship between the Service District and the Financing Districts, including the means for approving, financing, constructing, and operating the public services and improvements needed to serve Erie Corporate Center will be established by means of a Master IGA to be executed by the Districts after organization. A final version of the Master IGA shall be submitted to Erie after the election on the organization of the Districts, if not prior thereto. The Districts shall not borrow any money, incur any debt, or impose any taxes or fees until Erie approves the Master IGA, which approval shall not be unreasonably withheld. The obligation of the Districts set forth in the Master IGA shall not count against any bonded debt limit or restriction of the Districts. 12 The Master IGA will establish extensive procedures and standards for the payment of the capital costs of the improvements, the payment of operation and maintenance expenses, the payment of the administrative expenses and the construction, acquisition, operation and maintenance of the improvements and the administration of the affairs of the Districts by the Service District. B. Intergovernmental Agreement with Erie Subsequent to their organization, the Districts may enter into an IGA with Erie (the "Town IGA"), which may generally provide that: (1) Other than as set forth in this Service Plan, the Districts shall take all action necessary to dissolve pursuant to Title 32, Article 1, part 7, C.R.S., as amended from time to time, as provided for under Colorado law if and in the event they do not need to remain in existence to operate and maintain facilities contemplated under this Service Plan; (2) the Districts shall not publish, without written consent of Erie, a notice under 32-1-207(3), C.R.S. of their intent to undertake construction of any facility, the issuance of bonds or other financial obligation, the levy of taxes, the imposition of rates, fees, tolls and charges, or any other proposed activity which requires that any action to enjoin such activity as a material departure from the Service Plan be brought within forty-five (45) days of such notice; (3) that as a consequence of the organization, the Districts shall assume certain development obligations of the Developer as set forth in the annexation agreement; (4) the provisions of the annexation agreement and subdivision improvement agreement for Erie Corporate Center shall prevail over inconsistent provisions in the Service Plan; (5) the Districts are subject to Erie's zoning, subdivision and building codes and (6) other provisions as mutually agreed by the parties. The Districts shall not borrow any money, incur any debt or impose any taxes or fees until Erie and the Districts execute the Town IGA, and such execution shall not be unreasonably withheld. C. Other Agreements/Authority To the extent practicable, the Districts may enter into additional intergovernmental and other private agreements to better ensure long-term provision of the improvements and services and effective management. Agreements may also be executed with property owner associations and other service providers. All such agreements are authorized to be provided, pursuant to Colorado Constitution, Article XIV, Section 18 (2)(a) and Sections 29-1-201, et seq., Colorado Revised Statues. Upon formation, the Districts will enter into Erie's standard subdivision improvement agreement ("SIA") for the public improvements that the Districts are able to finance and otherwise provide. The Developer is expected to also enter into a SIA with Erie for other improvements that the Districts will not be undertaking. 13 VI. OPERATION AND MAINTENANCE COSTS Estimated costs for operation and maintenance functions are presented in the Financing Plan attached hereto as Exhibit F and are forecasted at approximately $36,000 per year at build-out increasing at a rate of 4%per year over the life of the forecast. VII. FINANCIAL PLAN Attached to this Service Plan, as Exhibit F, is a Financing Plan that shows how the proposed consolidated services and facilities may be financed and operated by the Districts. The Financing Plan demonstrates one method that might be used by the Districts; however, alternative plans may be employed and utilized without additional approval so long as such plans are within the parameters and limits contained herein and do not constitute a material modification of the Service Plan. The Financing Plan includes the proposed operating revenue derived from ad valorem property taxes for each applicable year, including the first budget year, to be used by the Service District. The Master IGA is expected to provide that the obligation of the Financing Districts to pay the Service District for capital and general operating expenses of the Districts shall constitute "contractual debt" of the Financing Districts, but shall not count against any general obligation debt limit. Accordingly, mill levies certified to make necessary payments to the Service District may be characterized as debt service mill levies notwithstanding that they are imposed in part to pay contractual obligations for operations and maintenance services provided by the Service District. Initially, the Service District anticipates borrowing its initial operating and capital project funds from advances made by the Developer or other private entities and/or by issuing revenue bonds until such time as the Districts are able to generate sufficient revenues from ad valorem mill levies or from other legally permissible revenue sources. It is anticipated that the Service District will issue revenue bonds with appropriate credit enhancement, if any, provided by the Developer - and secured by pledge agreements from the Financing Districts. The Financing Districts may issue limited tax general obligation debt supported by ad valorem mill levies in order to retire the revenue bonds issued by the Service District, repay developer advances and/or as an alternative way for providing the public improvements contemplated herein. Proceeds from such bonds are also anticipated to be used for, but are not limited to, reimbursing all funds borrowed by the Service District to finance the acquisition, construction and completion of improvements and to pay for all of the costs of issuance of the bonds. Prior to the closing of any bond issue, the Districts shall provide Erie with an opinion from the legal counsel stating that the bond issue is in conformance with the Service Plan. Additionally, in order to allow Erie an opportunity for review, the issuing District shall provide Erie with substantially final forms of any indenture, authorizing resolution and offering document intended to be adopted by the District. Erie shall have ten (10) business days from receipt of such documents to provide the Districts with any and all objections that the structure or terms of such bond issue are in conflict with this Service Plan. Failure to make such timely objection shall constitute consent to the proposed issuance. Pursuant to the Town IGA, the Districts shall be responsible for all reasonable costs of Erie's review, conditioned upon Erie providing the Districts with a not-to- exceed estimate prior to such review. 