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Hold

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on.

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» All right.

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Good.

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» Like to call to order the Town of
Frasier Board of Trustees meeting

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Wednesday, August 5th, 2026 at 6 PM. Can
I have a roll call, please?

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» Adam Quickland,
>> Peggy Smith, Julie White,

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» Lewis Gregory,
>> Katie Souls,

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» and Brian Cirven. Um, could I have a
motion to approve the agenda, please?

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» So moved.
>> Second.

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» Any further discussion? All in favor? I
I

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» Any opposed? Okay, motion passes. Could
I have a motion to accept the consent

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agenda which includes the minutes for
July 2020, sorry, July 22nd, 2026 and

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resolution 2026 0801
approving revocable license agreement

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with Rendev Community Association.
>> So moved.

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» I'll second.
>> Further discussion?

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All in favor?
>> I.

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» Any opposed?
Okay. Motion carries. All right, we are

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moving on to open forum. This is for
business not on the agenda. Anyone in

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the room that would like to approach the
board to uh talk about a topic that is

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not on the agenda, feel free to approach
the podium or if you're online, raise

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your hand.

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All right, seeing none, we'll move on to
discussion and possible action regarding

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» resolution
2026

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0805
accepting the resignation of a trustee

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and filling the vacancy. Antonette,

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» mayor, board, and trustees, Antonet
McVey, town clerk. Um, so tonight we're

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entertaining a resolution 2026805
to fill the vacancy from the resignation

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of Katie Fischer um and the board. So
Katie Fischer resigned on July 15th,

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2026 and that was effective the same
date that she resigned. Um and the

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statutes do allow the board of trustees
to appoint somebody. Colorado uh revised

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statutes 31 314 3031.
Board of trustees has a power by

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appointment to fill vacancies in the
board or any other office and the person

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so appointed shall hold this office
until the next regular election or until

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his successor is elected. Our next
regular election is November 3rd, 2026.

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The board also has the power to fill the
vacancy in the board and any other

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elective office of the town by ordering
an election to fill the vacancy until

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the next regular election or until the
successor has been elected and has

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complied with the section CRS 3441.
Um, so this resolution officially

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accepts the resignation of Katie Fiser.
Um, and in your packet, we only received

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one application, which was Kenneth
Jensen. Um, he is here this evening. If

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00:08:09,360 --> 00:08:15,599
you guys would like to ask him any
questions um before considering um who

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you would like to appoint to the board
this evening,

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00:08:19,919 --> 00:08:27,520
» I guess I'm not going to sneeze. All
right. Um All right. Um well, great. I I

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00:08:25,840 --> 00:08:31,039
think it would be great to hear from Ken
a little bit if you want to

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00:08:29,360 --> 00:08:34,080
» tell about yourself, introduce yourself
to the community.

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00:08:34,479 --> 00:08:44,240
Good evening. Uh, I'm excited to be on
board and uh, I think I can bring a lot

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of experience. Um, I grew up in a small
town in Montana, so I'm used to the, uh,

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small town atmosphere and, uh, helping
out communities and, um, former business

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owner, former banker,
um, kind of a finance guy.

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So, um, think I can, uh, be a good
addition. You guys like,

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» great. You guys have questions?
>> Tell us about and everyone who's

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listening, your current involvement
within the Fraser Valley community.

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» So, I am the vice chair in the Fraser
River Housing Partnership. Fraser River

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Valley Partnership. It's always a
mouthful. Um, been with them since its

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inception.
and uh been working on obviously

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supporting St. Louis Landing, New
Village, um you know, Habitat for

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Humanity development that's going to
take place up in Grandi. um you know

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very interested in making sure that we
do have what I call attainable housing

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in this county and uh we are currently
undergoing a housing assessment for the

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whole county and uh we're going to try
to get more data on what is really

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needed in this county and so
I've been involved in that. I'm also

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involved in an impact fund with Graham
Foundation. Um and uh I've enjoyed being

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involved in that. And then uh outside of
that um just been currently retired

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working on my house.
>> I just finished a huge project mitigated

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my whole yard which is about acre and a
half. So um I just finished that

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yesterday. So this is time.
>> [laughter]

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» Congratulations.
>> That's great.

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» Okay. Thank you.
>> You bet.

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» Any other questions?
>> No. Thanks, Ken.

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» I'd like to make a motion to appoint uh
Ken to the board.

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» Well, we have an official resolution on
the table.

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» 20 26805
accepting. That was the resol. No.

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» Yeah. So, it both accepts the
resignation of Katie Fischer and then

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there's a blank that says the board of
points.

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» Okay. And filling the vacancy with Ken
Jensen.

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» Second.
>> Any further discussion? All in favor?

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» I opposed. Right. Welcome, Ken.
>> Hey.

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» All right. Thank you.
>> We're scar you in right now.

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Ken, if you want to sit down
>> official.

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» Um, would you like to raise your hand or
pajar?

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» Um, and just repeat after me. I Kenneth
Jensen

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» I Kenneth Jensen
>> do solemnly affirm

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00:11:44,480 --> 00:11:47,680
» do solemnly affirm
>> that I will support the Constitution of

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the United States
>> that I'll support Constitution of the

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United States
>> and the state of Colorado

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» and the state of Colorado
>> the Frasier Town Code

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» the Frasier Town Code
>> and faithfully perform the duties of the

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office
>> and faithfully perform the duties of the

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office
>> of town Frasier Town Trustee upon which

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I am about to enter
>> of Frasier Town Trusted of which I am

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about Congratulations.
>> Thank you.

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» Welcome aboard.
>> Awesome.

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» Thank you.
>> Yeah.

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00:12:21,760 --> 00:12:26,880
» Yeah. Oh, I think it's I think it's Matt
Ginsburg. It's just

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» kind of freaking out.
>> I'm sorry. Annie Ginsburg, could you

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please stop raising your hand and
putting it down? Thank you.

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» It's probably a cat on the keyboard.

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00:12:39,680 --> 00:12:46,000
Um, okay. Moving on to resolution
2026802

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approving Grand Kids Learning Center
lease for St. Louis Early Childhood

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00:12:48,959 --> 00:12:55,120
Education Center.
>> Sarah,

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» uh, good evening board. Uh, Sarah
Katanite, town manager. So, before we

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jump into the lease, we do have
grandkids with us um to give just kind

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of an update on what's been going on
with their organization. Um, they've

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also put uh together their budget with
their actuals and kind of their

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00:13:08,959 --> 00:13:15,120
projected budget for the buildout of St.
Louis. So, we're going to walk through

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that. The board's welcome to ask them
any questions and then we can go through

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the terms of the lease. Um, if the board
is comfortable with the lease as is or

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there's kind of minor revisions, we can
make those and approve them. If we need

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to bring the lease back after further
discussion, we can do that as well. Um,

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but I would like to invite Anya Cliss,
who is the new executive director of

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Grandids and her team to go ahead and
kind of let you know what's been going

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on with Grandids.
>> All right. Yeah,

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» thanks. Yeah, come on up.
>> And I'll just throw in as well before

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any gets started that we also have Megan
Liddine with us this evening um who's

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been working with grandkids and has come
to just kind of answer any questions she

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might be able to.
>> Well, hi everybody. Thanks for having us

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here today. My name is Ana Kliss. I'm
the executive director of Grand Kids

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Learning Center as of February this
year. Um, a little history about myself

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with the organization. I've been with
Grand Kids since 2020. Um, sort of as an

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00:14:12,320 --> 00:14:20,480
assistant teacher, stepped um into the
site director role um not too long after

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that. Worked in that role for about five
and a half years or so. um and then am

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now the executive director and excited
to be sharing um where we're at within

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the organization and where we hope to
go. Um I won't read you our our little

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one pager. It was in your your packet.
Hopefully you had a chance to to review

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that. Um but a little bit about where we
are at right now. We operate out of

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three locations. Um the red building,
which you're familiar with. I'm sure you

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hear the kids running and screaming each
and every day. Um, we operate out of a

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Witi Meadows complex building that
houses three classrooms. Um, and then

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our most recent addition is our Graanby
location which opened in February of

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2024. Um, across the board, we currently
have capacity for 96 licensed child care

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spots. Um, we are currently serving 64
local families. Um, our capacity can

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serve 16 infants, 16 toddlers, 19 um,
older toddlers, we call them junior

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preschoolers, that's that two-year-old
um, age group. And then 42 preschool age

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children. Um, our board of directors,
which I have two of them here with me

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today, Bethany Lashley, our treasurer,
and Rebecca Redell, our board president.

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Um, our board has really prioritized
staff retention. Um, several years ago,

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that was a huge detriment to the
organization. we were having to close

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classrooms. Um really struggling to stay
afloat. At one point we weren't sure if

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we were going to have to close a whole
building. Um so the board realized that

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was going to be their ultimate priority.
Shifted the focus there to

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sustainability and since then have um
kind of made it through each school year

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with an 85% staff retention rate. Um
which in the early childhood field

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that's pretty huge. Um I would say that
retention rate is a little bit higher

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with um those in leadership roles as
well. Um, and right now we're averaging

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at about 30 to 35 full-time employees.
Um, right now we hold on Eastern Graham

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County um, 100% of community based
infant slots. 35% of our families

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qualify for income based tuition
assistance, but 51% of our families are

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receiving tuition discounts um, from
state programs and then internal

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scholarships, too.
That's a little bit about where our

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organization is at. Um, and we are
hoping that we can move into St. Louis

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to continue to serve the greater Grand
County community. Um, especially in the

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Frasier, Winter Park, Tavern area. We
think that's going to be where child

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care is currently really needed. uh that
would not only double our license

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capacity in our Frraasier educational
campus, but it would also um bring about

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15 new teaching positions um available
in the community um and gives us

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00:17:09,039 --> 00:17:15,360
opportunities for school age um summer
programs, opportunities for after school

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care for local families. It really opens
the door for grandkids.

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It's
>> great. Thank you.

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00:17:27,039 --> 00:17:32,600
Bethany, did you want to walk through
some of the numbers?

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00:17:36,799 --> 00:17:47,919
So, Bethany Lashley, treasurer. Um, been
on the board for two years now, heading

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00:17:42,880 --> 00:17:52,400
into three. Um, we have worked a ton on
our budget recently. So for those of

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00:17:50,240 --> 00:17:58,320
you, it was about a year ago that saw
what we were looking at. Um, lot of

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00:17:54,960 --> 00:18:03,039
negative numbers. Um, some questioning
of grants and how we were presenting

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00:18:00,640 --> 00:18:08,160
those revenues and those income streams.
So if you looked at this packet, you may

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00:18:05,679 --> 00:18:14,320
have been surprised to see our positive
numbers that were coming up. And a big

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00:18:11,120 --> 00:18:19,120
part of that was thanks to Anya and our
staff as she came on board going through

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00:18:17,120 --> 00:18:22,960
our expenses, really tightening some
things up for us, renegotiating some

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00:18:21,280 --> 00:18:27,760
contracts with some of the members in
the community. Um, great great things

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00:18:25,600 --> 00:18:32,080
that have happened. Um, including a new
roof on our red building. If you guys

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00:18:29,760 --> 00:18:37,600
have seen that, that has been amazing.
Um, who roofing company, right? Roofing

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00:18:34,799 --> 00:18:41,200
company donated that to us. And so our
team has really been strong at reaching

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00:18:39,919 --> 00:18:44,960
out more
>> now and getting that community

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involvement which has been great. Um the
other part of that was going through and

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00:18:47,039 --> 00:18:54,720
really looking at what our grants looked
like over the last three years and

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00:18:51,760 --> 00:18:58,720
trying to put that commitment to paper.
So we were always very conservative

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00:18:56,400 --> 00:19:03,520
before worried about will that money
really come in being that it's a grant

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00:19:01,280 --> 00:19:07,679
and now we've really taken that focus of
yes here's what we have gotten here's

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00:19:05,600 --> 00:19:11,840
what's been committed to us and then
also realizing that that could fluctuate

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00:19:10,080 --> 00:19:16,880
within the county over the next year and
us being able to keep a better finger on

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00:19:13,760 --> 00:19:21,679
where those pools of money are and shift
if we need to. So, we're starting at a

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base of 350,000
of that we are willing as an

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00:19:23,520 --> 00:19:32,160
organization to work on getting for
grants to help offset that tuition is

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00:19:29,600 --> 00:19:35,840
that's coming in. And with that, we're
looking at starting a positive cash

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00:19:34,240 --> 00:19:39,919
flow. And we also think that's
realistic. This is a lot of time and

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00:19:37,600 --> 00:19:44,720
effort we put into this and we think
that's great. So, um, if you looked at

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00:19:42,799 --> 00:19:49,039
our budget to actuals, you can see that
starting to happen already and see that

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00:19:47,120 --> 00:19:52,880
we're up at 200, I know that one, pardon
me, 250,000,

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00:19:51,200 --> 00:19:56,640
a little more that we have already
secured this year, which has been

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00:19:54,799 --> 00:20:02,240
wonderful. So, part of that town of
Frasier as well. So, thank you guys. Um,

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00:19:59,600 --> 00:20:08,640
going into our budget, so this is in
your packet. Um, so our projections for

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00:20:04,880 --> 00:20:15,360
2027 when we would enter St. Louising um
up through 2032. Um you can see overall

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00:20:12,320 --> 00:20:23,200
for our facilities we have been able to
get into a positive role with those. Um

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00:20:19,440 --> 00:20:28,159
this includes our teachers being at a
salary that we are comfortable with that

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00:20:26,559 --> 00:20:32,320
it's actually getting them to that
livable wage. I know we have a teacher

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00:20:30,960 --> 00:20:36,799
extension, but I don't remember that
that exact name um that's coming in that

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00:20:34,559 --> 00:20:41,200
will actually help us get there as well,
but we are able to calculate those

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00:20:38,880 --> 00:20:47,520
payroll and those benefits. Um still
coming in at about 85% of our total

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00:20:44,000 --> 00:20:52,480
expenses. Um but our teachers will be
where we want them. So again, if you

200
00:20:50,240 --> 00:20:56,400
remember our previous budgets, we had
where we were at and also where we

201
00:20:54,480 --> 00:21:00,720
wanted to be and there was a huge
disconnect in getting our teachers where

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00:20:58,000 --> 00:21:01,919
they wanted to be. And now we are there
which is

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00:21:01,360 --> 00:21:06,960
» great
>> very exciting.

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00:21:03,919 --> 00:21:10,559
» Um I also did a breakout here for St.
Louis itself because I know that was

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00:21:09,120 --> 00:21:15,919
really important for you guys to see the
impact of just that building on

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00:21:13,039 --> 00:21:20,640
grandkids as a whole. Um some of the
numbers like our tuition um are solid

207
00:21:18,880 --> 00:21:26,320
numbers that would be coming in. Some of
them are a percentage base of um income

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00:21:24,960 --> 00:21:31,200
that's coming in. So some of our
expenses, how we have them broken out is

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00:21:28,400 --> 00:21:36,960
based on the income that St. Louis
Landing would be bringing in versus the

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whole organization. So those were our
assumptions there to try and get us to

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the correct um number. Um you can see
obviously 2027 and 2028 is a little bit

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00:21:46,159 --> 00:21:51,039
lower, but that's as we're
transitioning, as we're getting into the

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building. um that accounts for us having
a lease still over in Wedi that we're

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then going to have to get out of and we
will do our best to minimize that cost

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once we know exactly when we're in that
building. Um but all of that is

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accounted for and actually under this
budget for St. Louis. So you can see

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00:22:04,240 --> 00:22:12,880
that effect um scaling as we scale up
through the kids um you can see that we

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00:22:10,880 --> 00:22:17,520
are actually doing better. I know that
was another big question previously is

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as we scale up and get more kids are we
financially doing better or worse and

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reflected in here we are doing
significantly better which is great as

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well. Um another
assumption under there was the rent for

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the building which I know this will come
up with you guys. So that first three

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years we did account for that $1,000 a
year rent um but then I scaled it up to

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$24,000 a year. starting in 2020. So, we
are looking at being able to accommodate

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more rent and looking at that expense
and still doing well.

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Um, all right. Anything else [laughter]
at the moment?

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00:22:57,520 --> 00:23:03,840
» Yeah. Hey, I was just curious, what do
what do you pay for rent currently?

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00:23:02,640 --> 00:23:06,960
» Hold on. You might have top of your
head. If not, I can.

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00:23:04,880 --> 00:23:11,840
» Monthly, we have been paying about
3,200.

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» This is just that are
>> Yeah. Treasure, right?

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00:23:13,280 --> 00:23:21,760
» Yeah. However, it did increase or it
will increase um for August.

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» Oh, is this at over at WP?
>> That is correct.

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» Yeah.
>> But it um it averages about 36,000

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annually.
>> 36,000.

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And your expenses, I don't see a
separate line item for rent. You just

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have it all bunched together under
operating expenses.

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00:23:41,440 --> 00:23:49,120
um just for the summary. I think that's
how that's presented, but we definitely

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have it broken out within our expenses
and financials.

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So, if we need to do further breakdowns,
have to.

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00:23:54,159 --> 00:23:57,159
» Yeah.

241
00:23:57,679 --> 00:24:04,400
» Um and I guess that's another point we
haven't made too is um financial

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00:24:01,520 --> 00:24:09,679
transparency across all of this. Um,
we're working on getting reviewed

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00:24:06,159 --> 00:24:15,440
statements, you know, for 2025 and being
able to produce these for you as needed.

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00:24:13,440 --> 00:24:19,600
Um, right out of our QuickBooks program,
like here's our actual, here's our

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00:24:17,039 --> 00:24:22,799
budget, and being able to give you guys
that transparency that you need on an

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00:24:21,279 --> 00:24:27,600
ongoing basis. And so whether that
review is quarterly,

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00:24:25,600 --> 00:24:29,919
annually, what whatever it is that we
decide within the lease and the

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00:24:29,440 --> 00:24:34,159
perspective,
>> no, this is much better than last year.

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And appreciate you filling in some of
the blanks. We obviously want you to be

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00:24:36,480 --> 00:24:44,720
successful. So, um, do the numbers and
making sure that you're financially

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00:24:43,120 --> 00:24:47,039
viable, right?
>> Absolutely.

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00:24:46,240 --> 00:24:50,080
» Yay.
>> Yeah,

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00:24:47,600 --> 00:24:56,320
» you can you can see the jump from 2029
to 2030 um uh in that operating expenses

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00:24:53,760 --> 00:25:01,600
for the St. Louis dining specifically.
So, yeah, it's not broken out in this,

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00:24:58,480 --> 00:25:05,200
but it's obviously accounted for.
Well, the other issue is around the the

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00:25:03,679 --> 00:25:10,320
buildout. So, you're spending a lot of
money in 2027 on building out the

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00:25:08,640 --> 00:25:15,279
facility
and then in 2028

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00:25:13,279 --> 00:25:20,960
there are no revenues coming. I assume
you're going to still get grants and be

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00:25:18,000 --> 00:25:24,760
able to supplement that.
>> Absolutely.

260
00:25:21,760 --> 00:25:24,760
» Okay.

261
00:25:25,200 --> 00:25:30,320
» And Lewis, they do correct me if I
mistake this. They do have their

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00:25:28,080 --> 00:25:35,600
buildout right now separated out from
their larger budget. So if you scroll

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00:25:32,400 --> 00:25:38,640
down to the last page, that's a budget
specific to their their buildout.

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00:25:37,360 --> 00:25:42,542
» Yeah. No, that's what I'm looking at.
>> Okay, great.

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00:25:39,200 --> 00:25:45,440
» But it's a negative number.
[clears throat] They have a gap there

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that they need to fill.
>> Yes.

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00:25:46,880 --> 00:25:54,480
» Yep.
>> And we'll be talking about that in a

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minute here. Yeah. Okay. Thank you.
Thanks.

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00:26:01,440 --> 00:26:09,039
So, also in your packet is a staff
briefing and then a draft lease um that

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00:26:06,640 --> 00:26:13,919
we've worked on with grandkids. Uh and
then a resolution if you wanted to move

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00:26:10,799 --> 00:26:18,159
forward with approving that lease. Um as
we [clears throat] previously talked

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00:26:14,960 --> 00:26:23,200
about the way it's currently presented,
uh it would be starting out at $1,000

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per year. Um we've written it as a
15-year term. Um but there is the option

274
00:26:26,559 --> 00:26:35,360
to exit that lease early if need be. Uh
it is written such that the rent would

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00:26:32,799 --> 00:26:39,919
not remain fixed and every 3 years could
be revisited by the board and could be

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raised or decreased at the discretion of
the board. Obviously grandkids would

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00:26:42,240 --> 00:26:48,400
have the opportunity to you know
negotiate that and decide if they wanted

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00:26:45,919 --> 00:26:54,159
to stay with the lease or not. We wanted
to have some guard rails in there. Um,

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00:26:51,440 --> 00:26:59,120
not knowing what the future holds, but
wanting some protections for grandkids.

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Um, and so right now it is listed that
that maximum rent rate would not exceed

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00:27:01,440 --> 00:27:08,480
24,000 per year. Um, both that starting
lease and that maximum lease rate is

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something that the board can discuss.
Um, but those are the starting points

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that are included in the current draft.
Um, I looked at a number of leases by

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other communities and tried to build in
some of the safeguards that they had

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00:27:21,600 --> 00:27:28,880
when they had leases with early
childhood education facilities. Um, so

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00:27:26,400 --> 00:27:32,480
there is some reporting requirements and
just kind of ground rules around

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00:27:30,559 --> 00:27:36,240
communication to make sure that town
staff and the board are not

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00:27:34,320 --> 00:27:39,600
micromanaging their operations and
allowing them to to do their daily

289
00:27:37,840 --> 00:27:43,120
operations, but that we are in the loop
and making sure that they are keeping up

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00:27:41,120 --> 00:27:47,200
with all of their licensing standards,
quality care. Um, if there is any

291
00:27:45,600 --> 00:27:51,919
incidences where the state would need to
be involved that they would have to

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00:27:48,480 --> 00:27:56,799
notify us so we'd have that heads up. um
it does require them to pay kind of

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00:27:53,840 --> 00:28:01,039
their general utility cost, insurance
costs, things like that. Um we'll talk

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00:27:58,720 --> 00:28:04,399
in a minute here about that buildout and
if the board wants to support that

295
00:28:02,720 --> 00:28:08,000
through the new market tax credits and
some of those funds that are coming in,

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00:28:06,240 --> 00:28:13,600
but they are ultimately responsible for
that buildout and ongoing maintenance.

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00:28:10,799 --> 00:28:18,720
Um,
I think those are a lot of kind of the

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00:28:16,159 --> 00:28:24,640
key terms, but I'm happy to talk through
any other aspects of the lease or any

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00:28:22,000 --> 00:28:30,320
questions that the board might have.
>> Did you get the insurance requirements

300
00:28:27,200 --> 00:28:34,880
kind of from these other leases?
Yeah, we kind of started with a standard

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00:28:32,399 --> 00:28:40,159
commercial lease and then uh the pieces
that I pulled from other town leases

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00:28:37,600 --> 00:28:46,240
have more to do with the specifics of a
child care center operating there. Um

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00:28:43,840 --> 00:28:51,039
the other piece we talked about as well
is if grandkids did want to allow

304
00:28:48,720 --> 00:28:55,600
somebody else to use that space um for
something outside of standard kind of

305
00:28:53,120 --> 00:28:58,720
grandkids operations that they would
request permission from the town for

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00:28:57,279 --> 00:29:02,240
that and we could look at that if that
was anything where somebody was being

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00:29:00,240 --> 00:29:06,559
you know charged to provide additional
child care services outside of grandkids

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00:29:04,880 --> 00:29:11,600
daily operations.
>> So we allow them to subleasase the uh

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00:29:09,440 --> 00:29:14,600
space. they would have to request our
permission.

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00:29:15,520 --> 00:29:27,360
» So relative to the lease, basically
grandkids has a 60 day out of the lease

311
00:29:25,120 --> 00:29:32,559
any any time.
>> The way it is currently written,

312
00:29:30,240 --> 00:29:36,000
um it is that both grandkids and the
town may terminate the lease before

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00:29:34,159 --> 00:29:40,480
expiration by providing the required
notice.

314
00:29:38,399 --> 00:29:46,200
And so yeah, it is 60 days. But again,
that is something that we could we could

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00:29:42,320 --> 00:29:46,200
change if we wanted to.

316
00:29:49,120 --> 00:29:56,399
» What is their current current out? They
have they have to pay what is it through

317
00:29:54,559 --> 00:29:59,360
2027?
Are they stuck in their lease for

318
00:29:58,000 --> 00:30:03,399
another year?
>> 15 years. Atwood PD

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00:30:03,760 --> 00:30:11,279
until the end of July of
>> So you're on the hook for $36,000 for

320
00:30:09,760 --> 00:30:17,520
next year.
>> Yeah, it's built into our budget.

