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HomeMy WebLinkAbout20030838.tiff 1NIT- D POWER UNITED POWER, INC. P.O. Box 929, Brighton, CO 80601 • Telephone: 303-659-0551 • 1-800-468-8809 Fax: 303-659-2172 • http://www.unitedpower.com v'VCIa Co!: r "^.nt ri. `2 2092 MEMORANDUM October 1, 2002 To: WELD COUNTY UTILITY BOARD, c/o Donita May, Secretary From: Al Trujillo, Senior Right Of Way Specialist REFERRAL NOTICE(S) Milli II I I I 1 I I I I I I I PLANNER CASE NO. PROJECT I I I I I I I I I I I I I I I I I J I 1 I I MONICA DANIELS-MIKA PF-1021 BEEBE DRAW FARMS AND EQUESTRIAN CENTER FLG.2 I I I I I I I I 1 J_ - I NON-EXCLUSIVE I I I UTILITY I 1 I I I 1 RESPONSE/RECOMMENDATIONS: NON-EXCLUSIVE UTILITY EASEMENTS I I I I I I I I I I I I 1 I I I I I I I I I I I I 1. 5 FT WIDE: A. SIDE LOT EASEMENTS 2. 8 FT WIDE: A. FRONT LOT EASEMENTS B. REAR LOT EASEMENTS C. AROUND PERIMETERS OF OUTLOTS & TRACTS Please let me know if I can be of further assistance on this matter and thanks again you for your help. I can be reached at 303-637-1241. r Your Touchstone Energy® Partner 4; 2003-0838 Orn- CONSOLIDATED SERVICE PLAN FOR BEEBE DRAW FARMS METROPOLITAN DISTRICT NO. 1 AND BEEBE DRAW FARMS METROPOLITAN DISTRICT NO. 2 May 1999 EXHIBIT CONSOLIDATED SERVICE PLAN FOR BEEBE DRAW FARMS METROPOLITAN DISTRICT No. 1 AND BEEBE DRAW FARMS METROPOLITAN DISTRICT No. 2 May 1999 BIIMI)W.rv-pin Table of Contents I. INTRODUCTION 1 A. Summary 1 1. Dual Districts Structure 6 2 . Benefits of Dual District Structure 7 3 . Configuration of Districts 9 4. Long-Term District Plan 11 5. Existing Services and Districts 11 B. General Information and Assumptions 12 C. Contents of Service Plan 15 D. Modification of Service Plan 16 II. NEED FOR NEW DISTRICT AND GENERAL POWERS 16 A. Need for New District 16 B. General Powers of Districts 17 1. Streets and Drainage 17 2 . Traffic and Safety Controls 18 3 . Parks and Recreation 18 4. Water 19 5 . Miscellaneous Authorities 19 6. Other Services 19 7 . Legal Powers 19 8. Other 20 III. DESCRIPTION OF FACILITIES AND IMPROVEMENTS 21 A. General 22 B. General Design Standards 23 1. Street System and Traffic Safety 23 2 . Storm Drainage 24 3 . Water System 25 4. Transit System 26 5. Park and Recreation 26 C. Estimated Costs of Facilities 27 IV. DEVELOPMENT PROJECTIONS 27 V. PROPOSED AND EXISTING AGREEMENTS 27 A. District Intergovernmental Agreement 27 /"-. B. Water Service Agreement 29 i C. County Agreement 30 D. Developer Fee Agreement 30 E. FRICO Agreement 31 F. Other Agreements/Authority 31 VI. OPERATION AND ADMINISTRATION COSTS 32 VII. FINANCIAL PLAN 33 VIII. OTHER REQUIREMENTS 39 IX. CONCLUSIONS 40 EXHIBIT A FIGURE 1 - MAP OF DISTRICT No. 1 FIGURE 2 - MAP OF DISTRICT No. 2 FIGURE 3 - LEGAL DESCRIPTION OF DISTRICT No. 1 FIGURE 4 - LEGAL DESCRIPTION OF DISTRICT NO. 2 FIGURE 5 - VICINITY MAP EXHIBIT B TABLE 1 - SUMMARY OF CAPITAL EXPENSES TABLE 2 - PRELIMINARY ENGINEERING SURVEY EXHIBIT C TABLE 1 - BUILD-OUT SCHEDULE TABLE 2 - ASSESSED VALUATION EXHIBIT D WATER SERVICE AGREEMENT EXHIBIT E DEVELOPER FEE AGREEMENT EXHIBIT F FINANCING PLAN EXHIBIT G DEBT AMORTIZATION SCHEDULE EXHIBIT H 1997 FINANCIAL STATEMENTS 11 I. INTRODUCTION A. Summary The Beebe Draw Farms Metropolitan District ( "District" ) , a special district located in Weld County, Colorado, was established by order of the District Court entered on August 20, 1986 recorded in the County records at Reception No . 02065838 on August 20 , 1986, following the County' s approval of the District Service Plan on May 14, 1986 and the District electors ' approval at an organizational election held on August 19 , 1986, pursuant to the provisions of Article 1 of Title 32 , C.R. S . ( "District Act" ) . The District was organized to provide various services and facilities, including water, streets, drainage, safety protection, parks and recreation, television transmission and relay, transportation, and mosquito control as set forth in the District Service Plan, to the Beebe Draw Farms and Equestrian Center ( "Development" ) , which is now planned for approximately 724 single-family residences with a projected population of 1, 860 permanent residents as more fully described in the P.U.D. Master Plan ( "Master Plan" ) recorded in the County records at Reception No . R-1992773 on December 21, 1984 . The Development is six miles east of Platteville adjoining Milton Reservoir, a Farmers Reservoir and Irrigation Company ( "FRICO" ) water facility encompassing 800 surface acres . Development activity has only recently been commenced because of previously adverse market conditions and financial difficulties experienced by the original developer. During the intervening years, the District has been operational and has taken actions in anticipation of development, including acquiring real property and other interests in property necessary to provide services and facilities, entering into agreements with FRICO for the recreational use of Milton Reservoir, completing environmental impact studies required by the federal government, purchasing water and installing a water distribution system in accordance with an intergovernmental agreement with the Central Weld County Water District ( "Water District" ) , improving equestrian and other recreational facilities on Milton Reservoir, and performing planning and engineering for other District infrastructure projects, including streets, drainage, and gatehouse and administration building. The District has also made arrangements with the County for offsite road improvements, safety protection services , and coordination of other Development activities . The District has partially implemented the financing plan for the initial public facilities authorized under the District Service Plan by issuing its General Obligation Bonds , Series 1998 ( "1998 Bonds" ) in the principal amount of $2 , 000 , 000 . In general, the District has been administered to fully implement the District Service Plan at such time as actual development commences . Ownership of the Development has been transferred to REI Limited Liability Company ( "Company" ) , a Wyoming limited liability company doing business in Colorado as Pelican Lake Ranch and Investors Limited Liability Company. The Company began marketing lot sales in Filing No . 1 in November 1998 . Building activity started on the first homes in the Development in February 1999, and the first residents should be living within the District by August 1999 . Following notice to the County, the District commenced the construction phase of completing District facilities for the Development in September 1998, when contracts were awarded for 2 road and drainage work and water improvements . The initial phase of District construction activity will provide various central facilities , including the entrance to the Development and gatehouse, Beebe Draw Farms Parkway, water transmission and distribution mains, and road, drainage and water improvements for the first phase of development in Filing No. 1 . To accord with current market conditions, the Company has changed its development plan to reflect a more conservative schedule of build-out within the Development . Rather than financing and constructing all public facilities and improvements needed for the Development immediately as anticipated in the District Service Plan, the District now anticipates completing the District facilities in phases paralleling actual building activity, thus providing more efficient and economic services with the District. In order to effect the phased completion of District facilities in an orderly and predictable manner and to revise the financial plan under the District Service Plan to be consistent with current capital needs and market realities, the institutional structure of the District itself must be modified. The powers of the District will not, however, be materially changed. The District submits this Consolidated Service Plan ( "Service Plan" ) pursuant to the District Act to effectuate material modifications to the District Service Plan, including the organization of a new overlapping metropolitan district and changes in the responsibilities of the District for the more efficient administration of services and facilities needed to serve the Development . A description of the public improvements and services to be furnished by the Districts, a preliminary engineering survey, a consolidated financial plan, a summary of proposed intergovernmental agreements, and other information 3 required under the District Act are included in this Service Plan. The implementation of the financial concepts set forth in this Service Plan will require significant commitments by the Company and other developers of the Development . These commitments have been partially satisfied by the execution of the Developer Fee and Water Tap Fee Agreement dated as of December 8 , 1998 ( "Developer Fee Agreement" ) to raise revenue for the funding of public facilities and improvements needed within the Development . The District is, or will be constructing various central facilities and improvements funded by the 1998 Bonds to serve all property within the District. Public facilities and improvements to serve subsequent phases/filings in the Development will be funded by fees paid by developers pursuant to the Developer Fee Agreement and other available funds of the Districts, including without limitation revenue notes or bonds . This Service Plan demonstrates that the Districts will be capable of providing economical and sufficient services to the property within their boundaries . This Service Plan is submitted in accordance with Part 2 of the District Act. As explained herein, the existing District will function as the taxing district primarily responsible for raising revenue to pay the operating, capital, and debt service expenses of the Districts and will be renamed "Beebe Draw Farms Metropolitan District No . 1" ( "District No . 1" ) . A new overlapping metropolitan district will also be organized to function as the service district and will be named "Beebe Draw Farms Metropolitan District No . 2" ( "District No . 2 " ) . District No . 2 will be responsible for administering and operating both Districts , furnishing all District services, acquiring and installing all public facilities and improvements 4 needed to serve the Development, and providing intermediate financing for future District projects, as necessary. Any reference herein to the "District" shall mean the existing District, or District No . 1 or District No. 2 , if appropriate; any reference to the "Districts" shall mean both District No. 1 and District No. 2 . The Districts shall have all powers and authorities set forth in the District Act and in this Service Plan. This Service Plan defines the respective responsibilities and authorities of, as well as the limitations and restrictions on, the Districts . The Districts shall cooperate to implement this Service Plan and to discharge their responsibilities to furnish services and facilities needed for the Development. The failure by either District to perform its responsibilities hereunder shall constitute a material modification pursuant to Section 32-1-207 , C.R. S. , for which the prior approval of the County shall be required. The use and implementation of a consolidated service plan will simplify the dual structure of the Districts, provide for greater coordination of the responsibilities and authorities of the Districts, and avoid confusion regarding the separate but coordinated purposes of the Districts , which might arise if separate service plans were used. Unless otherwise specified herein, general provisions of this Service Plan apply to each District . Where appropriate, specific responsibilities and limitations will be noted for each District . All exhibits, maps and tables referred to herein are included at the end of this Service Plan. Any reference to this Service Plan shall also apply to any amendment, change or modification of this Service Plan approved in compliance with the District Act, if required, or by written agreement between the Districts, or by the County. 5 1 . Dual Districts Structure . District No. 1 will be responsible for levying property taxes and raising other revenue needed to pay operating and debt service expenses, to fund capital improvements, and generally to support the Financing Plan. District No . 2 will be responsible for administering and operating the Districts, furnishing all services, acquiring or installing the public facilities and improvements needed to serve the Development, and providing intermediate financing for future District projects, if necessary. The "Financing Plan" discussed throughout this Service Plan refers to the consolidated financial plan for the Districts , as more fully described in Section VII, which will be implemented to provide the public facilities and services needed for the Development. r Because of the interrelationship between the Districts, intergovernmental agreements will be executed by the Districts clarifying the respective responsibilities and the specific functions and services to be provided by each District . The intergovernmental agreements will be designed to assure the orderly provision of public services and facilities and the economic administration of the Districts ' fiscal affairs, resulting in a planned residential community which will be an asset to the County. As a consequence of the integrated structure of the Districts, the information provided within this Service Plan often relates to both Districts . The organization of District No . 2 as the service district to finance, construct and operate the public facilities throughout the Development (unless transferred to the County or another governmental entity) , and the re-structuring of District 6 No . 1 as the taxing district to raise property taxes and other revenue required to pay the costs of operations and debt service, will create several benefits for the Development and for the County. In general, these benefits are: (i) coordinated administration of construction and operation of public improvements and delivery of facilities and services needed for the Development in a timely manner; (ii) maintenance of uniform property tax levies and reasonable tax burdens on all property within the Development through proper management of the financing and operation of public improvements; and (iii) assurance that all public improvements are constructed and paid for in a timely and cost effective manner. Each of these concepts is addressed in greater detail in the following paragraphs . The public facilities and improvements to be financed, acquired, installed and operated by District No . 2 , and the provision of services needed within the Development, will not duplicate or interfere with the improvements and facilities already constructed or planned to be constructed within District No . 1 (or by any other district or governmental agency) , if this Service Plan is implemented in accordance with the terms described herein. In compliance with the provisions of Section 32-1-107 (3 ) , C .R. S . , the Board of Directors of District No . 1 hereby acknowledges its consent to the organization of District No . 2 within the boundaries of the District for the purposes and in accordance with the terms of this Service Plan. 2 . Benefits of Dual District Structure. a) Coordinated Services . As now planned, build- out of the Development will proceed in several phases over the next ten years, each of which will require the extension of public facilities and services . The dual district structure will 7 assure that the construction and operation of each phase of public facilities will be completed in a manner consistent with the Company' s long-term development plan. The use of District No . 2 for financing and constructing each new phase of public improvements needed within the Development and for managing the public improvements and operations not taken over by the County, Water District, or another governmental entity will facilitate the implementation of the Financing Plan, even if timelines change, and will assist in assuring the coordinated provision of services throughout the Development . The dual district structure will also assure that public facilities and services needed for future build-out of the Development will be provided when needed and not sooner. Absent an appropriate mechanism to assure timely completion of future improvements, the District might cause improvements to be financed and completed well before needed simply to assure that the Financing Plan is effected, regardless of economic consequences . Agreements between the Districts and the Company or other developers will provide much of the financing for public improvements which are not needed presently, thereby helping taxpayers to avoid the long-term carrying costs associated with financing such improvements too early. This, in turn, allows the full costs of public improvements to be allocated fairly over the entire Development and avoids disproportionate cost burdens being imposed upon the initial phases of the Development. b) Uniform Property Taxes . Allocation of the responsibility for paying debt for public improvements will be addressed in the consolidated Financing Plan and through development of an integrated operating plan for long-term operations and maintenance of public improvements within the Development not transferred to the County, Water District, or 8 another governmental agency. The dual district structure will help to assure that no area within the Development becomes obligated for more than its share of the costs of public improvements and operations . Intergovernmental agreements between the Districts will assure that property tax levies remain reasonable and uniform throughout the Development. c) Bond Interest Rates . The use of the Districts in tandem to issue future bonds, if necessary, and to finance the costs of public improvements in the Development will assure that all debt is issued at competitive interest rates . The Financing Plan for the Districts anticipates that intermediate financing of future public improvements will be secured by the revenue generated from the Developer Fee Agreement and other revenue available to the Districts . This assures that the risk of development remains with the Company, until such time as it has increased the valuation on property within the Development at the level necessary to pay for the costs of public facilities with reasonable tax levies . The use of a dual district structure allows the Districts to coordinate the timing and issuance of bonds in such a way as to assure that improvements required by the County are constructed when needed. 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 all property owners within the Districts . Consequently, the dual district structure is less risky and may result in lower rates on District bonds than if a single metropolitan district is used. 3 . Configuration of Districts . In order to implement the dual district structure, the boundaries of the Districts must be carefully configured. A map showing the current boundaries of District No . 1 is provided in Figure 1 in Exhibit A. District 9 No. 1 contains approximately 4, 120 acres . The boundaries of District No . 1 include all land within the Development. A map showing the purposed overlapping boundaries of District No. 2 is provided in Figure 2 in Exhibit A. District No. 2 will contain approximately 3 , 408 acres of platted and unplatted property owned by the Company and located completely within the boundaries of District No . 1, excluding that property in the first phase of development in Filing No . 1 which is now being marketed for sale. The legal description of the property within the present boundaries of District No. 1 is provided in Figure 3 in Exhibit A, and the legal description of the proposed boundaries of District No . 2 is provided in Figure 4 in Exhibit A. A map showing the boundaries of the Districts in relation to the greater vicinity of the County is provided in Figure 5 in Exhibit A. The "service area" (the geographic area which may legally be served) of District No. 2 will consist of the entire area of the Development, including all property within District No. 1 ' s boundaries . District No. 2 will have the power to impose property taxes only within its legal boundaries but will be authorized to provide public services and facilities throughout the Districts pursuant to this Service Plan and the intergovernmental agreements between the Districts . Additional property may be included in the Districts in accordance with the provisions of the District Act . Under the District Act, the fee owner or owners of one hundred percent (100%) of any property proposed for inclusion may petition the Board of Directors of either District for the inclusion of property into the District. Further, less than all of the owners of an area may petition the District for inclusion, or the Board may adopt a resolution calling for an election on 10 inclusion of the property within such area. A substantially similar process is applicable to the exclusion of property from a special district. In accordance with the procedures set forth in the District Act, property within each new phase of the Development will be excluded from District No. 2 , when such property has been platted, and lot sales have been commenced by the Company or other developers . The Board of Directors of the Districts will have complete discretion to approve inclusions or exclusions without processing an amendment of this Service Plan. 4 . Long-Term District Plan. After all public improvements have been constructed, and all bonds or other debt of the Districts have been paid or payment has been provided for, the electorate of the Districts will have the opportunity to vote upon the consolidation of the Districts into a single consolidated District . At some time, it may be appropriate to consider the dissolution of District No. 2 . Ultimately, control of these decisions will rest with the electorate in each District. Neither District may be dissolved, however, without prior notification to the County and compliance with all provisions of the District Act . 5 . Existing Services and Districts . Other than the Districts, there are currently no other governmental agencies operating within the Development area which have the legal or financial ability to undertake the design, financing and construction of the public improvements needed to serve the Development . The County and other special districts in the Development area, including the LaSalle Fire District ( "Fire District" ) , do not consider it financially feasible or practicable to provide the public facilities and improvements needed for the Development. Consequently, the organization of the Districts is necessary for the provision of public 11 r improvements and services in the Development and for the development of the property itself . The re-structuring of District No . 1 and the organization of District No . 2 will have no legal effect upon, or change the rights, liabilities, or obligations of District No. 1 under the terms of existing agreements , including the Agreement for Water Service, dated June 27 , 1995 ( "Water Service Agreement" ) with the Water District . Water service will be provided to the Development in accordance with the terms of the Water Service Agreement . The District may enter into intergovernmental agreements with the Fire District . In order to minimize the proliferation of governmental activities, District No . 2 will operate and maintain the public facilities and improvements within the Development in accordance with intergovernmental agreements with District No . 1 . Operations and maintenance of some public improvements, including water, street and traffic safety, will be the responsibility of the County or Water District after the completed improvements have been transferred to such agencies . The timing and conditions for transfer of such improvements will be established by the County and Water District. B. General Information and Assumptions The projected resident population of the Districts at build-out of the Development is 1, 860 persons . The projected total valuation of all taxable property within District No . 1 at build-out of the Development is approximately $181, 000 , 000 with an assessed valuation of approximately $20, 000, 000 . The 1999 assessed valuation of all taxable property within the boundaries of District No. 1 is $6, 755, 200 . No resident population is anticipated within District No . 2 . The initial assessed valuation of the taxable property within District No. 2 is 12 estimated to be approximately $16, 000 . As development occurs within District No . 2 , improved property will be excluded from the District, and the total assessed valuation of property within the District will decrease. The anticipated costs of public improvements needed to serve the Development are substantial and are estimated in Table 1 in Exhibit B. Funding for capital costs will be provided from developer fees, water connection fees, and other available revenue of the Districts . The Districts may obtain financing for the public improvements , if necessary, through the issuance of general or limited tax obligation bonds or other debt instruments of District No. 1, including the issuance of notes or tax pledges to District No . 2 pursuant to the intergovernmental agreements between the Districts , or from revenue bonds, anticipation notes, or other instruments issued by the Districts and secured by revenues generated under the Developer Fee Agreement. District No . 2 may enter into funding agreements with the Company or other developers to fund the costs of public improvements needed for subsequent phases of the Development . The revenue forecasts set forth in the Financing Plan were based upon various development assumptions made by the Company. For purposes of this Service Plan, a reasonable growth scenario has been used to develop the Financing Plan. The Financing Plan is predicated upon a cash funding scenario which may be used by the Districts to finance the costs of public improvements needed for subsequent phases of the Development. At the time public improvements are actually needed, alternative financing plans may be more beneficial and may be implemented by the Districts, as appropriate. Use of an alternative financing plan will not require an amendment of the Service Plan but shall be subject to the other requirements set forth in Section VIII . 13 With the financial support provided by the Company and other developers through the payment of developer fees, the Financing Plan demonstrates that the costs of public improvements needed for subsequent phases of the Development can be financed economically with reasonable property tax levies not exceeding 40 mills . The projections and estimates set forth herein relating to the costs of public facilities and operations will not constitute limitations on the financial powers of the Districts; provided, however, that the Districts shall not be permitted to issue bonds which are not in compliance with State law and the provisions of this Service Plan, including without limitation Section VIII . The Financing Plan demonstrates that the risks associated with the construction of public improvements needed within subsequent phases of the Development will be borne initially by the Company and other developers through payment of the developer fees . The responsibility for payment of a portion of the costs of public facilities will be shifted incrementally to all property within District No . 