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Home My WebLink About830603.tiff RESOLUTION RE: INDUSTRIAL REVENUE BOND APPLICATION - GATEWAY PARTNERSHIP WHEREAS, Weld County , Colorado (the "County") , a body politic and corporate and a political subdivision of the State of Colorado, is authorized and empowered by the provisions of the County and Municipality Development Revenue Bond Act , article 3 , title 29 , C . R. S . 1973 , as amended (the "Act") , to finance a project , as that term is defined in the Act , and to issue its industrial development revenue bonds for the purpose of paying the cost of financing a project; and WHEREAS , the individuals described in Exhibit A hereto (the "Participants") have requested the County to issue and sell, subject to the unqualified approving opinion of Fischer , Brown , Huddleston & Gunn ( "Bond Counsel") , its industrial development revenue bonds pursuant to provisions of the Act for the purpose of financing the acquisition of land and building and the renovation of a commercial office building constituting a "project , " as that term is defined in the Act (the "Project" ) , for the Participants; and WHEREAS, the County wishes to declare its intention to authorize an issue of its industrial development revenue bonds for the purpose of paying the cost of financing the Project , when so requested by the Participants , upon such terms and conditions as may then be agreed upon by the County and the Participants . NOW, THEREFORE , be it resolved by the Board of County Commissioners of the County that it does hereby declare its intention to authorize the issuance and sale of industrial development revenue bonds of the Issuer , subject to the unqualified approving opinion of Bond Counsel , under and in accordance with the Act , in an amount necessary to pay the cost of the Project as described in Exhibit B , presently estimated to be a maximum of $3 ,000 , 000 , and upon such terms and conditions as may be mutually agreed upon by the County and the Participants, the issuance and sale of such bonds to be authorized by resolution or ordinance of the Board of County Commissioners at a meeting to be held for such purposes. Such bonds and the interest coupons , if any, appurtenant thereto shall never constitute the debt or indebtedness of the 830603 County within the meaning of any provision or limitation of the Colorado constitution or statutes, and shall not constitute nor give rise to a pecuniary liability of the County or a charge against its general credit or taxing power . Passed and approved this 25th day of April , 1983 . BOARD OF COUNTY COMMISSIONERS WELD COUNTY , COLORADO 7- 7 7 (Seal) (y 7, G .. P ..F ..3-- ' Chuck Carlson, Chairman Attest:1111, 7 t;ri�n.I.A.f�.e..Ulivaii..'i U -47� By J T. /Martin, o^-Tem Clerk A /C/ v tw Vl " "` (., ene R. Brantner APPROVED AS TO FORM: J efr.rL1- -- Norman Carlson Zitounty Attorney J cqu ine J�inson DAY FILE: May 2 , 1983 EXHIBIT A ~ / GATEWAY PARTNERSHIP ARIX INVESTORS, LTD. THE GREELEY SHELTERSHIP PARTNER PARTNER 6-2 PROPERTIES ARIX, A PROFESSIONAL CORPORATION DALE BOEHNER RICHARD R. BOND W,R. & LINDA CLARK LIMITED PARTNERS JUDITH W. EWEGEN LESTER A. EWEGEN JOHN K. JEROME N. KENT BAKER KADLECEK INVESTMENT CO. EUGENE R. BRAUER W.H. G PATRICIA KAHLER GORDON W. BRUCHNER THEODORE M. NELSON 815 PARTNERSHIP C. NEAL CARPENTER GENE S. PEPIN PATRICK C. DWYER ROBERT J. SHREVE D.W. E HARRIET SCHURLE DALE STEICHEN CHRISTOPHER SCOTT ROBERT D. THOMAS LARRY E. SCOTT GARY R. WINDOLPH ROBERT J. SHREVE STANLEY COMMERCIAL RADIO DOROTHY M. STANLEY ROBERT W. STANLEY EXHIBIT B Project Outline Site: 8th Avenue and 8th Street, Greeley, Colorado Purchase existing building and renovate it (73,100 square feet on four levels) Value: Upon completion of renovation, the property will have an appraised value of $3,600,000. Financing: Industrial Revenue Bonds, to be placed locally ($2,500,000 -- $3,000,000) Participants: The Greeley Sheltership, a partnership and the ARIX Partnership -- forming the new "Gateway Partnership" Tenants : 50% + occupied by ARIX, P.C. ; existing building tenants; plus space to be leased to financial, real estate, accounting , legal and retail users . THE GREELEY SHELTERSHIP yin r^:44- 11111SSINilik April 6, 1983 1C 7C j[.,- is jby 11 GREEL Mr. Don Warden E' (.OL- Director of Finance Weld County Centennial Building Greeley, CO 80631 Dear Mr. Warden: On behalf of the Gateway Partnership, I submit herewith our application and information pursuant to Ordinance No. 69-A relative to Development Revenue Bonds. Enclosed you will find: 1. Historical and personal information on the applicants 2 . Financial information and project projections 3. A general description of the project Since the partnership "Gateway" is being newly formed for purposes of this project, it has no operating history. Consequently, we have provided personal resumes on the principals. We would be happy to provide any other pertinent information you might require. Our request is approval of a resolution allowing for the sale of up to $3 million in bonds . A letter from our banker and bond counsel will follow. Our understanding is that there will be a hearing on the matter on April 25 . Regards, , / ,J/ am1es M. Kadlecek 01 I for the Gateway Partnership / JMK/hn Enc cc : C . Neal Carpenter, ARIX 818 5th Street - P.O. Box 2400 - Greeley, Colorado 80632 - (303) 352-4517 8th & 8th Building (Renovated) Introduction It is essential that the vitality of downtown Greeley be re-established and enhanced if the City is to maintain existing and be able to attract new enterprises. The existence of the central business - civic center as a vital, busy center of activity is very important to the local economy. The existence of General Improvement District #1 and the related Special Improvement District is evidence that the public supports renewal and rebuilding within the downtown Greeley area. To assist in the redevelopment of the downtown, two Greeley businesses, ARIX, P.C. and the Greeley Sheltership, have joined together as the Gateway Partnership in a project to purchase and renovate the 8th and 8th Building (formerly known as the Rested Building) . The building is a three story building with a full, finished basement which was constructed in 1965. It has been used as a combination of retail and office use. The applicants plan to renovate the building's exterior and interior, installing a new elevator, upgrading the electrical and mechanical systems, and generally redecorating the interior. The renovated building will have a "high-tech" metallic surface appearance when completed. The current retail area on the main floor will be divided into a combination of office, financial, and retail uses . The existing basement level will be occupied by ARIX (Engineers, Architects, and Construction Managers) as will approximately one half of the second floor. ARIX will occupy over 50% of the net leasable space. Other smaller offices, including government, financial , legal, accounting, real estate, and insurance offices will occupy the balance of the building. The 8th and 8th Building contains 73, 100 gross square feet, with approximately 60,500 net leasable square feet. The structure, once renovated, will be attractive and highly visible, thus projecting a progressive, revitalized downtown. ARIX, P.C . will relocate its employees, currently in rented offices on Clubhouse Drive, into the downtown building, thus consolidating its two Greeley locations into one. The participants in the project are both Greeley area entities . ARIX, P .C. is a well established Colorado engineering and architectural firm, with its general offices in Greeley. The Greeley Sheltership, consisting of a number of Greeley area individuals, is a partnership which was established in 1981 and which owns several properties in Greeley (described in more detail in the attached circular dated July, 1982) . The outline on the following page lists the entities and partners who would be owners of the project . GATEWAY PARTNERSHIP ARIX INVESTORS, LTD. THE GREELEY SHELTERSHIP PARTNER PARTNER GENERAL PARTNER PARTNERS ARIX, A PROFESSIONAL CORPORATION B-2 PROPERTIES DALE BOEHNER RICHARD R. BOND W,R. & LINDA CLARK LIMITED PARTNERS JUDITH W. EWEGEN LESTER A. EWEGEN JOHN K. JEROME N. KENT BAKER KADLECEK INVESTMENT CO. EUGENE R. BRAUER W.H. & PATRICIA KAHLER GORDON W. BRUCHNER THEODORE M. NELSON C. NEAL CARPENTER 815 PARTNERSHIP PATRICK C. DWYER GENE S. PEPIN ROBERT J. SHREVE D.W. & HARRIET SCHURLE DALE STEICHEN CHRISTOPHER SCOTT ROBERT D. THOMAS LARRY E. SCOTT GARY R. WINDOLPH ROBERT J. SHREVE STANLEY COMMERCIAL RADIO DOROTHY M. STANLEY ROBERT W. STANLEY Project Outline Site: 8th Avenue and 8th Street, Greeley, Colorado Purchase existing building and renovate it (73,100 square feet on four levels) Value: Upon completion of renovation, the property will have an appraised value of $3,600,000. Financing: Industrial Revenue Bonds, to be placed locally ($2,500,000 -- $3,000,000) Participants: The Greeley Sheltership, a partnership and the ARIX Partnership -- forming the new "Gateway Partnership" Tenants : 50% + occupied by ARIX, P.C. ; existing building tenants; plus space to be leased to financial, real estate, accounting, legal and retail users. "GATEWAY" OFFICE BUILDING (renovated 8th & 8th) Five Year Financial Projections Year 1 Year 2 Year 3 Year 4 Year 5 Total Incomel $574,750 $605,000 $635,250 $665,500 $695,750 Operating 2 222,955 234,100 245,800 258,100 271,000 Expenses Debt Service3 322,383 322,383 322,383 322,383 322,383 CASH FLOW BEFORE $ 29,412 $ 48,517 $ 67,067 $ 85,017 $102,367 TAXES 1. Income represents an average rent of $9.50 per square foot on 60,500 net leasable square footage in Year 1, and a .50c per square foot increase per year. 2. Operating expenses are based on $3.05 per square foot on 73,100 gross square feet, with a 5% per year increase. 3. Debt service based on 10% - 15 year amortization on $2.5 million. HISTORY OF ARIX, A PROFESSIONAL CORPORATION ARIX, A Professional Corporation was founded in March of 1979 when nine members of the management team of C-E Maguire (Colorado) purchased the local assets of the company from Combustion Engineering, Inc. C-E Maguire (Colorado) was originally the corporation of Nelson, Haley, Patterson and Quirk, Inc. NHPQ was founded in 1959 as a partnership with the goal of becoming a full-service engineering company. This goal was realized by the addi- tion of architecture in 1961 and planning in 1967 . The original part- nership was absorbed by the corporation of NHPQ, Inc. in 1963. When the company was acquired by Combustion Engineering, Inc. in Sep- tember of 1971, it retained its local identity and was loosely grouped with four other professional firms under the umbrella of C-E Tec, until January of 1978 when C-E Tec changed to C-E Maguire. The local firm became known as C-E Maguire (Colorado), a name it used until the change to ARIX by the March 1979 purchase. The original stockholders and Board of Directors of ARIX were: N. Kent Baker, Eugene R. Brauer, Gordon M. Bruchner, C Neal Carpenter, Patrick C. Dwyer, Robert J. Shreve, Dale J. Steichen, Robert D. Thomas, and Gary R. Windolph. President of ARIX was C Neal Carpenter and the other stockholders were named vice presidents. BIOGRAPHICAL DATA ON ARIX PRINCIPALS The nine principals of ARIX have a wide range of technical experience in their respective fields and have acquired extensive management expertise while leading our firm to its position as one of the largest and most respected engineering-architectural firms in the Rocky Mountain region. Our management is committed to providing the best possible services to our clients through a successful team approach—a philosophy which is evidenced in the AR IX name itself: AR is a Greek derivative meaning "to join together"and IX is the Roman numeral nine. Thus, the word "ARIX" denotes the nine professionals who have joined together to form and manage our organization. Following is brief biographical data on each of these principals: C NEAL CARPENTER,AIA Mr. Carpenter is President of AR IX. He has had exten- sive management experience beginning in 1961 when he founded the architectural component of the firm. Presently his major responsibilities involve management and review of selected projects, preplanning analysis, a - design review and business management. He received a Bachelor of Architecture from Oklahoma State Uni- versity in 1955, is a registered architect in Colorado, Wyoming, Nebraska, Kansas and Texas, and is NCARB Eir._t Certified. N. KENT BAKER, P.E.,J.D. Mr. Baker is Secretary and a Vice President. He is a registered Professional Engineer (Colorado and Wyo- ming), a Certified Value Engineer, and an attorney. s „ Prior to joining ARIX in 1973, he worked ten years as a general contractor. His experience as both a contractor r „s, and a consultant has given him an understanding of how . aa** a^ # 6.s 11 working relationships can be phased and accommodated qt ' to ensure budget and schedule control. He received his B.S. in Civil Engineering from Colorado State Univer- sity in 1963 and his Juris Doctor degree from the Univer- ,. sity of Denver College of Law in 1967. EUGENE R. BRAUER, P.E. Mr. Brauer is a Vice President and Principal-in-Charge of xr many of the engineering projects. He joined AR IX in la z 1964 and has an additional five years of experience with �. ce4 other firms. During his career, he has specialized in the Lei U UU design of water, sewer, utility and drainage facilities for sv governmental, municipal and industrial clients. Mr. ss is» Brauer received his B.S. in Civil Engineering in 1959 from the University of Colorado and is a registered Professional Engineer in Colorado, Utah and Wyoming and a Certified Consulting Engineer in Colorado. GORDON W. BRUCHNER,P.E., L.S. Mr. Bruchner is a Vice President and Manager Engineer in our Grand Junction office. Since joining the firm in 