Hold
on.
» All right.
Good.
» Like to call to order the Town of Frasier Board of Trustees meeting
Wednesday, August 5th, 2026 at 6 PM. Can I have a roll call, please?
» Adam Quickland, >> Peggy Smith, Julie White,
» Lewis Gregory, >> Katie Souls,
» and Brian Cirven. Um, could I have a motion to approve the agenda, please?
» So moved. >> Second.
» Any further discussion? All in favor? I I
» Any opposed? Okay, motion passes. Could I have a motion to accept the consent
agenda which includes the minutes for July 2020, sorry, July 22nd, 2026 and
resolution 2026 0801 approving revocable license agreement
with Rendev Community Association. >> So moved.
» I'll second. >> Further discussion?
All in favor? >> I.
» Any opposed? Okay. Motion carries. All right, we are
moving on to open forum. This is for business not on the agenda. Anyone in
the room that would like to approach the board to uh talk about a topic that is
not on the agenda, feel free to approach the podium or if you're online, raise
your hand.
All right, seeing none, we'll move on to discussion and possible action regarding
» resolution 2026
0805 accepting the resignation of a trustee
and filling the vacancy. Antonette,
» mayor, board, and trustees, Antonet McVey, town clerk. Um, so tonight we're
entertaining a resolution 2026805 to fill the vacancy from the resignation
of Katie Fischer um and the board. So Katie Fischer resigned on July 15th,
2026 and that was effective the same date that she resigned. Um and the
statutes do allow the board of trustees to appoint somebody. Colorado uh revised
statutes 31 314 3031. Board of trustees has a power by
appointment to fill vacancies in the board or any other office and the person
so appointed shall hold this office until the next regular election or until
his successor is elected. Our next regular election is November 3rd, 2026.
The board also has the power to fill the vacancy in the board and any other
elective office of the town by ordering an election to fill the vacancy until
the next regular election or until the successor has been elected and has
complied with the section CRS 3441. Um, so this resolution officially
accepts the resignation of Katie Fiser. Um, and in your packet, we only received
one application, which was Kenneth Jensen. Um, he is here this evening. If
you guys would like to ask him any questions um before considering um who
you would like to appoint to the board this evening,
» I guess I'm not going to sneeze. All right. Um All right. Um well, great. I I
think it would be great to hear from Ken a little bit if you want to
» tell about yourself, introduce yourself to the community.
Good evening. Uh, I'm excited to be on board and uh, I think I can bring a lot
of experience. Um, I grew up in a small town in Montana, so I'm used to the, uh,
small town atmosphere and, uh, helping out communities and, um, former business
owner, former banker, um, kind of a finance guy.
So, um, think I can, uh, be a good addition. You guys like,
» great. You guys have questions? >> Tell us about and everyone who's
listening, your current involvement within the Fraser Valley community.
» So, I am the vice chair in the Fraser River Housing Partnership. Fraser River
Valley Partnership. It's always a mouthful. Um, been with them since its
inception. and uh been working on obviously
supporting St. Louis Landing, New Village, um you know, Habitat for
Humanity development that's going to take place up in Grandi. um you know
very interested in making sure that we do have what I call attainable housing
in this county and uh we are currently undergoing a housing assessment for the
whole county and uh we're going to try to get more data on what is really
needed in this county and so I've been involved in that. I'm also
involved in an impact fund with Graham Foundation. Um and uh I've enjoyed being
involved in that. And then uh outside of that um just been currently retired
working on my house. >> I just finished a huge project mitigated
my whole yard which is about acre and a half. So um I just finished that
yesterday. So this is time. >> [laughter]
» Congratulations. >> That's great.
» Okay. Thank you. >> You bet.
» Any other questions? >> No. Thanks, Ken.
» I'd like to make a motion to appoint uh Ken to the board.
» Well, we have an official resolution on the table.
» 20 26805 accepting. That was the resol. No.
» Yeah. So, it both accepts the resignation of Katie Fischer and then
there's a blank that says the board of points.
» Okay. And filling the vacancy with Ken Jensen.
» Second. >> Any further discussion? All in favor?
» I opposed. Right. Welcome, Ken. >> Hey.
» All right. Thank you. >> We're scar you in right now.
Ken, if you want to sit down >> official.
» Um, would you like to raise your hand or pajar?
» Um, and just repeat after me. I Kenneth Jensen
» I Kenneth Jensen >> do solemnly affirm
» do solemnly affirm >> that I will support the Constitution of
the United States >> that I'll support Constitution of the
United States >> and the state of Colorado
» and the state of Colorado >> the Frasier Town Code
» the Frasier Town Code >> and faithfully perform the duties of the
office >> and faithfully perform the duties of the
office >> of town Frasier Town Trustee upon which
I am about to enter >> of Frasier Town Trusted of which I am
about Congratulations. >> Thank you.
» Welcome aboard. >> Awesome.
» Thank you. >> Yeah.
» Yeah. Oh, I think it's I think it's Matt Ginsburg. It's just
» kind of freaking out. >> I'm sorry. Annie Ginsburg, could you
please stop raising your hand and putting it down? Thank you.
» It's probably a cat on the keyboard.
Um, okay. Moving on to resolution 2026802
approving Grand Kids Learning Center lease for St. Louis Early Childhood
Education Center. >> Sarah,
» uh, good evening board. Uh, Sarah Katanite, town manager. So, before we
jump into the lease, we do have grandkids with us um to give just kind
of an update on what's been going on with their organization. Um, they've
also put uh together their budget with their actuals and kind of their
projected budget for the buildout of St. Louis. So, we're going to walk through
that. The board's welcome to ask them any questions and then we can go through
the terms of the lease. Um, if the board is comfortable with the lease as is or
there's kind of minor revisions, we can make those and approve them. If we need
to bring the lease back after further discussion, we can do that as well. Um,
but I would like to invite Anya Cliss, who is the new executive director of
Grandids and her team to go ahead and kind of let you know what's been going
on with Grandids. >> All right. Yeah,
» thanks. Yeah, come on up. >> And I'll just throw in as well before
any gets started that we also have Megan Liddine with us this evening um who's
been working with grandkids and has come to just kind of answer any questions she
might be able to. >> Well, hi everybody. Thanks for having us
here today. My name is Ana Kliss. I'm the executive director of Grand Kids
Learning Center as of February this year. Um, a little history about myself
with the organization. I've been with Grand Kids since 2020. Um, sort of as an
assistant teacher, stepped um into the site director role um not too long after
that. Worked in that role for about five and a half years or so. um and then am
now the executive director and excited to be sharing um where we're at within
the organization and where we hope to go. Um I won't read you our our little
one pager. It was in your your packet. Hopefully you had a chance to to review
that. Um but a little bit about where we are at right now. We operate out of
three locations. Um the red building, which you're familiar with. I'm sure you
hear the kids running and screaming each and every day. Um, we operate out of a
Witi Meadows complex building that houses three classrooms. Um, and then
our most recent addition is our Graanby location which opened in February of
2024. Um, across the board, we currently have capacity for 96 licensed child care
spots. Um, we are currently serving 64 local families. Um, our capacity can
serve 16 infants, 16 toddlers, 19 um, older toddlers, we call them junior
preschoolers, that's that two-year-old um, age group. And then 42 preschool age
children. Um, our board of directors, which I have two of them here with me
today, Bethany Lashley, our treasurer, and Rebecca Redell, our board president.
Um, our board has really prioritized staff retention. Um, several years ago,
that was a huge detriment to the organization. we were having to close
classrooms. Um really struggling to stay afloat. At one point we weren't sure if
we were going to have to close a whole building. Um so the board realized that
was going to be their ultimate priority. Shifted the focus there to
sustainability and since then have um kind of made it through each school year
with an 85% staff retention rate. Um which in the early childhood field
that's pretty huge. Um I would say that retention rate is a little bit higher
with um those in leadership roles as well. Um, and right now we're averaging
at about 30 to 35 full-time employees. Um, right now we hold on Eastern Graham
County um, 100% of community based infant slots. 35% of our families
qualify for income based tuition assistance, but 51% of our families are
receiving tuition discounts um, from state programs and then internal
scholarships, too. That's a little bit about where our
organization is at. Um, and we are hoping that we can move into St. Louis
to continue to serve the greater Grand County community. Um, especially in the
Frasier, Winter Park, Tavern area. We think that's going to be where child
care is currently really needed. uh that would not only double our license
capacity in our Frraasier educational campus, but it would also um bring about
15 new teaching positions um available in the community um and gives us
opportunities for school age um summer programs, opportunities for after school
care for local families. It really opens the door for grandkids.
It's >> great. Thank you.
Bethany, did you want to walk through some of the numbers?
So, Bethany Lashley, treasurer. Um, been on the board for two years now, heading
into three. Um, we have worked a ton on our budget recently. So for those of
you, it was about a year ago that saw what we were looking at. Um, lot of
negative numbers. Um, some questioning of grants and how we were presenting
those revenues and those income streams. So if you looked at this packet, you may
have been surprised to see our positive numbers that were coming up. And a big
part of that was thanks to Anya and our staff as she came on board going through
our expenses, really tightening some things up for us, renegotiating some
contracts with some of the members in the community. Um, great great things
that have happened. Um, including a new roof on our red building. If you guys
have seen that, that has been amazing. Um, who roofing company, right? Roofing
company donated that to us. And so our team has really been strong at reaching
out more >> now and getting that community
involvement which has been great. Um the other part of that was going through and
really looking at what our grants looked like over the last three years and
trying to put that commitment to paper. So we were always very conservative
before worried about will that money really come in being that it's a grant
and now we've really taken that focus of yes here's what we have gotten here's
what's been committed to us and then also realizing that that could fluctuate
within the county over the next year and us being able to keep a better finger on
where those pools of money are and shift if we need to. So, we're starting at a
base of 350,000 of that we are willing as an
organization to work on getting for grants to help offset that tuition is
that's coming in. And with that, we're looking at starting a positive cash
flow. And we also think that's realistic. This is a lot of time and
effort we put into this and we think that's great. So, um, if you looked at
our budget to actuals, you can see that starting to happen already and see that
we're up at 200, I know that one, pardon me, 250,000,
a little more that we have already secured this year, which has been
wonderful. So, part of that town of Frasier as well. So, thank you guys. Um,
going into our budget, so this is in your packet. Um, so our projections for
2027 when we would enter St. Louising um up through 2032. Um you can see overall
for our facilities we have been able to get into a positive role with those. Um
this includes our teachers being at a salary that we are comfortable with that
it's actually getting them to that livable wage. I know we have a teacher
extension, but I don't remember that that exact name um that's coming in that
will actually help us get there as well, but we are able to calculate those
payroll and those benefits. Um still coming in at about 85% of our total
expenses. Um but our teachers will be where we want them. So again, if you
remember our previous budgets, we had where we were at and also where we
wanted to be and there was a huge disconnect in getting our teachers where
they wanted to be. And now we are there which is
» great >> very exciting.
» Um I also did a breakout here for St. Louis itself because I know that was
really important for you guys to see the impact of just that building on
grandkids as a whole. Um some of the numbers like our tuition um are solid
numbers that would be coming in. Some of them are a percentage base of um income
that's coming in. So some of our expenses, how we have them broken out is
based on the income that St. Louis Landing would be bringing in versus the
whole organization. So those were our assumptions there to try and get us to
the correct um number. Um you can see obviously 2027 and 2028 is a little bit
lower, but that's as we're transitioning, as we're getting into the
building. um that accounts for us having a lease still over in Wedi that we're
then going to have to get out of and we will do our best to minimize that cost
once we know exactly when we're in that building. Um but all of that is
accounted for and actually under this budget for St. Louis. So you can see
that effect um scaling as we scale up through the kids um you can see that we
are actually doing better. I know that was another big question previously is
as we scale up and get more kids are we financially doing better or worse and
reflected in here we are doing significantly better which is great as
well. Um another assumption under there was the rent for
the building which I know this will come up with you guys. So that first three
years we did account for that $1,000 a year rent um but then I scaled it up to
$24,000 a year. starting in 2020. So, we are looking at being able to accommodate
more rent and looking at that expense and still doing well.
Um, all right. Anything else [laughter] at the moment?
» Yeah. Hey, I was just curious, what do what do you pay for rent currently?
» Hold on. You might have top of your head. If not, I can.
» Monthly, we have been paying about 3,200.
» This is just that are >> Yeah. Treasure, right?
» Yeah. However, it did increase or it will increase um for August.
» Oh, is this at over at WP? >> That is correct.
» Yeah. >> But it um it averages about 36,000
annually. >> 36,000.
And your expenses, I don't see a separate line item for rent. You just
have it all bunched together under operating expenses.
um just for the summary. I think that's how that's presented, but we definitely
have it broken out within our expenses and financials.
So, if we need to do further breakdowns, have to.
» Yeah.