14 The Financing Plan identifies the proposed debt issuance schedules of the Districts, and shows the manner in which the financial operations of the Districts will be coordinated. Each District shall be permitted to impose a mill levy not to exceed forty-five (45) mills for debt service requirements, and an aggregate of fifty (50) mills for combined debt service and operational and maintenance requirements of the Districts (collectively referred to as the "Mill Levy Cap"). The Mill Levy Cap shall be subject to automatic adjustment if, after the original date of approval of this Service Plan, the laws of the State change with respect to the assessment of property for taxation purposes, the ratio for determining assessed valuation changes, or other similar changes occur. In these events, the Mill Levy Cap shall be automatically adjusted so that the tax liability of individual property owners neither increases nor decreases as a result of any such changes thereby maintaining a constant level of tax receipts of the Districts and overall tax payments from property owners. The Districts may eliminate the Mill Levy Cap with Erie's consent. Upon approval of this Service Plan, the Districts will continue to develop and refine cost estimates contained herein and prepare for bond issuances. All cost estimates will be inflated to current dollars at the time of bond issuance and construction. Engineering and other contingencies, as well as capitalized interest and other costs of financing may be added. All construction cost estimates assume construction to applicable local, state or federal requirements. The total estimated costs of improvements are $18,011,582 (in 2003 dollars) set forth in Exhibit D, exclusive of organizational costs, interest on amounts borrowed from Developer and other similar costs as well as cost of bond issuance (which shall expressly include, but not be limited to debt service reserves, capitalized interest, underwriter's discounts, and legal fees). Organizational costs are estimated to be $80,000 and will be reimbursed to the Developer by the Districts out of their initial revenue sources, including bond proceeds. The combined new money revenue and general obligation debt limit ("Debt Limit"), for the Districts will be $27,000,000, inclusive of organizational costs, but exclusive of any surety requirement and the costs of issuance contemplated above, so that the Districts shall have the authority to issue debt in an amount sufficient to fully finance and construct all facilities contemplated herein and fully implement the Service Plan without the need to seek approval of any modification of this Service Plan. Increases in debt necessary to accomplish a refunding, re-issuance or restructuring of debt shall not count against the Debt Limit. Obligations of the Districts in the Master IGA will not count against the Debt Limit. If the assumptions contained in the Financing Plan are more conservative than what actually develops, the Districts, upon Erie's approval, shall have the ability to utilize excess debt capacity, which may develop within the Districts. The Districts shall also be permitted to seek debt authorization from their electorates in excess of the Debt Limit to account for contingencies. Reasonable modifications of public facilities and cost estimates shall be permitted. Final determination of the amount of debt for which approval will be sought from each District's electorate from time to time will be made by the Board of Directors of each District based on then current estimates of construction costs, issuance costs, and contingencies. Authorization to issue bonds and enter into various agreements described herein will be sought from each District's electorate pursuant to the terms of the Special District Act, and the Colorado Constitution, as amended from time to time. 15 In addition to ad valoieni property taxes, and in order to offset the expenses of the anticipated construction and the Service District operations and maintenance costs, the Districts may also rely upon various other revenue sources authorized by law. These will include the power to assess fees, rates, tolls, penalties, or charges as provided in § 32-1-1001(1), C.R.S., as amended. To the extent the Districts desire to adopt a fee not specifically contemplated pursuant to the Financing Plan, they shall advise Erie of the level of the anticipated fee and the reasons therefor and obtain Erie's consent, which shall not be unreasonably withheld. The Financing Plan assumes various sources of revenue, including ad valorem property taxes and specific ownership taxes, together with interest earnings on retained amounts. Additionally, the Districts may receive certain revenues from reimbursement payments for the construction of public facilities as more fully described within the Financing Plan. The Financing Plan does not project any significant accumulation of fund balances that might represent receipt of revenues in excess of expenditures under the TABOR Amendment. The operations of the Service District may, under certain circumstances, qualify as "enterprises" under the TABOR Amendment. If its operations do not qualify as enterprises under TABOR, revenues from all sources that exceed the permitted level of expenditures in a given year will be refunded to taxpayers, unless a vote approving the retention of such revenues is obtained. To the extent annual district revenues exceed expenditures in this manner, the Districts will comply with the provisions of TABOR and either refund the excess or obtain voter approval to retain such amounts. The maximum voted interest rate for bonds will be 18%. The proposed maximum underwriting discount will be 5%. The maximum term of bonds issued by the Districts shall be forty (40) years, and it shall be a condition that any amount of outstanding principal and/or accrued interest that remains unpaid upon final maturity of the bonds shall be deemed to be forever discharged and satisfied in full. Interest on all bonds and other debt instruments of the Districts, inclusive of reimbursement obligations to the Developer, shall be restricted to simple interest and will not compound. Acceleration of debt service shall be prohibited upon all bonds and other debt instruments of the Districts, inclusive of reimbursement obligations to the Developer. In the discretion of the Boards of Directors, the Districts may set up other qualifying entities to manage, fund, construct and operate facilities, services, and programs. To the extent allowed by law, any entity created by the Districts will remain under the control of its Board of Directors. The Financing Plan demonstrates that the Districts will have the financial capability to discharge the proposed indebtedness with reasonable mill levies assuming reasonable increases in assessed valuation and assuming the rate of build-out estimated in the Financing Plan. VIII. OTHER REQUIREMENTS The Districts shall be subject to the following additional requirements: 1. The Districts shall be responsible for submitting an annual report to Erie no later than 16 March 1 of the subsequent fiscal year. The annual report shall include information as to any of the following events that occurred during the preceding calendar year as of December 31s`: a. Boundary changes made or proposed. b. Intergovernmental Agreements with other governmental entities entered into or proposed. c. Changes or proposed changes in the Districts'policies. d. Changes or proposed changes in the Districts' operations. e. Any changes in the financial status of the Districts including revenue projections, or operating costs. f. A summary of any litigation that involves the Districts. g. Proposed plans for the year immediately following the year summarized in the annual report. h. Status of Districts'Public Improvement Construction Schedule. i. A list of all facilities and improvements constructed by the Districts that have been dedicated to and accepted by Erie. j. Summary of current assessed valuation in the Districts. 2. Material modifications of this Service Plan, except as contemplated herein, shall be subject to approval by Erie in accordance with the provisions of§ 32-1-207, C.R.S. and pursuant to the Town IGA. 3. Written notice of all regular and special meetings of the Districts will be delivered to the office of the City Clerk. Notices shall be delivered at least three days prior to such meeting. 