[4:40] Hold
[4:56] on.
[5:02] » All right.
[5:09] Good.
[5:13] » Like to call to order the Town of
Frasier Board of Trustees meeting
[5:16] Wednesday, August 5th, 2026 at 6 PM. Can
I have a roll call, please?
[5:20] » Adam Quickland,
>> Peggy Smith, Julie White,
[5:24] » Lewis Gregory,
>> Katie Souls,
[5:27] » and Brian Cirven. Um, could I have a
motion to approve the agenda, please?
[5:31] » So moved.
>> Second.
[5:33] » Any further discussion? All in favor? I
I
[5:36] » Any opposed? Okay, motion passes. Could
I have a motion to accept the consent
[5:42] agenda which includes the minutes for
July 2020, sorry, July 22nd, 2026 and
[5:48] resolution 2026 0801
approving revocable license agreement
[5:53] with Rendev Community Association.
>> So moved.
[5:57] » I'll second.
>> Further discussion?
[6:00] All in favor?
>> I.
[6:02] » Any opposed?
Okay. Motion carries. All right, we are
[6:06] moving on to open forum. This is for
business not on the agenda. Anyone in
[6:10] the room that would like to approach the
board to uh talk about a topic that is
[6:15] not on the agenda, feel free to approach
the podium or if you're online, raise
[6:19] your hand.
[6:25] All right, seeing none, we'll move on to
discussion and possible action regarding
[6:32] » resolution
2026
[6:35] 0805
accepting the resignation of a trustee
[6:39] and filling the vacancy. Antonette,
[6:55] » mayor, board, and trustees, Antonet
McVey, town clerk. Um, so tonight we're
[6:59] entertaining a resolution 2026805
to fill the vacancy from the resignation
[7:05] of Katie Fischer um and the board. So
Katie Fischer resigned on July 15th,
[7:11] 2026 and that was effective the same
date that she resigned. Um and the
[7:17] statutes do allow the board of trustees
to appoint somebody. Colorado uh revised
[7:21] statutes 31 314 3031.
Board of trustees has a power by
[7:27] appointment to fill vacancies in the
board or any other office and the person
[7:31] so appointed shall hold this office
until the next regular election or until
[7:35] his successor is elected. Our next
regular election is November 3rd, 2026.
[7:41] The board also has the power to fill the
vacancy in the board and any other
[7:44] elective office of the town by ordering
an election to fill the vacancy until
[7:49] the next regular election or until the
successor has been elected and has
[7:53] complied with the section CRS 3441.
Um, so this resolution officially
[8:00] accepts the resignation of Katie Fiser.
Um, and in your packet, we only received
[8:04] one application, which was Kenneth
Jensen. Um, he is here this evening. If
[8:09] you guys would like to ask him any
questions um before considering um who
[8:14] you would like to appoint to the board
this evening,
[8:19] » I guess I'm not going to sneeze. All
right. Um All right. Um well, great. I I
[8:25] think it would be great to hear from Ken
a little bit if you want to
[8:29] » tell about yourself, introduce yourself
to the community.
[8:34] Good evening. Uh, I'm excited to be on
board and uh, I think I can bring a lot
[8:39] of experience. Um, I grew up in a small
town in Montana, so I'm used to the, uh,
[8:47] small town atmosphere and, uh, helping
out communities and, um, former business
[8:54] owner, former banker,
um, kind of a finance guy.
[9:00] So, um, think I can, uh, be a good
addition. You guys like,
[9:07] » great. You guys have questions?
>> Tell us about and everyone who's
[9:11] listening, your current involvement
within the Fraser Valley community.
[9:16] » So, I am the vice chair in the Fraser
River Housing Partnership. Fraser River
[9:22] Valley Partnership. It's always a
mouthful. Um, been with them since its
[9:29] inception.
and uh been working on obviously
[9:34] supporting St. Louis Landing, New
Village, um you know, Habitat for
[9:39] Humanity development that's going to
take place up in Grandi. um you know
[9:44] very interested in making sure that we
do have what I call attainable housing
[9:51] in this county and uh we are currently
undergoing a housing assessment for the
[9:58] whole county and uh we're going to try
to get more data on what is really
[10:04] needed in this county and so
I've been involved in that. I'm also
[10:10] involved in an impact fund with Graham
Foundation. Um and uh I've enjoyed being
[10:17] involved in that. And then uh outside of
that um just been currently retired
[10:25] working on my house.
>> I just finished a huge project mitigated
[10:29] my whole yard which is about acre and a
half. So um I just finished that
[10:35] yesterday. So this is time.
>> [laughter]
[10:37] » Congratulations.
>> That's great.
[10:41] » Okay. Thank you.
>> You bet.
[10:43] » Any other questions?
>> No. Thanks, Ken.
[10:52] » I'd like to make a motion to appoint uh
Ken to the board.
[10:56] » Well, we have an official resolution on
the table.
[10:59] » 20 26805
accepting. That was the resol. No.
[11:05] » Yeah. So, it both accepts the
resignation of Katie Fischer and then
[11:09] there's a blank that says the board of
points.
[11:11] » Okay. And filling the vacancy with Ken
Jensen.
[11:17] » Second.
>> Any further discussion? All in favor?
[11:21] » I opposed. Right. Welcome, Ken.
>> Hey.
[11:25] » All right. Thank you.
>> We're scar you in right now.
[11:28] Ken, if you want to sit down
>> official.
[11:36] » Um, would you like to raise your hand or
pajar?
[11:39] » Um, and just repeat after me. I Kenneth
Jensen
[11:41] » I Kenneth Jensen
>> do solemnly affirm
[11:44] » do solemnly affirm
>> that I will support the Constitution of
[11:46] the United States
>> that I'll support Constitution of the
[11:49] United States
>> and the state of Colorado
[11:51] » and the state of Colorado
>> the Frasier Town Code
[11:54] » the Frasier Town Code
>> and faithfully perform the duties of the
[11:57] office
>> and faithfully perform the duties of the
[12:00] office
>> of town Frasier Town Trustee upon which
[12:04] I am about to enter
>> of Frasier Town Trusted of which I am
[12:08] about Congratulations.
>> Thank you.
[12:15] » Welcome aboard.
>> Awesome.
[12:17] » Thank you.
>> Yeah.
[12:21] » Yeah. Oh, I think it's I think it's Matt
Ginsburg. It's just
[12:25] » kind of freaking out.
>> I'm sorry. Annie Ginsburg, could you
[12:28] please stop raising your hand and
putting it down? Thank you.
[12:33] » It's probably a cat on the keyboard.
[12:39] Um, okay. Moving on to resolution
2026802
[12:44] approving Grand Kids Learning Center
lease for St. Louis Early Childhood
[12:48] Education Center.
>> Sarah,
[12:53] » uh, good evening board. Uh, Sarah
Katanite, town manager. So, before we
[12:57] jump into the lease, we do have
grandkids with us um to give just kind
[13:01] of an update on what's been going on
with their organization. Um, they've
[13:05] also put uh together their budget with
their actuals and kind of their
[13:08] projected budget for the buildout of St.
Louis. So, we're going to walk through
[13:13] that. The board's welcome to ask them
any questions and then we can go through
[13:16] the terms of the lease. Um, if the board
is comfortable with the lease as is or
[13:21] there's kind of minor revisions, we can
make those and approve them. If we need
[13:24] to bring the lease back after further
discussion, we can do that as well. Um,
[13:29] but I would like to invite Anya Cliss,
who is the new executive director of
[13:34] Grandids and her team to go ahead and
kind of let you know what's been going
[13:37] on with Grandids.
>> All right. Yeah,
[13:43] » thanks. Yeah, come on up.
>> And I'll just throw in as well before
[13:46] any gets started that we also have Megan
Liddine with us this evening um who's
[13:50] been working with grandkids and has come
to just kind of answer any questions she
[13:54] might be able to.
>> Well, hi everybody. Thanks for having us
[13:58] here today. My name is Ana Kliss. I'm
the executive director of Grand Kids
[14:02] Learning Center as of February this
year. Um, a little history about myself
[14:06] with the organization. I've been with
Grand Kids since 2020. Um, sort of as an
[14:12] assistant teacher, stepped um into the
site director role um not too long after
[14:17] that. Worked in that role for about five
and a half years or so. um and then am
[14:23] now the executive director and excited
to be sharing um where we're at within
[14:28] the organization and where we hope to
go. Um I won't read you our our little
[14:34] one pager. It was in your your packet.
Hopefully you had a chance to to review
[14:38] that. Um but a little bit about where we
are at right now. We operate out of
[14:43] three locations. Um the red building,
which you're familiar with. I'm sure you
[14:47] hear the kids running and screaming each
and every day. Um, we operate out of a
[14:53] Witi Meadows complex building that
houses three classrooms. Um, and then
[14:57] our most recent addition is our Graanby
location which opened in February of
[15:01] 2024. Um, across the board, we currently
have capacity for 96 licensed child care
[15:08] spots. Um, we are currently serving 64
local families. Um, our capacity can
[15:15] serve 16 infants, 16 toddlers, 19 um,
older toddlers, we call them junior
[15:21] preschoolers, that's that two-year-old
um, age group. And then 42 preschool age
[15:25] children. Um, our board of directors,
which I have two of them here with me
[15:30] today, Bethany Lashley, our treasurer,
and Rebecca Redell, our board president.
[15:35] Um, our board has really prioritized
staff retention. Um, several years ago,
[15:39] that was a huge detriment to the
organization. we were having to close
[15:43] classrooms. Um really struggling to stay
afloat. At one point we weren't sure if
[15:47] we were going to have to close a whole
building. Um so the board realized that
[15:51] was going to be their ultimate priority.
Shifted the focus there to
[15:54] sustainability and since then have um
kind of made it through each school year
[15:58] with an 85% staff retention rate. Um
which in the early childhood field
[16:02] that's pretty huge. Um I would say that
retention rate is a little bit higher
[16:06] with um those in leadership roles as
well. Um, and right now we're averaging
[16:11] at about 30 to 35 full-time employees.
Um, right now we hold on Eastern Graham
[16:17] County um, 100% of community based
infant slots. 35% of our families
[16:22] qualify for income based tuition
assistance, but 51% of our families are
[16:26] receiving tuition discounts um, from
state programs and then internal
[16:30] scholarships, too.
That's a little bit about where our
[16:35] organization is at. Um, and we are
hoping that we can move into St. Louis
[16:42] to continue to serve the greater Grand
County community. Um, especially in the
[16:47] Frasier, Winter Park, Tavern area. We
think that's going to be where child
[16:52] care is currently really needed. uh that
would not only double our license
[16:58] capacity in our Frraasier educational
campus, but it would also um bring about
[17:04] 15 new teaching positions um available
in the community um and gives us
[17:09] opportunities for school age um summer
programs, opportunities for after school
[17:13] care for local families. It really opens
the door for grandkids.
[17:20] It's
>> great. Thank you.
[17:27] Bethany, did you want to walk through
some of the numbers?
[17:36] So, Bethany Lashley, treasurer. Um, been
on the board for two years now, heading
[17:42] into three. Um, we have worked a ton on
our budget recently. So for those of
[17:50] you, it was about a year ago that saw
what we were looking at. Um, lot of
[17:54] negative numbers. Um, some questioning
of grants and how we were presenting
[18:00] those revenues and those income streams.
So if you looked at this packet, you may
[18:05] have been surprised to see our positive
numbers that were coming up. And a big
[18:11] part of that was thanks to Anya and our
staff as she came on board going through
[18:17] our expenses, really tightening some
things up for us, renegotiating some
[18:21] contracts with some of the members in
the community. Um, great great things
[18:25] that have happened. Um, including a new
roof on our red building. If you guys
[18:29] have seen that, that has been amazing.
Um, who roofing company, right? Roofing
[18:34] company donated that to us. And so our
team has really been strong at reaching
[18:39] out more
>> now and getting that community
[18:42] involvement which has been great. Um the
other part of that was going through and
[18:47] really looking at what our grants looked
like over the last three years and
[18:51] trying to put that commitment to paper.
So we were always very conservative
[18:56] before worried about will that money
really come in being that it's a grant
[19:01] and now we've really taken that focus of
yes here's what we have gotten here's
[19:05] what's been committed to us and then
also realizing that that could fluctuate
[19:10] within the county over the next year and
us being able to keep a better finger on
[19:13] where those pools of money are and shift
if we need to. So, we're starting at a
[19:19] base of 350,000
of that we are willing as an
[19:23] organization to work on getting for
grants to help offset that tuition is
[19:29] that's coming in. And with that, we're
looking at starting a positive cash
[19:34] flow. And we also think that's
realistic. This is a lot of time and
[19:37] effort we put into this and we think
that's great. So, um, if you looked at
[19:42] our budget to actuals, you can see that
starting to happen already and see that
[19:47] we're up at 200, I know that one, pardon
me, 250,000,
[19:51] a little more that we have already
secured this year, which has been
[19:54] wonderful. So, part of that town of
Frasier as well. So, thank you guys. Um,
[19:59] going into our budget, so this is in
your packet. Um, so our projections for
[20:04] 2027 when we would enter St. Louising um
up through 2032. Um you can see overall
[20:12] for our facilities we have been able to
get into a positive role with those. Um
[20:19] this includes our teachers being at a
salary that we are comfortable with that
[20:26] it's actually getting them to that
livable wage. I know we have a teacher
[20:30] extension, but I don't remember that
that exact name um that's coming in that
[20:34] will actually help us get there as well,
but we are able to calculate those
[20:38] payroll and those benefits. Um still
coming in at about 85% of our total
[20:44] expenses. Um but our teachers will be
where we want them. So again, if you
[20:50] remember our previous budgets, we had
where we were at and also where we
[20:54] wanted to be and there was a huge
disconnect in getting our teachers where
[20:58] they wanted to be. And now we are there
which is
[21:01] » great
>> very exciting.
[21:03] » Um I also did a breakout here for St.
Louis itself because I know that was
[21:09] really important for you guys to see the
impact of just that building on
[21:13] grandkids as a whole. Um some of the
numbers like our tuition um are solid
[21:18] numbers that would be coming in. Some of
them are a percentage base of um income
[21:24] that's coming in. So some of our
expenses, how we have them broken out is
[21:28] based on the income that St. Louis
Landing would be bringing in versus the
[21:33] whole organization. So those were our
assumptions there to try and get us to
[21:38] the correct um number. Um you can see
obviously 2027 and 2028 is a little bit
[21:46] lower, but that's as we're
transitioning, as we're getting into the
[21:48] building. um that accounts for us having
a lease still over in Wedi that we're
[21:53] then going to have to get out of and we
will do our best to minimize that cost
[21:56] once we know exactly when we're in that
building. Um but all of that is
[22:00] accounted for and actually under this
budget for St. Louis. So you can see
[22:04] that effect um scaling as we scale up
through the kids um you can see that we
[22:10] are actually doing better. I know that
was another big question previously is
[22:14] as we scale up and get more kids are we
financially doing better or worse and
[22:19] reflected in here we are doing
significantly better which is great as
[22:23] well. Um another
assumption under there was the rent for
[22:30] the building which I know this will come
up with you guys. So that first three
[22:33] years we did account for that $1,000 a
year rent um but then I scaled it up to
[22:40] $24,000 a year. starting in 2020. So, we
are looking at being able to accommodate
[22:45] more rent and looking at that expense
and still doing well.