1971, he has had direct supervisory responsibility for planning, designing and construction inspection of roadway, water, sewer and drainage projects. He has an additional 13 years experience with other firms, =. including eight years as a geologist with mining com- panies. A 1958 graduate of the Colorado School of Mines, Mr. Bruchner is a registered Professional Engi- neer in both Colorado and Wyoming and a registered Land Surveyor in Colorado. MIX PATRICK C. DWYER,AIA Mr. Dwyer is a Vice President and Project Director for selected architectural projects. He has been with the firm for over 15 years and has an additional six years experience with another architectural firm. His plan- k ning and design experience ranges from county/muni- cipal complexes to commercial and educational faci- lities. He received a Bachelor of Architecture degree in as 1963 from the University of Colorado and is a registered C: architect in Colorado and Utah. ¢ieg DALE J. STEICHEN r rz �i Mr. Steichen is Treasurer and a Vice President and joined the firm in 1971. He is responsible for control of the ` !' firm's fiscal affairs, financial accounting, project account- :4 ing and reports and data processing activities. In addition, Mr. Steichen supervises the firm's fully automated ac- + i counting system, and works closely with clients' fiscal µ- x; ; agents fromat a project's inception through completion. He •`; 1 400. received his B.S. in Accounting from the University of , South Dakota. ROBERT J.SHREVE,AIA Mr. Shreve is a Vice President and Principal Architect. He g _ } joined ARIX in 1967 after working six years for other e � . s• firms. It is his responsibility as Principal Architect to � . ensure that aesthetics, functional relationships, budgets 1"R x and schedules are considered during and after the design phase. His experience includes conceptual design studies, i .1'•. , ; > renovation and remodeling projects, and the design of o- ll, V new facilities. He is a graduate of the University of Min- e nesota where he received a B.A. in Architecture in 1960 and a Bachelor of Architecture in 1961. He is a registered q architect in Colorado, Minnesota, South Dakota and Wyoming, in addition to being NCARB Certified. ROBERT D. THOMAS, L.S. Mr. Thomas is a Vice President and manages the firm's survey, photogrammetry, right-of-way, reproduction and � + word processing services. He has had almost 20 years - experience in all phases of surveying and mapping, includ- ing fifteen years with AR IX. He is a registered Land Surveyor in Colorado and attended the University of Northern Colorado and Southern Colorado State College. ` pp 4 ' GARY R.WINDOLPH, P.E. Mr. Windolph is a Vice President who has been with the firm since 1968. He has an additional four years exper- • ience with other firms and has designed and directed 1. a s numerous engineering projects throughout his career. He received his B.S. in Civil Engineering in 1964 from the -yr1m C, b University of Nebraska, and also attended graduate ' - school in business administration and sanitary engineer- i i le ing. He is a registered Professional Engineer in Colorado, Wyoming, Utah, Nebraska and Texas. Resumes of the principal partners (Management Committee) and key employees of the Greeley Sheltership Resume March 24, 1983 James M. Kadlecek Office: 818 5th Street Greeley, CO 80631 Phone: 352-4516 Mailing: P.O. Box 2400 Greeley, CO 80632 General: Born August 18, 1937, in Sterling, Colorado. Parents were farmers, moved to Greeley area in 1952. Seventh of seven children. All brothers and sisters still living. Mother, age 86, still active, resides in Greeley. Married, wife Linda is CPA in Greeley. Two children: James J. (age 24) resides in Edwardsville, Illinois, plans to move to Greeley in July, 1983; Kathryn A. (age 22) is a senior at U.N.C. , majoring in Art . Education: Atwood, Colorado elementary and junior high; Greeley High School; U.N.C. (business); various real estate, business and investment special courses. Considerable educational experience in School of Hard Knocks. Business Experience: Owned photo studios, photography "related businesses from 1955 — 1969. Managed Commercial/Investment Dept . for Wheeler Realty 1970 - 1974. Licensed real estate broker since 1970. Managing partner of Kadlecek Investment Co. 1971 - present . Managing partner of various real estate investment groups and partnerships in Greeley and Denver since 1971 . Partner in residential construction company. Community/Public Service Activities: Member/past president, Greeley Kiwanis Club. Past Board member, Greeley Chamber of Commerce. Past Chairman of Greeley City Planning Commission, Greeley Urban Renewal Authority, Downtown Redevelopment Committee. Executive Committee member of 1970 Centennial Commission. Elected State Senator 1974 and 1978 (served eight years) . Member of the Legislative Audit Committee two years; Joint Budget Committee, six years; numerous committees, commissions, etc . relative to legislative service. Resume Page 2 Awards: Mayor's Community Service Award, 1971. One of the top five legislators, Denver Post Polls of 1977, 1979 and 1981 . Jim Kadlecek Day, August 18, 1980, proclaimed by acting Governor Bob Leon Kirsht . Elks Distinguished Citizenship Award, 1981 - 82. Friend of U.N.C. , 1982. Certificates of Appreciation or Recognition from Colorado Vocational Association Colorado Special Olympics Colorado Congress of Parents, Teachers and Students Weld Mental Health Center Morgan Community College United Bank of Greeley Advisory Council Colorado Child Care Coalition University of Colorado School of Midicine Colorado Corrections JOHN K. JEROME, 44, is a Greeley native involved in the whole- sale distribution business with interests in Greeley, Ft . Collins, and Boulder. While he was raised in the family business, he has been directly involved full time since 1963. Investments in the real estate market include properties in Greeley, Ft . Collins, Estes Park, and Larimer County. He considers himself a life long resident of Greeley and resides here with his wife and three children. Jerome's education includes 2 degrees with honors from the University of Colorado (Engineering, Business) . He was chosen out- standing senior engineer at Boulder and worked for the Boeing Company and United Aircraft before his return to Greeley. He was a member of four honor societies. Recreational activities center around hunting and fishing, with the shooting sports predominating. He has coordinated the shooting programs for the city recreation department for about 20 years and is a certified pistol instructor, a life member of the National Rifle Assoc- iation, and time permitting, an active competitive shooter. JUDITH W. EWEGEN, 44, is "almost" a native, raised in Greeley and was a 1956 graduate of Greeley High School . She was a drama major at UNC (Colorado State College) and is still active in the Greeley Civic Theatre. Judith also attended Denver University, studying law while working as a legal secretary for the Denver Water Board and later as a clerk for the firm of Hodges, Silverstein and Harrington. Her past business experience includes partnership in an upholstery shop and a census and survey business. In addition, she and her husband owned and operated a dryland farm in the Briggsdale area for 10 years. She has been active in real estate investments since 1973, and became licensed in 1975. An active local realtor, she has been chairman of the Political Affairs Committee for the past 3 years, was chairman of the membership committee prior to that , and has been on the Community Relations Committee since its inception in 1977. She is a member of I.C .M. (Institute of Creative Marketing) and N.C.R.E .E. (Northern Colorado Real Estate Exchange) , and has been on the Board of Directors of NCREE for the past 4 years. Judy also served on the Weld County Board of Adjustments for 2 years. GENE S. PEPIN, 56, was born in Chicago, Illinois where he attended elementary and high school . Leaving high school to enlist in the U.S. Navy, he completed basic training and basic engineering school at Great Lakes, Illinois, and was assigned to a destroyer, serving in the Paci— fic Theatre during World War II. After the war ended, he went back to Chicago to complete an apprenticeship and become a journeyman auto mechanic. In 1949 he came to Greeley to attend CSCE . Gene's education includes an A.B. degree in Industrial Arts, a master in Industrial Arts, and an advanced degree in educational administration. Gene worked as a draftsman prior to teaching in School District #6 for 23 years. He retired from teaching in 1976 in order to spend full time in the construction business. Gene has been associated with the construction business most of his life, being the son of a construction worker. While teaching, he served two terms as president of the Greeley Classroom Teachers Association. He later served as vice president and then president of the Greeley Education Association. He also was a member of the Colorado Education Association state committee on prof— essional negotiations, and served as delegate to the NEA conventions at Seattle, Miami, and New York City. He represented GEA at a regional conference at Salt Lake City. Gene was also sent by the Greeley Indus- trial Arts Association to represent them at a convention in San Francisco. Gene is now a partner in Carolin Construction Company which was formed in 1971 and has built numerous homes and apartments in Greeley, as well as some commercial projects. He presently serves on the Board of Directors of Northern Colorado Homebuilders Association. Gene has a wife and four children and has now lived in Greeley for the past 35 years . ROBERT "BUD" STANLEY, 51, has been a resident of Greeley since 1956. Stanley Commercial Radio, Bud's business, involves the design, sale, installation, and maintenance of commercial 2-way radio systems for business, industrial, and governmental use. He has real estate investments in Weld, Larimer, Boulder, and Logan counties. He is married and has five children, two of whom are associated with him in his business . Robert was graduated from Greeley Central high school, and furthered his technical education in Los Angeles, and his business education in Missouri. He served 4 years in the Air Force during the Korean war where he was involved in communications . Bud has served on the advisory board to General Electric Mobile Radio Department for a number of terms, which involved contributing to major marketing decisions by General Electric Company. He is a private pilot and flys his corporation's company airplane as part of his duties. He also provides computer programs for one of his company's computers. Mr. Stanley enjoys fishing, flying, programming, and traveling as recreational activities . He is a 30-year member of the Greeley Elks Club, and has been a member of other civic clubs over the years. JODI EDMUNDS, 25, serves as the property manager for the Greeley Sheltership. Her responsibilities include leasing the apartments, enforcing rules & regulations of the buildings, supervision of resident managers and maintenance personnel, and maintenance of all accounting records . She reports directly to the Management Committee on a regular basis, and works closely with Jim Kadlecek on all major decisions rela— tive to operations. Jodi grew up in Pueblo, Colorado, and moved to Greeley in 1976. She completed a 2-year business program at UNC, and has worked in Greeley real estate offices since 1978. Her experience in property management includes working as a resident manager in a Greeley apart- ment complex, and serving as bookkeeper/assistant property manager for Real Estate Consultants, Inc. for 3 years . She has worked as property manager for the Greeley Sheltership for 1% years, as well as managing other properties for Kadlecek Realty. Jodi also works as bookkeeper/secretary for her husband ' s manufacturing business on a part-time basis, and is active in the Christian Congregational Church. -_ 'l'fiiliated Greeley National Bank One Greeley Nat onal Plaza Post O1 ha-.Box 1098 Greeley.Colorado 80632 303'356-1234 April 8, 1983 j� f o".i rid j Weld County Commissioners • Centennial Center "� 915 10th St. Greeley, CO 80631 RE: Proposed Industrial Development Revenue Bond Issue for Renovation of Office at 8th Avenue and 8th Street Ladies and Gentlemen: At the request of the principals involved in the proposed industrial development revenue bond issue financing the renovation of the office building at 8th Avenue and 8th Street in Greeley, Colorado, I have reviewed the financial projections for the project, the anticipated terms of the bond issue, and contacted potential purchasers of the bonds. Individual banks within Affiliated Banks of Colorado have indicated an interest in purchasing the bonds. It is my opinion, based on these preliminary commitments, that the issue is marketable and can be placed with the financial institutions mentioned. 