1 as development occurs, and the total assessed valuation of property within the District increases . The County will have no responsibility for any debt of the Districts . Additionally, the County can be assured that there are legal and financial controls on District indebtedness, which operate to limit the taxes that property owners within the Development will be expected to pay. Under the District Act, a district cannot incur general obligation indebtedness payable from property tax revenues in excess of fifty percent (50%) of its valuation for assessment, unless such indebtedness is rated or insured, or unless the mill levy from which it is payable is 14 limited. The maximum tax levy of the Districts for operations and debt service is projected to be 40 mills . In addition, State securities laws do not allow exemption from registration for district indebtedness not meeting minimum requirements . Finally, the current public market for municipal securities is extremely cautious with respect to district general obligation indebtedness and demands relatively low debt-to-valuation ratios . It should be noted that any general obligation indebtedness, including the 1998 Bonds, is secured by a tax levy without limit as to rate or amount, which must be sufficient, together with other available revenues, to pay debt service . The outstanding principal amount of the 1998 Bonds is $2 , 000, 000 . C. Contents of Service Plan This Service Plan consists of a Financing Plan and preliminary engineering survey showing how the public facilities and services for the Development can be provided and financed by the Districts working in tandem. The Financing Plan revises, modifies and replaces the original financing plan set forth in the District Service Plan. Other information is included in this Service Plan in compliance with the requirements of Part 2 of the District Act. 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 schedule of development, was obtained from the Company. Construction cost estimates for most public facilities were developed by Milestone Engineering or J.L. Walter Consulting Engineering for water improvements . Legal consultation, including drafting of this Service Plan, has been provided by the law firm of Collins and Cockrel, P.C. Financial recommendations 15 and advice relating to the issuance of the 1998 Bonds were provided by Bigelow and Company and James Capital Advisors, Inc . The District auditor is Van Schooneveld and Co . , Inc . D. Modification of Service Plan This Service Plan has been drafted with sufficient flexibility to enable the Districts to provide the public services and facilities currently anticipated for the Development under evolving circumstances without the need for numerous amendments in the future. While the assumptions upon which this Service Plan are generally based are reflective of the Master Plan for the Development, 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 as actual development occurs, whether or not the Master Plan itself changes . Modification of the general types of services and facilities, and changes in proposed configurations, locations , quantities , dimensions, or costs of various facilities and improvements, shall be permitted to accommodate actual development needs consistent with the Master Plan, without further amendment of this Service Plan. II. NEED FOR NEW DISTRICT AND GENERAL POWERS A. Need for New District District No . 2 will be organized to assure that public facilities and improvements needed to serve subsequent phases of the Development will be financed and installed in a timely, efficient, and economical manner as development occurs . District No . 1 will continue to be responsible for financing the various central facilities needed to serve the entire Development and for 16 funding operations and outstanding debt service. Installation, operations and maintenance of water, drainage, streets, safety protection, landscaping, transportation, cable television, and park and recreation improvements will initially be provided by the Districts , some of which will then be transferred to the County or Water District in accordance with the intergovernmental agreements referred to in Section V. B. General Powers of Districts The Districts will have all powers and authorities granted under the District Act to provide the services and facilities described in this Service Plan both within and outside District boundaries . The powers and authorities of the Districts will be allocated and further refined in intergovernmental agreements between the Districts, a general summary of which is set forth in Section V. For purposes of the District Act, the making or amendment of the intergovernmental agreements shall not constitute a material modification of this Service Plan. They will, however, be binding and enforceable agreements between the Districts regarding implementation of the authorities set forth in this Service Plan. The Districts shall have authority to provide the following services and facilities, all of which shall be in conformance with the standards and specifications of the County or Water District, if applicable: 1 . Streets and Drainage. The design, acquisition, installation, construction, operation, and maintenance of arterial, collector and access streets and other roadway improvements within and outside District boundaries, including without limitation curbs and gutters (if needed) , culverts, storm 17 sewers and other drainage facilities, detention ponds, retaining walls and appurtenances, as well as bridges, parking facilities, paving, lighting, grading, landscaping, undergrounding of public utilities, gatehouses , entrance buildings, and other street improvements , together with all necessary, incidental, and appurtenant facilities, land and easements, and all necessary extensions of and improvements to such facilities . 2 . Traffic and Safety Controls . The design, acquisition, installation, construction, operation, and maintenance of traffic and safety protection facilities and services through traffic and safety controls and devices on streets and roadways , as well as other facilities and improvements, including without limitation signalization at intersections, traffic signs, area identification signs, directional assistance, driver information signs, and contractual arrangements with the County Sheriff or Fire District for safety protection and other incidental purposes, together with all necessary, incidental, and appurtenant facilities, land and easements, and all necessary extensions of and improvements to such facilities . 3 . Parks and Recreation. The design, acquisition, installation, construction, operation and maintenance of public park and recreation facilities or programs, including without limitation grading, soil preparation, sprinkler systems, playgrounds, playfields, golf courses, tennis courts, swimming pools, bike, hiking and nature trails, nature corridors, pedestrian and equestrian trails , bridges, picnic areas, lakes , marinas, open space, landscaping and weed control, outdoor lighting of all types , recreation and equestrian facilities , community buildings, and other recreational facilities, together with all necessary, incidental and appurtenant facilities, land 18 and easements, and all necessary extensions of and improvements to such facilities or systems. 4 . Water. The design, acquisition, installation, construction, operation and maintenance of water lines, hydrants, water treatment, storage and distribution facilities, storage reservoirs, water rights, 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 such facilities or system. 5 . Miscellaneous Authorities . The design, acquisition, installation, construction, operation and maintenance of : (i) transportation systems by bus, rail, or any other means, including without limitation services and facilities authorized under the District Act; (ii) services and facilities for the elimination and control of mosquitoes; and (iii) television relay and translator systems and other electronic or cable facilities . 6 . Other Services. The Districts may provide other services and facilities authorized under the District Act or by law, without limitation, if needed to serve the Development and not otherwise provided by the County or another governmental agency within the area. 7 . Legal Powers . The powers of the Districts to provide the services and facilities contemplated in this Service Plan will be exercised by the Board of Directors of each District as applicable. The authorized facilities and services, along with all other activities permitted by law, will be undertaken in accordance with, and pursuant to the procedures and conditions 19 contained in the District Act, other applicable statutes, and this Service Plan. 8 . Other. In addition to the powers and authorities enumerated herein, the Board of Directors of each District shall also have the following powers : a) To amend this Service Plan as necessary, subject to compliance with all statutory procedures set forth in the District Act, including by providing written notice to the County pursuant to Section 32-1-207 , C.R. S . , of actions which either District believes is permitted by this Service Plan but which may be unclear. In the event that the County determines not to enjoin any such activity, such determination shall constitute agreement by the County that such activity is within the scope of this Service Plan. Each District shall have the right to amend this Service Plan independent of any participation by the other District; provided, however, that neither District shall be permitted to amend those portions of this Service Plan which materially affect, impair, or impinge upon the rights or powers of the other District without the other District' s consent; and b) Subject to all provisions of the intergovernmental agreements between the Districts, to revise, reschedule, or restructure the financing and construction of various public improvements and facilities in order to accommodate the rate of growth within the Development, costs of public improvements, and inclusion of property into the Districts , or the provision of any public improvement and facility by another entity; and 20 c) To provide all additional services and facilities and exercise all powers as are expressly or impliedly granted by the District Act or other State law, and which the Districts are required to provide or exercise or, in their discretion, choose to provide or exercise; and d) To exercise all necessary and implied powers under the District Act. III. DESCRIPTION OF FACILITIES AND IMPROVEMENTS District No . 1 has previously financed, acquired, and installed, or is currently constructing the central facilities and improvements needed to serve the initial phase of the Development, including the Beebe Draw Parkway, other streets and drainage facilities, entrance and gatehouse, traffic and safety controls, signage, offsite water transmission main, water distribution lines, water rights, community building, hiking and equestrian trails, marina and related water and recreation facilities . District No. 2 will exercise its statutory powers and the authority set forth in this Service Plan to finance, acquire, construct, install, operate and maintain the other public facilities and improvements needed to serve subsequent phases of the Development as described in this Service Plan, either directly, by contract, or by acquisition from the Company or other persons. District No. 2 will complete the public facilities which are to be transferred to and operated by the County and Water District . Where appropriate, the Districts will contract with various public and/or private entities to undertake such functions and activities, including without limitation the Water Service Agreement; subdivision improvement, law enforcement and other intergovernmental agreements with the County; and 21 acquisition and reimbursement agreements with the Company or other developers, if necessary. General information for each type of public improvement needed for the Development is set forth in the following pages . It is important to note that the engineering information contained in this Service Plan is preliminary in nature, and that modifications to the type, configuration, and location of public improvements may be necessary as development progresses . All public facilities and improvements within the Development will be designed and installed in such manner as to assure that the facility and service standards will be compatible with those of all affected governmental agencies and utility providers, particularly the County and Water District . For example, County road design and construction standards have been followed in designing all District street and drainage projects, and water transmission and distribution mains have been designed and constructed in accordance with the Water District' s regulations . There follows a general description of the public facilities and improvements which will be financed and constructed by the Districts . A. General Construction of all public facilities and improvements will be engineered and scheduled to allow for proper sizing and phasing consistent with the need for service within each phase of the Development . All descriptions of specific facilities and improvements to be constructed and their related costs are estimates only and are subject to modification as actual engineering design, development plans, market conditions, 22 governmental requirements, and construction scheduling may require. B. General Design Standards All public facilities and improvements within the Development will be designed, installed, and operated by District No. 2 in conformance with current codes, standards, and regulations adopted by the County, Water District, Fire District, or District itself . Design and contract documents prepared for improvements will be approved by District No . 2 and will be implemented in accordance with all codes, regulations , standards, specifications, and procedures of each applicable governmental agency. If design standards become more stringent, the developer fee may be increased to pay for the additional capital costs of District facilities . 1 . Street System and Traffic Safety. a) General. The Districts will construct the arterial and collector streets and roadway system needed to serve the Development . The existing and proposed elements of the street system will provide a network of arterial and collector streets and roadways to accommodate anticipated traffic within and surrounding the Development interconnecting with existing County roads in the area. The improvement of offsite County roads within the area, as may be required by the County to provide adequate traffic circulation to the Development, will be completed in accordance with intergovernmental agreements with the County. All streets, regardless of classification, and related facilities will be designed and installed in accordance with current County standards and specifications . 23 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 (if applicable) , County standards and specifications, and any rules and regulations adopted by the Districts . The rights-of-way for and the widths of streets within the Development shall be as set forth in the Master Plan and in the subdivision plats for the individual filings of the Development as approved by the County. c) Landscaping. Landscaping may be installed by the Districts along portions of the arterial and collector road rights-of-way. The Districts may install and maintain landscaped highlights within the Development, including entry features at major entrances . Additional landscaping features may be installed and maintained by District No. 2 . d) Signals and Signage. Traffic controls and signage will be provided along streets to enhance the flow of traffic within the Development . Streetlights may be installed by the Districts at the intersections of arterial and collector streets or County roads . All improvements will be installed by the Districts as required by County regulations . 2 . Storm Drainage. Generally. The Districts will install the necessary storm drainage systems to serve the Development in accordance with County development regulations . The storm drainage system includes ponds, culverts, and curb and gutter (if necessary) designed and installed in accordance with County standards and sound engineering judgment . The Districts will ^ design and install storm drainage improvements within the 24 Development, except for site improvements for individual development parcels, which will be the responsibility of the Company or other developers . All major storm drainage facilities will be designed to conform to the standards and recommendations for drainage improvements using County design criteria and if applicable, regulations of FRICO. a) Culverts . Culverts, including box culverts, will be installed under all roadways that intersect storm drainage channels in accordance with County regulations . Culverts will be designed to pass flows as required and may include headwalls, wing walls, inlet structures, and riprap protection to enhance hydraulic capacity and reduce bank or channel erosion. b) Drainage Plan. A drainage plan will be prepared that will identify all facilities necessary to convey storm runoff from the Development. This plan will include all infrastructure required to convey storm water flows generated within the Development . This plan will maintain the flexibility to modify drainage facilities as more detailed information is generated during the design of the individual phases of the Development . The drainage plan may include the utilization of storm sewers, drainage channels, ponds, streets, and culverts . 3 . Water System. The water system within the Development is interconnected to and part of the water transmission and distribution system of the Water District and will be operated and maintained by the Water District in accordance with the Water Service Agreement . Water lines and hydrants will be designed and installed to conform with the current standards and specifications of the Water District and then transferred to the Water District for future operation and 25 maintenance. The water system required for the Development will be installed by District No. 2 . 4 . Transit System. There is no specific transportation plan for the Development currently, but the Districts are authorized to furnish transportation services and facilities, if subsequently needed and financially feasible . 5 . Park and Recreation. The Districts will acquire, construct, develop, maintain, and operate parks and recreational facilities , including hiking and equestrian trails, open space, nature corridors, various aquatic facilities including a marina on Milton Lake and improvements to Lake Christina, clubhouse, swimming pool, and tennis courts , during build-out of the Development . Major equestrian facilities are not currently planned but may be provided by the Districts , if subsequently needed and financially feasible, or may be provided through a contract service provider. If there is sufficient public demand in the future and available land and if it is economically feasible, the Districts may, perhaps in cooperation with other governmental agencies, develop a public golf course and related facilities, subject to compliance with County site approval requirements . Great Outdoors Colorado and Conservation Trust Fund revenues could be applied for such purposes . All park and recreational facilities and/or services will be constructed in accordance with plans and specifications established by District No . 2 . All park and recreational facilities will be constructed in accordance with engineering and design requirements appropriate for the facility and shall comply with County building codes, uniform fire codes, and the standards of other governmental agencies, if applicable. 26 C. Estimated Costs of Facilities The estimated costs of the public facilities and improvements to be constructed, installed and/or acquired by the Districts within the Development are $20 , 596 , 084 as shown in Table 1 in Exhibit B. The estimated costs of other public infrastructure to be constructed, installed, and/or acquired by the Districts to serve the Development are not known at this time. The engineering analysis and estimates of public infrastructure costs for the Development constitute the preliminary engineering survey of the District facilities and improvements and may be modified, changed and revised as necessary to provide the public infrastructure needed for the Development without any amendment of this Service Plan. IV. DEVELOPMENT PROJECTIONS The Company has projected the various phases and build-out of the Development based upon present market conditions . The build-out schedule is set forth in Exhibit C. V. PROPOSED AND EXISTING AGREEMENTS A. District Intergovernmental Agreements As noted in this Service Plan, the relationship between District No . 1 and District No. 2 , including the terms for financing, constructing, and operating the public services and improvements needed to serve the Development, will be established in one or more intergovernmental agreements . A copy of each intergovernmental agreement between the Districts shall be provided to the County within thirty (30) days after execution. The intergovernmental agreements will provide comprehensive 27 procedures and requirements for the payment of : (i) the capital costs of the public improvements, including payments to the Water District and other governmental agencies; (ii) administrative, operational and maintenance expenses of the Districts ; (iii) costs of issuance of District bonds, debt service, and related financing expenses of the Districts, and (iv) for the construction, acquisition, operation and maintenance of all facilities and services needed for the Development and the administration of District affairs by District No. 2 . District No . 2 will be responsible under the intergovernmental agreements for contracting for and supervising the acquisition and construction of all public facilities and improvements needed for all subsequent phases of the Development, including the preparation of engineering plans and specifications and public bidding and contracting with contractors . Upon completion of the public improvements, District No . 2 shall be responsible for their operation and maintenance, until such time as any improvement is transferred to the County, Water District, or another governmental agency. District No . 2 shall be responsible for management, record-keeping, and financial planning services for the Districts, as well as operating or contracting for the operation and maintenance of the public improvements . In addition to payments for financing a portion of the public improvements within the Development, District No. 1 shall pay District No . 2 for operating and maintaining the improvements and administering the affairs of the Districts and any major repairs or replacements of the improvements ( "service costs" ) . District No . 1 will pay the service costs in accordance with the terms of the intergovernmental agreements . 28 B. Water Service Agreement The District entered into the current Water Service Agreement with the Water District on June 27, 1995, terminating the prior agreement dated October 30, 1985 . A copy of the Water Service Agreement is included in Exhibit D. The Development has now been fully included within the service area of the Water District, Northern Colorado Water Conservancy District ( "Northern District" ) , and Municipal Subdistrict . Consequently, the District has acquired, and will continue to acquire interests in Northern District water (including Colorado-Big Thompson Project water) at market prices . After acquisition, the water interests are transferred to the Water District to be used as the permanent water supply for the Development . This arrangement secures a reliable and economic long-term water supply for the District and all property within the Development. In accordance with the terms of the Water Service Agreement, the District is required, at its expense, to install the water transmission and distribution system and all appurtenant facilities necessary to serve the Development . The water system improvements must meet the Water District' s technical standards . After completion, the water system improvements are transferred to the Water District for operation and maintenance. The Water District operates the water distribution system within the District in accordance with its general standards, providing services and charging customers directly for such services . The Districts may also assess fees and charges to users to recover capital costs incurred to furnish water to the Development . r 29 C . County Intergovernmental Agreement The Districts may enter into intergovernmental agreements with the County with respect to the installation, operation and dedication of streets, drainage, offsite road improvements, safety and other facilities, and service arrangements for the Development, including the County Sheriff or Beebe Draw Law Enforcement Authority ( "LEA" ) , if appropriate . In accordance with the terms of the Law Enforcement Agreement dated December 17 , 1998, the County and County Sheriff have contracted to perform certain law enforcement protection services within the LEA boundaries funded by a seven (7) mill tax levy. If permissible, the Districts may in the future contract with the LEA to fund additional levels of law enforcement services necessary for the operation and protection of the facilities of the Districts . The Districts will comply with all County codes, regulations , standards, and specifications applicable to the public facilities and improvements to be installed by the Districts . D. Developer Fee Agreement The District entered into the Developer Fee Agreement with the Company on December 8, 1998 . A copy of the Developer Fee Agreement is included in Exhibit E. The Developer Fee Agreement is the primary source of funding for capital facilities and improvements needed to serve subsequent phases of the Development . Under the Developer Fee Agreement, the Company and other developers are obligated to pay a developer fee in the amount of $15, 500 per lot on or before the date of transfer and/or sale of each lot. There is a schedule for payment of developer fees in the first phase of the First Filing of the Development . The District may increase the amount of the 30 developer fee as necessary to fund the costs of the capital improvements needed for subsequent phases of the Development, including additional costs caused by more stringent County design standards . Until the developer fee is paid, the developer fee constitutes an unconditional obligation of, and lien upon each lot within the Development . E. FRICO Agreement The District entered into the First Amendment to Grazing and Recreation Lease ( "FRICO Agreement" ) with FRICO on January 1, 1989 , amending the Grazing and Recreation Lease dated March 4, 1987 with Beebe Draw Land Company, Ltd. The District has effectively assumed all rights and liabilities under the FRICO Agreement to manage recreational use on Milton Reservoir for District residents and guests . There are certain limitations upon the type of recreational uses (e.g. , motorized boating not greater than ten horsepower and restrictions upon water skiing) , but most aquatic recreation is authorized. The District pays FRICO an annual rental fee through the term of the lease (December 31, 2016) . A hunting sublease has also been entered into for the same term, which reduces the annual lease rental expense to approximately $3 , 000 . F. Other Agreements/Authority To the extent practicable, the Districts may enter into additional intergovernmental and private agreements to ensure the long-term provision of the public improvements and services needed for the Development and for effective management of District affairs, including without limitation the Fire District . Agreements may also be executed with the Company, other 31 developers, property owner associations, and other service providers . VI. OPERATION AND ADMINISTRATION COSTS Initial costs of operations and general administration of the Districts are set forth in Table No . 