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00:30:15,120 --> 00:30:21,360
Well, and they the hope is that they can
get some early access once we have a

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00:30:19,279 --> 00:30:25,919
temporary co for that space and
hopefully get in there roughly by the

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00:30:24,159 --> 00:30:29,919
end of the year to start doing some of
that grandkids buildout and working on

324
00:30:28,159 --> 00:30:34,640
licensing requirements because that will
take a while. Um, the earliest we're

325
00:30:32,320 --> 00:30:40,880
anticipating them moving in to actually
operate would be March. Um, and so

326
00:30:37,600 --> 00:30:46,840
really it's the months of March through
July or August that that they'd have

327
00:30:43,679 --> 00:30:46,840
that overlap.

328
00:30:49,600 --> 00:30:56,159
I mean, the only other question I have,
and we we've talked about this before,

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00:30:53,679 --> 00:31:02,799
is, you know, I don't think the town of
Faser could be subsidizing

330
00:30:59,520 --> 00:31:07,840
the bulk of child care in the community
or in the valley without other people,

331
00:31:06,320 --> 00:31:13,440
you know, paying their fair share. And I
don't know how you aortion that. You

332
00:31:11,039 --> 00:31:19,520
know, Winter Park's kicking in $40,000,
right? Graanby eight, Grand Lake six,

333
00:31:17,120 --> 00:31:24,399
but I don't know. You know, we're
providing space for $1,000 a year, which

334
00:31:21,760 --> 00:31:29,200
is a real that's a lot. I mean, that's
almost probably 40,000 there, and we're

335
00:31:26,880 --> 00:31:35,679
kicking in another 30,000. are we
subsidizing child care for the rest of

336
00:31:32,240 --> 00:31:40,240
the valley? You know, and I don't know
how you

337
00:31:37,760 --> 00:31:45,279
discern that, but that that would be the
only other thing I would want us to

338
00:31:42,559 --> 00:31:50,240
think through is like should we be
charging these other, you know,

339
00:31:46,880 --> 00:31:56,080
municipalities or the county or um
subsidizing child care?

340
00:31:54,080 --> 00:32:02,000
» So, um I'm going to let Megan jump up
because I see her jumping up. Um, I was

341
00:31:58,240 --> 00:32:06,880
going to add uh this childc care
stipened program um that Winter Park has

342
00:32:04,880 --> 00:32:10,640
worked with Megan to put together.
Winter Park and the county are putting

343
00:32:08,640 --> 00:32:14,880
in larger amounts and we are putting in
a smaller amount in part in recognition

344
00:32:12,880 --> 00:32:18,159
of the fact that we are contributing so
much through that building and that

345
00:32:16,000 --> 00:32:21,120
lease. But I think that is a fair a fair
question.

346
00:32:18,960 --> 00:32:26,799
» Absolutely. Uh Megan Liddine, a director
of the Grand Foundation, thank you for

347
00:32:22,960 --> 00:32:32,799
letting me I guess give input context.
um multiple funding areas in child care

348
00:32:30,480 --> 00:32:38,559
right now. The 1A community priorities
fund, our priority, every pun intended,

349
00:32:36,559 --> 00:32:45,120
um last year and this year is child
care. And so that is an eligible grant

350
00:32:42,159 --> 00:32:51,519
opportunity for grandkids to apply to as
well. uh the first round fall of 2025

351
00:32:48,480 --> 00:32:55,679
they received a $87,000 grant and this
last uh spring cycle they received

352
00:32:53,840 --> 00:32:58,240
$45,110
I think is what you have and that was

353
00:32:56,960 --> 00:33:02,640
for a new van because they don't have a
van over at the Graanby location. Um

354
00:33:00,480 --> 00:33:07,120
with that being said the Grand County
Childare Strategic Investment Fund

355
00:33:05,600 --> 00:33:10,320
that's a mouthful let me talk about
that. Um

356
00:33:08,640 --> 00:33:14,720
» that's going to be a for teacher
retention. So it's start actually

357
00:33:12,960 --> 00:33:19,840
starting right now. I'm just waiting
need a signature um on theou from all

358
00:33:17,279 --> 00:33:23,679
the funding partners but um just waiting
for that and then we'll be looking at

359
00:33:22,159 --> 00:33:28,240
the second quarter. So we're going to go
retroactively look at the second quarter

360
00:33:25,840 --> 00:33:34,159
of all the staff that has spent more
than 60% of their time in the classroom

361
00:33:31,039 --> 00:33:39,679
and give a grant to grandkids and other
childcare entities that are nonprofits

362
00:33:36,159 --> 00:33:45,679
only. That money is going to be coming
from the county. Town of Winter uh

363
00:33:42,640 --> 00:33:51,840
County is $100,000. Town of Winter Park
is $100,000. Grand Foundation's put in

364
00:33:48,159 --> 00:33:56,799
$50,000. And um you guys voted last
month to put in $25,000. So, but with

365
00:33:54,799 --> 00:34:02,480
that being said, as you alluded to,
you're doing your your share and then

366
00:33:59,600 --> 00:34:07,039
some. So there are other opportunities
along with all the block grants that the

367
00:34:04,320 --> 00:34:12,639
towns do provide as well as grant
foundation dollars that um grandkids can

368
00:34:09,839 --> 00:34:17,280
apply to and childcare is one of those
very um myopic priorities not only with

369
00:34:15,760 --> 00:34:22,159
the grant foundation but with all the
municipalities and the county. So there

370
00:34:19,919 --> 00:34:26,399
are other dollars that will be coming in
to grandkids as an entity. And then I

371
00:34:24,720 --> 00:34:31,040
just want to add that they have done a
tremendous job with their financials.

372
00:34:28,320 --> 00:34:34,560
You guys, I've my background is finance
and I can tell you all the things

373
00:34:32,320 --> 00:34:39,599
they've done is just amazing and I
really want you to know that.

374
00:34:36,560 --> 00:34:44,079
» How girls I can see I can see this. This
is much better than what we saw before.

375
00:34:42,159 --> 00:34:49,359
But
you were all very supportive of child

376
00:34:45,839 --> 00:34:55,119
care. At least I am. Um it's it's a
central priority for us. But again, I

377
00:34:52,879 --> 00:34:59,760
don't think we want to subsidize the
county necessarily. And I don't know if

378
00:34:57,440 --> 00:35:03,920
you can break down
um you know where people live the the

379
00:35:02,079 --> 00:35:10,560
ones that you're you know that are in
child care now where they're coming from

380
00:35:07,040 --> 00:35:14,720
are the bulk of them from Frasier or
you know uh county or where I mean what

381
00:35:13,440 --> 00:35:18,720
are we
>> you know I could not stand up here and

382
00:35:16,640 --> 00:35:22,320
give you those numbers honestly I know I
could look at Grand Beginnings and the

383
00:35:20,400 --> 00:35:26,160
data that they've put together and come
back to you with that. um they've been

384
00:35:24,560 --> 00:35:31,680
instrumental throughout all the
processes of the funding mechanisms as

385
00:35:28,240 --> 00:35:37,680
well as with um grandkids as well. Um I
do know that people travel from all over

386
00:35:33,839 --> 00:35:42,480
to bring their kids to the open slots
that the waiting lists are quite large

387
00:35:39,920 --> 00:35:47,280
and so there are kids or children,
excuse me, I'm not supposed to kids uh

388
00:35:44,880 --> 00:35:52,480
children from Grand Lake Graanby that
are attending grandkids as well. So I I

389
00:35:50,800 --> 00:35:57,760
can come back to with those numbers, but
I would say that, you know, Winter Park

390
00:35:55,520 --> 00:36:03,200
and Frasier and Tavern have a lot of
children and the EEC right now is just

391
00:36:01,040 --> 00:36:08,320
for Winter Park employees. And so
majority between the um red building, I

392
00:36:06,320 --> 00:36:13,760
guess you call it the learning center,
>> red school. And uh over at Wedi, you

393
00:36:12,079 --> 00:36:16,960
know, that's going to be holding a
majority of a lot of the kids around

394
00:36:15,599 --> 00:36:21,680
here.
Nate, it's a little bit akin to our

395
00:36:18,720 --> 00:36:26,400
discussion around the bus service.
No, and I think we feel like everybody

396
00:36:24,960 --> 00:36:31,599
should pay their fair share. We don't
want to, you know, be on the hook to

397
00:36:28,880 --> 00:36:33,680
subsidize
anyway.

398
00:36:32,480 --> 00:36:38,240
» Well, when you look at when you look at
that buildout and you look at the

399
00:36:35,200 --> 00:36:43,200
projected loss, I 198,000 I think is
what I saw. And you know, that's where

400
00:36:41,359 --> 00:36:46,880
there are other granting opportunities
that other entities can kick in, right,

401
00:36:45,359 --> 00:36:50,160
to help with the buildouts and those
type of things. Or if there's other

402
00:36:48,720 --> 00:36:53,440
opportunities there, there's additional
grant dollars that grandkids can apply

403
00:36:52,079 --> 00:36:58,240
for. So, I think monies are going to
come from other avenues for other things

404
00:36:56,000 --> 00:37:02,560
to keep sustainable.
And over time, you know, whatever the

405
00:37:00,800 --> 00:37:05,440
town decides to do, it's it's a
worthwhile investment. Not that you

406
00:37:04,160 --> 00:37:12,000
don't know this. I know you all know
this. um for your residents, for your

407
00:37:08,320 --> 00:37:15,280
employees and everything.
And I do think we need to also be

408
00:37:14,000 --> 00:37:17,760
cognizant that there's a lot of
employees that are at this end of the

409
00:37:16,800 --> 00:37:21,680
valley that would love to live in
Frasier but can't afford it, but they

410
00:37:19,680 --> 00:37:27,520
work here. They spend their money here
and so it's all part of the community.

411
00:37:25,680 --> 00:37:30,960
I'll add as well, I know Graanby
Playdates is in a building that's owned

412
00:37:29,200 --> 00:37:38,480
by the town of Frraasier and I believe
they pay a minuscule amount in rent.

413
00:37:35,760 --> 00:37:43,440
» I do believe they pay about $10 a year.
I don't know if it changed for 2026, but

414
00:37:41,200 --> 00:37:47,760
I know that was 2025's number. Nice.
>> Yeah. And that's serving a much smaller

415
00:37:45,280 --> 00:37:52,079
number of kids than St. Louis is. Um the
early childhood education center at the

416
00:37:50,000 --> 00:37:57,520
resort is obviously subsidized heavily
by the resort. Um, Eternal Hills

417
00:37:55,599 --> 00:38:00,720
preschool program is subsidized by the
church. So, most of the buildings in the

418
00:37:59,599 --> 00:38:05,839
county, and I don't think this is
uncommon, are receiving some level of

419
00:38:02,880 --> 00:38:08,079
subsidy from either the municipality or
another another entity.

420
00:38:07,040 --> 00:38:11,440
» The West Grand School District
subsidizes the space for the West Grand

421
00:38:10,000 --> 00:38:16,839
Early Childhood Center as well as
Crumbling Preschool, too. They're

422
00:38:13,040 --> 00:38:16,839
located in their schools.

423
00:38:17,680 --> 00:38:27,040
» There are free winter parking that
occupy

424
00:38:23,760 --> 00:38:31,359
that their children are in the
grandkid center space because there's no

425
00:38:30,160 --> 00:38:39,440
space.
>> They have so we also have people go the

426
00:38:34,160 --> 00:38:44,960
other way just to get that child care.
>> I'm a little less concerned about the

427
00:38:42,240 --> 00:38:48,880
residency of the child and more
concerned about the income and the

428
00:38:46,480 --> 00:38:54,320
subsidy of the parents. And it sounds
like you guys have uh turned a corner on

429
00:38:51,040 --> 00:38:58,400
that where
and correct me if I'm wrong, but it used

430
00:38:56,079 --> 00:39:02,160
to be a fully subsidized program across
the board or and now it's income based

431
00:39:01,280 --> 00:39:04,720
or
>> are you talking tuition?

432
00:39:03,440 --> 00:39:08,880
» Tuition. Yes. Yes.
>> That that speak to that. But the tuition

433
00:39:06,640 --> 00:39:13,920
assistance program is run out of grand
beginnings and then it's based on

434
00:39:11,200 --> 00:39:19,359
enrollment I believe per location and
then each entity looks at applications

435
00:39:16,960 --> 00:39:25,520
based on the spreadsheet formulas based
on that income level because some will

436
00:39:22,560 --> 00:39:31,440
apply or be eligible for UPK dollars,
universal prek dollars. Some will be

437
00:39:28,079 --> 00:39:36,640
eligible for CCAP dollar it goes up to
500 of federal poverty level 500%. Yeah.

438
00:39:35,040 --> 00:39:42,240
So
>> that's great.

439
00:39:39,599 --> 00:39:46,880
I do know that that's that's a going to
be a focus in the future for the grand

440
00:39:44,960 --> 00:39:49,119
county childcare strategic investment
fund

441
00:39:48,480 --> 00:39:52,720
topic in there
>> that that

442
00:39:50,079 --> 00:39:57,119
» we left it uh pretty ambiguous right now
we're just focusing on teacher retention

443
00:39:55,040 --> 00:40:01,440
but know that tuition assistance but
again Grand Beginnings has this program

444
00:39:59,200 --> 00:40:04,480
so we would just be helping and
supplementing

445
00:40:02,640 --> 00:40:08,720
» yeah that strategic plan I thought that
was the the one of the four that you

446
00:40:06,800 --> 00:40:12,240
guys were going to leave to the side,
but it sounded like you were almost

447
00:40:10,320 --> 00:40:14,320
implementing some things already.
>> So,

448
00:40:12,800 --> 00:40:18,320
» it it's going to be a need and as you
add child care spots, tuition assistance

449
00:40:16,977 --> 00:40:22,560
[clears throat] is only going to go up.
So, that's again uh community priorities

450
00:40:20,800 --> 00:40:31,280
fund and the other funding mechanisms
will definitely be up.

451
00:40:26,240 --> 00:40:37,119
I also see a benefit of um having that
daycare in our buildings and our our

452
00:40:34,000 --> 00:40:40,880
workforce housing and helping us fill
those units

453
00:40:39,520 --> 00:40:45,200
because there'll be people that probably
would love to live there where they can

454
00:40:42,640 --> 00:40:53,599
just walk their kids downstairs and then
catch the bus to work or walk to work.

455
00:40:50,800 --> 00:40:58,920
And that's a big benefit. We got to fill
it up. can start paying for it now.

456
00:40:59,520 --> 00:41:05,680
» That will help us attract employees as
well.

457
00:41:02,319 --> 00:41:06,720
» Yeah, absolutely.
>> Hey, if

458
00:41:06,400 --> 00:41:12,480
» okay,
>> if Fraser ends up paying a little bit

459
00:41:09,119 --> 00:41:15,359
more for the first few years, so be it.
You know, it's kind of like when you go

460
00:41:13,760 --> 00:41:19,119
to an auction and they just do the
paddle raise. You know, we're the ones

461
00:41:17,440 --> 00:41:25,079
that said we'll drop a million bucks.
Who else is going to join us? Maybe

462
00:41:21,440 --> 00:41:25,079
somebody else will follow.

463
00:41:27,040 --> 00:41:33,000
Sarah, what did the 60-day notice before
termination

464
00:41:33,359 --> 00:41:39,920
play?
>> I mean, it just seems like not a long

465
00:41:36,079 --> 00:41:42,920
time frame for us to find a new tenant.
>> Yeah.

466
00:41:44,748 --> 00:41:46,768
[laughter]

467
00:41:46,880 --> 00:41:53,200
» Um,
so I I worked with Kent's office to put

468
00:41:50,400 --> 00:41:58,960
this lease together. Um, that said, I
think the 60 days was really added in

469
00:41:55,760 --> 00:42:05,040
more as an out for the town, wanting the
board to feel more comfortable signing

470
00:42:00,800 --> 00:42:09,680
on to a longer lease that
uh, you know, if for whatever reason the

471
00:42:07,520 --> 00:42:13,040
leadership at Grandid was to change, we
didn't feel like they were offering

472
00:42:10,880 --> 00:42:16,960
quality child care, whatever it may be,
that there would be some options. Um,

473
00:42:15,359 --> 00:42:20,960
but I agree it's not very long. I think
we could definitely change that and

474
00:42:18,720 --> 00:42:24,160
provide more notice to be required.
>> Get a tenant in there in 60 days.

475
00:42:23,119 --> 00:42:27,920
» Right. And for
>> it's a bit empty for

476
00:42:26,000 --> 00:42:29,839
» I mean that's a big space. What? 8,000
square feet.

477
00:42:29,359 --> 00:42:33,599
» Yeah.
>> And there's already a ton of

478
00:42:32,000 --> 00:42:34,960
» commercial real estate that's sitting
empty.

479
00:42:34,319 --> 00:42:38,400
» Yep.
>> Well, so keep in mind it's a $1,000

480
00:42:36,960 --> 00:42:43,920
lease. I don't know if they're paying
monthly for that $1,000 or not, but it

481
00:42:41,599 --> 00:42:48,240
doesn't really matter. It I I agree with
Sarah. The 60 days is more for us. If

482
00:42:46,400 --> 00:42:52,800
something drastic occurred with
grandkids and we just said we we can't

483
00:42:50,400 --> 00:42:56,960
be part of this anymore, then we give
them 60 days to move out

484
00:42:54,560 --> 00:42:59,680
» and we find another child care provider
to move in.

485
00:42:57,839 --> 00:43:03,839
» Yeah. Well, you guys that would that's
crazy though. Let's say 6 months

486
00:43:02,480 --> 00:43:07,680
» on 60 days
>> and do 180 days

487
00:43:05,599 --> 00:43:13,280
» something. Yeah. I mean, and I doubt
that we'll even use it, but to make it

488
00:43:10,800 --> 00:43:18,480
even the least bit realistic, 60 days is
not realistic. If we did say you're out

489
00:43:16,480 --> 00:43:21,119
of there, it's like, oh, yeah, right.
Okay.

490
00:43:19,599 --> 00:43:24,160
» Well, you'll probably we'll leave them
and leave it as is. So,

491
00:43:22,240 --> 00:43:28,319
» well, if they default and they go
through three defaults and they don't

492
00:43:25,920 --> 00:43:30,319
pay their rent, which would be hard for
them not to do, but

493
00:43:29,839 --> 00:43:34,160
» yeah,
>> there's a provision in there where we

494
00:43:32,400 --> 00:43:37,599
would give them 30 days at that point
where they didn't pay. And so, everybody

495
00:43:36,720 --> 00:43:40,400
out.
>> As quickly,

496
00:43:38,640 --> 00:43:43,119
» can you bring mic a little closer for
me?

497
00:43:41,040 --> 00:43:48,000
» You don't know this.
>> There's a provision there how that all

498
00:43:45,040 --> 00:43:52,800
works out. If we wanted to get them out,
it's like a 30-day, you know, after some

499
00:43:50,800 --> 00:43:57,200
steps, there's a 30-day out. So,
>> okay. So, that's

500
00:43:53,920 --> 00:44:00,400
» But I do agree. I think I think 180 days
makes more sense from a lease

501
00:43:59,040 --> 00:44:03,839
perspective. Okay. Yeah.
>> I mean, if we kick them out in 30 days,

502
00:44:02,640 --> 00:44:06,240
where are they going to go? I mean,
they're not going to be able to find a

503
00:44:05,040 --> 00:44:10,240
spot.
for their operations. I think I think

504
00:44:08,560 --> 00:44:13,440
six months sounds all reasonable.
>> Okay.

505
00:44:12,560 --> 00:44:17,760
» I mean, I don't think we're going to
want to kick them out, but you know,

506
00:44:15,680 --> 00:44:22,800
» say 180 days.
>> Okay. Can I make a motion?

507
00:44:19,680 --> 00:44:30,240
» Sure. I want to make a motion to approve
resolution 20206082

508
00:44:25,839 --> 00:44:37,680
approving Grand Kids Grand Kids Learning
Center lease with the change of um

509
00:44:34,480 --> 00:44:41,240
notice for termination to be 180 days
from 60 days.

510
00:44:42,480 --> 00:44:47,520
» I'll second.
>> Further discussion? All in favor? Hi.

511
00:44:47,200 --> 00:44:49,920
» Hi.
>> All right.

512
00:44:48,400 --> 00:44:53,040
» Opposed.
All right. Motion passes.

513
00:44:51,280 --> 00:44:57,680
» Okay. Congrats.
>> Point that I wanted to make. It really

514
00:44:54,560 --> 00:45:01,680
it wasn't financial, but uh we as a
group

515
00:44:59,359 --> 00:45:06,319
several months ago talked about possibly
naming the playground after Eileen

516
00:45:03,520 --> 00:45:09,680
Waldo. And uh I don't know if you were
even part of that or even knew that we

517
00:45:07,760 --> 00:45:14,720
had that discussion, but it was kind of
a concept of where's Waldo, which was

518
00:45:12,240 --> 00:45:19,920
her tagline when she ran for the board.
So, I thought I'd mention that. And if

519
00:45:17,040 --> 00:45:25,119
you guys the mural festival's coming up
and you might find some cute artist that

520
00:45:22,480 --> 00:45:32,839
does where where's Walder. So,
>> Waldo's on tucked away.

521
00:45:27,599 --> 00:45:32,839
» That is that's a cute idea. All right.

522
00:45:33,040 --> 00:45:41,839
» So, I will say the next item up is
related in part to a discussion around

523
00:45:38,480 --> 00:45:45,599
grandkids buildout and some funding uh
around that. So we will circle back to

524
00:45:43,839 --> 00:45:50,720
that.
>> Okay. So that is St. Louis landing

525
00:45:48,400 --> 00:45:56,760
financing update and new market tax
credit overview. Matt NSB clerk.

526
00:45:58,160 --> 00:46:05,760
» Matt, I don't see you online, but
Monica, we've made you a co-host.

527
00:46:03,040 --> 00:46:09,839
» Hi everyone. Can you see me and hear me?
Okay.

528
00:46:07,920 --> 00:46:15,920
» You're a little quiet.
>> I'm a little quiet. Okay, you can up

529
00:46:13,200 --> 00:46:19,200
your volume.
>> Um,

530
00:46:17,920 --> 00:46:23,440
» and while you're working on that,
Monica, just to give a little bit of

531
00:46:20,800 --> 00:46:28,079
context. Um, so new market tax credits
have been part of the overall kind of

532
00:46:26,160 --> 00:46:33,359
financial capital stack for St. Louis
Landing for a while now. Um, we wanted

533
00:46:30,560 --> 00:46:37,119
to close on the bonds before,
uh, diving full on into the complexities

534
00:46:35,359 --> 00:46:40,400
of both the new market tax credits and
the middle- inome housing tax credits

535
00:46:38,880 --> 00:46:44,880
that we talked about at the last board
meeting. Um, there also is kind of less

536
00:46:42,720 --> 00:46:50,079
risk to investors as they come in kind
of later. Um, but I don't think we've

537
00:46:48,319 --> 00:46:55,200
actually really given an overview of
what the new market tax credits are to

538
00:46:52,079 --> 00:47:00,000
the board and how they work. Um, I find
them mind-bogglingly

539
00:46:57,920 --> 00:47:04,240
complex and convoluted. So, we're going
to try not to get into too much of the

540
00:47:01,839 --> 00:47:09,119
weeds, but though maybe that's just me.
Um, but Monica and her group have been

541
00:47:06,960 --> 00:47:12,640
lovely to work with. And we invited them
to kind of come and try to give an

542
00:47:10,720 --> 00:47:17,599
overview of what they look like. And
then, as I kind of referenced earlier,

543
00:47:15,119 --> 00:47:22,480
um, this money, as Monica will talk
about, is specific to building E. Um,

544
00:47:20,480 --> 00:47:27,040
and so the money has to kind of go into
building E and there is some opportunity

545
00:47:24,560 --> 00:47:32,160
to potentially use those funds towards
help with the grandkids buildout space.

546
00:47:30,079 --> 00:47:36,480
Um, so Monica can walk through that and
then I wanted Matt to kind of share uh

547
00:47:35,040 --> 00:47:39,760
again just how this fits into that
overall capital stack and what that

548
00:47:38,000 --> 00:47:43,720
looks like looks like in terms of
potential buildout dollars.

549
00:47:44,079 --> 00:47:48,079
» Okay, can you all hear me better?
>> Yes.