[22:50] Um, all right. Anything else [laughter]
at the moment?
[22:57] » Yeah. Hey, I was just curious, what do
what do you pay for rent currently?
[23:02] » Hold on. You might have top of your
head. If not, I can.
[23:04] » Monthly, we have been paying about
3,200.
[23:09] » This is just that are
>> Yeah. Treasure, right?
[23:13] » Yeah. However, it did increase or it
will increase um for August.
[23:20] » Oh, is this at over at WP?
>> That is correct.
[23:22] » Yeah.
>> But it um it averages about 36,000
[23:27] annually.
>> 36,000.
[23:30] And your expenses, I don't see a
separate line item for rent. You just
[23:34] have it all bunched together under
operating expenses.
[23:41] um just for the summary. I think that's
how that's presented, but we definitely
[23:45] have it broken out within our expenses
and financials.
[23:51] So, if we need to do further breakdowns,
have to.
[23:54] » Yeah.
[23:57] » Um and I guess that's another point we
haven't made too is um financial
[24:01] transparency across all of this. Um,
we're working on getting reviewed
[24:06] statements, you know, for 2025 and being
able to produce these for you as needed.
[24:13] Um, right out of our QuickBooks program,
like here's our actual, here's our
[24:17] budget, and being able to give you guys
that transparency that you need on an
[24:21] ongoing basis. And so whether that
review is quarterly,
[24:25] annually, what whatever it is that we
decide within the lease and the
[24:29] perspective,
>> no, this is much better than last year.
[24:31] And appreciate you filling in some of
the blanks. We obviously want you to be
[24:36] successful. So, um, do the numbers and
making sure that you're financially
[24:43] viable, right?
>> Absolutely.
[24:46] » Yay.
>> Yeah,
[24:47] » you can you can see the jump from 2029
to 2030 um uh in that operating expenses
[24:53] for the St. Louis dining specifically.
So, yeah, it's not broken out in this,
[24:58] but it's obviously accounted for.
Well, the other issue is around the the
[25:03] buildout. So, you're spending a lot of
money in 2027 on building out the
[25:08] facility
and then in 2028
[25:13] there are no revenues coming. I assume
you're going to still get grants and be
[25:18] able to supplement that.
>> Absolutely.
[25:21] » Okay.
[25:25] » And Lewis, they do correct me if I
mistake this. They do have their
[25:28] buildout right now separated out from
their larger budget. So if you scroll
[25:32] down to the last page, that's a budget
specific to their their buildout.
[25:37] » Yeah. No, that's what I'm looking at.
>> Okay, great.
[25:39] » But it's a negative number.
[clears throat] They have a gap there
[25:43] that they need to fill.
>> Yes.
[25:46] » Yep.
>> And we'll be talking about that in a
[25:51] minute here. Yeah. Okay. Thank you.
Thanks.
[26:01] So, also in your packet is a staff
briefing and then a draft lease um that
[26:06] we've worked on with grandkids. Uh and
then a resolution if you wanted to move
[26:10] forward with approving that lease. Um as
we [clears throat] previously talked
[26:14] about the way it's currently presented,
uh it would be starting out at $1,000
[26:20] per year. Um we've written it as a
15-year term. Um but there is the option
[26:26] to exit that lease early if need be. Uh
it is written such that the rent would
[26:32] not remain fixed and every 3 years could
be revisited by the board and could be
[26:37] raised or decreased at the discretion of
the board. Obviously grandkids would
[26:42] have the opportunity to you know
negotiate that and decide if they wanted
[26:45] to stay with the lease or not. We wanted
to have some guard rails in there. Um,
[26:51] not knowing what the future holds, but
wanting some protections for grandkids.
[26:56] Um, and so right now it is listed that
that maximum rent rate would not exceed
[27:01] 24,000 per year. Um, both that starting
lease and that maximum lease rate is
[27:06] something that the board can discuss.
Um, but those are the starting points
[27:10] that are included in the current draft.
Um, I looked at a number of leases by
[27:18] other communities and tried to build in
some of the safeguards that they had
[27:21] when they had leases with early
childhood education facilities. Um, so
[27:26] there is some reporting requirements and
just kind of ground rules around
[27:30] communication to make sure that town
staff and the board are not
[27:34] micromanaging their operations and
allowing them to to do their daily
[27:37] operations, but that we are in the loop
and making sure that they are keeping up
[27:41] with all of their licensing standards,
quality care. Um, if there is any
[27:45] incidences where the state would need to
be involved that they would have to
[27:48] notify us so we'd have that heads up. um
it does require them to pay kind of
[27:53] their general utility cost, insurance
costs, things like that. Um we'll talk
[27:58] in a minute here about that buildout and
if the board wants to support that
[28:02] through the new market tax credits and
some of those funds that are coming in,
[28:06] but they are ultimately responsible for
that buildout and ongoing maintenance.
[28:10] Um,
I think those are a lot of kind of the
[28:16] key terms, but I'm happy to talk through
any other aspects of the lease or any
[28:22] questions that the board might have.
>> Did you get the insurance requirements
[28:27] kind of from these other leases?
Yeah, we kind of started with a standard
[28:32] commercial lease and then uh the pieces
that I pulled from other town leases
[28:37] have more to do with the specifics of a
child care center operating there. Um
[28:43] the other piece we talked about as well
is if grandkids did want to allow
[28:48] somebody else to use that space um for
something outside of standard kind of
[28:53] grandkids operations that they would
request permission from the town for
[28:57] that and we could look at that if that
was anything where somebody was being
[29:00] you know charged to provide additional
child care services outside of grandkids
[29:04] daily operations.
>> So we allow them to subleasase the uh
[29:09] space. they would have to request our
permission.
[29:15] » So relative to the lease, basically
grandkids has a 60 day out of the lease
[29:25] any any time.
>> The way it is currently written,
[29:30] um it is that both grandkids and the
town may terminate the lease before
[29:34] expiration by providing the required
notice.
[29:38] And so yeah, it is 60 days. But again,
that is something that we could we could
[29:42] change if we wanted to.
[29:49] » What is their current current out? They
have they have to pay what is it through
[29:54] 2027?
Are they stuck in their lease for
[29:58] another year?
>> 15 years. Atwood PD
[30:03] until the end of July of
>> So you're on the hook for $36,000 for
[30:09] next year.
>> Yeah, it's built into our budget.
[30:15] Well, and they the hope is that they can
get some early access once we have a
[30:19] temporary co for that space and
hopefully get in there roughly by the
[30:24] end of the year to start doing some of
that grandkids buildout and working on
[30:28] licensing requirements because that will
take a while. Um, the earliest we're
[30:32] anticipating them moving in to actually
operate would be March. Um, and so
[30:37] really it's the months of March through
July or August that that they'd have
[30:43] that overlap.
[30:49] I mean, the only other question I have,
and we we've talked about this before,
[30:53] is, you know, I don't think the town of
Faser could be subsidizing
[30:59] the bulk of child care in the community
or in the valley without other people,
[31:06] you know, paying their fair share. And I
don't know how you aortion that. You
[31:11] know, Winter Park's kicking in $40,000,
right? Graanby eight, Grand Lake six,
[31:17] but I don't know. You know, we're
providing space for $1,000 a year, which
[31:21] is a real that's a lot. I mean, that's
almost probably 40,000 there, and we're
[31:26] kicking in another 30,000. are we
subsidizing child care for the rest of
[31:32] the valley? You know, and I don't know
how you
[31:37] discern that, but that that would be the
only other thing I would want us to
[31:42] think through is like should we be
charging these other, you know,
[31:46] municipalities or the county or um
subsidizing child care?
[31:54] » So, um I'm going to let Megan jump up
because I see her jumping up. Um, I was
[31:58] going to add uh this childc care
stipened program um that Winter Park has
[32:04] worked with Megan to put together.
Winter Park and the county are putting
[32:08] in larger amounts and we are putting in
a smaller amount in part in recognition
[32:12] of the fact that we are contributing so
much through that building and that
[32:16] lease. But I think that is a fair a fair
question.
[32:18] » Absolutely. Uh Megan Liddine, a director
of the Grand Foundation, thank you for
[32:22] letting me I guess give input context.
um multiple funding areas in child care
[32:30] right now. The 1A community priorities
fund, our priority, every pun intended,
[32:36] um last year and this year is child
care. And so that is an eligible grant
[32:42] opportunity for grandkids to apply to as
well. uh the first round fall of 2025
[32:48] they received a $87,000 grant and this
last uh spring cycle they received
[32:53] $45,110
I think is what you have and that was
[32:56] for a new van because they don't have a
van over at the Graanby location. Um
[33:00] with that being said the Grand County
Childare Strategic Investment Fund
[33:05] that's a mouthful let me talk about
that. Um
[33:08] » that's going to be a for teacher
retention. So it's start actually
[33:12] starting right now. I'm just waiting
need a signature um on theou from all
[33:17] the funding partners but um just waiting
for that and then we'll be looking at
[33:22] the second quarter. So we're going to go
retroactively look at the second quarter
[33:25] of all the staff that has spent more
than 60% of their time in the classroom
[33:31] and give a grant to grandkids and other
childcare entities that are nonprofits
[33:36] only. That money is going to be coming
from the county. Town of Winter uh
[33:42] County is $100,000. Town of Winter Park
is $100,000. Grand Foundation's put in
[33:48] $50,000. And um you guys voted last
month to put in $25,000. So, but with
[33:54] that being said, as you alluded to,
you're doing your your share and then
[33:59] some. So there are other opportunities
along with all the block grants that the
[34:04] towns do provide as well as grant
foundation dollars that um grandkids can
[34:09] apply to and childcare is one of those
very um myopic priorities not only with
[34:15] the grant foundation but with all the
municipalities and the county. So there
[34:19] are other dollars that will be coming in
to grandkids as an entity. And then I
[34:24] just want to add that they have done a
tremendous job with their financials.
[34:28] You guys, I've my background is finance
and I can tell you all the things
[34:32] they've done is just amazing and I
really want you to know that.
[34:36] » How girls I can see I can see this. This
is much better than what we saw before.
[34:42] But
you were all very supportive of child
[34:45] care. At least I am. Um it's it's a
central priority for us. But again, I
[34:52] don't think we want to subsidize the
county necessarily. And I don't know if
[34:57] you can break down
um you know where people live the the
[35:02] ones that you're you know that are in
child care now where they're coming from
[35:07] are the bulk of them from Frasier or
you know uh county or where I mean what
[35:13] are we
>> you know I could not stand up here and
[35:16] give you those numbers honestly I know I
could look at Grand Beginnings and the
[35:20] data that they've put together and come
back to you with that. um they've been
[35:24] instrumental throughout all the
processes of the funding mechanisms as
[35:28] well as with um grandkids as well. Um I
do know that people travel from all over
[35:33] to bring their kids to the open slots
that the waiting lists are quite large
[35:39] and so there are kids or children,
excuse me, I'm not supposed to kids uh
[35:44] children from Grand Lake Graanby that
are attending grandkids as well. So I I
[35:50] can come back to with those numbers, but
I would say that, you know, Winter Park
[35:55] and Frasier and Tavern have a lot of
children and the EEC right now is just
[36:01] for Winter Park employees. And so
majority between the um red building, I
[36:06] guess you call it the learning center,
>> red school. And uh over at Wedi, you
[36:12] know, that's going to be holding a
majority of a lot of the kids around
[36:15] here.
Nate, it's a little bit akin to our
[36:18] discussion around the bus service.
No, and I think we feel like everybody
[36:24] should pay their fair share. We don't
want to, you know, be on the hook to
[36:28] subsidize
anyway.
[36:32] » Well, when you look at when you look at
that buildout and you look at the
[36:35] projected loss, I 198,000 I think is
what I saw. And you know, that's where
[36:41] there are other granting opportunities
that other entities can kick in, right,
[36:45] to help with the buildouts and those
type of things. Or if there's other
[36:48] opportunities there, there's additional
grant dollars that grandkids can apply
[36:52] for. So, I think monies are going to
come from other avenues for other things
[36:56] to keep sustainable.
And over time, you know, whatever the
[37:00] town decides to do, it's it's a
worthwhile investment. Not that you
[37:04] don't know this. I know you all know
this. um for your residents, for your
[37:08] employees and everything.
And I do think we need to also be
[37:14] cognizant that there's a lot of
employees that are at this end of the
[37:16] valley that would love to live in
Frasier but can't afford it, but they
[37:19] work here. They spend their money here
and so it's all part of the community.
[37:25] I'll add as well, I know Graanby
Playdates is in a building that's owned
[37:29] by the town of Frraasier and I believe
they pay a minuscule amount in rent.
[37:35] » I do believe they pay about $10 a year.
I don't know if it changed for 2026, but
[37:41] I know that was 2025's number. Nice.
>> Yeah. And that's serving a much smaller
[37:45] number of kids than St. Louis is. Um the
early childhood education center at the
[37:50] resort is obviously subsidized heavily
by the resort. Um, Eternal Hills
[37:55] preschool program is subsidized by the
church. So, most of the buildings in the
[37:59] county, and I don't think this is
uncommon, are receiving some level of
[38:02] subsidy from either the municipality or
another another entity.
[38:07] » The West Grand School District
subsidizes the space for the West Grand
[38:10] Early Childhood Center as well as
Crumbling Preschool, too. They're
[38:13] located in their schools.
[38:17] » There are free winter parking that
occupy
[38:23] that their children are in the
grandkid center space because there's no
[38:30] space.
>> They have so we also have people go the
[38:34] other way just to get that child care.
>> I'm a little less concerned about the
[38:42] residency of the child and more
concerned about the income and the
[38:46] subsidy of the parents. And it sounds
like you guys have uh turned a corner on
[38:51] that where
and correct me if I'm wrong, but it used
[38:56] to be a fully subsidized program across
the board or and now it's income based
[39:01] or
>> are you talking tuition?
[39:03] » Tuition. Yes. Yes.
>> That that speak to that. But the tuition
[39:06] assistance program is run out of grand
beginnings and then it's based on
[39:11] enrollment I believe per location and
then each entity looks at applications
[39:16] based on the spreadsheet formulas based
on that income level because some will
[39:22] apply or be eligible for UPK dollars,
universal prek dollars. Some will be
[39:28] eligible for CCAP dollar it goes up to
500 of federal poverty level 500%. Yeah.
[39:35] So
>> that's great.
[39:39] I do know that that's that's a going to
be a focus in the future for the grand
[39:44] county childcare strategic investment
fund
[39:48] topic in there
>> that that
[39:50] » we left it uh pretty ambiguous right now
we're just focusing on teacher retention
[39:55] but know that tuition assistance but
again Grand Beginnings has this program
[39:59] so we would just be helping and
supplementing
[40:02] » yeah that strategic plan I thought that
was the the one of the four that you
[40:06] guys were going to leave to the side,
but it sounded like you were almost
[40:10] implementing some things already.
>> So,
[40:12] » it it's going to be a need and as you
add child care spots, tuition assistance
[40:16] [clears throat] is only going to go up.
So, that's again uh community priorities
[40:20] fund and the other funding mechanisms
will definitely be up.