4. The Districts shall be prohibited from claiming entitlement to funds from the Conservation Trust Fund. The Districts shall not apply for any grants from Greater Outdoors Colorado. 5. The Districts agree that they shall not be authorized or undertake any eminent domain actions pursuant to section 32-1-1004 (4), C.R.S. without the prior approval from Erie. 6. The petitioners for organization of the Districts will make a good faith effort to assure that the developers of the property located within the Districts provide adequate written notice to purchasers of land in the Districts regarding the existence of taxes, charges, or assessments which may be imposed in connection with the Districts by providing a written disclosure of the same. It is anticipated that the petitioners will require that all builders purchasing property within the Districts from the petitioners will provide such disclosure to homebuyers at the time of contracting. The disclosure shall include, but not necessarily be limited to the following matters: (1) the Districts' authorized debt; (2) facilities and services to be operated and maintained by the Districts or via contract with the HOA; (3) maximum mill levy and the procedure for any adjustment thereto; (4) any applicable fees and a statement that such fees are separate from any applicable HOA fees. Subsequent to organization, the Districts shall 17 record the disclosure in the real property records of the County of Weld, State of Colorado. IX. CONCLUSIONS It is submitted that this Service Plan as required by § 32-1-203(2), C.R.S., has established that: • (a) There is sufficient existing and projected need for organized service in the area to be served by the Districts; (b) The existing service in the area to be served by the Districts is inadequate for present and projected needs; (c) The Districts are capable of providing economical and sufficient service to the area within its boundaries; (d) The area included in the Districts does have, and will have, the financial ability to discharge the proposed indebtedness on a reasonable basis; Therefore, it is requested that the Town Council of Erie, Colorado, adopt a resolution that approves this "Consolidated Service Plan for Erie Corporate Center Metropolitan District Nos. 1, 2 and 3," as submitted,which shall be attached hereto as Exhibit G. Respectful itted, By: a en,Esq. o ITE AND ASSOCIATES,P.C. Counsel to Proponents of the Districts ECM DVSP LANUCSA 1245022803 0634.0003 18 EXHIBIT A Development Plan 11/11/03 Erie Corporate Center Metropolitan District Proposed Facilities/Improvements Narrative A. Parks and Recreation 1. Parks — The District will construct the required parks and trails to serve the project. 2. Recreational Amenity/ Pool — The District will construct a pool to serve the residential community. B. Streets and Traffic Safety 1. Weld County Road 7 — The District will construct acceleration/ deceleration lanes and shoulder improvements to WCR 7 for the two access points to the residential community off of WCR 7. 2. Weld County Road 7 '/z - The District will construct WCR 7 '/a in phases as deemed necessary by the onsite traffic demand. 3. Weld County Road 10 — The District will construct a 2 lane roadway at WCR 10 as deemed necessary by the onsite traffic demand and to provide access from east of I25 to the Erie Corporate Center. 4. Weld County Road 12 - The District will construct a 2 lane roadway at WCR 10 as deemed necessary by the onsite traffic demand. 5. BC/ RC Collector Roadway — The District will construct a 2 lane connector roadway within commercial districts BC/ RC as deemed necessary by the onsite traffic demand and the planning parcel boundaries. 6. Traffic Signalization — The District will contribute a proportional share of the cost of a signal based on the District boundary as it relates to the ownership of the four corners of the intersection. 7. Entry Features—As part of the landscaping improvements to the roadways the District will construct entry monuments. 11/11/03 C. Storm Drainage 1. Erie Outfall Systems Improvements — The District is responsible for constructing drainage improvements on Erie Corporate Center that detain developed drainage and convey historic drainage per Town of Erie construction standards. 2. Ditch Improvements — The District will construct trail and ditch improvements including piping of any ditches. D. Water System 1. Water Main Extensions — The District will construct offsite and onsite water main improvements as deemed necessary by the phased demand of the project. E. Sanitary Sewer 1. Sewer Main Extensions—The annexation agreement provides an option where by the District will construct the required Town of Erie offsite and onsite sewer main improvements as deemed necessary by the phased demand of the project. In the event the sewer is provided by the St. Vrain Sanitation district the cost of said offsite will not be included in the District unless St. Vrain District policy allows for such inclusion of costs. Erie Corporate Center Metropolitan Districts COUNTY ROAD 7 > E 3 ER JDISTRICT #2T- i Acres 4. 78.000 Acres (V o L a O ilh 84.50 Aaes a z o O cc CC o 76.35 Aae. O Z CC 0 Iiir-U reoeollisir BC BC 3057awls 83.71 Arne r DI TRI RC 82.75 Acme BC - 9 102.87 Acres ) INTERSTATE 25 • t cr L7901 E.B(720) SOI I I Suite ISO Englewood,ed•w e01 I I CTd: 482-9526(720) Fu:(720)482-9546 COCU Lwts cc MOM,wo,It OM...memos. .LUC.0.....b • LAND AA.NINO Erie Corporate Center - Recreation Amenities COUNTY ROAD 7 j ER 3 ER 18.07 Acresit - 78.00 Acres N Q 11 r7 cc O �` a \ 84 50 Acres a z 78.3e Anse U Z CC 32.3 Acres O V p BC 395 C e * Actual location to be determined. 83.71 Ames (/ e275 Acr RC.e BC 102.87 Acne • INTERSTATE 25 I 7901 E.aelleview Avenue Suite ISO Englewood,Ca 80111 Tel:(720)482-9526 Fa:(720)482-9316 C0ISULTANIS IT CCURADO,It arc a neci • BAta)Acie a rses • LAM KAwMA Erie Corporate Center Roadways COUNT/ ROAD 7 16.0 ER R ER Ames p 78.00 Acres N T Y �n O o LR p 89.50 Acres 4 z o • gt CC 0n 78.36 Acres 32.8 Acres COUNTY ROAD 7 a10 2 BC BC 39.57 acres 63.71 Acres 02.IRc Acree BC 102.87 Acres INTERSTATE 25 7901 E. l (720ewSuite AvenueUO Englewood,CO 101 I 1 Tecl:(720)112-9126 Fu:(720)482-9546 CINSITME CI(1.(RAD0, avf.>masoreo • 1.12m JIMMYING • IAA]tYMW Erie Corporate Center Regional Drainage COUNTY ROAD 7 > ye ER 78.000 Acres * N a O o LR Z a 84.50 Acres Q Z O 0 °C CC 0 78.38 Acres - * V CC 32.38 Acre. / O -/-s--- -- --- V BC 39 57 . 83.71 Aase < / Actual locations to be determined. RC 82.5Ae. BC 102.87 Aues - * * INTERSTATE 25 . 