'ncerely, Darrell McAllister Vice President DM: kc cc;d Greeley National Bank One Greeley Natrona!Plaza Post Office Box 1098 Greeley.Colorado 80632 303 356-1234 Mtli OUT? I:OSSililii(IN� April 8, 1983 APR 3 1383 ! ‘ Weld County Commissioners + te r. COLO, Centennial Center 915 10th St. Greeley, CO 80631 Ladies and Gentlemen: The Greeley National Bank has had long and extensive business relationships with a majority of the participants in the office building renovation project to be located at the corner of 8th Avenue and 8th Street, Greeley, Colorado. Their current financial statements have been examined as has the projected financial forecast for the building project. On the strength of our past experience, the participants ' current financial positions, and the forecasted financials for the project, it is the bank 's intention to issue a letter of credit renewable from year to year through the first five years of the bonds, covering one year's payment toward the retirement of the bond issue. Such a letter of credit would be issued in favor of the bond holders for their use in the event of default, and would be in the amount of $300,000. It is the bank's opinion that the project represents a viable investment and that the participants are capable of amortizing the proposed bond issue. o rs tr 1 , Darrell McAllister Vice President DM:kc ' sr DEPARTMENT OF FINANCE AND ADMINISTRATION ( V PHONE(303)356-4000 EXT. 217 TT P.O. BOX 758 yI` 3 GREELEY, COLORADO 80632 . __ 4 L Lar © LP • COLORADO April 8, 1983 Rod Robertson EDAB Executive Director Chamber of Commerce P.O. Box "CC" Greeley, CO 80632 Dear Rod: Attached please find an Industrial Revenue Bond application for a project which includes an office building located on the corner of Eighth Avenue and Eight Street proposed by a group of Greeley investors primarily headed by ARIX and Jim Kadlecek. As in the past, the Board would like to have any appropriate comments and recommendations from EDAB concerning this specific IRB application. As I indicated on the enclosed Notice of Hearing, we would need the comments back prior to April 25, 1983. If you have any questions regarding this matter, please do not hesitate to contac me at 356-4000, extension 4218. Once again, we would appreciate your input Very ly yours, Donald . Warden, Director Finance and Administration DDW/ch cc: Board of County Commissioners Encl. n cu “T - D DEPARTMENT OF FINANCE AND ADMINISTRATION rlPHONE(303)356-4000 EXT. 217 P.O. BOX 758 \. r�^e t// 3 GREELEY. COLORADO 60632 r I 3 , • COLORADO April 8, 1983 Pete Morrell, City Manager City of Greeley 919 Seventh Street Greeley, CO 80631 Dear Pete: In accordance with the informal policy between Weld County and the City of Greeley, I am forwarding to you a copy of an Industrial Bond application concerning an office building to be located at the corner of Eighth Avenue and Eighth Street. As indicated in the enclosed notice, the Public hearing has been scheduled for the 25th of April, 1983. If possible, we would appreciate any comments the City of Greeley has concerning a recommendation on this project prior to the hearing date. If it is not possible to provide a formal comment from the City of Greeley by that date, please notify me so that we can delay the hearing. Also, there needs to be an indication that the project is in conformity with your zoning regulations and that it can be adequately served with water, sewer and fire protection. My assumption is that the area is already properly zoned and that the provision of services is not a problem, but for the record, we would like a letter from the City indicating there is no zoning or service problems. If you have any questions regarding this matter, please do not hesitate to contact me at 356-4000 extension 4218. We appreciate your cooperation in this tter. V \ truly yours, Dona D. Warden, Director Finance and Administration DDW/ch cc: Board of County Commissioners Encl. CS C0VATY r�rS S 1 ; ,- 3 1983 FJI CHER,BROWN, HUDDLESON AND GUNN ATTORNEYS AT LAW cola WARD H.Fl GREW" ELEVENTH FLOOR • FIRST TOWER WILLIAM H.BROWN MAILING ADDRESS CHAS R.HUDDLESON 215 WEST OAK STREET POST OFFICE DRAWER J WILLIAM C.GUNN FORT COLLINS,CO 80522 STEVEN S.RAY FORT COLLINS, COLORADO 80521 DAVID E.DWYER JAM ES E.RINGENBERG April 7 , 1983 TELEPHONE T.THOMAS METIER 303/482-1056 Board of County Commissioners Weld County 915 10th Street Greeley, CO 80603 Re: $3, 000 ,000 Industrial Development Revenue Bonds, Series 1983 , of Weld County, Colorado (The Gateway Partners Project) Gentlemen: The purpose of this letter is to provide the legal opinion required by §3 . 1 of the Weld County Development Revenue Bond Policy Ordinance No. 69-A. The proposed project involves the acquisition, development, renovation and reconstruction by Gateway Partners (the "Applicant") of an existing office building in Greeley, Colorado, together with incidental equipment and fixtures, which building will be used as commercial and business office space. The details concerning the project are described in the Applicant' s request for bond financing. It is our understanding that all bond proceeds will be utilized by the Applicant for capital expenditures and bond issuing expenses incurred after the date of the requested inducement resolution. Based on our review of the project proposed by the Applicant, we are of the opinion that the Applicant' s proposal falls within the intent and meaning of the County and Municipal Development Revenue Bond Act, C.R.S. 1973 , §29-3-101 , et seq. , as amended, and Section 103 of the Internal Revenue Code of 1954 , as amended. The constitutionality of the Colorado act has been affirmed in Allardice vs. Adams County, 173 Colorado 133 , 476 P. 2d 982 (1970) . Respectfully submitted, FISCHER, BROWN, HUDDLESON & GUNN B ] )-- David E. Dwyer DED:kf cc: Mr. Donald D. Warden, Director of Finance and Administration Mr. Sam R. Oldenberg THE GREELEY SHELTERSHIP THE GREELEY SHELTERSHIP (An Investment Partnership for Rental Real Estate) General Information A new joint venture partnership has been formed to acquire and own several apartment properties in Greeley , Colorado . Five properties have been acquired at the current estimate of market value , and financing is a combination of existing loan assump- tions , owner carry-backs , and new loans . The investment plan calls for the acquisition of other properties as satis- factory purchases can be negotiated . All units owned currently are located in reasonable proximity for ease of management (see attached map) . The principal investment goal is to accomplish a strong tax shelter , and secondly , to gain the benefit of probable appreciation in value in this growth community . By the third year , projections indicate cash flow will begin to developwith current properties owned . The investment logic of owning separate properties (rather than one large complex) gives the partnership the flexibility of disposing - exchanging one property at a time as that is appro- priate . It also meets the needs of a number of tenant markets (students , working singles , couples , elderly) , so that renta- bility is broadened without excessive dependency on one type of tenant . The proximity of the properties one to another , and the closeness to both the university and downtown offices makes rental and management more efficient . Property management is handled by the partnership, under the supervision of the partners management committee appointed via the provisions of the partnership agreement (copy in back of this book- let) . Offices for the Greeley Sheltership are located at 818 5th Street , Greeley , Phone : 352-4517 . 818 5th Street - P.O. Box 2400 - Greeley, Colorado 80632 - (303) 352-4517 TABLE OF CONTENTS Introduction - General Information 1 Table of Contents 2 Economic Information , maps 3 Description of Properties Owned (Photos) 9 Estimates of Value/Mortgage Financing 14 Income/Expense Projections 15 Tax Aspects 21 Return Analysis 22 Letter from CPA 23 Partnership Agreement/Partner List 24 Management Committee 43 Information/Articles on Apartment Investments 45 Evaluation Statement 49 Disclosure Letter 50 Pledge Letter 51 WELD COUNTY, COLORADO I 80 so Cheyenne 30 YON / NG I NEBRASKA t C O L O R A D O T B5 I • 1 25 WELD C OUNTY I 2B7y Fort • I Collins I / la Ault I Eaton, �J t aH'InOwt n._—• 12 •87 0 Greeley 34 Lo eland..."-<-\_)„. ,{. r• la Sall. 34 1 Jdn;toVn / I ^I 87 Fort Platteville Morgan Longmont I 85 76 6 I 36 Nunuhurg For 52 �Luaton Hudson Boulder 25 .-.--. -- • Brighton Breom 1410 J is 4D ,---436 [287 -- .. DENVER 0 70 o to zo as 25 1,._1� 8mi�-b. (3) I N v d — O k .. • - • • - . ..■ 4 •:::.: ��sl�.......11.. II "'L i `� � _ .. sEEFF l ` LEES:■ err �` Vim... -1 ,--' ■■■ .. CD 7.\.. , I "• General Vicinity of �— G � Sheltership Properties `. L � ; I111 I� __ :- . 1 !es EV'.A\S � Greeley Area ,---- �� 0 0.5 I.0Mile 'la ___„:7:______1/ I I a�/ S.V.LI•: i . (4) UE n 4 : :p i' £ j i A x m ' N HOMESTEAD T F m e 0 I Zln F TL• .Y s. ] c.Y_J. °36TH AVE CT. f t'•A 41.' 0 mRol<.A> f jJ. < �H x x xa a AVE. • .Y ^dq° 0 I• �• HV a a F 35TH I I II SAVE CT. -^T 0 ]5TH a _ A A 1 AV 1_ 35TH VE. 15TH ryi LIT W AVE. PI. JATH AVE. • 7.i £ a . 'y . 1 F £ OOHAv x d � • a •H MZ - a J• AVE � „ El ' a .t •IP - • 0 • m 3 3 I J R• A D Z ' I 4 d • I ' <. A. a ] L I�i I sr.RD. F o° y E 4 z —'tim• ; 1 �tl > ON1HN • W N Fwx ST a AVE. ] NOW .I V. ,n I P_ rl ^ < J dJ F 13 SOIN 4 mNA ,-1 1 ] STAVE. ]IS >'IEEr ]1 T AVE. N N ,Its m ; V, m ^5 • 'Ai yep 4 ) oJOTH4VF WILSHIRE 30TH• E.� F FV 3N Z ZSTH AVE • 'II- n7. E.CT. f 30 H 2 fn° IAVE.y 4d n T < (`1 A f m~®, �I'TH AV YVN H H• _ L y = RI I Sar4 AVE. 26TH •o . I• S 325TH f •fl y - m i 1'f( I 2E H AVE. > ri 9fJe Y°e W I r.vF. C I V 0 4. 0 7.L 7-i0 I i y F i s rein 0 1 ITHAVE.CT. ^ M140.1 A X yes_. • AVEn T I _ 'LD 4I• 219TH; 1 1 - -,V* - 1- • �Se lyj{ 20TH y . AVE. �E . vH�° S° lTH 27TH AVE S .( ,- d JA- F Ii•.L ➢ 4 1 1 27TH AVE. a y 44 fi . eTH AVE" x 'A°AVE. J f -0 Y� _ N .+ q T .I L' d ° •`a `I LAv �L.a)THN _� CT. 35TH AV w 4, O. O.ONb 20TH N 3AV,'•1.. _,•,.T f•Y5fY AT Z ' vE. 0 4 26TH AVE. 2T69�HH n mN�CT. 7 •4:> Af` T• P -(y •-1 d. C>f N y • F 15TMAVE N. 25TH AVE. CT 4 k' ATy h' < 1 xvT ° 1 k:3.'\"-,• 'I S w 4 25TH. n $} (�} '�J iv, • I' BA • 24,,:, . a F F n_0 N.35TH AVE. 1 •y�fjx >u 'I u Toa1m '�21 TH0'• f0 S' 25TH' T'AVE, CT 7.S `VF CT.AVm J F W N 4 n YY an j£' v _J u ; ' ATH Av <Vj m Y2 H _Nil' - Z x 0 3]'D AVE. T y 'A < 3 E'CT� 33RD AVE.CT.' 4 3RD AVE. CT V A � 4A • 3 2 y • R• AVE.CT. N y O N N N $NRDAVECT _` .0 4 •AVE. w w O _ 7{ 7 23RD x x , 4 -1 Z AVE 4 , y I • T 4 AVE. __ N• • AVE.OT m w NO AV Y V' T u 23N• • Z • $ I AVE — — _ 0 Vi J DAV z- AV . Al AVE, 1 '' y' in TL Htv N 0 • IT A`VE CT. > 3JR,H-6 4 a 4_ 4 "� (O 'O n4 D< 1ST T.RO / .4'4 1 (SAO I,i 4 y • AVC. x Z 3 3. i15TnVE.CT. Ix) 215TAV y 1,ST • d. AV �y .. AVE 0 0' 047.1 20TH > .O. 4 • A 1 f H AVE. CT♦ 0 _ ,J, • A 10TyeA E 0 4 •�J •1•TH AVE. _ 111 N .IC 21E 0 I n ' Z '((T''�� 1S. ..„ A' IB?H nV TH A PINECRES SZIGTH AVE. $O £ SOTH_ Od IO IYT D > n 'l 4 :`_}f 4 NYD, AVE■y 30TH AVE. CT. i.TH C ALLE,. 1•71 „ ` 10TH f < AVE. ....IdEp_ A N 19TH. AVE. S r _ J, ° • 0`1)TN AV CT.W Od 15 > CA�n I.I F AVE. 4 y IBTH AVE. IYT 0 1`TH • ' 9 04fE •T TVIEW RO IBTH AVE. CT. 17TH 4 N 6t -' < y AVE. $ r,- '• • no IBT AVE 15TH E 0TH AVE. CT. (• QTH All,. PROSPECT PL N 15THM VE uCCT n 2 C ° O �^rn) - 15TH® •� IBTH I ' OO I G 915T �Fl lirr4 . N '©V v 15TH C 9 -o a o z DWI I N 3 4 p�-E MC IATH ®� _ ➢ moN C y RI IAT ■AVE. I • ctl P\` p t ^ O N C N IJTH VE < Ow 3 IO 13TH • AVE ■ I A ,M VE. CT. E x �` �n 0 0 ■ ^ ..■ _ Z W ■ >1 �r -f1:-. 13TH i I E K1 tjVVI� O •• I (Rl> AVE 0 > , ^ ^. Z_ N O■■, ITH I — ♦..1 AVL < ■0 ■� 11TH TM■�.V 4 A I4 ■ 0 AVE, y u T •> AVE 0 .r 1 10TH 4 N .. q YTH AVE. CT, Z w x V •♦ - I I If -� N l AVC. 4 �N Al 9TH a nx x 1 AVE. .Lr i ` Y Ave. 4 A l• ••i• •. • 4 y l ee•i 1 Si 4 • w0T11 r2 AV • •1 40 H AVE. 4 >,-, ■■■I® ■• C 1 �■�_ I 4 4 H • f -NI a J n 2 4 i . v'- 4 ee,T��Hy'p • ' x Ave N 5TH I AVE ).;+�•, n I.-N < a ■ y ■®®.�•,%, Nb ' _d 5TH 0 E. _ AVE ��.{.�.l� )'�w (�y�( .TH S^ Y�I' 9 TH �VE. I� 1- A 3,.n a E 1l 1 0 I-Nl 4m ((L ^2 r0 9RD a .r• I AVE. •1 WAY 65 BY.PA55 TD . • z zNDAVE 1 4. - .. _ _ 1 ( 1 LET AVE. _. ni x ALPINE AVE. ASH . VE!I / tr ll, Q, v BALSAM AVE. 1�..� Q a • v ft 0 LyJ rt 1,3 • 0 r- Z • E, I m r' Z H I-' ism BAT AV E. tit 0 • f.. N a @I RCM AVE ^ al II N > BIRCH AVE. I2, l II BLUEBELL ♦vE .;•ECEDA AVE CHERRY VE. '45,i1;I•..I� �•I(yl (5 ) , GREELEY/WELD COUNTY E CO ti O - POPULATION WELD COUNTY BUSINESSES CI) Historical Growth Historical Growth The population of Weld County has grown steadily over By September 1979, there were 3,089' business estab- W recent years, increasing from approximately 90,000 in 1970 lishments located in Weld County. The number of contract rip to about 123.500 at the present time. Since 1970.the Greeley construction firms amounted to 99 businesses. Yw population has grown from approximately 39.000 to an esti- Approximately 114 manufacturing businesses were lo- U) mated 53,000. Greeley and Weld County are located in the cated in Weld County by 1979. yl�'1 northern Front Range region of Colorado, one of the fastest The number of retail trade outlets increased by 30 percent growing areas of the entire state. During the 1960-1970 de- during the 1970-1977 period amounting to 621 retail outlets; r cade. Weld County grew at an annual rate slightly over two Greeley had 563 retail outlets in 1977. The number of real Z percent and during the 1970-1980 decade, the county grew estate firms in Weld County amounted to 68 as compared to ii approximately at an annual rate of four percent. Greeley had 37 in 1970. During that same time period, the number of about the same average growth rate of four percent during service-oriented businesses increased by approximately 40 O the 1970-1980 decade. percent, totaling 532 businesses by 1977. 17 o—wt for—lo TABLE 4 POPULATION BY AGE TABLE 3 IN WELD COUNTY. 1980 HISTORICAL POPULATION OF PLACES Age Group Number IN WELD COUNTY 1960-1980 Under 16 33.994 O 16-17 6.462 18-19 6.462 Z Area 1960 1970 1980 20-24 17.425 25-34 15.852 Ault 799 841 1,056 35-44 13,079 Dacono 302 360 2.321 45-64 22.270 Eaton 1.267 1,389 1,932 65-over 11,556 Erie 875 1,083 1,231 Total • 127,100 Evans 1.453 2.570 5,063 Firestone 276 570 1,204 Source: Larimer-Weld County Council of Governments. Fort Lupton 2.194 2,489 4,251 Frederick 595 696 946 Oi iai JOE JO Garden City 129 142 85 Gilcrest 357 382 1,025 TABLE 5 Greeley 26.314 38.902 53.006 PERSONAL INCOME Grover 133 121 158 IN WELD COUNTY. 