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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/18/2018 - ITEMS AMENDING THE SERVICE PLANS FOR THE I-25/PROSAgenda Item 16 Item # 16 Page 1 AGENDA ITEM SUMMARY December 18, 2018 City Council STAFF Josh Birks, Economic Health Director John Duval, Legal SUBJECT Items Amending the Service Plans for the I-25/Prospect Interchange Metropolitan District and the Gateway at Prospect Metropolitan District Nos. 1-7. EXECUTIVE SUMMARY A. Resolution 2018-125 Approving the Corrected District Boundary Legal Description, District Boundary Map and Vicinity Map of the I-25/ Prospect Interchange Metropolitan District and Approving Corresponding Amendments to the District Service Plan. B. Resolution 2018-126 Approving the Corrected District Boundary Legal Descriptions of Gateway at Prospect Metropolitan District Nos. 1-7 and Approving Corresponding Amendments to the District Service Plan. The purpose of this item is to modify the service plans for the I-25/Prospect Interchange Metropolitan District and the Gateway at Prospect Metropolitan District Nos. 1-7. These proposed modifications correct the legal descriptions of the boundaries of the districts to exclude certain properties from their boundaries that were included in the boundaries due to a surveyor’s error. STAFF RECOMMENDATION Staff recommends adoption of both Resolutions. BACKGROUND / DISCUSSION On March 6, 2018, the City Council adopted Resolution 2018-025 approving the Service Plan for the I- 25/Prospect Interchange Metropolitan District and adopted Resolution 2018-027 approving the Consolidated Service Plan for the Gateway at Prospect Metropolitan District Nos. 1-7 (collectively the “Service Plans”). The Service Plans include legal descriptions of the boundaries of the I-25/Prospect Interchange Metropolitan District and each of the Gateway at Prospect Metropolitan District Nos. 1-7 (collectively the “District Boundary Legal Descriptions”). Due to a surveyor’s error the District boundary legal descriptions incorrectly included properties that should not have been included in the boundaries. The Resolutions presented for Council consideration correct the District boundary legal descriptions by modifying the Service Plans to exclude these properties from the District boundary legal descriptions. The boundary and vicinity maps attached to the Service Plan of the I-25/Prospect Interchange Metropolitan District are also being modified to correct the surveyor’s error. The updated and corrected Service Plans are attached to each Resolution. In all other respects, all other provisions of the updated Service Plans remain identical to those in the previously approved Service Plans. To provide more clarity on the proposed changes to the District boundary legal descriptions (Attachment 1) identifies the parcels erroneously included within the original legal descriptions. (Attachment 2) shows the Agenda Item 16 Item # 16 Page 2 updated and corrected District boundary legal descriptions without these parcels. CITY FINANCIAL IMPACTS These Resolutions have no financial impact on the City. ATTACHMENTS 1. I-25 Prospect Interchange-Error Map (PDF) 2. I-25 Prospect Interchange - Corrected Boundary Map (PDF) PROSPECT ROAD INTERSTATE 25 PROSPECT ROAD SUMMIT VIEW DR. GREENFIELD CT. BOXELDER DR. CARRIAGE PKWY KITCHELL WAY PARADIGM 17.350 ac. LAAM 132.793 ac. FCIC/GAPA 178.852 ac. CSURF 142.435 ac. DISTRICT TOTAL = 471.43 ac. ( IN FEET ) 1 inch = ft. 1000 0 1000 Feet 1000 I-25/PROSPECT INTERCHANGE METROPOLITAN DISTRICT FORT COLLINS COLORADO E NGINEER ING N O R T H E RN DESCRIPTION DRAWN BY DATE PROJECT 102-002 DRAWN BY SCALE EXHIBIT C. Snowdon DATE January 31, 2018 FORT COLLINS: 301 North Howes Street, Suite 100, 80521 GREELEY: 820 8th Street, 80631 970.221.4158 northernengineering.com DISTRICT BOUNDARY MAP 1" = 1000' B -1- RESOLUTION 2018-125 OF THE CITY COUNCIL OF THE CITY OF FORT COLLINS APPROVING THE CORRECTED DISTRICT BOUNDARY LEGAL DESCRIPTION, DISTRICT BOUNDARY MAP AND VICINITY MAP OF THE I-25/PROSPECT INTERCHANGE METROPOLITAN DISTRICT AND APPROVING CORRESPONDING AMENDMENTS TO THE DISTRICT SERVICE PLAN WHEREAS, Title 32 of the Colorado Revised Statutes (“C.R.S.”) authorizes the formation of various kinds of governmental entities to finance and operate public services and infrastructure, including metropolitan districts; and WHEREAS, on March 6, 2018, the City Council adopted Resolution 2018-025 Approving the Service Plan for the I-25/Prospect Interchange Metropolitan District (the “Service Plan”); and WHEREAS, the Service Plan includes a legal description of the boundaries of the I- 25/Prospect Interchange Metropolitan District (the “District”), as more particularly set forth in Exhibit “A” (“District Boundary Legal Description”), as attached thereto; and WHEREAS, the Service Plan includes a map of the boundaries of the District, as more particularly set forth in Exhibit “B” (“District Boundary Map”), as attached thereto; and WHEREAS, the Service Plan includes a Vicinity Map of the District, as more particularly set forth in Exhibit “C” (“Vicinity Map”), as attached thereto; and WHEREAS, due to a surveyor’s error, the District Boundary Legal Description, the District Boundary Map and the Vicinity Map include 1.685 acres of land within the District’s boundaries that was not intended to be included in these boundaries; and WHEREAS, City Council wishes to correct the District Boundary Legal Description, the District Boundary Map and the Vicinity Map to more accurately reflect the District’s intended boundaries, as set forth in the updated Service Plan for I-25/Prospect Interchange Metropolitan District, attached hereto as Exhibit “A” and incorporated herein by this reference (“Updated Service Plan”); and WHEREAS, the City Council wishes to approve the Updated Service Plan solely for the purpose of correcting the District Boundary Legal Description, the District Boundary Map and the Vicinity Map and Section IV of the Service Plan so they are consistent with the District’s intended boundaries and finds that these modifications of the Service Plan are not material modifications. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT COLLINS, COLORADO, as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. -2- Section 2. That the City Council hereby approves and accepts the corrected District Boundary Legal Description, District Boundary Map and Vicinity Map, as set forth in the Updated Service Plan. Section 3. That the City Council hereby approves the Updated Service Plan to correct only the District Boundary Legal Description, the District Boundary Map and the Vicinity Map, and to change District’s approximate acreage in Section IV of the Service Plan from four hundred seventy-one (471) acres of planned mixed-use land to approximately four hundred seventy (470) acres to account for the surveyor’s error; and in all other respects all other provisions of the Updated Service Plan shall remain identical to those in the previously approved Service Plan. Section 4. That the City Council hereby directs the District to file the requisite motion with the Larimer County District Court to correct the Order and Decree Organizing the District in accordance with the Updated Service Plan and consistent with this Resolution. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 18th day of December, A.D. 2018. _________________________________ Mayor ATTEST: _____________________________ City Clerk SERVICE PLAN FOR I-25/PROSPECT INTERCHANGE METROPOLITAN DISTRICT CITY OF FORT COLLINS, COLORADO Prepared by: White Bear Ankele Tanaka & Waldron, Professional Corporation 748 Whalers Way, Suite 210 Fort Collins, Colorado 80525 December 18, 2018 EXHIBIT A i TABLE OF CONTENTS I. INTRODUCTION .............................................................................................................. 1 A. Purpose and Intent................................................................................................... 1 B. Need for the District................................................................................................ 1 C. Objective of the City Regarding District’s Service Plan. ....................................... 1 II. DEFINITIONS .................................................................................................................... 1 III. BOUNDARIES ................................................................................................................... 4 IV. PROPOSED LAND USE AND ASSESSED VALUATION ............................................. 4 V. DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES ....... 4 A. Powers of the District and Service Plan Amendment. ............................................ 4 1. Operations and Maintenance....................................................................... 4 2. Inclusion and Exclusion Limitation. ........................................................... 4 3. Maximum Debt Authorization. ................................................................... 4 4. Monies from Other Governmental Sources. ............................................... 5 5. Consolidation Limitation. ........................................................................... 5 6. Eminent Domain Limitation. ...................................................................... 5 7. Service Plan Amendment Requirement. ..................................................... 5 VI. FINANCIAL PLAN............................................................................................................ 5 A. General. ................................................................................................................... 5 B. Maximum Debt Service Mill Levy. ........................................................................ 6 C. Security for Debt. .................................................................................................... 6 F. TABOR Compliance. .............................................................................................. 6 G. District’s Operating Costs. ...................................................................................... 6 H. Election. .................................................................................................................. 7 VII. ANNUAL REPORT ........................................................................................................... 7 A. General. ................................................................................................................... 7 B. Reporting of Significant Events. ............................................................................. 7 VIII. DISSOLUTION .................................................................................................................. 7 IX. PROPOSED AND EXISTING INTERGOVERNMENTAL AGREEMENTS AND EXTRATERRITORIAL SERVICE AGREEMENTS ....................................................... 8 X. MATERIAL MODIFICATIONS ....................................................................................... 8 XI. SANCTIONS ...................................................................................................................... 9 XII. CONCLUSION ................................................................................................................... 9 XIII. RESOLUTION OF APPROVAL ..................................................................................... 10 1587.0003; 875074 ii LIST OF EXHIBITS EXHIBIT A Legal Description of District Boundaries EXHIBIT B District Boundary Map EXHIBIT C Vicinity Map EXHIBIT D Capital Pledge Agreement EXHIBIT E Financial Plan 1 I. INTRODUCTION A. Purpose and Intent. The District, which is intended to be an independent unit of local government separate and distinct from the City, is governed by this Service Plan. Except as may otherwise be provided for by State or local law or this Service Plan, the District’s activities are subject to review by the City only insofar as they may deviate in a material manner from the requirements of this Service Plan. This Service Plan is being submitted in connection with the redevelopment of the interchange at Interstate Highway 25 and Prospect Road (the “Interchange”), currently owned by the State of Colorado and operated and maintained by the Colorado Department of Transportation (“CDOT”). CDOT has notified the City that it is planning a project to significantly modify and improve the Interchange by reconstructing its ramps and bridge and by reconstructing Prospect Road to a configuration with four (4) through lanes, a raised median, left turn lanes and pedestrian and bicycle facilities, with this work to include certain enhanced urban design elements (the “Interchange Project”). The City and the Property Owners have entered into a Binding Agreement with the City, pursuant to which the Property Owners have agreed to provide for the financing of the Owners Share (as defined therein) of the Interchange Project through the District. In connection with the Binding Agreement and the Interchange Project, the District and the City intend to enter into a Capital Pledge Agreement, in substantially the form and substance as attached hereto as Exhibit D, at the District’s first meeting after the District Organization Date. The Capital Pledge Agreement shall constitute a Debt of the District, and will set forth the District’s obligation to pledge certain of its revenues to the payment of such Debt. B. Need for the District. Organization of the District is integral to the financing of the Interchange Project. The Interchange Project will provide significant public benefits to the City and its residents, as well as the residents, taxpayers and property owners of the District. The Capital Pledge Agreement is necessary to finance the Interchange Project. There are currently no other governmental entities, including the City, located in the immediate vicinity of the District that, at this time, can financially undertake the obligations underlying the Capital Pledge Agreement. Formation of the District is therefore necessary in order for the Interchange Project to be provided for in the most economic manner possible. C. Objective of the City Regarding District’s Service Plan. The City’s objective in approving the Service Plan for the District is to authorize the District to provide partial financing for the Interchange Project through any available revenue sources provided for in the Capital Pledge Agreement. The District shall be dissolved upon completion of all obligations under the Capital Pledge Agreement in accordance with Section VIII of this Service Plan. II. DEFINITIONS 1587.0003; 875074 2 In this Service Plan, the following terms which appear in a capitalized format herein shall have the meanings indicated below, unless the context hereof clearly requires otherwise: Binding Agreement: means that certain Binding Agreement Pertaining to Development of the Interstate Highway 25 and Prospect Road Interchange entered into between the City and the Property Owners. Board: means the Board of Directors of the District. Bond, Bonds or Debt: means bonds, notes or other multiple fiscal year financial obligations for which the District has promised to impose an ad valorem property tax mill levy, and other legally available revenue, for payment. The Capital Pledge Agreement constitutes Debt for purposes of this Service Plan. Such terms do not include annually-appropriated contracts through which the District procures or provides services. Capital Pledge Agreement: means that certain Capital Pledge Agreement, in substantially the form and substance attached hereto at Exhibit D, which is to be entered into between the District and the City at the District’s first meeting after the District Organization Date., as it may be amended from time to time in accordance with the provisions thereof. City: means the City of Fort Collins, Colorado. City Council: means the City Council of the City of Fort Collins, Colorado. Any provision of this Agreement requiring City Council approval shall be deemed to be exercised by City Council in its sole discretion. District: means I-25/Prospect Interchange Metropolitan District. District Boundaries: means the boundaries of the area described in the legal description attached hereto as Exhibit A. District Boundary Map: means the map attached hereto as Exhibit B. District Organization Date: means the date the order and decree organizing the District issued by the Larimer County District Court as required by law is recorded with the Larimer County Clerk and Recorder. External Financial Advisor: means a consultant that: (1) is qualified to advise Colorado governmental entities on matters relating to the issuance of securities by Colorado governmental entities including matters such as the pricing, sales and marketing of such securities and the procuring of bond ratings, credit enhancement and insurance in respect of such securities; (2) shall be an underwriter, investment banker, or individual listed as a public finance advisor in the Bond Buyer’s Municipal Market Place or, in the City’s sole discretion, other recognized publication as a provider of financial projections; and (3) is not an officer or employee of the District. Financial Plan: means the Financial Plan described in Section VI which describes (a) how the Interchange Project is to be financed; (b) how the Debt is expected to be incurred and either paid in the ordinary course or defeased; and (c) the estimated operating revenue derived from 1587.0003; 875074 3 property taxes or other revenue sources for the first budget year through the year in which all District Debt is expected to be paid in the ordinary course or defeased. Gallagher Adjustment: means, if, on or after January 1, 2018, there are changes in the method of calculating assessed valuation or any constitutionally mandated tax credit, cut or abatement, the Maximum Debt Service Mill Levy may be increased or decreased to reflect such changes, such increases and decreases to be determined by the Board in good faith (such determination to be binding and final) so that to the extent possible, the actual tax revenues generated by the applicable mill levy, as adjusted for changes occurring after January 1, 2018, are neither diminished nor enhanced as a result of such changes. For purposes of the foregoing, a change in the ratio of actual valuation shall be deemed to be a change in the method of calculating assessed valuation. Interchange: means the existing interchange at Interstate Highway 25 and Prospect Road. Interchange Project or Project: means the project to significantly modify and improve the Interchange, including the reconstruction of its ramps and bridge, and the reconstruction of Prospect Road to a configuration with four (4) through lanes, raised median, left turn lanes and pedestrian and bicycle facilities, with this work to include certain enhanced urban design elements. Maximum Debt Service Mill Levy: means the maximum mill levy the District is permitted to impose under this Service Plan for payment of Debt as set forth in Section VI.B. below. Maximum Debt Authorization: means the total Debt the District is permitted to issue as set forth in Section V.A.3. Operations and Maintenance Mill Levy: means the mill levy the District is permitted to impose for payment of operations as set forth in the Financial Plan. Property Owners: means, collectively, Fort Collins/I-25 Interchange Corner, LLC, a Colorado limited liability company, Gateway at Prospect Apartments, LLC, a Colorado limited liability company, Land Acquisition and Management, LLC, a Colorado limited liability company, representing a group of tenants in common, Paradigm Properties LLC, a California limited liability company, and Colorado State University Research Foundation, a Colorado non-profit corporation. Public Improvements: means the improvements related to the Interchange Project. Service Plan: means this service plan for the District approved by the City Council. Service Plan Amendment: means an amendment to the Service Plan approved by the City Council in accordance with applicable state law or as provided in this Service Plan. Special District Act or “Act”: means Article 1 of Title 32 of the Colorado Revised Statutes, as amended from time to time. State: means the State of Colorado. Vicinity Map: means the map of the regional area surrounding the Project. 1587.0003; 875074 4 III. BOUNDARIES The District Boundaries include approximately Four Hundred Seventy (470) acres. A legal description of the District Boundaries is attached as Exhibit A. A District Boundary Map is attached hereto as Exhibit B. And, a Vicinity Map is attached hereto as Exhibit C. IV. PROPOSED LAND USE AND ASSESSED VALUATION The District consists of approximately Four Hundred Seventy (470) acres of planned mixed-use land. The current assessed valuation of the District Boundaries is approximately Two Hundred Thousand Dollars ($200,000) and, at build out, is expected to be sufficient to reasonably discharge the Debt as contemplated in the Capital Pledge Agreement. Approval of this Service Plan by the City does not imply its approval of the development of a specific area within the District. V. DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES A. Powers of the District and Service Plan Amendment. The District shall have the power and authority to finance a portion of the costs of the Interchange Project from revenues lawfully received within the boundaries of the District as such power and authority is described in the Special District Act, and other applicable statutes, common law and the State Constitution, subject to the limitations set forth herein, and in accordance with the Capital Pledge Agreement. 1. Operations and Maintenance. The purpose of the District is to finance a portion of the costs of the Interchange Project in accordance with the terms and provisions of the Capital Pledge Agreement. The District may provide operation and maintenance services related to any Public Improvements in accordance with a subsequent intergovernmental agreement with the City. In addition, the District shall be authorized to impose the Operation and Maintenance Mill Levy to fund ordinary administrative or ministerial expenses, including but not limited to those expenses required to keep the District in compliance with all applicable local, state, and federal laws and regulations. 2. Inclusion and Exclusion Limitation. The District shall not include or exclude any property within the District Boundaries without the prior resolution approval of the City Council and in compliance with the Special District Act, and if so approved, shall not constitute a material modification of this Service Plan. 3. Maximum Debt Authorization. The District anticipates issuing approximately Ten Million Dollars ($10,000,000) (the “Maximum Debt Authorization”) in par value Debt, plus repayment costs as agreed to in the Capital Pledge Agreement, to pay a portion of such Interchange Project costs as required under the Capital Pledge Agreement. The District’s Maximum Debt Authorization shall not be exceeded under any circumstances. The District must seek resolution approval by the City Council before issuing any Debt in excess of the Maximum Debt Authorization. Such Council approval shall not constitute a material modification of this Service Plan so long as increases are reasonably related to the Interchange Project, the Binding 1587.0003; 875074 5 Agreement or the Capital Pledge Agreement. The District shall not issue any Debt other than the Capital Pledge Agreement. 4. Monies from Other Governmental Sources. The District shall not apply for or accept Conservation Trust Funds, Great Outdoors Colorado Funds, or other funds available from or through governmental or non-profit entities for which the City is eligible to apply for, except pursuant to an intergovernmental agreement with the City. This Section shall not apply to specific ownership taxes which shall be distributed to and a revenue source for the District without any limitation. 