550
00:47:47,599 --> 00:47:52,800
» Y
>> Okay. Um, please let me know if that

551
00:47:50,160 --> 00:47:57,839
changes. Um, and thank you Sarah for
that lovely introduction. Um, I love new

552
00:47:55,599 --> 00:48:02,240
market tax credit financing and I am
thrilled to share it with you all today,

553
00:47:59,760 --> 00:48:06,720
but it is complex [laughter]
and Sarah is not wrong to to recognize

554
00:48:05,119 --> 00:48:10,800
that. I live in this world every day.
So, I'm going to screen share the

555
00:48:09,200 --> 00:48:15,440
presentation
and then I'm going to go into

556
00:48:12,560 --> 00:48:19,680
presentation mode.
Can everyone see that?

557
00:48:18,319 --> 00:48:25,599
Yes.
>> Fantastic. And you are all now very tiny

558
00:48:23,040 --> 00:48:30,400
on my screen and I really want to make
this a conversation so that you all can

559
00:48:28,319 --> 00:48:37,280
get what you need out of this
presentation. So, please do not um

560
00:48:34,640 --> 00:48:40,319
hesitate to interrupt me. Um you know, I
try to pay attention if those little

561
00:48:38,559 --> 00:48:44,800
like raise hand things go up, but I
really am not offended. if you want to

562
00:48:41,680 --> 00:48:48,880
kind of break in, I'll try to pause um
and and make this a dialogue where you

563
00:48:46,720 --> 00:48:54,880
all can get the information that you're
looking for. So, uh today, real quickly,

564
00:48:52,480 --> 00:48:59,359
my goal is to introduce the New Markets
Tax Credit Program, often abbreviated

565
00:48:57,599 --> 00:49:03,839
NMTC,
how new market tax credit financing

566
00:49:01,200 --> 00:49:08,720
works, the opportunity that it
represents for the the building E and

567
00:49:05,839 --> 00:49:13,119
St. Louising the roles of the sponsor
and the financing partners um kind of

568
00:49:11,200 --> 00:49:18,960
the key points around the structuring
and then a representative timeline.

569
00:49:15,920 --> 00:49:23,760
There is more detail in the appendex um
but again this is meant to be a highle

570
00:49:21,520 --> 00:49:27,680
uh introduction. I am more than happy to
geek out with anybody on the details of

571
00:49:25,920 --> 00:49:32,880
this financing structure. I think it is
very cool and creative public private

572
00:49:29,920 --> 00:49:37,119
partnership um at another time if if
somebody is really interested in

573
00:49:33,920 --> 00:49:42,000
learning more. Um so please um feel free
to reach out to me.

574
00:49:40,000 --> 00:49:46,640
All right. Shall we dive in? So New
Markets Tax Credit Program has been

575
00:49:43,520 --> 00:49:51,920
around since 2000. It's administered by
a part of the US Treasury's Community

576
00:49:49,119 --> 00:49:56,880
Development Financial Institution Fund.
It is now a permanent part of the tax

577
00:49:54,160 --> 00:50:01,040
code and it was created to stimulate
investment in low-income communities and

578
00:49:58,880 --> 00:50:07,119
underserved communities and does in fact
prioritize what they term non-metro

579
00:50:04,319 --> 00:50:12,319
communities such as Frasier. Um a
project it is a census trackbased uh

580
00:50:09,760 --> 00:50:17,920
program. So the subsidy is ava is
available to projects that are located

581
00:50:15,440 --> 00:50:21,920
in qualified severely distressed census
tracks. You can see here in this map and

582
00:50:19,760 --> 00:50:29,200
the purple that your project is in fact
in the purple census tract which is um

583
00:50:25,119 --> 00:50:35,520
the new market tax credit uh level of um
severely distress that um draws the

584
00:50:32,240 --> 00:50:39,359
opportunity uh for the project.
Um new markets tax credits been used by

585
00:50:37,520 --> 00:50:44,240
many organizations. I've been working in
this um SPC Clark companies what maybe I

586
00:50:42,240 --> 00:50:47,920
should have introduced uh us first. Uh
we're consultants out of Denver,

587
00:50:45,920 --> 00:50:52,480
Colorado. We work nationally in our new
markets tax credit practice. Um I've

588
00:50:50,400 --> 00:51:00,400
been uh working in the firm now for
about uh 12 no closer to 15 years. And

589
00:50:57,200 --> 00:51:03,920
um SB Clark in the name of the firm is
actually my dad, Steve Clark. He's

590
00:51:02,000 --> 00:51:09,680
mostly retired, walks the dog, hangs out
with my mom and we have the privilege of

591
00:51:07,440 --> 00:51:14,605
working with both New Markets Tax
Credits, which is supporting, you know,

592
00:51:12,000 --> 00:51:16,800
high impact commercial projects.
>> [clears throat]

593
00:51:14,640 --> 00:51:20,640
» You can also fund some housing like
we're offering suggesting doing in

594
00:51:18,559 --> 00:51:24,480
building E. And then my twin sister on
the other side of our firm um works with

595
00:51:23,040 --> 00:51:28,559
low-income housing tax credits and
middle- inome housing tax credits. And

596
00:51:26,079 --> 00:51:33,280
you might have met her, Laura Clark, um
during the middle-income housing tax

597
00:51:30,319 --> 00:51:36,880
credit conversations. So um that's our
firm. These are a number of um

598
00:51:35,359 --> 00:51:42,480
organizations I've been honored to work
with over my career here. Um and and I

599
00:51:40,880 --> 00:51:48,240
do think you can find a lot of
excitements in new market tax credits.

600
00:51:44,720 --> 00:51:53,599
My appro or suggestion is to think of it
as a public private partnership. It's

601
00:51:50,319 --> 00:52:00,640
the government's way of bringing private
investment into high impact uh community

602
00:51:57,839 --> 00:52:04,160
development activities. And in this case
um building E which includes both

603
00:52:02,480 --> 00:52:08,240
affordable housing for workforce
development as well as importantly the

604
00:52:06,240 --> 00:52:11,760
daycare. And you do have to have a
certain percentage of commercial

605
00:52:09,839 --> 00:52:16,079
activity. So the daycare portion or the
early childhood education portion is an

606
00:52:14,160 --> 00:52:20,240
essential piece.
And the idea behind the new markets tax

607
00:52:18,319 --> 00:52:24,000
credit program is when there's a market
failure such as it's hard to do

608
00:52:21,920 --> 00:52:29,440
development in uh small rural
communities or lowincome communities,

609
00:52:26,559 --> 00:52:34,160
the government offered a tax credit to
incentivize private investors. In this

610
00:52:32,319 --> 00:52:37,920
case, a group called Capital One,
Capital One Bank. you may know them from

611
00:52:35,920 --> 00:52:43,760
your credit card. Um, who is going to
bring cash or um would bring cash to the

612
00:52:41,680 --> 00:52:47,760
St. Louis landing project and the
project doesn't have to pay them back

613
00:52:45,839 --> 00:52:54,000
because Capital One is going to collect
their return in the form of a tax credit

614
00:52:50,800 --> 00:52:59,359
on their income taxes over a 7-year
compliance period. So the private equity

615
00:52:57,040 --> 00:53:05,760
comes in and they're paid back through
the government subsidy of a tax credit

616
00:53:01,359 --> 00:53:13,760
and you all benefit from that tax credit
equity. So the opportunity for building

617
00:53:09,599 --> 00:53:17,839
E is to leverage the costs of the new
market tax credit uh financing. So new

618
00:53:16,400 --> 00:53:21,839
market tax credits I think of it as a
funnel. kind of leverage the costs

619
00:53:19,839 --> 00:53:26,000
through the public private partnership
and that creates, if you will, the

620
00:53:23,760 --> 00:53:30,880
matching grant that is the subsidy of
the new market tax credit and we call it

621
00:53:28,240 --> 00:53:35,680
the net benefit because it is the net of
all the fees and costs associated with

622
00:53:33,280 --> 00:53:40,240
that public private partnership. The net
benefit that's built into the project

623
00:53:38,319 --> 00:53:45,520
that you don't have to pay back because
the tax credit pays the investor back is

624
00:53:43,119 --> 00:53:50,640
approximately $3 million. And that's an
approximate number because until we get

625
00:53:47,599 --> 00:53:56,720
to closing, there's fees and legal fees
and other things that move slightly. But

626
00:53:53,359 --> 00:54:02,079
um at this point um based on the being
able to have attracted the subsidy from

627
00:54:00,160 --> 00:54:07,359
two groups, Colorado Growth and
Revitalization Fund, which is a part of

628
00:54:04,880 --> 00:54:12,559
Chaffa, which is Colorado Housing and
Finance Authority. Um so their uh new

629
00:54:10,720 --> 00:54:15,680
markets tax credit entity is a group
called Colorado Growth and

630
00:54:13,680 --> 00:54:20,559
Revitalization Fund and they've promised
to bring a portion of subsidy. And then

631
00:54:18,800 --> 00:54:26,800
another group which is enterprise
community development. They go by ESSIC

632
00:54:23,599 --> 00:54:31,680
or ESIC which stands for um enterprise
social impact um corporation but

633
00:54:30,160 --> 00:54:36,160
enterprise you may have heard of them.
They're also um very active in the

634
00:54:33,280 --> 00:54:40,559
affordable housing space. So, two groups
that are um groups that have been in new

635
00:54:38,880 --> 00:54:44,240
markets tax credit financing for a long
time and they're bringing the right to

636
00:54:42,079 --> 00:54:48,720
the subsidy. So, we call that new market
tax credit allocation. That's the

637
00:54:46,079 --> 00:54:54,559
authority from the US government that
these groups won and they've decided to

638
00:54:52,319 --> 00:55:00,400
bring that portion of the subsidy to
this project. So, you have an

639
00:54:56,400 --> 00:55:05,480
opportunity to leverage the building e
costs and generate this net benefit.

640
00:55:06,319 --> 00:55:12,400
It's important I think to call out that
um it's a complicated financing

641
00:55:10,319 --> 00:55:18,079
structure because of the public private
partnership and because there's already

642
00:55:15,040 --> 00:55:22,960
a lot of um subsidy and support. You all
were just talking about the support that

643
00:55:20,160 --> 00:55:28,000
you're bringing um to the uh early
childhood education center. Uh we have

644
00:55:25,920 --> 00:55:31,680
worked very closely um we've tried to
work with Sarah and the legal teams that

645
00:55:29,760 --> 00:55:35,920
are involved and of course Matt as
developer to really think through how do

646
00:55:34,079 --> 00:55:40,960
we structure this in a way so that all
subsidies play well in the sandbox

647
00:55:38,160 --> 00:55:47,200
together. And one of the ways that does
that cleanly is that although building E

648
00:55:44,720 --> 00:55:53,359
would be financed with the new market's
tax credit financing, um there would be

649
00:55:50,240 --> 00:55:56,799
two condo units, if you will, that make
up that. And and it's easy to have that

650
00:55:55,200 --> 00:56:00,960
be confusing because there's all these
units of housing. We're not talking

651
00:55:58,400 --> 00:56:06,480
about the individual housing units.
We're talking about a residential

652
00:56:03,839 --> 00:56:10,720
condo. So this the three floors of the
building that are residential focused

653
00:56:08,160 --> 00:56:15,280
and a commercial condo, the ground floor
that's going to have the early childhood

654
00:56:13,040 --> 00:56:19,200
education component. And those will
really be operated and you'll kind of

655
00:56:16,960 --> 00:56:25,200
look through the layer of leases that
make the public private partnership work

656
00:56:22,400 --> 00:56:28,720
by um having Frasier Housing Authority
of course operate the residential

657
00:56:27,200 --> 00:56:32,079
portion of the project. That's what
they're good at. That's what they've

658
00:56:30,480 --> 00:56:35,920
been established to help do at St.
Louis. And then of course the town of

659
00:56:34,319 --> 00:56:39,440
Frraasier and your grants that you've
gotten from Dola and to try to make the

660
00:56:38,000 --> 00:56:44,559
early childhood education an
opportunity. That piece of it really

661
00:56:41,599 --> 00:56:49,839
kind of looks through to you. So any
questions there on on just the this

662
00:56:47,440 --> 00:56:52,839
concept of two parts of one full
building.

663
00:56:54,480 --> 00:57:01,839
Okay. So, so now we're going to smush
that that concept [clears throat]

664
00:56:59,280 --> 00:57:07,280
together into the layers of the
financing partners that make the public

665
00:57:04,319 --> 00:57:11,760
private partnership work. And as I
mentioned, we have to leverage the costs

666
00:57:09,359 --> 00:57:16,720
of new market tax credit um financing,
the costs of building E through the

667
00:57:13,839 --> 00:57:21,520
structure to generate the benefit. So,
there's key financing ro partner roles.

668
00:57:19,599 --> 00:57:26,319
So, one I've already talked about, it's
the investor, the new markets tax credit

669
00:57:24,079 --> 00:57:31,520
investor. The new markets tax credit
investor in this case is Capital One.

670
00:57:28,480 --> 00:57:36,559
They're going to bring cash to closing
and then they will collect their return

671
00:57:33,680 --> 00:57:40,480
from the US Treasury in the form of a
tax credit.

672
00:57:38,480 --> 00:57:45,520
The right to the tax credit, the
authority that was parsed out in a

673
00:57:42,640 --> 00:57:50,960
competitive competition is coming from
the community development entities.

674
00:57:48,559 --> 00:57:55,760
another technical term in the program.
And in this case, as we've talked about,

675
00:57:53,280 --> 00:58:02,000
the community development entities that
are bringing the right to the tax credit

676
00:57:57,839 --> 00:58:06,000
that Capital One will get to um get, you
know, in essence buy by bringing their

677
00:58:03,920 --> 00:58:11,119
cash in exchange for the tax credit. The
right to that tax credit is coming from

678
00:58:08,640 --> 00:58:17,200
Colorado Growth and Revitalization Fund
and Enterprise and together CGRF and

679
00:58:15,040 --> 00:58:22,640
Enterprise are allowing you to maximize
the tax credit benefit

680
00:58:20,400 --> 00:58:27,440
in order to make this work. New Markets
Tax Credits was originally a lowinterest

681
00:58:24,559 --> 00:58:33,599
loan program and so smart lawyers back
in 2007 um 2006 2007 figured out how to

682
00:58:31,440 --> 00:58:40,480
stack the program on top of itself and
turn it into an equity or a grant

683
00:58:35,440 --> 00:58:47,040
program. And so to make that happen, we
set up a singlepurpose real estate

684
00:58:43,200 --> 00:58:53,200
leasing entity. And that entity is
structured to be in compliance with the

685
00:58:49,920 --> 00:58:59,760
new market's tax credit program. And in
this case, that entity is known as a

686
00:58:55,440 --> 00:59:04,480
qualb, a qualified active lowincome
community business. down here on the

687
00:59:02,400 --> 00:59:09,920
bottom of the screen. It's another
technical term in the New Markets tax

688
00:59:06,640 --> 00:59:14,480
credit program for an entity eligible to
receive New Markets proceeds. This is

689
00:59:12,480 --> 00:59:19,200
going to be an entity that is going to
be a support corporation, probably a

690
00:59:17,440 --> 00:59:22,880
Frraasier Housing Authority. Um, we
might be able to make it a support

691
00:59:20,400 --> 00:59:26,480
corporation of the town. Um it's there's
some different structuring

692
00:59:23,920 --> 00:59:32,160
considerations there, but in general for
you all to think about it, it really is

693
00:59:29,680 --> 00:59:38,880
um a a 501c3
nonprofit real estate leasing company.

694
00:59:35,119 --> 00:59:44,160
And it is going to own building E for
the 7-year compliance period and lease

695
00:59:41,680 --> 00:59:48,319
it back to Frasier Housing Authority,
who is going to subleasase it to you to

696
00:59:46,240 --> 00:59:53,520
operate their early childhood education.
and you're actually going to subleasase

697
00:59:49,599 --> 00:59:57,440
that on to grandkids and then Fraser
Housing Authority is going to operate

698
00:59:55,359 --> 01:00:03,119
the the housing piece. So, there's a
layer of leases to make this work, but

699
00:59:59,760 --> 01:00:10,400
that allows two really um helpful
things. It allows the new markets tax

700
01:00:05,760 --> 01:00:14,960
credit program to um
the compliance for the new markets

701
01:00:12,559 --> 01:00:20,480
program to kind of be locked in place
over the 25-y year history of the new

702
01:00:16,960 --> 01:00:24,960
markets program. Um there is there's no
situation in which the tax credit has

703
01:00:22,880 --> 01:00:27,839
ever had a recapture event and that's
because it's really structured to

704
01:00:26,319 --> 01:00:33,680
succeed. You kind of structure the
compliance in on itself. Um and so that

705
01:00:31,280 --> 01:00:37,520
that one of the pieces to that is this
singlepurpose entity that kind of

706
01:00:35,760 --> 01:00:44,079
receives the new market's benefit and
then passes it through to the project.

707
01:00:40,480 --> 01:00:48,559
And then of course we have the project
sponsor as we would call it in new

708
01:00:45,920 --> 01:00:52,160
markets parliament and that is going to
be um Fraser Housing Authority and the

709
01:00:50,480 --> 01:00:57,200
town of Frraasier. You guys are going to
leverage the costs that you've um

710
01:00:54,960 --> 01:01:00,880
brought together for the St. Louis
project. It's going to funnel through

711
01:00:58,720 --> 01:01:05,520
the new market tax credit public private
partnership and generate um the benefit

712
01:01:03,920 --> 01:01:09,880
where you're going to operate it like we
talked about on the slide previously.

713
01:01:10,160 --> 01:01:15,040
» I have a question.
>> Yeah question. So you're talking about

714
01:01:13,359 --> 01:01:18,880
leases. So this corporation is going to
lease it to to the Frasier Housing

715
01:01:17,599 --> 01:01:22,720
Authority and they're going to lease it
to Frasier.

716
01:01:20,640 --> 01:01:26,640
So what are the is there a termination?
You said for seven years. Is there is

717
01:01:25,440 --> 01:01:30,640
there a clause where they could
terminate the lease during that 7-year

718
01:01:29,599 --> 01:01:33,280
period?
>> And who is they

719
01:01:32,559 --> 01:01:37,119
» incorporation?
>> I know, but who who creates the 501c3?

720
01:01:36,480 --> 01:01:38,640
» This one.
>> We do.

721
01:01:38,079 --> 01:01:42,880
» No.
>> So, is that the town that creates the

722
01:01:40,079 --> 01:01:46,687
501c3?
>> It it can be it can be the town or but I

723
01:01:45,520 --> 01:01:49,200
think we were thinking it would be
[clears throat] technically a support

724
01:01:47,839 --> 01:01:55,760
corporation of Frasier Housing
Authority. Um and that just um really

725
01:01:53,520 --> 01:01:59,119
helps the the flow of funds through the
public private partnership.

726
01:01:57,440 --> 01:02:02,880
» Okay.
>> Um and then as far as lease termination,

727
01:02:01,280 --> 01:02:07,040
there is flexibility. It's like any
commercial lease, but you are

728
01:02:05,040 --> 01:02:11,119
incentivized to keep those leases in
place because of the good work that's

729
01:02:09,040 --> 01:02:14,400
coming out of the project and also
because it allows the project to stay in

730
01:02:13,040 --> 01:02:17,760
compliance. It kind of keeps the
financing structure in place. So, we

731
01:02:15,920 --> 01:02:22,400
would recommend keeping those lease
agreements in place. Um, at the end of

732
01:02:20,160 --> 01:02:27,680
the seven-year compliance period through
a put call option, the investor exits

733
01:02:25,599 --> 01:02:32,079
the structure and they put the ownership
of the financing structure to Frasier

734
01:02:30,559 --> 01:02:37,119
Housing Authority. And so then Frasier
Housing Authority is holds all the

735
01:02:35,040 --> 01:02:40,000
membership rights of all the parts of
the complicated public private

736
01:02:38,640 --> 01:02:45,040
partnership. And so you can kind of
collapse the structure

737
01:02:42,880 --> 01:02:48,880
and and at that point the leases are
almost always terminated. and then any

738
01:02:47,119 --> 01:02:53,119
of your kind of subleas leases with
grandkids or anything would of course is

739
01:02:50,960 --> 01:02:57,200
kind of outside of that collapsing of
the public private partnership at the

740
01:02:54,880 --> 01:03:02,000
end of the seven-year period when the
investor is collecting their return.

741
01:03:00,160 --> 01:03:06,480
» So I mean I'm not sure you answer my
question.

742
01:03:03,680 --> 01:03:10,720
Is there a risk in this corporation or
this entity

743
01:03:08,799 --> 01:03:15,359
terminating the lease during that
seven-year period? Well, they're the

744
01:03:13,119 --> 01:03:19,039
landlord, so they own it and you're the
tenant. Fridge Housing Authority is the

745
01:03:17,119 --> 01:03:27,200
tenant. So, I I don't know if I'm
understanding your um question.

746
01:03:22,480 --> 01:03:32,799
» It leasing it to us, right?
>> Yes. The concern, Monica, is could the

747
01:03:29,839 --> 01:03:35,920
town lose the building?
>> Well, lose the lease and I guess

748
01:03:35,440 --> 01:03:41,119
eventually
>> if there's this other entity that's

749
01:03:37,520 --> 01:03:48,880
being entered in with ownership.
So the the entity with the ownership um

750
01:03:44,319 --> 01:03:53,440
is so um
okay [snorts] so so there's a layer of

751
01:03:50,880 --> 01:03:59,039
leases and um so the what we would call
the fee interest in the residential

752
01:03:56,400 --> 01:04:06,799
condo so the the the ownership of the
residential condo resides at Frasier

753
01:04:01,200 --> 01:04:11,599
Housing Authority and the um
fee interest or ownership of the

754
01:04:09,280 --> 01:04:16,960
commercial condo or the early childhood
education condo resides at Town of

755
01:04:13,760 --> 01:04:23,599
Frasier and then you all similar to a
ground lease are leasing those units to

756
01:04:20,480 --> 01:04:27,680
this specialurpose entity. So, um, and
they are, this special purpose entity,

757
01:04:26,079 --> 01:04:33,520
the qualified active low-income
community business is a support

758
01:04:30,319 --> 01:04:38,319
corporation nonprofit whose sole mission
is to support Frasier Housing Authority.

759
01:04:35,760 --> 01:04:43,039
And you all get to with with the Fraser
Housing Authority get to determine the

760
01:04:40,400 --> 01:04:47,359
board members. So for tax purposes, it
needs to be different

761
01:04:45,280 --> 01:04:53,920
than from the board of Frraasier housing
authority by having at least a majority

762
01:04:50,400 --> 01:04:57,839
of board members be independent and but
they can be friendly. So, I don't know

763
01:04:56,319 --> 01:05:03,359
enough about the structure of the
Frasier Housing Authority Board and the

764
01:05:00,720 --> 01:05:07,760
Town of Frasier board, but for example,
if there was a town of Frraasier board

765
01:05:05,760 --> 01:05:12,799
member who is not on the Frasier Housing
Authority board, that person could be

766
01:05:10,559 --> 01:05:18,559
one of the independent board members.
And typically, the qualified active

767
01:05:15,359 --> 01:05:23,119
low-income community businesses have
threeperson board members. So you would

768
01:05:20,400 --> 01:05:26,319
have one that's uh that kind of overlaps
with Frasier Housing Authority and then

769
01:05:24,720 --> 01:05:30,400
you would have two independents. So
meaning not currently employed by or not

770
01:05:28,799 --> 01:05:36,240
currently on the board of Frasier
Housing Authority and that generates the

771
01:05:33,280 --> 01:05:41,599
fed the the separation for federal tax
purposes but it's a friendly board that

772
01:05:38,799 --> 01:05:45,440
you all have elected who is on that
board and their full mission is to

773
01:05:43,920 --> 01:05:49,839
support Fraser Housing Authority. So
they're wholly aligned. It is merely a

774
01:05:48,319 --> 01:05:55,599
pass through entity that makes the
financing work and it is leasing the fee

775
01:05:53,760 --> 01:05:59,839
interest from the two condos and then
it's leasing it right back to Frasier

776
01:05:57,760 --> 01:06:05,760
Housing Authority to operate the housing
and right back to Town of Frasier to to

777
01:06:03,039 --> 01:06:09,760
lease it to grandkids. So it is true
that we're kind of sandwiching it in a

778
01:06:07,760 --> 01:06:15,200
layer of leases, but I think it's a very
low risk that those leases would be

779
01:06:12,400 --> 01:06:20,240
ended because they're wholly mission
aligned and only in place is a pass

780
01:06:18,079 --> 01:06:26,880
through to make the subsidy an
opportunity. Is that help?