1 below; these costs have been estimated based in part upon actual District expenditures for prior fiscal years and are presented in the Financing Plan set forth in Exhibit F. A copy of the most recent audited financial statements of the District for the period ending December 31, 1997 is included in Exhibit H for informational purposes . Increased costs of operations and administration, including supplemental snowplowing and employee expenses, will be funded by user fees, other operational fees, and general revenue sources available for such purposes, as determined by the Board of Directors during the annual budgeting process . The District will not be responsible for maintenance costs associated with public roads or the water system. The Financing Plan demonstrates that anticipated cash reserves will be sufficient to fund costs of major repairs or replacement of District facilities . Bonds could also be issued to fund such capital costs . TABLE NO. 1 INITIAL OPERATIONS AND ADMINISTRATION COSTS Administration $ 4 , 500 Audit 4, 000 Director fees 800 Insurance 3 , 800 Lake lease (net) 3 , 000 32 Legal 8 , 000 Operations and maintenance 23 , 000 Utilities 1, 400 Emergency Reserves 1 , 500 Total $ 50, 000 VII. FINANCIAL PLAN The consolidated Financing Plan is set forth in Exhibit F and shows how the proposed public services and facilities may be economically financed and operated by the Districts . The Financing Plan includes projected revenues derived from ad valorem property taxes collected within District No. 1 and the Developer Fee Agreement, together with other revenue annually through 2007 and then for the ten-year period through 2018 . The intergovernmental agreements between the Districts will provide that the obligation of District No. 1 to pay District No . 2 for the costs of financing the public improvements needed for the Development and for operating expenses incurred for the provision of services within the Development will constitute voter-approved financial obligations of District No. 1 . Accordingly, property tax levies certified to make necessary payments to District No . 2 may be characterized as financial obligations exempt from spending limits under Article X, Section 20 of the Colorado Constitution ( "TABOR" ) . District No. 2 may issue revenue or bond anticipation notes to fund the costs of the public improvements, until such time as it is able to collect revenues from District No. 1 or pursuant to the Developer Fee Agreement . Any funds advanced by the Company or other developers will be reimbursed from available revenue sources . 33 The Financing Plan includes debt repayment for the outstanding 1998 Bonds (maturing in 2018 with a net effective interest rate of 6 . 78%) and shows how the financial operations of the Districts will be integrated. The Debt Amortization Schedule is included in Exhibit G. District No. 2 may issue revenue anticipation notes or bonds secured primarily by the revenues generated under the Developer Fee Agreement and property taxes collected by District No. 1 . District No . 1 may issue notes or pledges to District No . 2 secured by property tax levies to fund the acquisition and installation of other major facilities needed to serve the Development. District No . 1 may pledge or assign its right to receive the revenue generated under the Developer Fee Agreement, in whole or part, to District No. 2 to secure its revenue bonds . Revenue from such sources and other available funds will be used to retire the District bonds and other debts . Pursuant to electoral approvals given at public elections held on November 4, 1993 and November 5, 1996, District No. 1 is presently authorized to issue additional general obligation indebtedness in the principal amount of $2 , 650 , 000 ( "Authorized Debt" ) for the following purposes : (i) water ($925, 000) ; (ii) streets and drainage ($975, 000) ; and (iii) park and recreation ($750, 000) . District No . 1 may issue the Authorized Debt for any authorized purpose as may be necessary to complete the capital facilities and improvements needed to serve the Development; provided, however, that no Authorized Debt shall be issued after twenty (20 ) years following the date of the public election. No provision of this Service Plan shall be construed to restrict the issuance by either District of limited tax obligation bonds with a tax levy of 50 mills or less, revenue bonds or notes , or other obligations which do not constitute a general obligation debt of the Districts, except for the Authorized Debt. The Financing r Plan illustrates that adequate revenue will be available from 34 various sources for the payment of debt issued to provide public infrastructure for the Development, thus reducing the risk of excessive property tax levies . Other financing plans may be implemented, if subsequently determined by the Board of Directors of the District to be in the best interests of the Districts . The Districts shall, without limiting other financing alternatives, be entitled to modify the structure of the Financing Plan by causing District No. 2 to obtain financing directly from the Company, other developers, financial institutions, or accredited investors; provided, however, that any such borrowing shall comply with the requirements of State law. For example, District No. 2 shall be entitled to obtain funding directly from the Company or other developers and agree to repay and reimburse such entities from revenues generated under the Developer Fee Agreement or from other available funds of the Districts . The Districts shall also be entitled to issue contingent repayment obligations in amounts which exceed the Authorized Debt on condition that the provisions of such contingent repayment obligations are in compliance with State law and are subject to all legal limitations for issuance of general obligation debt. The Districts shall have the authority to utilize excess property valuation/debt capacity which may be developed within the Districts , if the projections incorporated into the Financing Plan are more conservative than actually realized within the Development. All projections in the Financing Plan are stated in 1999 dollars adjusted for inflation (3 . 5% per annum) , as applicable. Upon approval of this Service Plan, the Districts will continue to develop and refine the cost estimates for the public improvements contained herein and prepare for financing such improvements . All cost estimates will be inflated to current 35 dollars at the time of actual financing and construction. All construction cost estimates assume construction in compliance with local , state or federal requirements . The total estimated costs of all public facilities and improvements and related financing and organizational costs are $25 , 460 , 704 (in 1999 dollars) , as more completely set forth in Figure 1 in Exhibit C . The Districts shall have the authority to issue (or incur) general or limited tax obligation indebtedness, revenue debt, and other debt obligations in amounts sufficient to finance and construct the public facilities and improvements authorized under this Service Plan, if greater than such estimated costs, without the need to seek approval of the County for any modification of this Service Plan. The Districts shall also be permitted to seek debt authorization from their electorates in excess of this amount to account for contingencies or other unforeseeable costs . Reasonable modifications of all facilities and cost estimates shall likewise be permitted. Final determination of the amount of debt for which approval will be sought from the Districts ' electorates will be made, from time to time, 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 the various agreements described herein will be sought from each District ' s electorate pursuant to the terms of the intergovernmental agreements between the Districts, District Act, and Colorado Constitution. In addition to ad valorem property taxes and developer fees, which may be increased to fund the costs of capital improvements, the Districts may also rely upon various other revenue sources authorized by law in order to offset anticipated or increased expenses of construction, operations and maintenance. These 36 include the power to assess fees, charges, rates, tolls, or penalties as provided in the District Act. The Districts will receive restricted revenue from Great Outdoors Colorado and the Colorado State Lottery into the Conservation Trust Fund to support recreational programs and facilities, including facility repair and replacement reserves . Projections in the Financing Plan are based upon average State distributions to districts during the 1998 fiscal year. The Financing Plan has been developed without reliance upon all possible sources of revenue available to the Districts, but this does not preclude the Districts from implementing any revenue source legally available to the Districts . The Financing Plan does not project any significant accumulation of fund balances which might represent receipt of revenues in excess of expenditures under TABOR. It is anticipated that certain operations of the Districts may, under some circumstances, qualify as "enterprises" under TABOR. If District operations do not qualify as enterprises under TABOR, revenues from all sources which exceed the permitted level of expenditures in a given year will be refunded to taxpayers, unless a vote approving the retention or "de-Brucing" of such revenues is obtained. District No . 1 has already accomplished such "de-Brucing" , and District No . 2 will do the same at its organizational election, so that fluctuations in revenues from year to year do not create a TABOR refund problem. To the extent annual District revenues exceed expenditures without prior voter authorization, the District will comply with the provisions of TABOR and either refund the excess or obtain voter approval to retain such amounts . In the discretion of the Districts, the Districts may set up enterprises or other qualifying entities to manage, fund, construct and operate facilities, services , and programs . To the extent allowed by law, any entity created by 37 the Districts will remain under the control of its Board of Directors . The estimated costs of the public facilities and improvements to be constructed and installed by the Districts, including the costs of acquisition of land, engineering, legal, administrative services, initial proposed indebtedness, and other major expenses related to such facilities and improvements, are set forth in the Financing Plan. For full build-out of the Development, capital costs are not expected to exceed $20 , 596 , 084 . The Financing Plan for District improvements is based upon developer fee revenue generated by build-out of the Development. If build-out does not occur as anticipated (the absorption estimates in the Service Plan are considered to be conservative) , then District improvements will be deferred or phased to coincide with actual development, and unnecessary capital expenditures will be avoided. This Financing Plan is more practicable and financially feasible than the financial plan in the District Service Plan, because construction phasing is tied to build-out of the Development, and large principal amounts of general obligation debt will not be incurred to finance the District improvements , eliminating the risk of unlimited tax levies . Organizational costs of District No . 2 are estimated to be approximately $35, 000 . The maximum principal amount of Authorized Debt will not exceed $2 , 650, 000, and the maximum interest rate of Authorized Debt will not exceed ten percent (10%) . The proposed maximum underwriting discount will not exceed three percent (3%) . It is estimated that the Authorized Debt, if issued, will mature not more than twenty (20) years from date of issuance, with the first maturity being not later than three (3 ) years from the date of issuance pursuant to the District Act. 38 The assessed valuation of all improved property within the Development is projected to increase to approximately $18, 000 , 000 at build-out. The assessed valuation of all taxable property within the Development is projected to increase from the present level of $6 , 755 , 200 (1999) to over $20 , 000 , 000 at build-out . The projected assessed valuation of property within the Development was based upon present property tax information provided by the County Assessor and present State tax law. The maximum property tax levy of District No . 1 is not expected to exceed 40 mills . District No. 2 is not expected to have a separate property tax levy. The Financing Plan clearly demonstrates that, at the various projected levels of development, the Districts will have the ability to finance and pay for the public improvements and services needed for the Development and will be capable of discharging all existing and proposed debt of the Districts on a reasonable basis with reasonable property tax levies . No funds or assets of the County shall be pledged as security for the repayment of debt issued by the Districts . VIII. OTHER REQUIREMENTS The Districts shall be subject to the following additional requirements : 1 . Unless subsequently requested by written notice from the County, the Districts shall not be required to file annual reports as described in Section 32-1-207 (3 ) , C .R. S . 2 . Material modifications of this Service Plan, except as contemplated herein, shall be subject to approval by 39 the County in accordance with the provisions of Section 32-1-207 , C.R. S. IX. CONCLUSIONS It is submitted that this Service Plan establishes, as required by the District Act, 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 (and within the service area) ; and d) The area included in the Districts (and within its service area) does have, and will have, the financial ability to discharge the proposed indebtedness on a reasonable basis . Therefore, it is requested that the Board of County Commissioners of Weld County, Colorado, who have jurisdiction to approve this Service Plan pursuant to Section 32-1-203 , C .R. S . , adopt a resolution that approves this consolidated Service Plan for the Districts as submitted. 40 EXHIBIT A [FIGURE 1 - MAP OF DISTRICT No. 1] BEEBE DRAW FARMS and Equestrian Center METROPOLITAN DISTRICT WELD COUNTY ROAD NO. 38 T 4 b We le m.Own y) 1 Weld 50' BUFFER My 100' SETBACK N 9 1 I AIMI1 A�62 MILTON 5 4 �� 50' BUFFER `? I R66URVO E 1R L I OUTLOT "A" Meg BEERE CI�W FARMS FILING NO. 2I EOUESTRAIN CENTER I I 100' SETBACK /� w.«°"'"1'"A" 1 \ p (6 Y6.9 to U.S. Ho.66 and Plan«nl.) 100' SETBACK C �� 200' BUFFER �}' l _.\2, H ----------_�/-�'�^S`,,,N♦ /j/' _ ; \�► I LAKE VICINITY VICINITY MAP N.T.S ♦♦` y„, 200' ::': \FILING NO. 1 1 �FILING � �♦ �___� // 9 200' BUFFER �- m o I 1 z ` o Z♦ It., I\♦ 1001 SETBACK 100' BUFFER <♦ FILING NO. 1 1 ♦ ♦ I o •... 11 N 1 • • I� TCT ---11 - - - - MILTON s o 3 AREA = 4120.472 Acres RESERVOIR N I I LAKE I I FILING NO. 2 I f7 16 I 1000 a 1000 I I 14 d 1 SCALE M FEET I I CONTOUR INTERVAL:NA I I I WELD COUNTY ROAD NO. 32 - ._.-o �, � IN MILESTONE calm.m 60030 X II��JJ --- , I ll engineering n• MOT Yaw Min.sane ssa .o.2 mAa9e.�g9ei;•et EXHIBIT MAP SHT 2 of 3 PLOT DATE:3 MAIL 1999 EXHIBIT A [FIGURE 2 - MAP OF DISTRICT NO. 2] BEEBE DRAW FARMS and Equestrian Center METROPOLITAN DISTRICT WELD COUNTY ROAD NO. 38 I 4(f NN..ro Emir() (////JJJ VISE ewlnr Rd 34 I " SO' BUFFER , I R rl°'ms• i 100' SETBACK i Ic IPii _ Nimrod 5 4 80' BUFFER 3 $ REMLAKE"� I ` OUTLOT "A" SS '.... —S FILING NO. 2 ` , rVIy2 •.� BEEBEO' IN FARMS ' 1 E OUEST SIN CENTER DISTRICT 2 100' SETBACK Mad Candy Ild31 (- \ a (S woo N U.S. ND. SS and PlaN.MIN) • _.—. AREA = 3,407.846 Acres 100' SETBACK �� Z00' BUFFE _ _ _ �\J\._ _ /i'i '_ �`_ ,LAKE 1 . VICINITY MAP N.T.S. FILING NO. t ` /� yi/� 200' BUFFER O�iRISTII�A i H i \ \ I I a..i • v FILINGN02 ,S I 200' BUFFER �I'j \ 10 '' C. 100' SETBA�K ei t1 EXTION A100' BUFFER `� \ M1ms3Smruw cit meLE � I11 I `N FILING NO. 1 1 `� I I ` 1 \ II z o — _ U —'—'— — ii/i/i/i/i/i/i//i/i/i/i/i/i/i/ri/i/i/iii/iri//i/i/i/i/ilia/iriiiii. /iri/i/i/ii/ri/i/i/ii/i/i//r/i/i/iiriri/i//i/i/i/i/loin/ii riiiri• MILTON o rr/rr/r/r/r///,i/i/i/iri//i/irir/rrH/i/i//i/i/i/i/niuva//i/iri J //H/rH//r4',,,/',$*HHHHHH/H/rH/zv/////n fldlti'. La I /r/r/r, 4 /iH//,ri/rr///H/rr/rr ,/r/,H',,,,#,,,,,,n/.vr4i• RESERVOIR 3 „/,,,, ,,,,,,,,,/,///,,,/,/,,,,,,,,,,,,,,,,,,,,, ,,H/ N I /N/iHiiiii /iiiriiHiiH,iiEXCEPIJON B iii ,. // Nr //H/, /NiN r//H-. LAKE /iii/iiH/i/HH,iHHiipH�/iH/iiHi EXCEPTION B tt9iiiit't491. iiHi/ipii//ii/i/02 �i/i 1 4p/rH/pS4 //,/rHppp/,HrrHHS4/4rr,/yHt44 i,'ee'eieGe',',"�i�iGii�jf!iriG �r i%/�/O Gi�f• FILING NO. 2 i/pi�iii�ii4Gii//dill%r///i/i/iiiGiiiiii�/�//iiir f�/fi • *44uis4::iiii//*D iillow—�//9frj/H�/y3.i/4P I 17 OiifH/GH Sr($j�j'e iirriii�i',4$i//$;/45i/piij %%//,4 4'4fr//it9,1,�/G//4$ji,%O41j9%iii/ ri �/ /i��i�iHHH��/N/i, 1000 0 1000 %iii�ji//i/ri/i/iiii/%4//7/44i/ijjH/r/H/////H/,•:t'l 1 I //iff/HHH/��r/i��a/// HHiHHHHHHH�H/r/eaS SCALE IN RAT /ir"ft./i~i'iii/ ,ih�i�irii//iH,i/i/i/i/iriH/iH/i/ii• CONTOUR INTERVAL:NA //WO MORON B yiiri/ri�iriii�i/iiii//i$$$$)i%rN. I fat/2//iii//e/iii////04v/iri/i////~ilitfth. • I iii, ,,iiiii,,,,,iiiH/.'',',',flf#',r'',*eeiiiii/iiiiiiiiii ,/pillCVa/iir/�"�/• '.��'���i1�C//G/%i�!�/t/.iGw�liCr/w:S WELD COUNTY ROAD NO. 32 0 . " ' STRICT '1 S T R I C T MILESTONE �I�IIII e.,6...eerS..e,•• We Tao rin,%A?ll wmminv ealor.:oulo . ..-- T30J�i3� 5lu EXHIBIT MAP SHT 3'I OF 3 PLOT DATE:3 MAIL 1999 EXHIBIT A [FIGURE 3] Legal Description of District No. 1 Legal Description of a parcel of land being located in Sections 3, 4, 5, 8, 9, 10, 15, 16 and 17, Township 3 North, Range 65 West of the 6th Principal Meridian, Weld County, Colorado being more particularly described as follows: Beginning at the Southeast Corner of said Section 16 and considering the South line of said Section 16 as bearing South 89°27'00" West and with all bearings contained herein relative thereto; thence along said South line South 89°27'00" West 5138.65 feet to the Southeast Corner of said Section 17; thence along the South line of said Section 17 South 89°32'56" West 5327.95 feet to the Southwest Corner of said Section 17; thence along the West line of said Section 17 North 00°29'53" West 5259.39 feet to the Northwest Corner of said Section 17; thence along the West line of said Section 8 North 00°09'44" West 5291.77 feet to the Northwest Corner of said Section 8; thence along the West line of the Southwest Quarter of said Section 5 North 00°25'29" West 2654.03 feet to the West Quarter Corner of said Section 5; thence along the West line of the Northwest Quarter of said Section 5 North 00°24'36" West 1327.22 feet to the Southwest Corner of the North half of the Northwest Quarter of said Section 5; thence along the South line of the North half of the Northwest Quarter of said Section 5 North 89°44'12" East 2631.31 feet to the Southeast Corner of the North half of the Northwest Quarter of said Section 5; thence along the South line of the Northwest Quarter of the Northeast Quarter of said Section 5 North 89°44'12" East 1331.58 feet to the Southeast Corner of the Northwest Quarter of the Northeast Quarter of said Section 5; thence along the East line of the Northwest Quarter of the Northeast Quarter of said Section 5 North 00°39'07" West 1325.38 feet to the Northeast Corner of the Northwest Quarter of the Northeast Quarter of said Section 5; thence along the North line of the Northeast Quarter of said Section 5 North 89°39'32" East 1333.17 feet to the Northeast Corner of said Section 5; thence along the North line of the Northwest Quarter of said Section 4 North 89°45'34" East 2638.09 feet to the North Quarter Corner of said Section 4; thence along the North line of the Northeast Quarter of said Section 4 North 89°24'21" East 805.01 feet; thence departing said North line South 40°04'03" East 9.61 feet to the centerline of the Platte Valley Canal as recorded in Book 1068 under Reception No. 02008616, records of said County; thence along said centerline the following 25 courses and distances; South 10°09'07" West 45.49 feet; thence South 27°01'47" West 281.98 feet; thence South 35°02'43" West 129.95 feet; thence South 46°24'26"West 113.95 feet; thence South 67°56'02" West 114.41 feet to the beginning of a tangent curve concave to the A-1 21°05'52" East 136.12 feet to a point on said Westerly line; thence departing said Westerly line South 05°34'43" East 216.02 feet to a point on said Westerly line; thence along said Westerly line South 40°38'56" East 130.48 feet; thence departing said Westerly line South 06°37'15" West 112.76 feet to a point on said Westerly line; thence along said Westerly line the following 3 courses and distances; South 13°34'14" East 59.67 feet; thence South 35°26'24" East 136.24 feet; thence South 49°59'37" East 73.11 feet; thence departing said Westerly line South 72°03'02" East 149.26 to a point on said Westerly line; thence departing said Westerly line South 28°24'46" East 133.76 feet; thence South 40°21'52" East 122.55 feet; thence South 31°08'20" East 168.24 feet to a point on said Westerly line; thence along said Westerly line the following 2 courses and distances; South 35°26'45"N East 144.84 feet; thence South 52°48'55" East 145.60 feet; thence departing said Westerly line South 53°35'20" East 274.60 feet to a point on said Westerly line; thence departing said Westerly line South 01°31'33" West 75.03 feet to a point on said Westerly line; thence departing said Westerly line South 30°O3'16" West 263.26 feet; thence South 06°03'15" East 282.44 feet; thence South 25°15'47" East 337.55 feet to a point on said Westerly line; thence departing said Westerly line South 23°51'09" East 264.59 feet; thence South 29°30'41" East 174.35 feet to a point on the Easterly line of that certain parcel of land described in deed, recorded in Book 1068 under Reception No. 02008615, records of said County; thence along said Easterly line the following 6 courses and distances; South 37°11'26" East 96.99 feet; thence South 52°03'11" East 69.68 feet; thence South 55°31'12" East 148.65 feet; thence South 16°11'37" East 138.93 feet; thence South 42°52'31" East 177.69 feet; thence South 25°O9'42" East 155.19 feet; thence departing said Easterly line South 24°47'31" East 180.62 feet; thence South 36°43'59" East 146.03 feet; thence South 25°08'23" West 111.15 feet; thence South 02°01'55" East 227.19 feet; thence South 20°03'39" East 193.90 feet; thence South 12°33'0"1 East 346.85 feet; thence South 10°22'6" West 264.13 feet; thence South 05°07'42" West 157.19 feet; thence South 32°32'33 West 220.12 feet; thence South 19°19'41" West 268.66 feet; thence South 38°04'00" West 284.92 feet; thence South 79°43'0" West 714.61 feet; thence South 24°52'12" West 224.67 feet; thence South 07°13'57" East 37.52 feet to a point on the Northerly line of said Section 15; thence along said Northerly line North 89°28'21" East 75.13 feet; thence departing said Northerly line South 00°41'51" East 5263.69 feet to a point on the Southerly line of said Section 15; thence along said Southerly line South 89°48'56" West 358.01 feet to the Southeast Corner of said Section 16; said point also being the TRUE POINT OF BEGINNING; Including that portion thereof platted as Beebe Draw Farms and Equestrian Center First Filing under Revised Plat and Dedication recorded April 12, 1988 in Book 1192 as Reception No. 2137453. The above described parcel contains 4120.472 acres more or less and is subject to the following easements, agreements and rights-of-way. A-4 Deed recorded in Book 512, Page 551, (location of right-of-way cannot accurately be defined per legal description), Deed recorded in Book 655, Page 293, Deed recorded in Book 655, Page 502, Agreement recorded in Book 961, Page 223, Right-of-Way and Easement recorded in Book 1045 under Reception No. 01983413, (location of right-of-way and easement cannot accurately be defined per legal description), Quit Claim Deed recorded in Book 1068 under Reception No. 02008614 (shown hereon), Quit Claim Deed recorded in Book 1068 under Reception No. 02008615 (shown hereon), Quit Claim Deed recorded in Book 1068 under Reception No. 02008616 (shown hereon), Canal Right-of-Way Agreement recorded in Book 1068 under Reception No. 02008617, Quit Claim Deed recorded in Book 1068 under Reception No. 02008618, Quit Claim Deed recorded in Book 1068 under Reception No. 02008619 (shown hereon), Quit Claim Deed recorded in Book 1068 under Reception No. 02008620 (shown hereon), Agreement recorded in Book 1068 under Reception No. 02008621, Right-of-Way recorded in Book 1068 under Reception No. 02008622 (shown hereon), Grazing and Recreational Lease recorded in Book 1068 under Reception No. 02008623, Amendment to Grazing and Recreational Lease recorded in Book 1068 under Reception No. 02008624, Quit Claim Deed recorded in Book 1068 under Reception No. 02008625 (20 foot access easement subject to grazing lease), Right- of-Way easement and Licenses recorded in Book 1068 under Reception No. 02008626, Quit Claim Deed recorded in Book 1068 under Reception No. 02008627 (reconfirms rights previously granted in Book 1045 under Reception No. 10983413), Quit Claim Deed recorded in Book 1068 under Reception No. 02008628 (20 foot permanent access easement), Quit Claim Deed recorded in Book 1076 under Reception No. 02017072 (affects parcels recorded in Book 1068 under Reception No. 02008628, Reception No. 02008620, Reception No. 02008616 and Reception No. 02008627), Quit Claim Deed recorded in Book 1111 under Reception No. 02052204, Quit Claim Deed recorded in Book 1112 under Reception No. 02053446, (Amends Legal in Quit Claim Deed recorded in Book 1068 under Reception No. 02008619), Agreement recorded in Book 1117 under Reception No. 02058723, Grazing and Recreational Lease recorded in Book 1148 under Reception No. 02090926, Order Approving Settlement Agreement recorded in Book 1201 under Reception No. 02147157, Supplemental Declaration recorded in Book 1224 under Reception No. 02170703, (Relocates easement granted in Book 1068 under Reception No. 02008628), Amendment to Grant of Easement Recorded in Book 1268 under Reception No. 02218734, (restates and amends right-of-way and easement recorded in Book 1045 under Reception No. 01983413 and Book 1068 under Reception No. 02008627), Oil and Gas Lease recorded in Book 1327 under Reception No. 02280130 and all other easements, agreements and rights-of-way of record. • A-5 EXHIBIT A [FIGURE 4 - LEGAL DESCRIPTION OF DISTRICT N0. 2] District 2— Legal Description Legal Description of a parcel of land being located in Sections 3, 4, 5, 8, 9, 10, 15, 16 and 17, Township 3 North, Range 65 West of the 6th Principal Meridian, Weld County, Colorado being more particularly described as follows: Beginning at the Southeast Corner of said Section 16 and considering the South line of said Section 16 as bearing South 89°27'00" West and with all bearings contained herein relative thereto; thence along said South line South 89°27'00" West 5138.65 feet to the Southeast Corner of said Section 17; thence along the South line of said Section 17 South 89°32'56" West 5327.95 feet to the Southwest Corner of said Section 17; thence along the West line of said Section 17 North 00°29'53" West 5259.39 feet to the Northwest Corner of said Section 17; thence along the West line of said Section 8 North 00°09'44" West 5291.77 feet to the Northwest Corner of said Section 8; thence along the West line of the Southwest Quarter of said Section 5 North 00°25'29" West 2654.03 feet to the West Quarter Corner of said Section 5; thence along the West line of the Northwest Quarter of said Section 5 North 00°24'36" West 1327.22 feet to the Southwest Corner of the North half of the Northwest Quarter of said Section 5; thence along the South line of the North half of the Northwest Quarter of said Section 5 North 89°44'12" East 2631.31 feet to the Southeast Corner of the North half of the Northwest Quarter of said Section 5; thence along the South line of the Northwest Quarter of the Northeast Quarter of said Section 5 North 89°44'12" East 1331.58 feet to the Southeast Corner of the Northwest Quarter of the Northeast Quarter of said Section 5; thence along the East line of the Northwest Quarter of the Northeast Quarter of said Section 5 North 00°39'07" West 1325.38 feet to the Northeast Corner of the Northwest Quarter of the Northeast Quarter of said Section 5; thence along the North line of the Northeast Quarter of said Section 5 North 89°39'32" East 1333.17 feet to the Northeast Corner of said Section 5; thence along the North line of the Northwest Quarter of said Section 4 North 89°45'34" East 2638.09 feet to the North Quarter Corner of said Section 4; thence along the North line of the Northeast Quarter of said Section 4 North 89°24'21" East 805.01 feet; thence departing said North line South 40°04'03" East 9.61 feet to the centerline of the Platte Valley Canal as recorded in Book 1068 under Reception No. 02008616, records of said County; thence along said centerline the following 25 courses and distances; South 10°09'07" West 45.49 feet; thence South 27°01'47" West 281.98 feet; thence South 35°02'43" West 129.95 feet; thence South 46°24'26" West 113.95 .