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OCN > 2504 > Forest Lakes Metropolitan District and Pinon Pines Metropolitan District 3, March 3 – Bonds approved for commercial district; covenant policy enforcement

Forest Lakes Metropolitan District and Pinon Pines Metropolitan District 3, March 3 – Bonds approved for commercial district; covenant policy enforcement


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By Natalie Barszcz

At the Forest Lakes Metropolitan District (FLMD) and Pinon Pines Metropolitan District (PLMD) 3 special meeting on March 3, the board approved the General Obligation limited tax convertible Capital Appreciation Bonds, Series 2025, and approved a covenant policy and design review enforcement resolution for the commercial district.

In attendance were FLMD Manager Ann Nichols, Tom Blunk of 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: Secretary Joe Loidolt, president of Classic Homes, Director/resident James Boulton, vice president/project manager of Classic Homes, and Director Steve Schlosser, a project manager for Classic Homes.

President George Lenz, executive vice president of finance for Classic Homes and Treasurer/Secretary Douglas Stimple, chief executive officer of Classic Homes, did not attend.

There were no public comments made during the meeting.

PPMD 3 capital appreciation bonds

Peykov requested the board consider approving the issuance of General Obligation limited tax convertible Capital Appreciation Bonds, Series 2025 for PPMD 3, with a principal amount not to exceed $21 million.

Bond counsel Tiffany Lu Leichman of Taft Stettinius & Hollister LLP summarized the parameters resolution and the bond documents and said the bonds are expected to maintain a fixed interest rate for about a 30-year term. The pledged debt service will be capped at 40 mills subject to an adjustment with a minimum levy of 32 mills. The total maximum repayment will be $27 million with a maximum of 18% interest to a maturity date of no later than Dec. 1, 2056.

Blunk said the service plan allows 50 mills but capped the debt service at 40 mills and is working toward 32 mills. The decision to begin with 40 mills was indicative of the market at the time the commercial development in PPMD 3 began.

The board approved the resolution and identified Nichols as the district representative with Lenz designated as the board representative to execute the documents and other items related to the issuance of the bonds.

Kyle Thomas of D.A. Davidson said the pricing will be assessed at the beginning of April with a tentative closing on April 10.

Peykov said that all signatures will be collected before the closing, and she requested the board approve all the engagement letters for Causey Public Finance LLC and Taft Stettinius & Hollister LLP, ratifying the development strategies pertaining to the preparation of market and tax assessment study, and the ratification of the D.A. Davidson engagement letter.

The board approved ratification of the engagement letters.

PPMD 3 covenant enforcement

Peykov requested the board adopt and approve a PPMD 3 resolution adopting policies concerning covenant enforcement and design review services, limited to PPMD 3 for the property within its boundaries. Peykov said covenant violations are recorded against the property, but under a bill that was passed in the last state legislative session metropolitan districts that provide covenant enforcement and design review services are required to have certain policies in place.

For metro districts with only commercial property within their boundaries, those new policies are limited to having a policy in place, for when the district would impose fines and provide notice to any alleged violators. The district policy is limited to imposing fines and the steps it would need to take. The district provides services regardless of the types of properties, but the current policy could be corrected to include requirements for residential properties should those types of properties be included in the commercial district, said Peykov.

The board approved the covenant enforcement and design policy.

The meetings adjourned at 4:22 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 District Manager Ann Nichols at 719-327-5810, anicholsduffy@aol.com.

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

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