5. Consolidation Limitation. The District shall not file a request with any Court to consolidate with another Title 32 district without the prior resolution approval of the City Council and compliance with the Special District Act. 6. Eminent Domain Limitation. The District shall not exercise its statutory power of eminent domain without first obtaining resolution approval from the City Council. This restriction on the Eminent Domain power by the District is being exercised voluntarily and shall not be interpreted in any way as a limitation on the District’s sovereign powers and shall not negatively affect the District’s status as a political subdivision of the State of Colorado as allowed by the Special District Act. 7. Service Plan Amendment Requirement. The District shall be an independent unit of local government, separate and distinct from the City, and its activities are subject to review by the City only insofar as they may deviate in a material manner from the requirements of the Service Plan. Any action of the District which: (1) violates the limitations set forth in this Section V.A. or (2) violates the limitations set forth in Section VI. below, shall be deemed to be a material modification to this Service Plan unless otherwise agreed by the City as provided for in Section X of this Service Plan or unless otherwise expressly provided herein. All other departures from the provisions of this Service Plan shall be considered on a case-by-case basis as to whether such departures are a material modification, unless otherwise expressly provided herein. VI. FINANCIAL PLAN A. General. The District shall be authorized to provide for financing of the Public Improvements from its revenues pursuant to the Capital Pledge Agreement. The Capital Pledge Agreement for the District requires a Debt Service Mill Levy of no less than Seven and One Half (7.5) Mills and no greater than Ten (10) Mills, subject to the Gallagher Adjustment. The total Debt that the District shall be permitted to issue shall not exceed the Maximum Debt Authorization. Subject to the limitations contained herein, the District Debt evidenced by the Capital Pledge Agreement shall be payable in such year or years and in such amounts as required by the Capital Pledge Agreement. The Debt evidenced by the Capital Pledge Agreement may be payable from any and all legally available revenues of the District, including general ad valorem taxes to be imposed upon all taxable property within the District. The District may also rely upon various other revenue sources authorized by law and as provided in the Capital Pledge Agreement. 1587.0003; 875074 6 The Maximum Debt Authorization, Debt Service Mill Levy, Operations and Maintenance Mill Levy, and all other financial projections and estimates contained in this Service Plan are supported by the Financial Plan (Exhibit E) prepared by an External Financial Advisor, D.A. Davidson and Co. The Financial Plan is based on economic, political and industry conditions as they exist presently and reasonable projections and estimates of future conditions. Notwithstanding the foregoing, D.A. Davidson and Co. shall not be considered a financial advisor or municipal advisor with regard to any Debt issuance by the District. B. Maximum Debt Service Mill Levy. The Maximum Debt Service Mill Levy shall be the maximum mill levy the District is permitted to impose upon the taxable property within the District for payment of Debt and shall be Ten (10) Mills, subject to Gallagher Adjustment, which shall not be exceeded under any circumstances. C. Security for Debt. The District does not have the authority and shall not pledge any revenue or property of the City as security for the indebtedness set forth in this Service Plan. Approval of this Service Plan shall not be construed as a guarantee by the City of payment of the District’s obligations; nor shall anything in the Service Plan be construed so as to create any responsibility or liability on the part of the City in the event of default by the District in the payment of any such obligation or performance of any other obligation. F. TABOR Compliance. The District shall comply with the provisions of the Taxpayer’s Bill of Rights (“TABOR”), Article X, § 20 of the Colorado Constitution in conducting the election required in Section IV. H. In the discretion of the Board, the District may set up other qualifying entities to manage, fund, construct and operate facilities, services, and programs. To the extent allowed by law, any entity created by the District will remain under the control of the District’s Board. G. District’s Operating Costs. The estimated cost of legal services and administrative services, together with the estimated costs of the District’s organization and initial operations, are anticipated to be Two Hundred Thousand Dollars ($200,000), which will be eligible for reimbursement as provided for in the Capital Pledge Agreement. In addition to the capital costs of the Public Improvements, the District will require operating funds for administrative and regulatory compliance costs. It is anticipated that these costs will be funded through the imposition of an developer advances and/or the Operations and Maintenance Mill Levy, and shall be eligible for reimbursement by the City as provided for in the Capital Pledge Agreement. The first year’s operating budget is estimated to be Twenty Thousand Dollars ($20,000). 1587.0003; 875074 7 H. Election. The District will call an election on the questions of organizing the District, electing the initial Board, and setting in place as required by TABOR the tax, debt and other financial authorizations and obligations contemplated in the Capital Pledge Agreement. The election will be conducted as required by law. VII. ANNUAL REPORT A. General. The District shall be responsible for submitting an annual report with the City’s clerk not later than September 1st of each year for the year ending the preceding December 31 following the year of the District Organization Date. The City may, in its sole discretion, waive this requirement in whole or in part. The District shall also submit all reports required pursuant to the Capital Pledge Agreement. B. Reporting of Significant Events. Unless waived by the City, the annual report shall include the following: 1. A narrative summary of the progress of the District in implementing their service plan for the report year; 2. Except when exemption from audit has been granted for the report year under the Local Government Audit Law, the audited financial statements of the District for the report year including a statement of financial condition (i.e., balance sheet) as of December 31 of the report year and the statement of operations (i.e., revenues and expenditures) for the report year; and 3. Any other information deemed relevant by the City Council or deemed reasonably necessary by the City’s manager and communicated in a timely manner to the District. In the event the annual report is not timely received by the City’s clerk or is not fully responsive, notice of such default may be given to the Board of such District, at its last known address. The failure of the District to file the annual report within Forty-Five (45) days of the mailing of such default notice by the City’s clerk may constitute a material modification, at the discretion of the City. VIII. DISSOLUTION Upon payment of all outstanding obligations under the Capital Pledge Agreement, and upon prior appropriation for all related dissolution costs and any other outstanding obligations of the District, the District agree to file a petition in the Larimer County District Court for dissolution, pursuant to the applicable State statutes. In no event shall dissolution occur until the District has provided for the payment or discharge of all of their outstanding indebtedness and other financial obligations as required pursuant to State statutes, including operation and maintenance activities. 1587.0003; 875074 8 IX. PROPOSED AND EXISTING INTERGOVERNMENTAL AGREEMENTS AND EXTRATERRITORIAL SERVICE AGREEMENTS All intergovernmental agreements must be for purposes, facilities, services or agreements lawfully authorized to be provided by the District, pursuant to the State Constitution, Article XIV, Section 18(2)(a) and Sections 29-1-201, et seq., C.R.S. To the extent practicable, the District may enter into additional intergovernmental and private agreements to better ensure long-term provision of the Public Improvements identified herein or for other lawful purposes of the District. Agreements may also be executed with property owner associations and other service providers. The District shall approve the Capital Pledge Agreement at the District’s first meeting after the District Organization Date; provided that the Capital Pledge Agreement may be revised by the City and the District to include such additional details and requirements therein as are deemed necessary by the parties. Failure by the District to execute the Capital Pledge Agreement as required herein shall constitute a material modification hereunder. The Capital Pledge Agreement may be amended from time to time by the City and the District, provided that any such amendment shall be in compliance with the provisions of this Service Plan. No other agreements are required, or known at the time of formation of the District to likely be required, to fulfill the purposes of the District. Execution of intergovernmental agreements or agreements for extraterritorial services by the District that are not described in this Service Plan and which are likely to cause a substantial increase in the District’s budgets shall require the prior approval of the City Council, which approval shall not constitute a material modification hereof. X. MATERIAL MODIFICATIONS Material modifications to this Service Plan may be made only in accordance with Section 32-1-207, C.R.S. No modification shall be required for an action of the District which does not materially depart from the provisions of this Service Plan. Departures from the Service Plan that constitute a material modification include without limitation: 1. Actions or failures to act that create material financial risk or burden for the City; 2. Performance of a service or function or acquisition of a major facility that is not closely related to a service, function or facility authorized in the Service Plan; 3. Failure to perform a service or function or acquire a facility required by the Service Plan; 4. Failure by the District to execute and deliver the Capital Pledge Agreement; and 5. Failure to comply with the limitations set forth in Section V.A. or Section VI of this Service Plan. 1587.0003; 875074 9 Actions that are not to be considered material modifications include without limitation changes in quantities of facilities or equipment, immaterial cost differences, and actions expressly authorized in the Service Plan. XI. SANCTIONS Should the District undertake any act without obtaining prior City Council resolution approval as required in this Service Plan or that constitutes a material modification to this Service Plan as provided herein or under the Special District Act, the City may impose one (1) or more of the following sanctions, as it deems appropriate: 1. Exercise any applicable remedy under the Act; 2. Withhold the issuance of any permit, authorization, acceptance or other administrative approval, or withhold any cooperation, necessary for the District’s development, construction or operation of improvements, or the provisions of services as contemplated under this Service Plan; 3. Exercise any legal remedy as provided in the Capital Pledge Agreement or in any other intergovernmental agreement with the City under which the District is in default; or 4. Exercise any other legal remedy at law or in equity, including seeking specific performance, mandamus or injunctive relief against the District, to ensure the District’s compliance with this Service Plan and applicable law. XII. CONCLUSION It is submitted that this Service Plan for the District, as required by Section 32-1-203(2), establishes that: 1. There is sufficient existing and projected need for organized service in the area to be serviced by the District; 2. The existing service in the area to be served by the District is inadequate for present and projected needs; 3. The District is capable of providing economical and sufficient service to the area within their proposed boundaries; and 4. The area to be included in the District does have, and will have, the financial ability to discharge the proposed indebtedness on a reasonable basis. 1587.0003; 875074 10 XIII. RESOLUTION OF APPROVAL The District agrees to incorporate the City Council’s resolution of approval, including any conditions on any such approval, into the Service Plan presented to the District Court for and in Larimer County, Colorado. EXHIBIT A I-25/Prospect Interchange Metropolitan District Legal Description Page 1 of 5 FORT COLLINS: 301 North Howes Street, Suite 100, 80521 | 970.221.4158 GREELEY: 820 8th Street, 80631 | 970.395.9880 | WEB: www.northernengineering.com DESCRIPTION: I-25/PROSPECT INTERCHANGE METROPOLITAN DISTRICT BOUNDARIES Tracts of land located in Sections 15,16, 21, and 22, Township 7 North, Range 68 West of the Sixth Principal Meridian, City of Fort Collins, County of Larimer, State of Colorado, being more particularly described as follows: Considering the West line of the Southeast Quarter of said Section 16 as bearing North 00° 11’ 16” East, and with all bearing contained herein relative thereto: Commencing at the South Quarter Corner of said Section 16; thence along the West line of the Southeast Quarter, North 00° 11’ 16” East, 360.01 feet to the Northwest corner of Lot 1, Block 1, Boxelder Estates Second Filing to POINT OF BEGINNING 1; thence along West line of the Southeast Quarter, North 00° 11' 16" East, 736.49 feet to the Northeast corner of a parcel of land as described at Reception No. 95076406, Larimer County Clerk and Recorder; thence, North 88° 20' 33" West, 315.26 feet to the Southeast corner of a parcel of land as described at Reception No. 20140007506, Larimer County Clerk and Recorder; thence along the East line of said parcel, North 25° 21' 13" West, 264.37 feet to the Southeast corner of a parcel of land described at Reception No. 93054775, Larimer County Clerk and Recorder; thence along said parcel the following 3 courses and distance: North 00° 12' 15" East, 1649.54 feet; thence, South 89° 47' 45" East, 200.00 feet; thence, North 00° 12' 15" East, 216.34 feet to a point on the South line of a parcel of land described at Reception No. 133800200, Larimer County Clerk and Recorder; thence along said South line, South 83° 28' 53" East, 232.09 feet to the Southeast corner of said parcel, said point being on the East line of Sunrise Estates extended; thence along said East line, North 00° 08' 06" East, 1117.52 feet to a point on the South line of Crossroads East Business Center; thence along said South line the following 5 courses and distance: South 25° 46' 37" East, 448.11 feet; thence, South 48° 55' 44" East, 1510.22 feet; thence, South 24° 21' 14" East, 195.19 feet; thence, South 58° 04' 14" East, 132.96 feet to the Southeast corner of said Crossroads East Business Center; thence along the East line of said Crossroads East Business Center, North 00° 11' 16" East, 33.04 feet to a point on the South line of Smithfield Subdivision; thence along said South line the following 4 courses and distance: South 65° 21' 37" East, 353.30 feet; thence, South 79° 21' 37" East, 300.00 feet; thence, North 57° 08' 23" East, 197.00 feet; thence, North 69° 08' 23" East, 141.86 feet to a point on the West line of Interstate Highway 25; thence along said West line the following 2 courses and distances: South 00° 11' 10" West, 601.01 feet; thence, South 01° 58' 22" West, 408.31 feet to the North line of Interstate Land PUD First Filing; thence along said Interstate Land PUD First Filing the following 2 courses and distances: North 76° 26' 25" West, 300.61 feet; thence, South 11° 47' 57" West, 629.05 feet to the West line of Interstate Highway 25 Frontage Road; thence along said Interstate Highway 25 Frontage Road the following 6 courses and distances: South 85° 36' 15" West, 289.72 feet; thence, South 82° 01' 25" West, 157.09 feet; thence along a curve concave to the southeast having a central angle of 62° 57' 26" with a radius of 449.26 feet, an arc length of 493.65 feet Page 2 of 5 and the chord of which bears South 43° 37' 30" West, 469.19 feet; thence, South 05° 13' 35" West, 157.09 feet; thence South 01° 38' 45" West, 455.56 feet to Point A; thence, South 46° 38' 49" West, 102.54 feet to the North right-of-way line of East Prospect Road; thence along said North line, North 88° 21' 30" West, 222.35 feet to the East line of Lot 3, Block 1, Boxelder Estates Second Filing; thence along the East, North and West lines of said Lot 3 the following 3 courses and distances: North 01° 38' 10" East, 242.53 feet; thence, North 88° 21' 50" West, 290.40 feet; thence, South 01° 38' 10" West, 242.50 feet to the North right-of-way line of East Prospect Road; thence along said North line, North 88° 21' 30" West, 516.42 feet to the East line of Lot 1, Block 1, Boxelder Estates Second Filing; thence along said East line, North 00° 11' 10" East, 302.55 feet to the North line of said Lot 1; thence along said North line, North 88° 21' 50" West, 120.13 feet to POINT OF BEGINNING 1, containing 6,777,385 square feet or 155.59 acres, more or less. AND Commencing at aforementioned Point A; thence South 88° 21’ 08” East, 79.99 feet to POINT OF BEGINNING 2; thence, North 01° 38' 45" East, 455.57 feet; thence, North 05° 03' 18" East, 142.46 feet; thence along a curve concave to the southeast having a central angle of 62° 57' 26" with a radius of 369.26 feet, an arc length of 405.75 feet and the chord of which bears North 43° 37' 30" East, 385.64 feet; thence, North 82° 11' 42" East, 142.46 feet; thence, North 85° 36' 05" East, 289.72 feet; thence, North 82° 01' 25" East, 157.09 feet; thence along a curve concave to the northwest having a central angle of 28° 04' 38" with a radius of 449.26 feet, an arc length of 220.16 feet and the chord of which bears North 61° 03' 55" East, 217.96 feet; thence, South 89° 48' 10" East, 79.52 feet; thence, South 00° 11' 10" West, 379.24 feet; thence, South 10° 33' 17" West, 201.18 feet; thence, South 26° 47' 14" West, 560.45 feet; thence, South 61° 09' 08" West, 99.88 feet; thence, North 88° 18' 07" West, 203.23 feet; thence, North 00° 12' 05" East, 158.22 feet; thence North 88° 21' 25" West, 410.00 feet; thence, South 00° 12' 05" West, 199.99 feet; thence, North 88° 21' 25" West, 59.24 feet; thence, North 43° 21' 11" West, 141.39 feet to POINT OF BEGINNING 2, containing 939,998 square feet or 21.58 acres, more or less. Together with a Tract of land located in the Southwest Quarter of Section 15, Township 7 North, Range 68 West of the Sixth Principal Meridian, City of Fort Collins, County of Larimer, State of Colorado, being more particularly described as follows: Considering the North line of the Southwest Quarter of said Section 15 as bearing South 89° 38’ 43” East, and with all bearings contained herein relative thereto: Commencing at the West Quarter Corner of said Section 15; thence along the North line of the Southwest Quarter, South 89° 38’ 43” East, 45.00 feet to a point on the East right-of-way line of the Southeast Frontage Road of Interstate Highway 25, said point being POINT OF BEGINNING 1; thence continuing along the North line of the Southwest Quarter of Section 15, South 89° 38' 43" East, 2598.20 feet to the Center Corner of said Section15; thence along the North-South Section line of Section 15, South 00° 05' 39" West, 1331.29 feet to the Center-South Sixteenth Corner of Section 15, also being a point on the North line of that Parcel of land as described at Reception No. 99062749, Larimer County Clerk and Recorder; thence along the North and West lines of said Parcel the following 2 courses and distances: North 89° 49' 50" West, 637.70 feet; thence, South 00° 00' 36" West, 804.25 feet to a point on the North line of that parcel of land described at Book 1531 Page 759, Larimer County Clerk and Recorder; thence along said North line the following 5 courses and distances: thence, North 54° 58' 16" West, 474.72 feet; thence, North 76° 19' 16" West, 163.85 feet; thence, North 84° 59' 16" West, 548.82 feet; thence, North 67° 52' 16" West, Page 3 of 5 88.12 feet; thence, North 54° 48' 16" West, 949.54 feet to the Easterly right-of-way line of the Southeast Frontage Road of Interstate Highway 25; thence along said Easterly right-of-way line the following 2 courses and distances: North 00° 11' 39" East, 1151.18 feet; thence, North 09° 26' 43" West, 59.72 feet to POINT OF BEGINNING 1, containing 4,203,912 square feet or 96.51 acres, more or less. AND Commencing at the West Quarter Corner of said Section 15; thence along the North line of the Southwest Quarter, South 89° 38’ 43” East, 2,643.20 feet; thence, South 00° 05’ 39” West, 1331.29 feet; thence, North 89° 49’ 50” West, 637.70 feet; thence, South 00° 00’ 36” West, 804.25 feet; thence, South 00° 00’ 36” West, 61.05 feet to POINT OF BEGINNING 2; thence, South 00° 00' 36" West, 438.93 feet to a point on the North right-of-way line of East Prospect Road; thence, South 00° 00' 36" West, 30.00 feet to a point on the South line of the Southwest Quarter of Section 15; thence along said South line, North 89° 59' 24" West, 1181.93 feet; thence, North 00° 00' 36" East, 30.25 feet to a point on the North right-of-way line of East Prospect Road, said point also being on the Easterly right-of-way line of the Southeast Frontage Road of Interstate Highway 25; thence along said Easterly right-of-way line the following 7 courses and distances: North 65° 50' 44" West, 112.37 feet; thence, South 89° 54' 52" West, 299.87 feet; thence, North 57° 21' 33" West, 106.29 feet; thence, North 26° 23' 32" West, 458.81 feet; thence, North 11° 18' 02" West, 200.00 feet; thence, North 03° 14' 53" West, 294.32 feet; thence, North 00° 10' 38" East, 360.36 feet to a point on the South line of that parcel of land described at Book 1531 Page 759, Larimer County Clerk and Recorder; thence along said South line the following 5 courses and distances: South 54° 48' 16" East, 895.99 feet; thence, South 67° 52' 16" East, 101.38 feet; thence, South 84° 59' 16" East, 552.56 feet; thence South 76° 19' 16" East, 150.63 feet; thence, South 54° 58' 16" East, 500.33 feet to POINT OF BEGINNING 2, containing 1,580,513 square feet or 36.28 acres, more or less. Together with a tract of land located in the Northwest Quarter of Section 22, Township 7 North, Range 68 West of the 6th P.M., City of Fort Collins, County of Larimer, State of Colorado being more particularly described as follows: Considering the North line of said Northwest Quarter as bearing South 89°59’00” East and with all bearings contained herein relative thereto: Beginning at a point on the North line of the said Northwest Quarter which bears South 89°59’00” East, 1199.65 feet from the Northwest corner of said Section 22; thence South 89°59’00” East 118.59 feet along said North line; thence South, 77.95 feet; thence South 89°59’00” East, 27.06 feet; thence South 15°16’00” West, 1035.05 feet along the centerline of the Sand Dike Ditch; thence West, 971.76 feet to a point on the Easterly Right-of-Way line of Interstate Highway No. 25; thence along said Easterly Right-of-Way North 06°13’00” East, 211.40 feet, and again North 18°21’30” East, 458.46 feet; thence South 89°59’00” East, 810.90 feet; thence North 15°36’00” East, 447.99 feet to the POINT OF BEGINNING, containing 441,544 square feet or 10.137 acres, more or less, excepting therefrom any portion conveyed to the Colorado State Department of Highways by instruments recorded May 23, 1947 in Book 833 at Page 522 and May 23, 1988 at Reception No. 88023148, and also except that portion conveyed in the Warranty Deed recorded January 3, 2005 at Reception No. 20050000154, County of Larimer, State of Colorado. Page 4 of 5 AND Considering the North line of said Northwest Quarter as bearing South 89°59’00” East and with all bearings contained herein relative thereto: Beginning at a point which bears North 89°59’00” West, 1446.03 feet from the North Quarter corner of said Section 22; thence North 89°59’00” West, 371.65 feet; thence South 00°01’00” West, 30.00 feet to a point on the Southeasterly Right-of-Way line of Interstate No 25; thence South 65°47’30” West, 109.70 feet along said Right-of-Way line; thence North 89°59’00” West, 300.00 feet along said Right-of-Way line; thence South 52°25’00” West, 70.10 feet along said Right-of-Way line; thence South 18°21’30” West, 330.54 feet along said Right-of-Way line; thence South 89°59’00” East, 810.90 feet; thence North 15°36’00” East, 447.99 feet to the POINT OF BEGINNING, containing 314,194 square feet or 7.213 acres, more or less. Together with a Tract of land located in Section 21, and Section 22, Township 7 North, Range 68 West of the Sixth Principal Meridian, City of Fort Collins, County of Larimer, State of Colorado, being more particularly described as follows: Considering the South line of the Southwest Quarter of said Section 21 as bearing South 89° 01’ 48” East, and with all bearing contained herein relative thereto: Commencing at the Northeast Corner of said Section 21; thence, North 88° 38’ 29” West, 1241.97 feet; thence, South 01° 21’ 31” West, 30.00 feet to the POINT OF BEGINNING, said point being the Northeast corner of an Easement granted to the State