1971-1979 Hudson 430 518 698 Johnstown 976 1.191 1,535 Year Income Personal Income Keenesburg 409 427 541 Keota 13 6 4 1971 327 463.000 3.527 Kersey 378 474 913 1972 380,534,000 3.891 La Salle 1.070 1.227 1,929 1973 481,301,000 4,666 Lochbuie NA 650 895 1974 539.833.000 5.054 Mead 192 195 356 1975 597,099.000 5.543 Milliken 630 702 1,506 1976 638.000.000 5.853 New Raymer NA 68 80 1977 659.268.000 6.026 Nunn 228 269 295 1978 801.474.000 7.155 Pierce 424 452 878 1979 892.234.000 7.662 Platteville 582 683 1,662 Rosedale 70 66 38 Source: U.S. Department of Commerce. Bureau of Severance 70 59 102 Economic Analysis, Local Area Personal Income, Windsor 1,509 1.564 4,277 1970-75 and 1974-1976.June 1981 Unincorporated Areas 30.669 31.201 35.542 Total 72.344 89.297 123.438 Businesses that are coded for sales tax license.Colorado Revenue Source U S. Dept. of Commerce. Bureau of Census. 1980 Census Department. Research and Statistics Division. of Population and Housing. Final Census Count. 1981 (6) GROWTH OF SELECTED ECONOMIC INDICATORS IN GREELEY AND WELD COUNTY. 1975-1981 City of Greeley Weld County ina,cn:ors 1975 1978 1979 1980 1981 1975 1978 1979 1980 1981 Units Autnonzed by Building Permits 393 772 667 210 160 193 291 188 NA NA Permit Valuations (millions) 514.0 520.7 $19.6 512.1 56.3 NA NA $11.5 NA NA Assessed Valuations (millions) $86.7 5141.0 $166.3 NA NA 5321.7 $662.9 $667.2 $731.8 NA Retail Sales (millions) $341.0 $379.9 $450.4 NA NA $537.0 $630.9 $760.2 NA NA Motor Vehicle Registrations NA NA NA NA NA 103.8 144.6 133.4 125.9 129.1 Telephone Stations (thousands) 23.1 26.2 27.5 29.4 29.9 NA NA NA NA NA Electric Meters (thousands) 17.8 20.0 20.6 21.6 21.5 NA NA 33.3 NA NA Gas Meters (thousands) 15.6 17.7 18,3 18,6 19.4 NA NA NA NA NA School Enrollment (fall data-thousands) 10.4 10.2 10.4 10.0 10.0 NA NA NA NA NA Commercial Bank Deposits (millions) $238.6 $321.2 $346.5 $402.4 $417.5 $318.3 $416.3 $479.7 $517.4 $553.8 Savings& Loan Deposits (millions) $60.4 $95.3 $111.0 NA NA $62.8 $103.5 $121.4 NA NA 01 ic1—i01—JOi 101-1o1-io LATEST STATISTICAL MEASURES FOR STATES Average Annual Average Annual 1979 Pop'n. Growth Rate 1978 House- %Change Birth Rate 1977/per State Estimate 1970 to 1979 hold Estimate 1970-79 ner 1000 capita income U.S. 220,099,000 +0.9% 76,473,000 +2.3% 15.4 $5,478 Arizona 2.450,000 +4.2% 813,000 +5.0% 18.2 5,545 Colorado 2,772,000 +2.8% 955,000 +3.9°b 16.4 6,118 Kansas 2,369,000 +0.6% 851.000 -1.9% 15.9 5,861 Montana 786.000 +1.5% 278.000 +3.0% 17.5 5.288 Nebraska 1,574.000 +0.7% 556,000 +1.9% 16.1 5.326 North Dakota 657.000 +0.7% 217,000 +2.2% 17.5 4.856 Oklahoma 2.892.000 +1.4% 1.051,000 +2.6% 16.2 5.245 South Dakota 689,000 +0.4% 235.000 +1.9% 17.5 4,529 Utah 1,367.000 +3.2% 396,000 +3.4% 29.9 5.135 Wyoming 450.000 +3.9% 147,000 +4.1% 18.9 6.454 Source. U.S. Department of Commerce. Bureau of Census, "Mountain/Plains Census Data Highlights, July/August 1980. (7) TABLE 14 ASSESSED VALUATION OF PLACES IN WELD COUNTY. 1976-1981 (THOUSANDS) Area 1976 1977 1978 1979 1980 1981 Ault S 1.358.8 $ 1.527.8 $ 1.921.6 $ 2,3517 $ 2.618.1 S 2.673.7 Dacono 1.801.5 2,229.4 2.631.4 4,007.4 4,385.6 4.823.3 .Eaton 3.184.8 3,820.9 4,887.7 6,085.6 6425.1 6.469.8 Erie 734.4 790.6 1,104.1 1,956.3 2,979.8 3.392.6 Evans 5.260.9 6,034.1 9,149.5 12.644.1 14,331.9 14.751.1 Firestone 677.2 889.0 3,634.7 4,390.1 5,826.9 6.547.3 Fort Lupton 4.344.8 5,192.0 6,297.8 9.504.6 10.869.3 11,346.4 Frederick 635.8 695.4 3.288.5 7,068.5 6.232.3 6.157.0 Garden City NA NA 870.1 957.2 989.3 1.044.1 Gilcrest 634.7 869.0 1.167.1 1.911.6 2.161.1 2.319.5 G r ee:c` 93.150.6 133.050 6 141.071 2 166.325 1 176.999 7 181.587.9 Cn ca n' 129 9 140.8 157.1 198.4 284.1 263.2 Huosar 721.6 752.2 995.1 1,239.4 1,423.6 1.518.8 Johnstown 1.919.8 2.064.9 2,758.0 3.400.2 3.639.4 3.729.8 Keenesburc 620.2 680.2 1.002.7 1.231.9 1.388.0 1.429.9 Keota 3.1 4.9 3.5 3,5 4.5 4.5 Kersey 891.7 1.015.3 1.344.9 1,676.3 1.942.1 1.990.9 La Sane 2.950.8 3,418.2 4,448.0 5.116.7 5,425.7 5,528.1 Lochbuie 377.1 387.4 490.9 909.5 923.5 999.0 Mead 197.3 317.0 427.5 739.8 952.5 1,052.4 Milliken 809.8 1,166.6 1,565.4 1,986.2 2,294.5 2,454.4 Nunn 334.9 349.1 450.5 546.5 624.9 648.9 Pierce 1.090.9 1,187.9 1.578.7 1,706.5 1.825.4 1,855.6 Platteville 1,361.2 1,523.6 2,050.2 2,993.5 3,440.8 3.579.5 New Raymer 99.0 117.4 138.2 139.2 161.3 155.6 Rosedale 206.6 212.1 264.5 320.0 353.2 382.4 Severance 118.4 117.4 156.8 190.1 208.4 220.0 Windsor 4,463.5 5479.2 7,792.4 10,575.0 11,849.0 12.523.6 GRAND TOTAL Assessed Valuation $379,277.4 481,370.9 580.379.7 667.285.4 731,849.9 771,771.8 Source. Colorado Department of Local Affairs, Division of Property Taxation,Annual Report, selected years. Weld County Assessor.Abstract of Assessment, 1980. 1981 or for-ior 101-lot-roi-t TABLE 15 RETAIL SALES IN WELD COUNTY' 1974 -June 1981 (THOUSANDS) Area 1974 1975 1977 1978 1979 1980 Jul 80-June 81 Ault $12,540.8 $13.000.8 $8,268.1 $12.333.9 $7,919.7 $1,630.1 57.169.9 Dacono 641.7 298.3 364.7 1,025.9 2,019.5 424.2 1.971.4 Eaton 20,004.6 15.345.5 17,396.1 25,114.1 29,536.6 8,650.8 24,081.4 Erie 2,057.0 2,106.7 2,852.8 1,6274 2,313.4 461.1 1.906.7 Evans 12,376.0 18.143.3 22,681.8 18,241.6 23,320.0 4.137.8 20,309.6 Firestone 571.3 591.4 918.9 1,007.6 880.9 207.4 1.046.4 Frederick 980.8 1,419.7 2,279.8 2,934.9 7.353.0 1,429.5 6,944.4 Fort Lupton 17.801.1 19,669.1 27,049.2 30,985.6 36,114.7 9.720.1 50,544.6 Garden City 4.726.7 4,558.5 4.371.3 4,725.7 6.247.5 1,909.3 7,785.5 Gilcrest 953.4 873.6 1,338.1 1,879.6 2,422.1 631.3 2.902.5 Greeley 266,922.9 341,047.4 335,277.8 379,967.5 450.483.0 "205,002.5 474,555.7 Grover 279.2 324.4 572.3 646.1 723.1 155.3 579.2 Hudson 3,012.6 3,719.7 3,096.5 3,796.0 3,665.0 744.4 4,184.6 Johnstown 7,030.3 7,037.8 7,392.4 9.659.5 11.369.1 2,505.6 12,132.4 Keenesburg 4,895.2 5,239.7 4,590.7 4,162.5 6,176.0 1,237.6 7,700.1 Kersey 1,989.4 1,870.5 2,577.2 2,547.2 3,273.2 638.5 2,692.1 La Salle 12,517.5 11.473.6 13,579.2 13,454.6 12,892.1 2,117.6 11,371.4 Lochbuie -- 10.0 30.5 162.1 -- Mead 576.9 1,125.0 1,398.8 1,472.4 2.198.5 327.0 1,912.7 Milliken 1,339.8 1,558.6 2.215.4 2,341.2 2,621.9 413.5 1.798.4 Nunn 173.5 179.2 230.0 364.7 397.9 158.3 486.5 Pierce 970.2 1.267.2 1,887.6 1.702.8 2.355.9 667.9 4.316.3 Platteville 2,165.8 2,626.0 4,738.8 3.186.3 5,771.8 1.090.5 5.909.9 New Raymer 1.672.6 2.220.6 587.8 297.1 Severence 1.708.4 1.431.1 1.724.0 1,940.0 1,335.6 284.0 2.305.3 Rosedale 3.428.2 3.662.7 3,197.2 3.548.4 Windsor 7,124.7 8.905.2 12.166.4 12.990.6 12,577.8 3.504.6 14,297.6 Unincorporated 56.582.4 67.254.7 76.489.3 88.827.5 126,200.3 29.628.1 145.649.6 'oral Counts 5445.043.4 5536.960.2 5559,272.7 $630.942.6 S760.219.6 S176.087.8 51.248.148.6 ' ' Retail Sales is the gross sales minus the wholesale. Source Colorado Department of Revenue. "Sales Tax Statistics for Counties and Selected Cities... selected editions. " First S second quarter figures combined: gross sales. (8) Property Locations & Descriptions (see map) A. The Deville Apartments - 1620 9th Avenue This seventeen (17) unit building is approximately 15 years old, and is located across the street from the central campus of HNC . There are 12 two bedroom units and 5 one bedroom units . It is primarily a student rental with a strong occupancy record during the school term and about 2/3 occupancy in summers (however , in 1982 summer rental was 100% occupancy) . B . The Carolin Apartments - 1518 ,20 ,22 ,24 11th Street This twenty-six (26) unit complex consists of 10 one bedroom units , 6 two bedroom units , and 10 three bed- room units. The four buildings are 8 years old , and in exceptionally good condition. Tenants are a mixture of working singles , married couples , some elderly, and some students . Occupancy level is historically strong all year long . C . M.A. R. Apartments - 1300 12th Street Thirty (30) unit complex just completed and occupied in June , 1982 . Twenty-four one bedroom units , and 6 two bedroom units , all under one roof . The units are high-quality and tenants are working singles , couples , and elderly persons . An adjacent rental house is also part of the property . The building was fully rented within 6 weeks from building completion . D . Camfield Court Building - 7th St. and 8th Ave . This building consists of 19 apartment units plus 16 ,275 square feet of commercial rental space located in the downtown area . This 2-story, older building is strategically located as the downtown begins its redev- elopment. The apartments (named Skylight Suites because each unit contains skylights) are occupied by working singles and couples, with some students . Commercial space tenancies are in some transition , but are anchored by a well established men ' s clothing store. E . Loft Townhouses/Loft House - 1512-20 12th Avenue Seven extra-large townhouses with 1 ,600 square feet each . Features include fireplaces , air-conditioning , laundry hook-ups , basements, private patios , and special loft-sundecks . These contemporary style , 2-year old (9) units are fully leased . There is also a large , recently remodeled older house adjacent to the townhouses with a main floor apartment and base- ment apartment . The house tenants are all students and the townhouses are working singles/professionals and students . F. Negotiations will be conducted to acquire other prop- erties . Criteria for acquisition are that the property be in the same general area of Greeley , and that it be priced comparably to the current holdings . It should be noted that the Sheltership ' s success is not depen- dent upon other properties if negotiations cannot be satisfactorily completed , but additional property would further improve both Sheltership potential , disposition flexibility , and manageability . Another site for 25 units is being acquired in September , 1982 , with plans for construction in 1983 . (10) I - t ---�- - - _ _ n kii • itifitr 'I:,� -— -- THE DEVIL LE APTS. 1620 9th Ave. (17 Units) i`� 1 \ I � '7rLi �.?�- 18 ] s 17 1. l.1 6 %7+ _ - .ii WIN'IIIiillull ii ...,I �I� I�111111 �. t e i ' F ir- glll'f lu' ._ I a ill ` �/, ';' 'ip 10111 J I Tarr THE CAROLIN APTS. 1518/20/22/24 11th St. (26 Units) (11) arida* • gyp • lk 77,71,17 • M.A.R. APARTMENTS 1300 12th St. (30 Units) • �Illlllnlur°,",nn nl ill 1 ��•�� 1!� '��. . • • ��• � s ritn"s WtAA ! pi, + t. -II v rI ...,._. r CANF'IELD CT. BUILDING (SKYLIGHT SUITES) 8th Ave . & 7th St . (19 Units & Commercial Space) (12) „ham`$ .• 'II .ir • r t�b►guai` n � . -.. 9 Im , L ` ”. nn ._-, - • F ---aff iltl . LOFT APARTMENTS 1512 12th Ave. (7 Units) e ySy i ,g t. 7 �n La ' 1 4 j, .4117.*: w t 11L' 4q- ^e"Nh'..: .} f-y: 1 v7 'E `.. P Y. _ 'Mrµ[ -'. • t y 44 .. ',• i;>. v .1� '7R., ,�.'.:, r lik In La PPP r _ ._ ! _,4- 4 • ice, ,.. ..y. '�� - k min+�.� LOFT HOUSE 1520 12th Ave . (2 Units) __ (13) Values , Financing , and Current Equities Loan Balances Values 7-15-82 Equity A. Deville (17 Units) $ 321 ,000 $ 228, 845 $ 92 ,155 B. Carolin (26 Units) 514 ,500 348 ,577 165 , 923 C. M.A.R. (30 Units) 725 ,000 500 , 000 225 , 000 D. Camfield (19 Units & 435 , 000 244 , 068 190, 932 Comm' l Space) E. Loft (7 Townhouses & 435 , 000 219 , 000 216 ,000 House) TOTALS $2 ,430 , 500 $1,540 ,490 $890 ,010 Terms of Payment on Financing A. Deville : 9h% rate, payable $2 ,009 . 50 per month principal and inT terest . Balloon payment of $215 ,581 .49 due January 1, 1987 . B. Carolin: 10 3/4% rate, payable $3 , 367 .32 per month principal and interest. Balloon payment of $331,681.20 due January 1, 1987 . C. M.A.R. : 3/4% over Greeley prime , interest only payable monthly . Balloon payment of $500 , 000 due November 2 , 1984 . D. Camfield : 91% rate, payable $2 ,102 .20 per month principal and interest. Balloon payment of $225 , 190 .00 due February 4 , 1989 . E. Loft: 13% rate on $189 , 000 , payable $2 ,101. 78 until paid , with a balloon payment of $181,500 due September 1, 1990 . 15% rate on $30 , 000 with interest due December 1, annually, and balloon of $30 , 000 due December 1, 1983 . Note: Refinancing alternatives are regularly examined by the Management Committee when necessary or when more favorable rates or terms can be obtained . (14) INCOME/EXPENSE PROJECTIONS BY PROPERTY A. Deville Apartments (year ) 1982 1983 1984 Income Rents $45 ,600 $50 , 160 $55 ,170 Laundry & Other Income 840 950 1,100 Less Vacancy Allowance - 2 ,280 - 2 ,500 - 2 , 750 Gross Income $44 ,160 $48,610 $53 ,520 Expenses Repairs & Maintenance $ 3 , 600 $ 3 , 80O $ 4 , 000 Utilities 6 ,900 7 ,950 9 , 150 Property Taxes 4 ,900 5 ,200 5 ,500 Resident Manager 1,100 1 ,200 1, 300 Insurance 650 750 850 All Other Expenses 1,100 1, 300 1,500 Total Expenses $18 ,250 $20 ,200 $22 , 300 Net Income Before Capital Replacement or Debt Retire- $25 ,910 $28,410 $31 , 220 ment Capital Replacement 10 , 000 2 ,500 3 , 000 Debt Retirement (P & I ) 24 , 114 24 ,114 24 , 114 CASH FLOW + or (-) ($ 8 ,204 ) +$ 1, 796 +$ 4 ,106 Notes : 1982 projections based on first 6 month actuals plus estimate for last 6 months. Capital replacement includes a new roof in 1982 , replacement of some carpeting and appliances in 1983 and 1984 . (15) B . Carolin Apartments 1982 1983 1984 Income Rents $70 ,230 $77 ,260 $84 , 990 Laundry & Other Income 1 ,560 1 , 750 1 , 980 Less Vacancy Allowance - 3 ,500 - 3 ,860 - 4 ,250 Gross Income $68 ,290 $75 ,150 $82 ,720 Expenses Repairs & Maintenance $ 4 ,700 $ 5 , 100 $ 5 , 500 Utilities 9 ,620 11 ,060 12 , 720 Property Taxes 7,100 7 , 500 8, 000 Resident Manager 1,600 1, 800 2 ,000 Insurance 1,050 1,200 1 , 350 All Other Expenses 2 ,700 2 ,900 3,100 Total Expenses $26 ,770 $29 ,560 $32 ,670 Net Income Before Capital Replacement or Debt Retire- $41,520 $45 ,590 $50 ,050 ment Capital Replacement 1 ,800 2 , 500 3,500 Debt Retirement (P & I ) 40 ,408 40 ,408 40 ,408 CASH FLOW + or (-) ($ 688) +$ 2 ,682 +$ 6 ,142 Notes: 1982 projections are based on first 6 months actuals Ts estimate for last 6 months . (16) C. M.A.R. Apartments 1982 1983 1984 Income Rents $53 , 800 $100 ,170 $107 , 680 Laundry & Other Income 860 1 ,900 2 ,200 Less Vacancy Allowance -0- - 5 , 000 - 5 , 380 Gross Income $54 ,660 $ 97 , 070 $104 ,500 Expenses Repairs & Maintenance $ 2 ,100 $ 4 ,500 $ 4 , 800 Utilities (common areas) 1 ,400 2 , 300 2 ,800 Property Taxes 800 9, 000 9 ,600 Resident Manager 1 ,260 2 ,160 2 ,400 Insurance 620 1,250 1 ,400 