[40:26] I also see a benefit of um having that
daycare in our buildings and our our
[40:34] workforce housing and helping us fill
those units
[40:39] because there'll be people that probably
would love to live there where they can
[40:42] just walk their kids downstairs and then
catch the bus to work or walk to work.
[40:50] And that's a big benefit. We got to fill
it up. can start paying for it now.
[40:59] » That will help us attract employees as
well.
[41:02] » Yeah, absolutely.
>> Hey, if
[41:06] » okay,
>> if Fraser ends up paying a little bit
[41:09] more for the first few years, so be it.
You know, it's kind of like when you go
[41:13] to an auction and they just do the
paddle raise. You know, we're the ones
[41:17] that said we'll drop a million bucks.
Who else is going to join us? Maybe
[41:21] somebody else will follow.
[41:27] Sarah, what did the 60-day notice before
termination
[41:33] play?
>> I mean, it just seems like not a long
[41:36] time frame for us to find a new tenant.
>> Yeah.
[41:44] [laughter]
[41:46] » Um,
so I I worked with Kent's office to put
[41:50] this lease together. Um, that said, I
think the 60 days was really added in
[41:55] more as an out for the town, wanting the
board to feel more comfortable signing
[42:00] on to a longer lease that
uh, you know, if for whatever reason the
[42:07] leadership at Grandid was to change, we
didn't feel like they were offering
[42:10] quality child care, whatever it may be,
that there would be some options. Um,
[42:15] but I agree it's not very long. I think
we could definitely change that and
[42:18] provide more notice to be required.
>> Get a tenant in there in 60 days.
[42:23] » Right. And for
>> it's a bit empty for
[42:26] » I mean that's a big space. What? 8,000
square feet.
[42:29] » Yeah.
>> And there's already a ton of
[42:32] » commercial real estate that's sitting
empty.
[42:34] » Yep.
>> Well, so keep in mind it's a $1,000
[42:36] lease. I don't know if they're paying
monthly for that $1,000 or not, but it
[42:41] doesn't really matter. It I I agree with
Sarah. The 60 days is more for us. If
[42:46] something drastic occurred with
grandkids and we just said we we can't
[42:50] be part of this anymore, then we give
them 60 days to move out
[42:54] » and we find another child care provider
to move in.
[42:57] » Yeah. Well, you guys that would that's
crazy though. Let's say 6 months
[43:02] » on 60 days
>> and do 180 days
[43:05] » something. Yeah. I mean, and I doubt
that we'll even use it, but to make it
[43:10] even the least bit realistic, 60 days is
not realistic. If we did say you're out
[43:16] of there, it's like, oh, yeah, right.
Okay.
[43:19] » Well, you'll probably we'll leave them
and leave it as is. So,
[43:22] » well, if they default and they go
through three defaults and they don't
[43:25] pay their rent, which would be hard for
them not to do, but
[43:29] » yeah,
>> there's a provision in there where we
[43:32] would give them 30 days at that point
where they didn't pay. And so, everybody
[43:36] out.
>> As quickly,
[43:38] » can you bring mic a little closer for
me?
[43:41] » You don't know this.
>> There's a provision there how that all
[43:45] works out. If we wanted to get them out,
it's like a 30-day, you know, after some
[43:50] steps, there's a 30-day out. So,
>> okay. So, that's
[43:53] » But I do agree. I think I think 180 days
makes more sense from a lease
[43:59] perspective. Okay. Yeah.
>> I mean, if we kick them out in 30 days,
[44:02] where are they going to go? I mean,
they're not going to be able to find a
[44:05] spot.
for their operations. I think I think
[44:08] six months sounds all reasonable.
>> Okay.
[44:12] » I mean, I don't think we're going to
want to kick them out, but you know,
[44:15] » say 180 days.
>> Okay. Can I make a motion?
[44:19] » Sure. I want to make a motion to approve
resolution 20206082
[44:25] approving Grand Kids Grand Kids Learning
Center lease with the change of um
[44:34] notice for termination to be 180 days
from 60 days.
[44:42] » I'll second.
>> Further discussion? All in favor? Hi.
[44:47] » Hi.
>> All right.
[44:48] » Opposed.
All right. Motion passes.
[44:51] » Okay. Congrats.
>> Point that I wanted to make. It really
[44:54] it wasn't financial, but uh we as a
group
[44:59] several months ago talked about possibly
naming the playground after Eileen
[45:03] Waldo. And uh I don't know if you were
even part of that or even knew that we
[45:07] had that discussion, but it was kind of
a concept of where's Waldo, which was
[45:12] her tagline when she ran for the board.
So, I thought I'd mention that. And if
[45:17] you guys the mural festival's coming up
and you might find some cute artist that
[45:22] does where where's Walder. So,
>> Waldo's on tucked away.
[45:27] » That is that's a cute idea. All right.
[45:33] » So, I will say the next item up is
related in part to a discussion around
[45:38] grandkids buildout and some funding uh
around that. So we will circle back to
[45:43] that.
>> Okay. So that is St. Louis landing
[45:48] financing update and new market tax
credit overview. Matt NSB clerk.
[45:58] » Matt, I don't see you online, but
Monica, we've made you a co-host.
[46:03] » Hi everyone. Can you see me and hear me?
Okay.
[46:07] » You're a little quiet.
>> I'm a little quiet. Okay, you can up
[46:13] your volume.
>> Um,
[46:17] » and while you're working on that,
Monica, just to give a little bit of
[46:20] context. Um, so new market tax credits
have been part of the overall kind of
[46:26] financial capital stack for St. Louis
Landing for a while now. Um, we wanted
[46:30] to close on the bonds before,
uh, diving full on into the complexities
[46:35] of both the new market tax credits and
the middle- inome housing tax credits
[46:38] that we talked about at the last board
meeting. Um, there also is kind of less
[46:42] risk to investors as they come in kind
of later. Um, but I don't think we've
[46:48] actually really given an overview of
what the new market tax credits are to
[46:52] the board and how they work. Um, I find
them mind-bogglingly
[46:57] complex and convoluted. So, we're going
to try not to get into too much of the
[47:01] weeds, but though maybe that's just me.
Um, but Monica and her group have been
[47:06] lovely to work with. And we invited them
to kind of come and try to give an
[47:10] overview of what they look like. And
then, as I kind of referenced earlier,
[47:15] um, this money, as Monica will talk
about, is specific to building E. Um,
[47:20] and so the money has to kind of go into
building E and there is some opportunity
[47:24] to potentially use those funds towards
help with the grandkids buildout space.
[47:30] Um, so Monica can walk through that and
then I wanted Matt to kind of share uh
[47:35] again just how this fits into that
overall capital stack and what that
[47:38] looks like looks like in terms of
potential buildout dollars.
[47:44] » Okay, can you all hear me better?
>> Yes.
[47:47] » Y
>> Okay. Um, please let me know if that
[47:50] changes. Um, and thank you Sarah for
that lovely introduction. Um, I love new
[47:55] market tax credit financing and I am
thrilled to share it with you all today,
[47:59] but it is complex [laughter]
and Sarah is not wrong to to recognize
[48:05] that. I live in this world every day.
So, I'm going to screen share the
[48:09] presentation
and then I'm going to go into
[48:12] presentation mode.
Can everyone see that?
[48:18] Yes.
>> Fantastic. And you are all now very tiny
[48:23] on my screen and I really want to make
this a conversation so that you all can
[48:28] get what you need out of this
presentation. So, please do not um
[48:34] hesitate to interrupt me. Um you know, I
try to pay attention if those little
[48:38] like raise hand things go up, but I
really am not offended. if you want to
[48:41] kind of break in, I'll try to pause um
and and make this a dialogue where you
[48:46] all can get the information that you're
looking for. So, uh today, real quickly,
[48:52] my goal is to introduce the New Markets
Tax Credit Program, often abbreviated
[48:57] NMTC,
how new market tax credit financing
[49:01] works, the opportunity that it
represents for the the building E and
[49:05] St. Louising the roles of the sponsor
and the financing partners um kind of
[49:11] the key points around the structuring
and then a representative timeline.
[49:15] There is more detail in the appendex um
but again this is meant to be a highle
[49:21] uh introduction. I am more than happy to
geek out with anybody on the details of
[49:25] this financing structure. I think it is
very cool and creative public private
[49:29] partnership um at another time if if
somebody is really interested in
[49:33] learning more. Um so please um feel free
to reach out to me.
[49:40] All right. Shall we dive in? So New
Markets Tax Credit Program has been
[49:43] around since 2000. It's administered by
a part of the US Treasury's Community
[49:49] Development Financial Institution Fund.
It is now a permanent part of the tax
[49:54] code and it was created to stimulate
investment in low-income communities and
[49:58] underserved communities and does in fact
prioritize what they term non-metro
[50:04] communities such as Frasier. Um a
project it is a census trackbased uh
[50:09] program. So the subsidy is ava is
available to projects that are located
[50:15] in qualified severely distressed census
tracks. You can see here in this map and
[50:19] the purple that your project is in fact
in the purple census tract which is um
[50:25] the new market tax credit uh level of um
severely distress that um draws the
[50:32] opportunity uh for the project.
Um new markets tax credits been used by
[50:37] many organizations. I've been working in
this um SPC Clark companies what maybe I
[50:42] should have introduced uh us first. Uh
we're consultants out of Denver,
[50:45] Colorado. We work nationally in our new
markets tax credit practice. Um I've
[50:50] been uh working in the firm now for
about uh 12 no closer to 15 years. And
[50:57] um SB Clark in the name of the firm is
actually my dad, Steve Clark. He's
[51:02] mostly retired, walks the dog, hangs out
with my mom and we have the privilege of
[51:07] working with both New Markets Tax
Credits, which is supporting, you know,
[51:12] high impact commercial projects.
>> [clears throat]
[51:14] » You can also fund some housing like
we're offering suggesting doing in
[51:18] building E. And then my twin sister on
the other side of our firm um works with
[51:23] low-income housing tax credits and
middle- inome housing tax credits. And
[51:26] you might have met her, Laura Clark, um
during the middle-income housing tax
[51:30] credit conversations. So um that's our
firm. These are a number of um
[51:35] organizations I've been honored to work
with over my career here. Um and and I
[51:40] do think you can find a lot of
excitements in new market tax credits.
[51:44] My appro or suggestion is to think of it
as a public private partnership. It's
[51:50] the government's way of bringing private
investment into high impact uh community
[51:57] development activities. And in this case
um building E which includes both
[52:02] affordable housing for workforce
development as well as importantly the
[52:06] daycare. And you do have to have a
certain percentage of commercial
[52:09] activity. So the daycare portion or the
early childhood education portion is an
[52:14] essential piece.
And the idea behind the new markets tax
[52:18] credit program is when there's a market
failure such as it's hard to do
[52:21] development in uh small rural
communities or lowincome communities,
[52:26] the government offered a tax credit to
incentivize private investors. In this
[52:32] case, a group called Capital One,
Capital One Bank. you may know them from
[52:35] your credit card. Um, who is going to
bring cash or um would bring cash to the
[52:41] St. Louis landing project and the
project doesn't have to pay them back
[52:45] because Capital One is going to collect
their return in the form of a tax credit
[52:50] on their income taxes over a 7-year
compliance period. So the private equity
[52:57] comes in and they're paid back through
the government subsidy of a tax credit
[53:01] and you all benefit from that tax credit
equity. So the opportunity for building
[53:09] E is to leverage the costs of the new
market tax credit uh financing. So new
[53:16] market tax credits I think of it as a
funnel. kind of leverage the costs
[53:19] through the public private partnership
and that creates, if you will, the
[53:23] matching grant that is the subsidy of
the new market tax credit and we call it
[53:28] the net benefit because it is the net of
all the fees and costs associated with
[53:33] that public private partnership. The net
benefit that's built into the project
[53:38] that you don't have to pay back because
the tax credit pays the investor back is
[53:43] approximately $3 million. And that's an
approximate number because until we get
[53:47] to closing, there's fees and legal fees
and other things that move slightly. But
[53:53] um at this point um based on the being
able to have attracted the subsidy from
[54:00] two groups, Colorado Growth and
Revitalization Fund, which is a part of
[54:04] Chaffa, which is Colorado Housing and
Finance Authority. Um so their uh new
[54:10] markets tax credit entity is a group
called Colorado Growth and
[54:13] Revitalization Fund and they've promised
to bring a portion of subsidy. And then
[54:18] another group which is enterprise
community development. They go by ESSIC
[54:23] or ESIC which stands for um enterprise
social impact um corporation but
[54:30] enterprise you may have heard of them.
They're also um very active in the
[54:33] affordable housing space. So, two groups
that are um groups that have been in new
[54:38] markets tax credit financing for a long
time and they're bringing the right to
[54:42] the subsidy. So, we call that new market
tax credit allocation. That's the
[54:46] authority from the US government that
these groups won and they've decided to
[54:52] bring that portion of the subsidy to
this project. So, you have an
[54:56] opportunity to leverage the building e
costs and generate this net benefit.
[55:06] It's important I think to call out that
um it's a complicated financing
[55:10] structure because of the public private
partnership and because there's already
[55:15] a lot of um subsidy and support. You all
were just talking about the support that
[55:20] you're bringing um to the uh early
childhood education center. Uh we have
[55:25] worked very closely um we've tried to
work with Sarah and the legal teams that
[55:29] are involved and of course Matt as
developer to really think through how do
[55:34] we structure this in a way so that all
subsidies play well in the sandbox
[55:38] together. And one of the ways that does
that cleanly is that although building E
[55:44] would be financed with the new market's
tax credit financing, um there would be
[55:50] two condo units, if you will, that make
up that. And and it's easy to have that
[55:55] be confusing because there's all these
units of housing. We're not talking
[55:58] about the individual housing units.
We're talking about a residential
[56:03] condo. So this the three floors of the
building that are residential focused
[56:08] and a commercial condo, the ground floor
that's going to have the early childhood
[56:13] education component. And those will
really be operated and you'll kind of
[56:16] look through the layer of leases that
make the public private partnership work
[56:22] by um having Frasier Housing Authority
of course operate the residential
[56:27] portion of the project. That's what
they're good at. That's what they've
[56:30] been established to help do at St.
Louis. And then of course the town of
[56:34] Frraasier and your grants that you've
gotten from Dola and to try to make the
[56:38] early childhood education an
opportunity. That piece of it really
[56:41] kind of looks through to you. So any
questions there on on just the this
[56:47] concept of two parts of one full
building.
[56:54] Okay. So, so now we're going to smush
that that concept [clears throat]
[56:59] together into the layers of the
financing partners that make the public
[57:04] private partnership work. And as I
mentioned, we have to leverage the costs
[57:09] of new market tax credit um financing,
the costs of building E through the
[57:13] structure to generate the benefit. So,
there's key financing ro partner roles.
[57:19] So, one I've already talked about, it's
the investor, the new markets tax credit
[57:24] investor. The new markets tax credit
investor in this case is Capital One.
[57:28] They're going to bring cash to closing
and then they will collect their return
[57:33] from the US Treasury in the form of a
tax credit.
[57:38] The right to the tax credit, the
authority that was parsed out in a
[57:42] competitive competition is coming from
the community development entities.
[57:48] another technical term in the program.