781
01:06:22,880 --> 01:06:31,680
» It it helps. I do have a question. Um
we are the Frasier Housing Authority,

782
01:06:28,880 --> 01:06:38,079
the Frasier Town Board. So what you're
suggesting is we would have actually

783
01:06:33,520 --> 01:06:41,760
three appointees and no board members
on that panel or that committee.

784
01:06:40,160 --> 01:06:44,319
» Well, you could have one overlap
typically one over.

785
01:06:42,799 --> 01:06:49,119
» So there's a couple ways to structure it
and and the the um New Markets Tax

786
01:06:46,640 --> 01:06:53,839
Credit Council um who's working with you
um we've worked with him for for years

787
01:06:50,960 --> 01:06:58,480
and he um he could help describe the
options to help you all get comfortable.

788
01:06:56,160 --> 01:07:03,680
One option would be a threeperson board
where one person could be one of you all

789
01:07:01,200 --> 01:07:10,000
sitting here and then two would be
independent but identified by you. The

790
01:07:06,880 --> 01:07:17,119
other is to do a fiveperson board and in
that case three could be

791
01:07:13,599 --> 01:07:22,960
» um you one of you all and two would have
to be independent. But then you have to

792
01:07:19,680 --> 01:07:29,359
write into that structure a requirement
that the two independent are always

793
01:07:25,359 --> 01:07:34,480
present in the case that any um
uh any actions are taken that have

794
01:07:32,640 --> 01:07:37,680
meaningful impact on the financing. So
there's just some security measures to

795
01:07:36,000 --> 01:07:42,559
make sure the independent board members
in that approach are um are available

796
01:07:40,720 --> 01:07:45,599
and both both work and are commonly
used. So um we definitely want to

797
01:07:44,400 --> 01:07:50,799
structure in a way that's going to make
you all as comfortable as possible. This

798
01:07:47,920 --> 01:07:54,400
is sincerely a tool to make the new
market's tax credit financing structure

799
01:07:52,720 --> 01:07:59,680
work.
>> And there's only restrictions on place

800
01:07:56,400 --> 01:08:04,079
in place on the number of trustees that
could be on that committee. And I'm

801
01:08:02,160 --> 01:08:07,920
asking because you're on the Frasier
Valley Housing Partnership, right?

802
01:08:06,160 --> 01:08:11,960
» Um and I wanted to make sure that's not
a conf we have a new volunteer.

803
01:08:12,640 --> 01:08:22,159
» He loves his paycheck. [laughter]
Um just making sure there's no other

804
01:08:17,759 --> 01:08:25,520
conflicts is just our board.
>> Yeah. And I think we can definitely try

805
01:08:23,839 --> 01:08:30,880
to to work in the structure.
>> Fraser Valley Partnership whether or not

806
01:08:28,159 --> 01:08:32,719
» who appoints those other two members to
the board.

807
01:08:31,600 --> 01:08:37,920
» The board does.
>> Okay.

808
01:08:34,239 --> 01:08:42,960
And who owns this 501c3
corporation?

809
01:08:40,159 --> 01:08:48,080
That's his who? So, it's a it's a brand
new nonprofit corporation, but it is

810
01:08:45,920 --> 01:08:53,040
what we would call a support corporation
in that its whole mission is to support

811
01:08:50,960 --> 01:08:57,520
the activities of Frasier Housing
Authority.

812
01:08:54,719 --> 01:09:02,319
» Who is who are I mean, who wouldn't it
>> like does the does the town have to set

813
01:08:59,279 --> 01:09:08,319
up that 501c3?
>> Yes. Yep. That that

814
01:09:04,880 --> 01:09:13,279
» establishes a 501c3. Okay. Well, it's
it's typically a non-member

815
01:09:10,719 --> 01:09:17,679
501c3 entity that is a support
corporation that is wholly controlled by

816
01:09:15,279 --> 01:09:21,359
its board that you all would select. We
just need to differentiate it from

817
01:09:19,279 --> 01:09:25,120
Frasier Housing Authority for t federal
tax purposes.

818
01:09:22,799 --> 01:09:28,400
» So that's the reason and and a quality
under the new markets tax credit code

819
01:09:26,719 --> 01:09:33,279
cannot be a government.
>> So we have to make it a 501c3.

820
01:09:31,679 --> 01:09:38,239
And so Denver Housing Authority, for
example, used this structure and they

821
01:09:35,359 --> 01:09:41,920
created a support corporation under that
that is a nonprofit in support of Denver

822
01:09:40,560 --> 01:09:45,839
Housing Authority and that's how they
did it. So that's the model we're we're

823
01:09:44,000 --> 01:09:49,440
using here. Sorry, Sarah, go ahead. Or
who who asked the question?

824
01:09:47,600 --> 01:09:53,600
» Well, and Monica, as part of this
process of of putting together the new

825
01:09:51,839 --> 01:09:59,280
market tax credits, I believe we would
work with you and the legal council to

826
01:09:55,920 --> 01:10:03,360
put this 501c3 together. Correct.
>> Absolutely. They do it all the time.

827
01:10:01,120 --> 01:10:08,159
they have um a lot of experience in that
and they're very good at either using

828
01:10:05,360 --> 01:10:12,800
form you know articles and bylaws that
you all prefer or they can bring very

829
01:10:10,800 --> 01:10:16,480
simplified ones that are used regularly
in new markets financing. So yes

830
01:10:14,719 --> 01:10:20,960
absolutely you'll get a chance to review
all of this um and pass resolutions

831
01:10:19,440 --> 01:10:25,040
before the new markets tax credit
financing could close. Those closing

832
01:10:22,800 --> 01:10:30,080
resolutions are an essential step in the
approval process to make this financing

833
01:10:27,040 --> 01:10:36,159
work. Okay. So,
>> so Monica, so this structure is

834
01:10:34,560 --> 01:10:40,320
actually
sheltering us from risk.

835
01:10:38,880 --> 01:10:44,960
» That's Yes. Set up this way.
>> Yes. Yes. And and that's one of the

836
01:10:42,480 --> 01:10:48,640
reasons most of the um nonprofits that
we work with use this structure is

837
01:10:46,960 --> 01:10:54,400
exactly for that. The singlepurpose
entity is literally structured to remain

838
01:10:51,920 --> 01:10:57,600
in compliance for the seven years and
therefore it gives you the most

839
01:10:55,679 --> 01:11:01,280
flexibility in your operations because
it's the tenant if you will the master

840
01:10:59,520 --> 01:11:06,960
tenant which is really the least back to
yourself that's the operator and so it

841
01:11:03,520 --> 01:11:10,960
it allows you to assure compliance as
well as have most flexibility in

842
01:11:09,120 --> 01:11:14,400
operations. That's I think why it's a
popular structure.

843
01:11:12,320 --> 01:11:19,760
» Yeah. Because the letter from Capital
One to Sarah does have clauses in it

844
01:11:18,159 --> 01:11:25,360
that
basically say that we are at risk

845
01:11:23,280 --> 01:11:30,800
as an entity
for a recapture or loss if it all breaks

846
01:11:29,360 --> 01:11:35,360
down.
>> That's right. And in the 25-y year

847
01:11:32,480 --> 01:11:41,360
history, I am unaware of of any new
market still that's ever had a recapture

848
01:11:37,600 --> 01:11:46,640
event because of these structures. It's
it's it's one of the most secure tax

849
01:11:44,239 --> 01:11:50,239
credit for structures. I mean, we work
with a lot of tax credits, historic tax

850
01:11:48,480 --> 01:11:54,400
credits, LITC low-inccome housing tax
credits. There's there's risks with tax

851
01:11:52,480 --> 01:11:59,760
credit programs. This one is is
extremely low risk because of this

852
01:11:57,600 --> 01:12:05,600
structure. That's exactly right.
>> So, yeah, back to my original question,

853
01:12:01,920 --> 01:12:09,760
it's not no risk. There is a slight risk
potentially something can happen, but

854
01:12:07,760 --> 01:12:12,239
it's a low risk.
>> That's right. So the things Oh, sorry.

855
01:12:11,760 --> 01:12:15,520
Go ahead.
>> I was going to say maybe it'd be helpful

856
01:12:13,440 --> 01:12:19,840
if you could talk through if we were to
be your first recapture, what would that

857
01:12:17,520 --> 01:12:24,719
look like?
>> Absolutely. Um, let me first say what

858
01:12:22,880 --> 01:12:30,800
what you would have to do to be that
example. So, one thing you'd have to do

859
01:12:26,880 --> 01:12:34,159
is is not pay the the the new market.
So, new markets tax credits funnels into

860
01:12:32,560 --> 01:12:38,880
the structure looking and feeling like
low interest loans. um there's an

861
01:12:36,800 --> 01:12:43,679
interest payment that you make kind of
at the bottom of that structure and it

862
01:12:40,960 --> 01:12:48,800
actually comes back to you as interest
income on the top. It's kind of going in

863
01:12:45,360 --> 01:12:52,800
a circle. Um and that so one of the
things you could do is not pay your

864
01:12:50,800 --> 01:12:56,800
lease and therefore not paid the
interest. But you were not incentivized

865
01:12:55,040 --> 01:13:01,440
to make that mistake because that money
comes back to you. So that um that is

866
01:12:59,600 --> 01:13:05,840
one of the few things. The other thing
you could do is you could become one of

867
01:13:03,040 --> 01:13:09,120
the non-qualified businesses. And
there's kind of a list of what we call

868
01:13:07,120 --> 01:13:13,600
the quote unquote sin businesses, a
massage parlor, you can't become uh you

869
01:13:11,360 --> 01:13:18,960
can't um sell alcohol for off- premise
consumption. Um a golf course. Um

870
01:13:17,199 --> 01:13:24,960
there's a few, you know, and I can get
you that list. Um and so those are

871
01:13:22,400 --> 01:13:29,920
really the things that could trigger new
market tax credit recapture. So um if

872
01:13:27,520 --> 01:13:36,880
you were to there are there's a services
test but that's when in this structure

873
01:13:33,040 --> 01:13:40,400
that is they use instead the the
property as long as the property is

874
01:13:38,640 --> 01:13:44,640
owned by this entity or in this case
long-term leased and leased back to you

875
01:13:42,960 --> 01:13:48,960
um then you don't need that services
test. So those are the things you could

876
01:13:46,239 --> 01:13:55,360
do to trigger recapture. Let's say for
some unforeseen reason in seven years we

877
01:13:51,600 --> 01:14:01,440
accidentally trigger recapture um by um
bringing one of the sin businesses in as

878
01:13:57,120 --> 01:14:07,120
a tenant. Um in that case the US
Treasury would force Capital One to to

879
01:14:04,719 --> 01:14:11,199
pay the taxes that it had received the
credit for and then Capital One is going

880
01:14:09,360 --> 01:14:16,080
to turn around and ask you to pay them
back. So the that subsidy that they're

881
01:14:14,320 --> 01:14:21,600
bringing to your project, you would have
to pay back. And then all the treasury

882
01:14:18,800 --> 01:14:27,679
costs and all the legal fees and and any
of the, you know, tax filing costs that

883
01:14:24,960 --> 01:14:31,920
are associated with the years of that
tax credit that then are now out of

884
01:14:29,679 --> 01:14:35,520
compliance would have to be repaid. So
that's the that's the meltdown scenario.

885
01:14:34,080 --> 01:14:40,800
Again, no history of that in the new
markets program to date, but that is

886
01:14:38,000 --> 01:14:44,719
what would happen is is that Capital One
would have to pay the tax credit back to

887
01:14:42,480 --> 01:14:49,120
the US government and they would turn to
you to make them whole.

888
01:14:47,520 --> 01:14:53,280
» But if we keep the daycare in there for
seven years, it's a non-issue.

889
01:14:51,280 --> 01:14:59,920
» Exactly. Well, [laughter] and that is
also why we have the random list of sin

890
01:14:56,080 --> 01:15:03,679
businesses prohibited in grandkids lease
that was specifically put [laughter] in

891
01:15:01,520 --> 01:15:07,440
there for the request of the new market
tax credit.

892
01:15:05,440 --> 01:15:10,400
» We didn't otherwise expect them to start
tattooing people tomorrow in their

893
01:15:09,440 --> 01:15:14,366
classrooms.
>> All the kids get numbered. [laughter]

894
01:15:15,520 --> 01:15:22,719
» Monica, one question, and I apologize.
It's been a while since you went through

895
01:15:19,760 --> 01:15:26,480
that other fancy chart with me. But do I
remember correctly, did we land on that

896
01:15:24,880 --> 01:15:30,560
the town of Frraasier was going to be
leasing to the Qualic B as one of those

897
01:15:29,040 --> 01:15:35,040
layers of leases so that the town of
Frraasier retained ownership per our

898
01:15:33,280 --> 01:15:39,040
grant requirements.
>> That's correct. For the for the ECE

899
01:15:37,360 --> 01:15:43,600
condo, the ground floor condo. That's
correct. And then Frasier Housing

900
01:15:40,320 --> 01:15:47,440
Authority similarly retains ownership of
the housing portion and then leases it

901
01:15:45,600 --> 01:15:51,239
into the structure and then it's leased
back to you. That's correct.

902
01:15:52,880 --> 01:15:58,320
So, just a few more points here and I
want to make sure um we can all keep

903
01:15:56,239 --> 01:16:02,480
moving forward. Again, I am I love this
stuff. So, if anybody wants to set up

904
01:16:00,320 --> 01:16:05,520
another meeting, please um do not
hesitate to reach out to me. I'm more

905
01:16:03,760 --> 01:16:09,920
than happy to dig into it. Some key
points we want you all to be aware of.

906
01:16:07,679 --> 01:16:14,320
Um in this structure to leverage
building e costs through the structure

907
01:16:12,320 --> 01:16:18,560
into the public private partnership,
your money enters in the form of a loan.

908
01:16:16,640 --> 01:16:23,920
That's so that Capital One can own the
right to the tax credit. Um, and it

909
01:16:21,280 --> 01:16:28,880
allows that kind of interest payment to
go in a circle and come back to you. So,

910
01:16:26,480 --> 01:16:33,760
um, we call that the leverage loan. And
so, that's that is going to fund the new

911
01:16:31,280 --> 01:16:36,800
market's financing, um, and generate the
tax credit opportunity. So, you're going

912
01:16:35,280 --> 01:16:39,760
to bring about twothirds of the money to
the table and Capital One's going to

913
01:16:38,320 --> 01:16:43,520
bring about a third and it's going to
funnel through and it's going to build

914
01:16:41,120 --> 01:16:51,199
the project. And that's the purpose for
the tax credit opportunity.

915
01:16:46,239 --> 01:16:55,440
That leverage loan is going to be um
made through really the costs you've

916
01:16:53,840 --> 01:16:58,960
already spent that have helped build
building E. So um Sarah to your point,

917
01:16:57,600 --> 01:17:05,280
some of the grants that you've already
received and then um Proposition 123 or

918
01:17:02,880 --> 01:17:07,920
123 equity is kind of rounding out the
capital stack. So we're going to

919
01:17:06,400 --> 01:17:14,320
leverage those costs through the
structure. Um, and then the New Markets

920
01:17:10,960 --> 01:17:18,239
benefit uh comes in all upfront all on
the day of closing. So, some tax credit

921
01:17:16,080 --> 01:17:23,120
programs pay in at milestones of
construction. New Markets tax credits

922
01:17:20,320 --> 01:17:27,120
does not. It pays in all upfront all on
the day of closing comes in as cash

923
01:17:25,280 --> 01:17:32,640
flows through the the public private
partnership and that cash comes into a

924
01:17:30,800 --> 01:17:37,440
dispersement account that you use to
complete the building. So, New Markets

925
01:17:35,199 --> 01:17:42,159
is going to look and feel like
lowinterest loans for the seven-year

926
01:17:40,560 --> 01:17:46,800
compliance period, but it is net
neutral. You pay that interest, it comes

927
01:17:43,760 --> 01:17:50,560
back to you at the top. And at the end
of the seven-year compliance period,

928
01:17:48,640 --> 01:17:54,239
we're going to put the ownership of that
structure and collapse it in the form of

929
01:17:52,480 --> 01:17:58,400
debt forgiveness. So, we sometimes refer
to those as kind of the fake debt, if

930
01:17:55,920 --> 01:18:02,320
you will, in the new market structure.
And I know I'm zooming over a lot of

931
01:18:00,640 --> 01:18:06,000
ideas that are very complex there.
Monica, can I can I interject for one

932
01:18:04,239 --> 01:18:09,040
second? Hi. Hi,
>> board. Matt Ginsburg, Mountain

933
01:18:07,360 --> 01:18:13,920
Affordable Housing Development. That
that's no new capital required by the

934
01:18:12,080 --> 01:18:19,679
town. All that money is already in the
structure. We're just repurposing it as

935
01:18:17,760 --> 01:18:23,280
a leveraged loan.
>> Thank you, Matt.

936
01:18:21,040 --> 01:18:29,559
» Yep, very good point.
>> Starting to learn after three years what

937
01:18:24,960 --> 01:18:29,559
might what might concern you. [laughter]

938
01:18:30,320 --> 01:18:36,239
Um, that's exactly correct. So, the the
benefit will create a savings. It's

939
01:18:34,480 --> 01:18:40,800
really it's really creating a savings in
the building of building E. And then at

940
01:18:38,960 --> 01:18:45,679
the end of the construction period for
St. Louis, it's really a savings of of

941
01:18:44,000 --> 01:18:49,920
bond proceeds that are not going to be
used and that allows more money to come

942
01:18:48,239 --> 01:18:54,000
back to the town on their subordinate
loan. So, there's this always this

943
01:18:52,239 --> 01:18:58,239
complicated question of when is the net
benefit achieved. It is achieved upfront

944
01:18:56,000 --> 01:19:02,880
at closing. It is going to get invested
into the building of building E. New

945
01:19:00,320 --> 01:19:07,120
Markets wants to feel like it's coming
into the project that's having community

946
01:19:05,040 --> 01:19:11,600
impact and then that's going to create a
savings to you all at that will really

947
01:19:09,600 --> 01:19:15,840
be understood at the time that the full
project is complete and there is a

948
01:19:13,760 --> 01:19:20,199
savings on the on the bond proceeds that
are not drawn for building E.

949
01:19:21,600 --> 01:19:28,159
Okay. Again, lots here. Happy to dig in
more. This is a highlevel representative

950
01:19:26,640 --> 01:19:32,080
timeline. I know there's some different
discussions in here. Our goal is to um

951
01:19:30,480 --> 01:19:36,880
try to take advantage of the new markets
financing as soon as possible. Uh it is

952
01:19:34,480 --> 01:19:41,120
a very competitive subsidy. So to have
enterprise and Colorado growth and re

953
01:19:38,800 --> 01:19:46,159
revitalization fund bringing the subsidy
to you is a great opportunity. Um

954
01:19:44,000 --> 01:19:50,800
ideally we would stay on track to
leverage this financing opportunity here

955
01:19:48,560 --> 01:19:55,920
yet this calendar year. And the reason
for that is some of the costs that we're

956
01:19:53,199 --> 01:20:01,840
leveraging to maximize the new markets
tax credit benefit are costs that of

957
01:19:59,120 --> 01:20:06,159
course have been in process and spent in
the building that's in process at

958
01:20:03,760 --> 01:20:10,320
building E. And so um New Markets allows
you to to leverage costs as long as

959
01:20:08,080 --> 01:20:14,080
there's they're within 24 months of look
back from the day of closing. So we want

960
01:20:12,400 --> 01:20:19,199
to we do want to close this calendar
year in order to have enough costs that

961
01:20:17,199 --> 01:20:25,920
are in compliance to be able to leverage
the opportunity. So um here of course

962
01:20:22,400 --> 01:20:32,239
and soon um we as it sounds like we're
attached to your board documents there

963
01:20:27,760 --> 01:20:37,920
are some term sheets and um investor the
investor LOI from Capital One. There's

964
01:20:34,640 --> 01:20:42,080
also um an adjoiner for the legal
council that we talked about, a

965
01:20:39,280 --> 01:20:48,080
gentleman named Kevin Sabry at KCD Legal
who would be representing you all uh in

966
01:20:45,600 --> 01:20:50,560
the new markets tax credit financing. Um
he's excellent to work with. We've

967
01:20:49,360 --> 01:20:55,280
worked with him for a long time. So
there's an adjoiner to allow him to be

968
01:20:53,120 --> 01:21:00,560
um representing you all as a part of his
legal um role. And then as those

969
01:20:58,880 --> 01:21:05,520
financing partners and that comes
together, ideally we would kick off the

970
01:21:02,800 --> 01:21:09,600
new markets financing. Uh kickoff is
kind of a technical term for when all

971
01:21:07,120 --> 01:21:15,120
the financing parties come together and
we start to review the closing documents

972
01:21:12,320 --> 01:21:20,159
and the the due diligence that it's
usually about three months from kickoff

973
01:21:17,360 --> 01:21:26,320
to get to financial closing.
In that period, as was mentioned, um,

974
01:21:23,120 --> 01:21:30,719
KCD legal, our firm as your consultants
would work with you to help put together

975
01:21:28,719 --> 01:21:34,960
and structure the new entity that would
be created to make the financing work.

976
01:21:33,199 --> 01:21:40,960
You would identify the board members
that you want for that entity. And of

977
01:21:37,600 --> 01:21:44,960
co, of course, before we close, you all
would have to approve the closing

978
01:21:43,120 --> 01:21:49,600
resolutions that authorize that
financing. So, um the the kickoff starts

979
01:21:47,920 --> 01:21:55,199
the process, but there is formal
approval needed to to make the financing

980
01:21:52,000 --> 01:21:59,360
possible. Um and and that newly formed
board also has to pass closing

981
01:21:57,440 --> 01:22:03,440
resolutions to allow the financing to
close. We anticipate those to be

982
01:22:01,199 --> 01:22:07,120
somewhere in October with a financing in
November. Definitely trying to close

983
01:22:05,360 --> 01:22:12,239
before year end and and the sooner the
better to maximize that benefit with the

984
01:22:09,679 --> 01:22:16,800
costs.
So, um, please reach out to me with any

985
01:22:14,960 --> 01:22:21,840
questions. There is a more complicated
diagram at the end of this presentation.

986
01:22:19,440 --> 01:22:25,920
Um, if you have questions on that or if
there's more discussion needed, I'm more

987
01:22:23,440 --> 01:22:30,159
than happy to to answer questions or or
schedule another time.

988
01:22:28,880 --> 01:22:32,480
» Going to say she didn't show you the
chart that hurts my brain.

989
01:22:31,440 --> 01:22:35,280
» I can. [laughter]
>> You explain it very nicely, Monica.

990
01:22:34,639 --> 01:22:38,360
Thank you.
>> Thank you.

991
01:22:39,040 --> 01:22:44,960
» Yeah, it does.
Um there is a method to the madness but

992
01:22:43,199 --> 01:22:50,080
it is complicated. Yes.
>> Yes. So there are a number of documents

993
01:22:47,760 --> 01:22:53,280
um some of which are included here that
are going to be coming to the board. So

994
01:22:51,520 --> 01:22:58,560
if there are any questions at this time
about some of those documents if you had

995
01:22:54,960 --> 01:23:03,600
the opportunity to review them but um I
believe correct me if I misstate this uh

996
01:23:00,639 --> 01:23:08,880
we are waiting for Prop 123 for Chaffa
to kind of give the final sign off. they

997
01:23:05,920 --> 01:23:13,679
know this is coming um but they need to
approve this before before we move

998
01:23:11,120 --> 01:23:17,840
forward. Um and so at that point we will
be bringing those documents for board

999
01:23:15,360 --> 01:23:22,159
approval but wanted to not have to try
to explain everything that Monica just

1000
01:23:19,600 --> 01:23:26,320
explained um when those documents are
brought forward.

1001
01:23:24,560 --> 01:23:30,000
» We've got kind of a tight timeline.
We're waiting on chat on

1002
01:23:28,480 --> 01:23:34,320
» your mouth.
>> I think we may

1003
01:23:32,480 --> 01:23:38,159
we may be bringing things a little bit
before we have sort of final approval

1004
01:23:36,239 --> 01:23:43,520
because you know they give you a a
pretty firm view about where they are

1005
01:23:39,679 --> 01:23:49,920
at. And it also helps that that the one
and a half of the new markets funding

1006
01:23:47,280 --> 01:23:55,760
the the the CDs that bring the credit is
Chaffa also. Um, and so they should

1007
01:23:52,480 --> 01:24:01,239
probably hopefully, if they can hear us,
we'll be working behind the scenes to

1008
01:23:57,280 --> 01:24:01,239
make it move smoothly.