All Other Expenses - 1,200 2 ,500 2 , 800 Total Expenses $ 7 ,380 $ 21 , 710 $ 23 ,800 Net Income Before Capital Replacement or Debt Retire- $47 ,280 $ 75 ,360 $ 80 , 700 ment Capital Replacement -0- -0- 2 ,500 Debt Retirement (Int . ) 49 ,580 75 , 000 75 , 000 CASH FLOW + or (-) ( 2 ,300) + 360 + 3 ,200 Notes: First units were occupied May 15 , but building was not fully complete until July 1 . . . .all units rented as of July 15 . Interest only loan is at floating rate and is calculated at an average rate of 17% for 1982 , and 15% for 1983 and 1984 . (17) D. Camfield Ct . Building (Skylight Suites) 1982 1983 1984 Income Rents $52 ,180 $82 , 880 $87 ,020 Laundry & Other Income 850 1,000 1,400 Less Vacancy Allowance - 1 , 560 - 2 ,490 - 2 ,610 Gross Income $51,470 $81, 390 $85 ,810 Expenses Repairs & Maintenance $ 5 ,580 $ 7 ,200 $ 7 , 800 Utilities 11,000 17 , 500 18 , 800 Property Taxes 4 ,500 6,600 7 ,200 Resident Manager 760 1 ,200 1,400 Insurance 900 1,100 1 , 250 All Other Expenses 2 ,000 2 , 800 3 , 300 Total Expenses $24,740 $36 ,400 $39 ,750 Net Income Before Capital Replacement or Debt Retire- $26 , 730 $44 , 900 $46 ,060 ment Capital Replacement 4 , 800 7 , 500 7,500 Debt Retirement (P & I ) 16 , 818 25 ,226 25 ,226 CASH FLOW + or (- ) + 5 , 112 +12 ,264 +13, 334 Notes : Ownership of property effective May 1, 1982 (18) E. Loft Townhouses (with Loft House) 1982 1983 1984 Income Rents $22 , 800 $45 ,600 $48 ,790 Laundry & Other Income -0- -0- -0- Less Vacancy Allowance -0- - 2 ,280 - 2 ,440 Gross Income $22 , 800 $43 , 320 $46 , 350 Expenses Repairs & Maintenance $ 450 $ 900 $ 1,100 Utilities (common areas) 500 1 ,200 1,400 Property Taxes 2 ,700 4 , 800 5 ,200 Resident Manager -0- -0- -0- Insurance 450 900 1, 000 All Other Expenses 2 , 100 4 ,400 4 , 800 Total Expenses $ 6 ,200 $12 ,200 $13 ,500 Net Income Before Capital Replacement or Debt Retire- $16 ,600 $31, 120 $32 ,850 ment Capital Replacement 500 1 , 500 1, 500 Debt Retirement (P & I) 17 ,106 25 ,212 25 ,212 CASH FLOW + or (-) ( 1 ,006) + 4 ,408 + 6 ,138 Notes: Loft property acquired July 1, 1982 . Units generally leased on 6 month or one year leases . 1983 estimate of interest assumes that $30 ,000 Ricker note has been paid by end of 1982 with partnership capital. (19) SUMMARY OF INCOME/EXPENSE PROJECTIONS • 1982 1983 1984 A. Deville ($ 8 ,204) $ 1, 796 $ 4 ,106 B. Carolin ( 688) 2 ,682 6 ,142 C . M.A.R. ( 2 , 300) 360 3,200 D. Camfield 5 ,112 12 ,264 13 , 334 E . Loft ( 1 ,006) 4 ,408 6 , 138 Management , Accounting , and Office Costs ( 20 ,050) ( 23 , 000 ) ( 28 ,000) TOTAL ($27 , 136) ($ 1,490) $ 4 ,920 (20) TAX ASPECTS Depreciation Estimates 1982 1983 1984 Total for all Properties $134 , 866 $176 , 083 $162 ,045 Estimated Allowable Tax Loss 1982 1983 1984 Total for Operation ($192 ,418) ($229 ,978) ($220 ,147) 1982 Tax Brackets Under New Tax Law: Taxpayer 1. $35 ,200 - $45 , 800 = 39% tax liability Taxpayer 2 . $45 , 800 - $60 , 000 = 44% tax liability Taxpayer 3 . $60 , 000 - $85 ,600 = 49% tax liability Return Analysis for Each Unit of Ownership An owner of one unit ($11 , 000 investment) of the Greeley Sheltership would accomplish the following results using 15 year term, 175% declining balance depreciation method on new property , and the method described in the CPA letter on older properties , and assuming the income/expense projec- tions utilized in this document. These calculations are based on the current 83 . 5 units of equity ownership, and assumes that any new capital inserted into the partnership will be utilized to generate additional depreciable base , so that the numbers shown should be approx- imately valid for new ownership as well as the current owner- ship . 1982 1983 1984 Taxpayer 1 - Tax Savings* $ 913 $ 975 $ 876 Princ . Reduc . 444 105 117 Cash Flow (325) ( 18) 59 Total Cash Return $1,032 $1 ,062 $1 ,052 (21) 1982 1983 1984 Taxpayer 2 - Tax Savings* $1 , 030 $1, 100 $ 988 Princ . Reduc . 444 105 117 Cash Flow (325) ( 18) 59 Total Cash Return $1, 149 $1,187 $1, 164 Taxpayer 3 - Tax Savings* $1,147 $1,225 $1,100 Princ . Reduc . 444 105 117 Cash Flow (325) ( 18) 59 Total Cash Return $1,266 $1, 312 $1 ,276 *considers only Federal and not State tax savings . RETURN ON INVESTMENT ANALYSIS (per $11,000 Unit of Ownership) 1982 1983 1984 Taxpayer 1 (39% Bracket) "Cash Return" $1 ,032 $1, 062 $1, 052 *Growth (appreciation in 1, 033 1 ,482 1,556 value) Total Return $2,065 $2 ,544 $2 ,608 18 . 8% 23 .1% 23 . 7% Taxpayer 2 (44% Bracket) "Cash Return" $1, 149 $1 ,187 $1 ,164 *Growth (appreciation in 1, 033 1 ,482 1,556 value) Total Return $2 ,182 $2 ,669 $2 , 720 19. 8% 24 .3% 24 . 7% Taxpayer 3 (49% Bracket) "Cash Return" $1,266 $1,312 $1 ,276 *Growth (appreciation in 1,033 1,482 1 ,556 value) Total Return $2 ,299 $2 , 794 $2 ,836 20 . 9% 25 .4% 25 . 8% *a conservative appreciation in value of 5% per year of the partnership property (22) KOSMICKI C) COMPANY Certified Public Accountants August 3, 1982 The Greeley Sheltership Management Committee Post Office Box 2400 Greeley, Colorado 80632 Gentlepersons : We have calculated the depreciation, principal and interest payments, projected tax loss, and return on investment for the years 1982, 1983, and 1984, for the properties of The Greeley Sheltership based on data you provided us. We have not audited or reviewed your data or calculations and, accordingly, express no opinion or any other form of assurance on them. Depreciation on the M.A.R. Apartments was calculated using the ACRS 175% declining balance method. This method is not available for the DeVille, Loft, Carolin, and Camfield Court buildings because there is more than a 10% common ownership in the entities that owned these buildings before and after their sale. Consequently, the depreciation available for these properties falls under pre-1982 rules. We have used component depreciation utilizing straight-line and 125% declining balance methods with lives of the components ranging from 3 to 20 years. We are not independent with respect to the Greeley Sheltership. (23) 505 Greeley National Plaza•Greeley, Colorado 80631 (303) 356-3300 THE GREELEY SHELTERSHIP PARTNERSHIP AGREEMENT This agreement, executed this 15th day of December, 1981, by and amoung the following persons: NAME ADDRESS 1. Linda V. Clark 6100 East Calle-Ojos Tucson, Arizona 85715 2. William R. Clark 6100 East Calle-Ojos Tucson, Arizona 85715 3. Lester 6 Judith Ewegen 1625 Glenmere Blvd. Greeley, Colorado 80631 4. John K. Jerome 700 11th Street Greeley, Colorado 80631 5. Kadlecek Investment Co. 818 5th Street Greeley, Colorado 80631 6. Theodore M. Nelson 1854 14th Avenue Greeley, Colorado 80631 7. Gene S. Pepin 1806 17th Avenue Greeley, Colorado 80631 8. Robert W. Stanley 300 8th Avenue Greeley, Colorado 80631 9. The 815 Partnership c/o Kosmicki, Premer, Kurtz, CPA's 505 Greeley National Plaza Greeley, Colorado 80631 10. Chris Scott 281 S. Nome Denver, Colorado 80012 11. Larry Scott c/o University National Bank 2000 S. College Ft. Collins, CO 80515 (24) RECITALS WHEREAS, the above named persons have agreed to enter into an association for the general purpose of investment in, and the purchase and sale of real property, and desire to share the profits and losses of such a venture. NOW THEREFORE, intending to be bound hereby, the parties stipulate and agree as follows: ARTICLE 1 Definitions and Name I. "Owners" shall mean whoever at any given time are the parties who have an interest in this Joint Venture. 2. "Unit" shall mean a unit of ownership interest in the Joint Venture. Initially, each unit shall require a capital contribution of $10,000.00. Initial owners and initial units are as follows: NAME NUMBER OF UNITS 1. Linda V. Clark 2 2. William R. Clark 2 3. Lester & Judith Ewegen 6 4. John K. Jerome 8 5. Kadlecek Investment Company 11 6. Theodore M. Nelson 2 7. Gene S. Pepin 4 8. Robert W. Stanley 2 9. The 815 Partnership 1 10. Chris Scott 1/2 11. Larry Scott 2 1 (25) C. Lester A. and Judith W. Ewegen. $58,000.00 by assignment of their one-third interest in the property described on Exhibit A, and $2,000.00- in cash for a total initial contribution of $60,000.00, and 6 units of ownership. D. Gene S. Pepin. $40,000.00 in cash, for 4 units of ownership. E. Robert W. Stanley. $20,000.00 in cash, for 2 units of ownership. F. Theodore M. Nelson. $20,000.00 in cash, for 2 units of ownership. G. William R. Clark. $20,000.00 in cash, for 2 units of ownership. H. Linda V. Clark. $20,000.00 in cash, for 2 units of ownership. I. The 815 Partnership. $10,000.00 in cash, for 1 unit of ownership. J. Chris Scott. $5,000.00 in cash, for 1/2 unit of ownership. K. Larry Scott. $20,000.00 in cash, for 2 units of ownership. (27) The owners shall contribute additional sums in cash at such times as they may be required by the Joint Venture to purchase additional properties, for capital expenditures, and to meet necessary operating expenses of the facilities purchased with the initial contributions, as determined by a majority of the Owners. Said contributions shall be in accordance with the Owner's percentage of ownership. In the event an Owner fails to pay any such assessment after sixty (60) days written notice, the partnership and/or remaining Owners may liquidate said Owner's interest as provided in Articles VIII, IX, and X as set forth hereinafter. 2. Additional capital contributions may be made by the initial Owners or by new Owners in minimum increments of $5,000 upon approval of the management committee. However, any capital contribution made which is not approved by the management committee, whetherby cash, property, unwithdrawn profits, or other- wise, shall be an advance to the Joint Venture, not a capital contribu- tion. Any charge against a partner for his share of a loss of the Venture shall be an obligation of that partner to the Joint Venture, not a reduction in his interest in the capital of the Joint Venture. No interest shall be paid on such advances or obligations unless the management committee agrees thereto in writing. 3. At least annually, on the anniversary date of the formation of the joint venture, a re-valuation of the net worth shall be made by the management committee and submitted to the owners for their approval. Upon approval of a majority of the owners, that valuation so established shall provide the basis on which each owner's ownership percentage (either the initial owners or new owners) shall be determined. Such valuation may be determined more frequently than annually, if the management committee decides it is necessary to do so. ARTICLE III Profits and Losses 1. The net profits and net losses of the Joint Venture shall be • credited and charged to the Owners in the proportions noted above in Article II, or as amended by the procedure described in Article II (3). (28) 2. The net profits or net losses of the Joint Venture shall be determined in accordance with generally accepted accounting principles after the close of the fiscal year of the Joint Venture. 3. Unless otherwise agreed by the management committee, all receipts from all sources, less amounts needed to pay current expenses, loan payments, taxes, and amounts deemed necessary to meet expenses expected to arise in the near future, shall be distributed annually or more frequently at the vote of the owners, to the parties in the propor- tions set forth above. It is, however, agreed at the present time and until changed by the management committee that the sum of not less than Five thousand ($5,000) Dollars shall be held in a reserve to meet any expenses which may arise. ARTICLE IV Management 1. Title to property. Title to the land, buildings, interest in property, and any personal property owned in connection therewith will be held in the name of The Greeley Sheltership. Legal title to property shall not effect the interests of the parties in said property as set forth in this agreement. 2. Business decisions. All decisions except those to be made by a rental or managing agent, pursuant to management contract, and except those for which the authority has been given to a person or persons appointed by the majority of the Owners, shall be made by the Management Committee. In the event of any dispute or differences of opinion as to the policies of the Joint Venture, the management of its business, or any other matter in connection with the conduct thereof or concerning the interpretation of this Agreement or the rights of the parties or their legal representatives, the final decision shall, except as otherwise expressly provided in this Agreement, be vested in a majority of the Owners, and each party hereby agrees to abide by any such decision. (29) 3. Management Committee/Managing Partner. Three owners shall comprise the management committee who shall have the authority and responsibility of supervising the business of the joint venture. The management committee shall make all decisions relative to the purchase or sale of property, financing, hiring of managers, acceptance of capital investment by initial or new owners, and in general shall have authority to make all business decisions relative to partnership operations. Members of the management committee may be removed by a majority of the owners. Every 3 years, the members of the management committee shall be re-appointed or replaced by a vote to be cast by the owners. A majority of the owners must approve the re-appointment of a member of the management commi- ttee. A similar process shall be followed in the event of the resignation or withdrawal of a partner as a member of the management committee. Initial members of the management committee are: James M. Kadlecek, John K. Jerome, 6 Judith Ewegen. 4. Checks. The Joint Venture may establish one or more bank accounts to facilitate its business. All checks of the Joint Venture may be signed by such persons as may be so authorized by the management committee. 