Department of Highways as recorded at Reception No. 88026808 of the Larimer County Clerk and Recorder; thence, South 44° 05’ 25” West along the Southeasterly line of said Easement, Recorded at 88026808, 37.44 feet to the Southerly line of a parcel of land described at Reception No. 20060041498 of the Larimer County Clerk and Recorder; thence, South 88° 38’ 29” East along said Southerly line and the Easterly prolongation thereof, 345.55 feet to the Westerly line of a parcel of land described within Exhibit “ A” at Book 1992, Page 280 of the Larimer County Clerk and Recorder; thence, South 61° 58’ 19” East along said Westerly line, 35.56 feet to the Northerly line of said parcel described within Book 1992, Page 280; thence, North 89° 50’ 02” East along said Northerly line, 13.83 feet to the Westerly line of a parcel of land described at Book 1234, Page 241 of the Larimer County Clerk and Recorder; thence, South 64° 24’ 59” East along said Westerly line, 4.65 feet to the Southerly line of a parcel of land described within said Book 1234, Page 241, said Southerly line being parallel with and 75.00 feet Southerly of, as measured at a right angle to the North line of the Northeast Quarter of said Section 21; thence, South 88° 38’ 29” East along said Southerly line, 300.00 feet to the Westerly Right-of-Way line of Interstate Highway No. I-25; thence, along the Westerly Right-of-Way lines of Interstate Highway No. I-25 the following 9 courses and distances: South 50° 23’ 59” East, 72.51 feet; thence, South 18° 02’ 31” East, 798.28 feet; thence, South 06° 22’ 28” East, 704.20 feet; thence, South 00° 05’ 56” East, 53.90 feet; thence along a curve concave to the east having a central angle of 06° 33’ 06” with a radius of 11583.00 feet, an arc length of 1324.50 feet and the chord of which bears South 03° 24’ 23” East, 1323.78 feet; thence, South 05° 48’ 32” West, 417.50 feet; thence along a curve concave to the east having a central angle of 03° 00’ 00” with a radius of 11680.00 feet, an arc length of 611.57 feet and the chord of which bears South 10° 09’ 58” East, 611.50 feet; thence, South 25° 42’ 58” East, 425.50 feet; thence, South 12° 55’ 58” East, 968.64 feet to the South line of the Southwest Quarter of said Section 22; thence, South 89° 43’ 29” West along the South line of the Southwest Quarter of said Section 22, 344.34 feet to the Southeast corner of said Section 21; thence, North Page 5 of 5 89° 01’ 48” West along the South line of the Southeast Quarter of said Section 22, 713.93 feet; thence parallel with and 20 feet Westerly of the centerline of an existing access road the following 15 courses and distances: North 30° 07’ 30” West, 653.11 feet; thence along a curve concave to the northeast having a central angle of 27° 35’ 32” with a radius of 424.29 feet, an arc length of 204.33 feet and the chord of which bears North 16° 19’ 44” West, 202.36 feet; thence, North 02° 31’ 58” West, 432.64 feet; thence, North 00° 56’ 51” West, 512.69 feet; thence, North 22° 22’ 44” West, 121.69 feet; thence, North 03° 04’ 28” West, 129.58 feet; thence along a curve concave to the southwest having a central angle of 42° 50’ 08” with a radius of 157.27 feet, an arc length of 117.58 feet and the chord of which bears North 24° 29’ 32” West, 114.86 feet; thence, North 45° 54’ 36” West, 71.28 feet; thence along a curve concave to the east having a central angle of 30° 41’ 12” with a radius of 330.34 feet, an arc length of 176.92 feet and the chord of which bears North 30° 34’ 00” West, 174.82 feet; thence, North 15° 13’ 24” West, 100.27 feet; thence along a curve concave to the southwest having a central angle of 20° 34’ 23” with a radius of 289.75 feet, an arc length of 104.04 feet and the chord of which bears North 25° 30’ 36” West, 103.48 feet; thence, North 35° 47’ 47 West, 144.89 feet; thence along a curve concave to the northeast having a central angle of 37° 10’ 11” with a radius of 364.63 feet, an arc length of 236.55 feet and the chord of which bears North 17° 12’ 42” West, 232.42 feet; thence, North 01° 22’ 24” East, 921.36 feet; thence along a curve concave to the southeast having a central angle of 17° 07’ 56” with a radius of 707.08 feet, an arc length of 211.43 feet and the chord of which bears North 09° 56’ 22” East, 210.64 feet; thence, North 89° 40’ 07” East, 6.45 feet to the Southerly prolongation of the Westerly line of said Easement, Recorded at Reception No. 88026808; thence, North 17° 24’ 16” East along said Southerly prolongation and also along the Westerly line of said Easement, Recorded at Reception No. 88026808, 673.89 feet; thence along the Westerly and Northerly lines of that Easement granted to the State Department of Highways at Reception No. 88026808 of the Larimer County Clerk and Recorder the following 5 courses and distances: thence along a curve concave to the east having a central angle of 40° 05’ 20” with a radius of 532.96 feet, an arc length of 372.90 feet and the chord of which bears North 02° 38’ 24” West, 365.34 feet; thence, North 22° 41’ 04” West, 110.41 feet; thence along a curve concave to the northeast having a central angle of 15° 37’ 22” with a radius of 612.96 feet, an arc length of 167.14 feet and the chord of which bears North 14° 52’ 23” West, 166.62 feet; thence, North 45° 28’ 31” West, 146.18 feet to a line being 30.00 feet Southerly, as measured at a right angle, of the North line of the Northeast Quarter of said Section 21; thence, South 88° 38’ 29” East along a line parallel with and 30.00 feet Southerly of, as measured at a right angle to the North line of the Northeast Quarter of said Section 21, 280.00 feet to the POINT OF BEGINNING, containing 6,204,458 square feet or 142.435 acres more or less. The above described Tracts of land contain 20,462,004 square feet or 469.743 acres more or less and is subject to all easements and rights-of-way now on record or existing. November 1, 2018 CNS D:\Projects\102-002\Metro District\Overlay District\102-002_Overall Boundary - Overall.docx 40780828.v1 EXHIBIT B I-25/Prospect Interchange Metropolitan District Boundary Map 40780828.v1 EXHIBIT C I-25/Prospect Interchange Metropolitan District Vicinity Map 40780828.v1 EXHIBIT D I-25/Prospect Interchange Metropolitan District Capital Pledge Agreement Costs. application of the ROW Credit, the Interchange District shall provide the City and the Owners with the revised Payment Schedule reflecting such ROW Credit. G) The obligation of the Interchange District to pay the Owners' Share as provided herein shall constitute a special and limited obligation of the Interchange District, payable solely from and to the extent of the Pledged Revenues. The Pledged Revenues are hereby pledged by the Interchange District to the City for the payment of the Owners' Share. The Interchange District hereby elects to apply all of the provisions of the Supplemental Act to this Capital Pledge Agreement and the payment obligations hereunder. (k) In no event shall the total or annual obligations of the Interchange District hereunder exceed the maximum amounts permitted under its electoral authority and applicable law. Section 2.04. Imposition of Project Mill Levy; Eligible Operational Costs; Formation (a) In order to fund a portion of the Owners' Share and to pay for Eligible Operational Costs and Formation Costs, the Interchange District agrees to levy on all of the taxable property in such Interchange District, in addition to all other taxes, direct annual taxes for collection in each of the years when this Agreement is in effect, in the amount of the Project Mill Levy. The Pledged Project Mill Levy Revenues shall be included in the Pledged Revenues and applied as provided herein. (b) The Interchange District shall provide the City with an itemization of the Formation Costs incurred by the Interchange District that are to be paid or reimbursed from revenues generated from the Project Mill Levy, in an amount not exceeding$200,000. The City shall have the right to review the Formation Costs to confirm that such costs, fees and expenses qualify as Formation Costs for purposes of this Agreement. Upon receipt of the net revenues generated from the Project Mill Levy, and after the City's confirmation of the Formation Costs, the Interchange District may apply such revenues to the payment or reimbursement of all or any portion of the Formation Costs until such Formation Costs are paid or reimbursed in full. The Interchange District acknowledges and agrees that it shall not receive a credit against the Owners' Share to the extent that it applies revenues from the Project Mill Levy to the payment of all or any portion of the Formation Costs. ( c) The Interchange District shall provide the City with a copy of its proposed budget for the subsequent fiscal year setting forth the amount of administrative and operating expenses budgeted for the Interchange District for the subsequent fiscal year. If a budget amendment is required due to circumstances that could not have been reasonably foreseen at the time the original budget was adopted, the Interchange District shall provide the City with a copy of the proposed budget amendment setting forth the amount of additional administrative and operating expenses anticipated for the applicable year, and the reason for the increase. The City shall have the right to review the budget and any subsequent budget amendment to confirm that the amount so budgeted for administrative and operating expenses is reasonable, and that any amendment to the budget was the result 5 EXHIBIT E I-25/Prospect Interchange Metropolitan District Financial Plan 1 2050 I-25 / PROSPECT INTERCHAGE METROPOLITAN DISTRICT (Residential & Commercial) Development Projection at 7.500 (target) Residential Mills +7.500 (target) Commercial Mills for Debt Service (SERVICE PLAN) -- 02/28/2018 2049 Total District District District Total District District District Assessed D/S Mill Levy D/S Mill Levy S.O. Taxes Assessed D/S Mill Levy D/S Mill Levy S.O. Taxes Total Value [7.500 Target] Collections Collected Value [7.500 Target] Collections Collected Sys. Dev. Fees YEAR (Residential) [10.000 Cap] @ 98% @ 6% (Commercial) [10.000 Cap] @ 98% @ 6% Collections 2017 $0 2018 0 2019 $0 7.500 0 0 $0 7.500 0 0 0 2020 0 7.500 0 0 0 7.500 0 0 218,480 2021 2,530,540 7.500 18,599 1,116 1,126,560 7.500 8,280 497 374,420 2022 9,067,082 7.500 66,643 3,999 12,644,001 7.500 92,933 5,576 435,858 2023 14,815,635 7.500 108,895 6,534 23,616,390 7.500 173,580 10,415 298,276 2024 18,327,677 7.500 134,708 8,083 47,480,876 7.500 348,984 20,939 437,948 2025 18,675,677 7.500 137,266 8,236 69,499,201 7.500 510,819 30,649 221,406 2026 20,400,342 7.500 149,943 8,997 99,135,992 7.500 728,650 43,719 190,206 2027 20,400,342 7.500 149,943 8,997 120,892,173 7.500 888,557 53,313 126,808 2028 21,624,363 7.500 158,939 9,536 140,866,605 7.500 1,035,370 62,122 80,008 2029 21,624,363 7.500 158,939 9,536 152,529,317 7.500 1,121,090 67,265 84,808 2030 22,921,824 7.500 168,475 10,109 170,220,982 7.500 1,251,124 75,067 80,308 2031 22,921,824 7.500 168,475 10,109 179,923,830 7.500 1,322,440 79,346 92,308 2032 24,297,134 7.500 178,584 10,715 200,281,928 7.500 1,472,072 88,324 56,460 2033 24,297,134 7.500 178,584 10,715 212,035,854 7.500 1,558,464 93,508 14,400 2034 25,754,962 7.500 189,299 11,358 228,911,997 7.500 1,682,503 100,950 14,400 2035 25,754,962 7.500 189,299 11,358 232,424,713 7.500 1,708,322 102,499 14,400 2036 27,300,260 7.500 200,657 12,039 249,937,506 7.500 1,837,041 110,222 12,000 2037 27,300,260 7.500 200,657 12,039 253,548,636 7.500 1,863,582 111,815 12,000 2038 28,938,275 7.500 212,696 12,762 271,854,940 7.500 1,998,134 119,888 4,800 2039 28,938,275 7.500 212,696 12,762 274,893,005 7.500 2,020,464 121,228 0 __________ __________ __________ __________ __________ 2,983,298 178,998 21,622,410 1,297,345 2,769,292 2/28/2018 A I-25PIMD Fin Plan 18 R+C NR LF Fin Plan SP 20yrs Prepared by D.A.Davidson & Co. Draft: For discussion purposes only. 1 2050 2049 YEAR 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 Annual Sales Annual Taxable Add-on PIF Total Sales* @ 0.75% Available Net Available infl. @ 1.00% Revenue for Debt Svc $0 0 000$0 0000 5,260,756 39,456 257,935 257,935 14,706,661 110,300 513,212 513,212 36,707,840 275,309 880,318 880,318 54,316,805 407,376 1,005,076 1,005,076 76,167,980 571,260 1,521,923 1,521,923 91,350,847 685,131 1,593,508 1,593,508 101,393,347 760,450 1,881,964 1,881,964 108,835,215 816,264 2,043,882 2,043,882 112,705,765 845,293 2,191,268 2,191,268 116,642,842 874,821 2,316,460 2,316,460 120,647,391 904,855 2,489,939 2,489,939 124,720,366 935,403 2,608,081 2,608,081 128,862,736 966,471 2,772,626 2,772,626 130,151,363 976,135 2,831,806 2,831,806 131,452,877 985,897 2,984,407 2,984,407 132,767,406 995,756 3,021,633 3,021,633 134,095,080 1,005,713 3,177,673 3,177,673 135,436,031 1,015,770 3,215,864 3,215,864 136,790,391 1,025,928 3,374,208 3,374,208 138,158,295 1,036,187 3,403,337 3,403,337 __________ __________ __________ _________ 3,645,204,689 15,233,775 44,085,118 44,085,118 [*] Including Lodg. 2/28/2018 A I-25PIMD Fin Plan 18 R+C NR LF Fin Plan SP 20yrs Prepared by D.A.Davidson & Co. Draft: For discussion purposes only. I-25 / PROSPECT INTERCHAGE METROPOLITAN DISTRICT (Residential) Development Summary Development Projection -- Buildout Plan (updated 2/22/18) Residential Development Product Type Apts (NW) TH (NW) Condo (NW) SFD - Standard (NW) SFD - Premier (NW) Assissted Living (NE) Base $ ('18) $215,000 $375,000 $385,000 $475,000 $575,000 $200,000 Res'l Totals 2017 - - - - - - - 2018 - - - - - - - 2019 - - - - - - - 2020 138 29 29 47 23 - 266 2021 138 29 29 47 23 - 266 2022 - 29 28 46 21 - 124 2023 - - - - - - - 2024 - - - - - 60 60 2025 - - - - - - - 2026 - - - - - - - 2027 - - - - - - - 2028 - - - - - - - 2029 - - - - - - - 2030 - - - - - - - 2031 - - - - - - - 2032 - - - - - - - 2033 - - - - - - - 2034 - - - - - - - 2035 - - - - - - - 2036 - - - - - - - 2037 - - - - - - - 2038 - - - - - - - 2039 - - - - - - - 2040 - - - - - - - 276 87 86 140 67 60 716 MV @ Full Buildout $59,340,000 $32,625,000 $33,110,000 $66,500,000 $38,525,000 $12,000,000 $242,100,000 (base prices;un-infl.) notes: Platted/Dev Lots = 10% MV; one-yr prior Base MV $ inflated 2% per annum Res'l Fac. Fees: $325 (SFD), $300 (MF,TH, Condo, Asst'd Living) 2/22/2018 A I-25PIMD Fin Plan 18 R Dev Summ Prepared by D.A. Davidson & Co. 4 I-25 / PROSPECT INTERCHAGE METROPOLITAN DISTRICT (Commercial) Development Summary Development Projection -- Buildout Plan (updated 2/22/18) Commercial Development Product Type Retail (NW) Office (NW) Restaurant (NW) Emp. Office/Research (NW) Emp. Medical/Wellness (NW) Gas / Convenience (SW) Pad Retail (SW) Office (SW) Industrial (SW) Base $ ('18) $250/sf $200/sf $300/sf $200/sf $250/sf $165/sf $250/sf $200/sf $150/sf Sales $ ('18) $250/sf $0/sf $250/sf $0/sf $0/sf $250/sf $250/sf $0/sf $0/sf Taxable % 70% 70% 70% 70% 2017 - - - - - - - - - 2018 - - - - - - - - - 2019 - - - - - - - - - 2020 28,151 - 7,678 32,235 32,235 - - - - 2021 28,151 - 7,678 32,235 32,235 6,000 12,000 20,000 - 2022 28,151 - 7,678 32,235 32,235 - 20,000 30,000 - 2023 28,151 - 7,678 32,235 32,235 - 20,000 30,000 - 2024 28,149 12,796 7,675 32,232 32,232 4,000 30,000 60,000 - 2025 - - - - - - 20,000 70,000 - 2026 - - - - - - 10,000 70,000 - 2027 - - - - - - 10,000 80,000 - 2028 - - - - - - - 40,000 - 2029 - - - - - - - 40,000 20,000 2030 - - - - - - - 10,000 50,000 2031 - - - - - - - 10,000 100,000 2032 - - - - - - - - 50,000 2033 - - - - - - - - 60,000 2034 - - - - - - - - 60,000 2035 - - - - - - - - 60,000 2036 - - - - - - - - 50,000 2037 - - - - - - - - 50,000 2038 - - - - - - - - 20,000 2039 - - - - - - - - - 2040 - - - - - - - - - 140,753 12,796 38,387 161,172 161,172 10,000 122,000 460,000 520,000 MV @ Full Buildout $35,188,250 $2,559,200 $11,516,100 $32,234,400 $40,293,000 $1,650,000 $30,500,000 $92,000,000 $78,000,000 (base prices;un-infl.) Sales @ Full Buildout $24,631,775 $0 $6,717,725 $0 $0 $1,750,000 $21,350,000 $0 $0 (base prices;un-infl.) notes: Platted/Dev Lots = 10% MV; one-yr prior Base MV $ inflated 2% per annum Comm'l Fac Fees: $3.12/SF (Retial/Rest.), $18.45/SF (Gas), $0.39/SF (Office/Med.), $0.24/SF (Ind'l), $300/Rm (Hotel) 2/22/2018 A I-25PIMD Fin Plan 18 C Dev Summ Prepared by D.A. Davidson & Co. 6 Product Type Base $ ('18) Sales $ ('18) Taxable % 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 MV @ Full Buildout (base prices;un-infl.) Sales @ Full Buildout (base prices;un-infl.) I-25 / PROSPECT INTERCHAGE METROPOLITAN DISTRICT (Commercial) Development Summary Development Projection -- Buildout Plan (updated 2/22/18) Retail (NE) Gas / Convenience (NE) Industrial / Employment (NE) Retial (SE) Hotel (NW) Hotel (SW) Hotel (NE) Hotel (SE) $250/sf $165/sf $150/sf $250/sf $125,000/Rm $125,000/Rm $125,000/Rm $125,000/Rm $250/sf $250/sf $0/sf $250/sf $90 ADR $90 ADR $90 ADR $90 ADR 70% 70% 70% 100% 100% 100% 100% Comm'l Totals* Hotel Rooms - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 120 - - - 100,299 120 - - - - - - - - 138,299 - 21,570 5,350 83,115 - - 150 - - 260,334 150 21,570 - 83,115 - - - 120 - 254,984 120 21,570 - 83,115 - 120 - - - 311,769 120 21,570 - 83,115 14,250 - - 120 100 208,935 220 21,570 - 83,115 14,250 - - - - 198,935 - - - 83,115 14,250 - - - - 187,365 - - - 83,115 14,250 - - - - 137,365 - - - 83,115 14,250 - - - - 157,365 - - - 83,115 14,250 - - - - 157,365 - - - 83,115 14,250 - - - - 207,365 - -1- RESOLUTION 2018-126 OF THE CITY COUNCIL OF THE CITY OF FORT COLLINS APPROVING THE CORRECTED DISTRICT BOUNDARY LEGAL DESCRIPTIONS OF GATEWAY AT PROSPECT METROPOLITAN DISTRICT NOS. 1-7 AND APPROVING CORRESPONDING AMENDMENTS TO THE DISTRICT SERVICE PLAN WHEREAS, Title 32 of the Colorado Revised Statutes (“C.R.S.”) authorizes the formation of various kinds of governmental entities to finance and operate public services and infrastructure, including metropolitan districts; and WHEREAS, on March 6, 2018, the City Council adopted Resolution 2018-027 Approving the Consolidated Service Plan for the Gateway at Prospect Metropolitan District Nos. 1-7 (the “Service Plan”); and WHEREAS, the Service Plan includes legal descriptions of the boundaries of each of the Gateway at Prospect Metropolitan District Nos. 1-7, as more particularly set forth in Exhibits “A-2,” “A-3,” “A-4,” “A-5,” “A-6,” “A-7” and “A-8” (“District Boundary Legal Descriptions”), as attached thereto; and WHEREAS, due to a surveyor’s error, the District Boundary Legal Descriptions are incorrect; and WHEREAS, the boundary maps in Exhibits “B-1,” “B-2,” “B-3” and “B-4” of the Service Plan accurately depict the intended boundaries of each of the Districts (the “Boundary Maps”); and WHEREAS, City Council wishes to correct the District Boundary Legal Descriptions to be consistent with the Boundary Maps in the updated Consolidated Service Plan for Gateway at Prospect Metropolitan District Nos. 1-7, attached hereto as Exhibit “A” and incorporated herein by this reference (“Updated Service Plan”); and WHEREAS, the City Council wishes to approve the Updated Service Plan solely for the purpose of correcting the District Boundary Legal Descriptions so they are consistent with the Boundary Maps and finds that this modification of the Service Plan is not a material modification. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT COLLINS, COLORADO, as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the City Council hereby approves and accepts the corrected District Boundary Legal Descriptions as set forth in the Updated Service Plan. -2- Section 3. That the City Council hereby approves the Updated Service Plan to correct only the District Boundary Legal Descriptions, and in all other respects all other provisions of the Updated Service Plan shall remain identical to those in the previously approved Service Plan. Section 4. That the City Council hereby directs the Gateway at Prospect Metropolitan District Nos. 1-7 (“Districts”) to file all requisite motions with the Larimer County District Court to correct the Order and Decree Organizing the Districts in accordance with the Updated Service Plan and consistent with this Resolution. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 18th day of December, A.D. 2018. _________________________________ Mayor ATTEST: _____________________________ City Clerk CONSOLIDATED SERVICE PLAN FOR GATEWAY AT PROSPECT METROPOLITAN DISTRICT NOS. 1-7 CITY OF FORT COLLINS, COLORADO Prepared by: White Bear Ankele Tanaka & Waldron, Professional Corporation 748 Whalers Way, Suite 210 Fort Collins, Colorado 80525 December 18, 2018 EXHIBIT A i TABLE OF CONTENTS I. INTRODUCTION .............................................................................................................. 1 A. Purpose and Intent................................................................................................... 1 B. Need for the Districts. ............................................................................................. 2 C. Objective of the City Regarding Districts’ Service Plan. ....................................... 2 II. DEFINITIONS .................................................................................................................... 3 III. BOUNDARIES ................................................................................................................... 6 IV. PROPOSED LAND USE AND ASSESSED VALUATION ............................................. 6 V. DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES ....... 7 A. Powers of the Districts and Service Plan Amendment. .......................................... 7 1. Operations and Maintenance....................................................................... 7 2. Development Standards. ............................................................................. 7 3. Privately Placed Debt Limitation. ............................................................... 7 4. Inclusion and Exclusion Limitation. ........................................................... 8 5. Maximum Debt Authorization. ................................................................... 8 6. Monies from Other Governmental Sources. ............................................... 8 7. Consolidation Limitation. ........................................................................... 8 8. Eminent Domain Limitation. ...................................................................... 8 9. Service Plan Amendment Requirement. ..................................................... 9 B. Infrastructure Preliminary Development Plan. ....................................................... 9 VI. FINANCIAL PLAN.......................................................................................................... 10 A. General. ................................................................................................................. 10 B. Maximum Voted Interest Rate and Maximum Underwriting Discount. .............. 11 C. Maximum Mill Levies. ......................................................................................... 11 D. Debt Issuance and Maturity. ................................................................................. 12 E. Security for Debt. .................................................................................................. 12 F. TABOR Compliance. ............................................................................................ 12 G. Districts’ Operating Costs. .................................................................................... 12 H. Elections. ............................................................................................................... 13 VII. ANNUAL REPORT ......................................................................................................... 13 A. General. ................................................................................................................. 13 B. Reporting of Significant Events. ........................................................................... 13 VIII. DISSOLUTION ................................................................................................................ 14 IX. PROPOSED AND EXISTING INTERGOVERNMENTAL AGREEMENTS AND EXTRATERRITORIAL SERVICE AGREEMENTS ..................................................... 14 X. MATERIAL MODIFICATIONS ..................................................................................... 14 1597.0003; 876246 ii XI. SANCTIONS .................................................................................................................... 15 XII. INTERGOVERNMENTAL AGREEMENT WITH CITY .............................................. 16 XIII. CONCLUSION ................................................................................................................. 16 XIV. RESOLUTION OF APPROVAL ..................................................................................... 