» Um and I guess that's another point we haven't made too is um financial
transparency across all of this. Um, we're working on getting reviewed
statements, you know, for 2025 and being able to produce these for you as needed.
Um, right out of our QuickBooks program, like here's our actual, here's our
budget, and being able to give you guys that transparency that you need on an
ongoing basis. And so whether that review is quarterly,
annually, what whatever it is that we decide within the lease and the
perspective, >> no, this is much better than last year.
And appreciate you filling in some of the blanks. We obviously want you to be
successful. So, um, do the numbers and making sure that you're financially
viable, right? >> Absolutely.
» Yay. >> Yeah,
» you can you can see the jump from 2029 to 2030 um uh in that operating expenses
for the St. Louis dining specifically. So, yeah, it's not broken out in this,
but it's obviously accounted for. Well, the other issue is around the the
buildout. So, you're spending a lot of money in 2027 on building out the
facility and then in 2028
there are no revenues coming. I assume you're going to still get grants and be
able to supplement that. >> Absolutely.
» Okay.
» And Lewis, they do correct me if I mistake this. They do have their
buildout right now separated out from their larger budget. So if you scroll
down to the last page, that's a budget specific to their their buildout.
» Yeah. No, that's what I'm looking at. >> Okay, great.
» But it's a negative number. [clears throat] They have a gap there
that they need to fill. >> Yes.
» Yep. >> And we'll be talking about that in a
minute here. Yeah. Okay. Thank you. Thanks.
So, also in your packet is a staff briefing and then a draft lease um that
we've worked on with grandkids. Uh and then a resolution if you wanted to move
forward with approving that lease. Um as we [clears throat] previously talked
about the way it's currently presented, uh it would be starting out at $1,000
per year. Um we've written it as a 15-year term. Um but there is the option
to exit that lease early if need be. Uh it is written such that the rent would
not remain fixed and every 3 years could be revisited by the board and could be
raised or decreased at the discretion of the board. Obviously grandkids would
have the opportunity to you know negotiate that and decide if they wanted
to stay with the lease or not. We wanted to have some guard rails in there. Um,
not knowing what the future holds, but wanting some protections for grandkids.
Um, and so right now it is listed that that maximum rent rate would not exceed
24,000 per year. Um, both that starting lease and that maximum lease rate is
something that the board can discuss. Um, but those are the starting points
that are included in the current draft. Um, I looked at a number of leases by
other communities and tried to build in some of the safeguards that they had
when they had leases with early childhood education facilities. Um, so
there is some reporting requirements and just kind of ground rules around
communication to make sure that town staff and the board are not
micromanaging their operations and allowing them to to do their daily
operations, but that we are in the loop and making sure that they are keeping up
with all of their licensing standards, quality care. Um, if there is any
incidences where the state would need to be involved that they would have to
notify us so we'd have that heads up. um it does require them to pay kind of
their general utility cost, insurance costs, things like that. Um we'll talk
in a minute here about that buildout and if the board wants to support that
through the new market tax credits and some of those funds that are coming in,
but they are ultimately responsible for that buildout and ongoing maintenance.
Um, I think those are a lot of kind of the
key terms, but I'm happy to talk through any other aspects of the lease or any
questions that the board might have. >> Did you get the insurance requirements
kind of from these other leases? Yeah, we kind of started with a standard
commercial lease and then uh the pieces that I pulled from other town leases
have more to do with the specifics of a child care center operating there. Um
the other piece we talked about as well is if grandkids did want to allow
somebody else to use that space um for something outside of standard kind of
grandkids operations that they would request permission from the town for
that and we could look at that if that was anything where somebody was being
you know charged to provide additional child care services outside of grandkids
daily operations. >> So we allow them to subleasase the uh
space. they would have to request our permission.
» So relative to the lease, basically grandkids has a 60 day out of the lease
any any time. >> The way it is currently written,
um it is that both grandkids and the town may terminate the lease before
expiration by providing the required notice.
And so yeah, it is 60 days. But again, that is something that we could we could
change if we wanted to.
» What is their current current out? They have they have to pay what is it through
2027? Are they stuck in their lease for
another year? >> 15 years. Atwood PD
until the end of July of >> So you're on the hook for $36,000 for
next year. >> Yeah, it's built into our budget.
Well, and they the hope is that they can get some early access once we have a
temporary co for that space and hopefully get in there roughly by the
end of the year to start doing some of that grandkids buildout and working on
licensing requirements because that will take a while. Um, the earliest we're
anticipating them moving in to actually operate would be March. Um, and so
really it's the months of March through July or August that that they'd have
that overlap.
I mean, the only other question I have, and we we've talked about this before,
is, you know, I don't think the town of Faser could be subsidizing
the bulk of child care in the community or in the valley without other people,
you know, paying their fair share. And I don't know how you aortion that. You
know, Winter Park's kicking in $40,000, right? Graanby eight, Grand Lake six,
but I don't know. You know, we're providing space for $1,000 a year, which
is a real that's a lot. I mean, that's almost probably 40,000 there, and we're
kicking in another 30,000. are we subsidizing child care for the rest of
the valley? You know, and I don't know how you
discern that, but that that would be the only other thing I would want us to
think through is like should we be charging these other, you know,
municipalities or the county or um subsidizing child care?
» So, um I'm going to let Megan jump up because I see her jumping up. Um, I was
going to add uh this childc care stipened program um that Winter Park has
worked with Megan to put together. Winter Park and the county are putting
in larger amounts and we are putting in a smaller amount in part in recognition
of the fact that we are contributing so much through that building and that
lease. But I think that is a fair a fair question.
» Absolutely. Uh Megan Liddine, a director of the Grand Foundation, thank you for
letting me I guess give input context. um multiple funding areas in child care
right now. The 1A community priorities fund, our priority, every pun intended,
um last year and this year is child care. And so that is an eligible grant
opportunity for grandkids to apply to as well. uh the first round fall of 2025
they received a $87,000 grant and this last uh spring cycle they received
$45,110 I think is what you have and that was
for a new van because they don't have a van over at the Graanby location. Um
with that being said the Grand County Childare Strategic Investment Fund
that's a mouthful let me talk about that. Um
» that's going to be a for teacher retention. So it's start actually
starting right now. I'm just waiting need a signature um on theou from all
the funding partners but um just waiting for that and then we'll be looking at
the second quarter. So we're going to go retroactively look at the second quarter
of all the staff that has spent more than 60% of their time in the classroom
and give a grant to grandkids and other childcare entities that are nonprofits
only. That money is going to be coming from the county. Town of Winter uh
County is $100,000. Town of Winter Park is $100,000. Grand Foundation's put in
$50,000. And um you guys voted last month to put in $25,000. So, but with
that being said, as you alluded to, you're doing your your share and then
some. So there are other opportunities along with all the block grants that the
towns do provide as well as grant foundation dollars that um grandkids can
apply to and childcare is one of those very um myopic priorities not only with
the grant foundation but with all the municipalities and the county. So there
are other dollars that will be coming in to grandkids as an entity. And then I
just want to add that they have done a tremendous job with their financials.
You guys, I've my background is finance and I can tell you all the things
they've done is just amazing and I really want you to know that.
» How girls I can see I can see this. This is much better than what we saw before.
But you were all very supportive of child
care. At least I am. Um it's it's a central priority for us. But again, I
don't think we want to subsidize the county necessarily. And I don't know if
you can break down um you know where people live the the
ones that you're you know that are in child care now where they're coming from
are the bulk of them from Frasier or you know uh county or where I mean what
are we >> you know I could not stand up here and
give you those numbers honestly I know I could look at Grand Beginnings and the
data that they've put together and come back to you with that. um they've been
instrumental throughout all the processes of the funding mechanisms as
well as with um grandkids as well. Um I do know that people travel from all over
to bring their kids to the open slots that the waiting lists are quite large
and so there are kids or children, excuse me, I'm not supposed to kids uh
children from Grand Lake Graanby that are attending grandkids as well. So I I
can come back to with those numbers, but I would say that, you know, Winter Park
and Frasier and Tavern have a lot of children and the EEC right now is just
for Winter Park employees. And so majority between the um red building, I
guess you call it the learning center, >> red school. And uh over at Wedi, you
know, that's going to be holding a majority of a lot of the kids around
here. Nate, it's a little bit akin to our
discussion around the bus service. No, and I think we feel like everybody
should pay their fair share. We don't want to, you know, be on the hook to
subsidize anyway.
» Well, when you look at when you look at that buildout and you look at the
projected loss, I 198,000 I think is what I saw. And you know, that's where
there are other granting opportunities that other entities can kick in, right,
to help with the buildouts and those type of things. Or if there's other
opportunities there, there's additional grant dollars that grandkids can apply
for. So, I think monies are going to come from other avenues for other things
to keep sustainable. And over time, you know, whatever the
town decides to do, it's it's a worthwhile investment. Not that you
don't know this. I know you all know this. um for your residents, for your
employees and everything. And I do think we need to also be
cognizant that there's a lot of employees that are at this end of the
valley that would love to live in Frasier but can't afford it, but they
work here. They spend their money here and so it's all part of the community.
I'll add as well, I know Graanby Playdates is in a building that's owned
by the town of Frraasier and I believe they pay a minuscule amount in rent.
» I do believe they pay about $10 a year. I don't know if it changed for 2026, but
I know that was 2025's number. Nice. >> Yeah. And that's serving a much smaller
number of kids than St. Louis is. Um the early childhood education center at the
resort is obviously subsidized heavily by the resort. Um, Eternal Hills
preschool program is subsidized by the church. So, most of the buildings in the
county, and I don't think this is uncommon, are receiving some level of
subsidy from either the municipality or another another entity.
» The West Grand School District subsidizes the space for the West Grand
Early Childhood Center as well as Crumbling Preschool, too. They're
located in their schools.
» There are free winter parking that occupy
that their children are in the grandkid center space because there's no
space. >> They have so we also have people go the
other way just to get that child care. >> I'm a little less concerned about the
residency of the child and more concerned about the income and the
subsidy of the parents. And it sounds like you guys have uh turned a corner on
that where and correct me if I'm wrong, but it used
to be a fully subsidized program across the board or and now it's income based
or >> are you talking tuition?
» Tuition. Yes. Yes. >> That that speak to that. But the tuition
assistance program is run out of grand beginnings and then it's based on
enrollment I believe per location and then each entity looks at applications
based on the spreadsheet formulas based on that income level because some will
apply or be eligible for UPK dollars, universal prek dollars. Some will be
eligible for CCAP dollar it goes up to 500 of federal poverty level 500%. Yeah.
So >> that's great.
I do know that that's that's a going to be a focus in the future for the grand
county childcare strategic investment fund
topic in there >> that that
» we left it uh pretty ambiguous right now we're just focusing on teacher retention
but know that tuition assistance but again Grand Beginnings has this program
so we would just be helping and supplementing
» yeah that strategic plan I thought that was the the one of the four that you
guys were going to leave to the side, but it sounded like you were almost
implementing some things already. >> So,
» it it's going to be a need and as you add child care spots, tuition assistance
[clears throat] is only going to go up. So, that's again uh community priorities
fund and the other funding mechanisms will definitely be up.
I also see a benefit of um having that daycare in our buildings and our our
workforce housing and helping us fill those units
because there'll be people that probably would love to live there where they can
just walk their kids downstairs and then catch the bus to work or walk to work.
And that's a big benefit. We got to fill it up. can start paying for it now.
» That will help us attract employees as well.
» Yeah, absolutely. >> Hey, if
» okay, >> if Fraser ends up paying a little bit
more for the first few years, so be it. You know, it's kind of like when you go
to an auction and they just do the paddle raise. You know, we're the ones
that said we'll drop a million bucks. Who else is going to join us? Maybe
somebody else will follow.
Sarah, what did the 60-day notice before termination
play? >> I mean, it just seems like not a long
time frame for us to find a new tenant. >> Yeah.
[laughter]
» Um, so I I worked with Kent's office to put
this lease together. Um, that said, I think the 60 days was really added in
more as an out for the town, wanting the board to feel more comfortable signing
on to a longer lease that uh, you know, if for whatever reason the
leadership at Grandid was to change, we didn't feel like they were offering
quality child care, whatever it may be, that there would be some options. Um,
but I agree it's not very long. I think we could definitely change that and
provide more notice to be required. >> Get a tenant in there in 60 days.
» Right. And for >> it's a bit empty for
» I mean that's a big space. What? 8,000 square feet.
» Yeah. >> And there's already a ton of
» commercial real estate that's sitting empty.
» Yep. >> Well, so keep in mind it's a $1,000
lease. I don't know if they're paying monthly for that $1,000 or not, but it
doesn't really matter. It I I agree with Sarah. The 60 days is more for us. If
something drastic occurred with grandkids and we just said we we can't
be part of this anymore, then we give them 60 days to move out
» and we find another child care provider to move in.