And in this case, as we've talked about,
[57:53] the community development entities that
are bringing the right to the tax credit
[57:57] that Capital One will get to um get, you
know, in essence buy by bringing their
[58:03] cash in exchange for the tax credit. The
right to that tax credit is coming from
[58:08] Colorado Growth and Revitalization Fund
and Enterprise and together CGRF and
[58:15] Enterprise are allowing you to maximize
the tax credit benefit
[58:20] in order to make this work. New Markets
Tax Credits was originally a lowinterest
[58:24] loan program and so smart lawyers back
in 2007 um 2006 2007 figured out how to
[58:31] stack the program on top of itself and
turn it into an equity or a grant
[58:35] program. And so to make that happen, we
set up a singlepurpose real estate
[58:43] leasing entity. And that entity is
structured to be in compliance with the
[58:49] new market's tax credit program. And in
this case, that entity is known as a
[58:55] qualb, a qualified active lowincome
community business. down here on the
[59:02] bottom of the screen. It's another
technical term in the New Markets tax
[59:06] credit program for an entity eligible to
receive New Markets proceeds. This is
[59:12] going to be an entity that is going to
be a support corporation, probably a
[59:17] Frraasier Housing Authority. Um, we
might be able to make it a support
[59:20] corporation of the town. Um it's there's
some different structuring
[59:23] considerations there, but in general for
you all to think about it, it really is
[59:29] um a a 501c3
nonprofit real estate leasing company.
[59:35] And it is going to own building E for
the 7-year compliance period and lease
[59:41] it back to Frasier Housing Authority,
who is going to subleasase it to you to
[59:46] operate their early childhood education.
and you're actually going to subleasase
[59:49] that on to grandkids and then Fraser
Housing Authority is going to operate
[59:55] the the housing piece. So, there's a
layer of leases to make this work, but
[59:59] that allows two really um helpful
things. It allows the new markets tax
[1:00:05] credit program to um
the compliance for the new markets
[1:00:12] program to kind of be locked in place
over the 25-y year history of the new
[1:00:16] markets program. Um there is there's no
situation in which the tax credit has
[1:00:22] ever had a recapture event and that's
because it's really structured to
[1:00:26] succeed. You kind of structure the
compliance in on itself. Um and so that
[1:00:31] that one of the pieces to that is this
singlepurpose entity that kind of
[1:00:35] receives the new market's benefit and
then passes it through to the project.
[1:00:40] And then of course we have the project
sponsor as we would call it in new
[1:00:45] markets parliament and that is going to
be um Fraser Housing Authority and the
[1:00:50] town of Frraasier. You guys are going to
leverage the costs that you've um
[1:00:54] brought together for the St. Louis
project. It's going to funnel through
[1:00:58] the new market tax credit public private
partnership and generate um the benefit
[1:01:03] where you're going to operate it like we
talked about on the slide previously.
[1:01:10] » I have a question.
>> Yeah question. So you're talking about
[1:01:13] leases. So this corporation is going to
lease it to to the Frasier Housing
[1:01:17] Authority and they're going to lease it
to Frasier.
[1:01:20] So what are the is there a termination?
You said for seven years. Is there is
[1:01:25] there a clause where they could
terminate the lease during that 7-year
[1:01:29] period?
>> And who is they
[1:01:32] » incorporation?
>> I know, but who who creates the 501c3?
[1:01:36] » This one.
>> We do.
[1:01:38] » No.
>> So, is that the town that creates the
[1:01:40] 501c3?
>> It it can be it can be the town or but I
[1:01:45] think we were thinking it would be
[clears throat] technically a support
[1:01:47] corporation of Frasier Housing
Authority. Um and that just um really
[1:01:53] helps the the flow of funds through the
public private partnership.
[1:01:57] » Okay.
>> Um and then as far as lease termination,
[1:02:01] there is flexibility. It's like any
commercial lease, but you are
[1:02:05] incentivized to keep those leases in
place because of the good work that's
[1:02:09] coming out of the project and also
because it allows the project to stay in
[1:02:13] compliance. It kind of keeps the
financing structure in place. So, we
[1:02:15] would recommend keeping those lease
agreements in place. Um, at the end of
[1:02:20] the seven-year compliance period through
a put call option, the investor exits
[1:02:25] the structure and they put the ownership
of the financing structure to Frasier
[1:02:30] Housing Authority. And so then Frasier
Housing Authority is holds all the
[1:02:35] membership rights of all the parts of
the complicated public private
[1:02:38] partnership. And so you can kind of
collapse the structure
[1:02:42] and and at that point the leases are
almost always terminated. and then any
[1:02:47] of your kind of subleas leases with
grandkids or anything would of course is
[1:02:50] kind of outside of that collapsing of
the public private partnership at the
[1:02:54] end of the seven-year period when the
investor is collecting their return.
[1:03:00] » So I mean I'm not sure you answer my
question.
[1:03:03] Is there a risk in this corporation or
this entity
[1:03:08] terminating the lease during that
seven-year period? Well, they're the
[1:03:13] landlord, so they own it and you're the
tenant. Fridge Housing Authority is the
[1:03:17] tenant. So, I I don't know if I'm
understanding your um question.
[1:03:22] » It leasing it to us, right?
>> Yes. The concern, Monica, is could the
[1:03:29] town lose the building?
>> Well, lose the lease and I guess
[1:03:35] eventually
>> if there's this other entity that's
[1:03:37] being entered in with ownership.
So the the entity with the ownership um
[1:03:44] is so um
okay [snorts] so so there's a layer of
[1:03:50] leases and um so the what we would call
the fee interest in the residential
[1:03:56] condo so the the the ownership of the
residential condo resides at Frasier
[1:04:01] Housing Authority and the um
fee interest or ownership of the
[1:04:09] commercial condo or the early childhood
education condo resides at Town of
[1:04:13] Frasier and then you all similar to a
ground lease are leasing those units to
[1:04:20] this specialurpose entity. So, um, and
they are, this special purpose entity,
[1:04:26] the qualified active low-income
community business is a support
[1:04:30] corporation nonprofit whose sole mission
is to support Frasier Housing Authority.
[1:04:35] And you all get to with with the Fraser
Housing Authority get to determine the
[1:04:40] board members. So for tax purposes, it
needs to be different
[1:04:45] than from the board of Frraasier housing
authority by having at least a majority
[1:04:50] of board members be independent and but
they can be friendly. So, I don't know
[1:04:56] enough about the structure of the
Frasier Housing Authority Board and the
[1:05:00] Town of Frasier board, but for example,
if there was a town of Frraasier board
[1:05:05] member who is not on the Frasier Housing
Authority board, that person could be
[1:05:10] one of the independent board members.
And typically, the qualified active
[1:05:15] low-income community businesses have
threeperson board members. So you would
[1:05:20] have one that's uh that kind of overlaps
with Frasier Housing Authority and then
[1:05:24] you would have two independents. So
meaning not currently employed by or not
[1:05:28] currently on the board of Frasier
Housing Authority and that generates the
[1:05:33] fed the the separation for federal tax
purposes but it's a friendly board that
[1:05:38] you all have elected who is on that
board and their full mission is to
[1:05:43] support Fraser Housing Authority. So
they're wholly aligned. It is merely a
[1:05:48] pass through entity that makes the
financing work and it is leasing the fee
[1:05:53] interest from the two condos and then
it's leasing it right back to Frasier
[1:05:57] Housing Authority to operate the housing
and right back to Town of Frasier to to
[1:06:03] lease it to grandkids. So it is true
that we're kind of sandwiching it in a
[1:06:07] layer of leases, but I think it's a very
low risk that those leases would be
[1:06:12] ended because they're wholly mission
aligned and only in place is a pass
[1:06:18] through to make the subsidy an
opportunity. Is that help?
[1:06:22] » It it helps. I do have a question. Um
we are the Frasier Housing Authority,
[1:06:28] the Frasier Town Board. So what you're
suggesting is we would have actually
[1:06:33] three appointees and no board members
on that panel or that committee.
[1:06:40] » Well, you could have one overlap
typically one over.
[1:06:42] » So there's a couple ways to structure it
and and the the um New Markets Tax
[1:06:46] Credit Council um who's working with you
um we've worked with him for for years
[1:06:50] and he um he could help describe the
options to help you all get comfortable.
[1:06:56] One option would be a threeperson board
where one person could be one of you all
[1:07:01] sitting here and then two would be
independent but identified by you. The
[1:07:06] other is to do a fiveperson board and in
that case three could be
[1:07:13] » um you one of you all and two would have
to be independent. But then you have to
[1:07:19] write into that structure a requirement
that the two independent are always
[1:07:25] present in the case that any um
uh any actions are taken that have
[1:07:32] meaningful impact on the financing. So
there's just some security measures to
[1:07:36] make sure the independent board members
in that approach are um are available
[1:07:40] and both both work and are commonly
used. So um we definitely want to
[1:07:44] structure in a way that's going to make
you all as comfortable as possible. This
[1:07:47] is sincerely a tool to make the new
market's tax credit financing structure
[1:07:52] work.
>> And there's only restrictions on place
[1:07:56] in place on the number of trustees that
could be on that committee. And I'm
[1:08:02] asking because you're on the Frasier
Valley Housing Partnership, right?
[1:08:06] » Um and I wanted to make sure that's not
a conf we have a new volunteer.
[1:08:12] » He loves his paycheck. [laughter]
Um just making sure there's no other
[1:08:17] conflicts is just our board.
>> Yeah. And I think we can definitely try
[1:08:23] to to work in the structure.
>> Fraser Valley Partnership whether or not
[1:08:28] » who appoints those other two members to
the board.
[1:08:31] » The board does.
>> Okay.
[1:08:34] And who owns this 501c3
corporation?
[1:08:40] That's his who? So, it's a it's a brand
new nonprofit corporation, but it is
[1:08:45] what we would call a support corporation
in that its whole mission is to support
[1:08:50] the activities of Frasier Housing
Authority.
[1:08:54] » Who is who are I mean, who wouldn't it
>> like does the does the town have to set
[1:08:59] up that 501c3?
>> Yes. Yep. That that
[1:09:04] » establishes a 501c3. Okay. Well, it's
it's typically a non-member
[1:09:10] 501c3 entity that is a support
corporation that is wholly controlled by
[1:09:15] its board that you all would select. We
just need to differentiate it from
[1:09:19] Frasier Housing Authority for t federal
tax purposes.
[1:09:22] » So that's the reason and and a quality
under the new markets tax credit code
[1:09:26] cannot be a government.
>> So we have to make it a 501c3.
[1:09:31] And so Denver Housing Authority, for
example, used this structure and they
[1:09:35] created a support corporation under that
that is a nonprofit in support of Denver
[1:09:40] Housing Authority and that's how they
did it. So that's the model we're we're
[1:09:44] using here. Sorry, Sarah, go ahead. Or
who who asked the question?
[1:09:47] » Well, and Monica, as part of this
process of of putting together the new
[1:09:51] market tax credits, I believe we would
work with you and the legal council to
[1:09:55] put this 501c3 together. Correct.
>> Absolutely. They do it all the time.
[1:10:01] they have um a lot of experience in that
and they're very good at either using
[1:10:05] form you know articles and bylaws that
you all prefer or they can bring very
[1:10:10] simplified ones that are used regularly
in new markets financing. So yes
[1:10:14] absolutely you'll get a chance to review
all of this um and pass resolutions
[1:10:19] before the new markets tax credit
financing could close. Those closing
[1:10:22] resolutions are an essential step in the
approval process to make this financing
[1:10:27] work. Okay. So,
>> so Monica, so this structure is
[1:10:34] actually
sheltering us from risk.
[1:10:38] » That's Yes. Set up this way.
>> Yes. Yes. And and that's one of the
[1:10:42] reasons most of the um nonprofits that
we work with use this structure is
[1:10:46] exactly for that. The singlepurpose
entity is literally structured to remain
[1:10:51] in compliance for the seven years and
therefore it gives you the most
[1:10:55] flexibility in your operations because
it's the tenant if you will the master
[1:10:59] tenant which is really the least back to
yourself that's the operator and so it
[1:11:03] it allows you to assure compliance as
well as have most flexibility in
[1:11:09] operations. That's I think why it's a
popular structure.
[1:11:12] » Yeah. Because the letter from Capital
One to Sarah does have clauses in it
[1:11:18] that
basically say that we are at risk
[1:11:23] as an entity
for a recapture or loss if it all breaks
[1:11:29] down.
>> That's right. And in the 25-y year
[1:11:32] history, I am unaware of of any new
market still that's ever had a recapture
[1:11:37] event because of these structures. It's
it's it's one of the most secure tax
[1:11:44] credit for structures. I mean, we work
with a lot of tax credits, historic tax
[1:11:48] credits, LITC low-inccome housing tax
credits. There's there's risks with tax
[1:11:52] credit programs. This one is is
extremely low risk because of this
[1:11:57] structure. That's exactly right.
>> So, yeah, back to my original question,
[1:12:01] it's not no risk. There is a slight risk
potentially something can happen, but
[1:12:07] it's a low risk.
>> That's right. So the things Oh, sorry.
[1:12:11] Go ahead.
>> I was going to say maybe it'd be helpful
[1:12:13] if you could talk through if we were to
be your first recapture, what would that
[1:12:17] look like?
>> Absolutely. Um, let me first say what
[1:12:22] what you would have to do to be that
example. So, one thing you'd have to do
[1:12:26] is is not pay the the the new market.
So, new markets tax credits funnels into
[1:12:32] the structure looking and feeling like
low interest loans. um there's an
[1:12:36] interest payment that you make kind of
at the bottom of that structure and it
[1:12:40] actually comes back to you as interest
income on the top. It's kind of going in
[1:12:45] a circle. Um and that so one of the
things you could do is not pay your
[1:12:50] lease and therefore not paid the
interest. But you were not incentivized
[1:12:55] to make that mistake because that money
comes back to you. So that um that is
[1:12:59] one of the few things. The other thing
you could do is you could become one of
[1:13:03] the non-qualified businesses. And
there's kind of a list of what we call
[1:13:07] the quote unquote sin businesses, a
massage parlor, you can't become uh you
[1:13:11] can't um sell alcohol for off- premise
consumption. Um a golf course. Um
[1:13:17] there's a few, you know, and I can get
you that list. Um and so those are
[1:13:22] really the things that could trigger new
market tax credit recapture. So um if
[1:13:27] you were to there are there's a services
test but that's when in this structure
[1:13:33] that is they use instead the the
property as long as the property is
[1:13:38] owned by this entity or in this case
long-term leased and leased back to you
[1:13:42] um then you don't need that services
test. So those are the things you could
[1:13:46] do to trigger recapture. Let's say for
some unforeseen reason in seven years we
[1:13:51] accidentally trigger recapture um by um
bringing one of the sin businesses in as
[1:13:57] a tenant. Um in that case the US
Treasury would force Capital One to to
[1:14:04] pay the taxes that it had received the
credit for and then Capital One is going
[1:14:09] to turn around and ask you to pay them
back. So the that subsidy that they're
[1:14:14] bringing to your project, you would have
to pay back. And then all the treasury
[1:14:18] costs and all the legal fees and and any
of the, you know, tax filing costs that
[1:14:24] are associated with the years of that
tax credit that then are now out of
[1:14:29] compliance would have to be repaid. So
that's the that's the meltdown scenario.