16 1597.0003; 876246 iii LIST OF EXHIBITS EXHIBIT A-1 Legal Description of Project Area Boundaries EXHIBIT A-2 Legal Description of District No. 1 EXHIBIT A-3 Legal Description of District No. 2 EXHIBIT A-4 Legal Description of District No. 3 EXHIBIT A-5 Legal Description of District No. 4 EXHIBIT A-6 Legal Description of District No. 5 EXHIBIT A-7 Legal Description of District No. 6 EXHIBIT A-8 Legal Description of District No. 7 EXHIBIT B-1 Project Area Boundary Map EXHIBIT B-2 District No. 1 Boundary Map EXHIBIT B-3 District No. 2 Boundary Map EXHIBIT B-4 District Nos. 3-7 Boundary Map EXHIBIT B-5 District Nos. 1-7 Estimated Future Boundary Map EXHIBIT C Vicinity Map EXHIBIT D Infrastructure Preliminary Development Plan EXHIBIT E Financial Plan EXHIBIT F Intergovernmental Agreement 1 I. INTRODUCTION A. Purpose and Intent. The Districts, which are intended to be independent units of local government separate and distinct from the City, are governed by this Service Plan. Except as may otherwise be provided for by State or local law or this Service Plan, the Districts’ activities are subject to review by the City only insofar as they may deviate in a material manner from the requirements of this Service Plan. The Districts are needed to provide Public Improvements to the Project for the benefit of property owners within the Districts and other local development and will result in enhanced benefits to existing and future business owners and/or residents of the City. The primary purpose of the Districts will be to finance the construction of these Public Improvements. The Districts are being organized under a multiple-district structure. As the Project is anticipated to be built over an extended period of time, this will allow for a phased absorption of the Project and corresponding Public Improvements. Additionally, such structure assures proper coordination of the powers and authorities of the independent Districts and avoids confusion regarding the separate, but coordinated, purposes of the Districts that could arise if separate service plans were used. Under such structure, District No. 7, as the service district, is responsible for managing the construction and operation of the facilities and improvements needed for the Project. District No. 1, District No. 2, District No. 3, District No. 4, District No. 5 and District No. 6, as the financing districts, are responsible for providing the funding and tax base needed to support the Financial Plan for capital improvements. The continued operation of District No. 7, as the service district which owns and operates the public facilities throughout the Project, and the continued operation of District No. 1, District No. 2, District No. 3, District No. 4, District No. 5 and District No. 6, as the financing districts that will generate the tax revenue sufficient to pay the costs of the capital improvements, creates several benefits. These benefits include, inter alia: (1) coordinated administration of construction and operation of Public Improvements, and delivery of those improvements in a timely manner; (2) maintenance of equitable mill levies and reasonable tax burdens on all areas of the Project through proper management of the financing and operation of the Public Improvements; and (3) assured compliance with state laws regarding taxation in a manner which permits the issuance of tax exempt Debt at the most favorable interest rates possible. Currently, development of the Project is anticipated to proceed in phases. Each phase will require the extension of public services and facilities. The multiple district structure will assure that the construction and operation of each phase is primarily administered by a single board of directors consistent with a long-term construction and operations program. Use of District No. 7 as the entity responsible for construction of each phase of the Public Improvements and for management of operations will facilitate a well-planned financing effort through all phases of construction and will assist in assuring coordinated extension of services. The multiple district structure will also help assure that Public Improvements will be provided when they are needed, and not sooner. Appropriate development agreements between District No. 7 and the Property Owners of the Project will allow the postponement of financing for improvements which may not be needed until well into the future, thereby helping property owners avoid the long-term carrying costs associated with financing improvements too early. This, in turn, 1597.0003; 876246 2 allows the full costs of Public Improvements to be allocated over the full build-out of the Project and helps avoid disproportionate cost burdens being imposed on the early phases of development. Allocation of the responsibility for paying Debt for Public Improvements and capital costs will be managed through development of a unified financing plan for those improvements and through development of an integrated operating plan for long-term operations and maintenance. Use of District No. 7 as the service district, to manage these functions, will help assure that the phasing of the Public Improvements will occur as logical and necessary as to conform to development plans approved by the City and will help maintain reasonably uniform mill levies and fee structures throughout the coordinated construction, installation, acquisition, financing and operation of Public Improvements throughout the Project. Intergovernmental agreements among the Districts will assure that the roles and responsibilities of each District are clear in this coordinated development and financing plan. B. Need for the Districts. There are currently no other governmental entities, including the City, located in the immediate vicinity of the Districts that, at this time, can financially undertake the planning, design, acquisition, construction, installation, relocation, redevelopment, and financing of the Public Improvements needed for the Project. Formation of the Districts is therefore necessary in order for the Public Improvements required for the Project to be provided in the most economic manner possible. C. Objective of the City Regarding Districts’ Service Plan. The City’s objective in approving the Service Plan for the Districts is to authorize the Districts to provide for the planning, design, acquisition, construction, installation, relocation and redevelopment of the Public Improvements from the proceeds of Debt to be issued by the Districts. The Districts project to issue a total of One Hundred and Twenty Five Million Dollars ($125,000,000). All Debt is projected to be repaid by the imposition of a Debt Service Mill Levy not to exceed Eighty (80) Mills minus the Overlay District Debt Service Mill Levy, which is in turn not to exceed Ten (10) Mills, subject to adjustment as set forth in the service plan of the Overlay District. The combined Debt Service Mill Levy, Operations and Maintenance Mill Levy and Overlay District Debt Service Mill Levy shall under no circumstances exceed the Maximum Mill Levy described in Section VI.C. In no event shall the Debt Service Mill Levy exceed the Maximum Mill Levy as described in Section VI.C. herein. The City shall, under no circumstances, be responsible for the Debts of the Districts and the City’s approval of this Service Plan shall in no way be interpreted as an agreement, whether tacit or otherwise, to be financially responsible for the Debts of the Districts or the construction of Public Improvements. This Service Plan is intended to establish a limited purpose for the Districts and explicit financial constraints that are not to be violated under any circumstances. The primary purpose is to provide for the Public Improvements associated with the Project and regional improvements as necessary. Ongoing operational and maintenance activities are allowed as addressed in this Service Plan to the extent that the Districts have sufficiently demonstrated that such operations and maintenance functions are in the best interest of the City and the existing and future taxpayers of the Districts. As further detailed in Section VI.C. herein, the aggregate of the 1597.0003; 876246 3 Debt Service Mill Levy, Operations and Maintenance Mill Levy and Overlay District Debt Service Mill Levy shall not exceed the Maximum Mill Levy. It is the intent of the Districts to dissolve upon payment or defeasance of all Debt incurred or upon a court determination that adequate provision has been made for the payment of all Debt. However, if the Districts have authorized operation and maintenance functions under this Service Plan, or if by agreement with the City it is desired that the Districts shall continue to exist, then the Districts shall not dissolve but shall retain the power necessary to impose and collect taxes or fees to pay for costs associated with said operations and maintenance functions and/or to perform agreements with the City. The Districts shall be authorized to finance the Public Improvements that can be funded from Debt to be repaid from tax revenues collected from a mill levy which shall not exceed the Maximum Mill Levy and which shall not exceed the Maximum Debt Authorization and Maximum Debt Maturity Term. II. DEFINITIONS In this Service Plan, the following terms which appear in a capitalized format herein shall have the meanings indicated below, unless the context hereof clearly requires otherwise: Approved Development Plan: means a development plan or other process established by the City (including but not limited to approval of a final plat or PUD by the City Council) for identifying, among other things, Public Improvements necessary for facilitating development of property within the Service Area as approved by the City pursuant to the City Code and as amended pursuant to the City Code from time to time. Binding Agreement: means the Binding Agreement Pertaining to Development of Interstate Highway 25 and Prospect Road Interchange, by and among the City and the Property Owner, among others. Board or Boards: means the Board of Directors of any of the Districts, or the boards of directors of all of the Districts, in the aggregate. Bond, Bonds or Debt: means bonds, notes or other multiple fiscal year financial obligations for the payment of which a District has promised to impose an ad valorem property tax mill levy, and other legally available revenue. Such terms do not include intergovernmental agreements pledging the collection and payment of property taxes in connection with a service district and taxing district(s) structure, if applicable, and other contracts through which a District procures or provides services or tangible property. Capital Pledge Agreement: means the Capital Pledge Agreement between the City and the Overlay District implementing the terms and provisions of the Binding Agreement. City: means the City of Fort Collins, Colorado. Any provision in this Agreement requiring City Council approval shall be deemed to be exercised by City Council in its sole discretion. City Council: means the City Council of the City of Fort Collins, Colorado. 1597.0003; 876246 4 Debt Service Mill Levy: means the mill levy the Districts project to impose for payment of Debt as set forth in the Financial Plan and Section VI. below. District: means Gateway at Prospect Metropolitan District No. 1, Gateway at Prospect Metropolitan District No. 2, Gateway at Prospect Metropolitan District No. 3, Gateway at Prospect Metropolitan District No. 4, Gateway at Prospect Metropolitan District No. 5, Gateway at Prospect Metropolitan District No. 6 or Gateway at Prospect Metropolitan District No. 7, individually. District No. 1: means Gateway at Prospect Metropolitan District No. 1. District No. 2: means Gateway at Prospect Metropolitan District No. 2. District No. 3: means Gateway at Prospect Metropolitan District No. 3. District No. 4: means Gateway at Prospect Metropolitan District No. 4. District No. 5: means Gateway at Prospect Metropolitan District No. 5. District No. 6: means Gateway at Prospect Metropolitan District No. 6. District No. 7: means Gateway at Prospect Metropolitan District No. 7. Districts: means Gateway at Prospect Metropolitan District No. 1, Gateway at Prospect Metropolitan District No. 2, Gateway at Prospect Metropolitan District No. 3, Gateway at Prospect Metropolitan District No. 4, Gateway at Prospect Metropolitan District No. 5, Gateway at Prospect Metropolitan District No. 6 or Gateway at Prospect Metropolitan District No. 7, collectively. District Organization Date: means the date the order and decree issued by the Larimer County District Court as required by law for the District or Districts is recorded with the Larimer County Clerk and Recorder. External Financial Advisor: means a consultant that: (1) is qualified to advise Colorado governmental entities on matters relating to the issuance of securities by Colorado governmental entities including matters such as the pricing, sales and marketing of such securities and the procuring of bond ratings, credit enhancement and insurance in respect of such securities; (2) shall be an underwriter, investment banker, or individual listed as a public finance advisor in the Bond Buyer’s Municipal Market Place or, in the City’s sole discretion, other recognized publication as a provider of financial projections; and (3) is not an officer or employee of the Districts. Financial Plan: means the Financial Plan described in Section VI which is prepared by an External Financial Advisor in accordance with the requirements of the City Code and describes (a) how the Public Improvements are to be financed; (b) how the Debt is expected to be incurred; and (c) the estimated operating revenue derived from property taxes for the first budget year through the year in which all District Debt is expected to be defeased or paid in the ordinary course. In the event the Financial Plan is not prepared by an External Financial Advisor, the Financial Plan is accompanied by a letter of support from an External Financial Advisor. This Financial Plan is intended to represent only one example of debt issuance and financing structure of the Districts, 1597.0003; 876246 5 any variations or adjustments in the timing or implementation thereof shall not be interpreted as material modifications to this Service Plan. Infrastructure Preliminary Development Plan: means the Infrastructure Preliminary Development Plan as described in Section V.B. which includes: (a) a preliminary list of the Public Improvements to be developed by the Districts; (b) an estimate of the cost of the Public Improvements; and (c) the map or maps showing the approximate location(s) of the Public Improvements. The Districts’ implementation of this Infrastructure Preliminary Development Plan is subject to change conditioned upon various external factors including, but not limited to, site conditions, engineering requirements, City, county or state requirements, land use conditions, market conditions, and zoning limitations. Intergovernmental Agreement: means the intergovernmental agreement between the Districts and the City, a form of which is attached hereto as Exhibit F. The Intergovernmental Agreement may be amended from time to time by the applicable District and the City. Maximum Mill Levy: means the maximum mill levy each of the Districts is permitted to impose under this Service Plan for payment of Debt and administration, operations, and maintenance expenses as set forth in Section VI.C. below. Maximum Debt Authorization: means the total Debt the Districts are permitted to issue as set forth in Section V.A.5 and supported by the Financial Plan. Maximum Debt Maturity Term: means the maximum term for repayment in full of a specific District Debt issuance as set forth in Section VI.D. below. Operations and Maintenance Mill Levy: means the mill levy the Districts project to impose for payment of administration, operations, and maintenance costs as set forth in the Financial Plan and Section VI. below. Overlay District: means the I-25/Prospect Interchange Metropolitan District. Overlay District Debt Service Mill Levy: means the mill levy the Overlay District imposes under its service plan for payment of its debt. Project: means the development or property commonly referred to as Gateway at Prospect Site. Project Area Boundaries: means the boundaries of the area described in the Project Area Boundary Map and the legal description attached hereto as Exhibit A-1. Project Area Boundary Map: means the map attached hereto as Exhibit B-1, describing the overall property that incorporates the Project. Property Owner: means Fort Collins/I-25 Interchange Corner, LLC, a Colorado limited liability company, and Gateway at Prospect Apartments, LLC, a Colorado limited liability company, their successors or assigns. 1597.0003; 876246 6 Public Improvements: means a part or all of the improvements authorized to be planned, designed, acquired, constructed, installed, relocated, redeveloped and financed as generally described in the Special District Act, except as specifically limited in Section V below to serve the future taxpayers and property owners of the Service Area as determined by the Board of the Districts. Service Area: means the property within the Project Area Boundary Map after such property has been included within the Districts. Service Plan: means this service plan for the Districts approved by the City Council. Service Plan Amendment: means an amendment to the Service Plan approved by the City Council in accordance with applicable state law and this Service Plan. Special District Act or “Act”: means Article 1 of Title 32 of the Colorado Revised Statutes, as amended from time to time. State: means the State of Colorado. Vicinity Map: means a map of the regional area surrounding the Project. III. BOUNDARIES The Project Area Boundaries includes approximately One Hundred Seventy Nine (179) acres. A legal description of the Project Area Boundaries is attached as Exhibit A-1. The Project Area Boundaries are divided into seven (7) separate and distinct Districts (District No. 1, District No. 2, District No. 3, District No. 4, District No. 5, District No. 6 and District No. 7), legal descriptions for which are attached hereto as Exhibits A-2, A-3, A-4, A-5, A-6, A-7 and A-8, respectively. A Project Area Boundary Map is attached hereto as Exhibit B-1, a map of District No. 1 is included as Exhibit B-2, a map of District No. 2 is included as Exhibit B-3, a map of District Nos. 3-7 is included as Exhibit B-4, and an estimated future boundary map of the Districts is included as Exhibit B-5. Finally, a Vicinity Map is attached hereto as Exhibit C. It is anticipated that the Districts’ Boundaries may change from time to time as they undergo inclusions and exclusions pursuant to Section 32-1-401, et seq., C.R.S., and Section 32-1-501, et seq., C.R.S., subject to the limitations set forth in Article V below. IV. PROPOSED LAND USE AND ASSESSED VALUATION The Service Area consists of approximately One Hundred Seventy Nine (179) acres of planned mixed use land. The current assessed valuation of the Service Area is approximately One Hundred Fifty Thousand Dollars ($150,000) and, at build out, is expected to be Two Hundred and Twenty Five Million Dollars ($225,000,000). This amount is expected to be sufficient to reasonably discharge the Debt as demonstrated in the Financial Plan. Approval of this Service Plan by the City does not imply approval of the development of a specific area within the Districts, nor does it imply approval of the total site/floor area of commercial buildings or space which may be identified in this Service Plan or any of the exhibits 1597.0003; 876246 7 attached thereto or any of the Public Improvements, unless the same is contained within an Approved Development Plan. V. DESCRIPTION OF PROPOSED POWERS, IMPROVEMENTS AND SERVICES A. Powers of the Districts and Service Plan Amendment. The Districts shall have the power and authority to acquire, construct and install the Public Improvements within and without the boundaries of the Districts as such power and authority is described in the Special District Act, and other applicable statutes, common law and the State Constitution, subject to the limitations set forth herein. If, after the Service Plan is approved, the State Legislature includes additional powers or grants new or broader powers for Title 32 districts by amendment of the Special District Act or otherwise, any or all such powers shall be deemed to be a part hereof and available to or exercised by the Districts upon prior resolution approval of the City Council concerning the exercise of such powers. Such approval by the City Council shall not constitute a material modification of this Service Plan. 1. Operations and Maintenance. The purpose of the Districts is to plan for, design, acquire, construct, install, relocate, redevelop and finance the Public Improvements. The Districts shall dedicate the Public Improvements to the City or other appropriate jurisdiction or owners association in a manner consistent with the Approved Development Plan and applicable provisions of the City Code. Additionally, the Districts shall be authorized to operate and maintain any part or all of the Public Improvements until such time that the Districts dissolve. 2. Development Standards. The Districts will ensure that the Public Improvements are designed and constructed in accordance with the standards and specifications of the City and of other governmental entities having proper jurisdiction, as applicable. The Districts directly or indirectly through the Property Owners or any developer will obtain the City’s approval of civil engineering plans and will obtain applicable permits for construction and installation of Public Improvements prior to performing such work. Unless waived by the City, the Districts shall be required, in accordance with the City Code, to post a surety bond, letter of credit, or other approved development security for any Public Improvements to be constructed by the Districts. Such development security may be released when the Districts have obtained funds, through bond issuance or otherwise, adequate to insure the construction of the Public Improvements. Any limitation or requirement concerning the time within which the City must review the Districts’ proposal or application for an Approved Development Plan or other land use approval is hereby waived by the Districts. 3. Privately Placed Debt Limitation. Prior to the issuance of any privately placed Debt, a District shall obtain the certification of an External Financial Advisor substantially as follows: We are [I am] an External Financial Advisor within the meaning of the District’s Service Plan. 1597.0003; 876246 8 We [I] certify that (1) the net effective interest rate (calculated as defined in Section 32-1-103(12), C.R.S.) to be borne by the District for the [insert the designation of the Debt] does not exceed a reasonable current [tax-exempt] [taxable] interest rate, using criteria deemed appropriate by us [me] and based upon our [my] analysis of comparable high yield securities; and (2) the structure of [insert designation of the Debt], including maturities and early redemption provisions, is reasonable considering the financial circumstances of the District. 4. Inclusion and Exclusion Limitation. The Districts shall be entitled to include within their boundaries any property within the Project Area Boundaries without prior approval of the City Council. The Districts shall also be entitled to exclude from their boundaries any property within the Project Area Boundaries so far as, within a reasonable time thereafter, the property is included within the boundaries of another District, and upon compliance with the provisions of the Special District Act. All other inclusions or exclusions shall require the prior resolution approval of the City Council, and if approved, shall not constitute a material modification of this Service Plan. 5. Maximum Debt Authorization. The Districts anticipate approximately One Hundred and Eight Million Sixty-Six Thousand One Hundred and Sixty Dollars ($108,066,160) in project costs in 2018 dollars as set forth in Exhibit D, and anticipate issuing approximately One Hundred Twenty Five Million Dollars ($125,000,000) (the “Maximum Debt Authorization”) in Debt to pay such costs as set forth in Exhibit E. The Districts shall not issue Debt in amounts in excess of the Maximum Debt Authorization. The Districts must seek prior resolution approval by the City Council to issue Debt in excess of the Maximum Debt Authorization to pay the actual costs of the Public Improvements set forth in Exhibit D plus inflation, contingencies and other unforeseen expenses associated with such Public Improvements. Such approval by the City Council shall not constitute a material modification of this Service Plan so long as increases are reasonably related to the Public Improvements set forth in Exhibit D and any Approved Development Plan. 6. Monies from Other Governmental Sources. The Districts shall not apply for or accept Conservation Trust Funds, Great Outdoors Colorado Funds, or other funds available from or through governmental or non-profit entities for which the City is eligible to apply for, except pursuant to an intergovernmental agreement with the City. This Section shall not apply to specific ownership taxes which shall be distributed to and a revenue source for the Districts without any limitation. 