HomeMy WebLinkAbout2016-076-09/27/2016-APPROVING THE CONSOLIDATED SERVICE PLAN FOR HARMONY I-25 METROPOLITAN DISTRICT NOS. 1-3CONSOLIDATED SERVICE PLAN
FOR
HARMONY I-25 METROPOLITAN DISTRICT NOS. 1-3
City of Fort Collins, Colorado
Prepared
by:
WHITE BEAR ANKELE TANAKA & WALDRON
2154 E. Commons Ave., Suite 200
Centennial, Colorado 80122
Submitted on
SEPTEMBER 26, 2016
EXHIBIT A
i
TABLE OF CONTENTS
I. INTRODUCTION .............................................................................................................. 1
A. General Overview. .................................................................................................. 1
B. Purpose and Intent. .................................................................................................. 2
C. Need for the District. ............................................................................................... 3
D. Objective of the City Regarding District’s Service Plan; Approval of Service Plan
Amendment. ............................................................................................................ 3
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. ........................................................................... 8
B. Infrastructure Preliminary Development Plan. ....................................................... 9
VI. FINANCIAL PLAN............................................................................................................ 9
A. General. ................................................................................................................... 9
B. Elections. ................................................................................................................. 9
VII. ANNUAL REPORT ........................................................................................................... 9
A. General. ................................................................................................................... 9
B. Reporting of Significant Events. ............................................................................. 9
VIII. DISSOLUTION ................................................................................................................ 10
IX. MATERIAL MODIFICATIONS ..................................................................................... 11
X. SANCTIONS. ................................................................................................................... 11
XI. CONCLUSION ................................................................................................................. 11
XII. RESOLUTION OF APPROVAL ..................................................................................... 12
ii
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 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 No. 3 Boundary Map
EXHIBIT C Vicinity Map
1438.0003; 784976
I. INTRODUCTION
A. General Overview.
The Districts, which are intended to be independent units of local government
separate and distinct from the City, are governed by this Service Plan which has been prepared in
general accordance with the City Policy. 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 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. This Project
has significant obstacles to overcome that necessitate phasing made possible through the
formation of multiple districts. Initially, the presence of the Poudre River Flood Plain, which
covers the eastern half of the site, will partially delay development until a suitable solution is
found. Further, a significant portion of the site is comprised of ground water ponds as a result of
gravel mining. Filling these ponds will be a substantial undertaking. Development of a site with
considerable land use issues further highlights the importance of coordinated and phased
development.
As this Project includes over 260 acres of mixed-use products, it is anticipated to
be built over an extended period of time, which 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. 1, as a service and a financing
district, is responsible for managing the construction and operation of the facilities and
improvements needed for the Project, as well as contributing to the tax base needed to support
the Financial Plan for capital improvements. District No. 2 and District No. 3, as the financing
districts, are responsible for providing additional funding and tax base needed to support the
Financial Plan for capital improvements. A multiple-district structure that features the operation
of District No. 1, in part as the service district which owns and operates the public facilities
throughout the Project, and the operation of District No. 1, District No. 2 and District No. 3, as
financing districts that will generate the tax revenue sufficient to pay the costs of the capital
improvements, is a configuration that will create 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 similarly-situated 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 initial 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. 1 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. 1 and the Developer 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, 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. 1 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.
This Service Plan provides a preliminary framework and limited authorization
under which the Districts are authorized to proceed with an Organizational Election.
Notwithstanding any provisions to the contrary contained herein, following the entry of court
orders formally decreeing the Districts organized, and continuing until a Service Plan
Amendment is approved by the City Council, the Districts shall not undertake any activity except
minimal administrative or ministerial activities required by State law to maintain the Districts as
lawfully existing political subdivisions of the State unless or until a Service Plan Amendment is
approved by the City Council, in its sole discretion. Without limiting the generality of the
foregoing, the Districts shall not levy any tax, impose any fee, construct any Public
Improvements, enter into any contracts or agreements for the construction of any Public
Improvements or for the procurement or provision of services or tangible property, or incur any
Debt until the Service Plan Amendment is approved. The approval of this Service Plan does not
obligate the City Council to approve the Service Plan Amendment or any zoning, subdivision,
planning, building permit or other land use matter for the owners of the real property within the
District. Any modification to the provisions of this paragraph shall be deemed to be material
modifications to this Service Plan and shall require prior written approval by the City Council.