— feet; thence South 67°56'02" West 114.41 feet to the beginning of a tangent curve concave to the Southeast having a central angle of 43°14'52" and a radius of 210.00 feet;thence Southwesterly 4(4)-1 along the arc of said curve 158.51 feet to the end of said curve; thence tangent from said end of curve South 24°41'10" West 39.72 feet to the beginning of a tangent curve concave to the East having a central angle of 68°10'08" and a radius of 217.23 feet; thence Southeasterly along the arc of said curve 258.45 feet to the end of said curve; thence tangent from said end of curve South 43°28'58" East 159.97 feet to the beginning of a tangent curve concave to the Southwest having a central angle of 48°38'11" and a radius of 81.88 feet; thence Southerly along the arc of said curve 69.51 feet to the end of said curve; thence tangent from said end of curve South 05°09'12" West 19.20 feet to the beginning of a tangent curve concave to the Northwest having a central angle of 25°54'10" and a radius of 260.90 feet; thence Southwesterly along the arc of said curve 117.95 feet to the end of said curve; thence tangent from said end of curve South 31°03'22" West 130.58 feet; thence South 09°40'40" West 95.26 feet; thence South 03°11'43" East 116.07 feet to the beginning of a tangent curve concave to the Northeast having a central angle of 36°30'36" and a radius of 180.24 feet; thence Southeasterly along the arc of said curve 114.85 feet to the end of said curve; thence tangent from said end of curve South 39°42'19" East 116.57 feet to the beginning of a tangent curve concave to the Northeast having a central angle of 45°22'3"and a radius of 4.82 feet; thence Southeasterly along the arc of said curve 90.93 feet to the end of said curve; thence tangent from said end of curve South 85°04'50" East 170.71 feet to the beginning of a tangent curve concave to the Southwest having a central angle of 68°29'30" and a radius of 126.33 feet; thence Southeasterly along the arc of said curve 151.02 feet to the end of said curve; thence tangent from said end of curve South 16°35'20" East 120.95 feet to the beginning of a tangent curve concave to the West having a central angle of 25°35'07" and a radius of 440.41 feet; thence Southerly along the arc of said curve 196.66 feet to the end of said curve; thence tangent from said end of curve South 08°59'48" West 101.24 feet to the beginning of a tangent curve concave to the Northeast having a central angle of 59°32'10" and a radius of 242.34 feet; thence Southeasterly along the arc of said curve 251.82 feet to the end of said curve; thence tangent from said end of curve South 50°32'22" East 97.62 feet; thence departing said centerline North 89°31'39" East 2111.73 feet; thence North 17°52'53" West 380.92 feet; thence North 89°31'39" East 337.87 feet; thence North 00°28'21" West 150.00 feet; thence North 89°31'39" East 1867.95 feet; thence South 00°14'30" West 680.87 feet; thence South 88°49'23" East 78.63 feet; thence South 12°49'39" East 29.72 feet; thence South 77°10'18" West 30.00 feet; thence South 12°49'43" East 30.00 feet; thence North 77°10'18" East 30.00 feet; thence South 12°49'56" East 14.14 feet; thence South 19°27'45" East 607.82 feet; thence South 43°51'20" East 959.22 feet; thence South 11°54'57" East 159.45 feet; thence South 60°05'14" East 1098.46 feet; thence South 22°08'46" East 2187.26 feet; thence South 17°45'43" West 814.40 feet to a point on the Northerly line of that certain parcel of land described in deed as Parcel A, recorded in Book 1068 under Reception No. 02008614, records of said County; thence along said Northerly line the following 5 courses and distances; South 38°04'26"West 66.71 feet; thence South 70°24'28" West 210.50 feet; thence North 65°42'40" West 1366.02 feet; thence North 44°50'58" West 1116.45 A(4)-2 feet; thence South 71°22'10" West 137.84 feet; thence departing said Northerly line South 71°22'10" West 539.96 feet; thence South 43°28'15" East 318.43 feet; thence South 16°14'00" East 175.00 feet; thence South 00°40'00" East 380.00 feet; thence South 27°02'02" West 73.00 feet; thence North 65°16'00" West 155.00 feet; thence North 56°09'00" West 462.00 feet; thence North 68°59'00" West 256.00 feet; thence South 31°13'00" West 248.00 feet; thence South 80°26'00" West 196.00 feet; thence North 65°07'00" West 214.52 feet to a point on the Easterly line of that certain parcel of land described in deed as Exhibit A recorded in Book 1068 under Reception No. 02008614, records of said County; thence along said Easterly line the following 13 courses and distances; North 29°11'51" West 43.34 feet; thence North 35°35'04" West 285.27 feet; thence North 69°49'46" West 52.20 feet; thence North 34°41'43" West 94.87 feet; thence North 40°48'08" East 154.56 feet; thence North 72°48'51" East 101.53 feet; thence North 31°54'29" East 62.43 feet; thence North 17°31'32" East 59.77 feet; thence North 20°04'7" West 110.72 feet; thence North 07°06'02" West 291.23 feet; thence North 11°50'01" West 107.28 feet; thence North 33°54'04" West 150.60 feet; thence North 07°02'17" West 163.23 feet to a point on the Easterly line of that certain parcel of land described in deed as Exhibit B recorded in Book • 1068 under Reception No. 02008614, records of said County; thence along said Easterly line North 36°47'35" East 143.90 feet; thence departing said Easterly line North 57°06'34"West 166.61 feet; thence North 75°57'04" West 582.06 feet; thence North 88°50'24" West 134.11 feet to a point on said Easterly line; thence departing said Easterly line North 27°27'03" West 226.36 feet; thence North 39°26'25" West 223.17 feet to a point on said Easterly line; thence departing said Easterly line North 09°54'20" West 362.45 feet; thence North 17°02'45" West 167.22 feet to a point on said Easterly line; thence departing said Easterly line North 28°46'38" West 241.99 feet; thence North 42°33'43" West 106.54 feet to a point on said Easterly line; thence along said Easterly and Northerly lines of said Exhibit B the following 8 courses and distances; North 61°52'04" West 76.22 feet; thence North 89°17'02" East 139.17 feet; thence North 03°45'51" West 390.32 feet; thence North 70°52'01" West 116.11 feet; thence North 72°17'16" West 122.30 feet; thence North 55°39'25" West 181.68 feet; thence North 31°18'35" West 1063.87 feet; thence South 58°31'52" West 57.39 feet; thence departing said Northerly line South 31°28'08" East 522.19 feet; thence South 10°25'09" East 99.33 feet; thence South 33°45'06" East 157.31 feet; thence South 51°32'58" West 95.52 feet to a point on the Westerly line of that certain parcel of land described in deed as Exhibit A recorded in Book 1068 under Reception No. 02008614 records of said County; thence along said Westerly line the following 3 courses and distances; South 00°23'32" East 177.92 feet; thence South 10°18'17" East 78.26 feet; thence South 30°46'13" East 152.46 feet; thence departing said Westerly line South 47°56'08" East 265.05 feet; thence South 37°58'18" West 164.42 feet; thence South 06°08'48" West 239.20 feet to a point on said Westerly line; thence departing said Westerly line South 33°32'10" East 129.62 feet; thence South 74°20'47" East 218.49 feet to a point on said Westerly line; thence departing said Westerly line South 21°05'52" East 136.12 feet to a point on said Westerly line; thence departing said Westerly line A(4)-3 South 05°34'43" East 216.02 feet to a point on said Westerly line; thence along said Westerly line South 40°38'56" East 130.48 feet; thence departing said Westerly line South 06°37'15" West 112.76 feet to a point on said Westerly line; thence along said Westerly line the following 3 courses and distances; South 13°34'14" East 59.67 feet; thence South 35°26'24" East 136.24 feet; thence South 49°59'37" East 73.11 feet; thence departing said Westerly line South 72°03'02" East 149.26 to a point on said Westerly line; thence departing said Westerly line South 28°24'46" East 133.76 feet; thence South 40°21'52" East 122.55 feet; thence South 31°0820" East 168.24 feet to a point on said Westerly line; thence along said Westerly line the following 2 courses and distances; South 35°26'45"N East 144.84 feet; thence South 52°48'55" East 145.60 feet; thence departing said Westerly line South 53°35'20" East 274.60 feet to a point on said Westerly line; thence departing said Westerly line South 01°31'33" West 75.03 feet to a point on said Westerly line; thence departing said Westerly line South 30°03'16" West 263.26 feet; thence South 06°03'15" East 282.44 feet; thence South 25°15'47" East 337.55 feet to a point on said Westerly line; thence departing said Westerly line South 23°51'09" East 264.59 feet; thence South 29°30'41" East 174.35 feet to a point on the Easterly line of that certain parcel of land described in deed, recorded in Book 1068 under Reception No. 02008615, records of said County; thence along said Easterly line the following 6 courses and distances; South 37°11'26" East 96.99 feet; thence South 52°03'11" East 69.68 feet; thence South 55°31'12" East 148.65 feet; thence South 16°11'37" East 138.93 feet; thence South 42°52'31" East 177.69 feet; thence South 25°09'42" East 155.19 feet; thence departing said Easterly line South 24°47'31" East 180.62 feet; thence South 36°43'59" East 146.03 feet; thence South 25°0823" West 111.15 feet; thence South 02°01'55" East 227.19 feet; thence South 20°03'39" East 193.90 feet; thence South 12°33'0"1 East 346.85 feet; thence South 10°22'6" West 264.13 feet; thence South 05°07'42" West 157.19 feet; thence South 32°32'33 West 220.12 feet; thence South 19°19'41" West 268.66 feet; thence South 38°04'00" West 284.92 feet; thence South 79°43'0" West 714.61 feet; thence South 24°52'12" West 224.67 feet; thence South 07°13'57" East 37.52 feet to a point on the Northerly line of said Section 15; thence along said Northerly line North 89°28'21" East 75.13 feet; thence departing said Northerly line South 00°41'51" East 5263.69 feet to a point on the Southerly line of said Section 15; thence along said Southerly line South 89°48'56" West 358.01 feet to the Southeast Corner of said Section 16; said point also being the TRUE POINT OF BEGINNING; Including that portion thereof platted as Beebe Draw Farms and Equestrian Center First Filing under Revised Plat and Dedication recorded April 12, 1988 in Book 1192 as Reception No. 2137453, except whereas listed in the District 2 Exceptions. The above described parcel contains 4120.472 acres more or less and is subject to the following easements, agreements and rights-of-way. A(4)-4 Deed recorded in Book 512, Page 551, (location of right-of-way cannot accurately be defined per legal description), Deed recorded in Book 655, Page 293, Deed recorded in Book 655, Page 502, Agreement recorded in Book 961, Page 223, Right-of-Way and Easement recorded in Book 1045 under Reception No. 01983413, (location of right-of-way and easement cannot accurately be defined per legal description), Quit Claim Deed recorded in Book 1068 under Reception No. 02008614 (shown hereon), Quit Claim Deed recorded in Book 1068 under Reception No. 02008615 (shown hereon), Quit Claim Deed recorded in Book 1068 under Reception No. 02008616 (shown hereon), Canal Right-of-Way Agreement recorded in Book 1068 under Reception No. 02008617, Quit Claim Deed recorded in Book 1068 under Reception No. 02008618, Quit Claim Deed recorded in Book 1068 under Reception No. 02008619 (shown hereon), Quit Claim Deed recorded in Book 1068 under Reception No. 02008620 (shown hereon), Agreement recorded in Book 1068 under Reception No. 02008621, Right-of-Way recorded in Book 1068 under Reception No. 02008622 (shown hereon), Grazing and Recreational Lease recorded in Book 1068 under Reception No. 02008623, Amendment to Grazing and Recreational Lease recorded in Book 1068 under Reception No. 02008624, Quit Claim Deed recorded in Book 1068 under Reception No. 02008625 (20 foot access easement subject to grazing lease), Right- of-Way easement and Licenses recorded in Book 1068 under Reception No. 02008626, Quit Claim Deed recorded in Book 1068 under Reception No. 02008627 (reconfirms rights previously granted in Book 1045 under Reception No. 10983413), Quit Claim Deed recorded in Book 1068 under Reception No. 02008628 (20 foot permanent access easement), Quit Claim Deed recorded in Book 1076 under Reception No. 02017072 (affects parcels recorded in Book 1068 under Reception No. 02008628, Reception No. 02008620, Reception No. 02008616 and Reception No. 02008627), Quit Claim Deed recorded in Book 1111 under Reception No. 02052204, Quit Claim Deed recorded in Book 1112 under Reception No. 02053446, (Amends Legal in Quit Claim Deed recorded in Book 1068 under Reception No. 02008619), Agreement recorded in Book 1117 under Reception No, 02058723, Grazing and Recreational Lease recorded in Book 1148 under Reception No. 02090926, Order Approving Settlement Agreement recorded in Book 1201 under Reception No. 02147157, Supplemental Declaration recorded in Book 1224 under Reception No. 02170703, (Relocates easement granted in Book 1068 under Reception No. 02008628), Amendment to Grant of Easement Recorded in Book 1268 under Reception No. 02218734, (restates and amends right-of-way and easement recorded in Book 1045 under Reception No. 01983413 and Book 1068 under Reception No. 02008627), Oil and Gas Lease recorded in Book 1327 under Reception No. 02280130 and all other easements, agreements and rights-of-way of record. • A(4)-5 District 2 Exceptions Exception A: Replat of First Filing, Beebe Draw Farms and Equestrian Center, Phase 1, which includes Lots 54-56 (inclusive), 63-67(inclusive), 85-90(inclusive), 92-94(inclusive), 114,115, 119-126 (inclusive), and 139-143 (inclusive). Cumulative area contains 91.759 acres, more or less. Exception B: All of Section 16, Township 3 North, Range 65 West of the 6th Principal Meridian, Weld County, Colorado. Described Section contains 620.687 acres, more or less. District 2 parcel as described and excepted contains 3,407.846 acres, more or less. A(4)-6 EXHIBIT A [FIGURE 5 - VICINITY MAP] 3.e _ _ �s 3a , Ti f w1 I. IN *"""i IMF i 4 I gilhhken y:+ 1 d .. 3x. '-• i. l' WCR 38 , tt o R P1. w silt WCR'32 ' r , - as * I s a 7$ a stuliton'' : IS I Iry * BEEBE DRAW FARMS 0 VICINITY MAP SCALE: 1'=3 miles NORTH EXHIBIT B [TABLE 1 Summary of Capital Expenses CBT Water 4,072,600 Water System - Off Site 370,148 Water System - On Site 3,570,981 Roadway Paving 5,500,619 Roadway Earthwork 2,963,446 Culverts 449,828 Landscaping 807,516 Signage 211,248 Entrance & Administration Buildings 373,970 Clubhouse, Swimming, Tennis 454,199 Marina, Beach, Lake Christina 568,756 Engineering/Supervision 577,591 Contingency 675,182 Total Capital Expenses 20,596,084 i'^ EXHIBIT B [TABLE 2 - PRELIMINARY ENGINEERING SURVEY] BEEBE DRAW FARMS FILING NO. 1 PHASE I 32 Lots Description Quantity Units Unit Cost Cost Roadway Paving 16,337 LF $30.11 $491,907 Earthwork 86,661 CY $2.43 $210,587 Culverts 706 LF $36.00 $25,416 Water System (Per Lot) 32 EA $8,014 $256,435 Off-site Water System 1 LS $259,000 $259,000 Signage (Per Lot) 1 LS $16,400 $16,400 Landscaping (Per Lot) 1 LS $58,364 $58,364 SUBTOTAL $1,318,109 +10% CONTINGENCY $ 131,811 TOTAL $1,449,920 8-1 BEEBE DRAW FARMS FILING NO. 1 PHASE 2 51 Lots Description Quantity Units Unit Cost Cost Roadway Paving 9,944 LF $30.11 $299,417 Earthwork 49,771 CY $2.43 $120,943 Culverts 588 LF $36.00 $21,161 Water System (Per Lot) 51 EA $3,936 $200,736 Signage 1 LS $11,504 $11,504 Landscaping 1 LS $14,000 $14,000 SUBTOTAL $ 667,761 +10% CONTINGENCY $ 66,776 TOTAL $ 734,537 B-2 BEEBE DRAW FARMS FILING NO. 1 PHASE 3 28 Lots Description Quantity Units Unit Cost Cost Roadway Paving 6,646 LF $30.11 $200,111 Earthwork 31,961 CY $2.43 $77,010 Culverts 221 LF $36.00 $7,921 Water System (Per Lot) 28 EA $3,936 $110,208 Signage 1 LS $5,735 $5,735 Landscaping 1 LS $8,000 $8,000 SUBTOTAL $441,888 +10% CONTINGENCY $ 44,189 TOTAL $ 486,077 B-3 '' BEEBE DRAW FARMS FILING NO. 1 PHASE 4 45 Lots Description Quantity Units Unit Cost Cost Roadway Paving 7,810 LF $30.11 $235,172 Earthwork 26,743 CY $2.43 $64,985 Culverts 382 LF $36.00 $13,744 Water System (Per Lot) 45 EA $3,936 $177,120 Signage 1 LS $7,012 $7,012 . Landscaping 1 LS $12,000 $12,000 r SUBTOTAL $ 510,033 +10% CONTINGENCY $ 51,003 TOTAL $ 561,036 B-4 BEEBE DRAW FARMS FILING NO. 1 PHASE 5 32 Lots Description Quantity Units Unit Cost Cost Roadway Paving 6,963 LF $30.11 $209,652 Earthwork 24,120 CY $2.43 $58,612 Culverts 844 LF $36.00 $30,369 Water System (Per Lot) 32 EA $3,936 $125,952 Signage(Per Lot) 1 LS $6,332 $6,332 Landscaping (Per Lot) 1 LS $6,000 $6,000 SUBTOTAL $ 436,917 +10% CONTINGENCY $ 43,692 TOTAL $ 480,609 r B-5 BEEBE DRAW FARMS FILING NO. 2 PHASE I 81 Lots Description Quantity Units Unit Cost Cost Roadway Paving 17,622 LF $30.11 $530,642 Earthwork 122,208 CY $2.43 $297,332 Culverts 1,186 LF $36.00 $42,696 Water System (Per Lot) 81 EA $4,100 $332,100 Signage (Per Lot) 81 EA $250.00 $20,250 Landscaping (Per Lot) 81 EA $750.00 $60,750 SUBTOTAL $1,394,918 +10% CONTINGENCY $ 139,492 TOTAL $1,534,410 B-6 BEEBE DRAW FARMS FILING NO. 2 PHASE 2 36 Lots Description Quantity Units Unit Cost Cost Roadway Paving 7,843 LF $30.11 $236,172 Earthwork 55,397 CY $2.43 $134,781 Culverts 652 LF $36.00 $23,472 Water System(Per Lot) 36 EA $4,100 $147,600 Signage (Per Lot) 36 EA $250.00 $9,000 Landscaping (Per Lot) 36 EA $750.00 $27,000 SUBTOTAL $ 578,295 +10% CONTINGENCY $ 57,830 TOTAL $ 636,125 B-7 BEEBE DRAW FARMS FILING NO. 2 PHASE 3 73 Lots Description Quantity Units Unit Cost Cost Roadway Paving 15,997 LF $30.11 $481,709 Earthwork 109,169 CY $2.43 $265,608 Culverts 1,134 LF $36.00 $40,824 Water System (Per Lot) 81 EA $4,100 $299,300 Signage (Per Lot) 81 EA $250.00 $18,250 Landscaping (Per Lot) 81 EA $750.00 $54,750 SUBTOTAL $1,160,441 +10% CONTINGENCY $ 116,044 TOTAL $1,276,485 B-8 BEEBE DRAW FARMS FILING NO. 2 PHASE 4 105 Lots Description Quantity Units Unit Cost Cost Roadway Paving 21,533 LF $30.11 $648,412 Earthwork 149,349 CY $2.43 $363,366 Culverts 1,392 LF $36.00 $50,112 Water System (Per Lot) 105 EA $4,100 $430,500 Signage (Per Lot) 105 EA $250.00 $26,250 Landscaping (Per Lot) 105 EA $750.00 $78,750 SUBTOTAL $1,597,390 +10% CONTINGENCY $ 159,739 TOTAL $1,757,129 B-9 BEEBE DRAW FARMS FILING NO. 2 PHASE 5 38 Lots Description Quantity Units Unit Cost Cost Roadway Paving 9,372 LF $30.11 $282,214 Earthwork 58,806 CY $2.43 $143,075 Culverts 806 LF $36.00 $29,016 Water System (Per Lot) 38 EA $4,100 $155,800 Signage (Per Lot) 38 EA $250.00 $9,500 Landscaping (Per Lot) 38 EA $750.00 $28,500 SUBTOTAL $ 648,087 +10% CONTINGENCY $ 64,809 TOTAL $ 712,896 B-10 BEEBE DRAW FARMS FILING NO. 2 PHASE 6 77 Lots Description Quantity Units Unit Cost Cost Roadway Paving 14,080 LF $30.11 $423,983 Earthwork 82,750 CY $2.43 $201,331 Culverts 760 LF $36.00 $27,360 Water System (Per Lot) 77 EA $4,100 $315,700 Signage (Per Lot) 77 EA $250.00 $19,250 Landscaping (Per Lot) 77 EA $750.00 $57,750 SUBTOTAL $1,045,374 +10% CONTINGENCY $ 104,537 TOTAL $1,149,911 B-11 BEEBE DRAW FARMS FILING NO. 2 PHASE 7 126 Lots Description Quantity Units Unit Cost Cost Roadway Paving 23,912 LF $30.11 $720,049 Earthwork 160,481 CY $2.43 $390,450 Culverts 1,518 LF $36.00 $54,648 Water System (Per Lot) 126 EA $4,100 $516,600 Signage (Per Lot) 126 EA $250.00 $31,500 Landscaping (Per Lot) 126 EA $750.00 $94,500 ta- SUBTOTAL $1,807,747 +10% CONTINGENCY $ 180,775 TOTAL $1,988,522 B-12 EXHIBIT C [TABLE 1] Build-out Schedule Year Number of Units 1999 81 2000 28 2001 62 2002 90 2003 100 2004 100 2005 100 2006 100 2007 63 724 '^ EXHIBIT C [TABLE 2] ASSESSED VALUATION Year Aggregate Units Assessed Valuation Mill Levy Total Taxes 1998 0 6,449,480 40 257,979 1999 0 6,755,200 40 270,208 2000 0 5,294,884 40 211,795 2001 54 6,131,672 40 245,267 2002 • 99 6,839,643 40 273,586 • 2003 164 8,056,316 40 322,253 2004 244 9,692,095 40 387,684 2005 344 11,833,796 40 473,352 2006 444 13,976,637 40 559,065 2007 544 16,159,455 40 646,378 2008 644 18,357,450 40 734,298 2009 724 20,044,125 40 801,765 2010 724 19,847,525 40 793,901 2011 724 19,649,425 40 785,977 2012 724 19,478,600 40 779,144 2013 724 19,274,650 40 770,986 2014 724 18,140,900 40 725,636 2015 724 17,629,400 40 705,176 2016 724 17,629,400 40 705,176 2017 724 17,629,400 40 705,176 2018 724 17,629,400 40 705,176 EXHIBIT D [WATER SERVICE AGREEMENT) r AGREEMENT FOR WATER SERVICE This Agreement for Water Service ( "Agreement" ) is made and entered into as of this 27th day of June, 1995, by and between CENTRAL WELD COUNTY WATER DISTRICT ( "Water District" ) , BEEBE DRAW FARMS METROPOLITAN DISTRICT ( "Metro District" ) , each of such Districts being Colorado special districts located in Weld County, and REI LIMITED LIABILITY COMPANY ( "Company" ) , a Wyoming limited liability company doing business in Colorado as Investors Limited Liability Company. WHEREAS, Water District is organized as a special district pursuant to Section 32-1-101, et seq. , C.R.S . , to furnish treated water within its jurisdictional boundaries; and WHEREAS, Water District purchases water from the Carter Lake Filter Plant, a Colorado municipal corporation, which acquires raw water from the Northern Colorado Water Conservancy District ( "Northern District" ) and its Municipal Subdistrict ( "Northern Subdistrict" ) in accordance with certain agreements between such entities; and WHEREAS, Metro District is organized as a special district pursuant to Section 32-1-101, et seq. , C.R.S. , to furnish treated water, recreation, roads, and related services within its jurisdictional boundaries; and WHEREAS, Company is the owner of certain real property, as is more specifically described in Exhibit A attached hereto and incorporated herein, zoned and platted as an 800-unit residential development commonly referred to as Beebe Draw Farms and Equestrian Center ( "Property" ) , and desires to receive treated water service for the Property from the Water District or Metro District; and WHEREAS, the Property comprises all of the territory within the Metro District, is not currently within the jurisdictional boundaries of the Water District, but was included into the jurisdictional boundaries of the Northern Subdistrict on March 27, 1986 ; a petition for inclusion of the Property into the Northern District itself is pending final approval by the Secretary of the United States Department of Interior or his delegate; and WHEREAS, Water District, Metro District and Company have determined that the Property can be most efficiently and effectively furnished treated water service by the Water District exclusively utilizing raw water supplied by the Northern District or Northern Subdistrict in accordance with the terms and conditions of service set forth in this intergovernmental contract, which also provides in part for the joint exercise of statutory powers by each District pursuant to Section 29-1-203 , C.R. S . , with the full consent and approval of the Company, THEREFORE, in consideration of the mutual covenants, agreements, and promises hereinafter set forth, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows : 1 . The Water District shall exclusively furnish treated water service to the Property in accordance with Water District rules and regulations and line extension policies as now adopted or as hereafter may be adopted by the Water District for all its customers, except as otherwise specifically provided herein. All such rules, regulations, and rates, fees, and charges of the Water District relating to water service to the Property shall be applied uniformly among similar users within the jurisdictional boundaries of the Water District, including the Property, except as otherwise specifically provided herein. The Water District may, however, establish different rates and other criteria for service within areas of the Water District as provided by statute . The Metro District will not provide treated water service to the Property. 2 . The Metro District or Company shall pay for and provide all water mains and related facilities either within or without the boundaries of the Metro District in order to furnish water service to the Property. The Water District must give its prior written 2 approval to all construction by the Metro District or Company, or its contractors, upon terms approved by the Water District . A. The Water District must approve such construction by the Metro District or Company, or its contractors, by subsequent written agreement providing for the terms of such installation, including requirements that the materials used shall meet all standards of the Water District and that provides for inspection by the Water District of the construction of such water mains and facilities . The cost of all construction shall be paid by the Metro District or Company to the Water District or to the contractors, as the case may be . B. If construction is performed by the Water District or its contractors, a deposit in the amount hereafter specified shall be paid by the Metro District or Company to the Water District as an advance towards the construction cost of such installation. After completion of such construction and acceptance by the Water District, a final adjustment of costs will be made, if necessary. In the event that it is determined that the deposit is insufficient to cover the estimated cost of construction, then the Metro District or Company shall pay to Water District, on demand, additional advances towards the cost of construction. C. The Metro District shall pay a nonrefundable contribution in aid of construction for all offsite transmission and water storage facilities used to furnish water service to the Property in the amount of $300, 000 . No other capital contributions shall be required, except for the actual cost of water mains and appurtenant facilities specified herein. Such contribution in aid of construction shall be paid (i) at such time as the Water District or Metro District has acquired and transferred the raw water supply from the Northern District or Northern Subdistrict 3 to the Water District as hereinafter provided, or (ii) on July 1, 1997, whichever event occurs first . In the event such contribution in aid of construction is not paid for any reason, then this Agreement shall terminate and be of no further force or effect, unless the Water District extends such payment date by written notice . D. If the installation is constructed by the Metro District or Company, or its contractors, the Metro District or Company shall transfer all right, title, and interest in and to such facilities installed as well as necessary easements and appurtenances and related property rights to the Water District by good and sufficient assignment or bill of sale with warranties of title and by general warranty deed. Such transfer shall be made free and clear of all liens and encumbrances . The Metro District or Company shall furnish sufficient evidence of title with a "Form 100" endorsement to a standard ALTA title policy, if required by the Water District . The Metro District or Company shall furnish appropriate lien releases or a good and sufficient bond in form acceptable to the Water District in order to insure that all construction costs have been paid in full . All labor and materials shall be warranted for defects of any kind by the Metro District or Company, or its contractors, for two years from the date of written acceptance of such facilities by the Water District . The Water District, upon receipt of the documents of transfer and evidence of title, shall consider whether to accept or reject the installation: If the Metro District or Company has complied with the applicable provisions of this Agreement and all other conditions precedent to the acceptance of such facilities, the Water District shall approve and accept the transfer and shall thereafter assume all operation, maintenance, repair and replacement of such facilities . In no event shall the Water District assume any ownership, operation, or maintenance of any 4 installation on the service side of a customer' s meter installation. E. The design and fire flow of the water facilities installed to serve the Property shall be subject to review and comment by the fire protection authority with jurisdiction over the Property prior to installation of such facilities . 