7. Consolidation Limitation. The Districts shall not file a request with any Court to consolidate with another Title 32 district without the prior resolution approval of the City Council, unless such consolidation is among the Districts themselves, which shall not require approval of the City Council. 8. Eminent Domain Limitation. The Districts shall not exercise their statutory power of eminent domain without first obtaining resolution approval from the City Council. This restriction on the Eminent Domain power by the Districts is being exercised voluntarily and shall 1597.0003; 876246 9 not be interpreted in any way as a limitation on the Districts’ sovereign powers and shall not negatively affect the Districts status as political subdivisions of the State of Colorado as allowed by the Special District Act. 9. Service Plan Amendment Requirement. This Service Plan is general in nature and does not include specific detail in some instances because development plans have not been finalized. The Service Plan has been designed with sufficient flexibility to enable the Districts to provide required services and facilities under evolving circumstances without the need for numerous amendments. Modification of the general types of services and facilities making up the Public Improvements, and changes in proposed configurations, locations or dimensions of the Public Improvements shall be permitted to accommodate development needs consistent with the then-current Approved Development Plan(s) for the Project. The Districts shall be independent units of local government, separate and distinct from the City, and their activities are subject to review by the City only insofar as they may deviate in a material manner from the requirements of the Service Plan. Any action of a District which: (1) violates the limitations set forth in this Section V.A. or (2) violates the limitations set forth in Section VI. below, shall be deemed to be a material modification to this Service Plan unless otherwise agreed by the City as provided for in Section X of this Service Plan or unless otherwise expressly provided herein. All other departures from the provisions of this Service Plan shall be considered on a case-by-case basis as to whether such departures are a material modification, unless otherwise expressly provided herein. No District may amend this Service Plan in a manner which materially affects any other District, in such other District’s sole discretion, without such other District’s written consent. B. Infrastructure Preliminary Development Plan. The Districts shall have authority to provide for the planning, design, acquisition, construction, installation, relocation, redevelopment, maintenance, and financing of the Public Improvements within and without the boundaries of the Districts, to be more specifically defined in an Approved Development Plan. The Infrastructure Preliminary Development Plan, including: (1) a list of the Public Improvements to be developed by the Districts; (2) an estimate of the cost of the Public Improvements; and (3) maps showing the approximate locations of the Public Improvements is attached hereto as Exhibit D and is hereby deemed to constitute the preliminary engineering or architectural survey required by Section 32-1-202(2)(c), C.R.S. The maps contained in the Infrastructure Preliminary Development Plan are also available in size and scale approved by the City’s planning department. As shown in the Infrastructure Preliminary Development Plan, the estimated cost of the Public Improvements which may be planned for, designed, acquired, constructed, installed, relocated, redeveloped, maintained or financed by the Districts is approximately One Hundred and Eight Million Sixty-Six Thousand One Hundred and Sixty Dollars ($108,066,160). The Districts shall be permitted to allocate costs between such categories of the Public Improvements as deemed necessary in their discretion. All of the Public Improvements described herein will be designed in such a way as to assure that the Public Improvements standards will be consistent with or exceed the standards 1597.0003; 876246 10 of the City and shall be in accordance with the requirements of the Approved Development Plan. All descriptions of the Public Improvements to be constructed, and their related costs, are estimates only and are subject to modification as engineering, development plans, economics, the City’s requirements, and construction scheduling may require. Upon approval of this Service Plan, the Districts will continue to develop and refine the Infrastructure Preliminary Development Plan and prepare for issuance of Debt. All cost estimates will be inflated to then-current dollars at the time of the issuance of Debt and construction. All construction cost estimates contained in the Infrastructure Preliminary Development Plan assume construction to applicable local, State or Federal requirements. Changes in the Public Improvements, Infrastructure Preliminary Development Plan, or costs, which are approved by the City in an Approved Development Plan, shall not constitute a material modification of this Service Plan. Additionally, due to the preliminary nature of the Infrastructure Preliminary Development Plan, the City shall not be bound by the Infrastructure Preliminary Development Plan in reviewing and approving the Approved Development Plan and the Approved Development Plan shall supersede the Infrastructure Preliminary Development Plan. VI. FINANCIAL PLAN A. General. The Districts shall be authorized to provide for the planning, design, acquisition, construction, installation, relocation and/or redevelopment of the Public Improvements from their revenues and by and through the proceeds of Debt to be issued by the Districts, subject to the limitations contained herein. The Financial Plan for the Districts shall be to issue no more Debt than the Districts can reasonably pay within Thirty (30) years for each series of Debt from revenues derived from the Debt Service Mill Levy and other revenue sources authorized by law. The Financial Plan for the Districts projects the need for a Debt Service Mill Levy of no greater than Fifty (50) Mills. The Financial Plan further provides for the Districts’ administrative and operations and maintenance activities through the imposition of an Operations and Maintenance Mill Levy of no greater than Twenty (20) Mills. The total Debt that the Districts shall be permitted to issue shall not exceed the Maximum Debt Authorization; provided, however, that Debt issued to refund outstanding Debt of the Districts, including Debt issued to refund Debt owed to the Property Owners of the Project pursuant to a reimbursement agreement or other agreement, shall not count against the Maximum Debt Authorization so long as such refunding Debt does not result in a net present value increase. Subject to the limitations contained herein, District Debt shall be issued on a schedule and in such year or years as the Districts determine shall meet the needs of the Financial Plan referenced above and phased to serve the Project as it occurs. All Bonds and other Debt issued by the Districts may be payable from any and all legally available revenues of the Districts, including general ad valorem taxes to be imposed upon all taxable property within the Districts. The Districts may also rely upon various other revenue sources authorized by law. These will include the power to impose development fees, rates, tolls, penalties, or charges as provided in Section 32-1-1001(1), C.R.S., as amended from time to time. Notwithstanding any provision to the contrary contained in this Service Plan, the District shall not be authorized to impose any fees, rates, tolls or charges for any purpose unless 1597.0003; 876246 11 and until (a) the Owners (as defined in the Binding Agreement) have recorded the PIF Covenant (as defined in the Binding Agreement) against each of their respective properties, and (b) the City and the Overlay District have entered into the Capital Pledge Agreement. Failure to comply with this provision shall constitute a material modification under this Service Plan and shall entitle the City to all remedies available at law and in equity. The Maximum Debt Authorization, Debt Service Mill Levy, Operations, Maintenance Mill Levy, and all other financial projections and estimates contained in this Service Plan are supported by the Financial Plan (Exhibit E) prepared by an External Financial Advisor, D.A. Davidson and Co. The Financial Plan is based on economic, political and industry conditions as they exist presently and reasonable projections and estimates of future conditions. These projections and estimates are not to be interpreted as the only method of implementation of the Districts’ goals and objectives but rather a representation of one feasible alternative. Other financial structures may be used so long as the Maximum Debt Authorization and Maximum Mill Levy are not exceeded. Notwithstanding the foregoing, D.A. Davidson and Co. shall not be considered a financial advisor or municipal advisor with regard to any Debt issuance by the Districts. B. Maximum Voted Interest Rate and Maximum Underwriting Discount. The interest rate on any Debt is expected to be the market rate at the time the Debt is issued. The maximum interest rate on any Debt is not permitted to exceed Twelve Percent (12%). The maximum underwriting discount will be Three Percent (3%). Debt, when issued, will comply with all relevant requirements of this Service Plan, State law and Federal law as then applicable to the issuance of public securities. C. Maximum Mill Levies. The Maximum Mill Levy shall be the maximum mill levy each District is permitted to impose upon the taxable property within its boundaries and shall be Eighty (80) Mills minus the Overlay District Debt Service Mill Levy. The combined Debt Service Mill Levy, Operations and Maintenance Mill Levy, Overlay District Debt Service Mill Levy and aggregate mill levy of any overlapping District shall under no circumstances exceed the Maximum Mill Levy. Allocation of the Debt Service Mill Levy and Operations and Maintenance Mill Levy shall be left to the sole discretion of the Board for each District. If, on or after January 1, 2018, there are changes in the method of calculating assessed valuation or any constitutionally mandated tax credit, cut or abatement, the preceding mill levy limitations may be increased or decreased to reflect such changes, with such increases or decreases to be determined by each Board in good faith (such determination to be binding and final), with administrative approval by the City, so that to the extent possible, the actual tax revenues generated by the applicable District’s mill levy, as adjusted for changes occurring after January 1, 2018, are neither diminished nor enhanced as a result of such changes. For purposes of the foregoing, a change in the ratio of actual valuation to assessed valuation will be a change in the method of calculating assessed valuation. Notwithstanding any provision to the contrary contained in this Service Plan, the District shall not be authorized to impose any mill levy for any purpose unless and until (a) each of the Owners (as defined in the Binding Agreement) have recorded the PIF Covenant (as defined 1597.0003; 876246 12 in the Binding Agreement) against each of their respective properties, and (b) the City and the Overlay District have entered into the Capital Pledge Agreement. Failure to comply with this provision shall constitute a material modification under this Service Plan and shall entitle the City to all remedies available at law and in equity. D. Debt Issuance and Maturity. The scheduled final maturity of any Debt or series of Debt shall be limited to Thirty (30) years (the “Maximum Debt Maturity Term”). The Maximum Debt Maturity Term shall apply to refundings unless: (1) a majority of the Board members are residents of the District and have voted in favor of a refunding of a part or all of the Debt; or (2) such refunding will result in a net present value savings as set forth in Section 11-56-101 et seq., C.R.S. and are otherwise permitted by law. Unless otherwise approved by the City Council, the Districts shall be limited to issuing new Debt within a period of Twenty (20) years from the date of their first Debt authorization election. The Maximum Debt Maturity Term, as described in Section VI.D, shall be applicable to any new Debt issued within this Twenty (20) year period, otherwise, all Debts and financial obligations of the Districts must be defeased or paid in the ordinary course no later than Forty (40) years after the Service Plan approval date. Notwithstanding any provision to the contrary contained in this Service Plan, the District shall not be authorized to issue any Debt for any purpose unless and until (a) each of the Owners (as defined in the Binding Agreement) have recorded the PIF Covenant (as defined in the Binding Agreement) against each of their respective properties, and (b) the City and the Overlay District have entered into the Capital Pledge Agreement. Failure to comply with this provision shall constitute a material modification under this Service Plan and shall entitle the City to all remedies available at law and in equity. E. Security for Debt. The Districts do not have the authority and shall not pledge any revenue or property of the City as security for the indebtedness set forth in this Service Plan. Approval of this Service Plan shall not be construed as a guarantee by the City of payment of any of the Districts’ obligations; nor shall anything in the Service Plan be construed so as to create any responsibility or liability on the part of the City in the event of default by the Districts in the payment of any such obligation or performance of any other obligation. F. TABOR Compliance. The Districts will comply with the provisions of the Taxpayer’s Bill of Rights (“TABOR”), Article X, § 20 of the Colorado Constitution. In the discretion of the Board, a District may set up other qualifying entities to manage, fund, construct and operate facilities, services, and programs. To the extent allowed by law, any entity created by a District will remain under the control of the District’s Board. G. Districts’ Operating Costs. 1597.0003; 876246 13 The estimated cost of acquiring land, engineering services, legal services and administrative services, together with the estimated costs of the Districts’ organization and initial operations, are anticipated to be Two Hundred Thousand Dollars ($200,000), which will be eligible for reimbursement from Debt proceeds. In addition to the capital costs of the Public Improvements, the Districts will require operating funds for administration and to plan and cause the Public Improvements to be operated and maintained. The first year’s operating budget is estimated to be Fifty Thousand Dollars ($50,000). Ongoing administration, operations, and maintenance costs may be paid from property taxes and other revenues. H. Elections. The Districts will call an election on the questions of organizing the Districts, electing the initial Boards, and setting in place financial authorizations as required by TABOR. The elections will be conducted as required by law. VII. ANNUAL REPORT A. General. The Districts shall be responsible for submitting an annual report with the City’s clerk not later than September 1st of each year for the year ending the preceding December 31 following the year of the District Organization Date. The City may, in its sole discretion, waive this requirement in whole or in part. B. Reporting of Significant Events. Unless waived by the City, the annual report shall include the following: 1. A narrative summary of the progress of the Districts in implementing their service plan for the report year; 2. Except when exemption from audit has been granted for the report year under the Local Government Audit Law, the audited financial statements of the Districts for the report year including a statement of financial condition (i.e., balance sheet) as of December 31 of the report year and the statement of operations (i.e., revenues and expenditures) for the report year; 3. Unless disclosed within a separate schedule to the financial statements, a summary of the capital expenditures incurred by the Districts in development of Public Improvements in the report year; 4. Unless disclosed within a separate schedule to the financial statements, a summary of the financial obligations of the Districts at the end of the report year, including the amount of outstanding indebtedness, the amount and terms of any new District indebtedness or long-term obligations issued in the report year, the amount of payment or retirement of existing indebtedness of the Districts in the report year, the total assessed valuation of all taxable properties 1597.0003; 876246 14 within the Districts as of January 1 of the report year and the current mill levy of the Districts pledged to Debt retirement in the report year; and 5. Any other information deemed relevant by the City Council or deemed reasonably necessary by the City’s manager and communicated in a timely manner to the Districts. In the event the annual report is not timely received by the City’s clerk or is not fully responsive, notice of such default may be given to the Board of such Districts, at its last known address. The failure of the Districts to file the annual report within Forty-Five (45) days of the mailing of such default notice by the City’s clerk may constitute a material modification, at the discretion of the City. VIII. DISSOLUTION Upon an independent determination of the City Council that the purposes for which the Districts were created have been accomplished, the Districts agree to file petitions in the appropriate District Court for dissolution, pursuant to the applicable State statutes. In no event shall dissolution occur until the Districts have provided for the payment or discharge of all of their outstanding indebtedness and other financial obligations as required pursuant to State statutes, including operation and maintenance activities. IX. PROPOSED AND EXISTING INTERGOVERNMENTAL AGREEMENTS AND EXTRATERRITORIAL SERVICE AGREEMENTS All intergovernmental agreements must be for purposes, facilities, services or agreements lawfully authorized to be provided by the Districts, pursuant to the State Constitution, Article XIV, Section 18(2)(a) and Sections 29-1-201, et seq., C.R.S. To the extent practicable, the Districts may enter into additional intergovernmental and private agreements to better ensure long-term provision of the Public Improvements identified herein or for other lawful purposes of the Districts. Agreements may also be executed with property owner associations and other service providers. The following agreement is likely to be necessary, and the rationale therefore is set forth as follows: District Facilities Construction and Service Agreement. The Districts anticipate entering into a District Facilities Construction and Service Agreement, commonly known as the “Master IGA”, wherein the Districts set forth the financing and administrative requirements of the Districts for the Project. Except for the Intergovernmental Agreement with the City, as set forth in Section XII below, no other agreements are required, or known at the time of formation of the Districts to likely be required, to fulfill the purposes of the Districts. Execution of intergovernmental agreements or agreements for extraterritorial services by the Districts that are not described in this Service Plan and which are likely to cause a substantial increase in the Districts’ budgets shall require the prior resolution approval of the City Council, which approval shall not constitute a material modification hereof. X. MATERIAL MODIFICATIONS 1597.0003; 876246 15 Material modifications to this Service Plan may be made only in accordance with Section 32-1-207, C.R.S. No modification shall be required for an action of the Districts which does not materially depart from the provisions of this Service Plan. Departures from the Service Plan that constitute a material modification include without limitation: 1. Actions or failures to act that create materially greater financial risk or burden to the taxpayers of the District; 2. Performance of a service or function or acquisition of a major facility that is not closely related to a service, function or facility authorized in the Service Plan; 3. Failure to perform a service or function or acquire a facility required by the Service Plan; 4. Failure by the Districts to execute the Intergovernmental Agreement as set forth in Article XI hereof; and 5. Failure to comply with the limitations set forth in Section V.A. or Section VI of this Service Plan. Actions that are not to be considered material modifications include without limitation changes in quantities of facilities or equipment, immaterial cost differences, and actions expressly authorized in the Service Plan. XI. SANCTIONS Should the District undertake any act without obtaining prior City Council resolution approval as required in this Service Plan or that constitutes a material modification to this Service Plan as provided herein or under the Special District Act, the City may impose one (1) or more of the following sanctions, as it deems appropriate: 1. Exercise any applicable remedy under the Act; 2. Withhold the issuance of any permit, authorization, acceptance or other administrative approval, or withhold any cooperation, necessary for the District’s development, construction or operation of improvements, or the provisions of services as contemplated in this Service Plan; 3. Exercise any legal remedy as provided in the Capital Pledge Agreement or in any other intergovernmental agreement with the City under which the District is in default; or 1597.0003; 876246 16 4. Exercise any other legal remedy at law or in equity, including seeking specific performance, mandamus or injunctive relief against the District, to ensure the District’s compliance with this Service Plan and applicable law. XII. INTERGOVERNMENTAL AGREEMENT WITH CITY The Districts and the City shall enter into an Intergovernmental Agreement, a form of which is attached hereto as Exhibit F, provided that such Intergovernmental Agreement may be revised by the City and Districts to include such additional details and requirements therein as are deemed necessary by the City and such Districts in connection with the development of the Project and the financing of the Public Improvements. Each District shall approve the Intergovernmental Agreement at its first Board meeting after its organizational election. Failure by each of the Districts to execute the Intergovernmental Agreement as required herein shall constitute a material modification hereunder. The Intergovernmental Agreement may be amended from time to time by the Districts and the City, provided that any such amendments shall be in compliance with the provisions of this Service Plan. XIII. CONCLUSION It is submitted that this Service Plan for the Districts, as required by Section 32-1-203(2), establishes that: 1. There is sufficient existing and projected need for organized service in the area to be serviced by the Districts; 2. The existing service in the area to be served by the Districts is inadequate for present and projected needs; 3. The Districts are capable of providing economical and sufficient service to the area within their proposed boundaries; and 4. The area to be included in the Districts does have, and will have, the financial ability to discharge the proposed indebtedness on a reasonable basis. XIV. RESOLUTION OF APPROVAL The Districts agree to incorporate the City Council’s resolution of approval, including any conditions on any such approval, into the Service Plan presented to the District Court for and in Larimer County, Colorado. EXHIBIT A-1 Gateway at Prospect Metropolitan District Nos. 1-7 Legal Description of Project Area Boundaries FORT COLLINS: 301 North Howes Street, Suite 100, 80521 | 970.221.4158 GREELEY: 820 8th Street, 80631 | 970.395.9880 | WEB: www.northernengineering.com Exhibit A-1 DESCRIPTION: GATEWAY AT