7901 E.Englewood. CO80111 Suite ISO EK flellevl C 80111 Tel:(720)182-9576 Fu:(720)182-9546 W191TAA15 Cf CUM P( ays,luommW0 • LAND IIUMMIo • LAND HAleeeo Erie Corporate Center Waterline Extension dr WATERLINE COUNTY ROAD 7 > 3 ' iaA Res 78.00 Acres N o 5. LR cc O 81.50 Acres 4 Z O O IX CC V C 70.38 A Z> 32.3 d ms es ..........._�� O U BC BC 39.57 scree <<< 83.7T Acres \\\111 RC 62.75 Acres BC 102.87 Acres INTERSTATE 25 - 79010 Bellevlew Avcnue Sidle 150 Englewood,CO 80111 Tel:(720)182-9526 Fu:(720)482-9546 COMM Cf C0LMUD0, INC. Cve.:R'IIYO•RIO . We se>evneo • We)snMOCC EXHIBIT B Map—Boundaries • EXHIBIT COUNTY ROAD 12 ,i_N89'45'35"E_153O.OO'_N89'45'35"E 1097.67' N89;45'48"E_2347.37_ _ _ �� ' I t I H. "DISTRICT 3 I _;� "DIRECTOR'S I I ait, " PARCEL 1 "A I I 1 -"?00. m T _40 00 to 0 10 N N LINE TABLE . ri I LINE BEARING DISTANCE n 3U5 n 11 1.436144'21-E 100.00 L2 N64•03'19-E 100.00 DISTRICT 2 o "RESIDENTIAL CURVE TABLE o TAXING CURVE DELTA RADIUS LENGTH BEARING DISTANCE o I Cl 19'26'44'19'26'44' 2857.50' 969.81' N57109'3O11965,16' DISTRICT' C2 36.38'77 1000.00' 639,50' N55-0S34•E 628.66' C3 2716'58• 180.00' 85.87 5502750'W 85.01' "", C4 8'41'06• 570.00 86.40' N59'27'55-E 86.32' I CS 34'44'18' 90.00' 54 57' S17-30'30•E 53.77 Ia n N t N 0 in CC _ I N I w W oo " DISTRICT 3 ,`T cr "1 L> COMMERCIAL TAXING DISTRICT" N I P I o xI X34�94E -_ ``I o I a Z .1 585.10"`` -". i \a•,4 . I 171 I '10 itP In I . DISTRICT 1 • I ,a DISTRICT 2 ' 9, "OPERATING 3 3 Q "DIRECTOR'S r F I DISTRICT" & N^ I a W PARCEL" LZ I "DIRECTOR'S .oi Si r o PARCEL" On n z Gti a, 674D' - 1 i o 1 at 'CO-01 bQ en I mo .; 0 03 b ��' 589'43'33"W 1768.55' 844.10-1-989'37155-W-1819.97' N 9y j COUNTY ROAD 10 'L' 500 400 0 500 1600 IsCAIE: 1• " 600' SECTION 10, T 1 N, R 68 W - WELD COUNTY, COLORADO N to JANUARY 8, 2002 ea Tie ERIE CORPORATE CENTER 7901EBeDevn Ave6ue suite 150 Ir METROPOLITAN DISTRICT EXHIBIT Englewood,CO 60111 0 co (720)482-9526 Faze(720)482.9546 This drawing is intended only to accompany the attached legal CCNSUUANIS, INC OF CCICRADO IIJ 4 description and does not represent a monumented land survey. av6:6accaluno • LAND 6tncVXYa+a • ISO PLR00a .o $ EXHIBIT C Development Projections ERIE CORPORATE METROPOLITAN DISTRICT DEVELOPMENT PROJECTIONS x:", .`'1„»R'PRODUC7 "' ' . t- 11NIT e:`4 Ldii UNITa=: .e7OTAL-x°.-1'r.4260G` 1-`t 007.i-1 `-'21iD8'", .1 '3009'- 1'? 2010`,% .42014 'It I.3012,ft?- '."203. ..-`�k,r,2014'`it i2015K°'""1`"*e,20i6 -� 3.5 acre residential EACH $ 750,000 13 - 3 3 3 4 - 15,000 s.r.residential EACH $ 400,000 67 23 22 22 - - - 65's EACH $ 320,000 160 40 40 40 40 - - 55's EACH $ 280,000 160 40 40 40 40 - - Community Commercial S.F. $ 100 980,100 - - - 130,680 130,680 130,680 130,680 130,880 130,680 130,680 65,340 Regional Commercial S.F. $ 100 744,876 - - 130,680 130,680 196,020 130,680 156,816 Business Commercial S.F. $ 100 2,015,472 313,632 235,224 316,632 156,816 235,224 313,632 156,816 287,496 EXHIBIT D Estimated Costs of Improvements ERIE CORPORATE METROPOLITAN DISTRICT ESTIMATED COSTS OF IMPROVEMENTS CURRENT BUDGET 12"water main adj to WCR 7 458,905 12"water main in WCR 10 458,905 12" water main loop back to WCR 8 458,905 Regional drainage 1,117,463 Ditch piping / improvements 655,578 Parks 931,219 Recreational amenity (pool) 750,000 WCR 7 accel/decel & east 1/2 620,813 WCR 7 1/2 - 2 lanes 2,048,681 WCR 7 1/2 - 4 lanes w/ landscaping 3,538,631 WCR 10 1,241,625 WCR 12 645,645 Internal loop road w/water 1,966,734 Entry features 993,300 Signalization - 1/4 of intersections 372,488 Interchange approvals 150,000 Sanitary sewer 1,602,690 $ 18,011,582 11/11/03 Erie Corporate Center Metropolitan District Proposed Facilities/Improvements Cost Estimate A. Parks and Recreation 1. Parks $931,219 2. Recreational Amenity/Pool $750,000 B. Streets and Traffic Safety 1. Weld County Road 7 $620,813 2. Weld County Road 7 V2 $5,587,312 3. Weld County Road 10 $1,241,625 4. Weld County Road 12 $645,645 5. BC/RC Collector Roadway $1,966,734 6. Traffic Signalization $372,489 7. Entry Features $993,300 8. Interchange Approvals $150,000 C. Storm Drainage 1. Erie Outfall Systems Improvements $1,117,464 2. Ditch Improvements $655,578 D. Water System 1. Water Main Extensions $1,376,715 E. Sanitary Sewer $1,602,690 EXHIBIT E Legal Descriptions CMI - Civil Engineering Land Surveying Land Planning • CONSULTANTS, INC. ERIE CORPORATE CENTER DESCRIPTION OF DISTRICT 1 "OPERATING DISTRICT" & "DIRECTOR'S PARCEL A parcel of land 235 feet in radius in the Southeast Quarter of said Section 10, Township 1 North, Range 68 West of the Sixth Principal Meridian, Town of Erie, County of Weld, State of Colorado, more particularly described as follows: .CO75mENCING at the Southeast corner of said Section 10; Thence North 00°22' 56" West along the easterly line of said Section 10 a distance of 683 .29 feet to a point; Thence South 89°37' 04" West a distance of 676.70 feet to the center point of said parcel . Containing 3 .983 acres, more or less . J- on ft M. Mh-ise f�•LS 8281 in: i° / r and On Behalf •�2p17E 282811 ; o , Inc. iii �i-OB-0�•:,�� ii�✓,'.• • •av, . .. Jas �`"141 LANDS" N:\PROJECTS\01802901\DWG\018029SDRVEY\LEGALS\DIST 1 OPER 8 DIR.DOC January 8, 2002 CVL CONSULTANTS, INC. 7901 E. Belleview Ave., Ste 150 Englewood, CO 80111 Tel. (720)482-9526 FAX (720) 482.9546 DENVER • PHOENIX • LAS VFGiAS • • ca Civil Engineering . . Land Surveying Land Planning CONSULTANTS, INC. ERIE CORPORATE CENTER. DESCRIPTION OF DISTRICT 2 ^RESIDENTIAL TAXING DISTRICT" A part of Section 10, Township 1 North, Range 68 West of the Sixth Principal Meridian, Town of Erie, County of Weld, State of Colorado, more particularly described as follows : COMMENCING at the Northwest corner of said Section 10; Thence North 89°45 ' 35" East along the northerly line of said Section 10 a distance of 30. 00 feet to a point; Thence South 00°08 ' 14" East parallel with and 30 . 00 feet easterly of the westerly line of said Section 10 a distance of 30.00 feet to the POINT OF BEGINNING; Thence North 89°45 ' 35" East parallel with and 30.00 feet southerly of the northerly line of said Section 10 a distance of 1530.00 feet to a point; Thence South 00°08 '21" East a distance of 3673 .28 feet to a point of curvature; Thence along the arc of a curve to the left having a central angle of' 34°44' 18" , a radius of 90 .00 feet, an arc length of 54.57 feet, and whose chord bears South 17°30 ' 30" East, 53 .73 feet to a point; Thence South 34°52 ' 38" East a distance of 592 . 64 feet to a point of non-tangent curvature; Thence along the arc of a curve to the right having a central angle of 08°41 ' 06" , a radius of 570.00 feet, an arc length of 86.40 feet, and whose chord bears South 59°27 ' 55" West, 86.32 feet to a point; Thence South 64°03 ' 19" West a distance .of 100. 00 feet to a point of non-tangent curvature; Thence along the arc of a curve to the left having a central angle of . 27°18 ' 58" , a radius of 180 .00 feet, an arc length of 85 .82 feet, and whose chord bears South 50°23 ' 50" West, 85 . 00 feet to a point; Thence South 36°44 '21" West a distance of 100. 00 feet to a point of curvature; Thence along the arc of a curve to the right having a central angle of 36°38 '27" , a radius of 1000 . 00 feet, an arc length of 639 .50 feet, and whose chord bears South 55°03 ' 34" West, 628.66 feet to a point of non-tangent curvature; Thence along the arc of a curve to the right having a central angle of 16°49 ' 58" , a radius of 2857 .50 feet, an arc length of 839.50 feet, and whose "chord bears South 55°51 ' 12" East, 836.49 feet to a point of non-tangency on the northerly right of way line of County Road 10; Thence South 89°43 ' 33" West along said northerly right of way parallel with and 30 . 00 feet northerly of the southerly line of said Section 10 a distance of 1768 .55 feet to a point on the easterly right of way line of County Road 7; Thence North 00°08 ' 27 " West along said easterly right of way line a distance of 2657 . 39 feet to a point; CVL CONSULTANTS, INC. 7901 E. Belleview Ave., Ste 150 Englewood, CO 80111 Tel. (720) 482-9526 FAX (720) 482-9546 OPN V F R • PH nPMT' • i aC VF(:4C cyL Civil Engineering Land Surveying Land Planning CONSULTANTS, INC. ERIE CORPORATE CENTER Thence North 00°08 ' 14" West continuing along said easterly right of way line a distance of 2606.88 feet to the POINT OF BEGINNING. Containing 186.000 acres, more or less . ?�Ppp.REWs/. \� �..Ak M0 ' 41�1 1 ' •�'-t M. Monhe'ser $:. :4-- For and On B=• alf "4 -' ` L, Consul -.j s J. � O °NALLO N:\PROJECTS\01802901\DWG\0180295GRVEY\LEGALs\DIST 2.DOC • CVL CONSULTANTS, INC. 7901 E. Belleview Ave., Ste 150 Englewood, CO 80111 Tel. (720) 482-9526 FAX (720) 432.9546 DENVER • Pl4 1FNTY . I AC t r:n n c CYL Civil Engineering Land Surveying Land Planning CONSULTANTS,INC. ERIE CORPORATE CENTER DESCRIPTION OF DISTRICT 3 "COMMERCIAL TAXING DISTRICT" A part of Section 10, Township 1 North, Range 68 West of the Sixth Principal Meridian, Town of Erie, County of Weld, State of Colorado, more particularly described as follows : COMMENCING at the Northwest corner of said Section 10; Thence North 89°45 ' 35" East along the northerly line of said Section 10 a distance of 30. 