3 . The Water District will sell water taps in accordance with the terms of this Agreement and Water District rules and regulations for improvements constructed on the Property within the Metro District upon a customer' s application for service and payment of all fees and charges set forth in Water District rules and regulations, subject to the general availability of such water taps and the reasonable responsibility of the Water District to furnish treated water service to the Property recognizing that temporary interruptions of water service may occur. If the Water District cannot furnish an adequate raw water supply for the development of the Property, the Metro District or Company shall acquire adequate raw water supplies for each phase of development of the Property from the Northern District or Northern Subdistrict in accordance with their established policies or from other sources acceptable to the Water District and transfer such water supplies to the Water District for service to the Property in accordance with Water District rules and regulations; provided that, the Metro District may reuse all water acquired and transferred from the Northern Subdistrict to the Water District for irrigation of Metro District recreational facilities or other District purposes, subject to all applicable reuse regulations of the Northern Subdistrict . In order to provide raw water supplies for the Property as herein provided, the Metro District or Company agree to transfer the units of Northern District or Northern Subdistrict water rights so acquired to the Water District for such purpose . The total value of such units shall be applied as a credit against the raw water fee of the Water District at the time of issuance of each such tap; the customer shall pay only the capital improvement 5 fee component of the Water District tap fee and other standard charges due at the time of the tap installation. The Water District will be obligated to serve no more than 800 residential equivalent units on the Property for which an adequate supply has been furnished by the Metro District or Company in accordance with all terms set forth herein. In addition to the rates, fees and charges of the Water District, the Metro District may impose fees and charges to customers within the Metro District for water and facilities furnished by the Metro District, and such fees and charges shall be collected by the Water District from such customers at the time of issuance of water taps and remitted to the Metro District . 4 . Customers within the Water District and Metro District shall commence payment of the uniform rates of the Water District , including minimum fees, on the date of setting of the water meter and the availability of water for use at the tap . 5 . The terms of this Agreement shall apply only to the Property, and the water taps provided in accordance herewith may be used only upon the Property which must be located within the jurisdictional boundaries of the Metro District and Water District . The parties hereto agree that this Agreement shall be an intergovernmental service contract subjecting the Property to all terms, provisions, and limitations set forth herein, which Agreement may be recorded establishing covenants running against the Property itself . 6 . The Company shall provide the Water District with an accurate copy of the final plat of the Property to be served by the Water District . If the plat must be approved by the County Commissioners, then a copy of the final plat recorded with the County Clerk must be provided to the Water District . 7 . The Company hereby grants to the Water District and Metro District the right to enter upon the Property and all roads, rights-of-way, g y, and utility easements described on the final plat of 6 the Property to construct, operate and maintain the facilities herein described, together with the right of ingress and egress and the right to cut and trim trees and shrubbery to the extent necessary. The Company shall convey to the Water District all easements reasonably required by the Water District for facilities which are not located in dedicated roads, rights-of-way, or utility easements, on the District' s form of easement, and the Water District shall not be responsible for any delay in providing service to the Property in the event of failure to provide such easements . This provision of the Agreement shall be specifically enforceable by the Water District . 8 . The water facilities herein described are required by dates to be subsequently specified by the Metro District and Company. In the event the Water District installs any such facility, the Water District shall use reasonable diligence in completing such facility by the specified date . If such facilities cannot be installed because of act of God, governmental authority, action of the elements, accident, strikes, labor trouble, inability to secure materials or equipment, or any cause beyond the reasonable control of the Water District, the Water District shall not be liable therefor or for damages caused thereby. 9 . In the event that the Water District installs such facilities, the Water District shall install the facilities described herein in accordance with good engineering and construction practices after the Company has established platted property lines and the Metro District has excavated streets, rights-of-way, and easements to final grade and prior to the paving of streets and construction of curbs and gutters, if applicable . The Metro District or Company, as applicable, shall reimburse the Water District for any expense due to subsequent changes made by the Metro District or Company. 10 . Water service shall be provided to individual customers on the Property located within the Metro District at the applicable rates adopted from time to time by the Water District for all 7 customers within the jurisdictional boundaries of the Water District in accordance with Water District rules and regulations as now established or as may hereafter be established. On or before the date that payment is made as required in Paragraph 2 . C. of this Agreement, the Company agrees to petition to the Water District to include the Property into the Water District and to pay all costs associated with the inclusion process and to do all other necessary acts to include the Property within the Water District . If the Metro District and Water District determine that it is necessary and desirable to acquire Colorado-Big Thompson water units ( "CET Water" ) from the Northern District to serve the Property, the Company also agrees to petition to the Northern District to include the Property into the Northern District and to pay all costs associated with the inclusion process and to do all other necessary acts to include the Property into the Northern District . No water service shall be provided except to the Property included within the boundaries of the Metro District, Water District, Northern Subdistrict , and if CBT water is to be utilized thereon, Northern District . All parties agree that no other person or property shall be permitted to receive such water service which is to be furnished only to the Property in accordance with terms and provisions of this Agreement . 11 . The Water District agrees to allow installation of 800 residential equivalent water taps (with no more than 100 tap installations per year, unless specifically approved by the Water District) within the Property which shall be located within the Water District and Metro District, subject to all terms and provisions of this Agreement . All water taps greater than five- eighths inches shall be approved by the Water District . No water taps will be served by the Water District until all applicable terms and conditions of this Agreement have been complied with by the Metro District and Company, including the transfer of the above-described water rights . The Water District acknowledges and agrees that the Property will be developed in various phases and that all such water supplies , mains and related facilities specified in this Agreement shall be acquired, provided, and 8 transferred to the Water District incrementally according to each developmental phase as approved by the Water District, which approval shall not be unreasonably withheld. The water taps furnished hereunder may be used only on the Property which is located within the Metro District, unless otherwise expressly approved in writing by the parties hereto. Any transfer of water taps to other property shall be made in accordance with the terms of a supplemental written agreement and the requirements of the Water District and its rules and regulations . Any right to receive a water tap option or water rights credit under this Agreement, whether upon the Property or at any other place, shall expire and become null and void twenty years after the date of this Agreement ; provided that, after such date the Metro District shall have a perfected right to obtain a water tap from the Water District for use within the Property if (i) raw water supplies therefor have been acquired by the Metro District or Company and transferred to the Water District, (ii) the monthly minimum charge (inactive service status) for such water tap is paid to the Water District, and (iii) the Metro District and Company comply with all other Water District rules and regulations . The Metro District and Company shall not encumber, mortgage, or collaterally assign such water tap without the prior written consent of the Water District . The Metro District and Company shall not encumber, mortgage, or collaterally assign such water taps without the prior written consent of the Water District . In all other respects, such water taps or water rights credits shall be treated as the personal property of the Metro District or Company, as applicable. 12 . The Metro District, Company, and future customers within the Property agree to abide by all rates and rules and regulations of the Water District as now established or as may hereafter be established by the Water District; provided that all such rates, rules and regulations shall be uniform throughout the Water District and consistent with the express terms and provisions of this Agreement; provided, however, that the Water District may establish different rates and other criteria for service within areas of the Water District as provided by statute. The Water 9 District shall not be liable for any injury or damage for failure to deliver water for any reason, including but not limited to war, riot, insurrection, Act of God, or breaks or failure of the water system. 13 . This Agreement may be amended from time to time by a written agreement between the parties hereto signed by the duly authorized representatives of such parties. No agent or representative of the Water District or Metro District has the power to amend, modify, alter or waive any provision of this Agreement . Any promise, agreement or representation made by an agent or representative of the Water District or Metro District not herein set forth shall be void and of no further force or effect . 14 . The Metro District and Company understand and agree that all fees, rates, tolls, penalties or charges for services, programs, or facilities furnished by the Water District in accordance with the terms of this Agreement constitute a perpetual lien on the portion of the Property served, and that such lien may be foreclosed in the manner provided by State law, pursuant to Section 32-1-1001 (1) (j ) , C.R.S. In the event that the Metro District, Company or any individual customer, as applicable, fails to abide by any of the terms or conditions of this Agreement, the applicable party which is responsible therefor shall pay all costs and expenses incurred by the Water District as a result of any such breach, including direct and consequential damages, loss of revenue, attorney fees, court costs, expert witness fees, and other expenses . 15 . This Agreement shall be binding upon and inure to the benefit of the heirs, personal representatives, successors, and assigns of the parties hereto. Except as provided herein, this Agreement shall not be assigned without the prior written consent of the Water District . 10 16 . The Agreement dated October 30, 1985, between the Water District and Beebe Draw Land Company, Ltd. , relating to the Property has been terminated in accordance with its terms and is no longer effective . The Metro District and Company acknowledge and agree that such Agreement is terminated and of no further force or effect . IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. CENTRAL WELD COUNTY WATER DISTRICT Byy /h.in aft r sident "� ( S E A L ) Attest : �yyr,n.t. . V(/ /�J Secretary J- Date : ate 20 , 1995 STATE OF COLORADO ) ss . COUNTY OF The fore oing instrument was acknowledged before 71,1.: �9-44C day of S,r , 1995, by zran .., f '7 , as President and i—a.-0-14.c..0 as Secretary of the Central Weld County Water District . Witness my hand and official seal . My commission expires : l/g 3D /997 UU J d . CeikeAdo , Notary b4 i��Zlic r 11 BEEBE DRAW FARMS METROPOLITAN DISTRICT 'co KET16 By e- ..•-•4,-..,...6 a. ..ti `: Ja e W ell, si•ent " :1 liZ . Z � 'y ?. Atte . : amt: -` •'•4J� ? Thomas A. Burk, Secretary 3 j a•'e `�'yb r ,'tip4e��0 y Date : June 27, 1995 '....Rjn...,p• STATE OF COLORADO ) ss . COUNTY OFJEFFERSON ) The foregoing instrument was acknowledged before me this 27th day of June, 1995, by James W. Fell as President and Thomas A. Burk as Secretary of the Beebe Draw Farms Metropolitan District . Witness my hand and official seal . `l- ,My ommission expires : 11/30/96Ar..." id;)" ..•'‘. • ----)11, . p 0�10 1�� o • L4? ` Notary Public kw x '1 12 REI LIMITED LIABILITY COMPANY, dba Investors Limited Liability Company n By Ianager i./ Date : i 7 , 1995 STATE OF COLORADO ) ss . COUNTY OF J FF-ER,S� 3 ) Fi The oregoing instrument was acknowledged before me this a day of JUV� , 1995, by Rollie. k. Ice (Icy as Manager of the REI Limited Liability Company, a Wyoming limited liability company doing business in Colorado as Investors Limited Liability Company. .-, .-p-w tli i1ess my hand and official seal . i S.!' ` �.' ith scion expires : ll 30l9 a J . _ .\ Nom" oCif ' Notary Public 4. • Q' 13 EXHIBITA Legal Description of Company Property The Property of Company referred to in the foregoing Agreement for Water Service is situated in Weld County, Colorado, and is more specifically described in that certain Sheriff's Deed dated June 17, 1994, recorded in the County records at Book 1447, Folio 0575, Reception No. 02393929, a copy of which is attached hereto as Exhibit A-1 and incorporated herein by reference. EXHIBIT A • B 1447 REC 02393929 06/17/94 16:25 $70.00 1/014 '^ F 0575 MARY ANN YBUERSTEIN CLERK & RECORDER WELD CO,• CO AR2393'129 DISTRICT COURT, WELD COUNTY, COLORADO Case No. 93 CV 214, Courtroom I SHERIFF'S DEED HSI LIMITED LIABILITY COMPANY, a Wyoming limited liability company, doing business in Colorado as INVESTORS LIMITED LIABILITY COMPANY, Plaintiff, V. • BEEBE DRAW FARMS, LTD. , a Colorado limited partnership; DRS. ELLIOTT, HALSETH & WALKER, P.C. , FROZEN PENSION PLAN, formerly known as DRS. ELLIOTT, HALSETH & WALKER, P.C., DEFINED BENEFIT PENSION PLAN, also known as DRS. ELLIOTT, HANSETH & WALKER DEFINED BENEFIT PENSION PLAN, a trust; LANDE MANUFACTURING COMPANY RETIREMENT' PLAN AND TRUST, a trust; DARREL BENSON; WILLIAM S. GRIPMAN; W. GERALD RAINER, M.D.P.C. EMPLOYEES DEFINED BENEFIT PENSION PLAN, a trust; COLORADO CONTAINER CORPORATION EMPLOYEES DEFERRED PROFIT SHARING TRUST, a trust; RICHARD E. SLAUGHTER; RICHARD E. DAMIANO; C. L. PHILLIPS & ASSOCIATES, INC. PROFIT SHARING PLAN, a trust; COLORADO CONTAINER CORPORATION PENSION TRUST, a trust; ROLLIE R. KELLEY; BEEBE DRAW CATTLE CO., ai Colorado limited partnership; and JAMES K. KADLECEK, as the Public Trustee in and for Weld county, Colorado; Defendants. THIS DEED is made June 17, 1994, between ED JORDAN as the Sheriff of the County of Weld, State of Colorado, and REI LIMITED LIABILITY COMPANY, a Wyoming limited liability company, doing business in Colorado as INVESTORS LIMITED LIABILITY COMPANY, grantee, the holder of the certificate of purchase, whose legal address is 4221 Monaco Street, Denver, Colorado 80216. WHEREAS, REI LIMITED LIABILITY COMPANY, a Wyoming limited liability company, doing business in Colorado as INVESTORS LIMITED LIABILITY COMPANY, did, in the District Court for the County of Weld, Colorado, obtain a judgment and decree against BEEBE DRAW FARMS, LTD. , dated January 14, 1994, directed to the Sheriff of the County of Weld, Colorado; and WHEREAS, by virtue of said judgment and decree, the Sheriff levied upon the property hereinafter described and, after public notice had been given of the time and place of 0CT 21 '94 10:00 3035340514 PAGE.002 B 1447 BBC 02393929 06/17/94 16:25 ;70.00 2/014 P 0576 MARY ANN FEUERSTEIN CLERK & RECORDER WILD CO, CO sale as required by law, said property was offered for sale and sold according to said notice, and a certificate of purchase was made and recorded in the office of the County Clerk and Recorder; and WHEREAS, all periods of redemption have expired; NOW, THEREFORE, I, ED JORDAN, Sheriff of the County of Weld, Colorado, in consideration of the premises, confirm the sale and sell and convey to grantee the following described property located in the, County of Weld, State of Colorado, more particularly described in Exhibit A, attached hereto, consisting of twelve (12) pages, incor- porated herein by this reference as though fully set forth, and including all land lying in the bed of any street, road, avenue, alloy, stream or river, in front of or adjoining the property; all buildings, structures and improvements now on the property, and all fixtures, equipment, appliances and furnishings attached thereto; all proceeds of the conversion, voluntary or involuntary, of any of the foregoing into cash or liquidated claims, including, without limitation, proceeds of insurance and condemnation awards; all the rights (including water rights and shares of water stock) , permits, hereditaments and appurtenances thereto belonging or in any way appertaining; and all the rents, issues, uses, profits and income from the property. TO HAVE AND TO HOLD the same, with all appurtenances, forever. ED JORDAN, Sheriff of the County of Weld, Colorado STATE Da ,• r STATE OF COLORADO se. COUNTY OF WELD ) The foregoing instrument was )ARcknowledg before me as this /IT- day of June, 1994, by // V .55 peputy Sheriff of the County of Weld, Colorado. I y.. : �; .Witness my hand and official seal. $7 commission expires: /Q-ea 4c , N• ' -ryPubl 2 • 0CT 21 '94 10:01 3035340514 PAGE.003 • B 1447 REC 02393929 06/17/94 16:25 $70.00 3/014 P 0577 MARY ANN PEVERSTEIN CLERK & RECORDER WELD CO, CO EXHIBIT A TO SHERIFF'S DEED A tract of land located in Sectipns 3, 4, S, 1, 5, 10, 15, 16, and 17, Township 3 North, Range 65 West of the Sixth Principal Meridian, Veld • County. Colorado, being more particularly described as follows; Beginning at the Southeast Corner of said Section 16 and considering the ' South line of said Section 16 to bear S 89. 27' 03• V with all bearings herein being relative thereto; • Thence along the South line of said Section 16, S 89' 27' 03' V, 5139.13 feet to the Southeast Corner of said Section 17; • Thence along the South line of said Section 17, S 89' 33' 00' V, 5325.46 feet to the Southwest Corner of said Section 17; • Thence along the Vest line of said Section 17, M 00' 29' 57' V, 5259.91 feet to the Northwest Corner of said Section 17; • Thence along the Vest line of said Section I, N 00' 09' 35' W, 5292.39 feet to the Northwest Corner of said Section 5; Thence along the West line of said Section 5, N 00' 24' 57' V, 3961.69 feet • .to the Southwest Corner of the North Half of the worhwest•Querter of said • Section 5; Thence along the South line of said North Half of the Northwest *tartar of • Section S N 89' 44' 30' E, 2631.54 feet to the Southeast Corner of the North Half of the Northwest Quarter of said Section Si Thence along the South line of the Northwest Quarter of the Northeast Quarter of said Section 5 M 89' 44' 27' E, 1331.69 feet to the Southeast • Corner of the Northwest Quarter of the Northeast Quarter of said Section 5; •— • •—Thence along the last line of the Northwest Quarter of the Northeast Quarter.: of said Section 5 N 00' 38' 12' V, 1325.38 feet to the Northeast Corner of the Northwest Quarter of the Northeast Quarter of said Section 5; Thence alone the North line of said Section 5, N 89. 40' 15' 5, 1333.11 feet to the Northeast Corner of said Section 5; Thence along the North line of said Section 4, N 89' 35' 05' C, 3438.49 feet to the Point of Intersection of the North line of said Section 4 with the • centerline of the Platte Palley Canal; • • Page 1 of 12 0CT 21 '94 10:02 3035340514 PRGE.004 B 1447 RBC 02393929 06/17/94 16:25 .70.00 4/014 F 0578 NARY ANN 118118R8TBIN CLBRK & RSCORDBR WELD CO, CO Thence $ 40' 04' 03' E, 16.11 feet; Thence along the centerline of the Platte Valley Canal as recorded in loot • 1068, Reception No. 02008616 of the Veld County Records, by the following 25 courses: 1 • S 10' 09' 07' V, 45.49 feet; • 2 • S 27' 01' 41' V, 281.98 feet; 3 • S 35' 02' 43' V, 129.95 feet; • ' 4 • S 46' 24' 26' V, 113.95 feet; . $ - S 67' 56' 02' V, 114.41 feet; 6 - 158.51 feet along the arc of a curve to the left, having a central • angle of 43' 14' 52' and a radius of 210.00 feet, and a long chord that beers S 44' 18' 36' V, 154.78 feet; • 7 - S 24' 41' 10' V, 39.72 feet; 8 • 252.45 feet along the arc of a curve to the left, having a central angle of 68' 10' 08' and a radius of 217.23 feet, and a long chord ' that bears S 09' 23' 54' E. 243.48 feet; • • 9 • S 43' 28' 58' E, 159.97 feet; • 10 • 69.50 feet along the arc of a curve to the light, having a central Cr angle of 38 11', and a radius of 81.88 feet, and a long chord that bears S 19' 09' 53' E. 67.43 feet; 11 • SOS' 09' 12' V. 11.20 Test;* ' . ._.... —. .• •• • - - . ' -- - _ — . • 12 • 117.95 feet along the arc of a curve to the right, having a central angle of 25' 54' 10', and a redly' of 206.90 feet, and a long chord . that bears S 18' 06' 17' V, 116.15 feet; ' 13 • S 31' 03' 22" V, 130.58 feet; 14 . S 09' 40' 40' V, 95.26 feet; 15 . S 03' 11' 43' E, 116.07 feet; 16 • 114.85 fest along the are of a curve to the left, having a central angle of 36' 30' 36', and a radius of 180.24 feet, and a long chord that been S 21' 27' 01' E, 112.92 feet; ee- Page 2 of 12 OCT 21 '94 10:03 3035340514 PAGE.005 • C� B 1447 REC 02393929 06/17/94 16:25 $70.00 5/014 7 0579 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO 17 . S 39' 42' 18' E, 116.57 feet; 18 - 90.93 feet along the arc of a curve to the left, having a central angle of 45' 22' 31', and a radius of 114.12 feet, and a long chord that bears S 62' 23' 34' E, 88.17 feet; 19 - $ 85' 04' 50' 1, 170.71 feet; . 20 • 151.01 feet along the arc of a curve to the right, having a central angle of 68' 29' 30' and a radius of 126.33 feet, and a long chord that bears S 50' 50' 04' E, 142.18 feet; 21 - S 16' 35' 19' E, 120.95 feet; • 22 • 196.65 feet along the arc of a curve to the right, having a central angle of 25' 35' 07' and a radius of 440.41 feet, and a long chord that bears S 03' 47' 46" E, 195.04 feet; 23 - 3 08' 59' 48' V, 101.24 feet; 24 - 251.82 feet alone the arc of a curve to the left, having a central anole of 59' 32' 10', a radius of 242.34 feet, and a long chord that bears S 20' 46' 36' E, 240.64 feet; 25 • S 50',•32' 21' Is 97.59 feet; • . Thence M 84' 31' 39" E, 2111.76 feet; ' Thence N 17' 52' 53' V, 340.92 feet; Thence M •89' 31' 39' E, 337.81 feet; Thence N O0' 28' 21' V, 150.00 feet; . .. _ . _. Thence N 89' 31' 39' E, 1867.95 feet; • Thence 5 00' 14! 30' V, 680.87 feet; Thence 5 88' 41' 23' E. 78.63 feet; Thence S 12' 49' 39' E, 21.72 feet; . • Thence $ 77' 10' 18' V. 30.00 feet; , Thence S 12' 49' 43' 1, 30.00 feet; • Thence N 77' 10' 18' E. 30.00 feet: Page 3 of 12 0CT 21 '94 10:03 3035340514 PAGE.006 •. yam( \ t B 1447 REC 02393929 06/17/94 16:25 $70.00 . 6/014 F 0580 MAY ANN YEUERSTEIN CLRRE & RECORDER WELD CO, CO • • : Thence 5 12' 49' 56' E, 14.11 feet; Thence S 19' 28' 28' E. 608.59 feet; Thence S 43' 52' 15' E, 959.19 feet; Thence S 11' 49' 10' E, 159.59 feet; • Thence $ 60' 06' 36' E, 1097.85 feet; Thence S 22' 11' 13' E. 2189.07 feet; Thence S 17' 55' 41" w, 814.01 feet to a point on the north line of a tract of land described as Parcel "A' in look 1066 under Reception No. 02008614 of the Weld County Records; Thence along said north line by the following 5 courses: 1 - S 38' 04' 26' V, 66.71 feet; 2 - S 70' 24' 28' w, 210.50 feet; 3 - N 65' 42' 40' V, 1366.02 feet; • • 4 - N 44' 48' 50' w, 1115.90 feet; 5 - S 71' 20' CO' V. 138.08 feet;. Thence S 71' 20' 00' V, 140.88 feet; Thence S 43' 34' 00' E. 318.00 feet; Thence S 16' 14' 00' E, 175.00 feet; ' Thence S 00' 40' 00' t, 360.00 feet; Thence $ 27' 02' 02' U, 13.00 feet; Thence N 65' 16' CO' U, 155.00 feet; . Thence N 56' 09' 00' V, 462.00 feet; Thence N 68' 59' 00" W, 256.00 feet; Thence S 31' 13' 00' V, 248.00 feet; • Thence S 8O' 26' CO' M, 194.00 feet; • • Page 4 of 12 OCT 21 '94 10:04 3035340514 PRGE.007 • (Th 8 1447 RBC 02393929 06/17/94 16:25 $70.00 7/014 F 0581 MARY ANN FEUERSTEIN CLERK & RECORDER WELD CO, CO Thence N 65' 07' 00' V. 214.52 feet to a point on the east boundary of a tract of land described in Exhibit 'A', look 1068, Reception No. 02008614 of the Weld County Records; Thence along said east boundary by the following 13 Courses: 1 - N 29' 11' 51' V, 43.31 feet; • 2 - N 35' 35' 04' V. 285.27 feet; • 3 • N R9' 49' 46' V, 52.20 feet; " 4 • N 34' 41' 43' V, 94,87 feet; 5 - N 40' 48' 08' E, 154.56 feet; . • 6 - N 72' 48' 51" E, 101.53 feet; • 7 - N 31' 54' 29' E, 62.13 feet; 8 - N 17' 31' 32' E. 59.77 feet; 9 - N 20' 04' 17' V, 110.72 feet; 10 - N 07' 06' 02" V, 291.23 feet; '11 - N 11' 60' 01' V, 107.26 feet; . 12 • N 33' 51' 0.• V. 150.60 feet; 13 - N 07. 02' 17' V, 163.23 fest to a point on the east boundary of a tract of land described in Exhibit 'N', look 1068, Reception N0. 02008614 of the Weld County Records; Thence along said east boundary, and alone the northerly and a portion of the westerly boundary of said tract of land by the'followine $6 courses: • • • • • - •.- - - •_... . • • • _ 1 - N 36' 47' 35' E, 143.90 feet; 2 - N 57' 06' 34' V, 102.50 feet; 3 - N 65' 59' 14" i1, 50.60 feet; • ' 4 - N 69' 22' 13' V, 50.23 feet; 5 - M 71' 52' 38' V, 50.07 feet; ' 6 - N 74' 30' 37' V. 50.00 feet; 7 - N 77' 01' 49' V. 50.04 feet; Pegs S of 12 0CT 21 '94 10:05 3035340514 PAGE.008 B 1447 PBC 02393929 06/17/94 16:25 P 0 0582 MARY ANN F8USR8?$IN CLRRX 8 Rac0RD8R6ei8LD co, 8 - N 79' 52' 69' W. 50.19 feat; 9 N 78' 58' 20' W. 50.13 feet; 10 - N 77' 22' 24' W,•50.05 feet; 11 - N 75' 18' 44' W, 50.00 feet; 12 - N 73' 56' 14' W. 50.01 feet; 13 - N 75' 59' 59' W. 50.01 feet; 14 - N 78' 03' 33' W. 50.08 feet; 15 N 77' 49' 51' W, 50.07 feet; 16 - k 78' 30' 57' W, 50.10 feet; • 17 - N 88' 50' 24" W, 75.38 feet; 18 - N 27' 27' 03" W, 144.80 feet to a point on the south line of said Section 3; 19 - N 27' 27' 03'W, 64.51 feet; •20 - N 38' 44' 16' W, 50.00 feet to a point an the east line of said Se:tion 4; 21 - N 3R' 44' 16' W. 20.57 feet; ,' 22 - N 37' 14' 56' W, 50.03 feet; 23 - N 38' 51' 09' M. 50.00 Lett;, , , •. 24 - N 39' 46' 09' W. 50.00 felt; 25 - N 38' 18'17' W. 39.87 feet; 26 - * 11' 21' 47" W. 28.76 feet; • 27 - M 10' 11' 15' W, 100.03 feet; 28 - M 11' 06' 14" W. 60.00 feet; 29 - N 10' 11' 15' W. 50.01 feet; • 30 - N 09' 43' 45' W. 50.02 feet; �-. Page 6 of 12 0CT 21 '94 10:05 3035340514 PRGE.009 f 1 8 1447 REC 02393929 06/17/94 16:25 $70.00 9/014 F 0583 MARY ANN DINERSTEIN CLERK & RECORDER WELD CO, CO 31 - N 09' 16' 18" W, 54.04 feet; 32.- N 11' 47' 29" N, 50.00 feet; . 33 - N 15' 27' 08' W, 50.12 feet; 34 - N 17' 02' 45' W, 100.46 feet; • 35 - M 68' 04' 22",W, 8.11 feet: 36 - N 55' 06' 47' W, 68.88 feet; " 37 - N 28' 02' 02' W, 24.62 feet; • 38 - N 01' 59' 49' E, 64.86 feet; 39 - N 24' 17' 59" W, 51.56 feet; 40 - N 34' 33' 13" W. 50.12 feet; 41 - N 38' 26' 37' W, 50.00 feet; 42 - N 42' 33' 43" W, 50.13 feet; 43 - N 61' 52' 04" W, 76.22 feet; .44 - N 89' 17' 02" E, 139.17 feet; 45.- N 03' 45' 51" W, 390.32 feet; . • 46 - N 7n' 52' 01' W, 116.11 feet; 47 - N 72' 17' 16' V, 122.30 feet; 431 - N 55' 39' 25' W, 181.66 feet';' - ' ' 49 - N 31' 16' 35" W, 1063.87 feet; 50 - S 51' 31' 52' W, 57.39 feet; S1 • S 31' 26' oe' E, 492.11 feet; • 52 - S 30' 42' 10' E, 31.11 felt; . 