1009
01:24:04,080 --> 01:24:11,920
I would be interested in seeing the list
of items that would trigger recapture of

1010
01:24:09,679 --> 01:24:17,280
of the
tax credits. I mean, I'm just thinking I

1011
01:24:15,440 --> 01:24:24,239
I have no idea. You mentioned a few,
right? What if there was some

1012
01:24:21,840 --> 01:24:28,800
nefarious
issue, criminal something happened with

1013
01:24:27,440 --> 01:24:34,639
the daycare? Would that trigger a
recapture? I mean, would that

1014
01:24:32,239 --> 01:24:41,360
you know what what are the risks there
in terms of recapturing

1015
01:24:36,960 --> 01:24:44,159
those tax credits? Does that make sense?
>> Great question. Just at a high level,

1016
01:24:42,960 --> 01:24:48,400
I'm more than happy. We have some
presentations that are specific to the

1017
01:24:45,840 --> 01:24:53,679
compliance. Um the daycare is a tenant
and so their activities um really cannot

1018
01:24:51,600 --> 01:24:58,400
trigger it. It's really actions of the
qualified active low-income community

1019
01:24:56,080 --> 01:25:04,239
business entity that are going to
trigger the the the recapture situation.

1020
01:25:01,760 --> 01:25:12,159
So it is true you can lease to a
non-qualified business. Um, I suppose

1021
01:25:06,960 --> 01:25:15,760
they could, um, ignore the
businesses, the non-qualified businesses

1022
01:25:14,080 --> 01:25:20,480
that are a part of their lease, as Sarah
mentioned, that were already put in. Um,

1023
01:25:17,840 --> 01:25:25,679
but if that happens, then there's a cure
period. You would be able to replace

1024
01:25:22,800 --> 01:25:32,080
them with a with a qualified tenant and
and and so that should not trigger

1025
01:25:27,840 --> 01:25:37,360
recapture if if taken care of. Um it's
there there's a lot of cures built in to

1026
01:25:33,920 --> 01:25:40,400
make sure the solves are um worked out,
but I'd be more than happy to put

1027
01:25:38,960 --> 01:25:43,520
together kind of a summary presentation
of what triggers recapture.

1028
01:25:41,920 --> 01:25:48,560
» I think that'd be helpful. How long will
we have to get rid of a tenant? Would it

1029
01:25:45,760 --> 01:25:51,199
be 60 days or six months?
>> Well, we just had a change it to 180

1030
01:25:50,719 --> 01:25:54,000
days.
>> Yeah, we did. But

1031
01:25:52,320 --> 01:25:56,880
» we're going to keep this dayare because
they won't

1032
01:25:54,400 --> 01:26:00,639
» for a short period of time
>> or we tell them to close down whatever

1033
01:25:58,800 --> 01:26:04,880
operation they have
>> that we're it's not allowed.

1034
01:26:02,320 --> 01:26:08,880
» Yeah. Yeah. I think we're good.
>> Yeah. Typically the new markets

1035
01:26:06,320 --> 01:26:12,880
compliance period uh or the new markets
compliance certificate is executed

1036
01:26:10,880 --> 01:26:16,639
bianually. So you would do it twice a
year. So you'd have a sixmonth period

1037
01:26:15,040 --> 01:26:24,159
where you're reporting on any of the
compliance. um now how that ties to the

1038
01:26:21,360 --> 01:26:26,880
actual um
>> period that would then trigger

1039
01:26:25,600 --> 01:26:33,360
recapture. I think you probably have
longer for that. But I think that that

1040
01:26:29,440 --> 01:26:37,760
the um community development entities
who manage the compliance, they have you

1041
01:26:35,920 --> 01:26:42,080
fill out the compliance certificate on a
bianual cadence so that they have time

1042
01:26:40,000 --> 01:26:46,080
to work with you for any cures in a
period that would trigger a concern

1043
01:26:43,920 --> 01:26:49,679
which might be annually that they report
to the treasury.

1044
01:26:47,920 --> 01:26:53,320
» Okay. Thank you.
>> Yeah, good questions.

1045
01:26:53,520 --> 01:27:02,960
» Okay.
No such thing as free money. [laughter]

1046
01:26:59,040 --> 01:27:07,600
» So Matt, do you want to um pull up or I
can pull up your sources and uses and

1047
01:27:06,000 --> 01:27:12,000
just kind of show how this fits into
that overall capital

1048
01:27:09,840 --> 01:27:15,719
» sources and uses deck.
>> I can pull it up.

1049
01:27:39,360 --> 01:27:43,880
that good for everybody.

1050
01:27:43,920 --> 01:27:52,280
» Cool.
Good evening board. Matt Ginsburg,

1051
01:27:47,920 --> 01:27:52,280
nonaffordable housing development again.

1052
01:27:52,800 --> 01:28:00,080
Um, I'm going to walk through the the
the sources and uses page which we've

1053
01:27:57,760 --> 01:28:04,239
looked at for three years. Um, if you
have questions, let me know about any

1054
01:28:01,760 --> 01:28:09,040
particular line item, but I'm I'm going
to review it holistically with a focus

1055
01:28:06,480 --> 01:28:14,239
on on the effects of the new market tax
credit.

1056
01:28:10,480 --> 01:28:18,800
Uh what's on this page is the final
underwriting

1057
01:28:15,840 --> 01:28:26,560
um sources and uses that that was
approved and in the in the uh bond

1058
01:28:22,800 --> 01:28:31,120
documents and and in the um Prop 123
documents etc and their underwriting

1059
01:28:28,800 --> 01:28:37,600
materials. Um so all the final numbers
from the from the bond offering um you

1060
01:28:35,280 --> 01:28:43,199
know over time the cost of the project
of course go up because that's the only

1061
01:28:39,280 --> 01:28:51,280
direction costs really ever go um and
a portion of the 5.335

1062
01:28:47,760 --> 01:28:57,840
or 5.4 $4 million of uh bridge loan, the
first interim bridge loan that y'all put

1063
01:28:53,120 --> 01:29:04,400
in um was going to get consumed and
probably not fully paid back by the myc

1064
01:29:01,760 --> 01:29:08,800
funding. Um which is something that's
been out here for quite a while, but but

1065
01:29:07,520 --> 01:29:13,600
want to make sure that that it's clear
because it's relevant to why make the

1066
01:29:10,960 --> 01:29:18,639
effort to do the new market tax credit.
Um

1067
01:29:15,840 --> 01:29:23,120
so th this is the uh this is the final
source and uses. If you don't do

1068
01:29:20,880 --> 01:29:27,840
anything about the new market tax credit
um and we you know come in like right at

1069
01:29:25,280 --> 01:29:33,440
budget, spend the contingency,
etc. Uh then there will be about $2.9

1070
01:29:30,560 --> 01:29:40,639
million of outstanding first interim
loan obligation. Remember at closing we

1071
01:29:36,239 --> 01:29:48,239
paid back all of the um $5.3 million of
second interim loan obligation. Um, so

1072
01:29:44,239 --> 01:29:52,159
that that's that's back. Um,
but the a portion of that first interim

1073
01:29:50,639 --> 01:29:58,080
loan obligation would be outstanding at
the end. You would get that back over

1074
01:29:55,120 --> 01:30:01,320
time through the cash flows of the uh of
the project.

1075
01:30:03,280 --> 01:30:09,000
Questions?
Okay.

1076
01:30:10,320 --> 01:30:18,480
we have money left over.
>> Yeah. Here we go. So, if we add to the

1077
01:30:15,760 --> 01:30:23,040
lefth hand side $3 million,
um, which is a net amount. So, there's

1078
01:30:20,639 --> 01:30:25,920
some cost to doing the issuance. Um, and
I think we think that 3 million is a

1079
01:30:24,400 --> 01:30:29,120
fairly conservative amount. I I missed
the first couple minutes of Monica's

1080
01:30:27,600 --> 01:30:35,440
presentation, so hopefully she told you
the same thing. Um,

1081
01:30:32,080 --> 01:30:40,719
then then all of the initial $5.4 4
million will will come back assuming

1082
01:30:37,600 --> 01:30:46,320
that the budget is is observed and
performed upon. Um and you'll have an

1083
01:30:44,159 --> 01:30:51,679
excess $70,000
or just about $71,000.

1084
01:30:49,040 --> 01:30:57,199
Um
which I think might be 79. Maybe I did

1085
01:30:53,520 --> 01:31:02,000
my math wrong on there. uh the the uh
that you can use that for you sort of

1086
01:31:00,400 --> 01:31:09,679
need to use that if it's coming directly
from the the new markets tax credit to

1087
01:31:05,600 --> 01:31:14,159
um invest in the the
grandkids learning center the the which

1088
01:31:12,239 --> 01:31:18,000
isn't specifically for grandkids in this
case it's just the the childhood

1089
01:31:15,360 --> 01:31:23,600
education center uh which could be you
know internal buildout um or

1090
01:31:21,679 --> 01:31:27,360
um
playground structure things like that.

1091
01:31:25,120 --> 01:31:35,440
The various different costs to to fully
outfit the the space as uh as is

1092
01:31:32,239 --> 01:31:42,480
necessary for a particular uh childcare
operator. Um so sort of the the the

1093
01:31:40,800 --> 01:31:47,760
other end of the spectrum from not doing
it is doing it and and

1094
01:31:45,440 --> 01:31:52,000
not increasing the budget at all for the
buildout. and you you end up uh with all

1095
01:31:50,239 --> 01:31:57,040
of your first interim loan back and a
little bit extra that would be allocated

1096
01:31:54,719 --> 01:32:01,199
towards uh towards some portion of of
buildout costs. As I understand it,

1097
01:31:58,800 --> 01:32:05,040
grandkids put forth a budget to y'all of
of something like $600,000, but I don't

1098
01:32:04,000 --> 01:32:09,000
quote me on that because I haven't seen
it. I could be wrong about that.

1099
01:32:10,080 --> 01:32:18,239
question. So Matt on this sheet on uses
it doesn't mention

1100
01:32:15,440 --> 01:32:23,679
» on this particular sheet
>> um build out at all or any cost going

1101
01:32:21,760 --> 01:32:27,199
towards the grandkids.
>> Correct. I'm just showing you that that

1102
01:32:25,600 --> 01:32:29,920
you have excess I haven't done anything
to the right hand side. That's why

1103
01:32:28,320 --> 01:32:32,080
there's a third sheet.
>> Great.

1104
01:32:31,520 --> 01:32:36,159
Um,
>> yeah, I see that

1105
01:32:34,239 --> 01:32:41,520
» the buildout I mean the building e cost
is in the vertical buildout and that

1106
01:32:38,400 --> 01:32:46,480
includes a good amount of the internals.
Um, just maybe not the more highly

1107
01:32:43,679 --> 01:32:52,159
custom stuff like like some um
appliances and uh other special

1108
01:32:50,480 --> 01:32:57,679
installations that are that are
specifically for how how grandkids would

1109
01:32:54,880 --> 01:33:00,719
like it set up. It's it is pretty well
set up how grandkids would like it set

1110
01:32:59,040 --> 01:33:05,159
up. It's not 100% set up how grandkids
like it set up. So,

1111
01:33:02,159 --> 01:33:05,159
» right.

1112
01:33:06,880 --> 01:33:15,920
» Third scenario.
Um,

1113
01:33:11,600 --> 01:33:19,120
now, uh, Trusty Souls, we add $600,000,
which is, like I said, the the the

1114
01:33:17,520 --> 01:33:24,560
budget that I the high level budget
number that I heard floated, um, to the

1115
01:33:21,840 --> 01:33:29,360
right hand side. We still bring in the
$3 million on the lefth hand side. Uh,

1116
01:33:26,719 --> 01:33:35,360
you end up with, you know,
almost all of your first interim loan of

1117
01:33:31,840 --> 01:33:40,239
5.4 back, you get 4.8 almost $4.9
million back. And that again is assuming

1118
01:33:37,679 --> 01:33:46,480
that we deliver the project exactly on
budget and expend all the contingency,

1119
01:33:42,639 --> 01:33:50,239
etc. Um
th this something like this would be my

1120
01:33:48,400 --> 01:33:55,199
recommendation if I'm supposed to give a
recommendation, but um but that I think

1121
01:33:53,679 --> 01:33:59,840
it's up to the board what they want to
do. It's up to I think a conversation

1122
01:33:56,800 --> 01:34:05,360
with grandkids about how how building
out will assist with uh the goals here.

1123
01:34:03,199 --> 01:34:12,480
I think of course the the faster they
can get students into the seats, the

1124
01:34:08,960 --> 01:34:20,239
more uh adults who work in the town and
pay taxes and generate uh um sales tax

1125
01:34:16,960 --> 01:34:25,440
from sales to visitors can be there. So,
it's probably a an altruistic upward

1126
01:34:22,719 --> 01:34:30,880
spiral by making sure you can fill out
the seats there sooner.

1127
01:34:28,400 --> 01:34:33,880
» Mhm.
>> Yeah.

1128
01:34:34,000 --> 01:34:42,800
» So, the question is, grandkids, could
you fill all the seats if we did this

1129
01:34:41,040 --> 01:34:45,679
that that fast? You know, getting
teachers, everything like that,

1130
01:34:44,400 --> 01:34:50,320
» they're going to need to take a few
years. Um, someone needs to use the

1131
01:34:48,320 --> 01:34:55,239
microphone to answer your question.
>> Yeah. Could Do you think you could find

1132
01:34:52,239 --> 01:34:55,239
teachers?

1133
01:34:55,600 --> 01:34:58,400
» Do you want to pop up to the microphone?
Yeah. Thanks.

1134
01:34:58,000 --> 01:35:01,199
» Thank you.
>> No.

1135
01:35:00,239 --> 01:35:05,199
» Sorry, Katie.
>> Um, yes, I think that we could find

1136
01:35:03,360 --> 01:35:10,719
teachers. Since um our board of
directors raised our bottom line pay

1137
01:35:09,040 --> 01:35:17,600
about a month ago, we have seen a
substantial increase in applicants. And

1138
01:35:13,360 --> 01:35:23,120
I would expect that that would increase
once the stipen program is able to be

1139
01:35:19,760 --> 01:35:25,679
advertised as well.
>> Okay.

1140
01:35:23,760 --> 01:35:30,320
» And Grant's current budget for their
buildout that they provided here is a

1141
01:35:27,600 --> 01:35:33,960
bit less than that 600,000. Um it's
looks like it's $418,545.

1142
01:35:34,239 --> 01:35:41,760
Um,
so as Matt was explaining, if we help

1143
01:35:40,080 --> 01:35:45,040
them either with all of that or the
difference between what they believe

1144
01:35:43,040 --> 01:35:49,520
they have money to put towards it and
that amount, um, the town would

1145
01:35:47,280 --> 01:35:55,520
potentially have some of its balance of
that loan paid back through time over

1146
01:35:52,080 --> 01:36:00,320
cash flows versus right at closing. Um
the other piece of it though, and again

1147
01:35:57,280 --> 01:36:03,920
correct me if I misstate this Matt, um
if not all of that contingency is used

1148
01:36:02,480 --> 01:36:09,280
for the project, then we'd have that
going back to the town as well um to pay

1149
01:36:07,040 --> 01:36:15,679
back the rest of that loan.
>> Yeah, there's still opportunity to to

1150
01:36:11,520 --> 01:36:19,840
bring it all home. Um but I I I don't
want to uh

1151
01:36:17,679 --> 01:36:25,040
I'm not not changing
>> to wipe out the system in uses yet.

1152
01:36:22,480 --> 01:36:29,199
Let's finish a building, you know. I was
going to ask about the contingencies and

1153
01:36:26,800 --> 01:36:34,639
that's that's just kind of a fudge
factor just in case their cost ever

1154
01:36:31,199 --> 01:36:40,000
runs. What about reserve accounts?
>> The reserve accounts are specifically

1155
01:36:36,480 --> 01:36:44,080
for the bonds. One they're uh about 3
million and then two and a quarter and

1156
01:36:41,679 --> 01:36:48,639
one is to pay interest during the
construction period and that just gets

1157
01:36:46,159 --> 01:36:52,000
consumed like right you raise the money
from the bond holders and you write

1158
01:36:49,600 --> 01:36:59,679
checks back to the bond holders. Um
>> maybe money left over from that too.

1159
01:36:54,960 --> 01:37:04,320
No, I I the that that like bond cash
flows are very specific. Um and also

1160
01:37:02,159 --> 01:37:07,840
it's very easy to predict what the
interest uh service will be during that

1161
01:37:06,639 --> 01:37:12,880
period of time because you know what you
raised, you know the amount of time and

1162
01:37:10,159 --> 01:37:16,639
you know your revenue is zero.
So that that's that will probably be

1163
01:37:14,719 --> 01:37:22,719
consumed almost to the dollar. And then
the other $3 millionish dollars, I think

1164
01:37:18,880 --> 01:37:27,760
it's 2.9 something, is a is a long-term
reserve account and that's part of the

1165
01:37:25,040 --> 01:37:34,239
security package that the bond holders
require. That will I guess good point,

1166
01:37:31,679 --> 01:37:39,280
Le, that that will come back at the end
either to advertise bonds or or to you

1167
01:37:37,119 --> 01:37:46,639
all. um that'll come back probably after
you've already uh gotten that $529,000

1168
01:37:43,600 --> 01:37:51,040
in this case out of the uh out of the
project in cash flows.

1169
01:37:49,280 --> 01:37:56,480
» Okay. Well, that's good. And then the
water sewer tap fees, that come to the

1170
01:37:53,280 --> 01:37:59,199
town and building permit fees, is that
paid directly to the town?

1171
01:37:58,400 --> 01:38:02,320
» No. To our
>> It's probably part of the waved fees on

1172
01:38:00,719 --> 01:38:09,280
the left. Yeah, the the building permit
fees and the wave fees are were were

1173
01:38:07,040 --> 01:38:12,639
um
>> they did they you either I don't

1174
01:38:10,960 --> 01:38:16,880
remember if we took cash in and cash out
or or or if we just didn't didn't move

1175
01:38:14,639 --> 01:38:22,560
the cash around there [clears throat]
>> that that's a wash

1176
01:38:19,679 --> 01:38:28,000
» that's the same as building permit.
I believe the building permit were

1177
01:38:25,119 --> 01:38:32,800
waved, if I'm remembering correctly, the
water and sewer top fees and the fire

1178
01:38:29,679 --> 01:38:36,880
and school fees. Um, we are paying those
into the appropriate accounts, but we

1179
01:38:34,560 --> 01:38:39,840
have um grant money that's covering most
of that,

1180
01:38:37,679 --> 01:38:45,280
» right? As it should be.
>> And did that get paid to the town? Well,

1181
01:38:42,560 --> 01:38:47,520
water and sewer fees get paid to the
town.

1182
01:38:45,840 --> 01:38:50,719
» They'll get paid to those enterprise
funds, but again, we have grant dollars.

1183
01:38:49,280 --> 01:38:52,719
we have to pay our match portion, but
the rest of that is being paid with

1184
01:38:51,920 --> 01:38:58,280
grant dollars.
>> Great. Good work.

1185
01:38:55,280 --> 01:38:58,280
» Okay.

1186
01:38:58,639 --> 01:39:08,080
» So, if the direction of the board um is
that we would like to help cover some of

1187
01:39:05,440 --> 01:39:11,119
those buildout expenses with this new
market tax credit money, that is

1188
01:39:09,760 --> 01:39:15,199
something that would come back to the
board ultimately for for final approval

1189
01:39:13,520 --> 01:39:20,320
as we're working through this new market
tax credit process. Um, I know for

1190
01:39:18,320 --> 01:39:24,880
grandkids, the sooner they kind of have
information to work with that helps them

1191
01:39:22,400 --> 01:39:29,280
plan accordingly so that they can make
sure they are set up to to do their

1192
01:39:26,639 --> 01:39:33,280
buildout.
>> Well, we need to make sure we're getting

1193
01:39:30,560 --> 01:39:36,960
this money first of all, right?
>> Yeah. And I think we're we feel pretty

1194
01:39:35,040 --> 01:39:41,119
pretty confident that
>> um I can let Monica speak to that as

1195
01:39:39,040 --> 01:39:45,360
well um and her history with us, but we
we should be able to close on that money

1196
01:39:42,880 --> 01:39:48,960
and anything we offered would be
contingent on closing on that money.

1197
01:39:47,199 --> 01:39:55,280
» Yeah.
>> So, can you can you clarify um the order

1198
01:39:53,440 --> 01:40:00,960
that this would go in? I'm thinking
about our bridge loan and uh if it gets

1199
01:39:58,480 --> 01:40:04,719
paid back or partially paid back, but I
think we told the community that this

1200
01:40:02,639 --> 01:40:09,520
was not we were not paying for this that
we would get that money back. So I I

1201
01:40:07,600 --> 01:40:15,679
mean I'm
kind of in I'm in support of helping the

1202
01:40:13,199 --> 01:40:20,480
child with education, but I I think we
have to be upfront with our community

1203
01:40:18,480 --> 01:40:25,040
and and pay ourselves back first and
then if there's something left over, we

1204
01:40:23,040 --> 01:40:29,520
can consider. But these are things we
said in public uh micro.

1205
01:40:27,679 --> 01:40:34,560
» Well, and one thing to consider with
these this $3 million is we wouldn't be

1206
01:40:32,080 --> 01:40:39,440
eligible if we weren't supporting this
daycare to begin with.

1207
01:40:36,560 --> 01:40:44,760
» So if we were to s, you know, sacrifice
500,000 now and get paid back over time.

1208
01:40:44,880 --> 01:40:52,239
It's just something to consider.
>> I just want to make sure it's clear to

1209
01:40:48,239 --> 01:40:56,320
the our constituents and our community
that

1210
01:40:54,480 --> 01:41:00,000
you know that our arrangements are are
we're sticking to our word. I mean we we

1211
01:40:58,320 --> 01:41:04,000
loaned that money and it was said over
and over and we had people in the

1212
01:41:01,440 --> 01:41:10,960
audience saying hey is this going to be
Frasier paying for this and we said no

1213
01:41:06,639 --> 01:41:15,639
multiple times. I I just uh think we
need to be cognizant of that.

1214
01:41:16,480 --> 01:41:21,360
» All righty.
>> Okay. But we don't need to decide that

1215
01:41:20,159 --> 01:41:24,400
right now. Right.
>> We just need to

1216
01:41:22,320 --> 01:41:27,440
» We don't No action.
>> No, we're not looking for any action.

1217
01:41:25,679 --> 01:41:31,199
Yeah, this isformational.
>> Okay, it's a lot of information.

1218
01:41:29,199 --> 01:41:34,080
» That's a lot of information, but I
appreciate you guys. Thank you for

1219
01:41:32,480 --> 01:41:36,400
coming.
>> Thank you.

1220
01:41:34,800 --> 01:41:42,520
» And we have just a
>> short leg stretch before we start the

1221
01:41:39,280 --> 01:41:42,520
next one.

1222
01:41:44,080 --> 01:41:48,880
» We have three
>> not going to be short.

1223
01:41:45,840 --> 01:41:52,719
» We have three things to go. Um, we have
a request for a leg stretch. Let's uh

1224
01:41:51,440 --> 01:41:58,199
let's do three minutes.
>> Yeah, just short. Then y'all could stand

1225
01:41:55,199 --> 01:41:58,199
up.

1226
01:46:18,960 --> 01:46:27,679
Okay,
next up

1227
01:46:23,760 --> 01:46:32,159
» we we get Oh, yeah. Oh, plenty. Um, pole
yard development community wish list

1228
01:46:30,000 --> 01:46:35,159
discussion. Uh, Ron Jones is here with
us.

1229
01:46:41,199 --> 01:46:46,719
Do I need to talk fairly closely into
this for you to hear me?

1230
01:46:45,119 --> 01:46:47,920
» Yeah, that's that would be helpful.
Yeah.

1231
01:46:46,960 --> 01:46:52,000
» Can you hear me now?
>> Yeah. Yeah.