B. Purpose and Intent.
The Districts, which shall be independent units of local government separate and
distinct from the City, is governed by this Service Plan. The Districts are needed to provide
Public Improvements to the Project for the benefit of property owners and taxpayers within the
Districts, and through its formation, will result in enhanced benefits to existing and future
business owners and/or residents of the City. The primary purposes of the Districts will be to
finance, construct, acquire, own, operate and maintain the Public Improvements.
This Service Plan is submitted in accordance with Part 2 of the Special District
Act, Section 32-1-201, et seq., C.R.S. It defines the powers and authorities of the Districts and
describes the limitations and restrictions placed thereon. The information provided in this
Service Plan is preliminary in nature and subject to change as development within the Project
evolves. As plans for development are refined and finalized, the same shall be included as part
of an Approved Development Plan and related Infrastructure Preliminary Development Plan.
C. Need for the District.
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.
D. Objective of the City Regarding District’s Service Plan; Approval of Service Plan
Amendment.
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. A Financial Plan, which describes the Debt anticipated to be issued by the Districts,
shall be submitted to the City as part of the Service Plan Amendment, as shall an Infrastructure
Preliminary Development Plan. 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 Debt of the
Districts or the construction of Public Improvements.
The City’s approval of this Service Plan shall, under no circumstances, be
interpreted as an agreement by the City that it will approve the Service Plan Amendment or that
any particular provisions set forth in this Service Plan will be approved by the City in the Service
Plan Amendment. The City’s objective in approving this Service Plan is to allow the proposed
Districts to proceed with the Organizational Election.
This Service Plan is intended to establish limitations applicable to 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.
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(s): means an Overall Development Plan ("ODP") as set
forth in Section 2.3 of the City of Fort Collins Land Use Code, as amended pursuant to the City
Code from time to time, which must include sufficient detail regarding Public Improvements
necessary for facilitating development of one or more phases of the Project under the ODP and
generally within the Service Area. It is anticipated that there may be multiple Overall
Development Plans related to this Project.
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 or other financial obligations for which a District has
promised to impose an ad valorem property tax mill levy, and other legally available revenue, for
payment. 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.
City: means the City of Fort Collins, Colorado.
City Code: means the Code of the City of Fort Collins, the Fort Collins Land Use Code,
and any regulations, rules, or policies promulgated thereunder, as the same may be amended
from time to time.
City Council: means the City Council of the City of Fort Collins, Colorado.
Developer: means Harmony 25, LLC, a Colorado limited liability company and Harmony
– McMurray, LLC.
District: means Harmony I-25 Metropolitan District No. 1, Harmony I-25 Metropolitan
District No. 2, or Harmony I-25 Metropolitan District No. 3 individually.
District No. 1: means Harmony I-25 Metropolitan District No. 1.
District No. 2: means Harmony I-25 Metropolitan District No. 2.
District No. 3: means Harmony I-25 Metropolitan District No. 3.
Districts: means Harmony I-25 Metropolitan District No. 1, Harmony I-25 Metropolitan
District No. 2, and Harmony I-25 Metropolitan District No. 3, collectively.
District Organization Date: means the date the order and decree for organization 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, agent or employee of
the Districts.