00 feet to a point; Thence South 00°08 ' 14" East parallel with and 30 .00 feet easterly of the westerly line of said Section 10 a distance of 30.00 feet to a point on the southerly right of way line of County Road 12; Thence North 89°45 ' 35" East continuing along said right of way line parallel with and 30 .00 feet southerly of the northerly line of - said Section 10 a. distance of 1530.00 feet to the POINT OF BEGINNING;Thence North 89°45 ' 35" East continuing along said right of way line a distance of 1097 .62 feet to a -point; Thence North 89°45 '48" East a distance of 2347 .37 feet to a point an the westerly line of CDOT Tract 205 as described at Reception Number 2776783 in the Weld County Clerk and Recorder's Office; Thence along said westerly line and the westerly line of Tract 203 and Tract 203A at said Reception Number the following four (4) courses; 1 . Thence South 00°23 ' 48" East a distance of 4022 .56 feet to a point; 2 . Thence South 05°16' 21" West a distance of 329 .72 feet to a point; 3 . Thence South 00°26 ' 18" East a distance of 70.09 feet to a point; 4. Thence South 85°43 ' 17" West a distance of 535.23 feet to a point on the northerly right of way line of County Road 10; Thence South 89°37 ' 55" West along said right of way line parallel with and 30 .00 feet northerly of the southerly line of the Southeast Quarter of said Section 10 a distance of 1819 .97 feet to a point; Thence South 89°43 ' 35" West continuing along said northerly right of way line parallel with and 30. 00 feet northerly of the southerly line of Southwest Quarter of said Section 10 a distance of 844 .10 feet to a point of non-tangent curvature; Thence along the arc of a curve to the left having a central angle of 16°49 ' 58• , a radius of 2857.50 feet, an arc length of 839 .49 feet, and whose chord bears North 55°51 ' 13 " West, 836.48 feet to a point of non-tangent curvature; Thence along the arc of a curve to the left having a central angle of 36°38 '27" , a radius of 1000.00 feet, an arc length of 639 .50 feet, and whose chord bears North 55°03 ' 34" -East, 628 . 66 feet to a point; Thence North 36°44 '21" East a distance of 100 . 00 feet to a point of curvature; CVL CONSULTANTS, INC. 7901 E. Belleview Ave., Ste 150 Englewood, CO 80111 Tel. (720) 482-9526 FAX (720) 482-9546 DENVER • PHOENIX • LAS VFf;AS Il l Grit Engineering Land Surveying Land Planning • CONSULTANTS,INC. ERIE CORPORATE CENTER Thence along the arc of a curve to the right having a central angle of 27°18 '58' , a radius of 180 .00 feet, an arc length of 85.82 feet, and whose chord bears North 50°23 '50" East, 85 .00 feet to a point; Thence North 64°03 ' 19" East a distance of 100 .00 feet to a point of curvature; Thence along the arc of a curve to the left having a central angle of 9°10'49" , a radius of 539 .32 feet, an arc length of 86.41 feet, and whose chord bears North 59°27 ' 55" East, 86 .32 feet to a point; Thence North 34°52 ' 38' West a distance of 592 .64 feet to a point of curvature; Thence along the arc of a curve to the right having a central angle of 34°44 ' 18" , a radius of 90.00 feet, an arc length of 54.57 feet, and whose chord bears North 17°30 ' 30• West, 53 .73 feet to a point; Thence North 00°08 ' 21" West a distance of 3673 .28 feet to the POINT OF BEGINNING. Containing 415 .357 acres, more or less. • Exception therefrom A parcel of land 235 feet in radius in the Southeast Quarter of said Section 10, Township 1 North, Range 68 West of the Sixth Principal Meridian, Town of Erie, County of Weld, State of Colorado, more particularly described as follows: COMMENCING at the Southeast corner of •said Section 10; Thence North 00°22 '56' West along the easterly line of said Section 10 a distance of 683 .29 feet to a point; Thence South 89°37' 04" West a distance of 676.70 feet to the center .point of said parcel . Containing 3 .983 acres, more or less. CONTAINING A TOTAL OF 411. 374 ACRES, MORE OR LESS. 4331° REG/8),21 i O�' • : .Mp�,'�., 16). - et M. Mo eiser P 628281 si of For and On =ehalf of consultant..- " Inc. 'fir •,o,-o -o2.:��: ftiy`p4;q7 LAN�S" N:\PROTECTS\01802901\DHG\018029stRVEY\LEGALS\DIST 3.DGC January 8, 2002 CVL CONSULTANTS, INC. 7901 E. Belleview Ave., Ste 150 Englewood, CO 80111 Tel. (720) 482-9526 FAX (720) 482.9546 DENVER • PHOENIX • LAS VF.rAS EXHIBIT F Financing P►an Erie Corporate Center Metropolitan Districts No.1, 2 and 3 Forecasted Statements Sources and Uses of Funds For the Years Ending December 31, 2003 through 2049 Erie Corporate Center Metropolitan Districts No. 1, 2 and 3 Erie, Colorado Summary of Significant Assumptions and Accounting Policies December 31, 2003 through 2049 The following forecast presents, to the best of the Petitioner's knowledge and belief, the expected cash receipts and disbursements for the forecast period. Accordingly, the forecast reflects the Petitioner's judgment as of November 6, 2003. The assumptions disclosed herein are those that the Petitioner believes are significant to the forecast. 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. The purpose of this forecast is to show the amount of funds available for construction of infrastructure within the Districts by the issuance of promissory notes to the Developer and the anticipated funds available for repayment of the promissory notes. The Petitioner anticipates the formation of three (3)Title 32 Special Districts. Note 1. Ad Valorem and Specific Ownership Taxes Residential property is currently assessed at approximately 7.96% of actual value. The market values of residential units within the District will range from $280,000 to $750,000 and will vary based upon the type of unit, development location and lot size. Market values are inflated at 4% per year commencing at full buildout of all units. Commercial property is currently assessed at 29% of actual value. The market value of commercial property within the District assumes a range of 21 to 24% coverage, at a value of $100 per square foot of building. • Property is assumed to be assessed annually as of January 1. Residences are assumed to be assessed on January 1 of the year following the year of construction. The forecast of property tax revenue recognizes the related revenue in the subsequent year. The Weld County Treasurer currently charges a 1.5% fee for the collection of property taxes on the assessed property and improvements. These charges are reflected in the accompanying forecasts as Treasurer's fees. The forecast assumes that Specific Ownership Taxes collected on motor vehicle registrations will be 5.0% of property taxes collected. The mill levy proposed to be imposed by the Districts is initially projected to be 39.6 mills on the residential units and 10.9 mills on the commercial property. This levy is used to pay construction financing debt service, general obligation debt service and operating expenses of the District Note 2. Interest Income Revenues received by the Districts are assumed to be invested, until expended, at a rate of 2.0%. Interest income earned is based on the beginning cash balance each year and includes an estimate of the timing of the receipt of other revenues and the disbursement of funds during the year. Note 3. Bond Issuance Assumptions Initially, District No. 1 proposes to issue its promissory notes based upon the need for construction, operating and debt service funds for the project. The Developer will advance funds to the District for these