[1:14:34] Again, no history of that in the new
markets program to date, but that is
[1:14:38] what would happen is is that Capital One
would have to pay the tax credit back to
[1:14:42] the US government and they would turn to
you to make them whole.
[1:14:47] » But if we keep the daycare in there for
seven years, it's a non-issue.
[1:14:51] » Exactly. Well, [laughter] and that is
also why we have the random list of sin
[1:14:56] businesses prohibited in grandkids lease
that was specifically put [laughter] in
[1:15:01] there for the request of the new market
tax credit.
[1:15:05] » We didn't otherwise expect them to start
tattooing people tomorrow in their
[1:15:09] classrooms.
>> All the kids get numbered. [laughter]
[1:15:15] » Monica, one question, and I apologize.
It's been a while since you went through
[1:15:19] that other fancy chart with me. But do I
remember correctly, did we land on that
[1:15:24] the town of Frraasier was going to be
leasing to the Qualic B as one of those
[1:15:29] layers of leases so that the town of
Frraasier retained ownership per our
[1:15:33] grant requirements.
>> That's correct. For the for the ECE
[1:15:37] condo, the ground floor condo. That's
correct. And then Frasier Housing
[1:15:40] Authority similarly retains ownership of
the housing portion and then leases it
[1:15:45] into the structure and then it's leased
back to you. That's correct.
[1:15:52] So, just a few more points here and I
want to make sure um we can all keep
[1:15:56] moving forward. Again, I am I love this
stuff. So, if anybody wants to set up
[1:16:00] another meeting, please um do not
hesitate to reach out to me. I'm more
[1:16:03] than happy to dig into it. Some key
points we want you all to be aware of.
[1:16:07] Um in this structure to leverage
building e costs through the structure
[1:16:12] into the public private partnership,
your money enters in the form of a loan.
[1:16:16] That's so that Capital One can own the
right to the tax credit. Um, and it
[1:16:21] allows that kind of interest payment to
go in a circle and come back to you. So,
[1:16:26] um, we call that the leverage loan. And
so, that's that is going to fund the new
[1:16:31] market's financing, um, and generate the
tax credit opportunity. So, you're going
[1:16:35] to bring about twothirds of the money to
the table and Capital One's going to
[1:16:38] bring about a third and it's going to
funnel through and it's going to build
[1:16:41] the project. And that's the purpose for
the tax credit opportunity.
[1:16:46] That leverage loan is going to be um
made through really the costs you've
[1:16:53] already spent that have helped build
building E. So um Sarah to your point,
[1:16:57] some of the grants that you've already
received and then um Proposition 123 or
[1:17:02] 123 equity is kind of rounding out the
capital stack. So we're going to
[1:17:06] leverage those costs through the
structure. Um, and then the New Markets
[1:17:10] benefit uh comes in all upfront all on
the day of closing. So, some tax credit
[1:17:16] programs pay in at milestones of
construction. New Markets tax credits
[1:17:20] does not. It pays in all upfront all on
the day of closing comes in as cash
[1:17:25] flows through the the public private
partnership and that cash comes into a
[1:17:30] dispersement account that you use to
complete the building. So, New Markets
[1:17:35] is going to look and feel like
lowinterest loans for the seven-year
[1:17:40] compliance period, but it is net
neutral. You pay that interest, it comes
[1:17:43] back to you at the top. And at the end
of the seven-year compliance period,
[1:17:48] we're going to put the ownership of that
structure and collapse it in the form of
[1:17:52] debt forgiveness. So, we sometimes refer
to those as kind of the fake debt, if
[1:17:55] you will, in the new market structure.
And I know I'm zooming over a lot of
[1:18:00] ideas that are very complex there.
Monica, can I can I interject for one
[1:18:04] second? Hi. Hi,
>> board. Matt Ginsburg, Mountain
[1:18:07] Affordable Housing Development. That
that's no new capital required by the
[1:18:12] town. All that money is already in the
structure. We're just repurposing it as
[1:18:17] a leveraged loan.
>> Thank you, Matt.
[1:18:21] » Yep, very good point.
>> Starting to learn after three years what
[1:18:24] might what might concern you. [laughter]
[1:18:30] Um, that's exactly correct. So, the the
benefit will create a savings. It's
[1:18:34] really it's really creating a savings in
the building of building E. And then at
[1:18:38] the end of the construction period for
St. Louis, it's really a savings of of
[1:18:44] bond proceeds that are not going to be
used and that allows more money to come
[1:18:48] back to the town on their subordinate
loan. So, there's this always this
[1:18:52] complicated question of when is the net
benefit achieved. It is achieved upfront
[1:18:56] at closing. It is going to get invested
into the building of building E. New
[1:19:00] Markets wants to feel like it's coming
into the project that's having community
[1:19:05] impact and then that's going to create a
savings to you all at that will really
[1:19:09] be understood at the time that the full
project is complete and there is a
[1:19:13] savings on the on the bond proceeds that
are not drawn for building E.
[1:19:21] Okay. Again, lots here. Happy to dig in
more. This is a highlevel representative
[1:19:26] timeline. I know there's some different
discussions in here. Our goal is to um
[1:19:30] try to take advantage of the new markets
financing as soon as possible. Uh it is
[1:19:34] a very competitive subsidy. So to have
enterprise and Colorado growth and re
[1:19:38] revitalization fund bringing the subsidy
to you is a great opportunity. Um
[1:19:44] ideally we would stay on track to
leverage this financing opportunity here
[1:19:48] yet this calendar year. And the reason
for that is some of the costs that we're
[1:19:53] leveraging to maximize the new markets
tax credit benefit are costs that of
[1:19:59] course have been in process and spent in
the building that's in process at
[1:20:03] building E. And so um New Markets allows
you to to leverage costs as long as
[1:20:08] there's they're within 24 months of look
back from the day of closing. So we want
[1:20:12] to we do want to close this calendar
year in order to have enough costs that
[1:20:17] are in compliance to be able to leverage
the opportunity. So um here of course
[1:20:22] and soon um we as it sounds like we're
attached to your board documents there
[1:20:27] are some term sheets and um investor the
investor LOI from Capital One. There's
[1:20:34] also um an adjoiner for the legal
council that we talked about, a
[1:20:39] gentleman named Kevin Sabry at KCD Legal
who would be representing you all uh in
[1:20:45] the new markets tax credit financing. Um
he's excellent to work with. We've
[1:20:49] worked with him for a long time. So
there's an adjoiner to allow him to be
[1:20:53] um representing you all as a part of his
legal um role. And then as those
[1:20:58] financing partners and that comes
together, ideally we would kick off the
[1:21:02] new markets financing. Uh kickoff is
kind of a technical term for when all
[1:21:07] the financing parties come together and
we start to review the closing documents
[1:21:12] and the the due diligence that it's
usually about three months from kickoff
[1:21:17] to get to financial closing.
In that period, as was mentioned, um,
[1:21:23] KCD legal, our firm as your consultants
would work with you to help put together
[1:21:28] and structure the new entity that would
be created to make the financing work.
[1:21:33] You would identify the board members
that you want for that entity. And of
[1:21:37] co, of course, before we close, you all
would have to approve the closing
[1:21:43] resolutions that authorize that
financing. So, um the the kickoff starts
[1:21:47] the process, but there is formal
approval needed to to make the financing
[1:21:52] possible. Um and and that newly formed
board also has to pass closing
[1:21:57] resolutions to allow the financing to
close. We anticipate those to be
[1:22:01] somewhere in October with a financing in
November. Definitely trying to close
[1:22:05] before year end and and the sooner the
better to maximize that benefit with the
[1:22:09] costs.
So, um, please reach out to me with any
[1:22:14] questions. There is a more complicated
diagram at the end of this presentation.
[1:22:19] Um, if you have questions on that or if
there's more discussion needed, I'm more
[1:22:23] than happy to to answer questions or or
schedule another time.
[1:22:28] » Going to say she didn't show you the
chart that hurts my brain.
[1:22:31] » I can. [laughter]
>> You explain it very nicely, Monica.
[1:22:34] Thank you.
>> Thank you.
[1:22:39] » Yeah, it does.
Um there is a method to the madness but
[1:22:43] it is complicated. Yes.
>> Yes. So there are a number of documents
[1:22:47] um some of which are included here that
are going to be coming to the board. So
[1:22:51] if there are any questions at this time
about some of those documents if you had
[1:22:54] the opportunity to review them but um I
believe correct me if I misstate this uh
[1:23:00] we are waiting for Prop 123 for Chaffa
to kind of give the final sign off. they
[1:23:05] know this is coming um but they need to
approve this before before we move
[1:23:11] forward. Um and so at that point we will
be bringing those documents for board
[1:23:15] approval but wanted to not have to try
to explain everything that Monica just
[1:23:19] explained um when those documents are
brought forward.
[1:23:24] » We've got kind of a tight timeline.
We're waiting on chat on
[1:23:28] » your mouth.
>> I think we may
[1:23:32] we may be bringing things a little bit
before we have sort of final approval
[1:23:36] because you know they give you a a
pretty firm view about where they are
[1:23:39] at. And it also helps that that the one
and a half of the new markets funding
[1:23:47] the the the CDs that bring the credit is
Chaffa also. Um, and so they should
[1:23:52] probably hopefully, if they can hear us,
we'll be working behind the scenes to
[1:23:57] make it move smoothly.
[1:24:04] I would be interested in seeing the list
of items that would trigger recapture of
[1:24:09] of the
tax credits. I mean, I'm just thinking I
[1:24:15] I have no idea. You mentioned a few,
right? What if there was some
[1:24:21] nefarious
issue, criminal something happened with
[1:24:27] the daycare? Would that trigger a
recapture? I mean, would that
[1:24:32] you know what what are the risks there
in terms of recapturing
[1:24:36] those tax credits? Does that make sense?
>> Great question. Just at a high level,
[1:24:42] I'm more than happy. We have some
presentations that are specific to the
[1:24:45] compliance. Um the daycare is a tenant
and so their activities um really cannot
[1:24:51] trigger it. It's really actions of the
qualified active low-income community
[1:24:56] business entity that are going to
trigger the the the recapture situation.
[1:25:01] So it is true you can lease to a
non-qualified business. Um, I suppose
[1:25:06] they could, um, ignore the
businesses, the non-qualified businesses
[1:25:14] that are a part of their lease, as Sarah
mentioned, that were already put in. Um,
[1:25:17] but if that happens, then there's a cure
period. You would be able to replace
[1:25:22] them with a with a qualified tenant and
and and so that should not trigger
[1:25:27] recapture if if taken care of. Um it's
there there's a lot of cures built in to
[1:25:33] make sure the solves are um worked out,
but I'd be more than happy to put
[1:25:38] together kind of a summary presentation
of what triggers recapture.
[1:25:41] » I think that'd be helpful. How long will
we have to get rid of a tenant? Would it
[1:25:45] be 60 days or six months?
>> Well, we just had a change it to 180
[1:25:50] days.
>> Yeah, we did. But
[1:25:52] » we're going to keep this dayare because
they won't
[1:25:54] » for a short period of time
>> or we tell them to close down whatever
[1:25:58] operation they have
>> that we're it's not allowed.
[1:26:02] » Yeah. Yeah. I think we're good.
>> Yeah. Typically the new markets
[1:26:06] compliance period uh or the new markets
compliance certificate is executed
[1:26:10] bianually. So you would do it twice a
year. So you'd have a sixmonth period
[1:26:15] where you're reporting on any of the
compliance. um now how that ties to the
[1:26:21] actual um
>> period that would then trigger
[1:26:25] recapture. I think you probably have
longer for that. But I think that that
[1:26:29] the um community development entities
who manage the compliance, they have you
[1:26:35] fill out the compliance certificate on a
bianual cadence so that they have time
[1:26:40] to work with you for any cures in a
period that would trigger a concern
[1:26:43] which might be annually that they report
to the treasury.
[1:26:47] » Okay. Thank you.
>> Yeah, good questions.
[1:26:53] » Okay.
No such thing as free money. [laughter]
[1:26:59] » So Matt, do you want to um pull up or I
can pull up your sources and uses and
[1:27:06] just kind of show how this fits into
that overall capital
[1:27:09] » sources and uses deck.
>> I can pull it up.
[1:27:39] that good for everybody.
[1:27:43] » Cool.
Good evening board. Matt Ginsburg,
[1:27:47] nonaffordable housing development again.
[1:27:52] Um, I'm going to walk through the the
the sources and uses page which we've
[1:27:57] looked at for three years. Um, if you
have questions, let me know about any
[1:28:01] particular line item, but I'm I'm going
to review it holistically with a focus
[1:28:06] on on the effects of the new market tax
credit.
[1:28:10] Uh what's on this page is the final
underwriting
[1:28:15] um sources and uses that that was
approved and in the in the uh bond
[1:28:22] documents and and in the um Prop 123
documents etc and their underwriting
[1:28:28] materials. Um so all the final numbers
from the from the bond offering um you
[1:28:35] know over time the cost of the project
of course go up because that's the only
[1:28:39] direction costs really ever go um and
a portion of the 5.335
[1:28:47] or 5.4 $4 million of uh bridge loan, the
first interim bridge loan that y'all put
[1:28:53] in um was going to get consumed and
probably not fully paid back by the myc
[1:29:01] funding. Um which is something that's
been out here for quite a while, but but
[1:29:07] want to make sure that that it's clear
because it's relevant to why make the
[1:29:10] effort to do the new market tax credit.
Um
[1:29:15] so th this is the uh this is the final
source and uses. If you don't do
[1:29:20] anything about the new market tax credit
um and we you know come in like right at
[1:29:25] budget, spend the contingency,
etc. Uh then there will be about $2.9
[1:29:30] million of outstanding first interim
loan obligation. Remember at closing we
[1:29:36] paid back all of the um $5.3 million of
second interim loan obligation. Um, so
[1:29:44] that that's that's back. Um,
but the a portion of that first interim
[1:29:50] loan obligation would be outstanding at
the end. You would get that back over
[1:29:55] time through the cash flows of the uh of
the project.
[1:30:03] Questions?
Okay.
[1:30:10] we have money left over.
>> Yeah. Here we go. So, if we add to the
[1:30:15] lefth hand side $3 million,
um, which is a net amount. So, there's
[1:30:20] some cost to doing the issuance. Um, and
I think we think that 3 million is a
[1:30:24] fairly conservative amount. I I missed
the first couple minutes of Monica's
[1:30:27] presentation, so hopefully she told you
the same thing. Um,
[1:30:32] then then all of the initial $5.4 4
million will will come back assuming
[1:30:37] that the budget is is observed and
performed upon. Um and you'll have an
[1:30:44] excess $70,000
or just about $71,000.
[1:30:49] Um
which I think might be 79. Maybe I did
[1:30:53] my math wrong on there. uh the the uh
that you can use that for you sort of
[1:31:00] need to use that if it's coming directly
from the the new markets tax credit to
[1:31:05] um invest in the the
grandkids learning center the the which
[1:31:12] isn't specifically for grandkids in this
case it's just the the childhood
[1:31:15] education center uh which could be you
know internal buildout um or
[1:31:21] um
playground structure things like that.