Financial Plan: means a Financial Plan, as the same is described in Section VI and which
shall be included within the Service Plan Amendment. The Financial Plan shall be prepared by
an External Financial Advisor or shall be accompanied by a letter of support from an External
Financial Advisor. The Financial Plan shall describe (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 paid or defeased. This Financial Plan is intended to represent only one example of
debt issuance and financing structure of the District, 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(s): means the Infrastructure Preliminary
Development Plans related to Public Improvements necessary for facilitating development of
property in any Approved Development Plan and generally within the Service Area and as
described in Section V.B., and which shall be included as part of the Service Plan Amendment.
The Infrastructure Preliminary Development Plan shall include: (a) a preliminary list of the
Public Improvements to be developed by the District; (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 the Approved Development Plan and any change conditioned upon various
external factors including, but not limited to, site conditions, engineering requirements, City,
county or state requirements, land use conditions, and zoning limitations.
Maximum Debt Service Mill Levy: means the maximum mill levy the Districts are
permitted to impose upon the taxable property within the Districts for payment of Debt, which
shall be included in the Service Plan Amendment.
Maximum Debt Authorization: means the total Debt the Districts are permitted to issue,
which shall be included in the Service Plan Amendment.
Maximum Debt Maturity Term: means the maximum term for a District Debt issuance,
which shall be included in the Service Plan Amendment.
Organizational Election: means the initial election at which the Districts’ organization,
the initial slate of directors and associated terms of office for each director and debt and taxing
authorization is voted upon pursuant to the requirements of TABOR.
Project: means the development or property commonly referred to as Harmony I-25.
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.
Public Improvements: means a part or all of the improvements authorized to be planned,
designed, acquired, constructed, installed, relocated, redeveloped and financed, specifically
including related eligible costs for acquisition and administration, as authorized by 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 in its discretion.
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, as
the same may be amended from time to time, specifically including the Service Plan
Amendment.
Service Plan Amendment: means an Amended and Restated Service Plan approved by the
City Council, in its sole discretion, in accordance with applicable state law, the City Charter and
City Code.
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.
TABOR: means Article X, Section 20 of the Constitution of the State.
Vicinity Map: means a map of the regional area surrounding the Project, as attached
hereto at Exhibit C.
III. BOUNDARIES
The Project Area Boundaries includes approximately 261.33 acres. A legal description of
the Project Area Boundaries is attached as Exhibit A-1. The Project Area Boundaries are divided
into three (3) separate and distinct Districts (District No. 1, District No. 2, and District No. 3),
legal descriptions for which are attached hereto as Exhibits A-2, A-3, and A-4. A Project Area
Boundary Map is attached hereto as Exhibit B-1, and maps of District No.1, District No. 2, and
District No. 3 are included as Exhibits B-2, B-3, and B-4, respectively. 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 Two Million (2,000,000) square feet of
commercial space. The Service Area further consists of approximately One Million Two
Hundred Thousand (1,200,000) square feet of residential space. The current assessed valuation
of the Service Area is approximately zero ($0.00) dollars for purposes of service plan financial
forecasting, and, at build out, is expected to be Two-Hundred Forty-One Million Twenty-Seven
Thousand Eight-Hundred and Forty Dollars ($241,027,840).
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
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.
Only after approval of the Service Plan Amendment shall the Districts have the
power and authority to acquire, construct, install and operate and maintain the Public
Improvements within and without the boundaries of the Districts as such power and authority is
described in the 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. Such additional powers granted by the State 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(s) and
applicable provisions of the City Code. Those improvements that are not dedicated to the City or
other appropriate jurisdiction or owners association may be maintained by the Districts.
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, including the City Code and Approved Development Plan(s), and of other
governmental entities having proper jurisdiction, as applicable. The District, directly or indirectly
through the 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..
3. Privately Placed Debt Limitation. Prior to the issuance of any privately
placed Debt, the Districts 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.
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. All other Inclusions or
exclusions shall require the prior approval of the City Council by written agreement with the
District.
5. Maximum Debt Authorization. The amount of Debt authorized for
issuance by the Districts (the “Maximum Debt Authorization”) shall be set forth in the Service
Plan Amendment. The District shall not issue or incur any Debt prior to the approval of a
Service Plan Amendment.