1232
01:46:48,560 --> 01:46:57,600
» Okay. I'm Ron Jones. I know most of you.
Um, I've had conversations with some of

1233
01:46:55,280 --> 01:47:01,760
you individually and I'll keep this
fairly

1234
01:46:59,119 --> 01:47:08,480
brief and I just wanted to give you the
courtesy of telling you what we're doing

1235
01:47:04,239 --> 01:47:13,119
and what we've done. Um, as many of you
know, I've been in the valley 51 years

1236
01:47:11,119 --> 01:47:19,280
and did Cooper Creek Square. I did a lot
of self storage. I'm out of all that now

1237
01:47:16,080 --> 01:47:25,440
and I'm at a place in my life where I'd
like to pay back to the community. And

1238
01:47:21,600 --> 01:47:32,159
so my family and I, my my kids and
myself, we looked around and we felt the

1239
01:47:28,800 --> 01:47:39,440
best way to do this would be to buy the
Susan Jones Trust property, the 128

1240
01:47:35,280 --> 01:47:45,840
acres, which is part of what is sort of
called the pole yard. I guess it's

1241
01:47:41,760 --> 01:47:49,280
everything from uh the Sarah, did you
want to put a map up or

1242
01:47:47,679 --> 01:47:56,239
» Yeah, it's everything from the ball
fields to the elementary school up to

1243
01:47:51,520 --> 01:48:03,840
Grandma Miller's and up to Betsy Dere's
uh my kid's mom's house. It's a very

1244
01:48:00,480 --> 01:48:11,920
critical parcel that I think needs to be
developed properly. And so we didn't do

1245
01:48:08,639 --> 01:48:16,400
the traditional developer thing of let's
get a development plan and let's draw a

1246
01:48:14,560 --> 01:48:23,440
bunch of pretty pictures and come to the
city and say this is what we want to do.

1247
01:48:19,600 --> 01:48:29,280
I felt the property became available at
a price that was high but still

1248
01:48:26,960 --> 01:48:35,920
we could justify and we just simply
bought it. And our goal is to take a

1249
01:48:33,600 --> 01:48:41,199
substantial portion of this property and
put it to use for the things that will

1250
01:48:38,960 --> 01:48:48,960
help make the Frasier Valley a more
sustainable place for people to live. Uh

1251
01:48:44,880 --> 01:48:55,280
it's not about what kind of a IR can get
off the property. It's what we can do to

1252
01:48:52,000 --> 01:48:58,800
to make things work. And so I want to
work with Frasier. I want to work with

1253
01:48:56,960 --> 01:49:05,920
Winter Park. I want to work with Grand
County. I want to work with everybody

1254
01:49:01,440 --> 01:49:10,480
that's involved to listen to what we
need in order so that young families

1255
01:49:08,880 --> 01:49:15,679
don't say we can't make it here. We
can't afford to live here. We have to

1256
01:49:11,920 --> 01:49:20,080
leave. Um obviously work for you. You
just had a whole huge presentation on

1257
01:49:17,679 --> 01:49:26,480
workforce housing. That's on the top of
the list with 150 acres. And and by the

1258
01:49:23,679 --> 01:49:33,040
way, we're working with Matt Girky who
owns Polyard. Uh we're united in in

1259
01:49:31,040 --> 01:49:34,639
pause as far as doing the right thing
for the community.

1260
01:49:34,159 --> 01:49:39,280
» Wonderful.
>> With that amount of land, there's

1261
01:49:37,360 --> 01:49:43,840
absolutely no reason if we can find the
developers to do it that we can't build

1262
01:49:41,040 --> 01:49:49,280
as much workforce housing, single family
housing for people who live and work

1263
01:49:46,000 --> 01:49:52,560
here. There'll be some market things.
Yes.

1264
01:49:50,320 --> 01:49:57,040
» How much does Matt Kirk?
>> He has 10 acres.

1265
01:49:54,000 --> 01:50:01,840
» He he has 10. We already had five and we
just bought 128. So it's close to 150

1266
01:50:00,719 --> 01:50:09,760
total.
>> And then my family and Graham and Louise

1267
01:50:05,520 --> 01:50:14,000
Powers own the 43 acres between
uh

1268
01:50:11,280 --> 01:50:18,000
let's say the rodeo grounds and and the
west side of Frasier.

1269
01:50:15,760 --> 01:50:23,440
» Most of that is wetlands, but not all of
it. And when County Road 522 gets built,

1270
01:50:20,639 --> 01:50:28,960
which we just had meetings with the
county uh this last week, and they're

1271
01:50:26,719 --> 01:50:33,360
very very close to having that all put
together, and if that happens, I think

1272
01:50:31,760 --> 01:50:40,000
their intention is to build it
relatively soon. So anyway, the the

1273
01:50:38,080 --> 01:50:44,480
there isn't a plan to talk about.
There's there's a dream. There's an

1274
01:50:41,679 --> 01:50:48,800
idea. There's a hey, we've got the land
now, and we're not on a short time

1275
01:50:47,199 --> 01:50:54,800
frame. I didn't borrow a whole bunch of
money and now I have to go make money.

1276
01:50:51,360 --> 01:50:59,360
We paid cash for it and we can hold it
and we can protect it. It's it's not

1277
01:50:57,360 --> 01:51:04,880
going to be open space. It's a it's an
industrial site. I mean, it's not not a

1278
01:51:01,600 --> 01:51:13,040
pretty meadow, but it's a place where
the things child care, workforce

1279
01:51:08,400 --> 01:51:20,080
housing, uh, schools, uh, recreation,
nonprofits, uh, Riverwalk. There's a lot

1280
01:51:17,040 --> 01:51:25,600
of things we can do. So, the the first
step that I I want to do is hold some

1281
01:51:23,040 --> 01:51:30,719
public meetings and and just listen,
just hear what people in the community

1282
01:51:27,520 --> 01:51:34,480
say. We'd like to see this. we feel we
need this. And we've had people coming

1283
01:51:32,400 --> 01:51:39,599
out of the woodwork saying, "Gosh,
listen to us. This is what we need. You

1284
01:51:37,280 --> 01:51:43,199
guys are going to be important because
we can't do this without the

1285
01:51:40,960 --> 01:51:49,520
infrastructure of Frasier." We all know
that water is a big issue. Uh we've been

1286
01:51:46,239 --> 01:51:53,199
talking to your town leaders about
solving that. The sooner that we solve

1287
01:51:51,520 --> 01:51:57,920
the water problem, the sooner we can get
going with trying to put land

1288
01:51:55,679 --> 01:52:04,320
underneath. I want to be very, very
clear. We will donate some land. We will

1289
01:52:01,280 --> 01:52:08,480
make some land affordable and then we'll
have some market land. We we we'd like

1290
01:52:06,320 --> 01:52:12,880
to at least recapture what we paid for
the land, maybe make a small profit, but

1291
01:52:10,960 --> 01:52:20,320
that's not our main motivation. The main
motivation is to is to actually have a a

1292
01:52:17,199 --> 01:52:25,280
resort community that works for
everybody, not just the people who come

1293
01:52:22,320 --> 01:52:30,560
here as the second homeowners. And
that's a big broad picture. That's a

1294
01:52:27,199 --> 01:52:36,320
huge tent, but you're dealing with
somebody who's lived here 51 years.

1295
01:52:34,320 --> 01:52:43,119
Katie Souls and I played pool. We both
came to town the same night in 1975,

1296
01:52:40,000 --> 01:52:46,800
Halloween night, and we we've done it
together, you know, all this time. And

1297
01:52:45,679 --> 01:52:49,920
so,
>> that's that's what we're trying to do.

1298
01:52:48,800 --> 01:52:54,400
» Yeah, it's wonderful.
>> I'll answer I'll answer questions, but

1299
01:52:51,760 --> 01:52:59,199
there's not a lot more detail. We we
banned bannered around some names and I

1300
01:52:56,719 --> 01:53:04,480
think for the time being I just like to
refer to it as a community project at

1301
01:53:01,360 --> 01:53:08,320
the poleard. That won't be the end name
but that's kind of the everybody knows

1302
01:53:06,639 --> 01:53:12,800
the poleard and that's what we're trying
to do is do a community project.

1303
01:53:10,400 --> 01:53:17,920
» Wonderful.
So yeah I [laughter]

1304
01:53:16,239 --> 01:53:21,360
» I was thrilled when you found that you
bought it. So the old pond the mill

1305
01:53:20,880 --> 01:53:25,679
pond.
>> Yes. that's back there that hardly holds

1306
01:53:23,280 --> 01:53:28,800
water. That's in your property now.
>> Yes.

1307
01:53:26,719 --> 01:53:34,000
» Um and we're always looking for a place
for water storage,

1308
01:53:31,119 --> 01:53:40,719
I believe. And it's a good opportunity
for potential recreation and park. I

1309
01:53:36,800 --> 01:53:45,360
know our kids played there growing up.
It was just fabulous. So anyway, that's

1310
01:53:42,639 --> 01:53:49,840
something to for us to kind of tuck away
as a possibility for a another little

1311
01:53:47,920 --> 01:53:55,440
park in there and also to be able to use
that water for water storage and water

1312
01:53:52,960 --> 01:54:00,560
mitigation because that's kind of big
for the town. We need more of that. We

1313
01:53:58,639 --> 01:54:06,800
have been
discussing those exact concepts with

1314
01:54:03,520 --> 01:54:15,040
with our team and your team. Okay.
>> And as I understand it,

1315
01:54:10,880 --> 01:54:18,320
doing treatment of surface water is very
expensive and probably outside of the

1316
01:54:16,960 --> 01:54:25,119
budget of Frasier. Yeah.
>> However, drilling wells and releasing uh

1317
01:54:22,159 --> 01:54:29,760
water to augment wells from a storage
pond is

1318
01:54:27,599 --> 01:54:36,159
very efficient in in comparison to
surface. So, that is definitely

1319
01:54:33,599 --> 01:54:41,520
something we're talking about. One thing
that probably isn't that well known in

1320
01:54:38,560 --> 01:54:45,840
the community, it's not a secret, but uh
those of you who know where I live, I've

1321
01:54:43,840 --> 01:54:52,239
got about a 7 acre lake that Dwight
Miller dug as a um

1322
01:54:49,920 --> 01:54:56,639
it was a rock quarry or a gravel pit way
back when. And that water's just been

1323
01:54:54,800 --> 01:55:01,599
sitting there. I don't have any water
rights, but I've got the right to have

1324
01:54:58,800 --> 01:55:05,840
the lake. So, I have made an agreement
with the Middle Park Water Conservancy

1325
01:55:04,000 --> 01:55:11,520
District to convert that into a
community purpose reservoir.

1326
01:55:08,480 --> 01:55:15,119
That gives us the possibility of
releasing

1327
01:55:13,119 --> 01:55:20,960
uh augmentation water. And there's not
that many users between Frasier and

1328
01:55:18,639 --> 01:55:24,800
where I live in Tabernac. I'm not saying
that it'll work, but it's certainly

1329
01:55:23,199 --> 01:55:29,920
something that it makes sense that
Frasier would want to cooperate with

1330
01:55:28,080 --> 01:55:34,800
Middle Park Water Conservancy because
they're certainly here for the their

1331
01:55:32,719 --> 01:55:39,520
whole district. So, I think we're going
to have to get creative to solve that

1332
01:55:36,880 --> 01:55:44,159
problem. But as soon as we do, then we
can start talking to the various

1333
01:55:41,520 --> 01:55:48,639
individuals. We can do a land plan. We
can start coming to you to talk about

1334
01:55:46,400 --> 01:55:53,440
annexation. we can start talking to
groups who who need land. I've had

1335
01:55:51,440 --> 01:55:56,560
several nonprofits come to me and say,
"Gosh, we'd like to have our own place.

1336
01:55:55,360 --> 01:56:01,360
You know, we'd like to have land
underneath us." I've had a lot of people

1337
01:55:58,880 --> 01:56:04,800
say, "Gosh, I' I'd really want to stay
in the valley, but I don't necessarily

1338
01:56:03,360 --> 01:56:08,800
want to live in an apartment. You know,
workass housing is not where I want to

1339
01:56:07,040 --> 01:56:12,960
raise a family. I'd like to have a small
piece of land. I mean,

1340
01:56:12,159 --> 01:56:19,119
» a neighborhood.
>> A neighborhood." and and Andy Miller was

1341
01:56:15,920 --> 01:56:22,239
talking to me last night about when you
and I moved up here, people bought a

1342
01:56:20,880 --> 01:56:26,480
little piece of land and they built
their own house because that's the only

1343
01:56:24,880 --> 01:56:29,280
way they could afford to do it. You
know, one year they'd put up this wall,

1344
01:56:28,159 --> 01:56:32,960
the next year they put up the other
wall. And I hope people could build it

1345
01:56:30,719 --> 01:56:37,840
sooner than that, but it'd be nice to
have small lots that are affordable that

1346
01:56:35,679 --> 01:56:45,440
people can figure out a way to actually
own a house. Now, I can't do all the

1347
01:56:41,920 --> 01:56:50,719
vertical, but I can help solve the land.
And and land cost is, as you know from

1348
01:56:48,080 --> 01:56:56,800
the project you're doing on on the
housing, land cost is a huge portion of

1349
01:56:52,880 --> 01:57:02,639
it. And if we can bring that under
control, there's a whole lot of good we

1350
01:56:59,360 --> 01:57:07,280
can do. And I wish I had more details,
but I can't have more details until we

1351
01:57:05,599 --> 01:57:12,639
collectively work through this and and
and solve some of the issues. So, you

1352
01:57:10,480 --> 01:57:16,639
know, what we're dealing with is was is
a spirit right now. And I want to invite

1353
01:57:15,280 --> 01:57:21,920
everybody in the community to
participate in this, not a secret. It's

1354
01:57:18,960 --> 01:57:26,960
like, how can we do this together? And
I've had an incredibly positive

1355
01:57:24,400 --> 01:57:31,920
response. Uh I've been talking to a lot
of people. uh everybody from you know

1356
01:57:30,080 --> 01:57:38,000
the ski areas to governments to
nonprofits and I think this is an

1357
01:57:35,360 --> 01:57:43,280
opportunity for us to really come
together and say what do we need to

1358
01:57:40,719 --> 01:57:48,639
create a community that's more livable
and not just for the second homeowners.

1359
01:57:45,840 --> 01:57:52,560
So any other questions?
>> We're very excited.

1360
01:57:50,800 --> 01:57:54,960
» I'm excited. I hope you guys are.
>> We are.

1361
01:57:54,159 --> 01:57:57,599
» That's great.
>> What other thoughts do you guys have for

1362
01:57:56,480 --> 01:58:02,320
you? Thank you.
>> Yeah. Thank you, Ron.

1363
01:57:59,040 --> 01:58:05,639
» Thanks so much.
>> Yeah, absolutely.

1364
01:58:09,440 --> 01:58:17,520
» Um Andy Miller, Planning Commission,
Frasier. Uh you know, I've I've been

1365
01:58:14,800 --> 01:58:24,719
doing this land development review game
as a town board member, as a journalist,

1366
01:58:19,920 --> 01:58:31,840
as as a naysayer out in the community a
long time. 50 50 three years, I believe.

1367
01:58:28,639 --> 01:58:36,960
Um, and last night after talking to Ron
over dinner last night, um, I lost a

1368
01:58:34,639 --> 01:58:40,159
little sleep for the first time. It
wasn't because I was worried about

1369
01:58:38,480 --> 01:58:45,520
something. It was because I was excited
about something. So, this is this is

1370
01:58:42,719 --> 01:58:49,440
really cool. Um, I think the the key
words that I got from Ron that I heard

1371
01:58:47,280 --> 01:58:54,880
again tonight is a community built
project and get the young people

1372
01:58:52,080 --> 01:59:00,639
involved. women. Uh we've got so many pe
so many my both of my sons are in their

1373
01:58:57,760 --> 01:59:04,080
mid-30s and and doing good things, but
basically pretty convinced the

1374
01:59:02,320 --> 01:59:09,520
government doesn't do anything to help
them out. And um and here's here's some

1375
01:59:07,119 --> 01:59:12,639
property. Here's a possible project we
might put together. When we were talking

1376
01:59:10,719 --> 01:59:17,199
about the pole yard, we came pretty
close to buying that. I know we talked

1377
01:59:14,960 --> 01:59:20,960
about a make it space. The make it
movement is you don't hear a lot about

1378
01:59:18,639 --> 01:59:23,920
it lately, but it's out there. A lot of
people want to know how to work with

1379
01:59:22,000 --> 01:59:28,400
their hands, you know. And you think
about these these tiny lots and small

1380
01:59:26,000 --> 01:59:31,920
houses, not tiny houses, but houses that
could have all the facilities in them.

1381
01:59:30,400 --> 01:59:36,000
And the owner that wants to build them,
but is working by himself. And maybe we

1382
01:59:34,320 --> 01:59:40,719
don't do one wall at a time. That would
that would uh could create a blight on

1383
01:59:38,159 --> 01:59:44,159
the landscape. And but maybe we bring in
like Breenriidge does with art

1384
01:59:42,400 --> 01:59:48,080
vacations. Maybe we have make it type
vacations. And we have a community shop

1385
01:59:46,400 --> 01:59:54,080
out there with the facilities and the
tools and the things that a person needs

1386
01:59:50,159 --> 02:00:00,400
to build a house and learn trades. Um,
and then tourist uh visitors come in for

1387
01:59:57,760 --> 02:00:05,199
a little hawk fin vacation. I got the
brush. Um, I got the paint and there's

1388
02:00:03,119 --> 02:00:09,360
the fence. Let's see. You know, it's
going to be a little more elaborate than

1389
02:00:06,480 --> 02:00:13,520
that, but that's the spirit of it. So
there just so many great ideas that that

1390
02:00:11,199 --> 02:00:17,760
that that the young folks in town will
come up with and and those amongst us

1391
02:00:16,159 --> 02:00:22,800
who've made those mistakes in the past
can hopefully at least offer a path past

1392
02:00:20,239 --> 02:00:26,639
those. So Ron, I'm super excited about
this and it's just really nice to hear

1393
02:00:24,960 --> 02:00:28,800
somebody get up here and say, "I want to
give back." So

1394
02:00:28,080 --> 02:00:32,000
» indeed.
>> Thanks.

1395
02:00:30,000 --> 02:00:35,199
» Okay.
All right.

1396
02:00:33,679 --> 02:00:39,840
» Well, I've had a number of conversations
with Ron. It's It's always been fun to

1397
02:00:38,239 --> 02:00:45,440
kind of dream of what we want to put in
this space. Um, have you guys

1398
02:00:43,119 --> 02:00:51,480
heard anything else or do you have you
thought of anything else that hasn't

1399
02:00:46,800 --> 02:00:51,480
already been already been brought up?

1400
02:00:52,239 --> 02:00:59,679
» I was interested. And I know I brought
up um I mentioned to a gal who's a

1401
02:00:56,480 --> 02:01:03,599
teacher, you know, about school and then
but she was really worried about

1402
02:01:01,360 --> 02:01:08,159
stretching the resources and funding
that we have for our school district

1403
02:01:05,119 --> 02:01:12,639
already. So that was interesting, you
know, in terms of a middle school high

1404
02:01:10,320 --> 02:01:16,480
school combo, but
>> I think it needs to be considered,

1405
02:01:14,320 --> 02:01:21,920
» you know, and we need we're going to
need a new location for Safeway

1406
02:01:20,400 --> 02:01:28,480
eventually.
It is busting at the seams and we're

1407
02:01:24,800 --> 02:01:32,800
probably gonna have another
thousand people as permanent population

1408
02:01:30,880 --> 02:01:38,239
over the next 10 years, maybe more. And
it just can't accommodate it. You think

1409
02:01:36,239 --> 02:01:42,800
about the number of people. But this
particular property, it doesn't really

1410
02:01:39,840 --> 02:01:46,639
work for because of the railroad. You
can only access off of County Road 5,

1411
02:01:45,119 --> 02:01:50,880
right? Or coming through the town of
Frraasier. Um, now across the street,

1412
02:01:49,760 --> 02:01:54,719
you know what's going on with the rest
of that Jones the Susan Jones trust

1413
02:01:53,040 --> 02:01:58,320
property right there up at 8 the corner
of 8 and 40?

1414
02:01:56,560 --> 02:02:01,280
» It's listed.
>> Okay.

1415
02:01:58,719 --> 02:02:02,800
» And they're trying to sell it.
>> Yeah.

1416
02:02:01,760 --> 02:02:06,159
» That's all
>> all I know. I've heard rumors. Okay. But

1417
02:02:05,119 --> 02:02:09,920
that's all I know.
>> Yeah. But you you bring up the

1418
02:02:08,480 --> 02:02:13,840
transportation issue and this is
something I should have included in my

1419
02:02:11,520 --> 02:02:17,280
presentation because this is this is an
action item you guys need to be aware of

1420
02:02:16,000 --> 02:02:22,880
now and I'm sure you're going to be
hearing about it.

1421
02:02:19,920 --> 02:02:27,040
» Scott Ladine brought up uh and and then
several people after him brought up the

1422
02:02:24,960 --> 02:02:32,000
need to be able to connect the
elementary school to the ball fields so

1423
02:02:29,840 --> 02:02:36,960
that kids can safely walk from the
elementary school to the ball fields.

1424
02:02:34,159 --> 02:02:41,119
This can happen very, very soon because
County Road 522,

1425
02:02:39,199 --> 02:02:48,080
now that it looks like it's for sure
going to happen, has a bike path, a

1426
02:02:45,040 --> 02:02:54,719
separated bike path from the roadway as
you know that goes over the uh gas line

1427
02:02:50,639 --> 02:03:01,119
easement and it goes all the way from
well from County Road 73 to the ball

1428
02:02:57,920 --> 02:03:08,800
fields. If we can simply connect the
elementary school to 522,

1429
02:03:04,159 --> 02:03:13,760
that connection is here very soon. I
mean, it could happen in the next year

1430
02:03:10,239 --> 02:03:19,840
or two. The other thing that the county
said in in our meetings, and I don't

1431
02:03:16,560 --> 02:03:26,800
think I'm saying anything out of school,
when when 522 was first designed, this

1432
02:03:22,719 --> 02:03:29,840
was 20 years ago, and the Susan Jones
property, there was no hint that any

1433
02:03:28,480 --> 02:03:35,599
development was going to happen. So,
there was nothing urban. The road was

1434
02:03:32,960 --> 02:03:42,800
designed to be, you know, 40, 45 miles
an hour moving traffic. when the county

1435
02:03:40,000 --> 02:03:47,520
understood what our vision is and you
know in some of the discussions we've

1436
02:03:44,320 --> 02:03:52,880
had were the potential of maybe as many
as 2,000 F sfes out there and that type

1437
02:03:50,639 --> 02:03:57,599
of density
that traffic has to slow down now and

1438
02:03:55,040 --> 02:04:03,599
the the county engineer and the county
manager completely understood that this

1439
02:04:00,560 --> 02:04:08,639
is going to become an urban corridor. I
mean, as urban as we can call it

1440
02:04:06,000 --> 02:04:14,320
anything in Grand County and that's a
good thing because you don't want people

1441
02:04:12,080 --> 02:04:18,159
zipping by all of the existing homes
that you've got on the west side of

1442
02:04:15,760 --> 02:04:23,440
Frasier, you know, at 45 50 miles an
hour and creating noise and and and

1443
02:04:21,360 --> 02:04:27,520
safety issues. So if that road slows
down,

1444
02:04:25,119 --> 02:04:32,239
you all need to really seriously think
about how Eisenhower

1445
02:04:29,679 --> 02:04:38,880
needs to connect to 522
>> because it's the only way to get from

1446
02:04:35,920 --> 02:04:43,599
Frasier to the ball fields and the kids
to get there without going across the

1447
02:04:41,599 --> 02:04:49,280
railroad tracks and going back out on
Highway 40. So if Eisenhower connects to

1448
02:04:46,560 --> 02:04:54,480
522 now you've got a way that the
citizens of Frraasier can get to the

1449
02:04:50,960 --> 02:05:01,440
ball fields and in talking to the you
know the school district as they look 20

1450
02:04:57,840 --> 02:05:04,880
15 20 25 years down the road ultimately
there's probably going to be a high

1451
02:05:02,560 --> 02:05:09,119
school and a middle school in in this
end of the county. And when that happens

1452
02:05:07,520 --> 02:05:13,199
it's it's either probably going to
happen on our property. There's some

1453
02:05:11,360 --> 02:05:16,480
other ideas that are being floated
around, but it's going to be right in

1454
02:05:14,800 --> 02:05:21,280
that neighborhood. So, if we have all of
this school thing, we have all of the

1455
02:05:18,719 --> 02:05:25,840
workforce housing, we got the library,
the elementary school, and Oldtown

1456
02:05:23,840 --> 02:05:31,040
Frasier, we've got to have that
transportation connection. And it's not

1457
02:05:28,159 --> 02:05:35,199
just that intersection. We need to be
looking right now at a road plan. I

1458
02:05:33,360 --> 02:05:37,840
mean, how is this all going to tie
together? Yeah.