» Yeah. Well, you guys that would that's crazy though. Let's say 6 months
» on 60 days >> and do 180 days
» something. Yeah. I mean, and I doubt that we'll even use it, but to make it
even the least bit realistic, 60 days is not realistic. If we did say you're out
of there, it's like, oh, yeah, right. Okay.
» Well, you'll probably we'll leave them and leave it as is. So,
» well, if they default and they go through three defaults and they don't
pay their rent, which would be hard for them not to do, but
» yeah, >> there's a provision in there where we
would give them 30 days at that point where they didn't pay. And so, everybody
out. >> As quickly,
» can you bring mic a little closer for me?
» You don't know this. >> There's a provision there how that all
works out. If we wanted to get them out, it's like a 30-day, you know, after some
steps, there's a 30-day out. So, >> okay. So, that's
» But I do agree. I think I think 180 days makes more sense from a lease
perspective. Okay. Yeah. >> I mean, if we kick them out in 30 days,
where are they going to go? I mean, they're not going to be able to find a
spot. for their operations. I think I think
six months sounds all reasonable. >> Okay.
» I mean, I don't think we're going to want to kick them out, but you know,
» say 180 days. >> Okay. Can I make a motion?
» Sure. I want to make a motion to approve resolution 20206082
approving Grand Kids Grand Kids Learning Center lease with the change of um
notice for termination to be 180 days from 60 days.
» I'll second. >> Further discussion? All in favor? Hi.
» Hi. >> All right.
» Opposed. All right. Motion passes.
» Okay. Congrats. >> Point that I wanted to make. It really
it wasn't financial, but uh we as a group
several months ago talked about possibly naming the playground after Eileen
Waldo. And uh I don't know if you were even part of that or even knew that we
had that discussion, but it was kind of a concept of where's Waldo, which was
her tagline when she ran for the board. So, I thought I'd mention that. And if
you guys the mural festival's coming up and you might find some cute artist that
does where where's Walder. So, >> Waldo's on tucked away.
» That is that's a cute idea. All right.
» So, I will say the next item up is related in part to a discussion around
grandkids buildout and some funding uh around that. So we will circle back to
that. >> Okay. So that is St. Louis landing
financing update and new market tax credit overview. Matt NSB clerk.
» Matt, I don't see you online, but Monica, we've made you a co-host.
» Hi everyone. Can you see me and hear me? Okay.
» You're a little quiet. >> I'm a little quiet. Okay, you can up
your volume. >> Um,
» and while you're working on that, Monica, just to give a little bit of
context. Um, so new market tax credits have been part of the overall kind of
financial capital stack for St. Louis Landing for a while now. Um, we wanted
to close on the bonds before, uh, diving full on into the complexities
of both the new market tax credits and the middle- inome housing tax credits
that we talked about at the last board meeting. Um, there also is kind of less
risk to investors as they come in kind of later. Um, but I don't think we've
actually really given an overview of what the new market tax credits are to
the board and how they work. Um, I find them mind-bogglingly
complex and convoluted. So, we're going to try not to get into too much of the
weeds, but though maybe that's just me. Um, but Monica and her group have been
lovely to work with. And we invited them to kind of come and try to give an
overview of what they look like. And then, as I kind of referenced earlier,
um, this money, as Monica will talk about, is specific to building E. Um,
and so the money has to kind of go into building E and there is some opportunity
to potentially use those funds towards help with the grandkids buildout space.
Um, so Monica can walk through that and then I wanted Matt to kind of share uh
again just how this fits into that overall capital stack and what that
looks like looks like in terms of potential buildout dollars.
» Okay, can you all hear me better? >> Yes.
» Y >> Okay. Um, please let me know if that
changes. Um, and thank you Sarah for that lovely introduction. Um, I love new
market tax credit financing and I am thrilled to share it with you all today,
but it is complex [laughter] and Sarah is not wrong to to recognize
that. I live in this world every day. So, I'm going to screen share the
presentation and then I'm going to go into
presentation mode. Can everyone see that?
Yes. >> Fantastic. And you are all now very tiny
on my screen and I really want to make this a conversation so that you all can
get what you need out of this presentation. So, please do not um
hesitate to interrupt me. Um you know, I try to pay attention if those little
like raise hand things go up, but I really am not offended. if you want to
kind of break in, I'll try to pause um and and make this a dialogue where you
all can get the information that you're looking for. So, uh today, real quickly,
my goal is to introduce the New Markets Tax Credit Program, often abbreviated
NMTC, how new market tax credit financing
works, the opportunity that it represents for the the building E and
St. Louising the roles of the sponsor and the financing partners um kind of
the key points around the structuring and then a representative timeline.
There is more detail in the appendex um but again this is meant to be a highle
uh introduction. I am more than happy to geek out with anybody on the details of
this financing structure. I think it is very cool and creative public private
partnership um at another time if if somebody is really interested in
learning more. Um so please um feel free to reach out to me.
All right. Shall we dive in? So New Markets Tax Credit Program has been
around since 2000. It's administered by a part of the US Treasury's Community
Development Financial Institution Fund. It is now a permanent part of the tax
code and it was created to stimulate investment in low-income communities and
underserved communities and does in fact prioritize what they term non-metro
communities such as Frasier. Um a project it is a census trackbased uh
program. So the subsidy is ava is available to projects that are located
in qualified severely distressed census tracks. You can see here in this map and
the purple that your project is in fact in the purple census tract which is um
the new market tax credit uh level of um severely distress that um draws the
opportunity uh for the project. Um new markets tax credits been used by
many organizations. I've been working in this um SPC Clark companies what maybe I
should have introduced uh us first. Uh we're consultants out of Denver,
Colorado. We work nationally in our new markets tax credit practice. Um I've
been uh working in the firm now for about uh 12 no closer to 15 years. And
um SB Clark in the name of the firm is actually my dad, Steve Clark. He's
mostly retired, walks the dog, hangs out with my mom and we have the privilege of
working with both New Markets Tax Credits, which is supporting, you know,
high impact commercial projects. >> [clears throat]
» You can also fund some housing like we're offering suggesting doing in
building E. And then my twin sister on the other side of our firm um works with
low-income housing tax credits and middle- inome housing tax credits. And
you might have met her, Laura Clark, um during the middle-income housing tax
credit conversations. So um that's our firm. These are a number of um
organizations I've been honored to work with over my career here. Um and and I
do think you can find a lot of excitements in new market tax credits.
My appro or suggestion is to think of it as a public private partnership. It's
the government's way of bringing private investment into high impact uh community
development activities. And in this case um building E which includes both
affordable housing for workforce development as well as importantly the
daycare. And you do have to have a certain percentage of commercial
activity. So the daycare portion or the early childhood education portion is an
essential piece. And the idea behind the new markets tax
credit program is when there's a market failure such as it's hard to do
development in uh small rural communities or lowincome communities,
the government offered a tax credit to incentivize private investors. In this
case, a group called Capital One, Capital One Bank. you may know them from
your credit card. Um, who is going to bring cash or um would bring cash to the
St. Louis landing project and the project doesn't have to pay them back
because Capital One is going to collect their return in the form of a tax credit
on their income taxes over a 7-year compliance period. So the private equity
comes in and they're paid back through the government subsidy of a tax credit
and you all benefit from that tax credit equity. So the opportunity for building
E is to leverage the costs of the new market tax credit uh financing. So new
market tax credits I think of it as a funnel. kind of leverage the costs
through the public private partnership and that creates, if you will, the
matching grant that is the subsidy of the new market tax credit and we call it
the net benefit because it is the net of all the fees and costs associated with
that public private partnership. The net benefit that's built into the project
that you don't have to pay back because the tax credit pays the investor back is
approximately $3 million. And that's an approximate number because until we get
to closing, there's fees and legal fees and other things that move slightly. But
um at this point um based on the being able to have attracted the subsidy from
two groups, Colorado Growth and Revitalization Fund, which is a part of
Chaffa, which is Colorado Housing and Finance Authority. Um so their uh new
markets tax credit entity is a group called Colorado Growth and
Revitalization Fund and they've promised to bring a portion of subsidy. And then
another group which is enterprise community development. They go by ESSIC
or ESIC which stands for um enterprise social impact um corporation but
enterprise you may have heard of them. They're also um very active in the
affordable housing space. So, two groups that are um groups that have been in new
markets tax credit financing for a long time and they're bringing the right to
the subsidy. So, we call that new market tax credit allocation. That's the
authority from the US government that these groups won and they've decided to
bring that portion of the subsidy to this project. So, you have an
opportunity to leverage the building e costs and generate this net benefit.
It's important I think to call out that um it's a complicated financing
structure because of the public private partnership and because there's already
a lot of um subsidy and support. You all were just talking about the support that
you're bringing um to the uh early childhood education center. Uh we have
worked very closely um we've tried to work with Sarah and the legal teams that
are involved and of course Matt as developer to really think through how do
we structure this in a way so that all subsidies play well in the sandbox
together. And one of the ways that does that cleanly is that although building E
would be financed with the new market's tax credit financing, um there would be
two condo units, if you will, that make up that. And and it's easy to have that
be confusing because there's all these units of housing. We're not talking
about the individual housing units. We're talking about a residential
condo. So this the three floors of the building that are residential focused
and a commercial condo, the ground floor that's going to have the early childhood
education component. And those will really be operated and you'll kind of
look through the layer of leases that make the public private partnership work
by um having Frasier Housing Authority of course operate the residential
portion of the project. That's what they're good at. That's what they've
been established to help do at St. Louis. And then of course the town of
Frraasier and your grants that you've gotten from Dola and to try to make the
early childhood education an opportunity. That piece of it really
kind of looks through to you. So any questions there on on just the this
concept of two parts of one full building.
Okay. So, so now we're going to smush that that concept [clears throat]
together into the layers of the financing partners that make the public
private partnership work. And as I mentioned, we have to leverage the costs
of new market tax credit um financing, the costs of building E through the
structure to generate the benefit. So, there's key financing ro partner roles.
So, one I've already talked about, it's the investor, the new markets tax credit
investor. The new markets tax credit investor in this case is Capital One.
They're going to bring cash to closing and then they will collect their return
from the US Treasury in the form of a tax credit.
The right to the tax credit, the authority that was parsed out in a
competitive competition is coming from the community development entities.
another technical term in the program. And in this case, as we've talked about,
the community development entities that are bringing the right to the tax credit
that Capital One will get to um get, you know, in essence buy by bringing their
cash in exchange for the tax credit. The right to that tax credit is coming from
Colorado Growth and Revitalization Fund and Enterprise and together CGRF and
Enterprise are allowing you to maximize the tax credit benefit
in order to make this work. New Markets Tax Credits was originally a lowinterest
loan program and so smart lawyers back in 2007 um 2006 2007 figured out how to
stack the program on top of itself and turn it into an equity or a grant
program. And so to make that happen, we set up a singlepurpose real estate
leasing entity. And that entity is structured to be in compliance with the
new market's tax credit program. And in this case, that entity is known as a
qualb, a qualified active lowincome community business. down here on the
bottom of the screen. It's another technical term in the New Markets tax
credit program for an entity eligible to receive New Markets proceeds. This is
going to be an entity that is going to be a support corporation, probably a
Frraasier Housing Authority. Um, we might be able to make it a support
corporation of the town. Um it's there's some different structuring
considerations there, but in general for you all to think about it, it really is
um a a 501c3 nonprofit real estate leasing company.
And it is going to own building E for the 7-year compliance period and lease
it back to Frasier Housing Authority, who is going to subleasase it to you to
operate their early childhood education. and you're actually going to subleasase
that on to grandkids and then Fraser Housing Authority is going to operate
the the housing piece. So, there's a layer of leases to make this work, but
that allows two really um helpful things. It allows the new markets tax
credit program to um the compliance for the new markets
program to kind of be locked in place over the 25-y year history of the new
markets program. Um there is there's no situation in which the tax credit has
ever had a recapture event and that's because it's really structured to
succeed. You kind of structure the compliance in on itself. Um and so that
that one of the pieces to that is this singlepurpose entity that kind of
receives the new market's benefit and then passes it through to the project.
And then of course we have the project sponsor as we would call it in new
markets parliament and that is going to be um Fraser Housing Authority and the
town of Frraasier. You guys are going to leverage the costs that you've um
brought together for the St. Louis project. It's going to funnel through
the new market tax credit public private partnership and generate um the benefit
where you're going to operate it like we talked about on the slide previously.
» I have a question. >> Yeah question. So you're talking about
leases. So this corporation is going to lease it to to the Frasier Housing
Authority and they're going to lease it to Frasier.
So what are the is there a termination? You said for seven years. Is there is
there a clause where they could terminate the lease during that 7-year
period? >> And who is they
» incorporation? >> I know, but who who creates the 501c3?