6. 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 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.
7. Consolidation Limitation. The Districts shall not file a request with any
Court to consolidate with another Title 32 district without the prior written consent of the City
Council.
8. Eminent Domain Limitation. The Districts shall not exercise its statutory
power of eminent domain without first obtaining the prior written consent of the City Council,
which will only be allowed to facilitate the construction of Public Improvements pertinent to the
Project. This restriction on the Eminent Domain power by the Districts 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 Article 1, Title 32, Colorado Revised Statutes.
9. Service Plan Amendment. This Service Plan is general in nature and does
not include specific detail in some instances because development plans have not been finalized.
After the approval of the initial Approved Development Plan and upon application from the
Districts, the City agrees to timely consider a Service Plan Amendment in accordance with the
Special District Act, provided that the City Council shall be under no obligation to approve a
Service Plan Amendment or to include any particular provisions in any Service Plan Amendment
so approved. Any action of the Districts which violates the limitations set forth in this Service
Plan shall be deemed to be a material modification to this Service Plan unless otherwise agreed
by the City as provided for in Section IX of this Service Plan or otherwise expressly provided
herein.
B. Infrastructure Preliminary Development Plan.
The current estimated costs of the Public Improvements are expected to be
substantial and will be based upon requirements set forth in any 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 District, as the same are more
specifically defined in any Infrastructure Preliminary Development Plan. The Infrastructure
Preliminary Development Plan, including: (1) a list of the Public Improvements to be developed
by the District; (2) an estimate of the cost of the Public Improvements; and (3) maps showing the
approximate locations of the Public Improvements shall be consistent with any related Approved
Development Plan and included as part of the Service Plan Amendment.
All of the Public Improvements will be designed in such a way as to ensure that
the standards will be consistent with or exceed the standards of the City and shall be in
accordance with the requirements of any related Approved 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 its
revenues and by and through the proceeds of Debt to be issued by the District, provided
however, that the Districts shall not be authorized to issue any Debt until the time that the
Service Plan Amendment is approved, in the City Council’s sole discretion.
B. Elections.
The Districts will call an Organizational Election on the questions of organizing
the Districts for an election to be held on November 8, 2016, electing the initial Board, and
setting in place financial authorizations as required by TABOR. The election 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 Districts' 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 its
service plan for the report year; and
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; and
3. Any other information deemed relevant by the City Council or deemed
reasonably necessary by the City’s Manager.
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 the District, 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
If proceedings for an initial Service Plan Amendment, as contemplated herein, have not
been initiated within three years from the date upon which this Service Plan was approved by the
City Council or the Service Plan Amendment has not been approved by City Council within two
years of being so initiated, the City may opt to pursue the remedies available to it under Section
32-1-701(3) C.R.S., in order to compel the Districts to dissolve in a prompt and orderly manner.
In such an event: 1) the limited purposes and powers of the Districts, as authorized herein, shall
automatically terminate and be expressly limited to taking only those actions that are reasonably
necessary to dissolve; 2) the Board of Directors will be deemed to have agreed with the City
regarding its dissolution without an election pursuant to §32-1-704(3)(b), C.R.S.; and 3) the
Districts shall take no action to contest or impede the dissolution of the Districts and shall
affirmatively and diligently cooperate in securing the final dissolution of the Districts, and 4)
subject to the statutory requirements of the Act, the Districts shall thereupon dissolve. For the
purposes of the foregoing, Service Plan Amendment proceedings shall be deemed initiated upon
the submission of the Service Plan Amendment to the City in compliance with this Service Plan,
the Special District Act, and all City procedural requirements for submittal of metropolitan
district service plans.
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 a petition in Larimer
County 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 its
outstanding indebtedness and other financial obligations as required pursuant to State statutes,
including operation and maintenance activities.