[1:31:25] The various different costs to to fully
outfit the the space as uh as is
[1:31:32] necessary for a particular uh childcare
operator. Um so sort of the the the
[1:31:40] other end of the spectrum from not doing
it is doing it and and
[1:31:45] not increasing the budget at all for the
buildout. and you you end up uh with all
[1:31:50] of your first interim loan back and a
little bit extra that would be allocated
[1:31:54] towards uh towards some portion of of
buildout costs. As I understand it,
[1:31:58] grandkids put forth a budget to y'all of
of something like $600,000, but I don't
[1:32:04] quote me on that because I haven't seen
it. I could be wrong about that.
[1:32:10] question. So Matt on this sheet on uses
it doesn't mention
[1:32:15] » on this particular sheet
>> um build out at all or any cost going
[1:32:21] towards the grandkids.
>> Correct. I'm just showing you that that
[1:32:25] you have excess I haven't done anything
to the right hand side. That's why
[1:32:28] there's a third sheet.
>> Great.
[1:32:31] Um,
>> yeah, I see that
[1:32:34] » the buildout I mean the building e cost
is in the vertical buildout and that
[1:32:38] includes a good amount of the internals.
Um, just maybe not the more highly
[1:32:43] custom stuff like like some um
appliances and uh other special
[1:32:50] installations that are that are
specifically for how how grandkids would
[1:32:54] like it set up. It's it is pretty well
set up how grandkids would like it set
[1:32:59] up. It's not 100% set up how grandkids
like it set up. So,
[1:33:02] » right.
[1:33:06] » Third scenario.
Um,
[1:33:11] now, uh, Trusty Souls, we add $600,000,
which is, like I said, the the the
[1:33:17] budget that I the high level budget
number that I heard floated, um, to the
[1:33:21] right hand side. We still bring in the
$3 million on the lefth hand side. Uh,
[1:33:26] you end up with, you know,
almost all of your first interim loan of
[1:33:31] 5.4 back, you get 4.8 almost $4.9
million back. And that again is assuming
[1:33:37] that we deliver the project exactly on
budget and expend all the contingency,
[1:33:42] etc. Um
th this something like this would be my
[1:33:48] recommendation if I'm supposed to give a
recommendation, but um but that I think
[1:33:53] it's up to the board what they want to
do. It's up to I think a conversation
[1:33:56] with grandkids about how how building
out will assist with uh the goals here.
[1:34:03] I think of course the the faster they
can get students into the seats, the
[1:34:08] more uh adults who work in the town and
pay taxes and generate uh um sales tax
[1:34:16] from sales to visitors can be there. So,
it's probably a an altruistic upward
[1:34:22] spiral by making sure you can fill out
the seats there sooner.
[1:34:28] » Mhm.
>> Yeah.
[1:34:34] » So, the question is, grandkids, could
you fill all the seats if we did this
[1:34:41] that that fast? You know, getting
teachers, everything like that,
[1:34:44] » they're going to need to take a few
years. Um, someone needs to use the
[1:34:48] microphone to answer your question.
>> Yeah. Could Do you think you could find
[1:34:52] teachers?
[1:34:55] » Do you want to pop up to the microphone?
Yeah. Thanks.
[1:34:58] » Thank you.
>> No.
[1:35:00] » Sorry, Katie.
>> Um, yes, I think that we could find
[1:35:03] teachers. Since um our board of
directors raised our bottom line pay
[1:35:09] about a month ago, we have seen a
substantial increase in applicants. And
[1:35:13] I would expect that that would increase
once the stipen program is able to be
[1:35:19] advertised as well.
>> Okay.
[1:35:23] » And Grant's current budget for their
buildout that they provided here is a
[1:35:27] bit less than that 600,000. Um it's
looks like it's $418,545.
[1:35:34] Um,
so as Matt was explaining, if we help
[1:35:40] them either with all of that or the
difference between what they believe
[1:35:43] they have money to put towards it and
that amount, um, the town would
[1:35:47] potentially have some of its balance of
that loan paid back through time over
[1:35:52] cash flows versus right at closing. Um
the other piece of it though, and again
[1:35:57] correct me if I misstate this Matt, um
if not all of that contingency is used
[1:36:02] for the project, then we'd have that
going back to the town as well um to pay
[1:36:07] back the rest of that loan.
>> Yeah, there's still opportunity to to
[1:36:11] bring it all home. Um but I I I don't
want to uh
[1:36:17] I'm not not changing
>> to wipe out the system in uses yet.
[1:36:22] Let's finish a building, you know. I was
going to ask about the contingencies and
[1:36:26] that's that's just kind of a fudge
factor just in case their cost ever
[1:36:31] runs. What about reserve accounts?
>> The reserve accounts are specifically
[1:36:36] for the bonds. One they're uh about 3
million and then two and a quarter and
[1:36:41] one is to pay interest during the
construction period and that just gets
[1:36:46] consumed like right you raise the money
from the bond holders and you write
[1:36:49] checks back to the bond holders. Um
>> maybe money left over from that too.
[1:36:54] No, I I the that that like bond cash
flows are very specific. Um and also
[1:37:02] it's very easy to predict what the
interest uh service will be during that
[1:37:06] period of time because you know what you
raised, you know the amount of time and
[1:37:10] you know your revenue is zero.
So that that's that will probably be
[1:37:14] consumed almost to the dollar. And then
the other $3 millionish dollars, I think
[1:37:18] it's 2.9 something, is a is a long-term
reserve account and that's part of the
[1:37:25] security package that the bond holders
require. That will I guess good point,
[1:37:31] Le, that that will come back at the end
either to advertise bonds or or to you
[1:37:37] all. um that'll come back probably after
you've already uh gotten that $529,000
[1:37:43] in this case out of the uh out of the
project in cash flows.
[1:37:49] » Okay. Well, that's good. And then the
water sewer tap fees, that come to the
[1:37:53] town and building permit fees, is that
paid directly to the town?
[1:37:58] » No. To our
>> It's probably part of the waved fees on
[1:38:00] the left. Yeah, the the building permit
fees and the wave fees are were were
[1:38:07] um
>> they did they you either I don't
[1:38:10] remember if we took cash in and cash out
or or or if we just didn't didn't move
[1:38:14] the cash around there [clears throat]
>> that that's a wash
[1:38:19] » that's the same as building permit.
I believe the building permit were
[1:38:25] waved, if I'm remembering correctly, the
water and sewer top fees and the fire
[1:38:29] and school fees. Um, we are paying those
into the appropriate accounts, but we
[1:38:34] have um grant money that's covering most
of that,
[1:38:37] » right? As it should be.
>> And did that get paid to the town? Well,
[1:38:42] water and sewer fees get paid to the
town.
[1:38:45] » They'll get paid to those enterprise
funds, but again, we have grant dollars.
[1:38:49] we have to pay our match portion, but
the rest of that is being paid with
[1:38:51] grant dollars.
>> Great. Good work.
[1:38:55] » Okay.
[1:38:58] » So, if the direction of the board um is
that we would like to help cover some of
[1:39:05] those buildout expenses with this new
market tax credit money, that is
[1:39:09] something that would come back to the
board ultimately for for final approval
[1:39:13] as we're working through this new market
tax credit process. Um, I know for
[1:39:18] grandkids, the sooner they kind of have
information to work with that helps them
[1:39:22] plan accordingly so that they can make
sure they are set up to to do their
[1:39:26] buildout.
>> Well, we need to make sure we're getting
[1:39:30] this money first of all, right?
>> Yeah. And I think we're we feel pretty
[1:39:35] pretty confident that
>> um I can let Monica speak to that as
[1:39:39] well um and her history with us, but we
we should be able to close on that money
[1:39:42] and anything we offered would be
contingent on closing on that money.
[1:39:47] » Yeah.
>> So, can you can you clarify um the order
[1:39:53] that this would go in? I'm thinking
about our bridge loan and uh if it gets
[1:39:58] paid back or partially paid back, but I
think we told the community that this
[1:40:02] was not we were not paying for this that
we would get that money back. So I I
[1:40:07] mean I'm
kind of in I'm in support of helping the
[1:40:13] child with education, but I I think we
have to be upfront with our community
[1:40:18] and and pay ourselves back first and
then if there's something left over, we
[1:40:23] can consider. But these are things we
said in public uh micro.
[1:40:27] » Well, and one thing to consider with
these this $3 million is we wouldn't be
[1:40:32] eligible if we weren't supporting this
daycare to begin with.
[1:40:36] » So if we were to s, you know, sacrifice
500,000 now and get paid back over time.
[1:40:44] It's just something to consider.
>> I just want to make sure it's clear to
[1:40:48] the our constituents and our community
that
[1:40:54] you know that our arrangements are are
we're sticking to our word. I mean we we
[1:40:58] loaned that money and it was said over
and over and we had people in the
[1:41:01] audience saying hey is this going to be
Frasier paying for this and we said no
[1:41:06] multiple times. I I just uh think we
need to be cognizant of that.
[1:41:16] » All righty.
>> Okay. But we don't need to decide that
[1:41:20] right now. Right.
>> We just need to
[1:41:22] » We don't No action.
>> No, we're not looking for any action.
[1:41:25] Yeah, this isformational.
>> Okay, it's a lot of information.
[1:41:29] » That's a lot of information, but I
appreciate you guys. Thank you for
[1:41:32] coming.
>> Thank you.
[1:41:34] » And we have just a
>> short leg stretch before we start the
[1:41:39] next one.
[1:41:44] » We have three
>> not going to be short.
[1:41:45] » We have three things to go. Um, we have
a request for a leg stretch. Let's uh
[1:41:51] let's do three minutes.
>> Yeah, just short. Then y'all could stand
[1:41:55] up.
[1:46:18] Okay,
next up
[1:46:23] » we we get Oh, yeah. Oh, plenty. Um, pole
yard development community wish list
[1:46:30] discussion. Uh, Ron Jones is here with
us.
[1:46:41] Do I need to talk fairly closely into
this for you to hear me?
[1:46:45] » Yeah, that's that would be helpful.
Yeah.
[1:46:46] » Can you hear me now?
>> Yeah. Yeah.
[1:46:48] » Okay. I'm Ron Jones. I know most of you.
Um, I've had conversations with some of
[1:46:55] you individually and I'll keep this
fairly
[1:46:59] brief and I just wanted to give you the
courtesy of telling you what we're doing
[1:47:04] and what we've done. Um, as many of you
know, I've been in the valley 51 years
[1:47:11] and did Cooper Creek Square. I did a lot
of self storage. I'm out of all that now
[1:47:16] and I'm at a place in my life where I'd
like to pay back to the community. And
[1:47:21] so my family and I, my my kids and
myself, we looked around and we felt the
[1:47:28] best way to do this would be to buy the
Susan Jones Trust property, the 128
[1:47:35] acres, which is part of what is sort of
called the pole yard. I guess it's
[1:47:41] everything from uh the Sarah, did you
want to put a map up or
[1:47:47] » Yeah, it's everything from the ball
fields to the elementary school up to
[1:47:51] Grandma Miller's and up to Betsy Dere's
uh my kid's mom's house. It's a very
[1:48:00] critical parcel that I think needs to be
developed properly. And so we didn't do
[1:48:08] the traditional developer thing of let's
get a development plan and let's draw a
[1:48:14] bunch of pretty pictures and come to the
city and say this is what we want to do.
[1:48:19] I felt the property became available at
a price that was high but still
[1:48:26] we could justify and we just simply
bought it. And our goal is to take a
[1:48:33] substantial portion of this property and
put it to use for the things that will
[1:48:38] help make the Frasier Valley a more
sustainable place for people to live. Uh
[1:48:44] it's not about what kind of a IR can get
off the property. It's what we can do to
[1:48:52] to make things work. And so I want to
work with Frasier. I want to work with
[1:48:56] Winter Park. I want to work with Grand
County. I want to work with everybody
[1:49:01] that's involved to listen to what we
need in order so that young families
[1:49:08] don't say we can't make it here. We
can't afford to live here. We have to
[1:49:11] leave. Um obviously work for you. You
just had a whole huge presentation on
[1:49:17] workforce housing. That's on the top of
the list with 150 acres. And and by the
[1:49:23] way, we're working with Matt Girky who
owns Polyard. Uh we're united in in
[1:49:31] pause as far as doing the right thing
for the community.
[1:49:34] » Wonderful.
>> With that amount of land, there's
[1:49:37] absolutely no reason if we can find the
developers to do it that we can't build
[1:49:41] as much workforce housing, single family
housing for people who live and work
[1:49:46] here. There'll be some market things.
Yes.
[1:49:50] » How much does Matt Kirk?
>> He has 10 acres.
[1:49:54] » He he has 10. We already had five and we
just bought 128. So it's close to 150
[1:50:00] total.
>> And then my family and Graham and Louise
[1:50:05] Powers own the 43 acres between
uh
[1:50:11] let's say the rodeo grounds and and the
west side of Frasier.
[1:50:15] » Most of that is wetlands, but not all of
it. And when County Road 522 gets built,
[1:50:20] which we just had meetings with the
county uh this last week, and they're
[1:50:26] very very close to having that all put
together, and if that happens, I think
[1:50:31] their intention is to build it
relatively soon. So anyway, the the
[1:50:38] there isn't a plan to talk about.
There's there's a dream. There's an
[1:50:41] idea. There's a hey, we've got the land
now, and we're not on a short time
[1:50:47] frame. I didn't borrow a whole bunch of
money and now I have to go make money.
[1:50:51] We paid cash for it and we can hold it
and we can protect it. It's it's not
[1:50:57] going to be open space. It's a it's an
industrial site. I mean, it's not not a
[1:51:01] pretty meadow, but it's a place where
the things child care, workforce
[1:51:08] housing, uh, schools, uh, recreation,
nonprofits, uh, Riverwalk. There's a lot
[1:51:17] of things we can do. So, the the first
step that I I want to do is hold some
[1:51:23] public meetings and and just listen,
just hear what people in the community
[1:51:27] say. We'd like to see this. we feel we
need this. And we've had people coming
[1:51:32] out of the woodwork saying, "Gosh,
listen to us. This is what we need. You
[1:51:37] guys are going to be important because
we can't do this without the
[1:51:40] infrastructure of Frasier." We all know
that water is a big issue. Uh we've been
[1:51:46] talking to your town leaders about
solving that. The sooner that we solve
[1:51:51] the water problem, the sooner we can get
going with trying to put land
[1:51:55] underneath. I want to be very, very
clear. We will donate some land. We will
[1:52:01] make some land affordable and then we'll
have some market land. We we we'd like
[1:52:06] to at least recapture what we paid for
the land, maybe make a small profit, but
[1:52:10] that's not our main motivation. The main
motivation is to is to actually have a a
[1:52:17] resort community that works for
everybody, not just the people who come
[1:52:22] here as the second homeowners. And
that's a big broad picture. That's a
[1:52:27] huge tent, but you're dealing with
somebody who's lived here 51 years.
[1:52:34] Katie Souls and I played pool. We both
came to town the same night in 1975,
[1:52:40] Halloween night, and we we've done it
together, you know, all this time. And
[1:52:45] so,
>> that's that's what we're trying to do.
[1:52:48] » Yeah, it's wonderful.