53 • S 10' 25' 09' E. 63.38 feet; . 5a • 68.62 feet along the arc of a curve to the left having a Central angle 0 23' 10' 67', a radius of 168.50 feet, and a long ehord that bears south 22' 05' 08" E. 68.14 feet; Page 7 of 17 OCT 21 '94 10:0G 3035340514 PAGE.010 C 8 1447 EEC 02393929 06/17/94 16:25 $70:00 10/014 F 0584 MARY ANN YEUERSTEIN CLERK & RECORDER WELD CO, CO 55 - S 33' 45' 06' C, 92.28 feet; 56 - S 38' 27' 03' E, 30.14 feet; • Thence S 51' 32' 58' V, 98.00 feet to a point on the west boundary of a tract of land described in Exhibit 'A', look 1068, Reception No. 02008614 of the Weld County Records; Thence along said west boundary by the following 58 courses: 1 - S 00' 23' 32' E, 177.92 feet; . 2 - S 10' 18' 17' E, 78.26 feet; 3 - S 30' 46' 13' 1, 152.46 feet; • • 4 '• S 47' 56' 08' E, 110.45 feet; $ - S 64' 54' 59" E, 51.89 feet; 6 - S 33' 41' 24' E, 43.27 feet; 7 - S 65' 27' 44' E, 50.57 feet; 8 - S 19' 58' 39' E, 58.52 feet; 9 - N 72' 38' 46' W, 16.76 feet; • 10 - N 30' 27' .50 W, 39.15 feet; • 11 - S 66' 48' 05' W, 53.31 feet; . • 12 • S 37' SA' 18' W, 52.01 feet; 13 - S 01' 53' 36' N, 121.07 feet; . • 14 - S 19' 17' 24' V, 63.57 feet; 15 - S 06' 08' 48' W, 65.38 feet; 16 - S 33' 32' 10' E. 103.17 feet; 17 - $ 5S' OS' 51' E. 52.43 feet; • 18 - $ 76' 52' 47' E, 136.57 feet= 19 - S 67' 47. 47' E. 82.92 feet; Page 6 of 12 0CT 21 '94 10.06 3035340514 PfGE.011 9 1447 REC 02393929 06/17/94 16:25 $70.00 11/014 F 0585 MARY ANN FEUERSTBIN CLERIC & RECORDER WELD CO, CO 20 - S 31' 54' 29" E, 62.43 feet; • • 21 - S 12' 12' 02' E, 75.71 feet; 22 - S 15' 36' 40' E, 70.60 feet; • 23 - S 00' 46' 46' 1, 147.01 feet; ' • 24 - S 40' 38' 56' E, 130.48 feet; • 25 - S 04' 53' 57' E. 70.26 feet; 26 - 5 24' 20' 28' U. 46.10 feet; . • , 27 - S 13' 34' 14' E, 59.67 feet; 28 - S 35' 26' 24' E. 118.59 feet to a point on the south line of said Section 4; • 20 - S 35' 24' 24' E, 17.65 feet; 30 - S 49' 59' 37' E, 7341 feet; 31 - S 83' 07' 06'•E, 58.42 feet; • • - 32 - 5 65' OS' 43' E, 92.61 feet; 33 - S 58' 24' 46' E, 69.35 feet; 34 - S 36' 36' 25' E, 43.60 feet; . . . . ... 35 S 24'_34'.02'.E, 38.48 feet; .. 36 - S 40' 21' 52' E, 105.00 feet; 37 - S 63' 26' 06' E, 36.45 feet to a point on the east lint of said Section 9; . . - 38 - S 63' 26' 06' It 37.34 feet; • 39 - S 10' 42' 47' E, 112.97 feet; 40 - S 35' 26' 45' E, 144.84 fat; Page 9 of 3.2 0CT 21 '94 10:07 3035340514 PAGE.012 • B 1447 NEC 02393929 06/17/94 16:25 370.00 12/014 F 0586 MARY ANN PEUERSTEIN CLERK a RECORDER WELD CO, CO 41 - 5 52' 48' $5' C, 145.60 feet; • 42 • 5 67' 46' 30' E, 100.46 feet; 43 - S 53' 14' 47' E, 98.60 feet; 44 - S 36' 35' 28' E, 82.20 feet; • • • 45 • S 28' 18' 03'.1, 59.06 feet; 46 - S 52' 31' 26' W, 37.80 feet; 47 - S 30' 03' 16' W. 183.70 feet; 48 - S 04' 58' 11' E. 46.17 feet; • 49 - S 25' 58' 28' W. 86.76 feet; • 50 - S 06' 03' :;' E, 66.37 feet; 51 - 5 25' 51' 59' E. 110.02 feet; 62 - S 01' 28' 51'.W. 99.85 feet; 51 - 5 31' 16' 29' E, 157.95 feet; 54 - S 18' 26' 06' E, 139.14 feat; SS - S 40' 20' 48" E, 122.02 feet; 56 - $ 24' 26' 38' E. 48.33 feet; •• 57 - S 04'.21'.25' E, 105.30 feet;. . . 58 • S 29' 30' 41' E. 174.3$ feet to a point on the east boundary of e tract of land described in loot 1068. Reception No. 02008615 of the Weld County Records; ?hence along said east boundary by the following 6 courses:. 1 - $ 37' 11' 26' E. 96:99 feet; 2 • S 52' 03' 11' E, 69.68 feet; 3 - S S5' 31' 12' E. 148.65 feet; 4 - 5 1$' 11' 37' E. 13n.93 feet; • Page 10 of 12 OCT 21 '94 1000 3035-140514 PAGE 013 8 1447 REC 02393929 06/17/94 16:25 370.00 13/014 F 0587 MARY ANN FEURRETEIN CLERK & RECORDER WELD CO, CO S - S 42' 52' 31' E, 177.69 feet; 6 - S 25' 09' 42' E, 411.21 feet; Thence S 25' 09' 43' to 106.90 feet; Thence S 24' 47' 31' C. 180.70 feet; Thence S 36' 63' 59'•E, 1'6.03 feet; Thence S 25' 08' 23' V, 111.15 feet; ' Thence S 02' 01' 55' E, 227.19 feet; Thence S 27' 01' 04' E, 93.92 feet; ' Thence S 13' 36' 48' E, 101.31 feet; Thence S 24' 32' 47' E. 116.37 feet; Thence S 06' 37' 27' E, 234.27 feet; Thence S .07' 03: 43' II, 151,41 feet; Thence S 14' 47' 42' V, 113.31 feet; Thence S 05' 07' 42' V, 151.19 feet; Thence S 17' Sn, 26' V, 90.47 feet; Thence S 42' 18' 14' V, 134,52 feet; Thence S 19' 19' 41' V, 266.66 feet; • _ . Thence S 30' 21' 06' V, 184.39 feet; . _. • • Thence S.51' 40' 58' V, 105.15 feet; Thence S 79' 43' 10' V1 714.61 feet; Thence S 24' 52' 12' V, 224.67 feet; Thence S 07' 13' 57' E, 10.72 feet to a point on the North Line of said Section 15; Thence along said North line of Section 15 N 89' 28' 21' E. 64.09 feet; : Thence S 00' 41' 51' E. 5264.17 feet to a point on the South Line of said Section 15; Page 11 of 17 rrT 21 •Qd 1 R:RR 3R3Si411S1 d PAGE 014 8 1447 SEC 02393929 06/17/94 16:25 P 0588 NARY ANN gEUBRSTEIN CLERK & RECORDgg.kELD CO CO thence along said South line of said Section 15 589"48`56"w, 351.01 feet to the TRUE POINT OF BEGINNING: . includingthat portion thereof platted as REESE DRAW FARMS AND EQUESTRIAN CENTER, ?IRS? FILING under Revised Plat and Dedication recorded April 12, 1918 in look 1192 as Reception No. 2137453, together with the rights of Grantor as Purchase: under Certificate of Purchase No. S-571 with The State of Colorado dated May 21, 1984 and recorded July 26, 1984 • 4 in Book 1038 as Reception No. 01975458, as to Section 16, Township 3 North, Range 65 West of the Sixth Principal Meridian, Weld County, Colorado. • • • *as evidenced by assignment recorded August 16, 1988 in Book 1205 as Reception No. 02151603 in the records of Weld County, Colorado • • • • Page 12 of 12 0CT 21 '94 10:09 ?R15340514 PHGE.015 .-. January 1994 PETITION FOR INCLUSION OF LANDS IN NORTHERN COLORADO WATER CONSERVANCY DISTRICT TO THE BOARD OF DIRECTORS OF NORTHERN COLORADO WATER CONSERVANCY DISTRICT 1. All the owner(s) of lands situated in the County of Weld , State of Colorado, hereby petition(s) and pray(s) that the lands hereinafter described be included in said Northern Colorado Water Conservancy District ("District"). 2. The description of the lands owned by the Petitioner(s) is as follows: PETITIONER DESCRIPTION SEC.TWP.RGE. ACRES IEI Limited Liability See Exhibit A Sections 3, 4, 5, 3,442 Company, dba Investors to Sheriff's 8, 9, 10, 15 and Limited Liability Deed attached 17, Township 3 Cony hereto as Exhibit North, Range 65 I, except for West that land described therein under Certificate "0"'", of Purchase No. S-571 in Section 16, Township 3 North, Range 65 West (owned by the State of Colorado) TOTAL ACRES INCLUDED 3,442 CURRENT ASSESSED VALUATION OF LANDS TO BE INCLUDED $ 18,340 AMOUNT OF INCLUSION FEE ENCLOSED $ 235 IWPSI VND a nunne413 FORMS 4400 C) 3. A plat of the above described property is attached hereto as Appendix "C." 4. All the owner(s) of the above described property hereby agree(s) to pay to the District an amount which is equal to the ad valorem taxes which would have been paid to the District by the owners of the above described lands if said lands had been included within the boundaries of the District at the time of its creation. This amount will be calculated in accordance with the policy of the District, a copy of which is attached as Appendix 'B." 5. All the owner(s) of the above described property and their heirs, successors, and assigns hereby agree to be bound by the Water Conservancy Act, C.RS. § 3745-101 et. seq., as. amended from time to time, and all rules, regulations, and policies of the District as amended or changed from time to time. 6. All of the owner(s) of the above described property hereby agree(s) that inclusion of the above described lands into the District is conditioned on present and future payment of the same mill levies and special aosrssments as are levied or will be levied on other similarly situated property in the District at the time of inclusion of the Petitioners) lands. If such payments are not made on such equal basis, the inclusion of the lands can be r terminated for non-compliance with this condition if payments are not otherwise made. 7. All the owner(s) of the above described property have executed Appendix"A" attached hereto. THIS PETITION INCLUDING APPENDIX"A" MUST BE SIGNED BY ALL OF THE OWNERS OF'THE ABOVE DESCRIBED PROPERTY TITLE (if in relation to a Partnership or a S GNA Corporation) ADDRESS Manager Investors Limited Liability Company 4221 hbnaco Street Denver, Colorado 80216 STATE OF COLORADO ) ss County of5P4(C'S()a- ) The foregoing instrument was acknowledged before me this .� day of November CO( 1/ ,' A.D. 1924, by Cl u C. ►. t.(,� Qt. , Manager of BET Limited Liability Company, a Wyoming limited liability company, doing business in olorado as Investors Limited Liability Company. Witness my hand and Seal. My commission expires: 1,-) h i° 14../x uEACITr ; Notary Public SVPslUMO Q ALLOTMENTS FORMS*400 2 n C STATE OF COLORADO ) ) ss County of ) The foregoing instrument was aclmowledged before me this day of A.D. 19_, by Witness my hand and Seal. My commission expires: Notary Public STATE OF COLORADO ) ) ss County of ) The foregoing instrument was acknowledged before me this day of A.D. 19_, by Witness my hand and Seal. My commission expires: Notary Public STATE OF COLORADO ) ) ss County of The foregoing instrument was acknowledged before me this day of A.D. 19_, by Witness my hand and Seal. My commission expires: Notary Public WPM LAND&ALLOTMENTS F014/43 4400 3 . • ( a APPENDIX"A" Purpose The purpose of this covenant is to subject Petitioner's property, described in the petition for inclusion and court order for inclusion, to the same mill levies and special assessments as are levied or will be levied on other similarly situated property in the Northern Colorado Water Conservancy District ("District") at the time of inclusion of Petitioner's lands. Waiver Petitioner hereby waives any right which may exist to require an election pursuant to article X, § 20 of the Colorado Constitution before the District can impose the mill levies and special assessments specified below. Petitioner also waives any right which may exist to a refund pursuant to article X, § 20 of the Colorado Constitution. Mill Levies and Special Assessments 1 Upon inclusion into the District, and as an express condition thereof, Petitioner covenants to pay the following mill levies and special assessments: 1. Any Class A mill levy or special assessment levied annually by the District and imposed on other similarly situated property within the District. 2. If Petitioner's property is now or is in the future located within a municipality which has an existing or future Class B Allotment of water by the District, and if said municipality defaults on payment of its obligations under any existing or future Class B allotment contract(s) with the District, Petitioner agrees to pay any special assessment levied by the Board of Directors of the District for the purpose of collecting amounts due under the allotment contract(s). 3. Any amount due under any existing or future Class D allotment contract on Petitioner's property. Covenant to Run with the Land This covenant will run with and burden the property described in the petition for inclusion and court order for inclusion and binds all future owners of the property. ALL OWNERS OF THE ABOVE DESCRIBED PROPERTY MUST SIGN THIS APPENDIX"A." DATE GNATURREESit ADDRESS //MS elf Investors Limiter Liability Company(� 4221 Monaco Street Denver, Colorado 80216 WVSIL JD&ALLOTMENTS FORMS'400 • APPENDIX"B" NORTHERN COLORADO WATER CONSERVANCY DISTRICT RESOLUTION D-941-O2-94 NORTHERN COLORADO WATER CONSERVANCY DISTRICT COLORADO-BIG THOMPSON FACILITIES INCLUSION FEE WHEREAS, the inclusion of lands into the Northern Colorado Water Conservancy District (District) makes those lands eligible to receive water from the Colorado-Big Thompson (C-BT) Project facilities; and WHEREAS, those lands and allottees of water originally included within the District commencing in 1938 have contributed to the cost of construction repayment, operation, maintenance, replacement and administration of the C-BT Project and WHEREAS, a fee is necessary to place newly included lands and their eligibility for water from the C-BT Project facilities on the same basis as those lands originally included within the District. NOW, THEREFORE LET IT BE RESOLVED that: A fee shall be charged in connection with the inclusion of lands into the District for the purpose of placing such lands on an equal basis as lands originally included within the District. Such fee shall be collected on behalf of and deposited to the Colorado-Big Thompson Water Activity Enterprise Fund. This fee shall be calculated as follows: The sum of the historical (1937 to current year) ad valorem tax revenues received by the District from Larimer, Weld, and Boulder Counties divided by the current assessed valuation of the District lying within those same Counties times the current assessed valuation of the property to be included. Example: Revenues From 3 Counties To Date x Current Valuation of Current Valuations of District Property To Be Included Within 3 Counties For Calendar Year 1993 $ 48,388,184 x Current Valuation of Property $ 3,788,258,060 or 0.0128 x Current Valuation of Property The ratio determined above will be recomputed annually by the District and will be made available upon request. It will be the responsibility of the petitioner to furnish the current assessed valuation of the property involved at the time the petition for inclusion is submitted to the District. Satisfactory arrangements for payment of fees must be made with the District before the inclusion will be approved by the Board of Directors. f+'PSOxm a ALLOTMENTS FOPJ.*4400 • EXHIBIT E [DEVELOPER FEE AGREEMENT] 47C; JFVELOPFR FIFE WATER TAP FEE AGREEMENT THIS DEVELOPER FEE AND IWA_TER TAP FEE AGREEMENT is made as of this ?" day of Dece M ber, 1998, between BEEBE DRAW FARMS METROPOLITAN DISTRICT, hereinafter referred to as "District" , a quasi-municipal corporation and political subdivision of the State of Colorado duly organized and acting pursuant to the provisions of Article 1, Title 32 , C.R. S. , and REI LIMITED LIABILITY COMPANY, a Wyoming limited liability company doing business in Colorado as Pelican Lake Ranch and Investors Limited Liability Company, hereinafter referred to as "Developer" . EECITMT S A. The District was organized to provide water, streets, drainage and safety protection, and parks and recreational services and facilities within its service area; and B. The Developer is the fee owner of certain real property, hereinafter referred to as "Development" , situate within the District and which requires services and facilities from the District prior to the development and sale thereof; and C. In order to provide adequate services and facilities to the Development and to other property within the District, it is necessary to acquire a water supply and to construct a water distribution system, streets, drainage and safety protection facilities, and parks and recreational and related facilities, hereinafter referred to as "Facilities" ; and D. The Developer wishes to participate in funding the costs of the Facilities, which will assist in making services and facilities available to all property within the District ; and E . Without such participation, the District would not acquire or construct the Facilities, which will benefit all property within the District; and F . In order to complete the acquisition and installation of the Facilities, the District will, from time to time, enter BOFMO\OEV-FIWT AOR I"III 11111 11111 Ell I"" VIII 'I'I"I III "III IIII El 2661476 12/18/1998 01:34P Weld County CO 1 of 17 R 86.00 D 0.00 JR Suitt Isukamoto into agreements to construct and borrow funds in the amounts needed to finance the costs of the Facilities, subject to all terms and conditions hereinafter set forth, and the Developer agrees to pay developer fees and water tap fees for its property within the Development, which will generate revenue to the District to fund the costs of the Facilities, including costs of financing; and G. The completion of the Facilities will enhance the value of the Development and other property within the District and will serve a public use, and the mutual obligations and benefits created hereunder will promote the health, safety, prosperity, security and general welfare of the inhabitants and property owners within the District . AGREEMENT In consideration of the mutual covenants, agreements, conditions and undertakings hereinafter specified, the District and Developer agree as follows : ARTICLE I Section 1 . Definitions . For all purposes hereunder, unless the context indicates otherwise, the terms defined in this Section 1 shall have the meanings set forth below: a . "Agreement" means this Developer Fee and Water Tap Fee Agreement and any exhibit or amendment hereto. b. "Board" means the duly constituted Board of Directors of the District . c . "Bonds" • means any bond, note, or other obligation of the District . d. "Developer" means the REI Limited Liability Company, a Wyoming limited liability company doing business in Colorado as Pelican Lake Ranch and Investors Limited Liability Company, or its successor, transferee, or assign. 1111111 Hai IIII MIME 111 2681476 12/18/1998 01:34P Weld County CO 2 of 17 R 86.00 D 0.00 JR Sukl Tsukamoto e . "Developer Fee" means the fee to be paid to the District in accordance with the provisions of Article II, Section 2 of the Agreement . f . "Development" means the Beebe Draw Farms and Equestrian Center according to the PUD Master Plan recorded on December 21, 1984 in Book 1053 as Reception No. R-1992773 (File 3821; Envelope 2306) of the Weld County, Colorado, Clerk and Recorder, including all filings and subdivisions thereof and any amendment or replatting thereto, as more specifically described in Exhibit A attached hereto and incorporated herein by reference . g. "District" means the Beebe Draw Farms Metropolitan District, or its successor, transferee, or assign. h. "Facilities" means the water supply and water distribution system, streets, drainage, and safety protection facilities, parks and recreational facilities, and other facilities and improvements acquired, installed or financed by the District . i . "Fees" means the Developer Fee and Water Tap Fee . j . "Lien" means the lien established and referred to in Article II , Section 6 of the Agreement . k. "Lot" means any platted lot in the Development . 1 . "Resolution" means any resolution designated by the Board of the District authorizing the sale and establishing the terms and conditions of the Bonds . m. "Water Provider" means the Central Weld County Water District, a Colorado special district situate in Weld County, Colorado, which supplies treated water to, and operates the public water distribution system within the District in accordance with an intergovernmental agreement . n. "Water Tap Fee" means the fee to be paid to the Water Provider for the District in accordance with the provisions of Article II , Section 3 of the Agreement . 111111111111111111 IIII 1111111111111111111111111 ���! ���� 2881476 12/18/1998 01:34P Weld County CO 3 of 17 R 86.00 D 0.00 JR Sukl Tsukamoto Section 2 . Constructiorl. For all purposes hereunder, unless the context indicates otherwise, the Agreement shall be construed as follows : a. All definitions, terms and words shall include both the singular and the plural . b. Pronouns shall include both the singular and the plural and shall cover both genders . c. Whenever "shall" is used herein, it shall be construed as mandatory; "may" denotes that it is permissible but not mandatory. ARTICLE TT Section 1 . Warranties, Covenants and Representations . The Developer makes the following representations, covenants and warranties to the District : a. The Developer is the fee owner of all property within the Development and has good, marketable and indefeasible title to all property within the Development, subject to exceptions of record. b. The Developer has the full right, power and authority to enter into, perform and observe the Agreement, including the specific authority to encumber all property within the Development . c . Neither the execution of the Agreement, the consummation of the transactions contemplated hereunder, nor the fulfillment of or the compliance with the terms and conditions of the Agreement by Developer will conflict with or result in a breach of any terms, conditions or provisions of, or constitute a default under, or result in the imposition of any prohibited lien, charge or encumbrance of any nature under any agreement, instrument, indenture, judgment, order or decree of any court to which the Developer is a party or by which the Developer or the property within the Development are bound. 11111111111111111111111111111111111 2661476 12/18/1998 01:34P Weld County CO 4 of 17 R 86.00 D 0.00 JA Sukl Taukamoto d. The Developer agrees that all Developer Fees and Water Tap Fees will be paid in accordance with the provisions of this Agreement and that it shall keep and perform all of the covenants and agreements contained herein. e . The Developer may be held liable for any loss suffered by the District as a consequence of any misrepresentation under subsections a. , b. and c. of this Section 1 . Section 2 . Developer Fee . A Developer Fee shall be paid to the District by the Developer on or before the date of transfer and/or sale of each Lot . The Developer Fee shall be payable in the amount of $15, 500 per Lot during the 1998 and 1999 fiscal years . For subsequent fiscal years, the Board may, from time to time, increase the amount of the Developer Fee as necessary to fund the actual costs of the Facilities, including costs of financing. The Developer agrees to pay Developer Fees for thirty-two (32) Lots in the 1st Phase of the First Filing of the Development on or before the following dates : (i) for ten (10) Lots by December 31, 1999; (ii) for another eleven (11) Lots by December 31 , 2000; and (iii) for another eleven (11) Lots by December 31 , 2001 . If necessary to secure financing for the costs of Facilities needed to serve other phases of the Development, the District and Developer shall agree to a specific schedule of payments of Developer Fees for such phase of development prior to the commencement of construction activities by the District . Section 3 . Water Tap Fee . A Water Tap Fee shall be paid by the owner of the Lot to the Water Provider for the District on or before the date of application for water service to each Lot , or as otherwise provided in the rules and regulations of the Water Provider. The Water Tap Fee shall be payable in the amount of $4 , 400 per Lot during the 1998 and 1999 fiscal years . For subsequent fiscal years, the Board may, from time to time, increase the amount of the Water Tap Fee as necessary to fund the actual costs of acquiring a water supply for the Development . The Water Tap Fee shall be paid in addition to all other rates, fees and charges of the Water Provider. Nothing set forth in the Agreement shall be construed to discharge the Developer or owner of any Lot from paying any rate, fee or charge imposed by the Water Provider for water service. 11111111111111111111111111 34IIII11111P Weld 11III IIIII IIII IIII 5 of 17 R 86.00 D 0.00 JR Suitt Taukamofo Section 4 . Method of Payment and Use of Fees . Fees shall be payable in cash or certified funds . Fees paid or remitted to the District may, in the Board' s discretion, be applied to pay the costs of the Facilities or any outstanding debt of the District . Section 5 . Unconditional Obligation. Upon execution of the Agreement by Developer, the obligation of Developer to pay, or cause to be paid, the Fees shall be absolute and unconditional, shall be binding and enforceable in all circumstances, and shall not be subject to setoff or counterclaim. Without in any way limiting the generality of the foregoing, such obligation shall not be affected by the exercise of any remedy hereunder by the District, termination of the Agreement, diminution of any of Developer' s rights hereunder by judicial decree, legislative enactment or otherwise, failure of consideration, condemnation, or inability or failure of the District or Developer to perform any obligation hereunder. Section 6 . Lien . Fees payable with respect to each Lot, together with any interest thereon and costs to collect Fees, including reasonable attorneys' fees, shall , until paid, constitute a statutory lien against such Lot . In the event of non-payment of any Fees for any Lot, the Lien against such Lot may, in the Board' s discretion, (i) be certified to the County Treasurer for collection as a delinquent fee for water services in accordance with the provisions of Section 32-1-1101 (1) (e) , C.R. S . , or (ii) be foreclosed in the manner specified in Section 32-1-1001 (1) (j ) , C.R. S. , which the Developer hereby acknowledges and ratifies as being applicable. The District shall record the Agreement, and the Agreement shall constitute a statement of lien against each Lot within the Development, until paid and released in accordance with the terms of the Agreement . Section 7 . Release of Lien. The District shall release the Lien against any Lot upon payment in full of the Fees payable on such Lot , together with any interest and costs secured by such Lien. Payment in full may occur either (i) with the making of the applicable payment to the District by the Developer or owner of such Lot or by the holder of a lien affecting such Lot , or (ii) upon designation of a sufficient amount of unallocated Fees to a specific Lot pursuant to Section 8 below. AIM HUH RIM Iitll1111111III Hill ills II11 6 2681478 12/18/1998 01:34P Weld County CO 6 of 17 R 88.00 0 0.00 JA Suitt Tsukamoto • Section 8 . Designation of Payment of Fees . When Fees are paid to the District , the payer (whether the Developer or another person) shall designate to the District in writing whether the amounts paid are to be allocated to one or more specific Lots . Amounts which are allocated to specific Lots shall be entitled to a release of Lien as set forth in Section 7 above. Amounts which are not allocated to specific Lots shall be credited on the District' s records as unallocated Fees. The Developer or such other payer may by written notice to the District subsequently designate specific Lots for which all or any portion of the unallocated Fees are to be applied; upon such notification, a release of Lien shall be issued pursuant to Section 7 above. Section 9 . Default . The occurrence of any of the following events shall constitute an event of default under this Agreement : a. Any material misrepresentation under subparagraph a . , b. or c . of Section 1, Article II of this Agreement; b. Any breach by Developer of the covenant contained in subparagraph d. of Section 1, Article II of this Agreement , unless cured within thirty (30) days of notice to Developer; or c . With respect to any individual Lot, any breach of the provisions of Sections 2 or 3 , Article II of this Agreement , unless cured within thirty (30) days of notice to Developer and, if the name and address of the owner of such Lot has been provided to the District, to the owner of such Lot . An event of default which occurs under subsection (c) of this Section 9 shall constitute a default only for the Fees owing with respect to the affected Lot; any other event of default shall constitute a default with respect to all unpaid Fees . Notice of any default shall be provided to any lender specified in Section 8, Article III of this Agreement, and such lender may cure any default hereunder by payment in full of all amounts then due and payable within fifteen (15) days after written notice of such default has been given by District to such lender. 