IX. MATERIAL MODIFICATIONS
Material modifications to this Service Plan may be made only in accordance with Section
32-1-207, C.R.S.
Departures from the Service Plan that constitute a material modification include without
limitation:
1. Actions or failures to act that create greater financial risk or burden;
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; and
3. Any other action or modification that is identified in this Service Plan as a
material modification
X. SANCTIONS.
Should any of the Districts undertake any act prohibited under this Service Plan or fail to
act as required by this Service Plan, and such act or failure to act constitutes a material
modification to the Service Plan as set forth in §32-1-207, C.R.S., 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. Exercise any legal remedy under the terms of any intergovernmental
agreement under which the District is in default; or
3. Exercise any other legal remedy, including seeking injunctive relief
against the District, to ensure compliance with the provisions of the Service Plan or applicable
law.
XI. 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 has, or will have, the financial
ability to discharge the proposed indebtedness on a reasonable basis.
XII. 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
H25 Metropolitan District
Project Area Boundaries
A parcel situate in the west half of Section 3 Township 6 North and Range 68 West of the Sixth
Principal Meridian in Larimer County, Colorado and being described as follows:
Basis of bearing for this legal description is the west line of the northwest quarter of said Section 3
beginning at the found west quarter corner of said section 3, being monumented with found 2-1/2 inch
aluminum cap on number 6 rebar, inscribed “TST CONSULTING ENGINEERS-1999-PLS 33193”, to
the found northwest corner, bearing North 01° 44’ 18” West.
Commencing at the northwest corner of said northwest quarter of Section 3, being monumented with
found 3-1/4 inch aluminum cap; THENCE, South 01° 44’ 18” East a distance of 31.00 feet along said
west line of the northwest quarter of said Section 3 to a point on an existing easement, being the Point Of
Beginning.
THENCE, departing from said west line of the northwest quarter of said Section 3 North 89°47'25" East a
distance of 30.02 feet along said existing easement to a point on the Strauss Cabin Road R.O.W.;
THENCE, departing said existing easement South 01°44'25" East a distance of 20.01 feet along said
Strauss Cabin Road R.O.W. to an angle point;
THENCE, departing said Strauss Cabin Road R.O.W. South 89°47'25" East a distance of 670.81 feet to
an angle point;
THENCE, departing said Strauss Cabin Road R.O.W. South 89°18'55" East a distance of 245.96 feet to
an angle point;
THENCE, South 84°57'34" West a distance of 86.41 feet to the beginning of a non-tangent curve to the
left, from which the north quarter corner of said Section 3 bears North 88°32’17” East a distance of
1606.40 feet;
THENCE, with a curve turning to the left with an arc length of 125.67 feet, with a radius of 92.87 feet,
with a chord bearing of South 41°32’24” East, with a chord length of 116.30 feet to an angle point;
THENCE, with a curve turning to the left with an arc length of 82.97 feet, with a radius of 92.87 feet,
with a chord bearing of North 74°05’55” East, with a chord length of 80.24 feet to an angle point;
THENCE, North 48°30'14" East a distance of 98.38 feet to an angle point;
THENCE, with a curve turning to the right with an arc length of 13.92 feet, with a radius of 32.81 feet,
with a chord bearing of North 60°39’40” East, with a chord length of 13.82 feet to an angle point;
THENCE, North 72°49'06" East a distance of 56.60 feet to an angle point;
THENCE, South 83°57'54" East a distance of 29.18 feet to an angle point;
THENCE, South 83°44'43" East a distance of 156.80 feet to an angle point, from which the north quarter