» This one. >> We do.
» No. >> So, is that the town that creates the
501c3? >> It it can be it can be the town or but I
think we were thinking it would be [clears throat] technically a support
corporation of Frasier Housing Authority. Um and that just um really
helps the the flow of funds through the public private partnership.
» Okay. >> Um and then as far as lease termination,
there is flexibility. It's like any commercial lease, but you are
incentivized to keep those leases in place because of the good work that's
coming out of the project and also because it allows the project to stay in
compliance. It kind of keeps the financing structure in place. So, we
would recommend keeping those lease agreements in place. Um, at the end of
the seven-year compliance period through a put call option, the investor exits
the structure and they put the ownership of the financing structure to Frasier
Housing Authority. And so then Frasier Housing Authority is holds all the
membership rights of all the parts of the complicated public private
partnership. And so you can kind of collapse the structure
and and at that point the leases are almost always terminated. and then any
of your kind of subleas leases with grandkids or anything would of course is
kind of outside of that collapsing of the public private partnership at the
end of the seven-year period when the investor is collecting their return.
» So I mean I'm not sure you answer my question.
Is there a risk in this corporation or this entity
terminating the lease during that seven-year period? Well, they're the
landlord, so they own it and you're the tenant. Fridge Housing Authority is the
tenant. So, I I don't know if I'm understanding your um question.
» It leasing it to us, right? >> Yes. The concern, Monica, is could the
town lose the building? >> Well, lose the lease and I guess
eventually >> if there's this other entity that's
being entered in with ownership. So the the entity with the ownership um
is so um okay [snorts] so so there's a layer of
leases and um so the what we would call the fee interest in the residential
condo so the the the ownership of the residential condo resides at Frasier
Housing Authority and the um fee interest or ownership of the
commercial condo or the early childhood education condo resides at Town of
Frasier and then you all similar to a ground lease are leasing those units to
this specialurpose entity. So, um, and they are, this special purpose entity,
the qualified active low-income community business is a support
corporation nonprofit whose sole mission is to support Frasier Housing Authority.
And you all get to with with the Fraser Housing Authority get to determine the
board members. So for tax purposes, it needs to be different
than from the board of Frraasier housing authority by having at least a majority
of board members be independent and but they can be friendly. So, I don't know
enough about the structure of the Frasier Housing Authority Board and the
Town of Frasier board, but for example, if there was a town of Frraasier board
member who is not on the Frasier Housing Authority board, that person could be
one of the independent board members. And typically, the qualified active
low-income community businesses have threeperson board members. So you would
have one that's uh that kind of overlaps with Frasier Housing Authority and then
you would have two independents. So meaning not currently employed by or not
currently on the board of Frasier Housing Authority and that generates the
fed the the separation for federal tax purposes but it's a friendly board that
you all have elected who is on that board and their full mission is to
support Fraser Housing Authority. So they're wholly aligned. It is merely a
pass through entity that makes the financing work and it is leasing the fee
interest from the two condos and then it's leasing it right back to Frasier
Housing Authority to operate the housing and right back to Town of Frasier to to
lease it to grandkids. So it is true that we're kind of sandwiching it in a
layer of leases, but I think it's a very low risk that those leases would be
ended because they're wholly mission aligned and only in place is a pass
through to make the subsidy an opportunity. Is that help?
» It it helps. I do have a question. Um we are the Frasier Housing Authority,
the Frasier Town Board. So what you're suggesting is we would have actually
three appointees and no board members on that panel or that committee.
» Well, you could have one overlap typically one over.
» So there's a couple ways to structure it and and the the um New Markets Tax
Credit Council um who's working with you um we've worked with him for for years
and he um he could help describe the options to help you all get comfortable.
One option would be a threeperson board where one person could be one of you all
sitting here and then two would be independent but identified by you. The
other is to do a fiveperson board and in that case three could be
» um you one of you all and two would have to be independent. But then you have to
write into that structure a requirement that the two independent are always
present in the case that any um uh any actions are taken that have
meaningful impact on the financing. So there's just some security measures to
make sure the independent board members in that approach are um are available
and both both work and are commonly used. So um we definitely want to
structure in a way that's going to make you all as comfortable as possible. This
is sincerely a tool to make the new market's tax credit financing structure
work. >> And there's only restrictions on place
in place on the number of trustees that could be on that committee. And I'm
asking because you're on the Frasier Valley Housing Partnership, right?
» Um and I wanted to make sure that's not a conf we have a new volunteer.
» He loves his paycheck. [laughter] Um just making sure there's no other
conflicts is just our board. >> Yeah. And I think we can definitely try
to to work in the structure. >> Fraser Valley Partnership whether or not
» who appoints those other two members to the board.
» The board does. >> Okay.
And who owns this 501c3 corporation?
That's his who? So, it's a it's a brand new nonprofit corporation, but it is
what we would call a support corporation in that its whole mission is to support
the activities of Frasier Housing Authority.
» Who is who are I mean, who wouldn't it >> like does the does the town have to set
up that 501c3? >> Yes. Yep. That that
» establishes a 501c3. Okay. Well, it's it's typically a non-member
501c3 entity that is a support corporation that is wholly controlled by
its board that you all would select. We just need to differentiate it from
Frasier Housing Authority for t federal tax purposes.
» So that's the reason and and a quality under the new markets tax credit code
cannot be a government. >> So we have to make it a 501c3.
And so Denver Housing Authority, for example, used this structure and they
created a support corporation under that that is a nonprofit in support of Denver
Housing Authority and that's how they did it. So that's the model we're we're
using here. Sorry, Sarah, go ahead. Or who who asked the question?
» Well, and Monica, as part of this process of of putting together the new
market tax credits, I believe we would work with you and the legal council to
put this 501c3 together. Correct. >> Absolutely. They do it all the time.
they have um a lot of experience in that and they're very good at either using
form you know articles and bylaws that you all prefer or they can bring very
simplified ones that are used regularly in new markets financing. So yes
absolutely you'll get a chance to review all of this um and pass resolutions
before the new markets tax credit financing could close. Those closing
resolutions are an essential step in the approval process to make this financing
work. Okay. So, >> so Monica, so this structure is
actually sheltering us from risk.
» That's Yes. Set up this way. >> Yes. Yes. And and that's one of the
reasons most of the um nonprofits that we work with use this structure is
exactly for that. The singlepurpose entity is literally structured to remain
in compliance for the seven years and therefore it gives you the most
flexibility in your operations because it's the tenant if you will the master
tenant which is really the least back to yourself that's the operator and so it
it allows you to assure compliance as well as have most flexibility in
operations. That's I think why it's a popular structure.
» Yeah. Because the letter from Capital One to Sarah does have clauses in it
that basically say that we are at risk
as an entity for a recapture or loss if it all breaks
down. >> That's right. And in the 25-y year
history, I am unaware of of any new market still that's ever had a recapture
event because of these structures. It's it's it's one of the most secure tax
credit for structures. I mean, we work with a lot of tax credits, historic tax
credits, LITC low-inccome housing tax credits. There's there's risks with tax
credit programs. This one is is extremely low risk because of this
structure. That's exactly right. >> So, yeah, back to my original question,
it's not no risk. There is a slight risk potentially something can happen, but
it's a low risk. >> That's right. So the things Oh, sorry.
Go ahead. >> I was going to say maybe it'd be helpful
if you could talk through if we were to be your first recapture, what would that
look like? >> Absolutely. Um, let me first say what
what you would have to do to be that example. So, one thing you'd have to do
is is not pay the the the new market. So, new markets tax credits funnels into
the structure looking and feeling like low interest loans. um there's an
interest payment that you make kind of at the bottom of that structure and it
actually comes back to you as interest income on the top. It's kind of going in
a circle. Um and that so one of the things you could do is not pay your
lease and therefore not paid the interest. But you were not incentivized
to make that mistake because that money comes back to you. So that um that is
one of the few things. The other thing you could do is you could become one of
the non-qualified businesses. And there's kind of a list of what we call
the quote unquote sin businesses, a massage parlor, you can't become uh you
can't um sell alcohol for off- premise consumption. Um a golf course. Um
there's a few, you know, and I can get you that list. Um and so those are
really the things that could trigger new market tax credit recapture. So um if
you were to there are there's a services test but that's when in this structure
that is they use instead the the property as long as the property is
owned by this entity or in this case long-term leased and leased back to you
um then you don't need that services test. So those are the things you could
do to trigger recapture. Let's say for some unforeseen reason in seven years we
accidentally trigger recapture um by um bringing one of the sin businesses in as
a tenant. Um in that case the US Treasury would force Capital One to to
pay the taxes that it had received the credit for and then Capital One is going
to turn around and ask you to pay them back. So the that subsidy that they're
bringing to your project, you would have to pay back. And then all the treasury
costs and all the legal fees and and any of the, you know, tax filing costs that
are associated with the years of that tax credit that then are now out of
compliance would have to be repaid. So that's the that's the meltdown scenario.
Again, no history of that in the new markets program to date, but that is
what would happen is is that Capital One would have to pay the tax credit back to
the US government and they would turn to you to make them whole.
» But if we keep the daycare in there for seven years, it's a non-issue.
» Exactly. Well, [laughter] and that is also why we have the random list of sin
businesses prohibited in grandkids lease that was specifically put [laughter] in
there for the request of the new market tax credit.
» We didn't otherwise expect them to start tattooing people tomorrow in their
classrooms. >> All the kids get numbered. [laughter]
» Monica, one question, and I apologize. It's been a while since you went through
that other fancy chart with me. But do I remember correctly, did we land on that
the town of Frraasier was going to be leasing to the Qualic B as one of those
layers of leases so that the town of Frraasier retained ownership per our
grant requirements. >> That's correct. For the for the ECE
condo, the ground floor condo. That's correct. And then Frasier Housing
Authority similarly retains ownership of the housing portion and then leases it
into the structure and then it's leased back to you. That's correct.
So, just a few more points here and I want to make sure um we can all keep
moving forward. Again, I am I love this stuff. So, if anybody wants to set up
another meeting, please um do not hesitate to reach out to me. I'm more
than happy to dig into it. Some key points we want you all to be aware of.
Um in this structure to leverage building e costs through the structure
into the public private partnership, your money enters in the form of a loan.
That's so that Capital One can own the right to the tax credit. Um, and it
allows that kind of interest payment to go in a circle and come back to you. So,
um, we call that the leverage loan. And so, that's that is going to fund the new
market's financing, um, and generate the tax credit opportunity. So, you're going
to bring about twothirds of the money to the table and Capital One's going to
bring about a third and it's going to funnel through and it's going to build
the project. And that's the purpose for the tax credit opportunity.
That leverage loan is going to be um made through really the costs you've
already spent that have helped build building E. So um Sarah to your point,
some of the grants that you've already received and then um Proposition 123 or
123 equity is kind of rounding out the capital stack. So we're going to
leverage those costs through the structure. Um, and then the New Markets
benefit uh comes in all upfront all on the day of closing. So, some tax credit
programs pay in at milestones of construction. New Markets tax credits
does not. It pays in all upfront all on the day of closing comes in as cash
flows through the the public private partnership and that cash comes into a
dispersement account that you use to complete the building. So, New Markets
is going to look and feel like lowinterest loans for the seven-year
compliance period, but it is net neutral. You pay that interest, it comes
back to you at the top. And at the end of the seven-year compliance period,
we're going to put the ownership of that structure and collapse it in the form of
debt forgiveness. So, we sometimes refer to those as kind of the fake debt, if
you will, in the new market structure. And I know I'm zooming over a lot of
ideas that are very complex there. Monica, can I can I interject for one
second? Hi. Hi, >> board. Matt Ginsburg, Mountain
Affordable Housing Development. That that's no new capital required by the
town. All that money is already in the structure. We're just repurposing it as
a leveraged loan. >> Thank you, Matt.
» Yep, very good point. >> Starting to learn after three years what
might what might concern you. [laughter]
Um, that's exactly correct. So, the the benefit will create a savings. It's
really it's really creating a savings in the building of building E. And then at
the end of the construction period for St. Louis, it's really a savings of of
bond proceeds that are not going to be used and that allows more money to come
back to the town on their subordinate loan. So, there's this always this
complicated question of when is the net benefit achieved. It is achieved upfront
at closing. It is going to get invested into the building of building E. New
Markets wants to feel like it's coming into the project that's having community
impact and then that's going to create a savings to you all at that will really
be understood at the time that the full project is complete and there is a
savings on the on the bond proceeds that are not drawn for building E.