PROSPECT METROPOLITAN DISTRICT PROJECT AREA BOUNDARIES Tracts of land located in Section 16, Township 7 North, Range 68 West of the Sixth Principal Meridian, City of Fort Collins, County of Larimer, State of Colorado, being more particularly described as follows: Considering the West line of the Southeast Quarter of said Section 16 as bearing North 00° 11’ 16” East, and with all bearing contained herein relative thereto: Commencing at the South Quarter Corner of said Section 16; thence along the West line of the Southeast Quarter, North 00° 11’ 16” East, 360.01 feet to the Northwest corner of Lot 1, Block 1, Boxelder Estates Second Filing to POINT OF BEGINNING 1; thence along West line of the Southeast Quarter, North 00° 11' 16" East, 736.49 feet to the Northeast corner of a parcel of land as described at Reception No. 95076406, Larimer County Clerk and Recorder; thence, North 88° 20' 33" West, 315.26 feet to the Southeast corner of a parcel of land as described at Reception No. 20140007506, Larimer County Clerk and Recorder; thence along the East line of said parcel, North 25° 21' 13" West, 264.37 feet to the Southeast corner of a parcel of land described at Reception No. 93054775, Larimer County Clerk and Recorder; thence along said parcel the following 3 courses and distance: North 00° 12' 15" East, 1649.54 feet; thence, South 89° 47' 45" East, 200.00 feet; thence, North 00° 12' 15" East, 216.34 feet to a point on the South line of a parcel of land described at Reception No. 133800200, Larimer County Clerk and Recorder; thence along said South line, South 83° 28' 53" East, 232.09 feet to the Southeast corner of said parcel, said point being on the East line of Sunrise Estates extended; thence along said East line, North 00° 08' 06" East, 1117.52 feet to a point on the South line of Crossroads East Business Center; thence along said South line the following 5 courses and distance: South 25° 46' 37" East, 448.11 feet; thence, South 48° 55' 44" East, 1510.22 feet; thence, South 24° 21' 14" East, 195.19 feet; thence, South 58° 04' 14" East, 132.96 feet to the Southeast corner of said Crossroads East Business Center; thence along the East line of said Crossroads East Business Center, North 00° 11' 16" East, 33.04 feet to a point on the South line of Smithfield Subdivision; thence along said South line the following 4 courses and distance: South 65° 21' 37" East, 353.30 feet; thence, South 79° 21' 37" East, 300.00 feet; thence, North 57° 08' 23" East, 197.00 feet; thence, North 69° 08' 23" East, 141.86 feet to a point on the West line of Interstate Highway 25; thence along said West line the following 2 courses and distances: South 00° 11' 10" West, 601.01 feet; thence, South 01° 58' 22" West, 408.31 feet to the North line of Interstate Land PUD First Filing; thence along said Interstate Land PUD First Filing the following 2 courses and distances: North 76° 26' 25" West, 300.61 feet; thence, South 11° 47' 57" West, 629.05 feet to the West line of Interstate Highway 25 Frontage Road; thence along said Interstate Highway 25 Page 1 of 2 Frontage Road the following 6 courses and distances: South 85° 36' 15" West, 289.72 feet; thence, South 82° 01' 25" West, 157.09 feet; thence along a curve concave to the southeast having a central angle of 62° 57' 26" with a radius of 449.26 feet, an arc length of 493.65 feet and the chord of which bears South 43° 37' 30" West, 469.19 feet; thence, South 05° 13' 35" West, 157.09 feet; thence South 01° 38' 45" West, 455.56 feet to Point A; thence, South 46° 38' 49" West, 102.54 feet to the North right-of-way line of East Prospect Road; thence along said North line, North 88° 21' 30" West, 222.35 feet to the East line of Lot 3, Block 1, Boxelder Estates Second Filing; thence along the East, North and West lines of said Lot 3 the following 3 courses and distances: North 01° 38' 10" East, 242.53 feet; thence, North 88° 21' 50" West, 290.40 feet; thence, South 01° 38' 10" West, 242.50 feet to the North right-of-way line of East Prospect Road; thence along said North line, North 88° 21' 30" West, 516.42 feet to the East line of Lot 1, Block 1, Boxelder Estates Second Filing; thence along said East line, North 00° 11' 10" East, 302.55 feet to the North line of said Lot 1; thence along said North line, North 88° 21' 50" West, 120.13 feet to POINT OF BEGINNING 1, containing 6,777,385 square feet or 155.59 acres, more or less. AND Commencing at aforementioned Point A; thence South 88° 21’ 08” East, 79.99 feet to a point on the East right-of-way line of Interstate Highway 25 Frontage Road, said point being the POINT OF BEGINNING 2; thence along the East and North lines of said right-of-way the following 8 courses and distances: North 01° 38' 45" East, 455.57 feet; thence, North 05° 03' 18" East, 142.46 feet, thence along a curve concave to the northwest having a central angle of 62° 57' 26" with a radius of 369.26 feet, an arc length of 405.75 feet and the chord of which bears North 43° 37' 30" East, 385.64 feet; thence, North 82° 11' 42" East, 142.46 feet; thence, North 85° 36' 05" East, 289.72 feet; thence, North 82° 01' 25" East, 157.09 feet; thence along a curve concave to the southeast having a central angle of 28° 04' 38" with a radius of 449.26 feet, an arc length of 220.16 feet and the chord of which bears North 61° 03' 55" East, 217.96 feet; thence, South 89° 48' 10" East, 79.52 feet to a point on the West right-of-way line of Interstate Highway 25; thence along said Westerly line the following 4 courses and distance: South 00° 11' 10" West, 379.24 feet; thence, South 10° 33' 17" West, 201.18 feet; thence, South 26° 47' 14" West, 560.45 feet; thence, South 61° 09' 08" West, 99.88 feet to the North right-of-way line of East Prospect Road; thence along said North line the following 3 courses and distances: North 88° 18' 07" West, 203.23 feet; hence, South 85° 48' 49" West, 411.08 feet; thence, North 88° 21' 25" West, 59.24 feet; thence, North 43° 21' 11" West, 141.39 feet to the POINT OF BEGINNING 2, containing 1,013,409 square feet or 23.26 acres, more or less. The above described Tracts of land contains 7,790794 square feet or 178.85 acres more less and is subject to all easements and rights-of-way now on record or existing. January 31, 2018 LMS S:\Survey Jobs\892-002\Dwg\Metro District\Exhibit A - Legals\892-002_Overall Boundary.docx Page 2 of 2 EXHIBIT A-2 Gateway at Prospect Metropolitan District No. 1 Legal Description FORT COLLINS: 301 North Howes Street, Suite 100, 80521 | 970.221.4158 GREELEY: 820 8th Street, 80631 | 970.395.9880 | WEB: www.northernengineering.com Exhibit A-2 DESCRIPTION: GATEWAY AT PROSPECT METROPOLITAN DISTRICT 1 Tracts of land located in Section 16, Township 7 North, Range 68 West of the Sixth Principal Meridian, City of Fort Collins, County of Larimer, State of Colorado, being more particularly described as follows: Considering the West line of the Southeast Quarter of said Section 16 as bearing North 00° 11’ 16” East, and with all bearing contained herein relative thereto: Commencing at the South Quarter Corner of said Section 16; thence along the South line of the Southeast Quarter, South 88° 21’ 25” East, 925.49 feet; thence, North 01° 38’ 35” East, 57.48 feet POINT OF BEGINNING 1; thence, North 01° 38' 10" East, 242.53 feet; thence, North 00° 50' 59" East, 222.69 feet; thence, North 24° 25' 35" East, 303.45 feet; thence, North 58° 32' 55" East, 129.64 feet; thence, South 48° 21' 44" East, 123.32 feet; thence along a curve concave to the east having a central angle of 06° 47' 19" with a radius of 449.26 feet, an arc length of 53.23 feet and the chord of which bears South 15° 32' 26" West, 53.20 feet; thence, South 05° 13' 35" West, 157.09 feet; thence, South 01° 38' 45" West, 455.56 feet to Point A; thence, South 46° 38' 49" West, 102.54 feet; thence, North 88° 21' 30" West, 222.35 feet POINT OF BEGINNING 1, containing 210,389 square feet or 4.83 acres, more or less. AND Commencing at aforementioned Point A; thence South 88° 21’ 08” East, 79.99 feet to POINT OF BEGINNING 2; thence, North 01° 38' 45" East, 455.57 feet; thence, North 05° 03' 18" East, 142.46 feet; thence along a curve concave to the southeast having a central angle of 62° 57' 26" with a radius of 369.26 feet, an arc length of 405.75 feet and the chord of which bears North 43° 37' 30" East, 385.64 feet; thence, North 82° 11' 42" East, 142.46 feet; thence, North 85° 36' 05" East, 289.72 feet; thence, North 82° 01' 25" East, 157.09 feet; thence along a curve concave to the northwest having a central angle of 28° 04' 38" with a radius of 449.26 feet, an arc length of 220.16 feet and the chord of which bears North 61° 03' 55" East, 217.96 feet; thence, South 89° 48' 10" East, 79.52 feet; thence, South 00° 11' 10" West, 379.24 feet; thence, South 10° 33' 17" West, 201.18 feet; thence, South 26° 47' 14" West, 560.45 feet; thence, South 61° 09' 08" West, 99.88 feet; thence, North 88° 18' 07" West, 203.23 feet; thence, North 00° 12' 05" East, 158.22 feet; thence North 88° 21' 25" West, 410.00 feet; thence, South 00° 12' 05" West, 199.99 feet; thence, North 88° 21' 25" West, 59.24 feet; thence, North 43° 21' 11" West, 141.39 feet to POINT OF BEGINNING 2, containing 939,998 square feet or 21.58 acres, more or less. Page 1 of 2 AND Commencing at the South Quarter Corner of said Section 16; thence along the West line of the Southeast Quarter, North 00° 11’ 16” East, 1096.50 feet; thence, North 88° 20' 33" West, 315.26 feet; thence, North 25° 21' 13" West, 264.37 feet; thence, North 00° 12' 15" East, 1649.54 feet; thence, South 89° 47' 45" East, 200.00 feet; thence, North 00° 12' 15" East, 216.34 feet; thence, South 83° 28' 53" East, 232.09 feet; thence, North 00° 08' 06" East, 1117.52 feet; thence, South 25° 46' 37" East, 448.11 feet; thence, South 48° 55' 44" East, 517.44 feet to POINT OF BEGINNING 3; thence, South 48° 55' 47" East, 350.18 feet; thence, South 41° 04' 16" West, 130.18 feet; thence North 48° 55' 47" West, 350.18 feet; thence, North 41° 04' 16" East, 130.18 feet to POINT OF BEGINNING 3, containing 45,588 square feet or 1.05 acres, more or less. The above described Tracts of land and are subject to all easements and rights-of-way now on record or existing. July 19, 2018 LMS S:\Survey Jobs\892-002\Dwg\Metro District\Exhibit A - Legals\892-002_District 1.docx Page 2 of 2 EXHIBIT A-3 Gateway at Prospect Metropolitan District No. 2 Legal Description Page 1 of 1 FORT COLLINS: 301 North Howes Street, Suite 100, 80521 | 970.221.4158 GREELEY: 820 8th Street, 80631 | 970.395.9880 | WEB: www.northernengineering.com Exhibit A-3 DESCRIPTION: GATEWAY AT PROSPECT METROPOLITAN DISTRICT 2 Tracts of land located in Section 16, Township 7 North, Range 68 West of the Sixth Principal Meridian, City of Fort Collins, County of Larimer, State of Colorado, being more particularly described as follows: Considering the West line of the Southeast Quarter of said Section 16 as bearing North 00° 11’ 16” East, and with all bearing contained herein relative thereto: Commencing at the South Quarter Corner of said Section 16; thence along the West line of the Southeast Quarter, North 00° 11’ 16” East, 360.01 feet to POINT OF BEGINNING 1; thence, North 00° 11' 16" East, 776.89 feet; thence, North 90° 00' 00" East, 835.33 feet; thence, South 48° 21' 44" East, 446.92 feet; thence, South 58° 32' 55" West, 129.64 feet; thence, South 24° 25' 35" West, 303.45 feet; thence, South 00° 50' 59" West, 222.69 feet; thence, North 88° 21' 50" West, 290.40 feet; thence, South 01° 38' 10" West, 242.50 feet; thence North 88° 21' 30" West, 516.42 feet; thence, North 00° 11' 10" East, 302.55 feet; thence, North 88° 21' 50" West, 120.13 feet to POINT OF BEGINNING 1, containing 963,168 square feet or 22.11 acres, more or less. AND Commencing at the South Quarter Corner of said Section 16; thence along the West line of the Southeast Quarter, North 00° 11’ 16” East, 1096.50 feet; thence, North 88° 20' 33" West, 315.26 feet; thence, North 25° 21' 13" West, 264.37 feet; thence, North 00° 12' 15" East, 1649.54 feet; thence, South 89° 47' 45" East, 200.00 feet; thence, North 00° 12' 15" East, 216.34 feet; thence, South 83° 28' 53" East, 232.09 feet; thence, North 00° 08' 06" East, 1117.52 feet; thence, South 25° 46' 37" East, 448.11 feet; thence, South 48° 55' 44" East, 517.44 feet to POINT OF BEGINNING 2; thence, South 48° 55' 47" East, 350.18 feet; thence, South 41° 04' 16" West, 130.18 feet; thence North 48° 55' 47" West, 350.18 feet; thence, North 41° 04' 16" East, 130.18 feet to POINT OF BEGINNING 2, containing 45,588 square feet or 1.05 acres, more or less. July 19, 2018 LMS S:\Survey Jobs\892-002\Dwg\Metro District\Exhibit A - Legals\892-002_District 2.docx EXHIBIT A-4 Gateway at Prospect Metropolitan District No. 3 Legal Description Page 1 of 1 FORT COLLINS: 301 North Howes Street, Suite 100, 80521 | 970.221.4158 GREELEY: 820 8th Street, 80631 | 970.395.9880 | WEB: www.northernengineering.com Exhibit A-4 DESCRIPTION: GATEWAY AT PROSPECT METROPOLITAN DISTRICT 3 A Tract of land located in Section 16, Township 7 North, Range 68 West of the Sixth Principal Meridian, City of Fort Collins, County of Larimer, State of Colorado, being more particularly described as follows: Considering the West line of the Southeast Quarter of said Section 16 as bearing North 00° 11’ 16” East, and with all bearing contained herein relative thereto: Commencing at the South Quarter Corner of said Section 16; thence along the West line of the Southeast Quarter, North 00° 11’ 16” East, 1096.50 feet; thence, North 88° 20' 33" West, 315.26 feet; thence, North 25° 21' 13" West, 264.37 feet; thence, North 00° 12' 15" East, 1649.54 feet; thence, South 89° 47' 45" East, 200.00 feet; thence, North 00° 12' 15" East, 216.34 feet; thence, South 83° 28' 53" East, 232.09 feet; thence, North 00° 08' 06" East, 1117.52 feet; thence, South 25° 46' 37" East, 448.11 feet; thence, South 48° 55' 44" East, 517.44 feet to the POINT OF BEGINNING; thence, South 48° 55' 47" East, 350.18 feet; thence, South 41° 04' 16" West, 130.18 feet; thence North 48° 55' 47" West, 350.18 feet; thence, North 41° 04' 16" East, 130.18 feet to the POINT OF BEGINNING. The above described Tract of land contains 45,588 square feet or 1.05 acres, more or less, and is subject to all easements and rights-of-way now on record or existing. July 19, 2018 LMS S:\Survey Jobs\892-002\Dwg\Metro District\Exhibit A - Legals\892-002_District 3.docx EXHIBIT A-5 Gateway at Prospect Metropolitan District No. 4 Legal Description Page 1 of 1 FORT COLLINS: 301 North Howes Street, Suite 100, 80521 | 970.221.4158 GREELEY: 820 8th Street, 80631 | 970.395.9880 | WEB: www.northernengineering.com Exhibit A-5 DESCRIPTION: GATEWAY AT PROSPECT METROPOLITAN DISTRICT 4 A Tract of land located in Section 16, Township 7 North, Range 68 West of the Sixth Principal Meridian, City of Fort Collins, County of Larimer, State of Colorado, being more particularly described as follows: Considering the West line of the Southeast Quarter of said Section 16 as bearing North 00° 11’ 16” East, and with all bearing contained herein relative thereto: Commencing at the South Quarter Corner of said Section 16; thence along the West line of the Southeast Quarter, North 00° 11’ 16” East, 1096.50 feet; thence, North 88° 20' 33" West, 315.26 feet; thence, North 25° 21' 13" West, 264.37 feet; thence, North 00° 12' 15" East, 1649.54 feet; thence, South 89° 47' 45" East, 200.00 feet; thence, North 00° 12' 15" East, 216.34 feet; thence, South 83° 28' 53" East, 232.09 feet; thence, North 00° 08' 06" East, 1117.52 feet; thence, South 25° 46' 37" East, 448.11 feet; thence, South 48° 55' 44" East, 517.44 feet to the POINT OF BEGINNING; thence, South 48° 55' 47" East, 350.18 feet; thence, South 41° 04' 16" West, 130.18 feet; thence North 48° 55' 47" West, 350.18 feet; thence, North 41° 04' 16" East, 130.18 feet to the POINT OF BEGINNING. The above described Tract of land contains 45,588 square feet or 1.05 acres, more or less, and is subject to all easements and rights-of-way now on record or existing. July 19, 2018 LMS S:\Survey Jobs\892-002\Dwg\Metro District\Exhibit A - Legals\892-002_District 4.docx EXHIBIT A-6 Gateway at Prospect Metropolitan District No. 5 Legal Description Page 1 of 1 FORT COLLINS: 301 North Howes Street, Suite 100, 80521 | 970.221.4158 GREELEY: 820 8th Street, 80631 | 970.395.9880 | WEB: www.northernengineering.com Exhibit A-6 DESCRIPTION: GATEWAY AT PROSPECT METROPOLITAN DISTRICT 5 A Tract of land located in Section 16, Township 7 North, Range 68 West of the Sixth Principal Meridian, City of Fort Collins, County of Larimer, State of Colorado, being more particularly described as follows: Considering the West line of the Southeast Quarter of said Section 16 as bearing North 00° 11’ 16” East, and with all bearing contained herein relative thereto: Commencing at the South Quarter Corner of said Section 16; thence along the West line of the Southeast Quarter, North 00° 11’ 16” East, 1096.50 feet; thence, North 88° 20' 33" West, 315.26 feet; thence, North 25° 21' 13" West, 264.37 feet; thence, North 00° 12' 15" East, 1649.54 feet; thence, South 89° 47' 45" East, 200.00 feet; thence, North 00° 12' 15" East, 216.34 feet; thence, South 83° 28' 53" East, 232.09 feet; thence, North 00° 08' 06" East, 1117.52 feet; thence, South 25° 46' 37" East, 448.11 feet; thence, South 48° 55' 44" East, 517.44 feet to the POINT OF BEGINNING; thence, South 48° 55' 47" East, 350.18 feet; thence, South 41° 04' 16" West, 130.18 feet; thence North 48° 55' 47" West, 350.18 feet; thence, North 41° 04' 16" East, 130.18 feet to the POINT OF BEGINNING. The above described Tract of land contains 45,588 square feet or 1.05 acres, more or less, and is subject to all easements and rights-of-way now on record or existing. July 19, 2018 LMS S:\Survey Jobs\892-002\Dwg\Metro District\Exhibit A - Legals\892-002_District 5.docx EXHIBIT A-7 Gateway at Prospect Metropolitan District No. 6 Legal Description Page 1 of 1 FORT COLLINS: 301 North Howes Street, Suite 100, 80521 | 970.221.4158 GREELEY: 820 8th Street, 80631 | 970.395.9880 | WEB: www.northernengineering.com Exhibit A-7 DESCRIPTION: GATEWAY AT PROSPECT METROPOLITAN DISTRICT 6 A Tract of land located in Section 16, Township 7 North, Range 68 West of the Sixth Principal Meridian, City of Fort Collins, County of Larimer, State of Colorado, being more particularly described as follows: Considering the West line of the Southeast Quarter of said Section 16 as bearing North 00° 11’ 16” East, and with all bearing contained herein relative thereto: Commencing at the South Quarter Corner of said Section 16; thence along the West line of the Southeast Quarter, North 00° 11’ 16” East, 1096.50 feet; thence, North 88° 20' 33" West, 315.26 feet; thence, North 25° 21' 13" West, 264.37 feet; thence, North 00° 12' 15" East, 1649.54 feet; thence, South 89° 47' 45" East, 200.00 feet; thence, North 00° 12' 15" East, 216.34 feet; thence, South 83° 28' 53" East, 232.09 feet; thence, North 00° 08' 06" East, 1117.52 feet; thence, South 25° 46' 37" East, 448.11 feet; thence, South 48° 55' 44" East, 517.44 feet to the POINT OF BEGINNING; thence, South 48° 55' 47" East, 350.18 feet; thence, South 41° 04' 16" West, 130.18 feet; thence North 48° 55' 47" West, 350.18 feet; thence, North 41° 04' 16" East, 130.18 feet to the POINT OF BEGINNING. The above described Tract of land contains 45,588 square feet or 1.05 acres, more or less, and is subject to all easements and rights-of-way now on record or existing. July 19, 2018 LMS S:\Survey Jobs\892-002\Dwg\Metro District\Exhibit A - Legals\892-002_District 6.docx EXHIBIT A-8 Gateway at Prospect Metropolitan District No. 7 Legal Description Page 1 of 1 FORT COLLINS: 301 North Howes Street, Suite 100, 80521 | 970.221.4158 GREELEY: 820 8th Street, 80631 | 970.395.9880 | WEB: www.northernengineering.com Exhibit A-8 DESCRIPTION: GATEWAY AT PROSPECT METROPOLITAN DISTRICT 7 A Tract of land located in Section 16, Township 7 North, Range 68 West of the Sixth Principal Meridian, City of Fort Collins, County of Larimer, State of Colorado, being more particularly described as follows: Considering the West line of the Southeast Quarter of said Section 16 as bearing North 00° 11’ 16” East, and with all bearing contained herein relative thereto: Commencing at the South Quarter Corner of said Section 16; thence along the West line of the Southeast Quarter, North 00° 11’ 16” East, 1096.50 feet; thence, North 88° 20' 33" West, 315.26 feet; thence, North 25° 21' 13" West, 264.37 feet; thence, North 00° 12' 15" East, 1649.54 feet; thence, South 89° 47' 45" East, 200.00 feet; thence, North 00° 12' 15" East, 216.34 feet; thence, South 83° 28' 53" East, 232.09 feet; thence, North 00° 08' 06" East, 1117.52 feet; thence, South 25° 46' 37" East, 448.11 feet; thence, South 48° 55' 44" East, 517.44 feet to the POINT OF BEGINNING; thence, South 48° 55' 47" East, 350.18 feet; thence, South 41° 04' 16" West, 130.18 feet; thence North 48° 55' 47" West, 350.18 feet; thence, North 41° 04' 16" East, 130.18 feet to the POINT OF BEGINNING. The above described Tract of land contains 45,588 square feet or 1.05 acres, more or less, and is subject to all easements and rights-of-way now on record or existing. July 19, 2018 LMS S:\Survey Jobs\892-002\Dwg\Metro District\Exhibit A - Legals\892-002_District 7.docx EXHIBIT B-1 Gateway at Prospect Metropolitan District Nos. 1-7 Project Area Boundary Map OVERALL DISTRICT BOUNDARY MAP 6,777,385 sq.ft. 155.59 ac INTERSTATE 25 PROSPECT ROAD OVERALL DISTRICT BOUNDARY MAP 1,013,409 sq.ft. 23.26 ac SOUTHEAST CORNER SECTION 16-T7N-R68W SOUTH QUARTER CORNER SECTION 16-T7N-R68W EAST QUARTER CORNER SECTION 16-T7N-R68W SOUTH SIXTEENTH CORNER WITNESS CORNER SECTION 15-T7N-R68W GATEWAY AT PROSPECT METROPOLITAN DISTRICTS 1 - 7 FORT COLLINS COLORADO E NGINEER ING N O R T H E RN DESCRIPTION DRAWN BY DATE PROJECT 892-001 DRAWN BY SCALE EXHIBIT B. Ruch DATE January 31, 2018 FORT COLLINS: 301 North Howes Street, Suite 100, 80521 GREELEY: 820 8th Street, 80631 970.221.4158 northernengineering.com ( IN FEET ) 1 inch = ft. 500 0 500 Feet 500 OVERALL DISTRICT BOUNDARY MAP 1" = 500' B-1 EXHIBIT B-2 Gateway at Prospect Metropolitan District No. 1 Boundary Map DISTRICT 1 210,389 sq.ft. 4.83 ac DISTRICT 1 939,998 sq.ft. 21.58 ac INTERSTATE 25 PROSPECT ROAD SOUTHEAST CORNER SECTION 16-T7N-R68W SOUTH QUARTER CORNER SECTION 16-T7N-R68W EAST QUARTER CORNER SECTION 16-T7N-R68W DISTRICT 1 45,588 sq.ft. 1.05 ac SOUTH SIXTEENTH CORNER WITNESS CORNER SECTION 15-T7N-R68W DISTRICT 1 AREA BOUNDARY MAP 1" = 500' B-2 GATEWAY AT PROSPECT METROPOLITAN DISTRICTS 1 - 7 FORT COLLINS COLORADO E NGINEER ING N O R T H E RN DESCRIPTION DRAWN BY DATE PROJECT 892-001 DRAWN BY SCALE EXHIBIT B. Ruch DATE January 31, 2018 FORT COLLINS: 301 North Howes Street, Suite 100, 80521 GREELEY: 820 8th Street, 80631 970.221.4158 northernengineering.com ( IN FEET ) 1 inch = ft. 500 0 500 Feet 500 EXHIBIT B-3 Gateway at Prospect Metropolitan District No. 2 Boundary Map DISTRICT 2 963,168 sq.ft. 22.11 ac INTERSTATE 25 PROSPECT ROAD DISTRICT 2 45,588 sq.ft. 1.05 ac SOUTHEAST CORNER SECTION 16-T7N-R68W SOUTH QUARTER CORNER SECTION 16-T7N-R68W EAST QUARTER CORNER SECTION 16-T7N-R68W SOUTH SIXTEENTH CORNER WITNESS CORNER SECTION 15-T7N-R68W DISTRICT 2 AREA BOUNDARY MAP 1" = 500' B-3 GATEWAY AT PROSPECT METROPOLITAN DISTRICTS 1 - 7 FORT COLLINS COLORADO E NGINEER ING N O R T H E RN DESCRIPTION DRAWN BY DATE PROJECT 892-001 DRAWN BY SCALE EXHIBIT B. Ruch DATE January 31, 2018 FORT COLLINS: 301 North Howes Street, Suite 100, 80521 GREELEY: 820 8th Street, 80631 970.221.4158 northernengineering.com ( IN FEET ) 1 inch = ft. 500 0 500 Feet 500 EXHIBIT B-4 Gateway at Prospect Metropolitan District No. 3-7 Boundary Map INTERSTATE 25 PROSPECT ROAD DISTRICT 3-7 45,588 sq.ft. 1.05 ac SOUTHEAST CORNER SECTION 16-T7N-R68W SOUTH QUARTER CORNER SECTION 16-T7N-R68W EAST QUARTER CORNER SECTION 16-T7N-R68W SOUTH SIXTEENTH CORNER WITNESS CORNER SECTION 15-T7N-R68W DISTRICT 3-7 AREA BOUNDARY MAP 1" = 500' B-4 GATEWAY AT PROSPECT METROPOLITAN DISTRICTS 1 - 7 FORT COLLINS COLORADO E NGINEER ING N O R T H E RN DESCRIPTION DRAWN BY DATE PROJECT 892-001 DRAWN BY SCALE EXHIBIT B. Ruch DATE January 31, 2018 FORT COLLINS: 301 North Howes Street, Suite 100, 80521 GREELEY: 820 8th Street, 80631 970.221.4158 northernengineering.com ( IN FEET ) 1 inch = ft. 500 0 500 Feet 500 EXHIBIT B-5 Gateway at Prospect Metropolitan District Nos. 1-7 Estimated Future Boundary Map INTERSTATE 25 PROSPECT ROAD SOUTHEAST CORNER SECTION 16-T7N-R68W SOUTH QUARTER CORNER SECTION 16-T7N-R68W EAST QUARTER CORNER SECTION 16-T7N-R68W DISTRICT 2 DISTRICT 1 FUTURE DISTRICT 4 POTENTIAL FUTURE INCLUSION DISTRICTS 1-7 FUTURE DISTRICT 3 SOUTH SIXTEENTH CORNER WITNESS CORNER SECTION 15-T7N-R68W 1" = 500' B-5 GATEWAY AT PROSPECT METROPOLITAN DISTRICTS 1 - 7 FORT COLLINS COLORADO E NGINEER ING N O R T H E RN