7:00pm
Call
to Order – Errol
called the meeting to order & said that we have selected legal council to
assist us form a special district. Gary
White the principle of White Bear & Ankele, P. C. (WBA) is in attendance.
We wish to introduce him and have him address the group.
7:02
White Bear
& Ankele, P. C. (WBA) – Gary
White, Attorney at Law
WBA Experience –
Gary
began by saying his firm forms
districts, represents districts after organization and lead the bond
issuance/financing efforts. WBA
serve as general counsel to districts much as a city
attorney represents a city council.
Gary
has been specializing in special districts work since 1983.
WBA is the largest firm in the state doing this work.
Currently the firm has 15 attorneys.
WBA has over 75 years of combined experience.
A former partner and Gary worked to develop a new model service plan and
review/approval procedure for the City of
Aurora
. They worked for well over a year
with senior city staff, council members and the Mayor on this effort designed to
simplify the entire process due to the fact that the city receives so
many requests to form new districts. WBA recently formed a special district for
some homeowners in
Eagle
County
. A wealthy development group purchased a large section of land including the
dirt roads accessing the homeowner’s homes.
The homeowners formed the district to prevent the developer from closing
the access to their homes.
Why pro bono – When
WBA read the United Associations of Heather Ridge was considering forming a
special district,
Gary
contacted the City of
Aurora
. Mayor Tauer, the Council and WBA
firm worked very well together in our combined efforts to create the new model
service plan in establishing procedures in special district formation.
A lot of effort was expended by the city leadership and as a thank you to
the city and Council, WBA felt it appropriate to offer to the Mayor and Council
that
Gary
’s firm would do the organizational work for the UAHR district without charge
for legal fees. WBA is also
committed as a firm to giving back to the communities in which we operate and
Gary
felt a personal interest in helping a group of homeowners who otherwise might
be rather exposed to the strategies and plans of a well financed development
effort to rezone the golf course.
Aurora
special district / golf
courses – The
City of
Aurora
did stipulate that new special districts cannot own or operate new golf courses
with in
Aurora
. This infers new golf courses and we will work with the staff and city council.
This can be waived by the council since Heather Ridge Golf Course is not
new and acquisition by the UAHR district will not violate the intent of city
policy.
To do list – The
general overview of procedures for us to
form a Special District and general items to be accomplished before the May,
2006 election include:
a.
BACKGROUND WORK ON THE FINANCIAL ABILITY
OF THE COMMUNITY TO ISSUE BONDS TO ACQUIRE
THE GOLF COURSE. POLITICAL WORK TO
DETERMINE WILLINGNESS OF COUNCIL TO AMEND PROVISIONS OF THE MODEL SERVICE PLAN
TO ALLOW THIS EFFORT TO PROCEED. COMMUNITY
WORK TO DETERMINE THE WILLINGNESS OF YOUR TAXPAYING NEIGHBORS TO PAY WHAT IT
WILL COST TO ACQUIRE, OWN, MAINTAIN AND OPERATE THE GOLF COURSE AND DISTRICT.
(NOW THROUGH YEAR END)
b.
PREPARATION OF SERVICE PLAN CONTAINING
THE FINANCING PLAN OF THE DISTRICT (JAN 2006)
c.
COUNCIL APPROVAL OF SERVICE PLAN (FEB/MAR
06)
d.
DISTRICT COURT HEARING TO CALL THE
ORGANIZATIONAL AND DEBT ELECTION (MAR/APRIL 06)
e.
ELECTION TO FORM DISTRICT, ELECT
DIRECTORS AND APPROVE BONDS AND TAXES (MAY 06)
f.
SOMEWHERE IN THIS TIMELINE CONTACT NEEDS
TO BE MADE, PROBABLY BY WBA, WITH THE LAND OWNER TO DETERMINE WILLINGNESS AT A
MARKET PRICE, TO SELL THE COURSE IF THE DISTRICT IS FORMED.
Should
the golf course be maintained by the owner or be sold to another party as a golf
course. It might be appropriate to
simply form a special district without the tax or the bond items.
The special district could then remain inactive on paper as long as
periodic necessary reports are filed with the state and the city.
Questions
were posed and discussed:
Pete
Trainer asked about the size of area needed for voter support.
And how is the value of the golf course determined? –
Gary
said it is difficult to say at this time. An appraisal is needed to determine
best use.
Pete
also asked how we bridge asking price with appraised value.
–
Gary
said there is legal, political and financial risk to the golf course owner.
They may recommend the services of a financial group to help with valuations to
determine mil levy.
Errol
pointed the elections can be held any November with a general election or only
on the even years in May. May, 2006
would be most advantageous. Elections
in May normally are very specific and voters with strong opinions will turn out.
The November election is general with a much larger turnout.
As a rule people voting in the November election are not as informed on
issues such as district formation. If
we don’t get it on the May 2006 it would have to wait until a November
election or until May 2008.
Errol
also mention to keep in mind UAHR is not venturing into the unknown.
Heather
Gardens
formed a special district in 1983 to preserve their golf course.
That can be the model and it has been a success.
Three issues can be on the election ballot:
1.
The ballot item
to form a special district with specific a geographic boundary
2.
The ballot item
to issue bonds to finance the acquisition of the golf course.
3.
The ballot item
to tax homeowners within the special district
Remember
that a special district does not have to be taxed. It can be a paper district,
which is necessary to control the property as a special district.
Gary
said that ideally we are
looking for a cooperative endeavor with the current owner and aim for a level
playing field.
At
this point Gary White, Aurora Council Member Molly Markert and Aurora Council
Member Sue Sandstrom excused themselves and a round of thanks was offered to
them for all their help and support.
7:22 Old
Business:
Reading & Acceptance of Minutes of August 8,
2005 Meeting
The
minutes of the August 8, 2005 Representative Meeting and Addendums 1, 2, and 3
were read and discussed. Upon motion by Mike Trombley and seconded by Terry
Moran, both of Chimney Hill, the minutes and Addendums were accepted. See Attachment A
and also attached to August, 8 2005 minutes.
7:35
Treasurer’s Report – RE: Vinny Roith for Cathy Thrash
Vinny
Roith reported for Cathy Thrash on the seed money by displaying a chart (See Attachment B)
detailing $6,350 total contributions received to date. A discussion followed
with several questions being asked. Richard Doby had a question regarding the
attorney fees and budget for expenses. Attorney fees are pro-bono and a budget
for expenses, i.e. $3,500 for filing fee plus election costs and expenses to
date has been made.
·
Seed Funding – $6,350
total contributions received to date -- See Attachment
B
·
Although a few
small expenses have been incurred, to date none had been paid.
·
Dissolution – In the event
of the corporation’s dissolution, any excess funds will be returned to
donators in direct proportion to the contributions.
This is also reflected in the Articles of Incorporation filed with the
State of Colorado Secretary of State.
Carl
Mayfield of Strawberry asked the amount to be expected to complete the
transaction to acquire the golf course. Errol
responded that that we have a good idea of two of the three major financial
categories:
·
The cost to
repair the infrastructure & short term operations until the golf revenue can
be reestablished and
·
Golf operations
projected P & L.
·
The final item,
we have not been able to determine, is the acquisition amount of the golf
course. Until we have formed the special district we are not in a financial
position to begin negotiations.
George
Dumas said that we are now in the process of obtaining the valuations of our
communities which WBA pc (our attorneys), have requested.
7:45 Accomplishments – Committee Updates