purposes in exchange for the District's promissory notes. The promissory notes will bear a variable interest rate, estimated at 8.5%. District No. 1 contemplates and proposes to issue revenue bonds to pay for public improvements, which will constitute special revenue obligations payable from all moneys collected from District Nos. 2 and 3 pursuant to a pledge agreement between the Districts. District Nos. 2 and 3 may issue issue general obligation bonds to refund any outstanding promissory notes of District No. 1 and to pay for public improvements. Based upon the • aforementioned assessment ratios, District No. 2's mill levy is projected to not exceed 40 mills and District No. 3's mill levy is not expected to exceed 11 mills to pay debt service obligations and operating expenses of the District. The general obligation bonds will be issued in denominations of $5,000 or multiples thereof and will bear an estimated interest rate of 6.0%. Note 4. Operating Expenses Operating expenses for legal, accounting, audit and management are forecast to be $36,000 per year. Operating expenses are inflated at a constant rate of 4.0% per year over the life of the forecast. Note 5. Construction Costs Construction costs of infrastructure are estimated to be $18,011,582. ERIE CORPORATE METROPOLITAN DISTRICT SOURCE AND APPLICATION OF FUNDS TOTAL 2003 2004 2005 2006 2007 2008 2009 SOURCES: Beginning cash - 8,300 5,013 47,294 49,257 48,117 38,383 Property tax revenue- residential 18,215,155 - 104,572 214,972 Property tax revenue-commercial 46,135,769 - - Specific ownership taxes 3,217,546 - - - 5,229 10,749 Reimbursements - transportation fees 400,000 100,000 100,000 100,000 • 100,000 Developer financing 21,250,000 80,000 35,000 3,450,000 925,000 5,725,000 2,275,000 1,085,000 General obligation bonds 26,250,000 - Interest income 110,528 - - 100 946 985 962 768 115,578,999 80,000 43,300 3,455,113 1,073,240 5,875,242 2,533,880 1,449,871 APPLICATION: Infrastructure construction 18,011,583 - - 3,201,419 645,645 5,164,723 1,489,950 248,325 Interest-developer financing 11,069,975 1,700 8,288 156,400 342,338 624,963 964,963 1,107,763 Principal -developer financing 21,250,000 Issuance costs 787,500 - Interest-general obligation bonds 32,830,800 Principal-general obligation bonds 26,250,000 Treasurer's fees 1,013,527 - - - - - 1,647 3,386 Formation and operating costs 4,304,864 70,000 30,000 50,000 36,000 37,440 38,938 40,495 Contingency 10,750 - - - - - - - 115,528,999 71,700 38,288 3,407,819 1,023,983 5,827,126 2,495,497 1,399,968 ENDING CASH 50,000 8,300 5,013 47,294 49,257 48,117 38,383 49,903 MILL LEVY - RESIDENTIAL 39.6 39.6 MILL LEVY- COMMERCIAL 10.9 10.9 2010 2011 2012 2013 2014 2015 2016 SOURCES: Beginning cash 49,903 44,272 2,432,898 861,160 42,956 134,008 58,783 Property tax revenue- residential 325,371 421,068 443,149 456,444 470,137 484,241 498,768 Property tax revenue -commercial 139,948 301,959 515,727 662,915 847,447 1,012,819 1,133,758 Specific ownership taxes 23,266 36,151 47,944 55,968 65,879 74,853 81,626 Reimbursements-transportation fees Developer financing 7,675,000 - - - General obligation bonds - 7,000,000 19,250,000 Interest income 998 885 48,658 17,223 859 2,680 1,176 8,214,486 7,804,336 3,488,376 2,053,709 20,677,278 1,708,600 1,774,111 APPLICATION: Infrastructure construction 6,640,708 - 620,813 - - Interest-developer financing 1,480,063 1,806,250 1,525,750 1,525,750 1,525,750 Principal -developer financing - 3,300,000 17,950,000 Issuance costs - 210,000 - - 577,500 Interest-general obligation bonds - 420,000 420,000 420,000 1,575,000 1,575,000 Principal-general obligation bonds - - - - - 70,000 Treasurer's fees 7,329 11,388 15,102 17,630 20,752 23,579 25,712 Formation and operating costs 42,115 43,800 45,551 47,374 49,268 51,239 53,289 Contingency - - - - - - - 8,170,214 5,371,437 2,627,217 2,010,753 20,543,270 1,649,818 1,724,001 ENDING CASH 44,272 2,432,898 861,160 42,956 134,008 58,783 50,110 MILL LEVY -RESIDENTIAL 39.6 39.6 39.6 39.6 39.6 39.6 39.6 MILL LEVY - COMMERCIAL 10.9 10.9 10.9 10.9 10.9 10.9 10.9 2017 2018 2019 2020 2021 2022 2023 SOURCES: Beginning cash 50,110 50,212 51,930 56,059 58,218 . 54,453 52,454 Property tax revenue -residential 513,731 529,143 545,018 561,368 578,209 595,555 613,887 Property tax revenue-commercial 1,299,487 1,379,632 1,482,763 1,486,085 1,530,667 1,576,587 1,625,116 Specific ownership taxes 90,661 95,439 101,389 102,373 105,444 108,607 111,950 Reimbursements- transportation fees Developer financing General obligation bonds Interest income 1,002 1,004 1,039 1,121 1,164 1,089 1,049 • 1,954,991 2,055,431 2,182,139 2,207,005 2,273,702 2,336,292 2,404,456 APPLICATION: Infrastructure construction Interest-developer financing Principal-developer financing Issuance costs Interest-general obligation bonds 1,570,800 1,555,800 1,534,200 1,504,200 1,471,200 1,432,200 1,387,200 Principal -general obligation bonds 250,000 360,000 500,000 550,000 650,000 750,000 860,000 Treasurer's fees 28,558 30,063 31,938 32,247 33,215 34,211 35,264 Formation and operating costs 55,420 57,637 59,943 62,340 64,834 67,427 70,124 Contingency - - - - - - - 1,904,779 2,003,500 2,126,080 2,148,788 2,219,249 2,283,839 2,352,589 ENDING CASH 50,212 51,930 56,059 58,218 54,453 52,454 51,868 MILL LEVY - RESIDENTIAL 39.6 39.6 39.6 39.6 39.6 39.6 39.6 MILL LEVY -COMMERCIAL 10.9 10.9 10.9 10.9 10.9 10.9 10.9 2024 2025 2026 2027 2028 2029 2030 SOURCES: Beginning cash 51,868 53,397 48,976 50,043 52,050 50,120 52,995 Property tax revenue- residential 622,723 583,843 572,561 560,076 546,328 534,952 520,495 Property tax revenue-commercial 1,648,508 1,545,582 1,515,715 1,482,665 1,446,269 1,416,154 1,377,883 Specific ownership taxes 113,562 106,471 104,414 102,137 99,630 97,555 94,919 Reimbursements-transportation fees Developer financing General obligation bonds Interest income 1,037 1,068 980 1,001 1,041 1,002 1,060 2,437,698 2,290,361 2,242,645 2,195,922 2,145,316 2,099,783 2,047,353 APPLICATION: Infrastructure construction Interest-developer financing Principal -developer financing Issuance costs Interest-general obligation bonds 1,335,600 1,279,200 1,228,032 1,176,864 1,125,696 1,074,528 1,023,360 Principal-general obligation bonds 940,000 852,800 852,800 852,800 852,800 852,800 852,800 Treasurer's fees 35,772 33,538 32,890 32,173 31,383 30,730 29,899 Formation and operating costs 72,929 75,847 78,880 82,036 85,317 88,730 92,279 Contingency - - - - - - - 2,384,301 2,241,385 2,192,603 2,143,873 2,095,196 2,046,788 1,998,338 ENDING CASH 53,397 48,976 50,043 52,050 50,120 52,995 49,014 MILL LEVY - RESIDENTIAL 39.0 35.5 33.8 32.1 30.4 28.9 27.3 MILL LEVY -COMMERCIAL 10.7 9.7 9.3 8.8 8.3 7.9 7.5 2031 2032 2033 2034 2035 2036 2037 SOURCES: Beginning cash 49,014 51,143 49,711 48,312 51,140 . 53,904 52,009 Property tax revenue -residential 465,414 453,082 441,674 431,319 419,946 407,503 396,279 Property tax revenue -commercial 1,393,044 1,356,131 1,321,986 1,290,994 1,256,953 1,219,707 1,186,114 Specific ownership taxes 92,923 90,461 88,183 86,116 83,845 , 81,360 79,120 Reimbursements -transportation fees Developer financing General obligation bonds Interest income 980 1,023 994 966 1,023 1,078 1,040 2,001,375 1,951,839 1,902,547 1,857,708 1,812,907 1,763,552 1,714,563 APPLICATION: Infrastructure construction Interest-developer financing Principal -developer financing Issuance costs Interest-general obligation bonds 972,192 921,024 869,856 818,688 767,520 716,352 665,184 Principal -general obligation bonds 852,800 852,800 852,800 852,800 852,800 852,800 852,800 Treasurer's fees 29,271 28,495 27,778 27,126 26,411 25,629 24,923 Formation and operating costs 95,970 99,809 103,801 107,953 112,271 116,762 121,433 Contingency - - - - - - - 1,950,233 1,902,128 1,854,235 1,806,568 1,759,003 1,711,543 1,664,339 ENDING CASH 51,143 49,711 48,312 51,140 53,904 52,009 50,223 MILL LEVY - RESIDENTIAL 23.7 22.4 21.2 20.1 19.0 17.9 16.9 MILL LEVY-COMMERCIAL 7.4 7.0 6.6 6.2 5.9 5.6 5.2 2038 2039 2040 2041 2042 2043 2044 SOURCES: Beginning cash 50,223 54,039 49,188 51,731 47,013 . 