DESCRIPTION DRAWN BY DATE PROJECT 892-001 DRAWN BY SCALE EXHIBIT B. Ruch DATE January 31, 2018 FORT COLLINS: 301 North Howes Street, Suite 100, 80521 GREELEY: 820 8th Street, 80631 970.221.4158 northernengineering.com DISTRICT 1 DISTRICT 2 ESTIMATED DISTRICT 3 ESTIMATED DISTRICT 4 POTENTIAL FUTURE INCLUSION FUTURE FUTURE FUTURE ESTIMATED DISTRICTS 1-7 BOUNDARY MAP DISTRICTS 1-7 ( IN FEET ) 1 inch = ft. 500 0 500 Feet 500 EXHIBIT C Gateway at Prospect Metropolitan District Nos. 1-7 Vicinity Map PROPOSED GATEWAY AT PROSPECT METROPOLITAN DISTRICT PROSPECT ROAD INTERSTATE 25 PROSPECT ROAD SUMMIT VIEW DR. GREENFIELD CT. BOXELDER DR. CARRIAGE PKWY KITCHELL WAY VICINITY MAP 1" = 1000' C GATEWAY AT PROSPECT METROPOLITAN DISTRICTS 1 - 7 FORT COLLINS COLORADO E NGINEER ING N O R T H E RN DESCRIPTION DRAWN BY DATE PROJECT 892-001 DRAWN BY SCALE EXHIBIT B. Ruch DATE January 31, 2018 FORT COLLINS: 301 North Howes Street, Suite 100, 80521 GREELEY: 820 8th Street, 80631 970.221.4158 northernengineering.com ( IN FEET ) 1 inch = ft. 1000 0 1000 Feet 1000 EXHIBIT D Gateway at Prospect Metropolitan District Nos. 1-7 Infrastructure Preliminary Development Plan Public Improvements Unit Cost Extended Cost I. Grading/Miscellaneous Mobilization / General Conditions 1 LS $4,210,000.00 $ 4,210,000.00 Clearing and Grubbing and Topsoil Stripping 180 Ac $11,900.00 $ 2,142,000.00 Earthwork (cut/fill/place) 290,400 CY $6.00 $ 1,742,400.00 Import Fill Dirt 80,000 CY $10.00 $ 800,000.00 Erosion Control / Traffic Control 1 LS $6,014,000.00 $ 6,014,000.00 Subtotal $ 14,908,400.00 II. Roadway Improvements Parking Lots 55,485 SY $70.00 $ 3,883,950.00 Access Road (24' Section) 8,298 LF $205.00 $ 1,701,090.00 Local Residential Street (51' Section) 10,368 LF $273.00 $ 2,830,464.00 Local Industrial Street (66' Section) - LF $321.00 $ - Local Commercial Street (72' Section) - LF $336.00 $ - Minor Collector Street (76' Section) 2,515 LF $431.00 $ 1,083,965.00 Roundabout 1 EA $2,500,000.00 $ 2,500,000.00 Box Culvert Bridge 1 EA $1,000,000.00 $ 1,000,000.00 Prospect Road Widening (Half 4-Lane Arterial) 2,480 LF $637.00 $ 1,579,760.00 Frontage Road Reconstruct (2-Lane Arterial 84' Section) 2,094 LF $666.00 $ 1,394,604.00 Traffic Signal Improvements 1 EA $500,000.00 $ 250,000.00 Street Lighting 1 LS $649,000.00 $ 649,000.00 Signing and Striping 1 LS $487,000.00 $ 487,000.00 Subtotal $ 17,359,833.00 III. Potable Waterline Improvements 8" Waterline 17,157 LF $90.00 $ 1,544,130.00 10" Waterline 6,983 LF $100.00 $ 698,300.00 12" Waterline 1,680 LF $112.00 $ 188,160.00 Utility Borings 300 LF $1,900.00 $ 570,000.00 Raw Water Requirements 241 AC-FT $41,428.00 $ 9,984,148.00 Off-Site Waterline Reimbursement to ELCO 1 LS $1,000,000.00 $ 1,000,000.00 Subtotal $ 13,984,738.00 IV. Sanitary Sewer and Subdrain Improvements 8" Sanitary Sewer 13,787 LF $109.00 $ 1,502,783.00 10" Sanitary Sewer 2,600 LF $114.00 $ 296,400.00 12" Sanitary Sewer - LF $124.00 $ - 27" Sanitary Sewer 2,428 LF $197.00 $ 478,316.00 8" Subdrain 18,815 LF $75.00 $ 1,411,125.00 Subdrain Connection Fee 1 LS $43,000.00 $ 43,000.00 Sanitary Sewer Repayment - LS $0.00 $ - Subtotal $ 3,731,624.00 V. Storm Drainage Improvements 24" RCP Storm Sewer 3,242 LF $191.00 $ 619,222.00 24" CMP Storm Sewer - LF $163.00 $ - 36" RCP Storm Sewer 8,888 LF $222.00 $ 1,973,136.00 48" RCP Storm Sewer 568 LF $324.00 $ 184,032.00 Outlet Structure 8 EA $10,000.00 $ 80,000.00 Water Quality 135,846 CF $6.00 $ 815,076.00 Subtotal $ 3,671,466.00 SUMMARY ESTIMATE OF PRELIMINARY DISTRICT EXPENDITURES January 31, 2018 PUBLIC IMPROVEMENT COSTS FOR GATEWAY AT PROSPECT Quantity COMBINED AREA - 178.85 ACRES Page 1 of 2 Public Improvements Unit Cost Extended Cost SUMMARY ESTIMATE OF PRELIMINARY DISTRICT EXPENDITURES January 31, 2018 PUBLIC IMPROVEMENT COSTS FOR GATEWAY AT PROSPECT Quantity COMBINED AREA - 178.85 ACRES VI. Non-Potable Irrigation Improvements 6" Non-Potable Waterline 17,047.00 LF $56.00 $ 954,632.00 Non-Potable Waterline Pumphouse 1.00 LS $450,000.00 $ 450,000.00 Non-Potable Pond and Delivery Improvements 1.00 LS $250,000.00 $ 250,000.00 Flood Irrigation System and Appurtences - LS $0.00 $ - Well Head Replacement - EA $27,500.00 $ - Raw Water Requirements 300.00 AC-FT $10,666.00 $ 3,199,800.00 Subtotal $ 4,854,432.00 VII. Open Space, Parks and Trails Structural Demolition - LS $0.00 $ - Natural Area Open Space 46 AC $108,900.00 $ 5,009,400.00 Landscaped Open Space 16 AC $239,580.00 $ 3,833,280.00 Regional Trails 9,131 LF $160.00 $ 1,460,960.00 Monument Signs 2 EA $75,000.00 $ 150,000.00 Pocket Park and Park Amenities 1 EA $150,000.00 $ 150,000.00 Open Space Acquisition 62 AC $20,000.00 $ 1,240,000.00 Subtotal $ 11,843,640.00 VIII. Admin. / Design / Permitting / Etc. Engineering / Surveying 1 LS $7,036,000.00 $ 7,036,000.00 Construction Management / Inspection / Testing 1 LS $10,554,000.00 $ 10,554,000.00 Admin. / Planning / Permitting 1 LS $2,111,000.00 $ 2,111,000.00 Subtotal $ 19,701,000.00 Infrastructure Subtotal $ 90,055,133.00 Contingency (20%) $ 18,011,027.00 Total Cost $ 108,066,160.00 Page 2 of 2 ROUNDABOUT BRIDGE INTERSTATE 25 PROSPECT ROAD STREET MAP 1" = 500' LEGEND: GATEWAY AT PROSPECT METROPOLITAN DISTRICTS 1 - 7 FORT COLLINS COLORADO E NGINEER ING N O R T H E RN DESCRIPTION DRAWN BY DATE PROJECT 892-001 DRAWN BY SCALE EXHIBIT B. Ruch DATE January 31, 2018 FORT COLLINS: 301 North Howes Street, Suite 100, 80521 GREELEY: 820 8th Street, 80631 970.221.4158 northernengineering.com STREETS OWNED AND MAINTAINED BY THE CITY OF FORT COLLINS COLLECTOR STREET LOCAL STREET ACCESS ROAD LEGEND: PARKING AREA D FIGURE 1 OF 6 1 2 4-LANE ARTERIAL NOTE: LOCAL STREETS STREET AND ASSOCIATED UTILITIES ARE CONCEPTUAL AND MAY CHANGE AS DEVELOPMENT OCCURS. 2-LANE ARTERIAL STREET ( IN FEET ) 1 inch = ft. 500 0 500 Feet 500 W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W 10" WATER LINE BORE 8" WATER 10" WATER 12" WATER INTERSTATE 25 PROSPECT ROAD CASING 10" WATER LINE BORE POTABLE WATER MAP 1" = 500' GATEWAY AT PROSPECT METROPOLITAN DISTRICTS 1 - 7 FORT COLLINS COLORADO E NGINEER ING N O R T H E RN DESCRIPTION DRAWN BY DATE PROJECT 892-001 DRAWN BY SCALE EXHIBIT B. Ruch DATE January 31, 2018 FORT COLLINS: 301 North Howes Street, Suite 100, 80521 GREELEY: 820 8th Street, 80631 970.221.4158 SS SD SS SD SS SD SS SS SS SD SS SS SD SD SS SS SD SD SS SD SD SS SD SS SS SD SS SD SS SS SS SD SD SD SS SD SS SS SD SD SS SD SS SD SS SD SS SD SANITARY SEWER BORE 8" SANITARY SEWER 10" SANITARY SEWER 27" SANITARY SEWER 8" SUBDRAIN INTERSTATE 25 PROSPECT ROAD SD TIE TO BOXELDER SANITATION TIE TO BOXELDER SANITATION SUBDRAIN OFF-SITE TIE TO BOXELDER SANITATION SANITARY SEWER & SUBDRAIN MAP 1" = 500' ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST 24" STORM DRAIN 36" STORM DRAIN 48" STORM DRAIN BRIDGE INTERSTATE 25 PROSPECT ROAD STORM DRAINAGE MAP 1" = 500' GATEWAY AT PROSPECT METROPOLITAN DISTRICTS 1 - 7 FORT COLLINS COLORADO E NGINEER ING N O R T H E RN DESCRIPTION DRAWN BY DATE PROJECT 892-001 DRAWN BY SCALE EXHIBIT B. Ruch DATE January 31, 2018 FORT COLLINS: 301 North Howes Street, Suite 100, 80521 GREELEY: 820 8th Street, 80631 970.221.4158 northernengineering.com LEGEND: ALL STORM DRAINS WITHIN RIGHT-OF-WAY TO BE OWNED AND MAINTAINED BY CITY OF FORT COLLINS. ALL STORM DRAINS OUTSIDE OF RIGHT-OF-WAY TO BE OWNED AND MAINTAINED BY METRO DISTRICT. 24" RCP STORM DRAIN LINE ST DIRECTION OF CONVEYANCE DETENTION AREA 36" RCP STORM DRAIN LINE ST 48" RCP STORM DRAIN LINE IRR IRR IRR IRR IRR IRR IRR IRR IRR IRR IRR IRR IRR IRR IRR IRR IRR IRR IRR IRR IRR IRR IRR IRR IRR IRR 8" NON-POTABLE IRRIGATION IRRIGATION POND & PUMP HOUSE INTERSTATE 25 PROSPECT ROAD NON-POTABLE IRRIGATION MAP 1" = 500' GATEWAY AT PROSPECT METROPOLITAN DISTRICTS 1 - 7 FORT COLLINS COLORADO E NGINEER ING N O R T H E RN DESCRIPTION DRAWN BY DATE PROJECT 892-001 DRAWN BY SCALE EXHIBIT B. Ruch DATE January 31, 2018 FORT COLLINS: 301 North Howes Street, Suite 100, 80521 GREELEY: 820 8th Street, 80631 970.221.4158 northernengineering.com LEGEND: NON-POTABLE IRRIGATION LINE - ALL LINES ARE 8" PVC. LEGEND: IRR D FIGURE 5 OF 6 NOTE: LOCAL STREETS AND ASSOCIATED UTILITIES ARE CONCEPTUAL AND MAY CHANGE AS DEVELOPMENT OCCURS. ( IN FEET ) 1 inch = ft. INTERSTATE 25 PROSPECT ROAD * OPEN SPACE, PARKS, & TRAILS MAP 1" = 500' GATEWAY AT PROSPECT METROPOLITAN DISTRICTS 1 - 7 FORT COLLINS COLORADO E NGINEER ING N O R T H E RN DESCRIPTION DRAWN BY DATE PROJECT 892-001 DRAWN BY SCALE EXHIBIT B. Ruch DATE January 31, 2018 FORT COLLINS: 301 North Howes Street, Suite 100, 80521 GREELEY: 820 8th Street, 80631 970.221.4158 northernengineering.com LEGEND: CONNECTIVITY LANDSCAPING w/ TRAILS NATURAL AREA OPEN SPACE LANDSCAPED OPEN SPACE D FIGURE 6 OF 6 LEGEND: NOTE: LOCAL STREETS AND ASSOCIATED UTILITIES ARE CONCEPTUAL AND MAY CHANGE AS DEVELOPMENT OCCURS. ( IN FEET ) 1 inch = ft. 500 0 500 Feet 500 * POCKET PARK EXHIBIT E Gateway at Prospect Metropolitan District Nos. 1-7 Financial Plan Series 2020 Series 2036 TOTAL Percent of Total Sources Par $ 67,005,000 $ 121,720,000 $ 188,725,000 95% Funds on Hand $ ‐ $ 10,027,500 $ 10,027,500 5% TOTAL: $ 67,005,000 $ 131,747,500 $ 198,752,500 Uses Project Fund $ 49,176,650 $ 66,262,490 $ 115,439,140 58% Refunding Proceeds $ 58,715,000 $ 58,715,000 30% Capitalized Interest $ 10,050,750 $ 431,092 $ 10,481,842 5% Reserve Fund $ 6,137,500 $ 5,530,319 $ 11,667,819 6% Costs of Issuance $ 1,640,100 $ 808,600 $ 2,448,700 1% TOTAL: $ 67,005,000 $ 131,747,500 $ 198,752,500 Gateway at Prospect Metropolitan Districts 1 GATEWAY @ PROSPECT METROPOLITAN DISTRICT Nos. 1-7 (Residential & Commercial) 1 Development Projection at 50.000 (target) Residential Mills +50.000 (target) Commercial Mills for Debt Service (SERVICE PLAN) -- 01/30/2018 2050 Series 2036, G.O. Bonds, Pay & Cancel Refg of (proposed) Series 2020 + New Money, Assumes Investment Grade, 100x, 30-yr. Maturity 2049 Total District District District Total District District District Assessed D/S Mill Levy* D/S Mill Levy S.O. Taxes Assessed D/S Mill Levy* D/S Mill Levy S.O. Taxes Total Value [50.000 Target] Collections Collected Value [50.000 Target] Collections Collected Available YEAR (Residential) [50.000 Cap] @ 98% @ 6% (Commercial) [50.000 Cap] @ 98% @ 6% Revenue 2017 2018 $0 2019 $0 50.000 0 0 $0 50.000 0 0 0 2020 0 50.000 0 0 0 50.000 0 0 0 2021 2,530,540 50.000 123,996 7,440 1,126,560 50.000 55,201 3,312 189,950 2022 9,067,082 50.000 444,287 26,657 12,412,291 50.000 608,202 36,492 1,115,639 2023 14,815,635 50.000 725,966 43,558 19,751,182 50.000 967,808 58,068 1,795,400 2024 18,327,677 50.000 898,056 53,883 28,380,429 50.000 1,390,641 83,438 2,426,019 2025 18,327,677 50.000 898,056 53,883 36,524,948 50.000 1,789,722 107,383 2,849,045 2026 19,427,338 50.000 951,940 57,116 50,965,506 50.000 2,497,310 149,839 3,656,204 2027 19,427,338 50.000 951,940 57,116 50,965,506 50.000 2,497,310 149,839 3,656,204 2028 20,592,978 50.000 1,009,056 60,543 54,023,436 50.000 2,647,148 158,829 3,875,577 2029 20,592,978 50.000 1,009,056 60,543 54,023,436 50.000 2,647,148 158,829 3,875,577 2030 21,828,557 50.000 1,069,599 64,176 57,264,843 50.000 2,805,977 168,359 4,108,111 2031 21,828,557 50.000 1,069,599 64,176 57,264,843 50.000 2,805,977 168,359 4,108,111 2032 23,138,270 50.000 1,133,775 68,027 60,700,733 50.000 2,974,336 178,460 4,354,598 2033 23,138,270 50.000 1,133,775 68,027 60,700,733 50.000 2,974,336 178,460 4,354,598 2034 24,526,566 50.000 1,201,802 72,108 64,342,777 50.000 3,152,796 189,168 4,615,874 2035 24,526,566 50.000 1,201,802 72,108 64,342,777 50.000 3,152,796 189,168 4,615,874 2036 25,998,160 50.000 1,273,910 76,435 68,203,344 50.000 3,341,964 200,518 4,892,826 2037 25,998,160 50.000 1,273,910 76,435 68,203,344 50.000 3,341,964 200,518 4,892,826 2038 27,558,050 50.000 1,350,344 81,021 72,295,544 50.000 3,542,482 212,549 5,186,396 2039 27,558,050 50.000 1,350,344 81,021 72,295,544 50.000 3,542,482 212,549 5,186,396 2040 29,211,533 50.000 1,431,365 85,882 76,633,277 50.000 3,755,031 225,302 5,497,579 2041 29,211,533 50.000 1,431,365 85,882 76,633,277 50.000 3,755,031 225,302 5,497,579 2042 30,964,225 50.000 1,517,247 91,035 81,231,274 50.000 3,980,332 238,820 5,827,434 2043 30,964,225 50.000 1,517,247 91,035 81,231,274 50.000 3,980,332 238,820 5,827,434 2044 32,822,079 50.000 1,608,282 96,497 86,105,150 50.000 4,219,152 253,149 6,177,080 2045 32,822,079 50.000 1,608,282 96,497 86,105,150 50.000 4,219,152 253,149 6,177,080 2046 34,791,403 50.000 1,704,779 102,287 91,271,459 50.000 4,472,302 268,338 6,547,705 2047 34,791,403 50.000 1,704,779 102,287 91,271,459 50.000 4,472,302 268,338 6,547,705 2048 36,878,887 50.000 1,807,065 108,424 96,747,747 50.000 4,740,640 284,438 6,940,567 2049 36,878,887 50.000 1,807,065 108,424 96,747,747 50.000 4,740,640 284,438 6,940,567 2050 39,091,621 50.000 1,915,489 114,929 102,552,612 50.000 5,025,078 301,505 7,357,001 2051 39,091,621 50.000 1,915,489 114,929 102,552,612 50.000 5,025,078 301,505 7,357,001 2052 41,437,118 50.000 2,030,419 121,825 108,705,768 50.000 5,326,583 319,595 7,798,422 2053 41,437,118 50.000 2,030,419 121,825 108,705,768 50.000 5,326,583 319,595 7,798,422 2054 43,923,345 50.000 2,152,244 129,135 115,228,114 50.000 5,646,178 338,771 8,266,327 2055 43,923,345 50.000 2,152,244 129,135 115,228,114 50.000 5,646,178 338,771 8,266,327 2056 46,558,746 50.000 2,281,379 136,883 122,141,801 50.000 5,984,948 359,097 8,762,306 2057 46,558,746 50.000 2,281,379 136,883 122,141,801 50.000 5,984,948 359,097 8,762,306 2058 49,352,270 50.000 2,418,261 145,096 129,470,309 50.000 6,344,045 380,643 9,288,045 2059 49,352,270 50.000 2,418,261 145,096 129,470,309 50.000 6,344,045 380,643 9,288,045 2060 52,313,407 50.000 2,563,357 153,801 137,238,528 50.000 6,724,688 403,481 9,845,327 2061 52,313,407 50.000 2,563,357 153,801 137,238,528 50.000 6,724,688 403,481 9,845,327 2062 55,452,211 50.000 2,717,158 163,030 145,472,839 50.000 7,128,169 427,690 10,436,047 2063 55,452,211 50.000 2,717,158 163,030 145,472,839 50.000 7,128,169 427,690 10,436,047 2064 58,779,344 50.000 2,880,188 172,811 154,201,210 50.000 7,555,859 453,352 11,062,210 2065 58,779,344 50.000 2,880,188 172,811 154,201,210 50.000 7,555,859 453,352 11,062,210 2066 62,306,104 50.000 3,052,999 183,180 163,453,282 50.000 8,009,211 480,553 11,725,943 1 2050 2049 YEAR 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059 2060 2061 2062 2063 2064 2065 2066 GATEWAY @ PROSPECT METROPOLITAN DISTRICT Nos. 1-7 (Residential & Commercial) Development Projection at 50.000 (target) Residential Mills +50.000 (target) Commercial Mills for Debt Service (SERVICE PLAN) -- 01/30/2018 Series 2036, G.O. Bonds, Pay & Cancel Refg of (proposed) Series 2020 + New Money, Assumes Investment Grade, 100x, 30-yr. Maturity Ser. 2020 Ser. 2036 $67,005,000 Par $121,720,000 Par Surplus Cov. of Net DS: Cov. of Net DS: [Net $49.177 MM] [Net $66.262 MM] Total Annual Release @ Cumulative Debt/ @ Res'l Target @ Res'l Cap GATEWAY @ PROSPECT METROPOLITAN DISTRICT Nos. 1-7 (Residential) 1 Development Projection at 50.000 (target) District Mills for Debt Service -- 01/30/2018 2050 Assessed Value Summary 2049 < < < < < < < < Residential > > > > > > > > < Platted/Developed Lots > < < < < < < < < < < Commercial > > > > > > > > > > Mkt Value As'ed Value As'ed Value Mkt Value As'ed Value Biennial @ 7.20% @ 29.00% Biennial @ 29.00% Total Total Reasses'mt Cumulative of Market Cumulative of Market Total Comm'l Reasses'mt Cumulative of Market Assessed YEAR Res'l Units @ 6.0% Market Value (2-yr lag) Market Value (2-yr lag) Sq. Ft. @ 6.0% Market Value (2-yr lag) Value 2017 0 0 0 0 0 2018 0 0 0 0 0 0 0 2019 0 0 0 8,726,000 0 0 0 0 $0 2020 266 0 90,785,304 0 8,726,000 0 0 0 0 0 0 2021 266 183,386,314 0 5,558,000 2,530,540 0 0 0 2,530,540 2022 124 11,003,179 254,551,072 6,536,542 0 2,530,540 0 0 0 0 9,067,082 2023 0 254,551,072 13,203,815 0 1,611,820 0 0 0 14,815,635 2024 0 15,273,064 269,824,137 18,327,677 0 0 0 0 0 0 18,327,677 2025 0 269,824,137 18,327,677 0 0 0 0 0 18,327,677 2026 0 16,189,448 286,013,585 19,427,338 0 0 0 0 0 0 19,427,338 2027 0 286,013,585 19,427,338 0 0 0 0 0 19,427,338 2028 0 17,160,815 303,174,400 20,592,978 0 0 0 0 0 0 20,592,978 2029 0 303,174,400 20,592,978 0 0 0 0 0 20,592,978 2030 0 18,190,464 321,364,864 21,828,557 0 0 0 0 0 0 21,828,557 2031 0 321,364,864 21,828,557 0 0 0 0 0 21,828,557 2032 0 19,281,892 340,646,756 23,138,270 0 0 0 0 0 0 23,138,270 2033 0 340,646,756 23,138,270 0 0 0 0 0 23,138,270 2034 0 20,438,805 361,085,561 24,526,566 0 0 0 0 0 0 24,526,566 2035 0 361,085,561 24,526,566 0 0 0 0 0 24,526,566 2036 0 21,665,134 382,750,695 25,998,160 0 0 0 0 0 0 25,998,160 2037 0 382,750,695 25,998,160 0 0 0 0 0 25,998,160 2038 22,965,042 405,715,737 27,558,050 0 0 0 0 0 27,558,050 2039 405,715,737 27,558,050 0 0 0 0 27,558,050 2040 24,342,944 430,058,681 29,211,533 0 0 0 0 0 29,211,533 2041 430,058,681 29,211,533 0 0 0 0 29,211,533 2042 25,803,521 455,862,202 30,964,225 0 0 0 0 0 30,964,225 2043 455,862,202 30,964,225 0 0 0 0 30,964,225 2044 27,351,732 483,213,934 32,822,079 0 0 0 0 0 32,822,079 2045 483,213,934 32,822,079 0 0 0 0 32,822,079 2046 28,992,836 512,206,770 34,791,403 0 0 0 0 0 34,791,403 2047 512,206,770 34,791,403 0 0 0 0 34,791,403 2048 30,732,406 542,939,176 36,878,887 0 0 0 0 0 36,878,887 2049 542,939,176 36,878,887 0 0 0 0 36,878,887 2050 32,576,351 575,515,526 39,091,621 0 0 0 0 0 39,091,621 2051 575,515,526 39,091,621 0 0 0 0 39,091,621 2052 34,530,932 610,046,458 41,437,118 0 0 0 0 0 41,437,118 2053 610,046,458 41,437,118 0 0 0 0 41,437,118 2054 36,602,787 646,649,246 43,923,345 0 0 0 0 0 43,923,345 2055 646,649,246 43,923,345 0 0 0 0 43,923,345 2056 38,798,955 685,448,200 46,558,746 0 0 0 0 0 46,558,746 2057 685,448,200 46,558,746 0 0 0 0 46,558,746 2058 41,126,892 726,575,092 49,352,270 0 0 0 0 0 49,352,270 2059 726,575,092 49,352,270 0 0 0 0 49,352,270 2060 43,594,506 770,169,598 52,313,407 0 0 0 0 0 52,313,407 2061 770,169,598 52,313,407 0 0 0 0 52,313,407 2062 46,210,176 816,379,774 55,452,211 0 0 0 0 0 55,452,211 2063 816,379,774 55,452,211 0 0 0 0 55,452,211 2064 48,982,786 865,362,560 58,779,344 0 0 0 0 0 58,779,344 2065 865,362,560 58,779,344 0 0 0 0 58,779,344 2066 51,921,754 917,284,314 62,306,104 0 0 0 0 0 62,306,104 GATEWAY @ PROSPECT METROPOLITAN DISTRICT Nos. 1-7 (Residential) Development Summary Development Projection -- Buildout Plan (updated 1/23/18) Residential Development Product Type Apts TH Condo SFD - Standard SFD - Premier Base $ ('18) $215,000 $375,000 $385,000 $475,000 $575,000 Res'l Totals 2017 - - - - - - 2018 - - - - - - 2019 - - - - - - 2020 138 29 29 47 23 266 2021 138 29 29 47 23 266 2022 - 29 28 46 21 124 2023 - - - - - - 2024 - - - - - - 2025 - - - - - - 2026 - - - - - - 2027 - - - - - - 2028 - - - - - - 2029 - - - - - - 2030 - - - - - - 2031 - - - - - - 2032 - - - - - - 2033 - - - - - - 2034 - - - - - - 2035 - - - - - - 2036 - - - - - - 2037 - - - - - - 276 87 86 140 67 656 MV @ Full Buildout $59,340,000 $32,625,000 $33,110,000 $66,500,000 $38,525,000 $230,100,000 (base prices;un-infl.) notes: Platted/Dev Lots = 10% MV; one-yr prior Base MV $ inflated 2% per annum 1/30/2018 C G@PMD#1-7 Fin Plan 18 R Dev Summ Prepared by D.A. Davidson & Co. 5 GATEWAY @ PROSPECT METROPOLITAN DISTRICT Nos. 1-7 (Commercial) 1 Development Projection at 50.000 (target) District Mills for Debt Service -- 01/30/2018 2050 Assessed Value Summary 2049 < < < < < < < < Residential > > > > > > > > < Platted/Developed Lots > < < < < < < < < < < Commercial > > > > > > > > > > Mkt Value As'ed Value As'ed Value Mkt Value As'ed Value Biennial @ 7.20% @ 29.00% Biennial @ 29.00% Total Total Reasses'mt Cumulative of Market Cumulative of Market Total Comm'l Reasses'mt Cumulative of Market Assessed YEAR Res'l Units @ 6.0% Market Value (2-yr lag) Market Value (2-yr lag) Sq. Ft. @ 6.0% Market Value (2-yr lag) Value 2017 0 0 0 0 0 2018 0 0 0 0 0 0 0 2019 0 0 0 3,884,690 0 0 0 0 $0 2020 0 0 0 0 2,384,690 0 100,299 0 40,416,315 0 0 2021 0 0 0 2,384,690 1,126,560 100,299 65,722,836 0 1,126,560 2022 0 0 0 0 2,384,690 691,560 100,299 3,943,370 95,478,857 11,720,731 12,412,291 2023 0 0 0 4,140,335 691,560 100,299 121,807,762 19,059,622 19,751,182 2024 0 0 0 0 0 691,560 113,084 7,308,466 175,743,124 27,688,869 28,380,429 2025 0 0 0 0 1,200,697 0 175,743,124 35,324,251 36,524,948 2026 0 0 0 0 0 0 0 10,544,587 186,287,712 50,965,506 50,965,506 2027 0 0 0 0 0 0 186,287,712 50,965,506 50,965,506 2028 0 0 0 0 0 0 0 11,177,263 197,464,975 54,023,436 54,023,436 2029 0 0 0 0 0 0 197,464,975 54,023,436 54,023,436 2030 0 0 0 0 0 0 0 11,847,898 209,312,873 57,264,843 57,264,843 2031 0 0 0 0 0 0 209,312,873 57,264,843 57,264,843 2032 0 0 0 0 0 0 0 12,558,772 221,871,646 60,700,733 60,700,733 2033 0 0 0 0 0 0 221,871,646 60,700,733 60,700,733 2034 0 0 0 0 0 0 0 13,312,299 235,183,944 64,342,777 64,342,777 2035 0 0 0 0 0 0 235,183,944 64,342,777 64,342,777 2036 0 0 0 0 0 0 0 14,111,037 249,294,981 68,203,344 68,203,344 2037 0 0 0 0 0 0 249,294,981 68,203,344 68,203,344 2038 0 0 0 0 0 14,957,699 264,252,680 72,295,544 72,295,544 2039 0 0 0 0 264,252,680 72,295,544 72,295,544 2040 0 0 0 0 0 15,855,161 280,107,841 76,633,277 76,633,277 2041 0 0 0 0 280,107,841 76,633,277 76,633,277 2042 0 0 0 0 0 16,806,470 296,914,311 81,231,274 81,231,274 2043 0 0 0 0 296,914,311 81,231,274 81,231,274 2044 0 0 0 0 0 17,814,859 314,729,170 86,105,150 86,105,150 2045 0 0 0 0 314,729,170 86,105,150 86,105,150 2046 0 0 0 0 0 18,883,750 333,612,920 91,271,459 91,271,459 2047 0 0 0 0 333,612,920 91,271,459 91,271,459 2048 0 0 0 0 0 20,016,775 353,629,695 96,747,747 96,747,747 2049 0 0 0 0 353,629,695 96,747,747 96,747,747 2050 0 0 0 0 0 21,217,782 374,847,477 102,552,612 102,552,612 2051 0 0 0 0 374,847,477 102,552,612 102,552,612 2052 0 0 0 0 0 22,490,849 397,338,325 108,705,768 108,705,768 2053 0 0 0 0 397,338,325 108,705,768 108,705,768 2054 0 0 0 0 0 23,840,300 421,178,625 115,228,114 115,228,114 2055 0 0 0 0 421,178,625 115,228,114 115,228,114 2056 0 0 0 0 0 25,270,717 446,449,342 122,141,801 122,141,801 2057 0 0 0 0 446,449,342 122,141,801 122,141,801 2058 0 0 0 0 0 26,786,961 473,236,303 129,470,309 129,470,309 2059 0 0 0 0 473,236,303 129,470,309 129,470,309 2060 0 0 0 0 0 28,394,178 501,630,481 137,238,528 137,238,528 2061 0 0 0 0 501,630,481 137,238,528 137,238,528 2062 0 0 0 0 0 30,097,829 531,728,310 145,472,839 145,472,839 2063 0 0 0 0 531,728,310 145,472,839 145,472,839 2064 0 0 0 0 0 31,903,699 563,632,008 154,201,210 154,201,210 2065 0 0 0 0 563,632,008 154,201,210 154,201,210 2066 0 0 0 0 0 33,817,921 597,449,929 163,453,282 163,453,282 GATEWAY @ PROSPECT METROPOLITAN DISTRICT Nos. 1-7 (Commercial) Development Summary Development Projection -- Buildout Plan (updated 1/23/18) Commercial Development Product Type Retail Office Restaurant Emp. Office/Research Emp. Medical/Wellness Hotel Base $ ('18) $250/sf $200/sf $300/sf $200/sf $250/sf $125,000/Rm Comm'l Totals* 2017 - - - - - - - 2018 - - - - - - - 2019 - - - - - - - 2020 28,151 - 7,678 32,235 32,235 120 100,299 2021 28,151 - 7,678 32,235 32,235 - 100,299 2022 28,151 - 7,678 32,235 32,235 - 100,299 2023 28,151 - 7,678 32,235 32,235 - 100,299 2024 28,149 12,796 7,675 32,232 32,232 120 113,084 2025 - - - - - - - 2026 - - - - - - - 2027 - - - - - - - 2028 - - - - - - - 2029 - - - - - - - 2030 - - - - - - - 2031 - - - - - - - 2032 - - - - - - - 2033 - - - - - - - 2034 - - - - - - - 2035 - - - - - - - 2036 - - - - - - - 2037 - - - - - - - 140,753 12,796 38,387 161,172 161,172 240 514,280 MV @ Full Buildout $35,188,250 $2,559,200 $11,516,100 $32,234,400 $40,293,000 $30,000,000 $151,790,950 (base prices;un-infl.) [*] Not Including Hotels; presented in Rooms. notes: Platted/Dev Lots = 10% MV; one-yr prior Base MV $ inflated 2% per annum 1/30/2018 C G@PMD#1-7 Fin Plan 18 C Dev Summ Prepared by D.A. Davidson & Co. 7 Jan 30, 2018 8:16 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Gateway @ Prospect MD 18 (fk...:CJAN3018-20NRSPC) SOURCES AND USES OF FUNDS GATEWAY @ PROSPECT METROPOLITAN DISTRICT Nos. 1-7 (Residential + Commercial) GENERAL OBLIGATION BONDS, SERIES 2020 50.000 (target) Residential Mills + 50.000 (target) Commercial Mills Non-Rated, 105x, 30-yr. Maturity (Full Growth + 6.00% Bi-Reassessment Projections) [ Preliminary -- for discsussion only ] Dated Date 12/01/2020 Delivery Date 12/01/2020 Sources: Bond Proceeds: Par Amount 67,005,000.00 67,005,000.00 Uses: Project Fund Deposits: Project Fund 49,176,650.00 Other Fund Deposits: Capitalized Interest Fund 10,050,750.00 Debt Service Reserve Fund 6,137,500.00 16,188,250.00 Delivery Date Expenses: Cost of Issuance 300,000.00 Underwriter's Discount 1,340,100.00 1,640,100.00 67,005,000.00 8 Jan 30, 2018 8:27 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Gateway @ Prospe...:CJAN3018-36IGR20C,36IGR20C) SOURCES AND USES OF FUNDS GATEWAY @ PROSPECT METROPOLITAN DISTRICT Nos. 1-7 (Residential + Commercial) GENERAL OBLIGATION REFUNDING & IMPROVEMENT BONDS, SERIES 2036 Pay & Cancel Refunding of (proposed) Series 2020 + New Money 50.000 (target) Residential Mills + 50.000 (target) Commercial Mills Assumes Investment Grade, 100x, 30-yr. Maturity (Full Growth + 6% Bi-Reassessment Projections) [ Preliminary -- for discsussion only ] Dated Date 12/01/2036 Delivery Date 12/01/2036 Sources: Bond Proceeds: Par Amount 121,720,000.00 Other Sources of Funds: Funds on Hand* 3,890,000.00 Series 2020 - DSRF 6,137,500.00 10,027,500.00 131,747,500.00 Uses: Project Fund Deposits: Project Fund 66,262,489.58 Refunding Escrow Deposits: Cash Deposit* 58,715,000.00 Other Fund Deposits: Capitalized Interest Fund 431,091.67 Debt Service Reserve Fund 5,530,318.75 5,961,410.42 Delivery Date Expenses: Cost of Issuance 200,000.00 Underwriter's Discount 608,600.00 808,600.00 131,747,500.00 [*] Estimated balances (tbd). 