Okay. Again, lots here. Happy to dig in more. This is a highlevel representative
timeline. I know there's some different discussions in here. Our goal is to um
try to take advantage of the new markets financing as soon as possible. Uh it is
a very competitive subsidy. So to have enterprise and Colorado growth and re
revitalization fund bringing the subsidy to you is a great opportunity. Um
ideally we would stay on track to leverage this financing opportunity here
yet this calendar year. And the reason for that is some of the costs that we're
leveraging to maximize the new markets tax credit benefit are costs that of
course have been in process and spent in the building that's in process at
building E. And so um New Markets allows you to to leverage costs as long as
there's they're within 24 months of look back from the day of closing. So we want
to we do want to close this calendar year in order to have enough costs that
are in compliance to be able to leverage the opportunity. So um here of course
and soon um we as it sounds like we're attached to your board documents there
are some term sheets and um investor the investor LOI from Capital One. There's
also um an adjoiner for the legal council that we talked about, a
gentleman named Kevin Sabry at KCD Legal who would be representing you all uh in
the new markets tax credit financing. Um he's excellent to work with. We've
worked with him for a long time. So there's an adjoiner to allow him to be
um representing you all as a part of his legal um role. And then as those
financing partners and that comes together, ideally we would kick off the
new markets financing. Uh kickoff is kind of a technical term for when all
the financing parties come together and we start to review the closing documents
and the the due diligence that it's usually about three months from kickoff
to get to financial closing. In that period, as was mentioned, um,
KCD legal, our firm as your consultants would work with you to help put together
and structure the new entity that would be created to make the financing work.
You would identify the board members that you want for that entity. And of
co, of course, before we close, you all would have to approve the closing
resolutions that authorize that financing. So, um the the kickoff starts
the process, but there is formal approval needed to to make the financing
possible. Um and and that newly formed board also has to pass closing
resolutions to allow the financing to close. We anticipate those to be
somewhere in October with a financing in November. Definitely trying to close
before year end and and the sooner the better to maximize that benefit with the
costs. So, um, please reach out to me with any
questions. There is a more complicated diagram at the end of this presentation.
Um, if you have questions on that or if there's more discussion needed, I'm more
than happy to to answer questions or or schedule another time.
» Going to say she didn't show you the chart that hurts my brain.
» I can. [laughter] >> You explain it very nicely, Monica.
Thank you. >> Thank you.
» Yeah, it does. Um there is a method to the madness but
it is complicated. Yes. >> Yes. So there are a number of documents
um some of which are included here that are going to be coming to the board. So
if there are any questions at this time about some of those documents if you had
the opportunity to review them but um I believe correct me if I misstate this uh
we are waiting for Prop 123 for Chaffa to kind of give the final sign off. they
know this is coming um but they need to approve this before before we move
forward. Um and so at that point we will be bringing those documents for board
approval but wanted to not have to try to explain everything that Monica just
explained um when those documents are brought forward.
» We've got kind of a tight timeline. We're waiting on chat on
» your mouth. >> I think we may
we may be bringing things a little bit before we have sort of final approval
because you know they give you a a pretty firm view about where they are
at. And it also helps that that the one and a half of the new markets funding
the the the CDs that bring the credit is Chaffa also. Um, and so they should
probably hopefully, if they can hear us, we'll be working behind the scenes to
make it move smoothly.
I would be interested in seeing the list of items that would trigger recapture of
of the tax credits. I mean, I'm just thinking I
I have no idea. You mentioned a few, right? What if there was some
nefarious issue, criminal something happened with
the daycare? Would that trigger a recapture? I mean, would that
you know what what are the risks there in terms of recapturing
those tax credits? Does that make sense? >> Great question. Just at a high level,
I'm more than happy. We have some presentations that are specific to the
compliance. Um the daycare is a tenant and so their activities um really cannot
trigger it. It's really actions of the qualified active low-income community
business entity that are going to trigger the the the recapture situation.
So it is true you can lease to a non-qualified business. Um, I suppose
they could, um, ignore the businesses, the non-qualified businesses
that are a part of their lease, as Sarah mentioned, that were already put in. Um,
but if that happens, then there's a cure period. You would be able to replace
them with a with a qualified tenant and and and so that should not trigger
recapture if if taken care of. Um it's there there's a lot of cures built in to
make sure the solves are um worked out, but I'd be more than happy to put
together kind of a summary presentation of what triggers recapture.
» I think that'd be helpful. How long will we have to get rid of a tenant? Would it
be 60 days or six months? >> Well, we just had a change it to 180
days. >> Yeah, we did. But
» we're going to keep this dayare because they won't
» for a short period of time >> or we tell them to close down whatever
operation they have >> that we're it's not allowed.
» Yeah. Yeah. I think we're good. >> Yeah. Typically the new markets
compliance period uh or the new markets compliance certificate is executed
bianually. So you would do it twice a year. So you'd have a sixmonth period
where you're reporting on any of the compliance. um now how that ties to the
actual um >> period that would then trigger
recapture. I think you probably have longer for that. But I think that that
the um community development entities who manage the compliance, they have you
fill out the compliance certificate on a bianual cadence so that they have time
to work with you for any cures in a period that would trigger a concern
which might be annually that they report to the treasury.
» Okay. Thank you. >> Yeah, good questions.
» Okay. No such thing as free money. [laughter]
» So Matt, do you want to um pull up or I can pull up your sources and uses and
just kind of show how this fits into that overall capital
» sources and uses deck. >> I can pull it up.
that good for everybody.
» Cool. Good evening board. Matt Ginsburg,
nonaffordable housing development again.
Um, I'm going to walk through the the the sources and uses page which we've
looked at for three years. Um, if you have questions, let me know about any
particular line item, but I'm I'm going to review it holistically with a focus
on on the effects of the new market tax credit.
Uh what's on this page is the final underwriting
um sources and uses that that was approved and in the in the uh bond
documents and and in the um Prop 123 documents etc and their underwriting
materials. Um so all the final numbers from the from the bond offering um you
know over time the cost of the project of course go up because that's the only
direction costs really ever go um and a portion of the 5.335
or 5.4 $4 million of uh bridge loan, the first interim bridge loan that y'all put
in um was going to get consumed and probably not fully paid back by the myc
funding. Um which is something that's been out here for quite a while, but but
want to make sure that that it's clear because it's relevant to why make the
effort to do the new market tax credit. Um
so th this is the uh this is the final source and uses. If you don't do
anything about the new market tax credit um and we you know come in like right at
budget, spend the contingency, etc. Uh then there will be about $2.9
million of outstanding first interim loan obligation. Remember at closing we
paid back all of the um $5.3 million of second interim loan obligation. Um, so
that that's that's back. Um, but the a portion of that first interim
loan obligation would be outstanding at the end. You would get that back over
time through the cash flows of the uh of the project.
Questions? Okay.
we have money left over. >> Yeah. Here we go. So, if we add to the
lefth hand side $3 million, um, which is a net amount. So, there's
some cost to doing the issuance. Um, and I think we think that 3 million is a
fairly conservative amount. I I missed the first couple minutes of Monica's
presentation, so hopefully she told you the same thing. Um,
then then all of the initial $5.4 4 million will will come back assuming
that the budget is is observed and performed upon. Um and you'll have an
excess $70,000 or just about $71,000.
Um which I think might be 79. Maybe I did
my math wrong on there. uh the the uh that you can use that for you sort of
need to use that if it's coming directly from the the new markets tax credit to
um invest in the the grandkids learning center the the which
isn't specifically for grandkids in this case it's just the the childhood
education center uh which could be you know internal buildout um or
um playground structure things like that.
The various different costs to to fully outfit the the space as uh as is
necessary for a particular uh childcare operator. Um so sort of the the the
other end of the spectrum from not doing it is doing it and and
not increasing the budget at all for the buildout. and you you end up uh with all
of your first interim loan back and a little bit extra that would be allocated
towards uh towards some portion of of buildout costs. As I understand it,
grandkids put forth a budget to y'all of of something like $600,000, but I don't
quote me on that because I haven't seen it. I could be wrong about that.
question. So Matt on this sheet on uses it doesn't mention
» on this particular sheet >> um build out at all or any cost going
towards the grandkids. >> Correct. I'm just showing you that that
you have excess I haven't done anything to the right hand side. That's why
there's a third sheet. >> Great.
Um, >> yeah, I see that
» the buildout I mean the building e cost is in the vertical buildout and that
includes a good amount of the internals. Um, just maybe not the more highly
custom stuff like like some um appliances and uh other special
installations that are that are specifically for how how grandkids would
like it set up. It's it is pretty well set up how grandkids would like it set
up. It's not 100% set up how grandkids like it set up. So,
» right.
» Third scenario. Um,
now, uh, Trusty Souls, we add $600,000, which is, like I said, the the the
budget that I the high level budget number that I heard floated, um, to the
right hand side. We still bring in the $3 million on the lefth hand side. Uh,
you end up with, you know, almost all of your first interim loan of
5.4 back, you get 4.8 almost $4.9 million back. And that again is assuming
that we deliver the project exactly on budget and expend all the contingency,
etc. Um th this something like this would be my
recommendation if I'm supposed to give a recommendation, but um but that I think
it's up to the board what they want to do. It's up to I think a conversation
with grandkids about how how building out will assist with uh the goals here.
I think of course the the faster they can get students into the seats, the
more uh adults who work in the town and pay taxes and generate uh um sales tax
from sales to visitors can be there. So, it's probably a an altruistic upward
spiral by making sure you can fill out the seats there sooner.
» Mhm. >> Yeah.
» So, the question is, grandkids, could you fill all the seats if we did this
that that fast? You know, getting teachers, everything like that,
» they're going to need to take a few years. Um, someone needs to use the
microphone to answer your question. >> Yeah. Could Do you think you could find
teachers?
» Do you want to pop up to the microphone? Yeah. Thanks.
» Thank you. >> No.
» Sorry, Katie. >> Um, yes, I think that we could find
teachers. Since um our board of directors raised our bottom line pay
about a month ago, we have seen a substantial increase in applicants. And
I would expect that that would increase once the stipen program is able to be
advertised as well. >> Okay.
» And Grant's current budget for their buildout that they provided here is a
bit less than that 600,000. Um it's looks like it's $418,545.
Um, so as Matt was explaining, if we help
them either with all of that or the difference between what they believe
they have money to put towards it and that amount, um, the town would
potentially have some of its balance of that loan paid back through time over
cash flows versus right at closing. Um the other piece of it though, and again
correct me if I misstate this Matt, um if not all of that contingency is used
for the project, then we'd have that going back to the town as well um to pay
back the rest of that loan. >> Yeah, there's still opportunity to to
bring it all home. Um but I I I don't want to uh
I'm not not changing >> to wipe out the system in uses yet.
Let's finish a building, you know. I was going to ask about the contingencies and
that's that's just kind of a fudge factor just in case their cost ever
runs. What about reserve accounts? >> The reserve accounts are specifically
for the bonds. One they're uh about 3 million and then two and a quarter and
one is to pay interest during the construction period and that just gets
consumed like right you raise the money from the bond holders and you write
checks back to the bond holders. Um >> maybe money left over from that too.
No, I I the that that like bond cash flows are very specific. Um and also
it's very easy to predict what the interest uh service will be during that
period of time because you know what you raised, you know the amount of time and
you know your revenue is zero. So that that's that will probably be
consumed almost to the dollar. And then the other $3 millionish dollars, I think
it's 2.9 something, is a is a long-term reserve account and that's part of the
security package that the bond holders require. That will I guess good point,
Le, that that will come back at the end either to advertise bonds or or to you
all. um that'll come back probably after you've already uh gotten that $529,000
in this case out of the uh out of the project in cash flows.
» Okay. Well, that's good. And then the water sewer tap fees, that come to the
town and building permit fees, is that paid directly to the town?
» No. To our >> It's probably part of the waved fees on
the left. Yeah, the the building permit fees and the wave fees are were were
um >> they did they you either I don't
remember if we took cash in and cash out or or or if we just didn't didn't move
the cash around there [clears throat] >> that that's a wash
» that's the same as building permit. I believe the building permit were
waved, if I'm remembering correctly, the water and sewer top fees and the fire
and school fees. Um, we are paying those into the appropriate accounts, but we
have um grant money that's covering most of that,
» right? As it should be. >> And did that get paid to the town? Well,
water and sewer fees get paid to the town.
» They'll get paid to those enterprise funds, but again, we have grant dollars.
we have to pay our match portion, but the rest of that is being paid with
grant dollars. >> Great. Good work.
» Okay.
» So, if the direction of the board um is that we would like to help cover some of
those buildout expenses with this new market tax credit money, that is
something that would come back to the board ultimately for for final approval
as we're working through this new market tax credit process. Um, I know for
grandkids, the sooner they kind of have information to work with that helps them
plan accordingly so that they can make sure they are set up to to do their
buildout. >> Well, we need to make sure we're getting
this money first of all, right? >> Yeah. And I think we're we feel pretty
pretty confident that >> um I can let Monica speak to that as
well um and her history with us, but we we should be able to close on that money
and anything we offered would be contingent on closing on that money.
