HomeMy WebLinkAbout20150949.tiff October 10, 2015
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Mr. Kim Ogle
Planner
Weld County Planning Department
1555 North 17th Avenue
Greeley, Colorado 80631
Dear Kim:
This letter will serve as my third quarterly report pursuant to my agreement with the County. As
always, I am also available to meet with the planning staff in person if needed to supplement this
information. With the expiration of the approval coming up quickly this might be a good idea.
As noted in the previous quarterly report I had received a new proposal outlining a new configuration
for the surface agreement this was significantly different than the previous versions. This change may
materially alter some aspects of the project from the owner's viewpoint but good progress on
negotiations has been made. Our goal is to establish a line of sight agreement by the parties by end of
October with final documents to be signed by year end after review by the attorneys.
This quarter was also largely spent on the ongoing attempt to update the estimated project costs. This
analysis is critical not only because of the price point considerations shared by builders which frame the
feasibility of a project but it also affects such other things as the size and complexity of the special
district service plan and application which will need to be submitted to the county and the district court.
A special district will be absolutely essential to serve as the financial intermediary to provide financing
for the expensive infrastructure needs that this project has. Without providing for financing all other
considerations are premature. Based on preliminary discussions with other parties in the area, it may be
necessary for us to take the lead in financing some regional improvements which benefit other
properties in addition to Adler Estates. Some additional time may be required to determine a suitable
financial vehicle to accomplish this.
I hope that this letter is sufficient for your purposes. If you require additional information please advise.
Sincerely,
Fred Kelly
Manager Mead Crossings
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July 10, 2015
Mr. Kim Ogle RECEIVED
Planner
Weld County Planning Department
OCT 29
1555 North 17'Avenue
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Greeley, Colorado 80631 WELDC��ny
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Dear Kim:
This letter will serve as my second quarterly report pursuant to my agreement with the County. As
always, I am also available to meet with the planning staff in person if needed to supplement this
information.
My first priority was to reassemble a team of talented professionals to advise on the various technical
aspects of the project. I have contacted the original fellow with Land Architects who worked on the
plans. I have met with Ken Puncerelli and Josh Roland. Among other things, we specifically discussed
the issue of drainage because it was a concern to commissioner Kirkmeyer. We do not see any unusual
problems here at the moment. We have both been active in locating the work product and notes in
their file archives thereby refreshing our recollection of the details.We are attempting to update the
estimated project costs. This analysis is critical because I have learned of the price point considerations
shared by builders which frame the feasibility of a project. I also received a new proposal outlining a
new configuration for surface agreement which I shared with the planners.
My second priority was to begin work on creating a special district to serve as the financial intermediary
to provide financing for the expensive infrastructure needs that this project has. Without providing for
financing all other considerations are premature. There was little done on this topic by my predecessor.
Based on a recommendation by Mr. Puncerelli I am now looking at using Fairfield and Wood law firm
that I did not realize was active in the special district arena but has apparently done some good work
recently. I have previously used this firm in the past for other matters and they have a good reputation.
Their help is going to be invaluable in negotiating surface use and the service plan.
My third priority was to engage the services of an investment banker to provide valuable input into
market conditions which exist and the various financing vehicles available to finance the infrastructure
needs. The investment banker will also be vital to constructing the financing plan needed for inclusion
in the service plan. I have considered all local firms and have chosen D.A. Davidson. This should be a
decision that you are comfortable with also but I am convinced that this is the best choice.
On a parallel path I have also had discussions with developers and builders working in the vicinity of
Mead to determine the viability of the existing land plan in today's market and the likelihood of
competing projects that could take away market share. In that connection, the Town of Mead has a
new development director,Dawn Adams,who has been helpful in making introductions and instructing
on proposed projects in the area.
I hope that this letter is sufficient for your purposes. If you require additional information please advise.
After consultation with the professionals I will be developing a timeline with milestones along the way.