>> I'll answer I'll answer questions, but
[1:52:51] there's not a lot more detail. We we
banned bannered around some names and I
[1:52:56] think for the time being I just like to
refer to it as a community project at
[1:53:01] the poleard. That won't be the end name
but that's kind of the everybody knows
[1:53:06] the poleard and that's what we're trying
to do is do a community project.
[1:53:10] » Wonderful.
So yeah I [laughter]
[1:53:16] » I was thrilled when you found that you
bought it. So the old pond the mill
[1:53:20] pond.
>> Yes. that's back there that hardly holds
[1:53:23] water. That's in your property now.
>> Yes.
[1:53:26] » Um and we're always looking for a place
for water storage,
[1:53:31] I believe. And it's a good opportunity
for potential recreation and park. I
[1:53:36] know our kids played there growing up.
It was just fabulous. So anyway, that's
[1:53:42] something to for us to kind of tuck away
as a possibility for a another little
[1:53:47] park in there and also to be able to use
that water for water storage and water
[1:53:52] mitigation because that's kind of big
for the town. We need more of that. We
[1:53:58] have been
discussing those exact concepts with
[1:54:03] with our team and your team. Okay.
>> And as I understand it,
[1:54:10] doing treatment of surface water is very
expensive and probably outside of the
[1:54:16] budget of Frasier. Yeah.
>> However, drilling wells and releasing uh
[1:54:22] water to augment wells from a storage
pond is
[1:54:27] very efficient in in comparison to
surface. So, that is definitely
[1:54:33] something we're talking about. One thing
that probably isn't that well known in
[1:54:38] the community, it's not a secret, but uh
those of you who know where I live, I've
[1:54:43] got about a 7 acre lake that Dwight
Miller dug as a um
[1:54:49] it was a rock quarry or a gravel pit way
back when. And that water's just been
[1:54:54] sitting there. I don't have any water
rights, but I've got the right to have
[1:54:58] the lake. So, I have made an agreement
with the Middle Park Water Conservancy
[1:55:04] District to convert that into a
community purpose reservoir.
[1:55:08] That gives us the possibility of
releasing
[1:55:13] uh augmentation water. And there's not
that many users between Frasier and
[1:55:18] where I live in Tabernac. I'm not saying
that it'll work, but it's certainly
[1:55:23] something that it makes sense that
Frasier would want to cooperate with
[1:55:28] Middle Park Water Conservancy because
they're certainly here for the their
[1:55:32] whole district. So, I think we're going
to have to get creative to solve that
[1:55:36] problem. But as soon as we do, then we
can start talking to the various
[1:55:41] individuals. We can do a land plan. We
can start coming to you to talk about
[1:55:46] annexation. we can start talking to
groups who who need land. I've had
[1:55:51] several nonprofits come to me and say,
"Gosh, we'd like to have our own place.
[1:55:55] You know, we'd like to have land
underneath us." I've had a lot of people
[1:55:58] say, "Gosh, I' I'd really want to stay
in the valley, but I don't necessarily
[1:56:03] want to live in an apartment. You know,
workass housing is not where I want to
[1:56:07] raise a family. I'd like to have a small
piece of land. I mean,
[1:56:12] » a neighborhood.
>> A neighborhood." and and Andy Miller was
[1:56:15] talking to me last night about when you
and I moved up here, people bought a
[1:56:20] little piece of land and they built
their own house because that's the only
[1:56:24] way they could afford to do it. You
know, one year they'd put up this wall,
[1:56:28] the next year they put up the other
wall. And I hope people could build it
[1:56:30] sooner than that, but it'd be nice to
have small lots that are affordable that
[1:56:35] people can figure out a way to actually
own a house. Now, I can't do all the
[1:56:41] vertical, but I can help solve the land.
And and land cost is, as you know from
[1:56:48] the project you're doing on on the
housing, land cost is a huge portion of
[1:56:52] it. And if we can bring that under
control, there's a whole lot of good we
[1:56:59] can do. And I wish I had more details,
but I can't have more details until we
[1:57:05] collectively work through this and and
and solve some of the issues. So, you
[1:57:10] know, what we're dealing with is was is
a spirit right now. And I want to invite
[1:57:15] everybody in the community to
participate in this, not a secret. It's
[1:57:18] like, how can we do this together? And
I've had an incredibly positive
[1:57:24] response. Uh I've been talking to a lot
of people. uh everybody from you know
[1:57:30] the ski areas to governments to
nonprofits and I think this is an
[1:57:35] opportunity for us to really come
together and say what do we need to
[1:57:40] create a community that's more livable
and not just for the second homeowners.
[1:57:45] So any other questions?
>> We're very excited.
[1:57:50] » I'm excited. I hope you guys are.
>> We are.
[1:57:54] » That's great.
>> What other thoughts do you guys have for
[1:57:56] you? Thank you.
>> Yeah. Thank you, Ron.
[1:57:59] » Thanks so much.
>> Yeah, absolutely.
[1:58:09] » Um Andy Miller, Planning Commission,
Frasier. Uh you know, I've I've been
[1:58:14] doing this land development review game
as a town board member, as a journalist,
[1:58:19] as as a naysayer out in the community a
long time. 50 50 three years, I believe.
[1:58:28] Um, and last night after talking to Ron
over dinner last night, um, I lost a
[1:58:34] little sleep for the first time. It
wasn't because I was worried about
[1:58:38] something. It was because I was excited
about something. So, this is this is
[1:58:42] really cool. Um, I think the the key
words that I got from Ron that I heard
[1:58:47] again tonight is a community built
project and get the young people
[1:58:52] involved. women. Uh we've got so many pe
so many my both of my sons are in their
[1:58:57] mid-30s and and doing good things, but
basically pretty convinced the
[1:59:02] government doesn't do anything to help
them out. And um and here's here's some
[1:59:07] property. Here's a possible project we
might put together. When we were talking
[1:59:10] about the pole yard, we came pretty
close to buying that. I know we talked
[1:59:14] about a make it space. The make it
movement is you don't hear a lot about
[1:59:18] it lately, but it's out there. A lot of
people want to know how to work with
[1:59:22] their hands, you know. And you think
about these these tiny lots and small
[1:59:26] houses, not tiny houses, but houses that
could have all the facilities in them.
[1:59:30] And the owner that wants to build them,
but is working by himself. And maybe we
[1:59:34] don't do one wall at a time. That would
that would uh could create a blight on
[1:59:38] the landscape. And but maybe we bring in
like Breenriidge does with art
[1:59:42] vacations. Maybe we have make it type
vacations. And we have a community shop
[1:59:46] out there with the facilities and the
tools and the things that a person needs
[1:59:50] to build a house and learn trades. Um,
and then tourist uh visitors come in for
[1:59:57] a little hawk fin vacation. I got the
brush. Um, I got the paint and there's
[2:00:03] the fence. Let's see. You know, it's
going to be a little more elaborate than
[2:00:06] that, but that's the spirit of it. So
there just so many great ideas that that
[2:00:11] that that the young folks in town will
come up with and and those amongst us
[2:00:16] who've made those mistakes in the past
can hopefully at least offer a path past
[2:00:20] those. So Ron, I'm super excited about
this and it's just really nice to hear
[2:00:24] somebody get up here and say, "I want to
give back." So
[2:00:28] » indeed.
>> Thanks.
[2:00:30] » Okay.
All right.
[2:00:33] » Well, I've had a number of conversations
with Ron. It's It's always been fun to
[2:00:38] kind of dream of what we want to put in
this space. Um, have you guys
[2:00:43] heard anything else or do you have you
thought of anything else that hasn't
[2:00:46] already been already been brought up?
[2:00:52] » I was interested. And I know I brought
up um I mentioned to a gal who's a
[2:00:56] teacher, you know, about school and then
but she was really worried about
[2:01:01] stretching the resources and funding
that we have for our school district
[2:01:05] already. So that was interesting, you
know, in terms of a middle school high
[2:01:10] school combo, but
>> I think it needs to be considered,
[2:01:14] » you know, and we need we're going to
need a new location for Safeway
[2:01:20] eventually.
It is busting at the seams and we're
[2:01:24] probably gonna have another
thousand people as permanent population
[2:01:30] over the next 10 years, maybe more. And
it just can't accommodate it. You think
[2:01:36] about the number of people. But this
particular property, it doesn't really
[2:01:39] work for because of the railroad. You
can only access off of County Road 5,
[2:01:45] right? Or coming through the town of
Frraasier. Um, now across the street,
[2:01:49] you know what's going on with the rest
of that Jones the Susan Jones trust
[2:01:53] property right there up at 8 the corner
of 8 and 40?
[2:01:56] » It's listed.
>> Okay.
[2:01:58] » And they're trying to sell it.
>> Yeah.
[2:02:01] » That's all
>> all I know. I've heard rumors. Okay. But
[2:02:05] that's all I know.
>> Yeah. But you you bring up the
[2:02:08] transportation issue and this is
something I should have included in my
[2:02:11] presentation because this is this is an
action item you guys need to be aware of
[2:02:16] now and I'm sure you're going to be
hearing about it.
[2:02:19] » Scott Ladine brought up uh and and then
several people after him brought up the
[2:02:24] need to be able to connect the
elementary school to the ball fields so
[2:02:29] that kids can safely walk from the
elementary school to the ball fields.
[2:02:34] This can happen very, very soon because
County Road 522,
[2:02:39] now that it looks like it's for sure
going to happen, has a bike path, a
[2:02:45] separated bike path from the roadway as
you know that goes over the uh gas line
[2:02:50] easement and it goes all the way from
well from County Road 73 to the ball
[2:02:57] fields. If we can simply connect the
elementary school to 522,
[2:03:04] that connection is here very soon. I
mean, it could happen in the next year
[2:03:10] or two. The other thing that the county
said in in our meetings, and I don't
[2:03:16] think I'm saying anything out of school,
when when 522 was first designed, this
[2:03:22] was 20 years ago, and the Susan Jones
property, there was no hint that any
[2:03:28] development was going to happen. So,
there was nothing urban. The road was
[2:03:32] designed to be, you know, 40, 45 miles
an hour moving traffic. when the county
[2:03:40] understood what our vision is and you
know in some of the discussions we've
[2:03:44] had were the potential of maybe as many
as 2,000 F sfes out there and that type
[2:03:50] of density
that traffic has to slow down now and
[2:03:55] the the county engineer and the county
manager completely understood that this
[2:04:00] is going to become an urban corridor. I
mean, as urban as we can call it
[2:04:06] anything in Grand County and that's a
good thing because you don't want people
[2:04:12] zipping by all of the existing homes
that you've got on the west side of
[2:04:15] Frasier, you know, at 45 50 miles an
hour and creating noise and and and
[2:04:21] safety issues. So if that road slows
down,
[2:04:25] you all need to really seriously think
about how Eisenhower
[2:04:29] needs to connect to 522
>> because it's the only way to get from
[2:04:35] Frasier to the ball fields and the kids
to get there without going across the
[2:04:41] railroad tracks and going back out on
Highway 40. So if Eisenhower connects to
[2:04:46] 522 now you've got a way that the
citizens of Frraasier can get to the
[2:04:50] ball fields and in talking to the you
know the school district as they look 20
[2:04:57] 15 20 25 years down the road ultimately
there's probably going to be a high
[2:05:02] school and a middle school in in this
end of the county. And when that happens
[2:05:07] it's it's either probably going to
happen on our property. There's some
[2:05:11] other ideas that are being floated
around, but it's going to be right in
[2:05:14] that neighborhood. So, if we have all of
this school thing, we have all of the
[2:05:18] workforce housing, we got the library,
the elementary school, and Oldtown
[2:05:23] Frasier, we've got to have that
transportation connection. And it's not
[2:05:28] just that intersection. We need to be
looking right now at a road plan. I
[2:05:33] mean, how is this all going to tie
together? Yeah.
[2:05:36] » We don't want to be reacting to it
afterwards. So if 522 gets built now, I
[2:05:41] mean the one of the main purposes of
that is so that locals can avoid some of
[2:05:46] the traffic that gets congested on the
Highway 40. I mean, we're going to know
[2:05:50] about it. So you can start in Tavern and
get to Safeway and avoid Highway 40. So,
[2:05:56] I I urge you all to coordinate with the
county and us to figure out how all of
[2:06:03] those in intersections and and how the
traffic's going to flow and and that's
[2:06:09] long before we ever solve the water
problem. That's like right now. So,
[2:06:14] thank you for letting me add to that.
thinking about use too. The end that's
[2:06:18] closest to County Road 5 fieldhouse
because we don't want it in the meadow
[2:06:24] and right here in town, but to have it
right across from the the ball fields,
[2:06:29] that's the place for a fieldhouse.
interesting because Scott mentioned
[2:06:32] tonight about a master plan thing that
visioning and
[2:06:35] » y
>> I think that's been one of the things
[2:06:37] that I keep hoping for is that we can
work with Denver water band in the north
[2:06:43] create this ball fields long so that we
can attract tournaments and be in the
[2:06:49] same business that steamboats in
>> Yeah.
[2:06:51] » and bring them in to stay in our new
hotels
[2:06:55] » and people will come and spend money in
the summer and be here. I'll throw
[2:06:59] something out that a lot of people were
surprised by and my friend Mike Ruuchi
[2:07:05] noticed this and brought it up.
The conservation ement that's on all the
[2:07:12] land that Peggy's talking about north of
the ball fields has been given by the
[2:07:16] Denver Water Board. The holder of the
conservation easement is the Grand
[2:07:22] County Board of Trustees.
>> It's not a land trust. It's our county.
[2:07:28] that gives us a huge amount of
flexibility in working with that
[2:07:33] particular conservation easement.
There's also an exception written right
[2:07:38] in the conservation easement for
educational purposes.
[2:07:42] So right now there's no prohibition on
anything that would be of course middle
[2:07:49] school, high school, it would certainly
be educational purposes. What we have is
[2:07:53] a lot of flexibility here as as as a
community to think about how everything
[2:07:59] from the elementary school to the other
side of the ball field should come
[2:08:03] together from a planning perspective.
Now, no promises. We have to work with
[2:08:08] the Denver Water Board. We all know how
easy they are to work with. But, uh, you
[2:08:13] know, I think if we as a community come
up with a plan that really works for the
[2:08:18] community, as long as we're not taking
any of Denver Waters water, I think that
[2:08:22] there's a chance that we could work with
them and some of these uses we're
[2:08:27] talking about like a fieldhouse school
could actually expand in that in in that
[2:08:33] direction. And it wouldn't take up that
whole meadow. I mean, it would probably
[2:08:36] take up I don't I don't even want to
guess, but not not that big. and all the
[2:08:42] discussions we've been having, everybody
points out the same thing. If if you're
[2:08:46] going to have future schools, taking
advantage of the existing
[2:08:51] recreation facility of the ball fields
cuts down on the amount of land you need
[2:08:55] for all of the high school activities.
So, we've got just an incredible
[2:08:59] opportunity to get ahead of the game.
Uh, one of the things that I've heard
[2:09:05] I've been saying for years and other
people are starting to say the same
[2:09:09] thing. We're the last frontier. All the
other ski areas have already done it.