» Yeah. >> So, can you can you clarify um the order
that this would go in? I'm thinking about our bridge loan and uh if it gets
paid back or partially paid back, but I think we told the community that this
was not we were not paying for this that we would get that money back. So I I
mean I'm kind of in I'm in support of helping the
child with education, but I I think we have to be upfront with our community
and and pay ourselves back first and then if there's something left over, we
can consider. But these are things we said in public uh micro.
» Well, and one thing to consider with these this $3 million is we wouldn't be
eligible if we weren't supporting this daycare to begin with.
» So if we were to s, you know, sacrifice 500,000 now and get paid back over time.
It's just something to consider. >> I just want to make sure it's clear to
the our constituents and our community that
you know that our arrangements are are we're sticking to our word. I mean we we
loaned that money and it was said over and over and we had people in the
audience saying hey is this going to be Frasier paying for this and we said no
multiple times. I I just uh think we need to be cognizant of that.
» All righty. >> Okay. But we don't need to decide that
right now. Right. >> We just need to
» We don't No action. >> No, we're not looking for any action.
Yeah, this isformational. >> Okay, it's a lot of information.
» That's a lot of information, but I appreciate you guys. Thank you for
coming. >> Thank you.
» And we have just a >> short leg stretch before we start the
next one.
» We have three >> not going to be short.
» We have three things to go. Um, we have a request for a leg stretch. Let's uh
let's do three minutes. >> Yeah, just short. Then y'all could stand
up.
Okay, next up
» we we get Oh, yeah. Oh, plenty. Um, pole yard development community wish list
discussion. Uh, Ron Jones is here with us.
Do I need to talk fairly closely into this for you to hear me?
» Yeah, that's that would be helpful. Yeah.
» Can you hear me now? >> Yeah. Yeah.
» Okay. I'm Ron Jones. I know most of you. Um, I've had conversations with some of
you individually and I'll keep this fairly
brief and I just wanted to give you the courtesy of telling you what we're doing
and what we've done. Um, as many of you know, I've been in the valley 51 years
and did Cooper Creek Square. I did a lot of self storage. I'm out of all that now
and I'm at a place in my life where I'd like to pay back to the community. And
so my family and I, my my kids and myself, we looked around and we felt the
best way to do this would be to buy the Susan Jones Trust property, the 128
acres, which is part of what is sort of called the pole yard. I guess it's
everything from uh the Sarah, did you want to put a map up or
» Yeah, it's everything from the ball fields to the elementary school up to
Grandma Miller's and up to Betsy Dere's uh my kid's mom's house. It's a very
critical parcel that I think needs to be developed properly. And so we didn't do
the traditional developer thing of let's get a development plan and let's draw a
bunch of pretty pictures and come to the city and say this is what we want to do.
I felt the property became available at a price that was high but still
we could justify and we just simply bought it. And our goal is to take a
substantial portion of this property and put it to use for the things that will
help make the Frasier Valley a more sustainable place for people to live. Uh
it's not about what kind of a IR can get off the property. It's what we can do to
to make things work. And so I want to work with Frasier. I want to work with
Winter Park. I want to work with Grand County. I want to work with everybody
that's involved to listen to what we need in order so that young families
don't say we can't make it here. We can't afford to live here. We have to
leave. Um obviously work for you. You just had a whole huge presentation on
workforce housing. That's on the top of the list with 150 acres. And and by the
way, we're working with Matt Girky who owns Polyard. Uh we're united in in
pause as far as doing the right thing for the community.
» Wonderful. >> With that amount of land, there's
absolutely no reason if we can find the developers to do it that we can't build
as much workforce housing, single family housing for people who live and work
here. There'll be some market things. Yes.
» How much does Matt Kirk? >> He has 10 acres.
» He he has 10. We already had five and we just bought 128. So it's close to 150
total. >> And then my family and Graham and Louise
Powers own the 43 acres between uh
let's say the rodeo grounds and and the west side of Frasier.
» Most of that is wetlands, but not all of it. And when County Road 522 gets built,
which we just had meetings with the county uh this last week, and they're
very very close to having that all put together, and if that happens, I think
their intention is to build it relatively soon. So anyway, the the
there isn't a plan to talk about. There's there's a dream. There's an
idea. There's a hey, we've got the land now, and we're not on a short time
frame. I didn't borrow a whole bunch of money and now I have to go make money.
We paid cash for it and we can hold it and we can protect it. It's it's not
going to be open space. It's a it's an industrial site. I mean, it's not not a
pretty meadow, but it's a place where the things child care, workforce
housing, uh, schools, uh, recreation, nonprofits, uh, Riverwalk. There's a lot
of things we can do. So, the the first step that I I want to do is hold some
public meetings and and just listen, just hear what people in the community
say. We'd like to see this. we feel we need this. And we've had people coming
out of the woodwork saying, "Gosh, listen to us. This is what we need. You
guys are going to be important because we can't do this without the
infrastructure of Frasier." We all know that water is a big issue. Uh we've been
talking to your town leaders about solving that. The sooner that we solve
the water problem, the sooner we can get going with trying to put land
underneath. I want to be very, very clear. We will donate some land. We will
make some land affordable and then we'll have some market land. We we we'd like
to at least recapture what we paid for the land, maybe make a small profit, but
that's not our main motivation. The main motivation is to is to actually have a a
resort community that works for everybody, not just the people who come
here as the second homeowners. And that's a big broad picture. That's a
huge tent, but you're dealing with somebody who's lived here 51 years.
Katie Souls and I played pool. We both came to town the same night in 1975,
Halloween night, and we we've done it together, you know, all this time. And
so, >> that's that's what we're trying to do.
» Yeah, it's wonderful. >> I'll answer I'll answer questions, but
there's not a lot more detail. We we banned bannered around some names and I
think for the time being I just like to refer to it as a community project at
the poleard. That won't be the end name but that's kind of the everybody knows
the poleard and that's what we're trying to do is do a community project.
» Wonderful. So yeah I [laughter]
» I was thrilled when you found that you bought it. So the old pond the mill
pond. >> Yes. that's back there that hardly holds
water. That's in your property now. >> Yes.
» Um and we're always looking for a place for water storage,
I believe. And it's a good opportunity for potential recreation and park. I
know our kids played there growing up. It was just fabulous. So anyway, that's
something to for us to kind of tuck away as a possibility for a another little
park in there and also to be able to use that water for water storage and water
mitigation because that's kind of big for the town. We need more of that. We
have been discussing those exact concepts with
with our team and your team. Okay. >> And as I understand it,
doing treatment of surface water is very expensive and probably outside of the
budget of Frasier. Yeah. >> However, drilling wells and releasing uh
water to augment wells from a storage pond is
very efficient in in comparison to surface. So, that is definitely
something we're talking about. One thing that probably isn't that well known in
the community, it's not a secret, but uh those of you who know where I live, I've
got about a 7 acre lake that Dwight Miller dug as a um
it was a rock quarry or a gravel pit way back when. And that water's just been
sitting there. I don't have any water rights, but I've got the right to have
the lake. So, I have made an agreement with the Middle Park Water Conservancy
District to convert that into a community purpose reservoir.
That gives us the possibility of releasing
uh augmentation water. And there's not that many users between Frasier and
where I live in Tabernac. I'm not saying that it'll work, but it's certainly
something that it makes sense that Frasier would want to cooperate with
Middle Park Water Conservancy because they're certainly here for the their
whole district. So, I think we're going to have to get creative to solve that
problem. But as soon as we do, then we can start talking to the various
individuals. We can do a land plan. We can start coming to you to talk about
annexation. we can start talking to groups who who need land. I've had
several nonprofits come to me and say, "Gosh, we'd like to have our own place.
You know, we'd like to have land underneath us." I've had a lot of people
say, "Gosh, I' I'd really want to stay in the valley, but I don't necessarily
want to live in an apartment. You know, workass housing is not where I want to
raise a family. I'd like to have a small piece of land. I mean,
» a neighborhood. >> A neighborhood." and and Andy Miller was
talking to me last night about when you and I moved up here, people bought a
little piece of land and they built their own house because that's the only
way they could afford to do it. You know, one year they'd put up this wall,
the next year they put up the other wall. And I hope people could build it
sooner than that, but it'd be nice to have small lots that are affordable that
people can figure out a way to actually own a house. Now, I can't do all the
vertical, but I can help solve the land. And and land cost is, as you know from
the project you're doing on on the housing, land cost is a huge portion of
it. And if we can bring that under control, there's a whole lot of good we
can do. And I wish I had more details, but I can't have more details until we
collectively work through this and and and solve some of the issues. So, you
know, what we're dealing with is was is a spirit right now. And I want to invite
everybody in the community to participate in this, not a secret. It's
like, how can we do this together? And I've had an incredibly positive
response. Uh I've been talking to a lot of people. uh everybody from you know
the ski areas to governments to nonprofits and I think this is an
opportunity for us to really come together and say what do we need to
create a community that's more livable and not just for the second homeowners.
So any other questions? >> We're very excited.
» I'm excited. I hope you guys are. >> We are.
» That's great. >> What other thoughts do you guys have for
you? Thank you. >> Yeah. Thank you, Ron.
» Thanks so much. >> Yeah, absolutely.
» Um Andy Miller, Planning Commission, Frasier. Uh you know, I've I've been
doing this land development review game as a town board member, as a journalist,
as as a naysayer out in the community a long time. 50 50 three years, I believe.
Um, and last night after talking to Ron over dinner last night, um, I lost a
little sleep for the first time. It wasn't because I was worried about
something. It was because I was excited about something. So, this is this is
really cool. Um, I think the the key words that I got from Ron that I heard
again tonight is a community built project and get the young people
involved. women. Uh we've got so many pe so many my both of my sons are in their
mid-30s and and doing good things, but basically pretty convinced the
government doesn't do anything to help them out. And um and here's here's some
property. Here's a possible project we might put together. When we were talking
about the pole yard, we came pretty close to buying that. I know we talked
about a make it space. The make it movement is you don't hear a lot about
it lately, but it's out there. A lot of people want to know how to work with
their hands, you know. And you think about these these tiny lots and small
houses, not tiny houses, but houses that could have all the facilities in them.
And the owner that wants to build them, but is working by himself. And maybe we
don't do one wall at a time. That would that would uh could create a blight on
the landscape. And but maybe we bring in like Breenriidge does with art
vacations. Maybe we have make it type vacations. And we have a community shop
out there with the facilities and the tools and the things that a person needs
to build a house and learn trades. Um, and then tourist uh visitors come in for
a little hawk fin vacation. I got the brush. Um, I got the paint and there's
the fence. Let's see. You know, it's going to be a little more elaborate than
that, but that's the spirit of it. So there just so many great ideas that that
that that the young folks in town will come up with and and those amongst us
who've made those mistakes in the past can hopefully at least offer a path past
those. So Ron, I'm super excited about this and it's just really nice to hear
somebody get up here and say, "I want to give back." So
» indeed. >> Thanks.
» Okay. All right.
» Well, I've had a number of conversations with Ron. It's It's always been fun to
kind of dream of what we want to put in this space. Um, have you guys
heard anything else or do you have you thought of anything else that hasn't
already been already been brought up?
» I was interested. And I know I brought up um I mentioned to a gal who's a
teacher, you know, about school and then but she was really worried about
stretching the resources and funding that we have for our school district
already. So that was interesting, you know, in terms of a middle school high
school combo, but >> I think it needs to be considered,
» you know, and we need we're going to need a new location for Safeway
eventually. It is busting at the seams and we're
probably gonna have another thousand people as permanent population
over the next 10 years, maybe more. And it just can't accommodate it. You think
about the number of people. But this particular property, it doesn't really
work for because of the railroad. You can only access off of County Road 5,
right? Or coming through the town of Frraasier. Um, now across the street,
you know what's going on with the rest of that Jones the Susan Jones trust
property right there up at 8 the corner of 8 and 40?
» It's listed. >> Okay.
» And they're trying to sell it. >> Yeah.
» That's all >> all I know. I've heard rumors. Okay. But
that's all I know. >> Yeah. But you you bring up the
transportation issue and this is something I should have included in my
presentation because this is this is an action item you guys need to be aware of
now and I'm sure you're going to be hearing about it.
» Scott Ladine brought up uh and and then several people after him brought up the
need to be able to connect the elementary school to the ball fields so
that kids can safely walk from the elementary school to the ball fields.