corner of said Section 3 bears North 88°05’23” East a distance of 1127.52 feet;
THENCE, South 00°00'00" East a distance of 227.56 feet to an angle point;
THENCE, South 89°29'55" East a distance of 25.40 feet to an angle point;
THENCE, South 00°30'05" West a distance of 5.00 feet to an angle point;
THENCE, South 89°29'55" East a distance of 200.00 feet to an angle point;
THENCE, North 00°30'06" East a distance of 173.90 feet to an angle point;
THENCE, South 89°36'28" East a distance of 265.38 feet to an angle point;
THENCE, South 56°56'01" East a distance of 82.86 feet to a point on the west edge of the Interstate 25
R.OW.;
THENCE, South 24°15'59" East a distance of 793.35 feet along said Interstate 25 R.OW. to an angle
point;
THENCE, South 02°02'35" East a distance of 613.34 feet to a found property corner, being a #4 cap;
THENCE, South 02°02'35" East a distance of 1233.11 feet to a found property corner, being a yellow
plastic #4 cap;
THENCE, South 02°02'35" East a distance of 2339.01 feet along said Interstate 25 R.OW. to an angle
point;
THENCE, South 01°58'22" East a distance of 35.79 feet to an angle point;
THENCE, South 01°37'44" East a distance of 99.98 feet to an angle point;
THENCE, departing said Interstate 25 R.OW. South 84°55'47" West a distance of 574.58 feet to a point
on the north line of the County Road 36 R.O.W.;
THENCE, North 89°04'36" West a distance of 1098.39 feet along said County Road 36 R.O.W. to an
angle point;
THENCE, North 00°55'24" East a distance of 10.00 feet to an angle point;
THENCE, North 89°04'36" West a distance of 183.00 feet to a point on the Fossil Creek Inlet Ditch
easement;
THENCE, departing said County Road 36 R.O.W. North 09°16'21" West a distance of 283.77 feet along
said Fossil Creek Inlet Ditch easement to an angle point;
THENCE, North 01°46'32" West a distance of 289.41 feet to an angle point;
THENCE, North 32°46'32" West a distance of 144.50 feet to an angle point;
THENCE, North 23°39'02" West a distance of 631.96 feet to an angle point;
THENCE, North 01°50'02" East a distance of 208.47 feet to an angle point;
THENCE, North 17°13'48" West a distance of 746.06 feet to an angle point;
THENCE, North 46°09'32" West a distance of 10.66 feet to an a point on the west line of the southwest
quarter of said Section 3;
THENCE, departing said Fossil Creek Inlet Ditch easement North 01°49'14" West a distance of 384.29
feet along said west line of the southwest quarter of said Section 3 to the west quarter corner of said
Section 3, being monumented with found 2-1/2 inch aluminum cap on number 6 rebar, inscribed “TST
CONSULTING ENGINEERS-1999-PLS 33193”;
THENCE, North 01°44'18" West a distance of 2618.34 along said west line of the northwest quarter of
said Section 3 feet to the Point of Beginning.
The above described parcel of land containing 263.53 acres more or less of land, and is subject to any
easements, conditions and/or restrictions that may exist on or within its lines.
EXHIBIT A-2
H25 Metropolitan District No. 1 Area Boundary
A parcel of land being part of an entire tract of property, situate in the northwest quarter of
Section 3 Township 6 North and Range 68 West of the Sixth Principal Meridian in Larimer County,
Colorado and being described as follows:
Basis of bearing for this legal description is the west line of the northwest quarter of said Section 3
beginning at the found west quarter corner of said section 3, being monumented with found 2-1/2 inch
aluminum cap on number 6 rebar, inscribed “TST CONSULTING ENGINEERS-1999-PLS 33193”, to
the found northwest corner, bearing North 01° 44’ 18” West.
Commencing at the northwest corner of said northwest quarter of Section 3, being monumented with
found 3-1/4 inch aluminum cap; thence, South 01° 44’ 18” East a distance of 31.00 feet along said west
line of the northwest quarter of said Section 3 to a point on an existing easement, being the Point Of
Beginning.