5. Restrictions. No Owners, without the written consent of the management committee, may buy, sell, convey, lease, mortgage, or otherwise dispose of or encumber any property of the Joint Venture; lend, borrow, guarantee, or otherwise commit the Joint Venture to any project, contract to do any of the foregoing, or take any action the effect of which would be to create a legal obligation or liability of the Joint Venture or any of the parties, unless the party so acting is authorized to do so by the terms of this Agreement. ARTICLE V The fiscal year and accounting period for the Joint Venture shall be the calendar year. ARTICLE VI Transfer or Encumbrance of Interest 1. No interest in this Agreement or in this Joint Venture may be transferred or encumbered by any Owners, except with approval of the manage- ment committee. The terms - "transfer" and "encumbrance" shall include any sale, assignment, gift, or other disposition of any interest in this Joint Venture, voluntary or involuntary. (30) 2. Any purported transfer or encumbrance made or suffered by any Owner in violation of this Article shall be ineffective to transfer or to encumber any interest in this Agreement or in the Joint Venture, and the Owners may recover from the Owner making such purported transfer or encumbrance any damages suffered as a result thereof, and subject to such right of recovery, they may at their option, (a.) wind up the business of the Joint Venture as provided in Article XI, below, or (b.) continue the business of the Joint Venture in its present name or a new name and liquidate the interest of the Owner making the purported transfer or encumbrance in the manner provided in Articles VIII and IX, below, except that the valuation date for purposes of such Articles shall be the date of the purported transfer, and the written notice required by paragraph 2 of Article VIII will be timely if delivered within ninety (90) days of the discovery of the purported transfer by the other Owners. In any event, however, no bond shall be required of the Joint Venture or the other Owners to secure the payment for such interest or to indemnify against present or future Joint Venture liabilities. 3. In the event that any Owner is permitted to assign his or her interest in this contract as provided above, the assignee shall first sign whatever instruments are deemed necessary by the management committee in order to be subject to this Agreement and all its provi- sions. ARTICLE VII Term This Joint Venture shall continue until terminated as hereinafter provided. ARTICLE VIII Withdrawal, Death, Bankruptcy or Insanity of an Owner 1. An Owner may withdraw from the Joint Venture upon giving ninety (90) days prior written notice to the management committee. Such notice shall be sufficient if sent by registered or certified mail to the last known address of the Owner to whom the notice is to (31) be given. The effective date of withdrawal shall be the date of delivery of the notice of withdrawal. 2. Upon the withdrawal, death, bankruptcy (which term as used herein shall include the filing of a petition in bankruptcy by or against an Owner) or insanity (which term as used herein shall include any insanity, lunacy or mental incompetancy adjudicated by a court) of an Owner, the surviving Owners shall have an election, (a.) to continue the business of the Joint Venture under its present name or a new name, and to liquidate the interest of the withdrawing, deceased, bankrupt, or insane Owner as hereinafter provided, or (b.) to wind up the business of the Joint Venture as provided in Article XI, below. An election under (a.), above, shall be exercised by a written notice, signed by a majority of the surviving or remain- ing Owners, and delivered to the withdrawing Owner or the legal repre- sentative (which term as used herein shall include a trustee in bank- ruptcy) of the deceased, bankrupt, or insane Owner within said Ninety (90) days after the notice of withdrawal or after the appointment of such legal representative. Such delivery shall be sufficient if made in person or sent by registered or certified mail to the last known address of the withdrawing Owner or legal representative. 3. Upon the election under 2(a), above, the interest of the withdrawing, deceased, bankrupt, or insane Owner shall be liquidated, in the manner provided in Articles IX, and X, below, by the contribu- tion by the remaining Owners, in proportion to their interest in capital, of the additional capital as and when necessary to accomplish the liquidation. 4. Neither the withdrawing Owner or the legal representative of the deceased, bankrupt, or insane Owner shall have any right to use the name of the Joint Venture or any similar name. 5. In the event the Joint Venture does not wish to liquidate the interest of the withdrawing, deceased, bankrupt, or insane Owner, the remaining owners who desire shall have the right to purchase the inter- est of the withdrawing, deceased, bankrupt, or insane Owner for the value as set forth in Article IX. In the event none of the remaining (32) partners elect to purchase said interest, it may be sold by the withdrawing partner or his heirs or representative to whomever he or she so desires. ARTICLE IX Valuation of the Interest of the Withdrawing, Deceased, Bankrupt, or Insane Owner 1. The value of the interest of a withdrawing, deceased, bank- rupt, or insane Owner shall be determined as of the effective date of such withdrawal, or the date of death, institution of bankruptcy proceedings or adjudication of insanity (hereafter referred to as the "valuation date") and shall be the sum of the capital of the Owner, his proportionate share of the net profits of the Owner accrued on the valuation date, and any outstanding obligations from him to the Owner, shall be deducted from the aforesaid value. Such valuation to be determined by a Certified Public Accountant in accordance with generally accepted accounting principles. 2. For the purposes of determining the capital of the Owner, all assets of the Owner shall be valued at book value, as determined above, except that any land or improvements shall be valued at their current fair market value, as determined by the average of two inde- pendent appraisals made as soon as practicable after the valuation date by qualified appraisers selected by the remaining Owners. The expense of the appraisal will be considered an expense accrued by the Owners on the valuation date. 3. No value shall be attributed to good will, going concern, or similar intangibles. 4. The surviving Owners agree that they will proceed as expeditiously as possible to determine the value of the interest of the withdrawing, deceased, bankrupt, or insane Owner. ARTICLE X Payment for the Interest of a Withdrawing Deceased, Bankrupt, or Insane Owner 1. Payment for the interest of a withdrawing, deceased, bankrupt, or insane Owner, in the amount as determined under Article IX, above, (33) shall be made by the Joint Venture in cash within 6 months from the date valuation is established pursuant to Article IX. Interest at the rate of Twelve percent (12%) per annum shall commence 30 days after the withdrawal, death, insanity, or bankruptcy of the Owner. ARTICLE XI Termination and Winding Up 1. If the Owners shall by a majority vote agree to terminate the Joint Venture, or an election to wind up the business of the Joint Venture is made under paragraph 2 or Article VIII, above, the business and affairs of the Joint Venture shall be wound up as promptly as possible. The remaining Owners may attend personally to the discharging of liabilities and disposing of assets pursuant to the winding up, or may employ such agent or agents for that purpose as they may deem proper. Reasonable compensation for such services shall be paid by the Joint Venture to the Owners or agents rendering such services. 2. The Owners shall continue to share profits and losses of the Joint Venture during the period of winding up in the same propor- tions as before winding up was commenced. In the case of a termination pursuant to paragraph 2 of Article VIII, the withdrawing Owner or the legal representative of the deceased, bankrupt, or insane Owner, as the case may be, shall continue to be an Owner to the Joint Venture and participate in its profits and losses during the winding up period. 3. The Owners who have incurred obligations to the Joint Venture (as described in Article II) shall repay such obligations to the Joint Venture, and assets of the Joint Venture shall be used and distributed in the following order: (a) Payment of expenses of winding up and of the debts �\ and liabilities of the Joint Venture to creditors other than the Owners. (34) (b) Repayment or any advances by Owners as described in Article II. (c) Distribution to the Owners in proportion to their interest in the capital of the Joint Venture as set forth in paragraph 1 of Article II. 4. If the assets of the Joint Venture are insufficient to make the payments required by sub-paragraphs (a) and (b) above, then the Owners shall contribute the additional cash required, each Owner contributing such sum or sums as will, after distribution of the new contributions, cause the interests of the Owners to be in propor- tion to their interests in the capital of the Joint Venture as set forth in paragraph 1 of Article II. S. Any gain or loss on the disposition of Joint Venture assets in the process of winding up shall be credited or charged to the owners in proportion to their interests in the profits and losses of the Joint Venture. ARTICLE XII Applicable Law This Agreement and all documents collateral thereto shall be governed by the Uniform Partnership Law and other laws of the State of Colorado. ARTICLE XIII Miscellaneous This Agreement is entered into for the sole purposes herein agreed upon. This Agreement shall not be interpreted or construed so as to create any permanent partnership or permanent joint venture between the parties and shall not limit any of the parties in their right to carry on their individual businesses for their own benefit. The Owners hereto agree that they will execute any instruments and perform any acts which are now or may hereafter become necessary to effectuate the purposes of this Agreement. This Agreement can only be modified by a vote of a majority of the Owners. (35) IN WITNESS WHEREOF, the Owners hereto have executed this Agreement as of the day and year first above written, and this Agreement shall be binding upon the heirs, representatives, and assigns of the parties hereto. Individual ownership approvals are attached herewith and become a part of this agreement. (36) EXHIBIT A Lot One (1), and the North half (1) of Lot Four (4), except the East One Hundred Twelve Feet (112') thereof, Block Ninety-two (92), City of Greeley, County of Weld, State of Colorado. (37) ,j AMENDMENT TO AGREEMENT This amendment, dated January 2, 1982, amends the partnership agreement of The Greeley Sheltership, as follows: The number of initial units described in Article I (2) and in Article II, (1) (E) owned by Robert W. Stanley, is herewith changed to one and one-half (1}), and the amount of Stanley's initial capital contribution is changed to $15,000.00. APPROVED: APPROVED: THE GREELEY SHELTERSHIP Robert W. Stanley MANAGEMENT (ee By By v G// 0 (38) ADDENDUM ID AGREEMENT of THE GREELEY SHELTERSHIP -' PARTNERSHIP AGREEMENT • The following individuals, having executed the Owner's Approval and made the Capital contribution as agreed, are herewith added to the list of owners of the partnership as shown in Article I of the partnership agreement of December 15, 1981. The ownership interest, stated by units , is effective as of May 1, 1982. 12. Darrell W. and Harriet Schurle 74 units 13. W.H. and Patricia R. Kehler 9% units 14. Dale Boehner 1 unit This Addendum approved by the Management Committee on April 30, 1982 John K. Jerome Judith . Ewegen James M. Kadlecek (39) • ADDENDUM TO AGREEMENT of • THE GREELEY SHELTERSHIP PARTNERSHIP AGREEMENT The following entity, having executed the Owner's Approval and made the Capital contribution as agreed, are herewith added to the list of owners of the partnership as shown in Article I of the partnership agreement of December 15, 1981. The ownership interest, stated by unit, is effective as of June 1, 1982. 15. Stanley Commercial Radio Company 1 unit This addendum approved by the Management Committee on May 31, 1982. John K. Jerome udith W. Ewegen James M. Kadlecek (40) ADDENDUM TO AGREEMENT of . THE GREELEY SHELTERSHIP PARTNERSHIP AGREEMENT The following individuals, having executed the Owner's Approval and made the Capital contribution as agreed, are herewith added to the list of owners of the partnership as shown in Article I of the partnership agreement of December 15, 1981. The ownership interest, stated by units, is effective as of June 9, 1982. 16. Dorothy M. Stanley 3 units This Addendum approved by the Management Committee on June 9, 1982. John K. Jerome dfren I ames -M..,, Kadlecekk//// (41) AMENDMENT TO PARTNERSHIP AGREEMENT OF THE GREELEY SHELTERSIIIP At the annual meeting of the partnership, held on January 20, 1983, a unanimous vote of those present approved the following amendment to the partnership agreement dated December 15, 1981: Article IV (Management), Paragraph 3, is herewith altered to increase the number of owners serving on the Management Commi- tee from three (3) to five (5). In addition, the partners herewith approve the following owners as members of the Management Committee to serve the indicated terms: James M. Kadlecek - term expires on January 31, 1986 John K. Jerome - term expires on January 31, 1986 Judith W. Ewegen - term expires on January 31, 1985 Gene S. Pepin - term expires on January 31, 1985 Robert W. Stanley - term expires on January 31, 1984 Each year at the annual meeting, the majority of owners, shall vote to re-appoint or replace members of the Management Committee whose term has expired. Read and agreed to this 744 day of 7774,2,LG,2_ 19n, by: kille ()Kit r-/V- 2F 4; C.C2GL J �Lw.Ly., �J a A majority of the Greeley She ter ship partners having approved this Amendment, it is therefore declared adopted. STATE OF COLORADO ) ) ss. COUNTY OF WELD The foregoing instrument was acknowledged before me this 7th day of March , 1983, by the following Greeley Sheltership Partners: John K. Jerome, Gene S. Pepin, Darrell W. Schurle, Theodore M. Nelson, Richard R. Bond, Robert W. Stanley, Bill Kahler, Lester G. Ewegen, Robert J. Shreve, James M. Kadlecek, Dale 8oehner, Judith W. Ewegen, and Linda L. Kadlecek for 815 Partnership. ess my hand and �)ficial seal. f�t fFub eiLie/.