111111111111111111 IIII 11111111111111111 III 1111111111111 2661478 12/18/1998 01:34P Weld County CO 7 of 17 R 86.00 D 0.00 JR Sukl Tsukamoto Section 10 . Remedies Upon Default . Upon the occurrence of any event of default hereunder with respect to any Fees, interest on such defaulted Fees shall accrue at the rate of twelve percent (12%) per annum, and the District shall have the following rights and remedies : (a) to declare by written notice any or all of such defaulted Fees immediately due and payable in full ; (b) to collect or foreclose the Lien against the Lot for which the Fees are in default; or (c) to exercise any other right or remedy available to the District under this Agreement or permitted by law. The District shall be entitled to recover its costs and expenses, including reasonable attorneys' fees, in connection with any enforcement action, and such costs and expenses shall be secured by the Lien against the Lot to which such costs and expenses are allocable. ARTICLE III Section 1 . Nature of Covenants . The covenants, obligations, terms, conditions and provisions set forth in the Agreement shall be construed as and, during the term of the Agreement, remain covenants running with and burdening all Lots and other property within the Development . Section 2 . Bond Resolution. The Agreement shall be subject to the Resolution. Any provision of the Agreement in conflict with the Resolution shall be deemed to be superseded by the provisions of the Resolution. Section 3 . Effective Date. The Agreement shall be in full force and effect and be legally binding upon each party at the time of execution by all parties hereto. Prior to approval of the Agreement by the District, the Developer shall not rescind his approval of the Agreement without the written consent of the District . Each party agrees to approve, adopt and execute any and all instruments, documents and resolutions necessary to effectuate the covenants, terms, conditions and provisions contained herein. Section 4 . Term. The Agreement shall remain in effect until all Fees have been paid in full . Section 5 . Successors and Assigns . The Agreement , including any right to release of Liens hereunder, shall be assignable in 1111111 11111 IRE 11111 11111 11111 HI NE Mill 2681476 12/18/1998 01:34P Wald County CO 8 of 17 R 86,00 D 0.00 JR Suk1 Tsukamoto whole or in part . In the event thereof, all covenants, obligations, terms, conditions and provisions contained herein and all amendments of the Agreement shall inure to and be binding upon the heirs, personal representatives, transferees, successors and assigns of the parties hereto. Section 6 . Remedies.. The remedies provided to the District hereunder are cumulative and are not intended to be exclusive of any other remedy to which the District may be lawfully entitled. None of the remedies provided to either party under the Agreement shall be required to be exhausted or exercised as a prerequisite to resort to any further relief to which it may then be entitled. Every obligation assumed by or imposed upon either party hereto shall be enforceable by any appropriate action, petition or proceeding at law or in equity. In addition to any other remedy provided by law, this Agreement shall be specifically enforceable . The Agreement shall be construed in accordance with the laws of the State of Colorado, and in particular Article 1, Title 32 , C.R.S . All times stated herein are of the essence . Section 7 . Waiver. No waiver by either party of any covenant, term, condition or agreement contained herein shall be deemed or construed as a waiver of any other covenant , term, condition or agreement, nor shall a waiver of any breach hereof be deemed to constitute a waiver of any subsequent breach, whether of the same or of a different provision of the Agreement . Section 8 . Notices . All notices provided under the Agreement shall be in writing and shall be hand delivered or sent by certified mail, return receipt requested, to the following addresses : District : Beebe Draw Farms Metropolitan District 11409 West 17th Place Lakewood, Colorado 80215 Developer: Investors Limited Liability Company 4221 Monaco Street Denver, Colorado 80216 In addition to the notice provided to Developer, the District shall also provide a copy of such notice to any lender of Developer previously certified to District . Either party by 111111111111111111IVi 1111111111111111111111111 ���� ���� 2661476 12/18/1998 01:34P Weld County CO 9 of 17 R 86.00 D 0.00 JA Suitt Tsukamoto written notice so provided may change the address to which future notices shall be sent . All notices shall be considered effective when mailed. Section 9 . Severability. If any covenant, term, condition or provision under the Agreement shall, for any reason, be held to be invalid or unenforceable, the invalidity or unenforce- ability of such covenant, term, condition or provision shall not affect any other provision contained herein. Section 10 . Counterparts . The Agreement may be executed in multiple counterparts, each of which shall constitute an original , but all of which shall constitute one and the same document . Section 11 . Amendment . The Agreement may be amended from time to time by agreement between the parties hereto. No amendment, modification or alteration of the Agreement shall (i) be binding upon the District or the Developer unless the same is in writing and duly executed by the parties hereto; (ii) be made in conflict with the Resolution; or (iii) adversely affect the owner of a Lot or the holder of a lien against a Lot without the written consent of such person. IN WITNESS WHEREOF, the District and Developer have executed this Agreement on the date and year hereinabove stated. BEEBE DRAW FARMS METROPOLITAN DISTRICT By: •(1�_l P - eside ATTEST: SMETgWe" r -_\_') r •F, ft .;z : 1 i l : C` y s J t, -.44 t. `-` % :c•., , `N (''.!4 Ok',. 't i ' 17 , n IIIIIIIIIII "Ill IIIIIIIIIInIIIIIIIBEI III IIII III 2661476 12/18/1998 01:34P Wald County CO 10 of 17 R 86.00 D 0.00 JR Sukl Taukamoto STATE OF COLORADO } }ss . COUNTY OF Seems" } The foregoing Agreement was acknowledged before me this VII= day of -)Q 19c175, by James&Fell as President and uyptvu.r.5 Q 5u.•ccc. as Secretary of Beebe Draw Farms Metropolitan District . Witness my hand and official s Notar My commission expires : (¢ 260Z ....,,,... J5tPSk ,,,, REI LIMITED LIABILITY COMPANY, - :? • " ""G9y d/b/a Pelican Lake Ranch and (, 7NQTA p),\ ' Investors Limited Liability ••- ' Company frjU la ! By: Manager STATE OF COLORADO } }ss . COUNTY OF 4eFcevs } The foregoing Agreement wa acknowledged before me this l/ day ofNec e,. La , 1921 , by Ko (L;e 1 , K e t t y , Manager of REI LIMITED LIABILITY COMPANY, d/b/a in Colorado as Pelican Lake Ranch and Investors Limited Liability Company. Witness my hand and official seal . tiezt Notary Public My Connissice ECM 91102001 `,,,,,,,w,,,a;;;,;,.: My commission expires : 550S.Wadswodh Blvd uftwaoa,co 80226 :\ 11111111111 11011 pis 2881478 12/18/1998 01:34P Wald County CO s-t - � ::-1c:J 11 of 17 R 88.00 D 0.00 JR Suitt Tsukamoto CF 111111 11011111 DID 1111111 III 111111 III IIII 2661476 12/18/1998 01:34P Weld County CO 12 of 17 R 86.00 D 0.00 JA Sukl TaukamotoA Legal Description of a parcel of land being located in Sections 3, 4, 5, 8,9, 10, 15, 16 and 17, Township 3 North, Range 65 West of the 6th Principal Meridian, Weld County, Colorado being more particularly described as follows: Beginning at the Southeast Corner of said Section 16 and considering the South line of said Section 16 as bearing South 89°2T00" West and with all bearings contained herein relative thereto; thence along said South line South 89°2T00" West 5138.65 feet to the Southeast Corner of said Section 17; thence along the South line of said Section 17 South 89°32'56" West 5327.95 feet to the Southwest Corner of said Section 17; thence along the West line of said Section 17 North 00°29'53" West 5259.39 feet to the Northwest Corner of said Section 17; thence along the West line of said Section 8 North 00°09'44" West 5291.77 feet to the Northwest Corner of said Section 8; thence along the West line of the Southwest Quarter of said Section 5 North 00°25'29" West 2654.03 feet to the West Quarter Corner of said Section 5; thence along the West line of the Northwest Quarter of said Section 5 North 00°24'36" West 1327.22 feet to the Southwest Corner of the North half of the Northwest Quarter of said Section 5; thence along the South line of the North half of the Northwest Quarter of said Section 5 North 89°44'12" East 2631.31 feet to the Southeast Corner of the North half of the Northwest Quarter of said Section 5; thence along the South line of the Northwest Quarter of the Northeast Quarter of said Section 5 North 89°44'12"East 1331.58 feet to the Southeast Corner of the Northwest Quarter of the Northeast Quarter of said Section 5;thence along the East line of the Northwest Quarter of the Northeast Quarter of said Section 5 North 00°39'07" West 1325.38 feet to the Northeast Corner of the Northwest Quarter of. the Northeast Quarter of said Section 5; thence along the North line of the Northeast Quarter of said Section 5 North 89°39'32" East 1333.17 feet to the Northeast Corner of said Section 5; thence along the North line of the Northwest Quarter of said Section 4 North 89°45'34" East 2638.09 feet to the North Quarter Corner of said Section 4; thence along the North line of the Northeast Quarter of said Section 4 North 89°24'21'"East 805.01 feet;thence departing said North line South 40°04'03"East 9.61 feet to the centerline of the Platte Valley Canal as recorded in Book 1068 under Reception No. 02008616, records of said County; thence along said centerline the following 25 courses and distances; South 10°09'07" West 45.49 feet; thence South 27°01'47" West 281.98 feet; thence South 35°02'43" West 129.95 feet; thence South 46°24'26" West 113.95 feet; thence South 67°56'02" West 114.41 feet to the beginning of a tangent curve concave to the Southeast having a central angle of 43°14'52"and a radius of 210.00 feet; thence Southwesterly along the arc of said curve 158.51 feet to the end of said curve;thence tangent from said end of curve South 24°41'10"West 39.72 feet to the beginning of a tangent curve concave to the East having a central angle of 68°10'08" and a radius of 217.23 feet; thence Southeasterly along the arc of said curve 258.45 feet to the end of said curve; thence tangent from said end of curve South 43°28'58" East 159.97 feet to the beginning of a tangent curve concave to the Southwest having a central angle of 48°38'11" • 1111111 III 111111IIII11111111111111111 ��� 111111 ��� ���� 2881476 12/18/1998 01:34P Weld County CO 13 of 17 R 88.00 D 0.00 JR Suitt 7aukamoto Legal Description of a parcel of land being located in Sections 3,4, 5, 8, 9, 10, 15, 16 and 17, Township 3 North, Range 65 West of the 6th Principal Meridian, Weld County, Colorado being more particularly described as follows: Beginning at the Southeast Corner of said Section 16 and considering the South line of said Section 16 as bearing South 89°27'00" West and with all bearings contained herein relative thereto; thence along said South line South 89°27'00" West 5138.65 feet to the Southeast Corner of said Section 17; thence along the South line of said Section 17 South 89°32'56" West 5327.95 feet to the Southwest Corner of said Section 17; thence along the West line of said Section 17 North 00°29'53" West 5259.39 feet to the Northwest Corner of said Section 17; thence along the West line of said Section 8 North 00°09'44" West 5291.77 feet to the Northwest Corner of said Section 8; thence along the West line of the Southwest Quarter of said Section 5 North 00°25'29" West 2654.03 feet to the West Quarter Corner of said Section 5; thence along the West line of the Northwest Quarter of said Section 5 North 00°24'36" West 1327.22 feet to the Southwest Corner of the North half of the Northwest Quarter of said Section 5; thence along the South line of the North half of the Northwest Quarter of said Section 5 North 89°44'12" East 2631.31 feet to the Southeast Corner of the North half of the Northwest Quarter of said Section 5; thence along the South line of the Northwest Quarter of the Northeast Quarter of said Section 5 North 89°44'12"East 1331.58 feet to the Southeast Corner of the Northwest Quarter of the Northeast Quarter of said Section 5;thence along the East line of the Northwest Quarter of the Northeast Quarter of said Section 5 North 00°39'07" West 1325.38 feet to the Northeast Corner of the Northwest Quarter of the Northeast Quarter of said Section 5; thence along the North line of the Northeast Quarter of said Section 5 North 89°39'32" East 1333.17 feet to the Northeast Corner of said Section 5; thence along the North line of the Northwest Quarter of said Section 4 North 89°45'34" East 2638.09 feet to the North Quarter Corner of said Section 4;thence along the North line of the Northeast Quarter of said Section 4 North 89°24'21"East 805.01 feet;thence departing said North line South 40°04'03"East 9.61 feet to the centerline of the Platte Valley Canal as recorded in Book 1068 under Reception No. 02008616, records of said County; thence along said centerline the following 25 courses and distances; South 10°09'07" West 45.49 feet; thence South 27°01'47" West 281.98 feet; thence South 35°02'43" West 129.95 feet; thence South 46°24'26"West 113.95 feet; thence South 67°56'02" West 114.41 feet to the beginning of a tangent curve concave to the Southeast having a central angle of 43°14'52"and a radius of 210.00 feet; thence Southwesterly along the arc of said curve 158.51 feet to the end of said curve;thence tangent from said end of curve South 24°41'10"West 39.72 feet to the beginning of a tangent curve concave to the East having a central angle of 68°10'08" and a radius of 217.23 feet; thence Southeasterly along the arc of said curve 258.45 feet to the end of said curve; thence tangent from said end of curve South 43°28'58" East 159.97 feet to the beginning of a tangent curve concave to the Southwest having a central angle of 48°38'11" 1111111 IIIII 11111 1111111 11111 1111111 III 111111 III IIII 2661476 12/18/1998 01:34P Weld County CO 14 of 17 R 86.00 D 0.00 JA Sukl Tsukamoto and a radius of 81.88 feet;thence Southerly along the arc of said curve 69.51 feet to the end of said curve; thence tangent from said end of curve South 05°09'12" West 19.20 feet to the beginning of a tangent curve concave to the Northwest having a central angle of 25°54'10" and a radius of 260.90 feet; thence Southwesterly along the arc of said curve 117.95 feet to the end of said curve; thence tangent from said end of curve South 31°03'22" West 130.58 feet; thence South 09°40'40"West 95.26 feet;thence South 03°11'43" East 116.07 feet to the beginning of a tangent curve concave to the Northeast having a central angle of 36°30'36"and a radius of 180.24 feet;thence Southeasterly along the arc of said curve 114.85 feet to the end of said curve; thence tangent from said end of curve South 39°42'19" East 116.57 feet to the beginning of a tangent curve concave in the Northeast having a central angle of 45°22'31"and a radius of 114.82 feet; thence Southeasterly along the arc of said curve 90.93 feet to the end of said curve; thence tangent from said end of curve South 85°04'50" East 170.71 feet to the beginning of a tangent curve concave to the Southwest having a central angle of 68°29'30" and a radius of 126.33 feet; thence Southeasterly along the arc of said curve 151.02 feet to the end of said curve;thence tangent from said end of curve South 16°35'20"East 120.95 feet to the beginning of a tangent curve concave to the West having a central angle of 25°35'07" and a radius of 440.41 feet; thence Southerly along the arc of said curve 196.66 feet to the end of said curve; thence tangent froth said end of curve South 08°59'48"West 101.24 feet to the beginning of a tangent curve concave to the Northeast having a central angle of 59°32'10" and a radius of 242.34 feet; thence Southeasterly along the arc of said curve 251.82 feet to the end of said curve; thence tangent from said end of curve South 50°32'22" East 97.62 feet; thence departing said centerline North 89°31'39" East 2111.73 feet; thence North 17°52'53" West 380.92 feet; thence North 89°31'39" East 337.87 feet; thence North 00°28'21" West 150.00 feet; thence North 89°31'39" East 1867.95 feet; thence South 00°14'30" West 680.87 feet; thence South 88°49'23" East 78.63 feet; thence South 12°49'39" East 29.72 feet; thence South 77°10'18" West 30.00 feet; thence South 12°49'43" East 30.00 feet; thence North 77°10'18" East 30.00 feet; thence South 12°49'56" East 14.14 feet; thence South 19°27'45" East 607.82 feet;thence South 43°51'20"East 959.22 feet;thence South 11°54'57"East 159.45 feet; thence South 60°05'14" East 1098.46 feet; thence South 22°08'46" East 2187.26 feet; thence South 17°45'43"West 814.40 feet to a point on the Northerly line of that certain parcel of land described in deed gas Parcel A, recorded in Book 1068 under Reception No. 02008614, records of said County; thence along said Northerly line the following 5 courses and distances; South 38°04'26" West 66.71 feet;thence South 70°24'28" West 210.50 feet; thence North 65°42'40" West 1366.02 feet;thence North 44°50'58" West 1116.45 feet; thence South 71°22'10"West 137.84 feet;thence departing said Northerly line South 71°22'10"West 539.96 feet;thence South 43°28'15"East 318.43 feet;thence South 16°14'00"East 175.00 feet;thence South 00°40'00" East 380.00 feet; thence South 27°02'02" West 73.00 feet; thence North 65°16'00"West 155.00 feet;thence North 56°09'00"West 462.00 feet; thence North 68°59'00" West 256.00 feet; thence South 31°13'00" West 248.00 feet; thence South 80°26'00" West 196.00 feet; thence North 65°07'00" West 214.52 feet to a point on the Easterly line of that certain parcel of land described in deed as Exhibit A recorded in Book 1068 under Reception No.02008614,records of said County;thence along said Easterly line the following 13 courses and distances; North 29°11'51" West 43.34 feet; thence North 35°35'04" West 285.27 feet; thence North 69°49'46"West 52.20 feet;thence North 34°41'43"West 94.87 feet;thence North 40°48'08"East 154.56 feet; thence North 72°48'51" East 101.53 feet; thence North 31°54'29" East 62.43 feet; thence North 17°31'32" East 59.77 feet; thence North 20°04'17" West 110.72 feet; thence North 07°06'02" West 291.23 feet; thence North 11°50'01" West 107.28 feet; thence North 33°54'04"West 150.60 feet; thence North 07°02'17"West 163.23 feet to a point on the Easterly line of that certain parcel of land described in deed as Exhibit B recorded in Book 1068 under Reception No. 02008614,records of said County;thence along said Easterly line North 36°47'35" East 143.90 feet; thence departing said Easterly line North 57°06'34" West 166.61 feet; thence North 75°57'04" West 582.06 feet; thence North 88°50'24" West 134.11 feet to a point on said Easterly line; thence departing said Easterly line North 27°27'03" West 226.36 feet; thence North 39°26'25" West 223.17 feet to a point on said Easterly line; thence departing said Easterly line North 09°54'20" West 362.45 feet; thence North 17°02'45" West 167.22 feet to a point on said Easterly line; thence departing said Easterly line North 28°46'38" West 241.99 feet; thence North 42°33'43" West 106.54 feet to a point on said Easterly line; thence along said Easterly and Northerly lines of said Exhibit B the following 8 courses and distances; North 61°52'04" West 76.22 feet; thence North 89°17'02"East 139.17 feet; thence North 03°45'51"West 390.32 feet; thence North 70°52'01" West 116.11 feet; thence North 72°17'16" West 122.30 feet; thence North 55°39'25" West 181.68 feet; thence North 31°18'35" West 1063.87 feet; thence South 58°31'52" West 67.39 feet; thence departing said Northerly line South 31°28'08" East 522.19 feet; thence South 10°25'09" East 99.33 feet; thence South 33°45'06" East 157.31 feet; thence South 51°32'58" West 95.52 feet to a point on the Westerly line of that certain parcel of land described in deed as Exhibit A recorded in Book 1068 under Reception No. 02008614 records of said County; thence along said Westerly line the following 3 courses and distances;South 00°23'32" East 177.92 feet; thence South 10°18'17"East 78.26 feet; thence South 30°46'13"East 152.46 feet; thence departing said Westerly line South 47°56'08"East 265.05 feet;thence South 37°58'18" West 164.42 feet; thence South 06°08'48" West 239.20 feet to a point on said Westerly line; thence departing said Westerly line South 33°32'10"East 129.62 feet;thence South 74°20'47" East 218.49 feet to a point on said Westerly line; thence departing said Westerly line South 21°05'52" East 136.12 feet to a point on said Westerly line; thence departing said Westerly line South 05°34'43" East 216.02 feet to a point on said Westerly line; thence along said Westerly line South 40°38'56" East 130.48 feet; thence departing said Westerly line South 06°37'15" West 112.76 feet to a point on said Westerly line; thence along said Westerly line the following 3 courses and distances;South 13°34'14"East 59.67 feet;thence South 35°26'24" East 136.24 feet;thence South 49°59'37" East 73.11 feet;thence departing said Westerly line 111111111111111111IIII 11111111111111111 III 111111 III IIII 2661476 12/18/1898 01:34P Wald County CO 15 of 17 R 86.00 D 0.00 JA Sukl Tsukamoto • NIIII IIIII 111111 IIII IIIII MB III 111111 III III! 2861476 12/18/1998 01:34P Weld County CO 18 of 17 R 86.00 D 0.00 JR Sukl Tsukamotd r South 72°03'02" East 149.26 feet to a point on said Westerly line; thence departing said Westerly line South 28°24'46" East 133.73 feet; thence South 40°21'52" East 122.55 feet; thence South 31°08'20" East 168.24 feet to a point on said Westerly line; thence along said Westerly line the following 2 courses and distances;South 35°26'45"East 144.84 feet;thence South 52°48'55" East 145.60 feet; thence departing said Westerly line South 53°35'20" East 274.60 feet to a point on said Westerly line; thence departing said Westerly line South O1°31'33" West 75.03 feet to a point on said Westerly line; thence departing said Westerly line South 30°03'16"West 263.26 feet;thence South 06°03'15"East 282.44 feet;thence South 25°15'47" East 337.55 feet to a point on said Westerly line; thence departing said Westerly line South 23°51'09" East 264.59 feet; thence South 29°30'41" East 174.35 feet to a point on the Easterly line of that certain parcel of land described in deed,recorded in Book 1068 under Reception No.02008615,records of said County;thence along said Easterly line the following 6 courses and distances; South 37°11'26" East 96.99 feet; thence South 52°03'11" East 69.68 feet;thence South 55°31'12"East 148.65 feet;thence South 16°11'37"East 138.93 feet;thence South 42°52'31" East 177.69 feet; thence South 25°09'42" East 155.19 feet; thence departing said Easterly line South 24°47'31"East 180.62 feet;thence South 36°43'59"East 146.03 feet; thence South 25°08'23" West 111.15 feet; thence South 02°01'55" East 227.19 feet; thence South 20°03'39" East 193.90 feet; thence South 12°33'01" East 346.85 feet; thence South 10°22'16"West 264.13 feet; thence South 05°07'42"West 157.19 feet; thence South 32°32'33" West 220.12 feet; thence South 19°19'41" West 268.66 feet; thence South 38°04'00" West 284.92 feet; thence South 79°43'10" West 714.61 feet; thence South 24°52'12" West 224.67 feet; thence South 07°13'57" East 37.52 feet to a point on the Northerly line of said Section 15; thence along said Northerly line North 89°28'21" East 75.13 feet; thence departing said Northerly line South 00°41'51" East 5263.69 feet to a point on the Southerly line of said Section 15; thence along said Southerly line South 89°48'56" West 358.01 feet to the Southeast Corner of said Section 16; said point also being the TRUE POINT OF BEGINNING; Including that portion thereof platted as Beebe Draw Farms and Equestrian Center First Filing under Revised Plat and Dedication recorded April 12, 1988 in Book 1192 as Reception No. 2137453. The above described parcel contains 4120.472 acres more or less and is subject to the following easements, agreements and rights-of-way. Deed recorded in Book 512, Page 551, (location of right-of-way cannot accurately be defined per legal description),Deed recorded in Book 655,Page 293,Deed recorded in Book 655,Page 502, Agreement recorded in Book 961, Page 223, Right-of-way and Easement recorded in Book 1045 under Reception No. 01983413, (location of right-of-way and easement cannot accurately be defined per legal description), Quit Claim Deed recorded in Book 1068 under Reception No. 02008614 (shown hereon), Quit Claim Deed recorded in Book 1068 under • Reception No. 02008615 (shown hereon), Quit Claim Deed recorded in Book 1068 under ^ Reception No. 02008616 (shown hereon), Canal Right-of-way Agreement recorded in Book 1068 under Reception No.02008617,Quit Claim Deed recorded in Book 1068 under Reception No.02008618,Quit Claim Deed recorded in Book 1068 under Reception No.02008619(shown hereon), Quit Claim Deed recorded in Boob 1068 under Reception No. 02008620 (shown hereon), Agreement recorded in Book 1068 under Reception No. 02008621, Right-of-way recorded in Book 1068 under Reception No. 02008622 (shown hereon), Grazing and Recreational Lease recorded in Book 1068 under Reception No. 02008623, Amendment to Grazing and Recreational Lease recorded in Book 1068 under Reception No. 02008624, Quit Claim Deed recorded in Book 1068 under Reception No. 02008625 (20 foot access easement subject to grazing lease), Right-of-way easement and Licenses recorded in Book 1068 under Reception No. 02008626, Quit Claim Deed recorded in Book 1068 under Reception No. 02008627(reconfirms rights previously granted in Book 1045 under Reception No. 10983413), Quit Claim Deed recorded in Book 1068 under Reception No. 02008628 (20 foot permanent access easement), Quit Claim Deed recorded in Book 1076 under Reception No. 02017072 (affects parcels recorded in Book 1068 under Reception No. 02008628, Reception No. 02008620,Reception No. 02008616 and Reception No. 02008627),Quit Claim Deed recorded in Book 1111 under Reception No. 02052204, Quit Claim Deed recorded in Book 1112 under Reception No. 02053446, (Amends Legal in Quit Claim Deed recorded in Book 1068 under ^ Reception No. 02008619),Agreement recorded in Book 1117 under Reception No. 02058723, Grazing and Recreational Lease recorded in Book 1148 under Reception No.02090926,Order Approving Settlement Agreement recorded in Book 1201 under Reception No. 02147157, Supplemental Declaration recorded in Book 1224 under Reception No. 02170703, (Relocates easement granted in Book 1068 under Reception No. 02008628), Amendment to Grant of Easement recorded in Book 1268 under Reception No. 02218734,(restates and amends right- of-way and easement recorded in Book 1045 under Reception No. 01983413 and Book 1068 under Reception No. 02008627), Oil and Gas Lease recorded in Book 1327 under Reception No. 02280130 and all other easements, agreements and rights-of-way of record. I ê( 4! !iiliè 'IIIIII"II I"" IIIII 'I'II'I III I'I'II 'll If'I 0.00 JR Sukl Mukamoto r ) ) ) EXHIBIT F FINANCING PLAN 03/24/99 4:05 PM 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008-2018 Total Revenue Beginning Cash Balance 350,000 0 0 0 0 0 0 0 0 0 0 350,000 Bond Proceeds Net of Issuance Costs 1,900,000 0 0 0 0 0 0 0 0 0 0 1,900,000 Tap Fees-Central Weld(Note#1) 0 243,000 225,000 357,500 480,000 650,000 700,000- 750,000 800,000 680,000 0 4,885,500 Water Service Charges$5/mo 0 540 3,380 6,290 10,325 15,070 20,950 26,980 33,035 39,035 434,040 589,645 Developer Fees(Note#2) 0 837,000 721,913 1,079,259 1,374,810 1,778,661 1,840,914 1,905,346 1,972,033 1,632,843 0 13,142,778 Interest Income(Note#3) 30,000 83,591 1,158 12,438 2,942 726 5,751 13,891 25,955 42.418 0 218,868 Property Taxes-Oil&Gas(Note#4) 257,979 270,208 211,794 192,671 177,160 162,517 150,028 138,296 126,609 116,522 533,395 2,337,179 Property Taxes-Residential(Note#5) 0 0 0 42,077 77,141 127,789 190,125 268,045 345,965 423,885 5,579,072 7,054,098 Specific Ownership Taxes(Note#6) 25,798 21,617 16,944 18,780 20,344 23,224 27,212 32,507 37,806 43,233 488,997 756,462 Facilities Operation(Note#7) 3,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 0 99,000 Conservation Trust Fund(Note#8) 0 161 296 490 729 1,028 1,327 1,626 1,925 2,139 21,390 31,111 Total Revenue 2,563,777 1,458,956 1,192,188 1,721,014 2,154,722 2,769,987 2,946,980 3,147,065 3,353,402 2,989,935 7,035,504 31,333,530 Expense Operation&Administration(Note#9) 20,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 500,000 970,000 CBT Water(Note#10) 47,600 52,500 180,000 292,500 400,000 550,000 600,000 650,000 700,000 600,000 0 4,072,600 Roadway Paving(Note#11) 0 766,172 207,115 389,693 624,512 711,464 736,366 762,138 788,813 514,346 0 5,500,619 Roadway Earthwork(Note#11) 229,742 300,124 75,358 141,790 318,210 384,420 397,875 411,801 426,214- 277,913 0 2,963,446 Culverts(Note#11) 0 81,919 9,307 26,489 48,796 57,376 59,384 61,463 63,614 41,479 0 449,828 Entrance&Administration Bldgs(Note 28,970 345,000 0- 0 0 0 0 0 0 0 0 373,970 #12) Mosquito Control 0 23,480 23,480 23,480 0 0 0 0 O 0 0 70,440 Clubhouse,Swimming,Tennis(Note 0 0 0 454,199 0 0 0 0 0 0 0 454,199 #13) Marina,Beach,Lake Christina(Note 16,504 552,253 0 0 0 0 0 0 0 0 0 568,756 #14) - _ Equestrian Center(Note#15) 0 0 Water System-Off Site 175,148 195,000 0 0 0 0 0 0 0 0 0 370,148 Water System-On Site(Note#16) 236,966 209,563 119,081 272,908 409,268 470,484 486,9511 503,995 521,634 340,132 0 3,570,981 F-1 Engineering/Supervision 113,691 103,900 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 0 577,591 Landscaping(Note#17) 0 197,200 88,751 27,371 69,219 86,064 89,076 92,194 95,421 62,219 0 807,516 Signage(Note#11) 0 22,007 13,193 9,454 24,935 28,688 29,692 30,731 31,807 20,740 0 211,248 Contingency(Note#18) 23,335 78,849 25,640 43,385 74,747 86,925 89,967 93,116 96,375 62,841 0 675,182 Bond Interest(Note#19) 129,660 129,660 129,660 129,360 129,060 124,860 120,360 115,260 109,860 706,440 1,824,180 Bond Principal(Note#19) 0 0 0 5.000 5.000 70,000 75,000 85,000 90,000 95,000 1,575,000 2,000,000 Total Expense 891,956 3,107,626 966,585 1,910,928 2,199,048 2,669,482 2,784,172 2,905,798 3,024,138 2,219,530 2,781,440 25,460,704 Cash Available Cumulative 1,671,821, 23,150 248,753 58,839 14,513 115,017 277,825 519,092 848,356 1,618,761 5,872,825 ssessed Valuation Oil&Gas Sales 6,449,480 6,755,200 5,294,884 4,816,772 4,428,993 4,062,916 3,750,695 3,457,396 3,165,237 2,913,055 2,414,725 Residential Improvements 0 1,314,900 2,410,650 3,993,400 5,941,400 8,376,400 10,811,400 13,246,400 17,629,400 Total Valuation 6,449,480 6,755,200 5,294,884 6.131,672 6,839,643 8,056,316 9,692,095 11,833,796 13,976,637 16,159,455 20,044,125 Lot Sales 0 54 45 65 80 100 100 100 100 80 724 Population(Note#20) 0 140 257 426 634 894 1,154 1,414 1,674 1,860 1,860 Assumptions to Projections: Income: 1. Tap Fees passing to District from Central Weld starting at$4,500 per lot in 1999 with the amount increasing at$500 per lot each year thereafter. 