THENCE, departing from said west line of the northwest quarter of said Section 3 North 89°47'25" East a
distance of 30.02 feet along said existing easement to a point on the Strauss Cabin Road R.O.W.;
THENCE, departing said existing easement South 01°44'25" East a distance of 20.01 feet along said
Strauss Cabin Road R.O.W. to an angle point;
THENCE, departing said Strauss Cabin Road R.O.W. South 89°47'25" East a distance of 670.81 feet to
an angle point;
THENCE, South 89°18'55" East a distance of 245.96 feet to an angle point;
THENCE, South 84°57'34" West a distance of 86.41 feet to the beginning of a non-tangent curve to the
left, from which the north quarter corner of said Section 3 bears North 88°32’17” East a distance of
1606.40 feet;
THENCE, with a curve turning to the left with and arc length of 125.67 feet, with a radius of 92.87 feet,
with a chord bearing of South 41°32’24” East, with a chord length of 116.30 feet to an angle point;
THENCE, South 00°30'05" West a distance of 2534.61 feet to an angle point;
THENCE, North 87°52'12" West a distance of 1009.66 feet to the west quarter corner of said Section 3
being monumented with found 2-1/2 inch aluminum cap on number 6 rebar, inscribed “TST
CONSULTING ENGINEERS-1999-PLS 33193”;
THENCE, North 01°44'18" West a distance of 2618.34 along said west line of the northwest quarter of
said Section 3 feet to the Point of Beginning.
The above described parcel of land containing 63.45 acres more or less of land, and is subject to any
easements, conditions and/or restrictions that may exist on or within its lines.
EXHIBIT A-3
H25 Metropolitan District No. 2 Area Boundary
A parcel of land being part of an entire tract of property, situate in the northwest quarter of
Section 3 Township 6 North and Range 68 West of the Sixth Principal Meridian in Larimer County,
Colorado and being described as follows:
Basis of bearing for this legal description is the west line of the northwest quarter of said Section 3
beginning at the found west quarter corner of said section 3, being monumented with found 2-1/2 inch
aluminum cap on number 6 rebar, inscribed “TST CONSULTING ENGINEERS-1999-PLS 33193”, to
the found northwest corner, bearing North 01° 44’ 18” West.
Commencing at the northwest corner of said northwest quarter of Section 3, being monumented with
found 3-1/4 inch aluminum cap; THENCE, South 82° 15’ 24” East a distance of 1121.74 feet to a point at
the beginning of a non-tangent curve to the left, being the Point Of Beginning.
THENCE, with a curve turning to the left with an arc length of 82.97 feet, with a radius of 92.87 feet,
with a chord bearing of North 74°05’55” East, with a chord length of 80.24 feet to an angle point;
THENCE, North 48°30'14" East a distance of 98.38 feet to the beginning of a curve to the right;
THENCE, with a curve turning to the right with an arc length of 13.92 feet, with a radius of 32.81 feet,
with a chord bearing of North 60°39’40” East, with a chord length of 13.82 feet to an angle point;
THENCE, North 72°49'06" East a distance of 56.60 feet to an angle point;
THENCE, South 83°57'54" East a distance of 29.18 feet to an angle point;
THENCE, South 83°44'43" East a distance of 156.80 feet to an angle point, from which the north quarter
corner of said Section 3 bears North 88°05’23” East a distance of 1127.52 feet;
THENCE, South 00°00'00" East a distance of 227.56 feet to an angle point;
THENCE, South 89°29'55" East a distance of 25.40 feet to an angle point;
THENCE, South 00°30'05" West a distance of 5.00 feet to an angle point;
THENCE, South 89°29'55" East a distance of 200.00 feet to an angle point;
THENCE, North 00°30'06" East a distance of 173.90 feet to an angle point;
THENCE, South 89°36'28" East a distance of 265.38 feet to an angle point;
THENCE, South 56°56'01" East a distance of 82.86 feet to a point on the west edge of the Interstate 25
R.OW.;
THENCE, South 24°15'59" East a distance of 793.35 feet along said Interstate 25 R.OW. to an angle
point;
THENCE, South 02°02'35" East a distance of 613.34 feet to a found property corner, being a #4 cap;
THENCE, South 02°02'35" East a distance of 1233.11 feet to a found property corner, being a yellow
plastic #4 cap;
THENCE, North 87°52'12" West a distance of 1378.56 feet to an angle point;
THENCE, North 00°30'05" East a distance of 2534.61 feet to the Point of Beginning.