Sincerely,
Fred Kelly
Manager Mead Crossings
Esther Gesick
From: Kim Ogle
Sent: Thursday, April 02, 2015 1:11 PM
To: Esther Gesick
Cc: Chris Gathman
Subject: Adler Estates PUD - First Quarterly Letter
Attachments: Kim Ogle.docx
Esther,
Please find attached the first quarterly update of the Adler Estates PUD as required by Board of County Commissioners
Resolution No. 2014-3780. PZ-1071 was approved for a one year extension until December 8, 2015 to enlist services of
professionals and to submit a complete application.
Thank you.
Kim
2015-0949
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March 31, 2015
Mr. Kim Ogle
Planner
Weld County Planning Department
1555 North 17th Avenue
Greeley, Colorado 80631
Dear Kim:
When the Weld County Commissioners approved the extension of time for the Adler Estates project in
December of 2014 one of the Commissioner's requirements was that I provide a quarterly update to
you. This letter will serve as my first quarterly report and a written record of my progress to date. I am
also available to meet with the planning staff in person if needed to supplement this information. Some
of the questions raised by Commissioner Kirkmeyer will be dealt with in later installments.
My first priority was to reassemble a team of talented professionals to advise on the various technical
aspects of the project. As I informed the commissioners and you back in December many of the
individuals who were originally involved in the planning of the project are no longer in their former
positions so we lack a little continuity in the process. Likewise several of the adjoining landowners and
holders of option contracts have gone away or changed. Nevertheless I have contacted the original
fellow with Land Architects who worked on the plans. His name as you may recall is Ken Puncerelli and
he is willing to pick where he left off. Our conversations make me think that changes to the plat may be
minor since the plan initially was quite forward looking and not the standard of the time. It envisions
development with various price points to maximize flexibility and market penetration. In any case, he
will undoubtable be instrumental in locating the work product and notes in their file archives thereby
coming up to speed quickly.
My second priority was to begin work on creating a special district to serve as the financial intermediary
to provide financing for the expensive infrastructure needs that this project has. Without providing for
financing all other considerations are premature. There was little done on this topic by my predecessor.
I have developed a list of potential lawyers to serve as special district council to create the district and
will be requesting proposals from each of the firms. The list includes Collins, Cockrel, and Cole,
McGeady Sisneros P.C., White, Bear, Ankele Professional Corp. , and Diane Miller. A key consideration
in the decision of whom to hire will be their experience or lack thereof in Weld County. If you have any
input on this decision I welcome it now. As you know, the ultimate objective here will be to first update
the project costs in light of the passage of time and circumstances. The second step then would be to
assess the absorption schedule to see how many homes can be sold over what time period and at what
price. Once I have developed this information I can then proceed to the creation of a service plan which
will demonstrate to the County how the development costs will be repaid from the resulting estimated
tax revenues over time.
My third priority was to engage the services of an investment banker to provide valuable input into
market conditions which exist and the various financing vehicles available to finance the infrastructure
needs. The investment banker will also be vital to constructing the financing plan needed for inclusion
in the service plan.I have considered all local firms and am leaning towards hiring D.A.Davidson. This
should be a decision that you are comfortable with also but I am convinced that this is the best choice.
On a parallel path I have also had discussions with developers and builders working in the vicinity of
Mead to determine the viability of the existing land plan in today's market and the likelihood of
competing projects that could take away market share. In that connection,the Town of Mead has had
two public meetings one on February 4,2015 and the other on March 16,2015 with the explicit purpose
of introducing interested parties working in and around the Mead area to discuss plans and topics of
mutual interest. Surprisingly several of the people that showed up for the meetings are people that I
have known for many years so this should make it a little easier. One of the difficult tasks that I have
before me is solving the many challenges that affect the entire area not just our property. This will take
a concerted effort of all parties to find solutions and some of the owners are not as far along in the
process as I am. I also have access now to the services of Metro Study a national firm who tracks
development statistics in Colorado and Weld County.
I hope that this letter is sufficient for your purposes.If you require additional information please advise.
After consultation with the professionals I will be developing a timeline with milestones along the way.
Sincerely,
Fred Kelly
Manager Mead Crossings
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