52,591 53,468 Property tax revenue - residential 386,431 373,147 363,843 351,006 342,508 330,385 320,109 Property tax revenue -commercial 1,156,637 1,116,877 1,089,030 1,050,607 1,025,171 988,884 958,128 Specific ownership taxes 77,153 74,501 72,644 70,081 68,384 65,963 63,912 Reimbursements-transportation fees Developer financing General obligation bonds Interest income 1,004 1,081 984 1,035 940 1,052 1,069 1,671,449 1,619,646 1,575,689 1,524,460 1,484,017 1,438,874 1,396,686 APPLICATION: Infrastructure construction Interest-developer financing Principal -developer financing Issuance costs Interest-general obligation bonds 614,016 562,848 511,680 460,512 409,344 358,176 307,008 Principal-general obligation bonds 852,800 852,800 852,800 852,800 852,800 852,800 852,800 Treasurer's fees 24,303 23,468 22,883 22,075 21,541 20,778 20,132 Formation and operating costs 126,290 131,342 136,595 142,059 147,742 153,651 159,797 Contingency - - - - - 1,617,409 1,570,458 1,523,958 1,477,447 1,431,427 1,385,406 1,339,738 ENDING CASH 54,039 49,188 51,731 47,013 52,591 53,468 56,949 MILL LEVY -RESIDENTIAL 16.0 15.0 14.2 13.3 12.6 11.8 11.1 MILL LEVY -COMMERCIAL 5.0 4.7 4.4 4.1 3.9 3.7 3.4 2045 2046 2047 2048 2049 SOURCES: Beginning cash 56,949 46,797 55,691 55,065 . 53,504 Property tax revenue- residential 305,949 299,830 286,766 275,894 267,455 Property tax revenue -commercial 915,746 897,431 858,328 825,787 800,528 Specific ownership taxes 61,085 59,863 57,255 55,084 53,399 Reimbursements -transportation fees Developer financing General obligation bonds Interest income 1,139 936 1,114 1,101 1,070 1,340,868 1,304,857 1,259,154 1,212,932 1,175,957 'APPLICATION: Infrastructure construction Interest-developer financing Principal -developer financing Issuance costs Interest- general obligation bonds 255,840 204,672 153,504 102,336 51,168 Principal -general obligation bonds 852,800 852,800 852,800 852,800 852,800 Treasurer's fees 19,242 18,857 18,035 17,351 16,821 Formation and operating costs 166,189 172,837 179,750 186,940 194,418 Contingency - - - - 10,750 1,294,071 1,249,166 1,204,089 1,159,428 1,125,957 ENDING CASH 46,797 55,691 55,065 53,504 50,000 MILL LEVY - RESIDENTIAL 10.3 9.8 9.1 8.5 8.0 MILL LEVY -COMMERCIAL 3.2 3.0 2.8 2.6 2.5 ERIE CORPORATE METROPOLITAN DISTRICT FINANCING AND VALUATION 2003 2004 2005 2006 2007 2008 2009 DEVELOPER FINANCING: Beginning balance 80,000 115,000 3,565,000 4,490,000 10,215,000 12,490,000 Draws 80,000 35,000 3,450,000 925,000 5,725,000 2,275,000 1,085,000 Repayments - - - - - - - Ending balance 80,000 115,000 3,565,000 4,490,000 10,215,000 12,490,000 13,575,000 GENERAL OBLIGATION BONDS: Beginning balance - - - - - - Proceeds - - - - - - - Repayments - - - - - - - Ending balance - - - - - - - ASSESSED VALUATION -RESIDENTIAL: . Beginning valuation - - - 2,642,720 5,432,700 "' Increase from inflation - Increase from building 2,642,720 2,789,980 2,789,980 Ending valuation • 2,642,720 5,432,700 8,222,680 ASSESSED VALUATION - COMMERCIAL: Beginning valuation - - - Increase from inflation Increase from building - - 12,885,048 Ending valuation - - 12,885,048 DEBT TO ASSESSED RATIO: Outstanding G.O. debt % Debt to assessed 2010 2011 2012 2013 2014 2015 2016 DEVELOPER FINANCING: Beginning balance 13,575,000 21,250,000 17,950,000 17,950,000 17,950,000 - - Draws 7,675,000 - - - - - - Repayments - (3,300,000) - - (17,950,000) - - Ending balance 21,250,000 17,950,000 17,950,000 17,950,000 - - - GENERAL OBLIGATION BONDS: Beginning balance - - 7,000,000 7,000,000 7,000,000 26,250,000 26,250,000 Proceeds - 7,000,000 - - 19,250,000 - - Repayments - - - - - - (70,000) Ending balance - 7,000,000 7,000,000 7,000,000 26,250,000 26,250,000 26,180,000 ASSESSED VALUATION: Beginning valuation 8,222,680 10,641,087 11,199,120 11,535,093 11,881,146 12,237,581 12,604,708 Increase from inflation 328,907 319,233 335,974 346,053 356,434 367,127 378,141 Increase from building 2,089,500 238,800 - - - - - Ending valuation 10,641,087 11,199,120 11,535,093 11,881,146 12,237,581 12,604,708 12,982,849 ASSESSED VALUATION -COMMERCIAL: Beginning valuation 12,885,048 27,801,386 47,483,069 61,034,665 78,024,585 93,250,371 104,385,266 Increase from inflation 515,402 1,112,055 1,424,492 1,831,040 2,340,738 2,797,511 3,131,558 Increase from building 14,400,936 18,569,628 12,127,104 15,158,880 12,885,048 8,337,384 12,127,104 Ending valuation 27,801,386 47,483,069 61,034,665 78,024,585 93,250,371 104,385,266 119,643,928 DEBT TO ASSESSED RATIO: Outstanding G.O. debt 7,000,000 7,000,000 7,000,000 7,000,000 26,250,000 26,250,000 % Debt to assessed 11.93% 9.65% 7.79% 6.64% 22.44% 19.79% 2017 2018 2019 2020 2021 2022 2023 DEVELOPER FINANCING: Beginning balance - - - - - - - Draws - - - - - - - Repayments - - - - - - - Ending balance - - - - - - - GENERAL OBLIGATION BONDS: Beginning balance 26,180,000 25,930,000 25,570,000 25,070,000 24,520,000 23,870,000 23,120,000 Proceeds - - - - - - - Repayments (250,000) (360,000) (500,000) (550,000) (650,000) (750,000) (860,000) Ending balance 25,930,000 25,570,000 25,070,000 24,520,000 23,870,000 23,120,000 22,260,000 ASSESSED VALUATION: Beginning valuation 12,982,849 13,372,335 13,773,505 14,186,710 14,612,311 15,050,681 15,502,201 Increase from inflation 389,485 401,170 413,205 425,601 438,369 451,520 465,066 Increase from building - Ending valuation , 13,372,335 13,773,505 14,186,710 14,612,311 15,050,681 15,502,201 15,967,267 ASSESSED VALUATION -COMMERCIAL: Beginning valuation 119,643,928 127,022,966 . 136,518,235 136,824,062 140,928,784 145,156,647 149,511,347 Increase from inflation 3,589,318 3,810,689 4,095,547 4,104,722 4,227,864 4,354,699 4,485,340 Increase from building 3,789,720 5,684,580 (3,789,720) - Ending valuation 127,022,966 136,518,235 136,824,062 140,928,784 145,156,647 149,511,347 153,996,687 DEBT TO ASSESSED RATIO: Outstanding G.O. debt 26,180,000 25,930,000 25,570,000 25,070,000 24,520,000 23,870,000 23,120,000 % Debt to assessed 18.65% 17.25% 16.93% 16.12% 15.31% 14.47% 13.60% 2024 2025 2026 2027 2028 2029 2030 DEVELOPER FINANCING: Beginning balance - - - - - - - Draws - - - - - - - Repayments - - - - - - - Ending balance - - GENERAL OBLIGATION BONDS: Beginning balance 22,260,000 21,320,000 20,467,200 19,614,400 18,761,600 17,908,800 17,056,000 Proceeds Repayments (940,000) (852,800) (852,800) (852,800) (852,800) (852,800) (852,800) Ending balance 21,320,000 20,467,200 19,614,400 18,761,600 17,908,800 17,056,000 16,203,200 ASSESSED VALUATION: Beginning valuation 15,967,267 16,446,285 16,939,674 17,447,864 17,971,300 18,510,439 19,065,752 Increase from inflation 479,018 493,389 508,190 523,436 539,139 555,313 571,973 Increase from building Ending valuation 16,446,285 16,939,674 17,447,864 17,971,300 18,510,439 19,065,752 19,637,724 ASSESSED VALUATION -COMMERCIAL: Beginning valuation 153,996,687 158,616,588 163,375,085 168,276,338 173,324,628 178,524,367 183,880,098 Increase from inflation 4,619,901 4,758,498 4,901,253 5,048,290 5,199,739 5,355,731 5,516,403 Increase from building Ending valuation 158,616,588 163,375,085 168,276,338 173,324,628 178,524,367 183,880,098 189,396,501 DEBT TO ASSESSED RATIO: Outstanding G.O. debt 22,260,000 21,320,000 20,467,200 19,614,400 18,761,600 17,908,800 17,056,000 % Debt to assessed 12.72% 11.82% 11.02% 10.25% 9.52% 8.82% 8.16% 2031 2032 2033 2034 2035 2036 2037 DEVELOPER FINANCING: Beginning balance - - - - - - - Draws - - - - - - - Repayments - - - - - - - Ending balance - - - - - - GENERAL