//er.�f/.pnO Cary MY Caucasian non,Di[ 2,nag GREELEY SHELTERSHIP PARTNERS as of 3/1/83 Units Units Partner of Partner of No. NAME Ownership No. NAME Ownership 1 & 2 William & Linda Clark 5 13 Bill & Pat Kahler 94 6100 E. Calle-Ojos 1117 24th Ave. Ct. Tucson, Arizona 85715 Greeley, CO 80631 3 Les & Judy Ewegen 95 14 Dale Boehner 1 900 Canosa Ct. 1710 9th St. Ft. Collins, CO Greeley, CO 80631 4 John K. Jerome 16 15 Stanley Commercial 1 700 11th St. Radio Co. Greeley, CO 80631 300 8th Avenue Greeley, CO 80631 5 Kadlecek Inv. Co. 204 818 5th St. 16 Dorothy M. Stanley 4 4 Greeley, CO 80631 c/o R. A. Stanley P.O. Box 288 6 Ted Nelson 2 Greeley, CO 80632 1854 14th Ave. Greeley, CO 80631 17 Richard R. Bond 1 1954 25th Ave. 7 Gene Pepin 4 Greeley, CO 80631 1806 17th Ave. Greeley, CO 80631 18 B-2 Properties 1 1954 25th Ave. 8 Robert W. Stanley 2 Greeley, CO 80631 300 8th Ave. Greeley, CO 80631 19 Robert J. Shreve 1 7979 W. 28th St. 9 815 Partnership 1 Greeley, CO 80631 c/o Linda Kadlecek Kosmicki & Assoc . 1 505 Greeley Nat'l Plaza 20 Robert A. Stanley z P.O. Box 288 Greeley, CO 80631 Greeley, CO 80632 10 Chris Scott 1 z 954 11th St. Boulder, CO 80302 11 Larry Scott 2 Univ. Nat'l Bank 2000 S. College Ft. Collins, CO 80515 12 Darrell & Harriet 74 Schurle 380 S. 20th Brighton, CO 80601 GREELEY SHELTERSHIP PARTNERS July 15, 1982 Shares Shares 1 & 2 William & Linda Clark (4) 13 William & Pat 'Cattier (91/2) 6100 E . Calle Ojos Verde 1117 24th Ave. Ct. Tucson, Arizona 85715 Greeley, CO 80631 3 Lester & Judith Ewegen (91) 14 Dale Boehner (1) 1904 Kedron Drive 1710 9th Street Ft. Collins, CO 80524 Greeley, CO 80631 4 John K. Jerome (16) 15 Stanley Commercial (1) 700 11th Street Radio Company Greeley, CO 80631 Robert W. Stanley 300 8th Avenue Greeley, CO 80631 5 Kadlecek Investment Co. (201/2) 818 5th Street 16 Dorothy M. Stanley (3) Greeley, CO 80631 c/o Robert A. Stanley P.O. Box 288 6 Theodore M. Nelson (2) Greeley, CO 80632 1854 14th Avenue Greeley, CO 80631 7 Gene S. Pepin (4) 1806 17th Avenue NOTE: Greeley, CO 80631 On July 1, 1982, the number of units 8 Robert W. Stanley (2) for Jerome was increased from 8 to 16, 300 8th Avenue for Kadlecek from 11 to 201, and for Greeley, CO 80631 Ewegen from 6 to 9# due to the merger of the Loft property into the Shelter- 9 The 815 Partnership (1) ship. Further documentation on this c/o Kosmicki, Premer, Kurtz transaction is available in the partner- 505 Greeley National Plaza ship files. Greeley, CO 80631 10 Chris Scott (1) 281 S. Nome Denver, CO 80012 11 Larry Scott (2) University National Bank 2000 S. College Ft. Collins, CO 80515 12 Darrell & Harriet Schurle (7=) P.O. Box 1517 Avon, Colorado 81620 (a21 • MANAGEMENT COMMITTEE JAMES M. KADLECEK, 45, is a resident of Greeley, Colorado, and has been active in business in Colorado since 1957. Currently, he is co-owner of Carolin Construction Company, and managing partner of Kadlecek Invest- ment Company. His business activity is primarily related to real estate and construction. In addition, he is a partner in a number of real estate ventures which hold investment property in Denver, Greeley, Estes Park, and St. Louis . He is also currently a Colorado State Senator, having been elected twice since 1974 to the Colorado State Legislature. His service has included a principal responsibility of membership on the Joint Budget Committee and the Senate Appropriations Committee. Previously, he served on the Business Affairs and Labor Committee, the Agriculture Committee, and the Legislative Audit Committee. In 1974, he was desig- nated outstanding Freshman Legislator by his colleagues, and has three times been selected as one of the top five legislators by a Denver Post poll . His primary emphasis has been work on the state's budget . He concludes his legislative service on January 5, 1983. His community service has included membership and leadership offices in the Greeley Urban Renewal Authority, the Greeley Chamber of Commerce, the City Planning Commission, and the Kiwanis Club of Greeley, as well as numerous other activities in community services. Kadlecek's specialty in real estate is the acquisition or creation of investment properties, and the organization and management of joint ventures for such investment real estate. His office address is 818 5th St. , Greeley, Colorado and telephone number (303) 352-4516. JOHN K. JEROME, 43, is a Greeley native involved in the wholesale distribution business with interests in Greeley, Ft . Collins, and Boulder. While he was raised in the family business, he has been directly involved full time since 1963. Investments in the real estate market include properties in Greeley, Ft. Collins, Estes Park, and Larimer County. He considers himself a life long resident of Greeley and resides here with his wife and three children. Jerome's education includes 2 degrees with honors from the University of Colorado (Engineering, Business) . He was chosen outstanding senior engineer at Boulder and worked for the Boeing Company and United Aircraft before his return to Greeley. He was a member of four honor societies . Recreational activities center around hunting and fishing with the shooting sports predominating. He has coordinated the shooting programs for the city recreation department for about 20 years and is a certified pistol instructor, a life member of the National Rifle Association, and, time permitting, an active competitive shooter. (43) Jerome is a director of the West Greeley National Bank, a member of Kiwanis, several Masonic lodges, the Greeley Elks Club, Weld County Fish and Wildlife, and Columbine Rifle Club. JUDITH W. EWEGEN, 43, is "almost" a native, raised in Greeley and was a 1956 graduate of Greeley High School, She was a drama major at UNC (Colorado State College) and is still active in the Greeley Civic Theatre. Judith also attended Denver University, studying law while working as a legal secretary for the Denver Water Board and later as a clerk for the firm of Hodges, Silverstein and Harrington. Her past business experience includes partnership in an upholstery shop and a census and survey business. In addition, she and her husband owned and operated a dryland farm in the Briggsdale area for 10 years . She has been active in real estate investments since 1973, and became licensed in 1975. An active local realtor, she has been chairman of the Political Affairs Committee for the past 3 years, was chairman of the membership committe prior to that, and has been on the Community Relations Committee since its inception in 1977 . She is a member of I.C.M. (Institute of Creative Marketing) and N.C.R.E.E. (Northern Colorado Real Estate Exchange), and has been on the Board of Directors of NCREE for the past 4 years . Judy also served on the Weld County Board of Adjustments for 2 years. (44) 825-3377 Sunday,July 4, 1982 _ i Apartment Buildings Gain With Investors '' Yfl. any ' i By JERRY C.DAVIS pricesffor then." 1 gueetiose ,a me .;, .Cam.also thinks. the number of„people seeking apartments; Apartment `buildings have will rise even higher than the moved front being the last re- level,that has pushed vacancy to, fuge of the conservative real es- ,a low matched only by the tight. tate investor to becoming the housing-•conditions just after' darling.of the syndicators and,World,War It;; ' other-. high rollers to recent ` "when-tile economy, turns,I months L } here: will be a tremendous' in an;leashing turnaround; amount of expansion as these" apartment buildings are in high:",people Seek their`own- apart demand; Everything adds up to 'ments.;Mid they will rent be-+ their' bringing big returns, to Cause buying a home is afford- investors -ream either buy the able to fewer and fewer people. buildings outright or put money The normal purchase 'market into,syndicates that',purchase has been hurt,but this helps the 3 these'properties,:says Kenneth investment market.,, - 1 S. Gain, president of the Real - The' •conversion of many Estate Securities and Syndics,,apartments to.condominium use z do Institute .% ., , „ov`ea:the la$t.few years also has "let oC all, almost no.new Contributed to the strong apart-1 ate being built„"he taent market,Gain said; a said. L„ the numbers to `"More apartments,have been l Indict' "'thereat rates lost by conversion than-the num- wou :require the'developer to berot malted units that'; cba gereWBLetween4o+percent !lave blot huflt,'`heslit : 10170,percentmore than eudst- , Gain is president of perhaps ing rental levels:"That'Meting''this only trade association-con-' owners of apartments,already necfed with real estate that has, built can raise rents that much actually grown in membership.a higher without.mating ..Into The institute's m embership'con- , crew rental sl is Of beopler:ai�ho develop real'. "., - ' ,.1 ter:syndicates and limited Re thinks owners are starting partnerships that give the small"' to raise rents ready,end Will,investor'a chance to participate reach th aelevelsinaboutthree; In- the:ownership of a large., years,:BFeo enhancing prof apartment 'building or other. its. —:.a M property with a typical tiniest-, . It tn,#, rem rater come ipentet$Qfter orless. down,-`" ant;coinhtelitaiu ofr ,rt."'Idiplit whowanted to invest] would be more leap-, ilrapartmentsInthe past bought, eib&e,;,Gafn tl)4nk. the cost of a four'flat they could fix bpi on , materials'wil,take off,.,continu j weekends^be salt"That's they 'Rig.₹o make it ifbchi*.t'o bald. only war the'small investor; ipartmentsprofitably. a : .dohdd get Gds real estate.Now;; µ"Some a the materials:pro- the denominations of syndicate duction facilities-have been shut investments have dropped so' down because.of the depressed that middleincome people call building market, so there will afford toput:a few thousand' not bess many in business when into a partnership without hav-` construction picks up again'"he: big to give.up their free time said. "This will meanere�duccd ed''..improving and maintaining the supply of materiel,and M& bnUdinE$themselve ." .. ,,.r . - Ck rmak.s:,•.,. n. mit./..t$'imr.e. t .,—e,,, (/ES)__ _ _ BUSINESS/FINANCE Market Changes Enhance Rentals' Potential For the first time in recent The degree of change in investor and the safety net may become less attitudes is illustrated by the respons- important, RERC said. years investors are es in RERC's mid-1981 survey. A variety of financing alternatives regarding new rental S S When asked in the summer of 1981 is available to builders moving to take projects as a viable what types of real estate offered the advantage of opportunities in rental investment opportunity greatest potential, enough respon- housing construction. pp y dents mentioned multifamily resi- At the "New Strategies for Profit" dential to push it to second place— seminars sponsored by Professional right behind office buildings. In prior Builder and Kenneth Leventhal and DAN MCLEISTER years, no interest in rental housing Co. of Los Angeles, Jack Rodman SENIOR EDITOR was expressed. The 1981 response highlighted the current financing represents a noteworthy shift in atti- trends in multifamily rental housing: Pockets of opportunity are appearing tudes, according to RERC. ❑ Widespread use of tax-exempt in the rental construction market for Financing for rental construction, bond programs. In a typical arrange- builders with the marketing knowl- according to RERC, is likely to come ment in Tucson, Ariz., a major bank edge and financial resources is underwriting a large issue to capitalize on improved con- r,,••.,%.1.r -., • g. ; zjii of tax-exempt bonds. Loan ditions. 8,. '" 1 e '':;:" rates are 12.785 to 13.5 percent. Consider these positive d -" ` 't Y. t4 ,i At least 20 percent of the units signs: '.) t.tr atte'1, 4; , -- 1 in this case must he rented to ❑ Would-be home buyers -t r4 it,•J f'kt* . "fir, '�; ' locked out of the for-sale mar- � low-income families. t "'>�r 'i" a' ,wt ❑ Participation mortgages. ket by high interest rates are 1)41.