1459
02:05:36,080 --> 02:05:43,119
» We don't want to be reacting to it
afterwards. So if 522 gets built now, I

1460
02:05:41,280 --> 02:05:49,040
mean the one of the main purposes of
that is so that locals can avoid some of

1461
02:05:46,239 --> 02:05:52,960
the traffic that gets congested on the
Highway 40. I mean, we're going to know

1462
02:05:50,960 --> 02:06:00,159
about it. So you can start in Tavern and
get to Safeway and avoid Highway 40. So,

1463
02:05:56,880 --> 02:06:07,280
I I urge you all to coordinate with the
county and us to figure out how all of

1464
02:06:03,920 --> 02:06:11,520
those in intersections and and how the
traffic's going to flow and and that's

1465
02:06:09,599 --> 02:06:16,400
long before we ever solve the water
problem. That's like right now. So,

1466
02:06:14,080 --> 02:06:22,639
thank you for letting me add to that.
thinking about use too. The end that's

1467
02:06:18,719 --> 02:06:26,639
closest to County Road 5 fieldhouse
because we don't want it in the meadow

1468
02:06:24,639 --> 02:06:30,400
and right here in town, but to have it
right across from the the ball fields,

1469
02:06:29,119 --> 02:06:34,639
that's the place for a fieldhouse.
interesting because Scott mentioned

1470
02:06:32,159 --> 02:06:35,920
tonight about a master plan thing that
visioning and

1471
02:06:35,520 --> 02:06:40,480
» y
>> I think that's been one of the things

1472
02:06:37,920 --> 02:06:47,440
that I keep hoping for is that we can
work with Denver water band in the north

1473
02:06:43,679 --> 02:06:51,280
create this ball fields long so that we
can attract tournaments and be in the

1474
02:06:49,520 --> 02:06:53,679
same business that steamboats in
>> Yeah.

1475
02:06:51,679 --> 02:06:56,960
» and bring them in to stay in our new
hotels

1476
02:06:55,119 --> 02:07:01,280
» and people will come and spend money in
the summer and be here. I'll throw

1477
02:06:59,199 --> 02:07:08,000
something out that a lot of people were
surprised by and my friend Mike Ruuchi

1478
02:07:05,119 --> 02:07:14,480
noticed this and brought it up.
The conservation ement that's on all the

1479
02:07:12,239 --> 02:07:19,760
land that Peggy's talking about north of
the ball fields has been given by the

1480
02:07:16,960 --> 02:07:24,800
Denver Water Board. The holder of the
conservation easement is the Grand

1481
02:07:22,159 --> 02:07:30,560
County Board of Trustees.
>> It's not a land trust. It's our county.

1482
02:07:28,880 --> 02:07:35,840
that gives us a huge amount of
flexibility in working with that

1483
02:07:33,520 --> 02:07:40,400
particular conservation easement.
There's also an exception written right

1484
02:07:38,239 --> 02:07:47,360
in the conservation easement for
educational purposes.

1485
02:07:42,639 --> 02:07:50,560
So right now there's no prohibition on
anything that would be of course middle

1486
02:07:49,040 --> 02:07:56,320
school, high school, it would certainly
be educational purposes. What we have is

1487
02:07:53,520 --> 02:08:01,920
a lot of flexibility here as as as a
community to think about how everything

1488
02:07:59,920 --> 02:08:05,920
from the elementary school to the other
side of the ball field should come

1489
02:08:03,280 --> 02:08:09,920
together from a planning perspective.
Now, no promises. We have to work with

1490
02:08:08,159 --> 02:08:16,239
the Denver Water Board. We all know how
easy they are to work with. But, uh, you

1491
02:08:13,119 --> 02:08:20,239
know, I think if we as a community come
up with a plan that really works for the

1492
02:08:18,639 --> 02:08:25,040
community, as long as we're not taking
any of Denver Waters water, I think that

1493
02:08:22,960 --> 02:08:30,880
there's a chance that we could work with
them and some of these uses we're

1494
02:08:27,840 --> 02:08:35,119
talking about like a fieldhouse school
could actually expand in that in in that

1495
02:08:33,199 --> 02:08:38,960
direction. And it wouldn't take up that
whole meadow. I mean, it would probably

1496
02:08:36,639 --> 02:08:43,920
take up I don't I don't even want to
guess, but not not that big. and all the

1497
02:08:42,000 --> 02:08:48,880
discussions we've been having, everybody
points out the same thing. If if you're

1498
02:08:46,400 --> 02:08:53,360
going to have future schools, taking
advantage of the existing

1499
02:08:51,360 --> 02:08:57,760
recreation facility of the ball fields
cuts down on the amount of land you need

1500
02:08:55,440 --> 02:09:02,719
for all of the high school activities.
So, we've got just an incredible

1501
02:08:59,760 --> 02:09:07,040
opportunity to get ahead of the game.
Uh, one of the things that I've heard

1502
02:09:05,280 --> 02:09:11,760
I've been saying for years and other
people are starting to say the same

1503
02:09:09,040 --> 02:09:15,520
thing. We're the last frontier. All the
other ski areas have already done it.

1504
02:09:13,679 --> 02:09:20,480
They've either did it right or they made
their mistakes. And we can learn from

1505
02:09:18,400 --> 02:09:26,560
what's happened in the other ski areas
and hopefully avoid some of the

1506
02:09:22,159 --> 02:09:31,760
mistakes. We still have the ability to
figure out how our community as a whole

1507
02:09:28,800 --> 02:09:37,760
works. Got a worldclass ski area, got
all kinds of second homes. We got tons

1508
02:09:34,960 --> 02:09:43,440
of town houses and golf course houses
and everything else. Now we have to

1509
02:09:40,000 --> 02:09:49,760
figure out how the Grand County is not
going to become Aspen, Basalt, Rifle,

1510
02:09:48,239 --> 02:09:53,920
you know, we don't want all our
employees to have to drive to Kremling.

1511
02:09:52,079 --> 02:09:59,280
We want to be able to let people live
and work in this community. And that's

1512
02:09:55,760 --> 02:10:04,800
my goal is do everything I possibly can
to pay back to a achieve that. And it's

1513
02:10:02,800 --> 02:10:09,440
it's a big big project and we're going
to need a lot of help. So, it's an open

1514
02:10:06,719 --> 02:10:14,159
tent. But right now, let's focus on that
transportation item because that's going

1515
02:10:11,199 --> 02:10:17,360
to happen sooner than later. And the
last thing you want to do is build a

1516
02:10:15,520 --> 02:10:21,360
road and then a year later come back and
say, "Oh, we didn't think about this."

1517
02:10:19,679 --> 02:10:24,159
So, we need to think about how this is
going to work in the overall planning

1518
02:10:22,960 --> 02:10:27,679
process.
>> Anything else?

1519
02:10:25,440 --> 02:10:29,520
» Have they Have they mapped out exactly
where the road's going to go at this

1520
02:10:29,040 --> 02:10:33,679
point?
>> Yes, sir. Yeah, there's you did the 404.

1521
02:10:33,280 --> 02:10:36,639
» Okay.
>> Um, Adam, use your mic, please. Thank

1522
02:10:36,079 --> 02:10:42,320
you.
>> It it essentially goes from the loop

1523
02:10:40,079 --> 02:10:46,239
road that goes through Clark's property
and and starts at County Road 7 and

1524
02:10:44,159 --> 02:10:52,000
three and sort of curves around through
our 43 acres and comes out at the

1525
02:10:49,520 --> 02:10:57,599
intersection of uh County Road 50 there
by the gas meters or gas, whatever you

1526
02:10:55,360 --> 02:11:02,960
want to call that, substation. And then
it there's a little jog where it hits

1527
02:10:59,840 --> 02:11:08,960
County Road five to line up with the
road that goes next to the ball fields.

1528
02:11:05,760 --> 02:11:13,920
» So the other thing that I'm a strong
proponent of and I think the county is

1529
02:11:11,280 --> 02:11:18,639
listening is is to is to get some
roundabouts in there, you know, early on

1530
02:11:16,800 --> 02:11:24,159
rather rather than just having stop
signs and all that type of stuff because

1531
02:11:21,679 --> 02:11:28,960
that that slows down traffic. It's it's
a safe way to to to get around. So, I

1532
02:11:27,440 --> 02:11:33,040
really encourage Frraasier to get
involved in that planning process

1533
02:11:30,560 --> 02:11:37,760
because even though it's a county road,
it's really impacting the town of

1534
02:11:35,280 --> 02:11:40,760
Frraasier at least as much as it is the
county.

1535
02:11:41,040 --> 02:11:48,239
» I I was just saying that the road layout
is determined at this point. Um whether

1536
02:11:46,239 --> 02:11:55,520
there's roundabouts or not, I I do not
know. Um I last December, I I renewed

1537
02:11:52,719 --> 02:12:00,320
the 404 permit with the state. I work
for the county as a water resource guy.

1538
02:11:57,679 --> 02:12:03,199
So, um yeah, that's moving forward.
>> Yeah, great.

1539
02:12:01,119 --> 02:12:06,159
» It's really close. I think one more
step.

1540
02:12:03,840 --> 02:12:10,800
» Yeah. I I don't know if we have final
Army Corps

1541
02:12:08,079 --> 02:12:13,840
uh yet, but that's in play and and they
say it's expected to come through

1542
02:12:12,239 --> 02:12:17,520
because it's a removal. This has been
going for 20 years, and it's just an

1543
02:12:15,599 --> 02:12:23,440
updated process basically.
>> And the and the county staff and and the

1544
02:12:20,239 --> 02:12:28,480
county is really supporting this and
they're doing it right. And you know, Ed

1545
02:12:25,920 --> 02:12:34,639
Moyer's been working on this for for
years, and I think they're circling back

1546
02:12:32,239 --> 02:12:41,119
after some community input that came in.
And I think they're really close to to

1547
02:12:36,880 --> 02:12:45,679
to having it done. And we're going to be
fairly significant in terms of land

1548
02:12:43,520 --> 02:12:48,719
acquisition because of this latest
property we bought. And we're going to

1549
02:12:47,199 --> 02:12:52,800
cooperate. you know, we don't we're not
going to try to hold it up at all

1550
02:12:50,639 --> 02:12:56,239
because the sooner we get that
connection, the sooner our kids can get

1551
02:12:54,560 --> 02:12:58,960
from the school to the ball fields. And
to me, that's a that's a huge benefit.

1552
02:12:58,560 --> 02:13:03,920
» Yeah.
>> To our community.

1553
02:13:01,520 --> 02:13:09,199
» So, isn't the expense for a roundabout
mostly just the land? I mean, you save a

1554
02:13:06,560 --> 02:13:12,719
lot of money on not having stop lights,
which are really expensive.

1555
02:13:10,880 --> 02:13:18,000
» I haven't looked at their budget, so I
you're going to have to ask the county

1556
02:13:15,679 --> 02:13:21,040
the cost. Yes, Jack.
>> You know,

1557
02:13:19,040 --> 02:13:24,719
» I know from from our standpoint as
public record for processes is they went

1558
02:13:23,360 --> 02:13:28,320
and got an appraisal and they said,
"This is what it's worth and this is

1559
02:13:26,079 --> 02:13:33,280
what we'll give you." And we said,
"Sure." You know, we're not going to

1560
02:13:31,040 --> 02:13:37,199
fight them. You know, whatever. We're
we're just like everybody else. You

1561
02:13:34,800 --> 02:13:43,040
know, if they if the land's needed for a
public purpose, that's part of the cost.

1562
02:13:39,679 --> 02:13:46,239
And they'll they'll buy the rightway.
But uh a lot of the rightway they

1563
02:13:44,880 --> 02:13:51,119
already have because they've got County
Road 50. So and and that I don't know

1564
02:13:49,440 --> 02:13:55,760
who actually owns the land behind the
ball fields whether that's whether they

1565
02:13:52,960 --> 02:14:00,800
already own that or not. But there there
is some people in Tabernac who are not

1566
02:13:58,560 --> 02:14:03,760
very happy about this but I'm I'm not
going to get involved in that.

1567
02:14:02,800 --> 02:14:07,440
» The tabernac
>> any other questions?

1568
02:14:05,679 --> 02:14:12,800
I'd be happy to talk to any of you
individually. I'd love your ideas. uh

1569
02:14:10,480 --> 02:14:18,239
you know, we just want to listen and and
it's a big open tent. Uh I've had a lot

1570
02:14:15,040 --> 02:14:21,440
of people in the community that have
development experience who've come

1571
02:14:20,079 --> 02:14:26,719
forward and said, "We'd like to get
involved in this one way or the other,

1572
02:14:23,040 --> 02:14:29,520
either from a you know, well, I'll just
say we've got a lot of help." That's

1573
02:14:28,960 --> 02:14:31,599
good.
>> All right.

1574
02:14:30,239 --> 02:14:36,480
» Thank you. That's great. Thanks.
>> Thank you. Thank you.

1575
02:14:34,239 --> 02:14:44,639
» Oh, here comes the train. About to close
the door. Um, resolution 2026 0803

1576
02:14:41,520 --> 02:14:50,040
on-site distribution extension Excel
public works facility. Paul,

1577
02:14:52,480 --> 02:14:57,520
good evening, mayor, board of trustees.
Paul Johnson, public works director for

1578
02:14:55,360 --> 02:15:02,159
Frasier. Uh, the matter before you is
the on-site distribution extension

1579
02:14:59,920 --> 02:15:07,679
agreement with Excel Energy. So very
similar to what we did with not parks

1580
02:15:04,480 --> 02:15:12,400
electric to get electric run. Uh this is
the um agreement for Excel to bring gas

1581
02:15:10,320 --> 02:15:16,239
to the public works facility. They would
be coming from their line currently in

1582
02:15:14,239 --> 02:15:20,960
Alderbrook and they'd be doing a
railroad bar bringing it down the

1583
02:15:18,639 --> 02:15:25,280
southern property line and then up the
western property line to the uh

1584
02:15:23,599 --> 02:15:29,199
cemetery. Part of their agreement is
they have to run gas all the way across

1585
02:15:26,960 --> 02:15:33,760
the property. So they've uh finally got
that all worked out to us and sent that

1586
02:15:30,960 --> 02:15:36,760
over to us. Um that comes at a cost of
$188,617.

1587
02:15:36,880 --> 02:15:42,159
So the idea is to handle it the same way
we did with Mountain Parks, get the

1588
02:15:40,079 --> 02:15:48,239
infrastructure run, and then once the
coops are issued, we have we can go back

1589
02:15:44,239 --> 02:15:51,360
up to three years to recoup costs. So um
basing this on keeping this project

1590
02:15:49,679 --> 02:15:54,480
moving forward, all the work we've done
over the last two years is just to keep

1591
02:15:52,800 --> 02:15:58,400
this moving forward. So wanted to bring
that to the board for uh managers

1592
02:15:56,880 --> 02:16:04,719
authorizing the manager to be able to
sign that agreement with Excel.

1593
02:16:00,800 --> 02:16:10,960
» So I'm curious on the the bore
is that's part of this 188,617.

1594
02:16:08,800 --> 02:16:14,800
» Yeah. So in the packet where it shows um
the gas man was the title of this.

1595
02:16:13,199 --> 02:16:18,480
» I got the map. I printed out the little
map thing which is cool.

1596
02:16:16,639 --> 02:16:22,159
» So on that one right there it includes a
boar in green, right?

1597
02:16:20,719 --> 02:16:26,560
» Yep. So, I was talking about they're
going to do a boar and then they're

1598
02:16:23,840 --> 02:16:30,159
going to run the they would bury the the
rest of it there, but a boore under the

1599
02:16:28,320 --> 02:16:33,840
railroad at 12 feet deep and they
require their own bore. So, they

1600
02:16:32,240 --> 02:16:36,880
wouldn't uh be able to use any of the
five that were existing

1601
02:16:35,200 --> 02:16:42,319
» in the same easement though.
>> Are they going to get their own new

1602
02:16:38,080 --> 02:16:46,160
easement apart from Grand Park? Um,
back when those boards were put in in

1603
02:16:44,080 --> 02:16:50,319
the early 2000s, Grand Park approached
Excel and Excel says they do their own

1604
02:16:47,920 --> 02:16:53,599
BS so they
>> they put one in right next to the

1605
02:16:51,679 --> 02:17:03,240
existing five that are there that bring
water, sewer, raw water, comms. Um,

1606
02:16:58,319 --> 02:17:03,240
it's another one blanket.

1607
02:17:04,639 --> 02:17:08,120
» Any other questions?

1608
02:17:09,040 --> 02:17:16,719
I'd like to make a motion to approve
resolution 2026803

1609
02:17:14,399 --> 02:17:19,679
on-site distribution extension for Excel
public works.

1610
02:17:18,719 --> 02:17:25,280
» I'll second.
>> Any further discussion? All in favor?

1611
02:17:23,439 --> 02:17:27,599
» Any opposed?
Okay. Passes.

1612
02:17:26,880 --> 02:17:33,920
» Thank you.
>> Thanks, Paul.

1613
02:17:29,679 --> 02:17:41,240
» Quick one. All right. Resolution 2026804
IGA with Gran County Clerk for November

1614
02:17:36,800 --> 02:17:41,240
2026 election. Antonet.

1615
02:17:42,240 --> 02:17:48,319
» Hello board and trustees again. Antinet
McVey town clerk.

1616
02:17:46,559 --> 02:17:52,399
So I wanted to bring the IGA back with
the county to coordinate the election. I

1617
02:17:50,240 --> 02:17:56,880
have done further research um on the
election. Um so the background is the

1618
02:17:55,280 --> 02:18:00,559
voters approved ballot question 2A
November 5th 2024 to move the regular

1619
02:17:59,120 --> 02:18:05,840
municipal election from April to
November and even numbered years. 2026

1620
02:18:03,920 --> 02:18:10,080
will be the first municipal election to
be held in November of this year. Um at

1621
02:18:08,719 --> 02:18:13,920
the last meeting I raised concerns
regarding the Grand County clerks clerk

1622
02:18:12,000 --> 02:18:17,840
and recorder's ability to protect the
integrity of the voters and the clerk's

1623
02:18:16,240 --> 02:18:22,080
ability to understand and follow the
uniform election code of 1992 and the

1624
02:18:20,639 --> 02:18:27,599
Colorado municipal election code of
1965. title one of the Colorado by

1625
02:18:24,559 --> 02:18:31,679
statutes. Um the board discussed um my
ability to administer the 2026 election

1626
02:18:30,000 --> 02:18:36,399
as a standalone election and not
coordinate with Grand County. In further

1627
02:18:34,479 --> 02:18:39,200
researching the option, I spoke with the
county clerk's office regarding the use

1628
02:18:37,840 --> 02:18:43,679
of the ballot box at the Frasier
Municipal or the Frasier Metropolitan

1629
02:18:41,359 --> 02:18:46,880
Recreation Center. I inquired if it
would be possible to simultaneously use

1630
02:18:45,519 --> 02:18:51,439
the ballot box for the county's
administer general election and the

1631
02:18:48,479 --> 02:18:55,760
Frasier municipal election each having
separate ballots. Um they told me they

1632
02:18:54,160 --> 02:18:59,359
spoke with the secretary of state and it
was determined that it was not possible.

1633
02:18:57,599 --> 02:19:03,920
This would raise security issues with
the ballots. One entity receives another

1634
02:19:01,760 --> 02:19:07,120
entity's ballots and I concur with that
concern. I'll be honest, I don't know

1635
02:19:05,679 --> 02:19:10,240
that that's totally accurate the
information that they told me from the

1636
02:19:08,960 --> 02:19:14,960
secretary of state but that's what
they've told me. Um, so it leaves

1637
02:19:12,880 --> 02:19:20,399
Frasier with no ability to use a ballot
box um outside of the available 24 hours

1638
02:19:18,800 --> 02:19:23,200
and and be outside and be available for
people to be able to drop ballots 24

1639
02:19:22,000 --> 02:19:26,319
hours a day.
>> Um, if the board would have a mail

1640
02:19:24,880 --> 02:19:30,000
ballot election, the only place to drop
off a ballot would be here at town hall

1641
02:19:28,559 --> 02:19:35,120
and people could only do it Monday
through Friday during business hours.

1642
02:19:32,639 --> 02:19:40,000
Um, I I would be concerned the limited
days and times to return a ballot. um

1643
02:19:37,920 --> 02:19:44,639
the voters could be disenfranchised or
confused about what to do with their

1644
02:19:42,160 --> 02:19:48,559
ballot. Um the residents of Frasier have
used the ballot box at the recreation

1645
02:19:46,479 --> 02:19:52,080
recreation center for many years and I
know that they're used to dropping

1646
02:19:49,760 --> 02:19:55,760
ballots there. Um and I'm concerned that
Fraser standalone ballot could get the

1647
02:19:54,479 --> 02:19:59,359
ballots could get returned to the
recreation center and they potentially

1648
02:19:57,920 --> 02:20:02,319
don't make their way back to Frasier and
maybe don't even get counted. I would

1649
02:20:00,800 --> 02:20:08,000
hope that wouldn't be the case, but I
just don't know. Um the and another

1650
02:20:05,840 --> 02:20:13,200
option the board could consider would be
to have a polling place election. Um

1651
02:20:11,280 --> 02:20:17,920
this would require residents to vote in
person the day of the election. No

1652
02:20:15,439 --> 02:20:23,200
ballots would be mailed. Um the town of
Frasier hasn't conducted a polling place

1653
02:20:20,000 --> 02:20:26,160
in election in at least 20 years. Um a
polling place election could also

1654
02:20:24,640 --> 02:20:30,640
confuse voters why they receive a
general election ballot with no Fraser

1655
02:20:27,760 --> 02:20:34,960
trustees. and a polling place election I
think could result in lower v voter

1656
02:20:32,399 --> 02:20:38,800
turnout and again additional confusion
with the voters. Yeah, that is what I

1657
02:20:36,640 --> 02:20:42,000
absolutely want to avoid.
>> So I'm recommending that we go ahead and

1658
02:20:40,560 --> 02:20:48,240
coordinate the election with Grand
County and approve resolution 2026804

1659
02:20:46,240 --> 02:20:53,680
um the IGA regarding the conduct and the
administration of the November 3rd um

1660
02:20:50,800 --> 02:20:56,560
2026 election. Um by coordinating the
election the voters would receive one

1661
02:20:55,040 --> 02:21:01,520
ballot with a clear instruction of where
to return it. This could could eliminate

1662
02:20:58,720 --> 02:21:05,600
any confusion for the 20 26 November
election. Would also recommend that

1663
02:21:04,080 --> 02:21:09,760
Frraasier, the town of Frasier research
installing an exterior ballot box here

1664
02:21:07,359 --> 02:21:14,000
at town hall. Um that could be used in
future elections. At this time, there's

1665
02:21:12,240 --> 02:21:18,160
no way to get one in before the November
2026 election of this year, but I think

1666
02:21:16,160 --> 02:21:24,800
that we could potentially do that before
the 2028 election in two years. So, the

1667
02:21:22,720 --> 02:21:28,160
board really has, in my opinion, the two
options. we coordinate with the county

1668
02:21:26,319 --> 02:21:33,040
or we do a polling place election. I
think that those are really the only two

1669
02:21:29,680 --> 02:21:36,240
options that the board has.
>> I'd like to make a motion to approve

1670
02:21:34,720 --> 02:21:42,800
resolution
20260 804 IGA with Grand County Clerk

1671
02:21:39,680 --> 02:21:46,880
for the November 26th election.
>> Second. Is there further discussion on

1672
02:21:45,040 --> 02:21:50,960
this?
All in favor? I

1673
02:21:48,800 --> 02:21:55,359
» thank any opposed. I
>> appreciate your concern. Yeah. Motion

1674
02:21:52,960 --> 02:22:00,640
passes.
All right,

1675
02:21:57,600 --> 02:22:04,800
we're on to updates. Comm uh we got
committee minutes listed. Any updates

1676
02:22:02,800 --> 02:22:10,240
from staff?
>> Uh Paul's got a few for us.

1677
02:22:08,399 --> 02:22:14,960
» So I want to get to give a quick update
on the utility billing. Uh the board had

1678
02:22:12,720 --> 02:22:20,160
requested us to move to monthly building
billing. Um, so our billing software,

1679
02:22:17,359 --> 02:22:24,640
Cassell, uh, in communication to Becky
today, uh, stated that it'd be possible,

1680
02:22:22,800 --> 02:22:30,000
but it's possibly a three-month process
for them to make that switch at a cost

1681
02:22:26,880 --> 02:22:33,200
of4 to $6,000 for that transition. Um,
so just wanted to know if the board

1682
02:22:31,439 --> 02:22:36,560
wanted us to move forward with that. So
they probably would not be able to go

1683
02:22:34,399 --> 02:22:40,319
billing until fourth quarter, maybe
first part of the year, just the way

1684
02:22:38,640 --> 02:22:44,479
that system is set up. It's not extra
work on our end, but the system, I

1685
02:22:42,319 --> 02:22:48,319
guess, is not set up to do that. So, um,
they had a long list of items that would

1686
02:22:46,160 --> 02:22:53,520
be required that we would need to do.
And so, they're say it's 20 to 30 hours,

1687
02:22:51,120 --> 02:22:56,000
they say at $200 an hour. So, don't
really know what it's going to look

1688
02:22:54,560 --> 02:23:00,080
like, but we can still pursue moving to
monthly. Um, just there would be a cost

1689
02:22:58,800 --> 02:23:03,439
involved now where we didn't think there
was one before.