OBLIGATION BONDS: Beginning balance 16,203,200 15,350,400 14,497,600 13,644,800 12,792,000 11,939,200 11,086,400 Proceeds - - - - - - - Repayments (852,800) (852,800) (852,800) (852,800) (852,800) (852,800) (852,800) Ending balance 15,350,400 14,497,600 13,644,800 12,792,000 11,939,200 11,086,400 10,233,600 ASSESSED VALUATION: Beginning valuation 19,637,724 20,226,856 20,833,662 21,458,672 22,102,432 22,765,505 23,448,470 Increase from inflation 589,132 606,806 625,010 643,760 663,073 682,965 703,454 Increase from building Ending valuation 20,226,856 20,833,662 21,458,672 22,102,432 22,765,505 23,448,470 24,151,924 ASSESSED VALUATION -COMMERCIAL: Beginning valuation 189,396,501 195,078,396 200,930,748 206,958,670 213,167,430 219,562,453 226,149,327 Increase from inflation 5,681,895 5,852,352 6,027,922 6,208,760 6,395,023 6,586,874 6,784,480 Increase from building Ending valuation 195,078,396 200,930,748 206,958,670 213,167,430 219,562,453 226,149,327 232,933,807 DEBT TO ASSESSED RATIO: Outstanding G.O. debt 16,203,200 15,350,400 14,497,600 13,644,800 12,792,000 11,939,200 11,086,400 % Debt to assessed 7.53% 6.92% 6.35% 5.80% 5.28% 4.78% 4.31% 2038 2039 2040 2041 2042 2043 2044 DEVELOPER FINANCING: Beginning balance - - - _ - - - Draws - - - - Repayments - - - - - - - Ending balance - - - _ _ - - GENERAL OBLIGATION BONDS: Beginning balance 10,233,600 9,380,800 8,528,000 7,675,200 6,822,400 5,969,600 5,116,800 Proceeds Repayments (852,800) (852,800) (852,800) (852,800) (852,800) (852,800) (852,800) Ending balance 9,380,800 8,528,000 7,675,200 6,822,400 5,969,600 5,116,800 4,264,000 ASSESSED VALUATION: Beginning valuation 24,151,924 24,876,482 25,622,776 26,391,459 27,183,203 27,998,699 28,838,660 Increase from inflation 724,558 746,294 768,683 791,744 815,496 839,961 865,160 Increase from building Ending valuation 24,876,482 25,622,776 26,391,459 27,183,203 27,998,699 28,838,660 29,703,820 ASSESSED VALUATION -COMMERCIAL: Beginning valuation 232,933,807 239,921,821 247,119,475 254,533,060 262,169,051 270,034,123 278,135,147 Increase from inflation 6,988,014 7,197,655 7,413,584 7,635,992 7,865,072 8,101,024 8,344,054 Increase from building Ending valuation 239,921,821 247,119,475 254,533,060 262,169,051 270,034,123 278,135,147 286,479,201 DEBT TO ASSESSED RATIO: Outstanding G.O. debt 10,233,600 9,380,800 8,528,000 7,675,200 6,822,400 5,969,600 5,116,800 % Debt to assessed 3.86% 3.44% 3.04% 2.65% 2.29% 1.94% 1.62% 2045 2046 2047 2048 2049 DEVELOPER FINANCING: Beginning balance - - - - - Draws - - - - - Repayments - - - - - Ending balance - - - - - GENERAL OBLIGATION BONDS: Beginning balance 4,264,000 3,411,200 2,558,400 1,705,600 852,800 Proceeds - - - - Repayments (852,800) (852,800) (852,800) (852,800) (852,800) Ending balance 3,411,200 2,558,400 1,705,600 852,800 - ASSESSED VALUATION: Beginning valuation 29,703,820 30,594,935 31,512,783 32,458,166 33,431,911 Increase from inflation 891,115 917,848 945,383 973,745 1,002,957 Increase from building Ending valuation 30,594,935 31,512,783 32,458,166 33,431,911 34,434,869 ASSESSED VALUATION -COMMERCIAL: Beginning valuation 286,479,201 295,073,577 303,925,784 313,043,558 322,434,865 Increase from inflation 8,594,376 8,852,207 9,117,774 9,391,307 9,673,046 Increase from building Ending valuation 295,073,577 • 303,925,784 313,043,558 322,434,865 332,107,911 DEBT TO ASSESSED RATIO: Outstanding G.O. debt 4,264,000 3,411,200 2,558,400 1,705,600 852,800 % Debt to assessed 1.31% 1.02% 0.74% 0.48% 0.23% EXHIBIT G Erie Resolution of Approval • 0Th Or,Y•3mSC RESOLUTION NO. 04- 11 S plat, 30,-2 G .20°14 RESOLUTION OF THE TOWN OF ERIE RELATING TO THE APPROVAL OF THE CONSOLIDATED SERVICE PLAN FOR ERIE CORPORATE CENTER METROPOLITAN DISTRICT NOS. 1,2 AND 3 WHEREAS, a Consolidated Service Plan ("Service Plan") for the creation of the Erie Corporate Center Metropolitan District Nos. 1, 2 and 3 (the "Districts"), whose boundaries are wholly within the corporate limits of the Town of Erie (the"Town"), was filed in the office of the Town Clerk; and WHEREAS,pursuant to the Special District Control Act,Part 2 of Article 1,Title 32,C.R.S. (the "statute"), the Board of Trustees is the approving authority to review any Service Plan with reference to need, service and economic feasibility; and WHEREAS,the statute requires that any service plan submitted to a district court for the creation of a special district must first be approved by resolution of the governing body of the municipality within which the proposed special district lies; and WHEREAS,the Town's Board of Trustees has reviewed the Service Plan,the evidence and related exhibits and has determined that the same meets the conditions necessary under the statute for approval, and therefore, has determined to conduct a public hearing on the matter,which has been properly noticed, and adopt a resolution of approval of the Service Plan for the Districts, subject to the conditions set forth herein. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF ERIE, COLORADO,AS FOLLOWS: Section 1. Upon consideration of the Service Plan for the Districts and all the facts appearing at the public hearing on the Service Plan,the Board of Trustees does find, determine and declare as follows: A. That there is sufficient existing and projected need for the organized service in the area to be served by the proposed Districts; and B. That the existing service in the area to be served by the proposed Districts is inadequate for present and projected needs; and C. That the proposed Districts are capable of providing economical and sufficient service to the area within the proposed boundaries,or service area,or both; and D. That the area to be included in the proposed Districts has,or will have, the financial ability to discharge the proposed indebtedness on a reasonable basis;and 1 - r E. That adequate service is not, and will not be, available to the area through Weld County, the Town or other existing municipal or quasi-municipal corporations, including existing special districts,within a reasonable time and on a comparable basis; and F. That the facility and service standards of the proposed Districts are compatible with the facility and service standards of the Town within which the proposed Districts are to be located and each municipality which is an interested party under Section 32-1-204(1), C.R.S.; and G. That the proposal is in substantial compliance with a master plan adopted pursuant to Section 30-28-106, C.R.S.; and H. That the proposal is in compliance with any duly adopted Town, county,regional,or state long-range water quality management plan for the area;and I. That the creation of the proposed Districts is in the best interests of the area proposed to be served. Section 2. The Service Plan for the Districts shall be and the same is hereby approved. The terms, provisions and limitations of the Service Plan shall be incorporated in an Intergovernmental Agreement between the Districts and the Town,and the Districts shall not borrow money,incur any indebtedness,certify any mill levy or impose any fees until the Town approves the Master IGA between the Districts, which approval shall not be unreasonably withheld, and until the Town approves the Town IGA with the Districts,which approval shall not be unreasonably withheld. Section 3. The Town's approval of the Service Plan is not a waiver of nor a limitation upon any power that the Town is legally permitted to exercise with respect to the property subject to the proposed Districts. RESOLUTION ADOPTED AND APPROVED THIS 10th DAY OF FEBRUARY,2004. TOWN OF ERIE, a Colorado municipal corporation By:_bAk.b9AA_ Cilorkje.4 Barbara Connors, Mayor A11hS eresa G. Andrews, Town Clerk ECORPCNIRMD\SPLW 1KS A 1100012704 0634.0003 R.0007 2 Hello