2. Developer Fees to District starting at$15,500 per lot in 1999. Fees inflated at 3.5%per annum thereafter. 3. Interest income is not projected after 2007. It is assumed that cash accumulations will be expended or revenue will be decreased. 4. Property Taxes from Oil&Gas Production based on McCartney Engineering,LLC.Report dated as of January 1, 1998. 1999 amount adjusted to Assessed Valuation from Weld County. 5. Property Taxes from Residential assumes home valuation of$250,000 and two year lag from lot sale to tax collection. 6. Specific Ownership Tax projected at 7%of Property Tax. 7. Facilities Operation income from renting to Developer a sales office in portion of District Administration Building for$1,000 per month. 8. Based upon average of$1.15 per capita annually per actual Lottery distributions in 1998. F-2 Expenses: 9. Maintenance expense includes annual projected costs for mowing the greenbelt areas. 10. The District acquired CBT Water Capacity during 1997 and 1998 to serve the first 39 lots. CBT Water Capacity purchases in the future are projected at$3,500 per lot in 1999 with the cost increasing 500 per lot each year thereafter. 11. Road Paving,Earthwork,Culverts and Signage are based on First Phase Contract with Mountain Constructors,Inc.with the balance of the First Filing estimated by Milestone Engineering. Second Filing Costs are projected based on per lot costs from Milestone Engineering Second Filing estimates. Costs are inflated at 3.5%starting in 2000. Includes$129,105 change order added to projection on 1/28/99. 12. Entrance and Administrative Buildings are assumed to be built in 1999 based on bids awarded by the District in January 1999. 13. Clubhouse projected to be completed in 2001. District has estimated the cost in 1999 dollars to be$424,000. Projected costs are inflated at 3.5%per annum. 14. Water amenities are based on Engineer's estimates and to be completed in 1999. 15. Equestrian Center improvements are not included in this projection. No work is anticipated at the Equestrian Center until such time as is economically feasible. 16. On Site Water System costs are based on First Phase Contract with Northern Colorado Constructors with the balance of the First Filing estimated by Milestone Engineering. Second Filing Costs are projected based on per lot costs from Milestone Engineering Second Filing estimates. Costs are inflated at 3.5%starting in 2000. 17. Landscaping costs based on estimate from Silver Lace Landscaping. Second Filing cost estimates from Milestone Engineering. Costs are inflated at 3.5%starting in 2000. 18. Contingency of 5%has been projected for Road,Water and Landscaping Costs. Projected costs are inflated at 3.5%per annum starting in 2000. Preliminary engineering survey includes a supplemental contingency factor of 10%on most capital improvements. 19. Bond Interest and Principal based on Official Statement dated October 21, 1998. • 20. Based upon 2.6 persons per lot with 1,860 total population. F-3 EXHIBIT G Debt Amortization Schedule Year Interest Principal Total Annual Balance Payments 2,000,000 1999 129,660 0 129,660 2,000,000 2000 129,660 0 129,660 2,000,000 2001 129,660 5,000 134,660 1,995,000 2002 129,360 5,000 134,360 1,990,000 2003 129,060 70,000 199,060 1,920,000 2004 124,860 75,000 199,860 1,845,000 2005 120,360 85,000 205,360 1 ,760,000 2006 115,260 90,000 205,260 1,670,000 2007 109,860 95,000 204,860 1,575,000 2008 104,160 100,000 204,160 1,475,000 2009 98,160 110,000 208,160 1,365,000 -- 2010 91,560 115,000 206,560 1,250,000 2011 84,200 125,000 209,200 1,125,000 2012 76,200 135,000 211,200 990,000 2013 67,560 140,000 207,560 850,000 2014 58,600 150,000 208,600 700,000 2015 49,000 160,000 209,000 540,000 2016 37,800 170,000 207,800 370,000 2017 25,900 180,000 205,900 190,000 2018 13,300 190,000 203,300 0 EXHIBIT H [1997 FINANCIAL STATEMENTS] BEEBE DRAW FARMS METROPOLITAN DISTRICT FINANCIAL STATEMENTS and SUPPLEMENTAL INFORMATION DECEMBER 31 , 1997 ` fan V chooneveld and Co., Inc. Certified Public Accountants BEEBE DRAW FARMS METROPOLITAN DISTRICT TABLE OF CONTENTS DECEMBER 31, 1997 Page Independent Auditor's Report 1 General Purpose Financial Statements Combined Balance Sheet - All Fund Types and Account Group 2-3 Combined Statement of Revenue, Expenditures and Changes in Fund Balance - All Governmental Fund Types 4-5 Combined Statement of Revenue, Expenditures and Changes in Fund Balance - Actual and Budget - All Governmental Fund Types 6-7 Notes to Financial Statements 8-14 Supplemental Information Summary of Assessed Valuation, Mill Levy and Property Taxes Collected 15 V/ an Principals C Jack Schroeder Larry R. Beardsley chooneveld and Co. Inc. Richard M. Carlson 7 Mark D. Elmshauser Certified Public Accountants - Kevin E Collins INDEPENDENT AUDITOR'S REPORT Board of Directors Beebe Draw Farms Metropolitan District Weld County, Colorado We have audited the accompanying general purpose financial statements of Beebe Draw Farms Metropolitan District as of and for the year ended December 31, 1997, as listed in the foregoing Table of Contents. These financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these financial statements based on our audit. • We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of Beebe Draw Farms Metropolitan District at December 31, 1997 and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The supplemental information as listed in the Table of Contents is presented for purposes of additional analysis and is not a required part of the general purpose financial statements of Beebe Draw Farms Metropolitan District. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. V s June 15, 1998 6000 Greenwood Plaza Blvd., #110 • Greenwood Village, CO 80111-4817 303-779-4000 • FAX 303-770-9276 •E-mail: vscocpas@vscocpa.com Members:American Institute of Certified Public Accountants-S.E.C.and Private Practice Sections•Colorado Society of Certified Public Accountants SUPPLEMENTAL INFORMATION GENERAL PURPOSE FINANCIAL STATEMENTS r BEEBE DRAW FARMS METROPOLITAN DISTRICT COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUP DECEMBER 31, 1997 Governmental Fund Types Debt Capital General Service Projects ASSETS Fund Fund Fund Cash deposits $ 235,202 $ 225,244 $ 61,359 Cash held by County Treasurer Property tax receivable 73,800 184,000 Property Total assets $ 309,002 $ 225,244 $ 245,359 LIABILITIES AND EOUITY LIABILITIES Accounts payable $ 13,457 $ $ Deferred property tax revenue 73.800 184,000 Total liabilities 87,257 184.000 EQUITY Investment in general fixed assets Fund balances Reserved 8,700 225,244 61.359 Unreserved and undesignated 213,045 Total equity 221,745 225,244 61,359 Total liabilities and equity $ 309,002 $ 225.244 $ 245,359 Account Grout) General Totals Fixed (Memorandum Only) Assets 1997 1996 $ $ 521,805 $ 698,549 2,761 257,800 240,000 847,871 847,871 309,609 $ 847,871 $ 1,627,476 $ 1,250,919 $ $ 13,457 $ 6,250 257,800 240,000 271,257 246,250 847,871 847,871 309,609 295,303 514,520 213,045 180,540 847,871 1,356.219 1,004,669 $ 847,871 $ 1,627,476 $ 1.250,919 The accompanying notes are an integral part of the financial statements. -3- BEEBE DRAW FARMS METROPOLITAN DISTRICT COMBINED STATEMENT OF REVENUE. EXPENDITURES AND CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES YEAR ENDED DECEMBER 31, 1997 Debt Capital General Service Projects Fund Fund Fund REVENUE Property taxes $ 42,217 $ $ 171,846 Specific ownership taxes 25,962 Lease revenue 25,695 Interest 4,313 22.616 Intergovernmental 28 Total revenue 98,215 194,462 • EXPENDITURES Current Legal 11,855 Insurance 3.667 Audit and accounting 4,000 Directors' fees 500 County Treasurer's fees 690 1.718 Lake lease 28.550 Interest - Abated taxes 5,920 Miscellaneous 2,628 Rent 3,600 Debt service G.O. note - Principal G.O. note - Interest Capital outlay 416.261 Total expenditures 61,410 417,979 EXCESS REVENUE OVER (UNDER) EXPENDITURES 36,805 (223.517) FUND BALANCE - BEGINNING OF YEAR 184.940 225,244 284,876 FUND BALANCE - END OF YEAR $ 221.745 $ 225.244 $ 61.359 -4- Totals (Memorandum Only) 1997 1996 $ 214,063 $ 339,284 25,962 36,082 25,695 24,755 26,929 43,494 28 36 292.677 443.651 11.855 13,684 3,667 3,92? 4.000 4,000 500 950 2.408 3,397 28.550 27,516 5,920 2,628 84 3,600 3,600 350,000 31,500 416.261 51.753 479.389 490.406 (186,712) (46,755) 695.060 741.815 $ 508.348 $ 695.060 The accompanying notes are an integral part of the financial statements. -5- BEEBE DRAW FARMS METROPOLITAN DISTRICT COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET ALL GOVERNMENTAL FUND TYPES YEAR ENDED DECEMBER 31, 1997 General Fund Variance- Favorable Actual Budget (Unfavorable) REVENUE Property taxes $ 42,217 $ 69,003 $ (26,786) Specific ownership taxes 25,962 30,000 (4,038) Lease revenue 25,695 26,000 (305) Interest 4,313 750 3,563 Intergovernmental 28 30 (2) Total revenue 98.215 125.783 (27,568) EXPENDITURES Current Legal 11,855 20,000 8,145 Insurance 3,667 4,000 333 Audit and accounting 4,000 4.500 500 Directors' fees 500 1,500 1.000 County Treasurer's fees 690 2,410 1,720 Lake lease 28,550 29,000 450 Interest - Abated taxes 5,920 (5,920) Miscellaneous 2,628 500 (2,128) Rent 3,600 3,600 Debt service G.O. Note - Interest and issue costs Capital outlay Total expenditures 61,410 65.510 4.100 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES 36.805 60.273 (23.468) OTHER FINANCING SOURCES Proceeds from general obligation bonds Total other financing sources EXCESS OF REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES 36,805 60,273 (23,468) FUND BALANCE - BEGINNING OF YEAR 184.940 185.660 (720) FUND BALANCE - END OF YEAR $ 221.745 $ 245,933 $ (24.188) -6- Debt Service Fund Capital Projects Fund Variance- Variance- Favorable Favorable Actual Budget (Unfavorable) Actual Budget (Unfavorable) $ $ $ $ 171,846 $ 171,908 $ (62) 22,616 7,500 15,116 194,462 179.408 15.054 r 1,718 (1,718) 45.000 45,000 25,000 25,000 416,261 1,423,103 1.006.842 45.000 45.000 417,979 1.448.103 1,030.124 (45.000) 45.000 (223,517) (1,268,695) 1,045,178 1.000.000 (1.000.000) 1,000,000 (1.000.000) (45,000) 45.000 (223,517) (268,695) 45,178 225,244 225.158 86 284,876 270,660 14.216 $ 225.244 $ 180.158 $ 45.086 $ 61.359 $ 1,965 $ 59.394 The accompanying notes are an integral part of the financial statements. 7 BEEBE DRAW FARMS METROPOLITAN DISTRICT NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997 NOTE 1) DEFINITION OF REPORTING ENTITY The District, a quasi-municipal corporation, is governed pursuant to provisions of the Colorado Special District Act. The District's service area is located in Weld County, Colorado. The District was established to provide water, parks and recreational facilities, street and drainage improvements, safety protection and related services. The District has no employees and all operations and administrative functions are contracted. The District follows the Governmental Accounting Standards Board (GASB) accounting pronouncements which provide guidance for determining which governmental activities, organizations and functions should be included within the financial reporting entity. GASB pronouncements set forth the financial accountability of a governmental organization's elected governing body as the basic criterion for including a possible component governmental organization in a primary government's legal entity. Financial accountability includes, but is not limited to, appointment of a voting majority of the organization's governing body, ability to impose its will on the organization, a potential for the organization to provide specific financial benefits or burdens and fiscal dependency. The District is not financially accountable for any other organization, nor is the District a component unit of any other primary governmental entity. NOTE 2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The more significant accounting policies of the District are described as follows: a) Fund Accounting The accounts of the District are organized on the basis of funds or account groups, each of which is considered a separate accounting entity. Fund types and account groups used by the District are described below. Governmental Fund Types General Fund - The General Fund is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in other funds. Debt Service Fund - The Debt Service Fund is used to account for the accumulation of resources for, and the payment of general long-term obligation principal, interest and related costs. 8 Capital Projects Fund - The Capital Projects Fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities. Account Group General Fixed Assets Account Group - This group of accounts is established to account for recorded fixed assets of the District. b) Basis of Accounting The modified accrual basis of accounting is followed in the governmental fund types. Revenue is recorded when susceptible to accrual, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The major sources of revenue which are susceptible to accrual are property taxes. Expenditures, other than interest on long-term obligations are recorded when the liability is incurred or the long-term obligation paid. c) Budgets In accordance with the State Budget Law, the District's Board of Directors holds public hearings in the fall each year to approve the budget and appropriate the funds for the ensuing year. The appropriation is at the total fund expenditures level and lapses at year end. The District's Board of Directors can modify the budget by line item within the total appropriation without notification. The appropriation can only be modified upon completion of notification and publication requirements. Encumbrance accounting (open purchase orders, contracts in process and other commitments for the expenditures of funds in future periods) is not used by the District for budget or financial reporting purposes. d) Pooled Cash The District follows the practice of pooling cash and investments of all funds to maximize interest earnings. Except when required by trust or other agreements, all cash is deposited to and disbursed from a single bank account. Cash in excess of immediate operating requirements is pooled for deposit and investment flexibility. Interest is allocated to the General and Capital Projects Funds as determined by the Board of Directors in the budget process. e) General Fixed Asset Account Group Property is stated at cost. No depreciation is provided on general fixed assets. -9- f) Property Taxes Property taxes are levied by the District Board of Directors. The levy is based on assessed valuations determined by the County Assessor generally as of January 1 of each year. The levy is normally set by December 15 by certification to the County Commissioners to put the tax lien on the individual properties as of January 1 of the following year. The County Treasurer collects the determined taxes during the ensuing calendar year. The taxes are payable by April or if in equal installments, at the taxpayers election, in February and June. Delinquent taxpayers are notified in August and generally sales of the tax liens on delinquent properties are held in November or December. The County Treasurer remits the taxes collected monthly to the District. Property taxes, net of estimated uncollectible taxes, are recorded initially as deferred revenue in the year they are levied and measurable. The deferred property tax revenue are recorded as revenue in the year they are available or collected. g) Fund Equity Fund Balance The fund balances have been reserved for that portion of the fund balance that is legally segregated or is not subject to future appropriation. Designations of unreserved fund balances indicate management's intention for future utilization of such funds and are subject to change by management. The District considers all unreserved fund balances to be "reserves" for future operations or capital replacement as defined within Article X, Section 20 of the Constitution of the State of Colorado (see Note 9). Reserved Fund Balance Article X, Section 20 of the Constitution of the State of Colorado requires the District to establish Emergency Reserves (see Note 9). $8,700 of the fund balance has been reserved in compliance with this requirement. The fund balance in the Debt Service Fund is reserved for future general obligation debt. The fund balance in the Capital Projects Fund is reserved for street and drainage improvements and to provide water facilities. h) Totals (Memorandum Only) ^ Total columns on the combined statements are captioned "(Memorandum Only)" because they do not represent consolidated financial information and are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations, in conformity with generally accepted accounting principles. Neither is such data comparable -10- to a consolidation. Interfund eliminations have not been made in the aggregation of this data. NOTE 3) CASH AND INVESTMENTS Cash Deposits The Colorado Public Deposit Protection Act (PDPA) requires that all units of local government deposit cash in eligible public depositories. Eligibility is determined by state regulators. Amounts on deposit in excess of federal insurance levels must be collateralized. The eligible collateral is determined by the PDPA. PDPA allows the institution to create a single collateral pool for all public funds. The pool for all the uninsured public deposits as a group is to be maintained by another institution or held in trust. The market value of the collateral must be at least equal to the aggregate uninsured deposits. The State Regulatory Commissions for banks and financial services are required by Statute to monitor the naming of eligible depositories and reporting of the uninsured deposits and assets maintained in the collateral pools. At December 31, 1997, the District's cash deposits had a bank balance and a carrying balance as follows: Carrying Bank Balance Balance Insured deposits $ 226,448 $ 226,448 Deposits required to be collateralized in single institution pools 295,357 295,357 $ 521,805 $ 521.805 Investments Colorado statutes specify investment instruments meeting defined rating and risk criteria in which local governments may invest which include: Obligations of the United States and certain U.S. government agency securities Certain international agency securities General obligation and revenue bonds of U.S. local government entities Bankers' acceptances of certain banks Commercial paper Written repurchase agreements collateralized by certain authorized securities Certain money market funds Guaranteed investment contracts Local government investment pools During the year ended December 31, 1997, the District had no investments. -11- NOTE 4) PROPERTY An analysis of the changes in property for the year ended December 31, 1997 follows: Balance at Balance at January December By Classification 1, 1997 Additions Retirements 31, 1997 Land $ $ 128,375 $ $ 128,375 Roads 79,699 26,785 106,484 Water distribution facilities 162,621 3,200 165,821 Offsite water facilities 300,000 300,000 Water capacity 67,500 67,500 Recreation facilities 67.289 12.402 79,691 $ 309.609 $ 538,262 $ -0- $ 847.871 By Source Contributed $ $ 122,000 $ $ 122,000 Long-term debt obligations 309.609 416.262 725,871 $ 309.609 $ 538.262 $ -0- $ 847.871 During the year ended December 31, 1997,the primary developer in the District(see Note 6) contributed land valued at$122.000 to the District. NOTE 5) LONG-TERM OBLIGATIONS On November 2, 1993, the voters of the District passed two questions to increase debt by a total of $2,000,000, at an interest rate not to exceed 9%, along with property taxes in the maximum amount of$280,000 per year to pay off that debt. On November 5, 1996, the voters of the District passed three questions to increase debt by a total of$3,000,000, at an interest rate not to exceed 10%, along with property taxes in the maximum amount of$450,000 per year to pay off that debt in not more than 20 years. At December 31, 1997, the District had authorized but unissued indebtedness in the following amounts allocated for the following purposes: Parks and recreational facilities $ 1,000,000 Water facilities 1,675,000 Street improvements 1,975,000 $ 4.650,000 NOTE 6) RELATED PARTIES The primary developer of real property in the District is R.E.I. Limited Liability Company (Developer). successor in interest to Beebe Draw Farms, Ltd. Certain members of the Board of Directors are associated with the Developer. -12- NOTE 7) COMMITMENTS r Operating JPase and Sublease On March 4, 1987, the Developer (see Note 6) entered into a grazing and recreation lease for Milton Lake and surrounding land in Weld County. Subsequent to that date, the Developer assigned the lease to the District. The lease continues through 2016 and requires annual payments of$20,000, adjusted by the Consumer Price Index, which amounted to$28,550 for 1997. The annual payment due over the last 12 years of the lease is subject to renegotiation by both parties. If the fair market rental value of the property increases for any two consecutive years at a rate in excess of the Consumer Price Index adjustment, the rate must increase in accordance with such increased fair market rental value. The District has also been assigned a sublease of the above described property. The lease income to the District for the year ended December 31, 1997 was $25,695. The term of the sublease continues through 2004. NOTE 8) RISK MANAGEMENT The District is exposed to various risks of loss related to torts, thefts of assets; errors or omissions, or acts of God. The District maintains commercial insurance for all risks of loss. Settled claims have not exceeded this commercial coverage in any of the past three fiscal years. r^ NOTE 9) TAX, SPENDING AND DEBT LIMITATIONS Article X, Section 20 of the Colorado Constitution, commonly known as the Taxpayer's Bill of Rights (TABOR) contains tax, spending, revenue and debt limitations which apply to the State of Colorado and all local governments. Spending and revenue limits are determined based on the prior year's Fiscal Year Spending adjusted for allowable increases based upon inflation and local .growth. Fiscal Year Spending is generally defined as expenditures plus reserve increases with certain exceptions. Revenue in excess of the Fiscal Year Spending limit must be refunded unless the voters approve retention of such revenue. TABOR requires local governments to establish Emergency Reserves. These reserves must be at least 3% of Fiscal Year Spending (excluding bonded debt service). Local governments are not allowed to use the emergency reserves to compensate for economic conditions, revenue shortfalls, or salary or benefit increases. The District's management believes, after consultation with legal counsel, that it is in compliance with the provisions of TABOR. However, TABOR is complex and subject to interpretation. Many of the provisions, including the interpretation of how to calculate Fiscal Year Spending limits will require judicial interpretation. On November 5, 1996, the voters of the District approved the retention of all future revenue without limitation under TABOR or other laws. -13- NOTE 10) NTERGOVERNMENTAL AGREEMENT On June 27, 1995, the District entered into a contract with the Central Weld County Water District (Water District) and the REI Limited Liability Company (Company) (see Note 6). The Company is planning an eight hundred unit residential development within District boundaries. The District or the Company agree to construct or reimburse the Water District for construction costs of water facilities directly related to the development. The Water District will assume all operation, maintenance, repair and replacement of all water facilities upon acceptance and completion. In June 1997, the District paid the Water District a nonrefundable contribution for the construction of offsite transmission and water storage facilities in the amount of $300.000. As the District obtains water rights, they are given to the Water District in return for the right to agreed upon levels of water capacity. During 1997, water rights adequate for 25 single family homes were purchased for $67,500 and transferred to the Water District. • r -14- BEEBE DRAW FARMS METROPOLITAN DISTRICT SUMMARY OF ASSESSED VALUATION, MILL LEVY AND PROPERTY TAXES COLLECTED DECEMBER 31, 1997 Prior Year Assessed Valuation for Current Mills Levied Percent Year Ended Year Property Debt Capital Total Property Taxes Collected December 31 Tax Levy General Service Projects Total Levied Collected to Levied 1993 $ 3,698,210 11.877 28.123 40.000 $ 147,928 $ 148,208 100.2% 1994 $ 4,550,890 10.248 29.752 40.000 $ 182,032 $ 182,035 100.0% 1995 $ 7,120,160 9.941 30.059 40.000 $ 284,806 $ 285,450 100.2% 1996 $ 8.449.710 9.413 30.587 40.000 $ 337,988 $ 339.284 100.4% 1997 $ 6,022,820 11.457 28.543 40.000 $ 240,913 $ 214,063 88.9% Estimated for the year ending December 31, 1998 $ 6,449,480 11.457 28.543 40.000 $ 257.980 NOTE: Property taxes collected in any one year include collection of delinquent property taxes or abatements of property taxes levied in prior years. Information received from the County Treasurer does not permit identification of specific year of assessment. -15- COLLINS AND COCKREL, P.C. PAUL R.COCKREL TELEPHONE ATTORNEYS AT LAW JAMES P.COLLINS 303-986-1551 i-.- 390 UNION BOULEVARD.SUITE 400 ROBERT G.COLE DENVER.COLORADO 80228-1556 PAUL C.RUFIEN WATS TIMOTHY J.FLYNN 800-354-5941 DEREK G.PASSARELLI May 24, 1999 TELEFAX 303-986-1755 E-MAIL CandC PC@aol.com Richard W. Toussaint Toussaint & Nemer, P.C . 3103 Evergreen Parkway, Suite 210 Evergreen, Colorado 80439-7971 RE: Evergreen Central Metropolitan District and Upper Bear Creek Water and Sanitation District / Wastewater Treatment and Service Agreement Dear Richard: �^ Enclosed are four copies of the final Wastewater Treatment and Service Agreement for both Evergreen Central Metropolitan District and Upper Bear Creek Water and Sanitation District . The final version includes the final capacity allocations . Also enclosed are redlined illustrating the specific changes in each Agreement for your quick reference. Please arrange for execution of two copies of the Service Agreement by the Board of Directors of each District and return to me for final approval by Evergreen. I will return one fully executed copy of each Agreement when available. If you have any question, please advise . Sincerely, Paul R. Cockrel /ab Enc. cc: EMD EMDLLTR\TOUS-AGR.DOC Hello