-.),J.,,1 w,f at> i The example just cited in swellingTuc- the demand for ren- t 'fi':- + �+ i ;- son was a shared appreciation tal units. # mortgage. The first mortgage ❑ Due to the shortage of ren- is offered for a five- to seven- tal units, the cash flow out- e' year term in exchange for ap- look for apartments is im- - . preciation of about 50 percent proving as rents go up i J on sale of the project. The wherever there are no rent Y a- - mortgage rate is below market controls. J rates at 12.5 to 13.5 percent. ❑ The outlook for financing is ;;, "„ -- . The developer sells the land improving as new financing and leases it back. The lender methods are developed. And l i°z ' also takes 20-25 percent of all the tax advantages due to "� ' rent increases. new depreciation allowances ❑ Growth in public syndica- under the 1981 Economic Re- - tions. In 1971 only $782 mil- covery Tax Act provide pow- .1 lion in public limited partner- erful incentives for rental con- ships were being formed. In struction. Stavros Economou, president of A.G. 1981, the estimates were $4 billion. ❑ As the supply of various types of Spanos, discusses the Springs Village ❑ Non-participating mortgages. An commercial real estate begin to ex- Apartments in Atlanta, with James Rob- bins, a vice president of The Balcor Co., example is a graduated payment ceed demand, more developers will which is investing heavily in new rental mortgage similar to one issued by the turn to multifamily housing as an apartments. Actual figures for the new Federal Housing Authority. The alternative activity. project are given in the chart on opposite mortgage carries a lower interest rate ❑ In 1981, for the first time in years, page. for the first five years. The initial debt the nation's rents increased almost as service is about 30 percent less than fast as the overall rate of inflation. from two sources: all-cash purchases on a conventional, fixed-rate basis. The rent component of the Consumer (by both institutions and private lim- After the first year mortgage pay- Price Index increased 8.5 percent, ited partnerships) and public syndi- ments increase at 7.5 percent annual- while the CPI increased 8.9 percent. cations. Iv until the sixth year when the pay- Investors' renewed interest in ren- In most cases, investors will look to ment becomes constant for the tal construction is evident in New eventual condominium conversion to remaining 25-year term. York City and Chicago, as well as provide an investment safety net. The opportunities for profitability smaller communities, particularly in However, given the current demand from using these or other financing Sun Belt areas experiencing rapid pressures in rental markets and the methods have been greatly enhanced population growth, according to the continued improbability of many by the 1981 Economic Recovery Tax Real Estate Research Corp. of Chica- renters buying homes, the upward Act. go. spiral of rents is likely to continue l)ii Aug. 4, 1981, Congress passed J 22'PR0FESSI0NAL BUILDER JULY,1982 (46) the most comprehensive revision of Cash flow figures demonstrate profitability of new rental project the Internal Revenue Code since it was grandly amended in 1954, ac- Table shows projected figures for the Springs Village Apartments, a rental project with 598 units, which opened in March of 1982 in Atlanta. It was cording to Jefferson Patterson, assist- built by A.G. Spanos Development Inc. and financed by the Balcor Co. P Rental income is expected to outpace increases in expenses according to Jim In the new depreciation guidelines, Finley, senior executive vice president of Balcor. salvage value and component depre- ciation methods have all been corn- First.12 months Second 12 months pletely scrapped. Most depreciable after lease-up after lease-up real estate, except for 10-year, public ,. ' ', y" ;..r C!t 'c, utility property, is now to be written , A + ; r w •pa ' 4' off over what Patterson called an as- h dN 4tt'` :[h►�f w;., f >y ' r a IPA:- ' a?� i soundingly short 15-year period, a A compared to the former 20-to 50-year `• ��""`- i �"� f"`` `��F• �^t� useful lives. Fixed expenses - 120,000. 124,000 But these additional financing and tax tools do not guarantee success for Debt service 1,773,000 1,773,000 a builder in any market.The contrasts among local markets are extreme, ac- ' ` '' �' t J' s `, " cording to U.S. Housing Markets, the ut• ^' \ quarterly survey published by the Advance Mortgage Corp.,Detroit. some localities, this factor is out- such companies investing heavily in On the one hand, Houston and weighed by heavy doubling up of new rental apartments. Balcor ac- Phoenix have had record rental unit households sharing rental expenses. quired a record $205.5 million worth absorption in the past year. Houston The extreme contracts in rent in- of rental apartment developments in absorbed nearly 30,000 units, half creases are also evident in absorption 1981 on behalf of its public and pri- again as many as normal, while va- rates. In Houston, according to U.S. vate limited partnerships. The figure cancies dropped from 8 percent t 3 Housing'Markets, some owners are is 86 percent of the total value of percent. Phoenix vacancies were cut talking about 20-30 percent rent in- properties acquired in 1981, and rep- in half—from 10 percent to 5 percent. creases in 1982 on top of 18-20 per- resents the largest portion of new New York, Minneapolis-St. Paul, cent increases in 1981, following two acquisitions devoted to apartments in Los Angeles-Orange County and San years of very modest increases. any calendar year for the firm. Prior Diego are touching long-term lows in In San Diego, some owners have to 1980, apartments constituted about vacancies-1-2 percent in profession- thrown off their inhibitions from fear half of each year's acquisitions. ally managed buildings in New York, of rent control and are posting in- Local government holds the key to Los Angeles and Minneapolis, 2-3 creases of up to 15 percent. unlocking the potential of the rental percent in San Diego, less than 4 .At the other end of the scale, rents market, according to Robert Lesser, percent in Dallas—but 9 percent in in Seattle have increased 0.75 percent president of Robert Charles Lesser neighboring Fort Worth. in six months. In Miami, rents for and Co. of Los Angeles. At the other pole, Boston, South luxury units have been cut by as Many jurisdictions are aware that Florida, Washington and San Francis- much as a third. their future commercial/industrial co-Oakland, which have been tight One landlord who has properties growth—and therefore their future for years, are starting to see measura- in both cities posted four raises in one economic strength—is dependent on ble vacancies and slow rent-ups. year in Houston, while in Detroit he a pool of affordable housing, which Washington has authorized its first kept rents fiat. means a percentage of apartments. vacancy survey in at least a dozen Even within one metropolitan area Rent control, traditionally one of years. Atlanta, which was still tight- the opportunities are limited, accord- chief deterrents to rental housing ening a year ago, is sliding so fast ing to Jim Finley, senior executive construction, is suffering setbacks. some landlords are ashamed to tell vice president of the Balcor Co., Voters in several cities rejected rent the truth on their vacancy survey, the based in Skokie, Ill. The only section control proposals by wide margins. Advance Mortgage report stated. Se- of Atlanta, where his company put Several other cities have relaxed exist- attle occupancy has dropped 3-4 per- together a new rental housing proj- ing ordinances. cent in a year and Detroit occupancy ect, was in a northern suburb of At- The trend against rent control has dropped 3-4 percent from an al- lanta. The springs Village Apart- should accelerate with both the De- ready low figure. ments in Gwinnett County are being partment of Housing and Urban De- In all the rental markets, according developed with A.G. Spanos Devel- velopment and the President's Com- to the U.S. Housing Markets report, opment Inc. The first section of 598 mission on Housing voicing strong the supply of rental units is inade- units opened in March of 1982. opposition to rent controls. quate because of the low production Atlanta is only one of many loca- All of these factors suggest that of rental housing in recent years. Al- tions in the Sun Belt favored by Bal- now is the time for builders to take most all markets are loaded with fain- cor, a large investment and property another look at opportunities in ilies unable to buy a house. But in management firm and one of the few building rental projects. JULY,1982 PROFESSIONAL BUILDER13 (47) July 15, 1982 The Management Committee of the Greeley Sheltership, having analyzed the properties currently owned, has determined that the equity value is $890,010.00. Since 83.5 units of ownership have been purchased, each unit has a value of $10,659.00, according to the Management Committee' s determination. Therefore, it is agreed that any units of ownership pledged after this date shall be offered at a price of $11,000.00 to cover sales and transfer costs, if any. Values of each property and loan balances are shown on the attachment. THE GREELEY SHELTERSHIP MANAGEMENT COMMITTEE -t `-Y /' ,C Catr.. ✓ \ = GREELEY SHELTERSHIP SHARES RE-VALUATION 7/1/82 Property Values: Deville (17 units) $ 321,000 Carolin (26 units) 514,500 M.A.R (30 units) 725,000 Camfield (19 units + businesses) 435,000 Loft (9 units) 435,000 Total Value $2,430,500 Mortgage Loans: Deville $ 228,845 Carolin 348,577 Canfield 244,068 M.A.R. 500,000 Loft 219,000 Total Loans $1,540,490 Equity $ 890,010 83.5 Issued Units $ 10,658.80 each August 1, 1982 Disclosure Letter To the Investor , As with all investments, the investor should consider the merits of the investment weighed against the risk involved. The purpose of the Greeley Sheltership, as described in the opening introduction of this circular , is to own and oper- ate rental properties in Greeley, Colorado . While the Greeley economy has historically been quite stable , and while northern Colorado is indeed a growth area, there is always possibility of general economic decline which could have a negative effect on the partnership operations. Additionally, the rental market tends to be cyclical and if a major building boom occurred placing many new units into the rental market, that could affect rentability of our proper- ties. Also, whenever mortgage financing is used - particularly with the current volatile interest rate situation, there is a degree of risk involved . The investor in the Greeley Shelter- ship should be aware that the possibility exists that he or she may be called upon to contribute additional funds if necessary to cover operating deficits. In summary, the Greeley Sheltership Management Committee wishes any potential investor to be aware of potential risks , as well as to understand the benefits of this investment as described in this circular . Further information will be pro- vided upon request. THE GREELEY SHELTERSHIP MANAGEMENT COMMITTEE //' 4 � �ames M. Kadlecek for , The Greeley Sheltership Management Committee (50) LETTER OF INTENT James M. Kadlecek c/o The Greeley Sheltership P .O . Box 2400 Greeley, Colorado 80632 Dear Mr . Kadlecek : • Please regard this as my letter of intent to become an investor in the Greeley Sheltership. It is my understanding based upon my study of the circu- lar, that the amount of $11,000 will purchase one unit of the ownership of the properties described or to be acquired. On that basis , I wish to advise you of my desire to invest $ , for units of ownership. I will provide these funds on , 1982 . Signature (c, . _ NOT I C E PUBLIC HEARING INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR OFFICE BUILDING AT THE CORNER OF EIGHTH AVENUE AND EIGHTH STREET Docket 83-19 NOTICE IS HEREBY GIVEN of a hearing before the Board of County Commissioners of Weld County, Colorado, on the 25th day of April, 1983, at the hour of 10:00 a.m. in the Weld County Commissioners hearing room, first floor, Weld County Centennial Center, 915 10th Street, Greeley, Colorado, for the purpose of considering the application from Gateway Partnership for Weld County to issue $3,000,000 in Industrial Development Revenue Bonds. The proposed bond issue is to acquire and renovate an office building with 75,000 square feet. This procedure is in accordance with the 1967 County and Municipality Development Revenue Bond Act, Section 29-3-101, et seq. , CRS 1973, as amended. Copies of the application for Industrial Development Revenue Bonds are on file in the Office of the Clerk to the Board of County Commissioners located on the 3rd floor, Weld County Centennial Center, 915 10th Street, Greeley, Colorado, and may be inspected during regular business hours. Following the close of the public hearing, the Board of County Commissioners will consider whether or not to proceed with the issuance of Industrial Development Revenue Bonds. All interested parties under the law will be afforded an opportunity to be heard at said hearing. This notice given and published by order of the Board of County Commissioners, Weld County, Colorado. DATED: April 4, 1983 THE BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO BY: MARY ANN FEUERSTEIN COUNTY CLERK AND RECORDER AND CLERK TO THE BOARD OF COUNTY COMMISSIONERS BY: JEANNETTE SEARS, Deputy PUBLISHED: April 7, 1983 in the LaSalle Leader Affidavit of Publication STATE OF COLORADO ss. County of Weld, 1, Paula A. Barton of said County of Weld, being duly sworn, say that I am an advertising clerk of THE GREELEY DAILY TRIBUNE, and THE GREELEY REPUBLICAN that the same is a daily newspaper of general circulation and printed and published in the City of Greeley, in said county and state; that the notice or advertisement, of which the annexed is a true copy, has been published in said daily newspaper for consecutive (days) (weals); that the notice was published in the regular and entire issue of every number of said newspaper during the period and time of publication of said notice, and in the newspaper proper and not in a supplement thereof; that the first pp publication of said notice was contained in the issue of said newspaper bearing date — Ninth day of April A . 1983 and the last publication thereof; in the issue of said newspaper bearing date the s .., fi."s"4.4 — �' .. Ninth s l `ri.eFkW y day of April A.D. 19 83 o- • ''''? - that said The Greeley Daily Tribune and The Greeley Republican, has been published continuously and uninterruptedly during the period of at least six months next prior to the first issue thereof contained said notice or advertisement above referred to; that said newspaper has been admitted to the United States mails as second-class matter under the provisions of the Act of March 3, 1879, or any amendments thereof; and that said newspaper is a daily newspaper duly qualified for publishing legal notices and advertisements within the meaning of the laws of the State of Colorado. ' April 9, 1983 Total charge: $16. 82 _ -L Advertising Clerk Subscribed and sworn to before me this 9th day of April A.D. 1983 ,My /mmissiopexpritj !syiii ,,-A. r `. ary Public r: Hello