This can happen very, very soon because County Road 522,
now that it looks like it's for sure going to happen, has a bike path, a
separated bike path from the roadway as you know that goes over the uh gas line
easement and it goes all the way from well from County Road 73 to the ball
fields. If we can simply connect the elementary school to 522,
that connection is here very soon. I mean, it could happen in the next year
or two. The other thing that the county said in in our meetings, and I don't
think I'm saying anything out of school, when when 522 was first designed, this
was 20 years ago, and the Susan Jones property, there was no hint that any
development was going to happen. So, there was nothing urban. The road was
designed to be, you know, 40, 45 miles an hour moving traffic. when the county
understood what our vision is and you know in some of the discussions we've
had were the potential of maybe as many as 2,000 F sfes out there and that type
of density that traffic has to slow down now and
the the county engineer and the county manager completely understood that this
is going to become an urban corridor. I mean, as urban as we can call it
anything in Grand County and that's a good thing because you don't want people
zipping by all of the existing homes that you've got on the west side of
Frasier, you know, at 45 50 miles an hour and creating noise and and and
safety issues. So if that road slows down,
you all need to really seriously think about how Eisenhower
needs to connect to 522 >> because it's the only way to get from
Frasier to the ball fields and the kids to get there without going across the
railroad tracks and going back out on Highway 40. So if Eisenhower connects to
522 now you've got a way that the citizens of Frraasier can get to the
ball fields and in talking to the you know the school district as they look 20
15 20 25 years down the road ultimately there's probably going to be a high
school and a middle school in in this end of the county. And when that happens
it's it's either probably going to happen on our property. There's some
other ideas that are being floated around, but it's going to be right in
that neighborhood. So, if we have all of this school thing, we have all of the
workforce housing, we got the library, the elementary school, and Oldtown
Frasier, we've got to have that transportation connection. And it's not
just that intersection. We need to be looking right now at a road plan. I
mean, how is this all going to tie together? Yeah.
» We don't want to be reacting to it afterwards. So if 522 gets built now, I
mean the one of the main purposes of that is so that locals can avoid some of
the traffic that gets congested on the Highway 40. I mean, we're going to know
about it. So you can start in Tavern and get to Safeway and avoid Highway 40. So,
I I urge you all to coordinate with the county and us to figure out how all of
those in intersections and and how the traffic's going to flow and and that's
long before we ever solve the water problem. That's like right now. So,
thank you for letting me add to that. thinking about use too. The end that's
closest to County Road 5 fieldhouse because we don't want it in the meadow
and right here in town, but to have it right across from the the ball fields,
that's the place for a fieldhouse. interesting because Scott mentioned
tonight about a master plan thing that visioning and
» y >> I think that's been one of the things
that I keep hoping for is that we can work with Denver water band in the north
create this ball fields long so that we can attract tournaments and be in the
same business that steamboats in >> Yeah.
» and bring them in to stay in our new hotels
» and people will come and spend money in the summer and be here. I'll throw
something out that a lot of people were surprised by and my friend Mike Ruuchi
noticed this and brought it up. The conservation ement that's on all the
land that Peggy's talking about north of the ball fields has been given by the
Denver Water Board. The holder of the conservation easement is the Grand
County Board of Trustees. >> It's not a land trust. It's our county.
that gives us a huge amount of flexibility in working with that
particular conservation easement. There's also an exception written right
in the conservation easement for educational purposes.
So right now there's no prohibition on anything that would be of course middle
school, high school, it would certainly be educational purposes. What we have is
a lot of flexibility here as as as a community to think about how everything
from the elementary school to the other side of the ball field should come
together from a planning perspective. Now, no promises. We have to work with
the Denver Water Board. We all know how easy they are to work with. But, uh, you
know, I think if we as a community come up with a plan that really works for the
community, as long as we're not taking any of Denver Waters water, I think that
there's a chance that we could work with them and some of these uses we're
talking about like a fieldhouse school could actually expand in that in in that
direction. And it wouldn't take up that whole meadow. I mean, it would probably
take up I don't I don't even want to guess, but not not that big. and all the
discussions we've been having, everybody points out the same thing. If if you're
going to have future schools, taking advantage of the existing
recreation facility of the ball fields cuts down on the amount of land you need
for all of the high school activities. So, we've got just an incredible
opportunity to get ahead of the game. Uh, one of the things that I've heard
I've been saying for years and other people are starting to say the same
thing. We're the last frontier. All the other ski areas have already done it.
They've either did it right or they made their mistakes. And we can learn from
what's happened in the other ski areas and hopefully avoid some of the
mistakes. We still have the ability to figure out how our community as a whole
works. Got a worldclass ski area, got all kinds of second homes. We got tons
of town houses and golf course houses and everything else. Now we have to
figure out how the Grand County is not going to become Aspen, Basalt, Rifle,
you know, we don't want all our employees to have to drive to Kremling.
We want to be able to let people live and work in this community. And that's
my goal is do everything I possibly can to pay back to a achieve that. And it's
it's a big big project and we're going to need a lot of help. So, it's an open
tent. But right now, let's focus on that transportation item because that's going
to happen sooner than later. And the last thing you want to do is build a
road and then a year later come back and say, "Oh, we didn't think about this."
So, we need to think about how this is going to work in the overall planning
process. >> Anything else?
» Have they Have they mapped out exactly where the road's going to go at this
point? >> Yes, sir. Yeah, there's you did the 404.
» Okay. >> Um, Adam, use your mic, please. Thank
you. >> It it essentially goes from the loop
road that goes through Clark's property and and starts at County Road 7 and
three and sort of curves around through our 43 acres and comes out at the
intersection of uh County Road 50 there by the gas meters or gas, whatever you
want to call that, substation. And then it there's a little jog where it hits
County Road five to line up with the road that goes next to the ball fields.
» So the other thing that I'm a strong proponent of and I think the county is
listening is is to is to get some roundabouts in there, you know, early on
rather rather than just having stop signs and all that type of stuff because
that that slows down traffic. It's it's a safe way to to to get around. So, I
really encourage Frraasier to get involved in that planning process
because even though it's a county road, it's really impacting the town of
Frraasier at least as much as it is the county.
» I I was just saying that the road layout is determined at this point. Um whether
there's roundabouts or not, I I do not know. Um I last December, I I renewed
the 404 permit with the state. I work for the county as a water resource guy.
So, um yeah, that's moving forward. >> Yeah, great.
» It's really close. I think one more step.
» Yeah. I I don't know if we have final Army Corps
uh yet, but that's in play and and they say it's expected to come through
because it's a removal. This has been going for 20 years, and it's just an
updated process basically. >> And the and the county staff and and the
county is really supporting this and they're doing it right. And you know, Ed
Moyer's been working on this for for years, and I think they're circling back
after some community input that came in. And I think they're really close to to
to having it done. And we're going to be fairly significant in terms of land
acquisition because of this latest property we bought. And we're going to
cooperate. you know, we don't we're not going to try to hold it up at all
because the sooner we get that connection, the sooner our kids can get
from the school to the ball fields. And to me, that's a that's a huge benefit.
» Yeah. >> To our community.
» So, isn't the expense for a roundabout mostly just the land? I mean, you save a
lot of money on not having stop lights, which are really expensive.
» I haven't looked at their budget, so I you're going to have to ask the county
the cost. Yes, Jack. >> You know,
» I know from from our standpoint as public record for processes is they went
and got an appraisal and they said, "This is what it's worth and this is
what we'll give you." And we said, "Sure." You know, we're not going to
fight them. You know, whatever. We're we're just like everybody else. You
know, if they if the land's needed for a public purpose, that's part of the cost.
And they'll they'll buy the rightway. But uh a lot of the rightway they
already have because they've got County Road 50. So and and that I don't know
who actually owns the land behind the ball fields whether that's whether they
already own that or not. But there there is some people in Tabernac who are not
very happy about this but I'm I'm not going to get involved in that.
» The tabernac >> any other questions?
I'd be happy to talk to any of you individually. I'd love your ideas. uh
you know, we just want to listen and and it's a big open tent. Uh I've had a lot
of people in the community that have development experience who've come
forward and said, "We'd like to get involved in this one way or the other,
either from a you know, well, I'll just say we've got a lot of help." That's
good. >> All right.
» Thank you. That's great. Thanks. >> Thank you. Thank you.
» Oh, here comes the train. About to close the door. Um, resolution 2026 0803
on-site distribution extension Excel public works facility. Paul,
good evening, mayor, board of trustees. Paul Johnson, public works director for
Frasier. Uh, the matter before you is the on-site distribution extension
agreement with Excel Energy. So very similar to what we did with not parks
electric to get electric run. Uh this is the um agreement for Excel to bring gas
to the public works facility. They would be coming from their line currently in
Alderbrook and they'd be doing a railroad bar bringing it down the
southern property line and then up the western property line to the uh
cemetery. Part of their agreement is they have to run gas all the way across
the property. So they've uh finally got that all worked out to us and sent that
over to us. Um that comes at a cost of $188,617.
So the idea is to handle it the same way we did with Mountain Parks, get the
infrastructure run, and then once the coops are issued, we have we can go back
up to three years to recoup costs. So um basing this on keeping this project
moving forward, all the work we've done over the last two years is just to keep
this moving forward. So wanted to bring that to the board for uh managers
authorizing the manager to be able to sign that agreement with Excel.
» So I'm curious on the the bore is that's part of this 188,617.
» Yeah. So in the packet where it shows um the gas man was the title of this.
» I got the map. I printed out the little map thing which is cool.
» So on that one right there it includes a boar in green, right?
» Yep. So, I was talking about they're going to do a boar and then they're
going to run the they would bury the the rest of it there, but a boore under the
railroad at 12 feet deep and they require their own bore. So, they
wouldn't uh be able to use any of the five that were existing
» in the same easement though. >> Are they going to get their own new
easement apart from Grand Park? Um, back when those boards were put in in
the early 2000s, Grand Park approached Excel and Excel says they do their own
BS so they >> they put one in right next to the
existing five that are there that bring water, sewer, raw water, comms. Um,
it's another one blanket.
» Any other questions?
I'd like to make a motion to approve resolution 2026803
on-site distribution extension for Excel public works.
» I'll second. >> Any further discussion? All in favor?
» Any opposed? Okay. Passes.
» Thank you. >> Thanks, Paul.
» Quick one. All right. Resolution 2026804 IGA with Gran County Clerk for November
2026 election. Antonet.
» Hello board and trustees again. Antinet McVey town clerk.
So I wanted to bring the IGA back with the county to coordinate the election. I
have done further research um on the election. Um so the background is the
voters approved ballot question 2A November 5th 2024 to move the regular
municipal election from April to November and even numbered years. 2026
will be the first municipal election to be held in November of this year. Um at
the last meeting I raised concerns regarding the Grand County clerks clerk
and recorder's ability to protect the integrity of the voters and the clerk's
ability to understand and follow the uniform election code of 1992 and the
Colorado municipal election code of 1965. title one of the Colorado by
statutes. Um the board discussed um my ability to administer the 2026 election
as a standalone election and not coordinate with Grand County. In further
researching the option, I spoke with the county clerk's office regarding the use
of the ballot box at the Frasier Municipal or the Frasier Metropolitan
Recreation Center. I inquired if it would be possible to simultaneously use
the ballot box for the county's administer general election and the
Frasier municipal election each having separate ballots. Um they told me they
spoke with the secretary of state and it was determined that it was not possible.
This would raise security issues with the ballots. One entity receives another
entity's ballots and I concur with that concern. I'll be honest, I don't know
that that's totally accurate the information that they told me from the
secretary of state but that's what they've told me. Um, so it leaves
Frasier with no ability to use a ballot box um outside of the available 24 hours
and and be outside and be available for people to be able to drop ballots 24
hours a day. >> Um, if the board would have a mail
ballot election, the only place to drop off a ballot would be here at town hall
and people could only do it Monday through Friday during business hours.
Um, I I would be concerned the limited days and times to return a ballot. um
the voters could be disenfranchised or confused about what to do with their
ballot. Um the residents of Frasier have used the ballot box at the recreation
recreation center for many years and I know that they're used to dropping
ballots there. Um and I'm concerned that Fraser standalone ballot could get the
ballots could get returned to the recreation center and they potentially
don't make their way back to Frasier and maybe don't even get counted. I would
hope that wouldn't be the case, but I just don't know. Um the and another
option the board could consider would be to have a polling place election. Um
this would require residents to vote in person the day of the election. No
ballots would be mailed. Um the town of Frasier hasn't conducted a polling place
in election in at least 20 years. Um a polling place election could also
confuse voters why they receive a general election ballot with no Fraser
trustees. and a polling place election I think could result in lower v voter
turnout and again additional confusion with the voters. Yeah, that is what I
absolutely want to avoid. >> So I'm recommending that we go ahead and
coordinate the election with Grand County and approve resolution 2026804
um the IGA regarding the conduct and the administration of the November 3rd um
2026 election. Um by coordinating the election the voters would receive one
ballot with a clear instruction of where to return it. This could could eliminate
any confusion for the 20 26 November election. Would also recommend that
Frraasier, the town of Frasier research installing an exterior ballot box here
at town hall. Um that could be used in future elections. At this time, there's
no way to get one in before the November 2026 election of this year, but I think
that we could potentially do that before the 2028 election in two years. So, the
board really has, in my opinion, the two options. we coordinate with the county
or we do a polling place election. I think that those are really the only two
options that the board has. >> I'd like to make a motion to approve
resolution 20260 804 IGA with Grand County Clerk
for the November 26th election. >> Second. Is there further discussion on
this? All in favor? I
» thank any opposed. I >> appreciate your concern. Yeah. Motion
passes. All right,
we're on to updates. Comm uh we got committee minutes listed. Any updates
from staff? >> Uh Paul's got a few for us.
