Forest Lakes Metropolitan District and Pinon Pines Metropolitan District 3, Aug. 14 – Debt authorization ballot initiative approved

By Natalie Barszcz

The Pinon Pines Metropolitan District (PPMD) 3 board held a special meeting on Aug. 14 to approve a debt authorization ballot initiative for the November election.

Attending via teleconference were District Manager Ann Nichols, Forest Lakes Metropolitan District (FLMD), Tom Blunk, CP Real Estate Capital, representing Forest Lakes LLC and Forest Lakes Residential Development, District Attorney Nicole Peykov of Spencer Fane law firm, and the following board directors: President George Lenz, executive vice president of Finance for Classic Homes, Secretary Joe Loidolt, president of Classic Homes, Treasurer/Secretary Douglas Stimple, chief executive officer of Classic Homes, and Director James Boulton, vice president/project manager of Classic Homes.

Director Steve Schlosser, project manager for Classic Homes, did not attend.

Note: The timing for the meeting was unclear for some of the dial-in participants due to an early email exchange confirming 4:30 p.m. A meeting time of 4 p.m. was published on the district website. Peykov and Blunk joined the meeting late due to the miscommunication.

Debt authorization requires special election

Nichols said the need for a special election on Nov. 5 to approve a new debt authorization for PPMD 3 came about due to Blunk working with an underwriter to issue bonds from PPMD 3 a couple of years ago. Then an issue was raised by the Town of Monument with the building of warehouses, and Blunk pulled back on issuing bonds from PPMD 3 due to an unattractive bond market. The underwriter knew that the state statute to issue debt would expire after 20 years, and Spencer Fane informed the district that the statute had expired since the authorized debt had been approved in 2003, said Nichols.

Peykov said the only debt issued for PPMD 3 was voter approved in a 2003 election. Because the debt is only valid for 20 years under the Colorado Special Districts Act, the board needs to consider authorizing an election to gain voter approval again. The proposed ballot questions will only be mailed to the PPMD 3 board members, the only eligible electors. PPMD 3 does not have any residents and the commercial lot owners/businesses are not eligible to vote. For the district to issue any further debt, voter approval is required, said Peykov.

Lenz asked if the 2024 ballot would differ from the 2003 ballot, knowing the numbers are likely much higher now.

Peykov said the allocation in the PPMD 3 service plan is limited to a $21 million cap unless the board wanted to proceed with a service fund amendment up to $97.3 million for an intergovernmental agreement with FLMD (the operation district with the project). The amendment is limited to the $21 million cap for water, sewer, and street infrastructure.

Stimple said this election is necessary for Blunk to issue or receive financing for PPMD 3, and if the owners Forest Lakes LLC decided to lend funds to the district.

The board unanimously authorized the election to be conducted by Spencer Fane law firm on Nov. 5.

The meeting adjourned at 4:18 p.m.

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Meetings are usually held quarterly or when necessary, on the first Monday of the month at 4 p.m., via teleconference. Meeting notices are posted at least 24 hours in advance at https://forestlakesmetrodistrict.com. For general questions, contact Nichols at 719-327-5810 or anicholsduffy@aol.com.

Natalie Barszcz can be reached at nataliebarszcz@ocn.me.

Debt authorization requires special election

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