9 Jan 30, 2018 8:27 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Gateway @ Prospe...:CJAN3018-36IGR20C,36IGR20C) BOND SUMMARY STATISTICS GATEWAY @ PROSPECT METROPOLITAN DISTRICT Nos. 1-7 (Residential + Commercial) GENERAL OBLIGATION REFUNDING & IMPROVEMENT BONDS, SERIES 2036 Pay & Cancel Refunding of (proposed) Series 2020 + New Money 50.000 (target) Residential Mills + 50.000 (target) Commercial Mills Assumes Investment Grade, 100x, 30-yr. Maturity (Full Growth + 6% Bi-Reassessment Projections) [ Preliminary -- for discsussion only ] Dated Date 12/01/2036 Delivery Date 12/01/2036 First Coupon 06/01/2037 Last Maturity 12/01/2066 Arbitrage Yield 4.250000% True Interest Cost (TIC) 4.285260% Net Interest Cost (NIC) 4.250000% All-In TIC 4.296902% Average Coupon 4.250000% Average Life (years) 22.931 Weighted Average Maturity (years) 22.931 Duration of Issue (years) 14.506 Par Amount 121,720,000.00 Bond Proceeds 121,720,000.00 Total Interest 118,622,812.50 Net Interest 119,231,412.50 Bond Years from Dated Date 2,791,125,000.00 Bond Years from Delivery Date 2,791,125,000.00 Total Debt Service 240,342,812.50 Maximum Annual Debt Service 17,253,375.00 Average Annual Debt Service 8,011,427.08 Underwriter's Fees (per $1000) Average Takedown Other Fee 5.000000 Total Underwriter's Discount 5.000000 Bid Price 99.500000 Average Par Average Average Maturity PV of 1 bp Bond Component Value Price Coupon Life Date change Term Bond due 2066 121,720,000.00 100.000 4.250% 22.931 11/06/2059 205,706.80 121,720,000.00 22.931 205,706.80 All-In Arbitrage TIC TIC Yield Par Value 121,720,000.00 121,720,000.00 121,720,000.00 + Accrued Interest + Premium (Discount) - Underwriter's Discount -608,600.00 -608,600.00 - Cost of Issuance Expense -200,000.00 - Other Amounts Target Value 121,111,400.00 120,911,400.00 121,720,000.00 Target Date 12/01/2036 12/01/2036 12/01/2036 Yield 4.285260% 4.296902% 4.250000% 10 Jan 30, 2018 8:27 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Gateway @ Prospe...:CJAN3018-36IGR20C,36IGR20C) BOND DEBT SERVICE GATEWAY @ PROSPECT METROPOLITAN DISTRICT Nos. 1-7 (Residential + Commercial) GENERAL OBLIGATION REFUNDING & IMPROVEMENT BONDS, SERIES 2036 Pay & Cancel Refunding of (proposed) Series 2020 + New Money 50.000 (target) Residential Mills + 50.000 (target) Commercial Mills Assumes Investment Grade, 100x, 30-yr. Maturity (Full Growth + 6% Bi-Reassessment Projections) [ Preliminary -- for discsussion only ] Period Annual Ending Principal Coupon Interest Debt Service Debt Service 06/01/2037 2,586,550.00 2,586,550.00 12/01/2037 2,586,550.00 2,586,550.00 5,173,100.00 06/01/2038 2,586,550.00 2,586,550.00 12/01/2038 10,000 4.250% 2,586,550.00 2,596,550.00 5,183,100.00 06/01/2039 2,586,337.50 2,586,337.50 12/01/2039 10,000 4.250% 2,586,337.50 2,596,337.50 5,182,675.00 06/01/2040 2,586,125.00 2,586,125.00 12/01/2040 325,000 4.250% 2,586,125.00 2,911,125.00 5,497,250.00 06/01/2041 2,579,218.75 2,579,218.75 12/01/2041 335,000 4.250% 2,579,218.75 2,914,218.75 5,493,437.50 06/01/2042 2,572,100.00 2,572,100.00 12/01/2042 680,000 4.250% 2,572,100.00 3,252,100.00 5,824,200.00 06/01/2043 2,557,650.00 2,557,650.00 12/01/2043 710,000 4.250% 2,557,650.00 3,267,650.00 5,825,300.00 06/01/2044 2,542,562.50 2,542,562.50 12/01/2044 1,090,000 4.250% 2,542,562.50 3,632,562.50 6,175,125.00 06/01/2045 2,519,400.00 2,519,400.00 12/01/2045 1,135,000 4.250% 2,519,400.00 3,654,400.00 6,173,800.00 06/01/2046 2,495,281.25 2,495,281.25 12/01/2046 1,555,000 4.250% 2,495,281.25 4,050,281.25 6,545,562.50 06/01/2047 2,462,237.50 2,462,237.50 12/01/2047 1,620,000 4.250% 2,462,237.50 4,082,237.50 6,544,475.00 06/01/2048 2,427,812.50 2,427,812.50 12/01/2048 2,080,000 4.250% 2,427,812.50 4,507,812.50 6,935,625.00 06/01/2049 2,383,612.50 2,383,612.50 12/01/2049 2,170,000 4.250% 2,383,612.50 4,553,612.50 6,937,225.00 06/01/2050 2,337,500.00 2,337,500.00 12/01/2050 2,680,000 4.250% 2,337,500.00 5,017,500.00 7,355,000.00 06/01/2051 2,280,550.00 2,280,550.00 12/01/2051 2,795,000 4.250% 2,280,550.00 5,075,550.00 7,356,100.00 06/01/2052 2,221,156.25 2,221,156.25 12/01/2052 3,355,000 4.250% 2,221,156.25 5,576,156.25 7,797,312.50 06/01/2053 2,149,862.50 2,149,862.50 12/01/2053 3,495,000 4.250% 2,149,862.50 5,644,862.50 7,794,725.00 06/01/2054 2,075,593.75 2,075,593.75 12/01/2054 4,115,000 4.250% 2,075,593.75 6,190,593.75 8,266,187.50 06/01/2055 1,988,150.00 1,988,150.00 12/01/2055 4,290,000 4.250% 1,988,150.00 6,278,150.00 8,266,300.00 06/01/2056 1,896,987.50 1,896,987.50 12/01/2056 4,965,000 4.250% 1,896,987.50 6,861,987.50 8,758,975.00 06/01/2057 1,791,481.25 1,791,481.25 12/01/2057 5,175,000 4.250% 1,791,481.25 6,966,481.25 8,757,962.50 06/01/2058 1,681,512.50 1,681,512.50 12/01/2058 5,925,000 4.250% 1,681,512.50 7,606,512.50 9,288,025.00 06/01/2059 1,555,606.25 1,555,606.25 12/01/2059 6,175,000 4.250% 1,555,606.25 7,730,606.25 9,286,212.50 06/01/2060 1,424,387.50 1,424,387.50 12/01/2060 6,995,000 4.250% 1,424,387.50 8,419,387.50 9,843,775.00 06/01/2061 1,275,743.75 1,275,743.75 Jan 30, 2018 8:27 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Gateway @ Prospe...:CJAN3018-36IGR20C,36IGR20C) NET DEBT SERVICE GATEWAY @ PROSPECT METROPOLITAN DISTRICT Nos. 1-7 (Residential + Commercial) GENERAL OBLIGATION REFUNDING & IMPROVEMENT BONDS, SERIES 2036 Pay & Cancel Refunding of (proposed) Series 2020 + New Money 50.000 (target) Residential Mills + 50.000 (target) Commercial Mills Assumes Investment Grade, 100x, 30-yr. Maturity (Full Growth + 6% Bi-Reassessment Projections) [ Preliminary -- for discsussion only ] Period Total Debt Service Capitalized Net Ending Principal Interest Debt Service Reserve Fund Interest Fund Debt Service 12/01/2037 5,173,100.00 5,173,100.00 431,091.67 4,742,008.33 12/01/2038 10,000 5,173,100.00 5,183,100.00 5,183,100.00 12/01/2039 10,000 5,172,675.00 5,182,675.00 5,182,675.00 12/01/2040 325,000 5,172,250.00 5,497,250.00 5,497,250.00 12/01/2041 335,000 5,158,437.50 5,493,437.50 5,493,437.50 12/01/2042 680,000 5,144,200.00 5,824,200.00 5,824,200.00 12/01/2043 710,000 5,115,300.00 5,825,300.00 5,825,300.00 12/01/2044 1,090,000 5,085,125.00 6,175,125.00 6,175,125.00 12/01/2045 1,135,000 5,038,800.00 6,173,800.00 6,173,800.00 12/01/2046 1,555,000 4,990,562.50 6,545,562.50 6,545,562.50 12/01/2047 1,620,000 4,924,475.00 6,544,475.00 6,544,475.00 12/01/2048 2,080,000 4,855,625.00 6,935,625.00 6,935,625.00 12/01/2049 2,170,000 4,767,225.00 6,937,225.00 6,937,225.00 12/01/2050 2,680,000 4,675,000.00 7,355,000.00 7,355,000.00 12/01/2051 2,795,000 4,561,100.00 7,356,100.00 7,356,100.00 12/01/2052 3,355,000 4,442,312.50 7,797,312.50 7,797,312.50 12/01/2053 3,495,000 4,299,725.00 7,794,725.00 7,794,725.00 12/01/2054 4,115,000 4,151,187.50 8,266,187.50 8,266,187.50 12/01/2055 4,290,000 3,976,300.00 8,266,300.00 8,266,300.00 12/01/2056 4,965,000 3,793,975.00 8,758,975.00 8,758,975.00 12/01/2057 5,175,000 3,582,962.50 8,757,962.50 8,757,962.50 12/01/2058 5,925,000 3,363,025.00 9,288,025.00 9,288,025.00 12/01/2059 6,175,000 3,111,212.50 9,286,212.50 9,286,212.50 12/01/2060 6,995,000 2,848,775.00 9,843,775.00 9,843,775.00 12/01/2061 7,290,000 2,551,487.50 9,841,487.50 9,841,487.50 12/01/2062 8,190,000 2,241,662.50 10,431,662.50 10,431,662.50 12/01/2063 8,540,000 1,893,587.50 10,433,587.50 10,433,587.50 12/01/2064 9,530,000 1,530,637.50 11,060,637.50 11,060,637.50 12/01/2065 9,935,000 1,125,612.50 11,060,612.50 11,060,612.50 12/01/2066 16,550,000 703,375.00 17,253,375.00 5,530,318.75 11,723,056.25 121,720,000 118,622,812.50 240,342,812.50 5,530,318.75 431,091.67 234,381,402.08 12 Jan 30, 2018 8:27 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Gateway @ Prospe...:CJAN3018-36IGR20C,36IGR20C) SUMMARY OF BONDS REFUNDED GATEWAY @ PROSPECT METROPOLITAN DISTRICT Nos. 1-7 (Residential + Commercial) GENERAL OBLIGATION REFUNDING & IMPROVEMENT BONDS, SERIES 2036 Pay & Cancel Refunding of (proposed) Series 2020 + New Money 50.000 (target) Residential Mills + 50.000 (target) Commercial Mills Assumes Investment Grade, 100x, 30-yr. Maturity (Full Growth + 6% Bi-Reassessment Projections) [ Preliminary -- for discsussion only ] Maturity Interest Par Call Call Bond Date Rate Amount Date Price 1/30/18: Ser 20 NR LF, 5.00%, 105x, 50+50, FG+6% BiRE, SP (Aggressive): TERM50 12/01/2037 5.000% 1,720,000.00 12/01/2036 100.000 12/01/2038 5.000% 2,085,000.00 12/01/2036 100.000 12/01/2039 5.000% 2,190,000.00 12/01/2036 100.000 12/01/2040 5.000% 2,595,000.00 12/01/2036 100.000 12/01/2041 5.000% 2,725,000.00 12/01/2036 100.000 12/01/2042 5.000% 3,175,000.00 12/01/2036 100.000 12/01/2043 5.000% 3,335,000.00 12/01/2036 100.000 12/01/2044 5.000% 3,835,000.00 12/01/2036 100.000 12/01/2045 5.000% 4,030,000.00 12/01/2036 100.000 12/01/2046 5.000% 4,580,000.00 12/01/2036 100.000 12/01/2047 5.000% 4,810,000.00 12/01/2036 100.000 12/01/2048 5.000% 5,425,000.00 12/01/2036 100.000 12/01/2049 5.000% 5,695,000.00 12/01/2036 100.000 12/01/2050 5.000% 12,515,000.00 12/01/2036 100.000 58,715,000.00 13 Jan 30, 2018 8:27 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Gateway @ Prospe...:CJAN3018-36IGR20C,36IGR20C) ESCROW REQUIREMENTS GATEWAY @ PROSPECT METROPOLITAN DISTRICT Nos. 1-7 (Residential + Commercial) GENERAL OBLIGATION REFUNDING & IMPROVEMENT BONDS, SERIES 2036 Pay & Cancel Refunding of (proposed) Series 2020 + New Money 50.000 (target) Residential Mills + 50.000 (target) Commercial Mills Assumes Investment Grade, 100x, 30-yr. Maturity (Full Growth + 6% Bi-Reassessment Projections) [ Preliminary -- for discsussion only ] Dated Date 12/01/2036 Delivery Date 12/01/2036 1/30/18: Ser 20 NR LF, 5.00%, 105x, 50+50, FG+6% BiRE, SP (Aggressive) Period Principal Ending Redeemed Total 12/01/2036 58,715,000.00 58,715,000.00 58,715,000.00 58,715,000.00 14 Jan 30, 2018 8:27 am Prepared by D.A, Davidson & Co Quantitative Group~PM (Gateway @ Prospe...:CJAN3018-36IGR20C,36IGR20C) PRIOR BOND DEBT SERVICE GATEWAY @ PROSPECT METROPOLITAN DISTRICT Nos. 1-7 (Residential + Commercial) GENERAL OBLIGATION REFUNDING & IMPROVEMENT BONDS, SERIES 2036 Pay & Cancel Refunding of (proposed) Series 2020 + New Money 50.000 (target) Residential Mills + 50.000 (target) Commercial Mills Assumes Investment Grade, 100x, 30-yr. Maturity (Full Growth + 6% Bi-Reassessment Projections) [ Preliminary -- for discsussion only ] Annual Period Debt Debt Ending Principal Coupon Interest Service Service 06/01/2037 1,467,875 1,467,875 12/01/2037 1,720,000 5.000% 1,467,875 3,187,875 4,655,750 06/01/2038 1,424,875 1,424,875 12/01/2038 2,085,000 5.000% 1,424,875 3,509,875 4,934,750 06/01/2039 1,372,750 1,372,750 12/01/2039 2,190,000 5.000% 1,372,750 3,562,750 4,935,500 06/01/2040 1,318,000 1,318,000 12/01/2040 2,595,000 5.000% 1,318,000 3,913,000 5,231,000 06/01/2041 1,253,125 1,253,125 12/01/2041 2,725,000 5.000% 1,253,125 3,978,125 5,231,250 06/01/2042 1,185,000 1,185,000 12/01/2042 3,175,000 5.000% 1,185,000 4,360,000 5,545,000 06/01/2043 1,105,625 1,105,625 12/01/2043 3,335,000 5.000% 1,105,625 4,440,625 5,546,250 06/01/2044 1,022,250 1,022,250 12/01/2044 3,835,000 5.000% 1,022,250 4,857,250 5,879,500 06/01/2045 926,375 926,375 12/01/2045 4,030,000 5.000% 926,375 4,956,375 5,882,750 06/01/2046 825,625 825,625 12/01/2046 4,580,000 5.000% 825,625 5,405,625 6,231,250 06/01/2047 711,125 711,125 12/01/2047 4,810,000 5.000% 711,125 5,521,125 6,232,250 06/01/2048 590,875 590,875 12/01/2048 5,425,000 5.000% 590,875 6,015,875 6,606,750 06/01/2049 455,250 455,250 12/01/2049 5,695,000 5.000% 455,250 6,150,250 6,605,500 06/01/2050 312,875 312,875 12/01/2050 12,515,000 5.000% 312,875 12,827,875 13,140,750 58,715,000 27,943,250 86,658,250 86,658,250 15 EXHIBIT F Gateway at Prospect Metropolitan District Nos. 1-7 Intergovernmental Agreement INTERGOVERNMENTAL AGREEMENT THIS INTERGOVERNMENTAL AGREEMENT is made and entered into by and between the City of Fort Collins, Colorado, a Colorado home rule municipality (the “City”), and Gateway at Prospect Metropolitan District Nos. 1-7, quasi-municipal corporations and political subdivisions of the State of Colorado (collectively, the “Districts”). RECITALS WHEREAS, the Districts were organized to provide those services and to exercise powers as are more specifically set forth in the Districts’ Service Plan dated March 6, 2018, which may be amended from time to time as set forth therein (the “Service Plan”); and WHEREAS, the City and the property owner organizers of the Districts have entered into that certain “Binding Agreement Pertaining to Development of the Interstate Highway 25 and Prospect Road Interchange” dated March __, 2018 (the “Binding Agreement”); and WHEREAS, the Binding Agreement contemplates that the City and the Districts will enter into a “Capital Pledge Agreement” pursuant to which the District will share in the cost of the Colorado Department of Transportation project to improve the I-25 and Prospect Road Interchange (the “Capital Pledge Agreement); and WHEREAS, the Service Plan requires the execution of an intergovernmental agreement between the City and the Districts to provide the City with contract remedies to enforce the requirements and limitations imposed on the Districts in the Service Plan; and WHEREAS, the City and the Districts have determined it to be in their best interests to enter into this Intergovernmental Agreement as provided in the Service Plan (“Agreement”). NOW, THEREFORE, for and in consideration of the covenants and mutual agreements herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: COVENANTS AND AGREEMENTS 1. Incorporation by Reference. The Service Plan is hereby incorporated in this agreement by this reference. The District agrees to comply with all provisions of the Service Plan, as it may be amended from time to time in accordance with the provisions thereof, and Title 32, Article 1, C.R.S. (the “Special District Act”). Capitalized terms used herein not otherwise defined in this Agreement shall have the meanings, respectfully, specified in the Service Plan. 2. Imposition of Fees, Levying of Taxes and Issuance of Debt. The Districts shall not impose any taxes, fees, rates, tolls or charges, or issue any Debt unless or until: (a) the Property Owner has recorded the PIF Covenant (as defined in the Binding Agreement) against its property within the Project Area Boundaries, and (b) the City and the Overlay District have entered into the Capital Pledge Agreement. 3. City Prior Approvals. The Districts shall obtain any prior City or City Council approvals as required in the Service Plan before undertaking the action requiring such approval. 4. Enforcement. The parties agree that this Agreement may be enforced at law or in equity, including actions seeking specific performance, mandamus, injunctive, or other appropriate relief. The parties also agree that this Agreement may be enforced pursuant to Section 32-1-207, C.R.S. and other provisions of the Special District Act granting rights to municipalities or counties approving a service plan of a special district. 5. Amendment. This Agreement may be amended, modified, changed, or terminated in whole or in part only by a written agreement duly authorized and executed by the parties hereto. 6. Governing Law; Venue. This Agreement shall be governed by and construed under the applicable laws of the State of Colorado. Venue for any judicial action to interpret or enforce this Agreement shall be in Larimer County District Court of the Eighth Judicial District for the State of Colorado. 7. Beneficiaries. Except as otherwise stated herein, this Agreement is intended to describe the rights and responsibilities of and between the named parties and is not intended to, and shall not be deemed to confer any rights upon any persons or entities not named as parties. 8. Effect of Invalidity. If any portion of this Agreement is held invalid or unenforceable for any reason by a court of competent jurisdiction as to either party or as to both parties, such portion shall be deemed severable and its invalidity or its unenforceability shall not cause the entire agreement to be terminated. 9. Assignability. Neither the City nor the Districts shall assign their rights or delegate their duties hereunder without the prior written consent of the other parties. Any assignment of rights or delegation of duties without such prior written consent shall be deemed null and void and of no effect. Notwithstanding the foregoing, the City and the Districts may enter into contracts or other agreements with third parties to perform any of their respective duties required under this Agreement. 10. Successors and Assigns. This Agreement and the rights and obligations created hereby shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. GATEWAY AT PROSPECT METROPOLITAN DISTRICT NOS. 1-7 BY: President ATTEST: By:_______________________________ Secretary CITY OF FORT COLLINS, COLORADO By: Mayor ATTEST: By: City Clerk 12/01/2061 7,290,000 4.250% 1,275,743.75 8,565,743.75 9,841,487.50 06/01/2062 1,120,831.25 1,120,831.25 12/01/2062 8,190,000 4.250% 1,120,831.25 9,310,831.25 10,431,662.50 06/01/2063 946,793.75 946,793.75 12/01/2063 8,540,000 4.250% 946,793.75 9,486,793.75 10,433,587.50 06/01/2064 765,318.75 765,318.75 12/01/2064 9,530,000 4.250% 765,318.75 10,295,318.75 11,060,637.50 06/01/2065 562,806.25 562,806.25 12/01/2065 9,935,000 4.250% 562,806.25 10,497,806.25 11,060,612.50 06/01/2066 351,687.50 351,687.50 12/01/2066 16,550,000 4.250% 351,687.50 16,901,687.50 17,253,375.00 121,720,000 118,622,812.50 240,342,812.50 240,342,812.50 11 ______ __________ __________ __________ 00 514,280 432,958,640 1/30/2018 C G@PMD#1-7 Fin Plan 18 C AV Summary Prepared by D.A.Davidson & Co. Draft: For discussion purposes only. 6 ______ __________ __________ __________ 656 673,736,420 00 1/30/2018 C G@PMD#1-7 Fin Plan 18 R AV Summary Prepared by D.A.Davidson & Co. Draft: For discussion purposes only. 4 Net Available Net Debt Net Debt Net Debt Funds on Hand* Surplus 50% D/A Surplus Assessed @ Comm'l Target @ Comm'l Cap for Debt Svc Service Service Service Used as Source to $12,172,000 $12,172,000 Target Ratio & Sales PIF Revs & Sales PIF Revs $0 0 0 $0 0 0 0 2648% 0% 0% 189,950 0 0 189,950 0 189,950 739% 0% 0% 1,115,639 0 0 1,115,639 0 1,305,588 452% 0% 0% 1,795,400 0 0 1,795,400 0 3,100,989 366% 0% 0% 2,426,019 3,350,250 3,350,250 (924,231) 0 2,176,758 366% 72% 72% 2,849,045 3,350,250 3,350,250 (501,205) 0 1,675,553 345% 85% 85% 3,656,204 3,480,250 3,480,250 175,954 0 1,851,508 344% 105% 105% 3,656,204 3,478,750 3,478,750 177,454 0 2,028,962 324% 105% 105% 3,875,577 3,687,000 3,687,000 188,577 0 2,217,538 322% 105% 105% 3,875,577 3,689,500 3,689,500 186,077 0 2,403,615 302% 105% 105% 4,108,111 3,911,000 3,911,000 197,111 0 2,600,726 300% 105% 105% 4,108,111 3,910,500 3,910,500 197,611 0 2,798,337 280% 105% 105% 4,354,598 4,143,500 4,143,500 211,098 0 3,009,435 276% 105% 105% 4,354,598 4,143,250 4,143,250 211,348 0 3,220,783 257% 105% 105% 4,615,874 4,395,750 4,395,750 220,124 0 3,440,907 251% 105% 105% 4,615,874 4,393,250 4,393,250 222,624 0 3,663,530 232% 105% 105% 4,892,826 4,657,750 $0 4,657,750 3,890,000 (3,654,924) 0 8,607 468% 105% 105% 4,892,826 [Ref'd by Ser. '30] 4,742,008 4,742,008 150,818 0 159,424 442% 103% 103% 5,186,396 5,183,100 5,183,100 3,296 0 162,720 442% 100% 100% 5,186,396 5,182,675 5,182,675 3,721 0 166,441 417% 100% 100% 5,497,579 5,497,250 5,497,250 329 0 166,770 416% 100% 100% 5,497,579 5,493,438 5,493,438 4,142 0 170,912 391% 100% 100% 5,827,434 5,824,200 5,824,200 3,234 0 174,146 389% 100% 100% 5,827,434 5,825,300 5,825,300 2,134 0 176,281 365% 100% 100% 6,177,080 6,175,125 6,175,125 1,955 0 178,236 361% 100% 100% 6,177,080 6,173,800 6,173,800 3,280 0 181,516 338% 100% 100% 6,547,705 6,545,563 6,545,563 2,143 0 183,659 333% 100% 100% 6,547,705 6,544,475 6,544,475 3,230 0 186,889 310% 100% 100% 6,940,567 6,935,625 6,935,625 4,942 0 191,831 304% 100% 100% 6,940,567 6,937,225 6,937,225 3,342 0 195,174 281% 100% 100% 7,357,001 7,355,000 7,355,000 2,001 0 197,175 275% 100% 100% 7,357,001 7,356,100 7,356,100 901 0 198,076 252% 100% 100% 7,798,422 7,797,313 7,797,313 1,109 0 199,185 244% 100% 100% 7,798,422 7,794,725 7,794,725 3,697 0 202,882 222% 100% 100% 8,266,327 8,266,188 8,266,188 139 0 203,021 213% 100% 100% 8,266,327 8,266,300 8,266,300 27 0 203,048 192% 100% 100% 8,762,306 8,758,975 8,758,975 3,331 0 206,379 181% 100% 100% 8,762,306 8,757,963 8,757,963 4,344 0 210,723 160% 100% 100% 9,288,045 9,288,025 9,288,025 20 0 210,743 148% 100% 100% 9,288,045 9,286,213 9,286,213 1,832 0 212,575 128% 100% 100% 9,845,327 9,843,775 9,843,775 1,552 0 214,128 115% 100% 100% 9,845,327 9,841,488 9,841,488 3,840 0 217,968 95% 100% 100% 10,436,047 10,431,663 10,431,663 4,385 0 222,352 80% 100% 100% 10,436,047 10,433,588 10,433,588 2,460 0 224,812 61% 100% 100% 11,062,210 11,060,638 11,060,638 1,572 0 226,385 45% 100% 100% 11,062,210 11,060,613 11,060,613 1,597 0 227,982 27% 100% 100% 11,725,943 11,723,056 11,723,056 2,886 230,868 0 0% 100% 100% _________ _________ _________ _________ _________ _________ _________ 333,579,631 50,591,000 234,381,402 284,972,402 3,890,000 44,717,229 32,545,229 [CJan3018 20nrspC] [CJan3018 36ig20C] 1/30/2018 C G@PMD#1-7 Fin Plan 18 Master NR LF FP SP+2036 Refg Prepared by D.A.Davidson & Co. Draft: For discussion purposes only. 3 __________ __________ __________ __________ __________ 76,178,680 4,570,721 238,519,085 14,311,145 333,579,631 [*] The Districts may also levy up to 20.00 Mills for Operations & Maintenance + 10.00 Mills for the Overlay District Project Mill Levy 1/30/2018 C G@PMD#1-7 Fin Plan 18 Master NR LF FP SP+2036 Refg Prepared by D.A.Davidson & Co. Draft: For discussion purposes only. 2 500 0 500 Feet 500 ST BOX CULVERT ST STORM DRAIN LINE D FIGURE 4 OF 6 NOTE: LOCAL STREETS AND ASSOCIATED UTILITIES ARE CONCEPTUAL AND MAY CHANGE AS DEVELOPMENT OCCURS. ( IN FEET ) 1 inch = ft. 500 0 500 Feet 500 GATEWAY AT PROSPECT METROPOLITAN DISTRICTS 1 - 7 FORT COLLINS COLORADO E NGINEER ING N O R T H E RN DESCRIPTION DRAWN BY DATE PROJECT 892-001 DRAWN BY SCALE EXHIBIT B. Ruch DATE January 31, 2018 FORT COLLINS: 301 North Howes Street, Suite 100, 80521 GREELEY: 820 8th Street, 80631 970.221.4158 northernengineering.com LEGEND: SS SEWER LINE - 10 INCH PVC. ALL SEWER TO BE OWNED AND MAINTAINED BY BOXELDER SANITATION DISTRICT. SEWER LINE - 8 INCH PVC. ALL SEWER TO BE OWNED AND MAINTAINED BY BOXELDER SANITATION DISTRICT. SS SS SEWER LINE - 27 INCH PVC. ALL SEWER TO BE OWNED AND MAINTAINED BY BOXELDER SANITATION DISTRICT. SUBDRAIN - 8 INCH HDPE. ALL SUBDRAINS TO BE OWNED AND MAINTAINED BY METRO DISTRICT. SD D FIGURE 3 OF 6 NOTE: LOCAL STREETS AND ASSOCIATED UTILITIES ARE CONCEPTUAL AND MAY CHANGE AS DEVELOPMENT OCCURS. ( IN FEET ) 1 inch = ft. 500 0 500 Feet 500 northernengineering.com LEGEND: WATER LINE - 12 INCH PVC. ALL WATER TO BE OWNED AND MAINTAINED BY ELCO WATER DISTRICT. W WATER LINE - 10 INCH PVC. ALL WATER TO BE OWNED AND MAINTAINED BY ELCO WATER DISTRICT. W WATER LINE - 8 INCH PVC. ALL WATER TO BE OWNED AND MAINTAINED BY ELCO WATER DISTRICT. W D FIGURE 2 OF 6 NOTE: LOCAL STREETS AND ASSOCIATED UTILITIES ARE CONCEPTUAL AND MAY CHANGE AS DEVELOPMENT OCCURS. ( IN FEET ) 1 inch = ft. 500 0 500 Feet 500 - - - 14,250 - - - - 64,250 - - - - - - - - - 60,000 - - - - - - - - - 60,000 - - - - - - - - - 60,000 - - - - - - - - - 50,000 - - - - - - - - - 50,000 - - - - - - - - - 20,000 - - - - - - - - - - - - - - - - - - - - - 107,850 5,350 831,150 114,000 240 150 240 100 2,684,630 730 $26,962,500 $882,750 $124,672,500 $28,500,000 $30,000,000 $18,750,000 $30,000,000 $12,500,000 $596,208,700 $18,873,750 $936,250 $0 $19,950,000 $5,518,800 $3,449,250 $5,518,800 $2,299,500 $110,995,850 [*] Not Including Hotels; presented in Rooms. Platted/Dev Lots = 10% MV; one-yr prior Base MV $ inflated 2% per annum Comm'l Fac Fees: $3.12/SF (Retial/Rest.), $18.45/SF (Gas), $0.39/SF (Office/Med.), $0.24/SF (Ind'l), $300/Rm (Hotel) 2/22/2018 A I-25PIMD Fin Plan 18 C Dev Summ Prepared by D.A. Davidson & Co. 7 I-25 / PROSPECT INTERCHAGE METROPOLITAN DISTRICT (Residential & Commercial) Development Projection at 7.500 (target) Residential Mills +7.500 (target) Commercial Mills for Debt Service (SERVICE PLAN) -- 02/28/2018