1690
02:23:02,160 --> 02:23:07,359
» That's a one-time cost.
>> Onetime cost. Okay.

1691
02:23:05,600 --> 02:23:10,720
» I think we still move forward with
>> Yeah. forward.

1692
02:23:08,240 --> 02:23:14,479
» Yeah. I think we already decided we're
going to get we're going to have monthly

1693
02:23:12,080 --> 02:23:16,319
billing, right? Yeah. So, okay.
>> Even know there's an expense that be

1694
02:23:16,000 --> 02:23:18,960
attached.
>> Yeah.

1695
02:23:17,200 --> 02:23:22,880
» Yeah. And we'll update communications
with the community to let them know that

1696
02:23:21,120 --> 02:23:26,800
we're moving forward with it, but it
will be delayed. So, they can expect to

1697
02:23:24,560 --> 02:23:32,960
see that likely hopefully beginning of
2027.

1698
02:23:28,560 --> 02:23:38,160
So, when we went to notify the community
about the our increase in rates for

1699
02:23:35,359 --> 02:23:42,399
people that use more than
um

1700
02:23:40,720 --> 02:23:47,280
it might have come through the billing.
I didn't look at my usual app that has

1701
02:23:45,439 --> 02:23:50,399
my billing, but I never got a separate
email that just told me about it.

1702
02:23:50,000 --> 02:23:52,720
» Yeah.
>> Talked about that.

1703
02:23:51,520 --> 02:23:59,439
» Oh, have you?
>> No. And we apologize for that. Becky um

1704
02:23:56,560 --> 02:24:04,000
was looking into the the
gazelle work that she has to do with our

1705
02:24:01,439 --> 02:24:08,560
updating our our contract. So that
mailing has not yet gone out

1706
02:24:06,720 --> 02:24:13,120
» um in terms of because it was supposed
to confirm the monthly billing. So she

1707
02:24:11,040 --> 02:24:18,160
will send something out um and we'll let
people know that the monthly billing has

1708
02:24:15,120 --> 02:24:23,280
been delayed but that the increased fee
structure is in place um based on the

1709
02:24:20,560 --> 02:24:28,319
drought pricing.
>> Okay. So, people really didn't get a

1710
02:24:25,359 --> 02:24:31,439
heads up on the increase in fees for our
drought pricing.

1711
02:24:29,760 --> 02:24:35,520
» They were supposed to, but yeah, we
posted it on social media, but we I

1712
02:24:33,680 --> 02:24:41,040
don't believe it's gone out. So,
>> should we charge it if we haven't

1713
02:24:38,240 --> 02:24:47,040
» notified everybody
and 20 it's been cut 20%. I don't know.

1714
02:24:43,920 --> 02:24:53,200
I just seems like
>> I think notice that

1715
02:24:50,720 --> 02:24:59,040
» you agree with me. Well, I mean, just
that was my objection to the last vote

1716
02:24:55,439 --> 02:25:02,560
we had on this because we didn't have
people don't have visibility to their

1717
02:25:00,640 --> 02:25:07,600
usage. We didn't move the monthly
billing. They weren't notified and now

1718
02:25:05,359 --> 02:25:12,640
we're in a situation
again. I didn't think it was ready ready

1719
02:25:09,439 --> 02:25:16,479
for prime time and it's and it's not.
So, are we backtracking or I mean, I

1720
02:25:14,640 --> 02:25:20,319
don't know. I do feel like that's a
little bit of surprise billing for

1721
02:25:19,359 --> 02:25:24,720
people that
>> don't know. And there's just been

1722
02:25:22,800 --> 02:25:31,120
» a lot of confusion and a lot of
misinformation or no information about

1723
02:25:27,439 --> 02:25:37,439
the change. So,
>> and right now the website just says

1724
02:25:33,600 --> 02:25:42,720
upcoming rate change. It doesn't say.
It says bolo for an email watering

1725
02:25:40,080 --> 02:25:46,960
restrictions upcoming rate change.
>> But you have to go to the website.

1726
02:25:45,520 --> 02:25:52,800
There's no
>> if you got a water scope if I think it's

1727
02:25:49,520 --> 02:25:57,840
already changed to monthly.
You can pull up monthly. I mean think

1728
02:25:54,479 --> 02:26:01,280
for August it's sort of changed but
people haven't been notified especially

1729
02:25:59,359 --> 02:26:07,680
by the rate change I guess is the other
thing.

1730
02:26:03,680 --> 02:26:14,240
» So has that rate change been built into
our program yet that Becky uses for

1731
02:26:10,319 --> 02:26:18,319
billing or not? I'm guessing not.
And if it hasn't been, I don't think we

1732
02:26:16,080 --> 02:26:21,920
should charge people for that rate
change. If the drought sticks, we'll

1733
02:26:20,080 --> 02:26:25,040
make it happen next year and make it
part of our policy and make sure

1734
02:26:23,359 --> 02:26:30,479
everybody gets notified and they know
that this is how it is when we are in

1735
02:26:28,240 --> 02:26:35,920
drought conditions.
>> So Paul, can you update us on usage?

1736
02:26:33,040 --> 02:26:40,720
It'd be interested to know when we made
the change

1737
02:26:37,840 --> 02:26:44,720
» for watering how much of an impact. I
don't have an update other than what I

1738
02:26:42,000 --> 02:26:50,000
did last board meeting where there was a
20% uh reduction in irrigation use. We

1739
02:26:47,359 --> 02:26:56,399
had a massive decrease once we started
the social media campaign.

1740
02:26:53,200 --> 02:27:02,800
So I I would say that I got no notice
whatsoever uh in Kremling. It was social

1741
02:26:59,040 --> 02:27:07,359
media only posted on the website and um
two day a week watering same as what

1742
02:27:04,479 --> 02:27:10,720
we've done. So, unless I I mean, I'm
signed up for the alerts, so I get those

1743
02:27:09,200 --> 02:27:15,680
alerts when they they post something,
but um I was not notified via a separate

1744
02:27:14,080 --> 02:27:18,800
um
email. And Water Scope's always going to

1745
02:27:17,280 --> 02:27:22,800
give you monthly. It'll give you daily
usage. There's no change in Water Scope.

1746
02:27:20,800 --> 02:27:28,280
Now that you have
Watercope, you can see your usages. It's

1747
02:27:24,880 --> 02:27:28,280
not uh

1748
02:27:29,520 --> 02:27:34,920
» We'll continue to pursue getting monthly
billing.

1749
02:27:31,920 --> 02:27:34,920
» Yeah.

1750
02:27:35,520 --> 02:27:40,240
Next update.
>> Can we get something out right away? I

1751
02:27:37,920 --> 02:27:44,479
mean, can we send something out? I mean,
it's it's it's only a week into August,

1752
02:27:42,319 --> 02:27:49,359
but if we're not going to change the
rate, we're going to continue double on

1753
02:27:46,560 --> 02:27:52,720
the rates. We got to let people know
>> and I think we could send something out

1754
02:27:50,960 --> 02:27:56,240
tomorrow. Um, and again, something was
supposed to go out. So, I apologize that

1755
02:27:54,560 --> 02:27:59,359
has not happened. It's been We're kind
of in a situation now where it's been on

1756
02:27:57,760 --> 02:28:04,399
the website and social media and at
picnics. So, some people have seen it,

1757
02:28:01,600 --> 02:28:07,600
but I agree that it should be emailed to
everybody

1758
02:28:05,680 --> 02:28:12,640
» given that we're 5 days in. I would
think people have not moved into that

1759
02:28:09,439 --> 02:28:17,280
second tier yet where that increased
>> rate has happened. Um, I know when I

1760
02:28:15,200 --> 02:28:20,640
talked with Becky today, we wanted to
update the board about the monthly

1761
02:28:19,120 --> 02:28:24,960
billing status and then we're going to
send out a communication letting people

1762
02:28:22,319 --> 02:28:29,520
know that while this was discussed, this
is going to be implemented in 2027.

1763
02:28:27,840 --> 02:28:33,120
Um but that all other drought
restrictions were in effect with that

1764
02:28:31,280 --> 02:28:37,120
billing information.
>> Yeah. And then spelling out what the

1765
02:28:35,359 --> 02:28:42,960
tiers are and what the costs are.
>> Correct. Yeah.

1766
02:28:38,960 --> 02:28:47,760
» I think the Well, you need to get it out
this week or don't charge people.

1767
02:28:46,240 --> 02:28:50,479
» That's kind of my opinion.
>> Yep.

1768
02:28:48,479 --> 02:28:55,200
» The travel restrictions, did that get
mailed out to everybody?

1769
02:28:52,319 --> 02:28:58,960
» I don't remember nothing either.
>> No. Oh, and again, I think I think they

1770
02:28:57,120 --> 02:29:02,080
were waiting to sort out the monthly
billing and thought that that

1771
02:29:00,800 --> 02:29:05,600
communication had gone out, but it
hasn't. So, it's just been through

1772
02:29:03,760 --> 02:29:08,600
social media and picnic and on our
website.

1773
02:29:11,439 --> 02:29:15,280
» Okay. Thank you.
>> And I guess

1774
02:29:13,200 --> 02:29:18,240
» make it so I'm not 100% sure if the
drought restrict the initial drought

1775
02:29:16,800 --> 02:29:22,399
restrictions were supposed to go out if
that went out or not. But if you have

1776
02:29:20,240 --> 02:29:30,160
not seen them with your water bills,
>> I got I didn't get it mailed, but I got

1777
02:29:24,479 --> 02:29:32,640
it in a text with a link
for the travel description,

1778
02:29:31,439 --> 02:29:38,399
» which is a good point. Do you know,
Paul, because I know Lucas has put a lot

1779
02:29:35,520 --> 02:29:42,960
of effort into contacting the people
that are in tier 2 and tier three or

1780
02:29:41,120 --> 02:29:48,080
that are getting close to tier 2 and
tier three. Um my understanding is

1781
02:29:46,000 --> 02:29:51,280
notifying them that they are approaching
those levels where that drought pricing

1782
02:29:50,080 --> 02:29:55,760
does take effect.
>> Yeah. Lucas is calling anybody that's

1783
02:29:53,040 --> 02:30:00,560
using a lot of water. It doesn't he's as
soon as he sees excessive use in a on a

1784
02:29:58,160 --> 02:30:03,920
like he gets if he gets a flag that
there's been a he tries to make those

1785
02:30:02,319 --> 02:30:10,479
phone calls. Um, I know he made a phone
call just this week um to somebody and

1786
02:30:08,800 --> 02:30:13,920
um he said, "It looks like you're using
you have a toilet flapper that is

1787
02:30:12,000 --> 02:30:18,000
leaking constantly." And the property
owner said, "Yeah, that toilet is making

1788
02:30:15,439 --> 02:30:22,479
a lot of noise." And but that's that is
a significant amount of water if that

1789
02:30:20,640 --> 02:30:25,680
when that toilet runs non-stop for 24
hours a day for weeks at a time. So,

1790
02:30:23,920 --> 02:30:30,960
yes, Lucas makes phone calls to try and
make people aware of their water use so

1791
02:30:27,840 --> 02:30:33,520
that nobody ends up in tier 2 without
their knowledge of doing it. Okay.

1792
02:30:32,720 --> 02:30:36,319
» You know,
>> willingly going into those tears.

1793
02:30:35,359 --> 02:30:42,000
» Thank you, Luka.
>> Yeah, he's been super proactive on that

1794
02:30:38,720 --> 02:30:47,200
individual basis, right? Yeah.
>> I had a a friend with a rental that he

1795
02:30:44,720 --> 02:30:50,880
got a call from Lucas and our friend
went and looked and he's like, "Sure

1796
02:30:48,479 --> 02:30:54,000
enough, toilet's leaking." So, same
deal. Like,

1797
02:30:52,080 --> 02:30:57,040
» it's it's impressive. It's working.
>> It's working.

1798
02:30:54,720 --> 02:31:00,479
» So, people that are in jeopardy are
notified.

1799
02:30:58,880 --> 02:31:04,560
» I mean, it's really more irrigation than
it is. Well, it doesn't matter, but it's

1800
02:31:03,359 --> 02:31:10,560
getting notified.
>> Every lot in Grand Park and Rendevous

1801
02:31:07,520 --> 02:31:14,479
gets to irrigate 250 square feet.
>> That's our water right.

1802
02:31:12,240 --> 02:31:17,040
» Well, Rendezvous doesn't irrigate other
than drip systems.

1803
02:31:16,080 --> 02:31:21,760
» Yeah. Nobody has
>> But that's just the water that serves

1804
02:31:18,800 --> 02:31:27,200
that system is is those developments.
Every EQR gets 250 square feet of

1805
02:31:24,640 --> 02:31:33,520
irrigation and the quantity is not even
enough to sustain blueg grass. So, so

1806
02:31:31,200 --> 02:31:37,280
you're kind of in a real interesting
situation where everybody wants blueg

1807
02:31:36,000 --> 02:31:41,120
grass, but our water right doesn't
support it,

1808
02:31:37,920 --> 02:31:46,080
» right? And it's limited to a very a
parking spot basically.

1809
02:31:43,680 --> 02:31:50,720
So, you know, it's one of those things
where I I think unfortunately if you're

1810
02:31:48,319 --> 02:31:57,080
putting in an expensive irrigation
system and putting it in your entire

1811
02:31:52,640 --> 02:31:57,080
yard, it's a poor investment.

1812
02:31:57,520 --> 02:32:07,120
Well, so back to where we are with
notifying people about the drought

1813
02:32:04,479 --> 02:32:11,399
restrictions and now with fees
increasing and all that. I mean,

1814
02:32:11,760 --> 02:32:16,640
what do we do with that?
>> I think we send out an email tomorrow,

1815
02:32:14,880 --> 02:32:21,600
but it does sound like everybody who is
in jeopardy has been notified. So, at

1816
02:32:18,800 --> 02:32:25,600
least, you know,
>> nobody's been is hanging out, right? not

1817
02:32:24,640 --> 02:32:30,000
on notice,
>> right?

1818
02:32:26,960 --> 02:32:34,640
» I mean, I got a phone call, so I need um
>> Okay.

1819
02:32:30,560 --> 02:32:39,280
» I had to lower my my watering, so yeah,
that's good. It's fine.

1820
02:32:36,800 --> 02:32:41,520
» All right. Works for me.
>> Mhm.

1821
02:32:40,720 --> 02:32:44,160
» I have several more.
>> Can get it out.

1822
02:32:43,760 --> 02:32:48,160
» U
>> I'll be looking for my email.

1823
02:32:45,840 --> 02:32:51,040
» Um second one, um just let everybody
know that the filter plant at the

1824
02:32:49,439 --> 02:32:57,040
wastewater treatment plant is turned
back on on Monday. So, they will do uh

1825
02:32:53,840 --> 02:33:00,240
they'll work with Tetrate Tech um and
the supplier to make sure everything's

1826
02:32:58,240 --> 02:33:04,240
running perfectly and then we will
notify Northern Water that we're back

1827
02:33:02,080 --> 02:33:10,000
online and start uh collecting that
revenue stream again. Um Clayton Court

1828
02:33:07,439 --> 02:33:11,840
is scheduled for paving on August 24th.
So,

1829
02:33:10,640 --> 02:33:16,399
» with good weather, it's not the end of
the project, but um if you drive by

1830
02:33:14,000 --> 02:33:21,280
there, you'll see our nice red sidewalks
and our our new rollface curb um with

1831
02:33:19,280 --> 02:33:26,000
the uh JNL property acquisition that
that is going in. So, uh right now we've

1832
02:33:24,160 --> 02:33:28,880
got some subgrade problems which was to
be expected on Clayton Court on

1833
02:33:27,439 --> 02:33:32,399
everything we've seen with the waterline
install, the strong construction.

1834
02:33:30,319 --> 02:33:37,040
There's just a lot of organics in there.
Um so, working on that, but the August

1835
02:33:34,800 --> 02:33:42,720
24th is when paving is scheduled. Um
barring any delays with weather.

1836
02:33:39,760 --> 02:33:47,600
And then uh today actually I received
the uh 60 to 80% design plans for the

1837
02:33:45,680 --> 02:33:51,840
exterior bathroom access here at town
hall. So I'll be reviewing those this

1838
02:33:49,520 --> 02:33:54,640
week and um getting those so we can at
least get that out to to bid and

1839
02:33:53,439 --> 02:33:59,040
hopefully try and get somebody lined up
to get that work done. And then lastly,

1840
02:33:57,280 --> 02:34:02,399
uh I don't know if anybody noticed the
wiring at the bathrooms today, but the

1841
02:34:00,800 --> 02:34:07,439
security cameras are being installed
starting today. So hopefully we'll have

1842
02:34:04,880 --> 02:34:12,880
uh cloud-based security cameras out
there. And then a motion sensors in

1843
02:34:10,000 --> 02:34:16,880
inside the uh all three rooms to make
sure that no there's nobody in there

1844
02:34:14,080 --> 02:34:19,840
after hours.
>> What about during the day?

1845
02:34:18,720 --> 02:34:22,720
» Well, they're unlocked during the day,
so I can't do anything about that.

1846
02:34:21,040 --> 02:34:25,600
» No, I'm thinking the cameras.
>> Well,

1847
02:34:23,280 --> 02:34:28,160
» any any chance of somebody peeping at
the cameras during the day?

1848
02:34:27,600 --> 02:34:33,920
» Looking at
>> if they're shining in the bathrooms.

1849
02:34:29,600 --> 02:34:39,280
» No, there's no cameras in illegal
kind of cameras are outside. Just the

1850
02:34:36,800 --> 02:34:45,680
motion motion detectors inside motion
detectors are inside.

1851
02:34:42,000 --> 02:34:51,439
» Yeah, it was pointing towards the doors.
>> Good. And

1852
02:34:48,240 --> 02:34:58,240
» I do think that we should not invest
into that job until we've addressed our

1853
02:34:54,720 --> 02:35:01,520
budget and see where we're at this year
and our sales tax dollars.

1854
02:35:01,120 --> 02:35:03,200
» I
>> Which job? Because

1855
02:35:02,720 --> 02:35:06,160
» oh
>> the project put

1856
02:35:04,560 --> 02:35:08,880
» doing the bathroom access outside.
>> We did set some funds aside in the

1857
02:35:07,600 --> 02:35:12,160
budget for that but got to make sure
it's enough.

1858
02:35:10,319 --> 02:35:16,359
» Okay. From for this year
>> yes

1859
02:35:12,720 --> 02:35:16,359
» that we have. Okay.

1860
02:35:16,720 --> 02:35:19,680
» That's all my updates.
>> Oh, that's it. Okay.

1861
02:35:18,560 --> 02:35:24,560
» Okay.
>> Board. Any updates?

1862
02:35:22,479 --> 02:35:28,479
» Sarah?
>> We are looking to make an offer to an

1863
02:35:26,640 --> 02:35:33,680
assistant town planner. So hopefully at
our next board meeting we can tell you

1864
02:35:30,080 --> 02:35:39,680
that that individual has accepted. Um
the assistant town manager position is

1865
02:35:36,960 --> 02:35:45,359
posted. Um we've got started getting
some applications in for that. Uh we

1866
02:35:43,040 --> 02:35:51,280
have not yet had anybody pick up
petitions to run for board member seats.

1867
02:35:48,240 --> 02:35:54,720
Oh, we did. Oh, good job. All right. We
have one one person. So, um, board

1868
02:35:53,439 --> 02:35:58,720
members that are running for their
seats, please make sure you pick up your

1869
02:35:57,200 --> 02:36:03,200
petitions. And if there's anyone you
would like to encourage to run, uh,

1870
02:36:01,280 --> 02:36:08,160
please send them our way.
>> When's the deadline

1871
02:36:06,160 --> 02:36:10,000
» to pick them up?
>> Get it back.

1872
02:36:08,720 --> 02:36:11,840
» That's when they're due. Oh, okay.
>> They're available now.

1873
02:36:11,359 --> 02:36:16,319
» Okay.
>> Yeah. Soon.

1874
02:36:14,080 --> 02:36:20,560
» And I just went back through my emails.
There was an email that went out on July

1875
02:36:18,479 --> 02:36:25,280
6th about the mandatory water
restrictions. So that was

1876
02:36:23,600 --> 02:36:29,680
» restrictions just on a rate increase.
>> No, the rate. No, no, the rate.

1877
02:36:26,880 --> 02:36:34,560
» It was after the first board meeting.
>> So, uh, July 6th,

1878
02:36:32,479 --> 02:36:36,800
our bills,
>> our bill came out.

1879
02:36:36,000 --> 02:36:40,160
» Okay.
>> So, it did.

1880
02:36:38,960 --> 02:36:44,960
» That did go out.
>> Okay, that's good.

1881
02:36:41,920 --> 02:36:50,880
» Thank you for for that. And Lewis, I did
figure out or I looked at where that

1882
02:36:47,600 --> 02:36:53,760
confusion around the HOA watering was
coming from that you had brought up at

1883
02:36:52,319 --> 02:36:59,439
the last board meeting. So, I know I
emailed you about this, but just for

1884
02:36:56,160 --> 02:37:05,520
everybody's clarification, um it had
listed commercial buildings, multifamily

1885
02:37:02,560 --> 02:37:11,600
properties, and HOAs as having their own
watering days that was meant to be HOA

1886
02:37:08,720 --> 02:37:16,960
common spaces. Um, so like if there's a
grassy area that is maintained by an

1887
02:37:14,800 --> 02:37:21,359
HOA. So we've cleaned up that language
to specify that. So any single family

1888
02:37:19,439 --> 02:37:23,280
residences should be on odd or even
days.

1889
02:37:21,840 --> 02:37:26,640
» So you can do that. That's the flyer
that went.

1890
02:37:24,160 --> 02:37:31,800
» Yep. And so that's when we've updated
just to say HOA common areas.

1891
02:37:28,319 --> 02:37:31,800
» Right. Thank you.

1892
02:37:33,280 --> 02:37:37,680
» Yeah.
>> Just two quick um updates. I'd like to

1893
02:37:35,840 --> 02:37:39,920
give a shout out to Jeff Lundy who made
these beautiful staff tables for us.

1894
02:37:39,600 --> 02:37:46,640
Yeah.
>> Um he did them here in the workshop. Um

1895
02:37:42,960 --> 02:37:50,319
and then uh Zimmerman, right?
>> Christian

1896
02:37:47,200 --> 02:37:52,640
» Christian received his class C water
license um at the wastewater treatment

1897
02:37:52,240 --> 02:37:54,160
plant.
>> Awesome.

1898
02:37:53,359 --> 02:37:55,439
» Yeah.
>> Hey,

1899
02:37:54,479 --> 02:38:00,080
» nice.
>> Cool.

1900
02:37:57,520 --> 02:38:03,560
» All right. We need to move into
executive session.

1901
02:38:04,640 --> 02:38:10,960
I'd like to make a motion to enter into
executive session for the purposes of

1902
02:38:08,960 --> 02:38:14,640
determining positions relative to
matters that may be subject to

1903
02:38:12,240 --> 02:38:22,280
negotiations, developing strategy for
negotiations, and or instructing NO

1904
02:38:16,800 --> 02:38:22,280
negotiators under CRS section 24-6-424E

1905
02:38:23,120 --> 02:38:30,640
regarding the joint facilities oversight
committee agenda review, including town

1906
02:38:28,080 --> 02:38:34,720
manager Sarah Katanzerite and public
works director Paul

1907
02:38:33,200 --> 02:38:39,280
Second.
>> Any further discussion? All in favor?

1908
02:38:38,080 --> 02:38:42,280
» Any oppose?
>> Okay.

1909
02:38:44,640 --> 02:38:52,600
» Um, this will be recorded.
>> So, but stop.

1910
02:38:49,359 --> 02:38:52,600
» You don't get

1911
02:38:53,280 --> 02:38:56,600
» It's really weird.

1912
02:38:57,680 --> 02:39:00,680
» Yes.

1913
02:39:00,800 --> 02:39:04,479
The week we approved