The above described parcel of land containing 75.10 acres more or less of land, and is subject to any
easements, conditions and/or restrictions that may exist on or within its lines.
EXHIBIT A-4
H25 Metropolitan District No. 3 Area Boundary
A parcel of land, being part of an entire tract of property, situate in the southwest quarter of
Section 3 Township 6 North and Range 68 West of the Sixth Principal Meridian in Larimer County,
Colorado and being described as follows:
Basis of bearing for this legal description is the west line of the northwest quarter of said Section 3
beginning at the found west quarter corner of said section 3, being monumented with found 2-1/2 inch
aluminum cap on number 6 rebar, inscribed “TST CONSULTING ENGINEERS-1999-PLS 33193”, to
the found northwest corner, bearing North 01° 44’ 18” West.
Commencing at the west quarter corner of said Section 3, being monumented with found 2-1/2 inch
aluminum cap on number 6 rebar, inscribed “TST CONSULTING ENGINEERS-1999-PLS 33193”,
being the Point of Beginning;
THENCE, South 87°52'12" East a distance of 2388.22 feet to a found property corner, being a yellow
plastic #4 cap, being a point on the west edge of the Interstate 25 R.OW., from which the center quarter
corner of said Section 3 bears North 77°08’37” East a distance of 262.48 feet;
THENCE, South 02°02'35" East a distance of 2339.01 feet along said Interstate 25 R.OW. to an angle
point;
THENCE, South 01°58'22" East a distance of 35.79 feet to an angle point;
THENCE, South 01°37'44" East a distance of 99.98 feet to an angle point;
THENCE, departing said Interstate 25 R.OW. South 84°55'47" West a distance of 574.58 feet to a point
on the north line of the County Road 36 R.O.W.;
THENCE, North 89°04'36" West a distance of 1098.39 feet along said County Road 36 R.O.W. to an
angle point;
THENCE, North 00°55'24" East a distance of 10.00 feet to an angle point;
THENCE, North 89°04'36" West a distance of 183.00 feet to a point on the Fossil Creek Inlet Ditch
easement;
THENCE, departing said County Road 36 R.O.W. North 09°16'21" West a distance of 283.77 feet along
said Fossil Creek Inlet Ditch easement to an angle point;
THENCE, North 01°46'32" West a distance of 289.41 feet to an angle point;
THENCE, North 32°46'32" West a distance of 144.50 feet to an angle point;
THENCE, North 23°39'02" West a distance of 631.96 feet to an angle point;
THENCE, North 01°50'02" East a distance of 208.47 feet to an angle point;
THENCE, North 17°13'48" West a distance of 746.06 feet to an angle point;
THENCE, North 46°09'32" West a distance of 10.66 feet to an a point on the west line of the southwest
quarter of said Section 3;
THENCE, departing said Fossil Creek Inlet Ditch easement North 01°49'14" West a distance of 384.29
feet along said west line of the southwest quarter of said Section 3 to the Point of Beginning.
The above described parcel of land containing 124.98 acres more or less of land, and is subject to any
easements, conditions and/or restrictions that may exist on or within its lines.
EXHIBIT B-1
H25 Metropolitan District No. 1-3
Project Area Boundary Map
EXHIBIT B-2
H25 Metropolitan District No. 1
Boundary Map
EXHIBIT B-3
H25 Metropolitan District No. 2
Boundary Map
EXHIBIT B-4
H25 Metropolitan District No. 3
Boundary Map
EXHIBIT C
H25 Metropolitan District
Vicinity Map
EXHIBIT B