» So I want to get to give a quick update on the utility billing. Uh the board had
requested us to move to monthly building billing. Um, so our billing software,
Cassell, uh, in communication to Becky today, uh, stated that it'd be possible,
but it's possibly a three-month process for them to make that switch at a cost
of4 to $6,000 for that transition. Um, so just wanted to know if the board
wanted us to move forward with that. So they probably would not be able to go
billing until fourth quarter, maybe first part of the year, just the way
that system is set up. It's not extra work on our end, but the system, I
guess, is not set up to do that. So, um, they had a long list of items that would
be required that we would need to do. And so, they're say it's 20 to 30 hours,
they say at $200 an hour. So, don't really know what it's going to look
like, but we can still pursue moving to monthly. Um, just there would be a cost
involved now where we didn't think there was one before.
» That's a one-time cost. >> Onetime cost. Okay.
» I think we still move forward with >> Yeah. forward.
» Yeah. I think we already decided we're going to get we're going to have monthly
billing, right? Yeah. So, okay. >> Even know there's an expense that be
attached. >> Yeah.
» Yeah. And we'll update communications with the community to let them know that
we're moving forward with it, but it will be delayed. So, they can expect to
see that likely hopefully beginning of 2027.
So, when we went to notify the community about the our increase in rates for
people that use more than um
it might have come through the billing. I didn't look at my usual app that has
my billing, but I never got a separate email that just told me about it.
» Yeah. >> Talked about that.
» Oh, have you? >> No. And we apologize for that. Becky um
was looking into the the gazelle work that she has to do with our
updating our our contract. So that mailing has not yet gone out
» um in terms of because it was supposed to confirm the monthly billing. So she
will send something out um and we'll let people know that the monthly billing has
been delayed but that the increased fee structure is in place um based on the
drought pricing. >> Okay. So, people really didn't get a
heads up on the increase in fees for our drought pricing.
» They were supposed to, but yeah, we posted it on social media, but we I
don't believe it's gone out. So, >> should we charge it if we haven't
» notified everybody and 20 it's been cut 20%. I don't know.
I just seems like >> I think notice that
» you agree with me. Well, I mean, just that was my objection to the last vote
we had on this because we didn't have people don't have visibility to their
usage. We didn't move the monthly billing. They weren't notified and now
we're in a situation again. I didn't think it was ready ready
for prime time and it's and it's not. So, are we backtracking or I mean, I
don't know. I do feel like that's a little bit of surprise billing for
people that >> don't know. And there's just been
» a lot of confusion and a lot of misinformation or no information about
the change. So, >> and right now the website just says
upcoming rate change. It doesn't say. It says bolo for an email watering
restrictions upcoming rate change. >> But you have to go to the website.
There's no >> if you got a water scope if I think it's
already changed to monthly. You can pull up monthly. I mean think
for August it's sort of changed but people haven't been notified especially
by the rate change I guess is the other thing.
» So has that rate change been built into our program yet that Becky uses for
billing or not? I'm guessing not. And if it hasn't been, I don't think we
should charge people for that rate change. If the drought sticks, we'll
make it happen next year and make it part of our policy and make sure
everybody gets notified and they know that this is how it is when we are in
drought conditions. >> So Paul, can you update us on usage?
It'd be interested to know when we made the change
» for watering how much of an impact. I don't have an update other than what I
did last board meeting where there was a 20% uh reduction in irrigation use. We
had a massive decrease once we started the social media campaign.
So I I would say that I got no notice whatsoever uh in Kremling. It was social
media only posted on the website and um two day a week watering same as what
we've done. So, unless I I mean, I'm signed up for the alerts, so I get those
alerts when they they post something, but um I was not notified via a separate
um email. And Water Scope's always going to
give you monthly. It'll give you daily usage. There's no change in Water Scope.
Now that you have Watercope, you can see your usages. It's
not uh
» We'll continue to pursue getting monthly billing.
» Yeah.
Next update. >> Can we get something out right away? I
mean, can we send something out? I mean, it's it's it's only a week into August,
but if we're not going to change the rate, we're going to continue double on
the rates. We got to let people know >> and I think we could send something out
tomorrow. Um, and again, something was supposed to go out. So, I apologize that
has not happened. It's been We're kind of in a situation now where it's been on
the website and social media and at picnics. So, some people have seen it,
but I agree that it should be emailed to everybody
» given that we're 5 days in. I would think people have not moved into that
second tier yet where that increased >> rate has happened. Um, I know when I
talked with Becky today, we wanted to update the board about the monthly
billing status and then we're going to send out a communication letting people
know that while this was discussed, this is going to be implemented in 2027.
Um but that all other drought restrictions were in effect with that
billing information. >> Yeah. And then spelling out what the
tiers are and what the costs are. >> Correct. Yeah.
» I think the Well, you need to get it out this week or don't charge people.
» That's kind of my opinion. >> Yep.
» The travel restrictions, did that get mailed out to everybody?
» I don't remember nothing either. >> No. Oh, and again, I think I think they
were waiting to sort out the monthly billing and thought that that
communication had gone out, but it hasn't. So, it's just been through
social media and picnic and on our website.
» Okay. Thank you. >> And I guess
» make it so I'm not 100% sure if the drought restrict the initial drought
restrictions were supposed to go out if that went out or not. But if you have
not seen them with your water bills, >> I got I didn't get it mailed, but I got
it in a text with a link for the travel description,
» which is a good point. Do you know, Paul, because I know Lucas has put a lot
of effort into contacting the people that are in tier 2 and tier three or
that are getting close to tier 2 and tier three. Um my understanding is
notifying them that they are approaching those levels where that drought pricing
does take effect. >> Yeah. Lucas is calling anybody that's
using a lot of water. It doesn't he's as soon as he sees excessive use in a on a
like he gets if he gets a flag that there's been a he tries to make those
phone calls. Um, I know he made a phone call just this week um to somebody and
um he said, "It looks like you're using you have a toilet flapper that is
leaking constantly." And the property owner said, "Yeah, that toilet is making
a lot of noise." And but that's that is a significant amount of water if that
when that toilet runs non-stop for 24 hours a day for weeks at a time. So,
yes, Lucas makes phone calls to try and make people aware of their water use so
that nobody ends up in tier 2 without their knowledge of doing it. Okay.
» You know, >> willingly going into those tears.
» Thank you, Luka. >> Yeah, he's been super proactive on that
individual basis, right? Yeah. >> I had a a friend with a rental that he
got a call from Lucas and our friend went and looked and he's like, "Sure
enough, toilet's leaking." So, same deal. Like,
» it's it's impressive. It's working. >> It's working.
» So, people that are in jeopardy are notified.
» I mean, it's really more irrigation than it is. Well, it doesn't matter, but it's
getting notified. >> Every lot in Grand Park and Rendevous
gets to irrigate 250 square feet. >> That's our water right.
» Well, Rendezvous doesn't irrigate other than drip systems.
» Yeah. Nobody has >> But that's just the water that serves
that system is is those developments. Every EQR gets 250 square feet of
irrigation and the quantity is not even enough to sustain blueg grass. So, so
you're kind of in a real interesting situation where everybody wants blueg
grass, but our water right doesn't support it,
» right? And it's limited to a very a parking spot basically.
So, you know, it's one of those things where I I think unfortunately if you're
putting in an expensive irrigation system and putting it in your entire
yard, it's a poor investment.
Well, so back to where we are with notifying people about the drought
restrictions and now with fees increasing and all that. I mean,
what do we do with that? >> I think we send out an email tomorrow,
but it does sound like everybody who is in jeopardy has been notified. So, at
least, you know, >> nobody's been is hanging out, right? not
on notice, >> right?
» I mean, I got a phone call, so I need um >> Okay.
» I had to lower my my watering, so yeah, that's good. It's fine.
» All right. Works for me. >> Mhm.
» I have several more. >> Can get it out.
» U >> I'll be looking for my email.
» Um second one, um just let everybody know that the filter plant at the
wastewater treatment plant is turned back on on Monday. So, they will do uh
they'll work with Tetrate Tech um and the supplier to make sure everything's
running perfectly and then we will notify Northern Water that we're back
online and start uh collecting that revenue stream again. Um Clayton Court
is scheduled for paving on August 24th. So,
» with good weather, it's not the end of the project, but um if you drive by
there, you'll see our nice red sidewalks and our our new rollface curb um with
the uh JNL property acquisition that that is going in. So, uh right now we've
got some subgrade problems which was to be expected on Clayton Court on
everything we've seen with the waterline install, the strong construction.
There's just a lot of organics in there. Um so, working on that, but the August
24th is when paving is scheduled. Um barring any delays with weather.
And then uh today actually I received the uh 60 to 80% design plans for the
exterior bathroom access here at town hall. So I'll be reviewing those this
week and um getting those so we can at least get that out to to bid and
hopefully try and get somebody lined up to get that work done. And then lastly,
uh I don't know if anybody noticed the wiring at the bathrooms today, but the
security cameras are being installed starting today. So hopefully we'll have
uh cloud-based security cameras out there. And then a motion sensors in
inside the uh all three rooms to make sure that no there's nobody in there
after hours. >> What about during the day?
» Well, they're unlocked during the day, so I can't do anything about that.
» No, I'm thinking the cameras. >> Well,
» any any chance of somebody peeping at the cameras during the day?
» Looking at >> if they're shining in the bathrooms.
» No, there's no cameras in illegal kind of cameras are outside. Just the
motion motion detectors inside motion detectors are inside.
» Yeah, it was pointing towards the doors. >> Good. And
» I do think that we should not invest into that job until we've addressed our
budget and see where we're at this year and our sales tax dollars.
» I >> Which job? Because
» oh >> the project put
» doing the bathroom access outside. >> We did set some funds aside in the
budget for that but got to make sure it's enough.
» Okay. From for this year >> yes
» that we have. Okay.
» That's all my updates. >> Oh, that's it. Okay.
» Okay. >> Board. Any updates?
» Sarah? >> We are looking to make an offer to an
assistant town planner. So hopefully at our next board meeting we can tell you
that that individual has accepted. Um the assistant town manager position is
posted. Um we've got started getting some applications in for that. Uh we
have not yet had anybody pick up petitions to run for board member seats.
Oh, we did. Oh, good job. All right. We have one one person. So, um, board
members that are running for their seats, please make sure you pick up your
petitions. And if there's anyone you would like to encourage to run, uh,
please send them our way. >> When's the deadline
» to pick them up? >> Get it back.
» That's when they're due. Oh, okay. >> They're available now.
» Okay. >> Yeah. Soon.
» And I just went back through my emails. There was an email that went out on July
6th about the mandatory water restrictions. So that was
» restrictions just on a rate increase. >> No, the rate. No, no, the rate.
» It was after the first board meeting. >> So, uh, July 6th,
our bills, >> our bill came out.
» Okay. >> So, it did.
» That did go out. >> Okay, that's good.
» Thank you for for that. And Lewis, I did figure out or I looked at where that
confusion around the HOA watering was coming from that you had brought up at
the last board meeting. So, I know I emailed you about this, but just for
everybody's clarification, um it had listed commercial buildings, multifamily
properties, and HOAs as having their own watering days that was meant to be HOA
common spaces. Um, so like if there's a grassy area that is maintained by an
HOA. So we've cleaned up that language to specify that. So any single family
residences should be on odd or even days.
» So you can do that. That's the flyer that went.
» Yep. And so that's when we've updated just to say HOA common areas.
» Right. Thank you.
» Yeah. >> Just two quick um updates. I'd like to
give a shout out to Jeff Lundy who made these beautiful staff tables for us.
Yeah. >> Um he did them here in the workshop. Um
and then uh Zimmerman, right? >> Christian
» Christian received his class C water license um at the wastewater treatment
plant. >> Awesome.
» Yeah. >> Hey,
» nice. >> Cool.
» All right. We need to move into executive session.
I'd like to make a motion to enter into executive session for the purposes of
determining positions relative to matters that may be subject to
negotiations, developing strategy for negotiations, and or instructing NO
negotiators under CRS section 24-6-424E
regarding the joint facilities oversight committee agenda review, including town
manager Sarah Katanzerite and public works director Paul
Second. >> Any further discussion? All in favor?
» Any oppose? >> Okay.
» Um, this will be recorded. >> So, but stop.
» You don't get
» It's really weird.
» Yes.
The week we approved