[2:09:13] They've either did it right or they made
their mistakes. And we can learn from
[2:09:18] what's happened in the other ski areas
and hopefully avoid some of the
[2:09:22] mistakes. We still have the ability to
figure out how our community as a whole
[2:09:28] works. Got a worldclass ski area, got
all kinds of second homes. We got tons
[2:09:34] of town houses and golf course houses
and everything else. Now we have to
[2:09:40] figure out how the Grand County is not
going to become Aspen, Basalt, Rifle,
[2:09:48] you know, we don't want all our
employees to have to drive to Kremling.
[2:09:52] We want to be able to let people live
and work in this community. And that's
[2:09:55] my goal is do everything I possibly can
to pay back to a achieve that. And it's
[2:10:02] it's a big big project and we're going
to need a lot of help. So, it's an open
[2:10:06] tent. But right now, let's focus on that
transportation item because that's going
[2:10:11] to happen sooner than later. And the
last thing you want to do is build a
[2:10:15] road and then a year later come back and
say, "Oh, we didn't think about this."
[2:10:19] So, we need to think about how this is
going to work in the overall planning
[2:10:22] process.
>> Anything else?
[2:10:25] » Have they Have they mapped out exactly
where the road's going to go at this
[2:10:29] point?
>> Yes, sir. Yeah, there's you did the 404.
[2:10:33] » Okay.
>> Um, Adam, use your mic, please. Thank
[2:10:36] you.
>> It it essentially goes from the loop
[2:10:40] road that goes through Clark's property
and and starts at County Road 7 and
[2:10:44] three and sort of curves around through
our 43 acres and comes out at the
[2:10:49] intersection of uh County Road 50 there
by the gas meters or gas, whatever you
[2:10:55] want to call that, substation. And then
it there's a little jog where it hits
[2:10:59] County Road five to line up with the
road that goes next to the ball fields.
[2:11:05] » So the other thing that I'm a strong
proponent of and I think the county is
[2:11:11] listening is is to is to get some
roundabouts in there, you know, early on
[2:11:16] rather rather than just having stop
signs and all that type of stuff because
[2:11:21] that that slows down traffic. It's it's
a safe way to to to get around. So, I
[2:11:27] really encourage Frraasier to get
involved in that planning process
[2:11:30] because even though it's a county road,
it's really impacting the town of
[2:11:35] Frraasier at least as much as it is the
county.
[2:11:41] » I I was just saying that the road layout
is determined at this point. Um whether
[2:11:46] there's roundabouts or not, I I do not
know. Um I last December, I I renewed
[2:11:52] the 404 permit with the state. I work
for the county as a water resource guy.
[2:11:57] So, um yeah, that's moving forward.
>> Yeah, great.
[2:12:01] » It's really close. I think one more
step.
[2:12:03] » Yeah. I I don't know if we have final
Army Corps
[2:12:08] uh yet, but that's in play and and they
say it's expected to come through
[2:12:12] because it's a removal. This has been
going for 20 years, and it's just an
[2:12:15] updated process basically.
>> And the and the county staff and and the
[2:12:20] county is really supporting this and
they're doing it right. And you know, Ed
[2:12:25] Moyer's been working on this for for
years, and I think they're circling back
[2:12:32] after some community input that came in.
And I think they're really close to to
[2:12:36] to having it done. And we're going to be
fairly significant in terms of land
[2:12:43] acquisition because of this latest
property we bought. And we're going to
[2:12:47] cooperate. you know, we don't we're not
going to try to hold it up at all
[2:12:50] because the sooner we get that
connection, the sooner our kids can get
[2:12:54] from the school to the ball fields. And
to me, that's a that's a huge benefit.
[2:12:58] » Yeah.
>> To our community.
[2:13:01] » So, isn't the expense for a roundabout
mostly just the land? I mean, you save a
[2:13:06] lot of money on not having stop lights,
which are really expensive.
[2:13:10] » I haven't looked at their budget, so I
you're going to have to ask the county
[2:13:15] the cost. Yes, Jack.
>> You know,
[2:13:19] » I know from from our standpoint as
public record for processes is they went
[2:13:23] and got an appraisal and they said,
"This is what it's worth and this is
[2:13:26] what we'll give you." And we said,
"Sure." You know, we're not going to
[2:13:31] fight them. You know, whatever. We're
we're just like everybody else. You
[2:13:34] know, if they if the land's needed for a
public purpose, that's part of the cost.
[2:13:39] And they'll they'll buy the rightway.
But uh a lot of the rightway they
[2:13:44] already have because they've got County
Road 50. So and and that I don't know
[2:13:49] who actually owns the land behind the
ball fields whether that's whether they
[2:13:52] already own that or not. But there there
is some people in Tabernac who are not
[2:13:58] very happy about this but I'm I'm not
going to get involved in that.
[2:14:02] » The tabernac
>> any other questions?
[2:14:05] I'd be happy to talk to any of you
individually. I'd love your ideas. uh
[2:14:10] you know, we just want to listen and and
it's a big open tent. Uh I've had a lot
[2:14:15] of people in the community that have
development experience who've come
[2:14:20] forward and said, "We'd like to get
involved in this one way or the other,
[2:14:23] either from a you know, well, I'll just
say we've got a lot of help." That's
[2:14:28] good.
>> All right.
[2:14:30] » Thank you. That's great. Thanks.
>> Thank you. Thank you.
[2:14:34] » Oh, here comes the train. About to close
the door. Um, resolution 2026 0803
[2:14:41] on-site distribution extension Excel
public works facility. Paul,
[2:14:52] good evening, mayor, board of trustees.
Paul Johnson, public works director for
[2:14:55] Frasier. Uh, the matter before you is
the on-site distribution extension
[2:14:59] agreement with Excel Energy. So very
similar to what we did with not parks
[2:15:04] electric to get electric run. Uh this is
the um agreement for Excel to bring gas
[2:15:10] to the public works facility. They would
be coming from their line currently in
[2:15:14] Alderbrook and they'd be doing a
railroad bar bringing it down the
[2:15:18] southern property line and then up the
western property line to the uh
[2:15:23] cemetery. Part of their agreement is
they have to run gas all the way across
[2:15:26] the property. So they've uh finally got
that all worked out to us and sent that
[2:15:30] over to us. Um that comes at a cost of
$188,617.
[2:15:36] So the idea is to handle it the same way
we did with Mountain Parks, get the
[2:15:40] infrastructure run, and then once the
coops are issued, we have we can go back
[2:15:44] up to three years to recoup costs. So um
basing this on keeping this project
[2:15:49] moving forward, all the work we've done
over the last two years is just to keep
[2:15:52] this moving forward. So wanted to bring
that to the board for uh managers
[2:15:56] authorizing the manager to be able to
sign that agreement with Excel.
[2:16:00] » So I'm curious on the the bore
is that's part of this 188,617.
[2:16:08] » Yeah. So in the packet where it shows um
the gas man was the title of this.
[2:16:13] » I got the map. I printed out the little
map thing which is cool.
[2:16:16] » So on that one right there it includes a
boar in green, right?
[2:16:20] » Yep. So, I was talking about they're
going to do a boar and then they're
[2:16:23] going to run the they would bury the the
rest of it there, but a boore under the
[2:16:28] railroad at 12 feet deep and they
require their own bore. So, they
[2:16:32] wouldn't uh be able to use any of the
five that were existing
[2:16:35] » in the same easement though.
>> Are they going to get their own new
[2:16:38] easement apart from Grand Park? Um,
back when those boards were put in in
[2:16:44] the early 2000s, Grand Park approached
Excel and Excel says they do their own
[2:16:47] BS so they
>> they put one in right next to the
[2:16:51] existing five that are there that bring
water, sewer, raw water, comms. Um,
[2:16:58] it's another one blanket.
[2:17:04] » Any other questions?
[2:17:09] I'd like to make a motion to approve
resolution 2026803
[2:17:14] on-site distribution extension for Excel
public works.
[2:17:18] » I'll second.
>> Any further discussion? All in favor?
[2:17:23] » Any opposed?
Okay. Passes.
[2:17:26] » Thank you.
>> Thanks, Paul.
[2:17:29] » Quick one. All right. Resolution 2026804
IGA with Gran County Clerk for November
[2:17:36] 2026 election. Antonet.
[2:17:42] » Hello board and trustees again. Antinet
McVey town clerk.
[2:17:46] So I wanted to bring the IGA back with
the county to coordinate the election. I
[2:17:50] have done further research um on the
election. Um so the background is the
[2:17:55] voters approved ballot question 2A
November 5th 2024 to move the regular
[2:17:59] municipal election from April to
November and even numbered years. 2026
[2:18:03] will be the first municipal election to
be held in November of this year. Um at
[2:18:08] the last meeting I raised concerns
regarding the Grand County clerks clerk
[2:18:12] and recorder's ability to protect the
integrity of the voters and the clerk's
[2:18:16] ability to understand and follow the
uniform election code of 1992 and the
[2:18:20] Colorado municipal election code of
1965. title one of the Colorado by
[2:18:24] statutes. Um the board discussed um my
ability to administer the 2026 election
[2:18:30] as a standalone election and not
coordinate with Grand County. In further
[2:18:34] researching the option, I spoke with the
county clerk's office regarding the use
[2:18:37] of the ballot box at the Frasier
Municipal or the Frasier Metropolitan
[2:18:41] Recreation Center. I inquired if it
would be possible to simultaneously use
[2:18:45] the ballot box for the county's
administer general election and the
[2:18:48] Frasier municipal election each having
separate ballots. Um they told me they
[2:18:54] spoke with the secretary of state and it
was determined that it was not possible.
[2:18:57] This would raise security issues with
the ballots. One entity receives another
[2:19:01] entity's ballots and I concur with that
concern. I'll be honest, I don't know
[2:19:05] that that's totally accurate the
information that they told me from the
[2:19:08] secretary of state but that's what
they've told me. Um, so it leaves
[2:19:12] Frasier with no ability to use a ballot
box um outside of the available 24 hours
[2:19:18] and and be outside and be available for
people to be able to drop ballots 24
[2:19:22] hours a day.
>> Um, if the board would have a mail
[2:19:24] ballot election, the only place to drop
off a ballot would be here at town hall
[2:19:28] and people could only do it Monday
through Friday during business hours.
[2:19:32] Um, I I would be concerned the limited
days and times to return a ballot. um
[2:19:37] the voters could be disenfranchised or
confused about what to do with their
[2:19:42] ballot. Um the residents of Frasier have
used the ballot box at the recreation
[2:19:46] recreation center for many years and I
know that they're used to dropping
[2:19:49] ballots there. Um and I'm concerned that
Fraser standalone ballot could get the
[2:19:54] ballots could get returned to the
recreation center and they potentially
[2:19:57] don't make their way back to Frasier and
maybe don't even get counted. I would
[2:20:00] hope that wouldn't be the case, but I
just don't know. Um the and another
[2:20:05] option the board could consider would be
to have a polling place election. Um
[2:20:11] this would require residents to vote in
person the day of the election. No
[2:20:15] ballots would be mailed. Um the town of
Frasier hasn't conducted a polling place
[2:20:20] in election in at least 20 years. Um a
polling place election could also
[2:20:24] confuse voters why they receive a
general election ballot with no Fraser
[2:20:27] trustees. and a polling place election I
think could result in lower v voter
[2:20:32] turnout and again additional confusion
with the voters. Yeah, that is what I
[2:20:36] absolutely want to avoid.
>> So I'm recommending that we go ahead and
[2:20:40] coordinate the election with Grand
County and approve resolution 2026804
[2:20:46] um the IGA regarding the conduct and the
administration of the November 3rd um
[2:20:50] 2026 election. Um by coordinating the
election the voters would receive one
[2:20:55] ballot with a clear instruction of where
to return it. This could could eliminate
[2:20:58] any confusion for the 20 26 November
election. Would also recommend that
[2:21:04] Frraasier, the town of Frasier research
installing an exterior ballot box here
[2:21:07] at town hall. Um that could be used in
future elections. At this time, there's
[2:21:12] no way to get one in before the November
2026 election of this year, but I think
[2:21:16] that we could potentially do that before
the 2028 election in two years. So, the
[2:21:22] board really has, in my opinion, the two
options. we coordinate with the county
[2:21:26] or we do a polling place election. I
think that those are really the only two
[2:21:29] options that the board has.
>> I'd like to make a motion to approve
[2:21:34] resolution
20260 804 IGA with Grand County Clerk
[2:21:39] for the November 26th election.
>> Second. Is there further discussion on
[2:21:45] this?
All in favor? I
[2:21:48] » thank any opposed. I
>> appreciate your concern. Yeah. Motion
[2:21:52] passes.
All right,
[2:21:57] we're on to updates. Comm uh we got
committee minutes listed. Any updates
[2:22:02] from staff?
>> Uh Paul's got a few for us.
[2:22:08] » So I want to get to give a quick update
on the utility billing. Uh the board had
[2:22:12] requested us to move to monthly building
billing. Um, so our billing software,
[2:22:17] Cassell, uh, in communication to Becky
today, uh, stated that it'd be possible,
[2:22:22] but it's possibly a three-month process
for them to make that switch at a cost
[2:22:26] of4 to $6,000 for that transition. Um,
so just wanted to know if the board
[2:22:31] wanted us to move forward with that. So
they probably would not be able to go
[2:22:34] billing until fourth quarter, maybe
first part of the year, just the way
[2:22:38] that system is set up. It's not extra
work on our end, but the system, I
[2:22:42] guess, is not set up to do that. So, um,
they had a long list of items that would
[2:22:46] be required that we would need to do.
And so, they're say it's 20 to 30 hours,
[2:22:51] they say at $200 an hour. So, don't
really know what it's going to look
[2:22:54] like, but we can still pursue moving to
monthly. Um, just there would be a cost
[2:22:58] involved now where we didn't think there
was one before.
[2:23:02] » That's a one-time cost.
>> Onetime cost. Okay.
[2:23:05] » I think we still move forward with
>> Yeah. forward.
[2:23:08] » Yeah. I think we already decided we're
going to get we're going to have monthly
[2:23:12] billing, right? Yeah. So, okay.
>> Even know there's an expense that be
[2:23:16] attached.
>> Yeah.
[2:23:17] » Yeah. And we'll update communications
with the community to let them know that
[2:23:21] we're moving forward with it, but it
will be delayed. So, they can expect to
[2:23:24] see that likely hopefully beginning of
2027.
[2:23:28] So, when we went to notify the community
about the our increase in rates for
[2:23:35] people that use more than
um
[2:23:40] it might have come through the billing.
I didn't look at my usual app that has
[2:23:45] my billing, but I never got a separate
email that just told me about it.
[2:23:50] » Yeah.
>> Talked about that.
[2:23:51] » Oh, have you?
>> No. And we apologize for that. Becky um
[2:23:56] was looking into the the
gazelle work that she has to do with our
[2:24:01] updating our our contract. So that
mailing has not yet gone out
[2:24:06] » um in terms of because it was supposed
to confirm the monthly billing. So she
[2:24:11] will send something out um and we'll let
people know that the monthly billing has
[2:24:15] been delayed but that the increased fee
structure is in place um based on the
[2:24:20] drought pricing.
>> Okay. So, people really didn't get a
[2:24:25] heads up on the increase in fees for our
drought pricing.
[2:24:29] » They were supposed to, but yeah, we
posted it on social media, but we I
[2:24:33] don't believe it's gone out. So,
>> should we charge it if we haven't
[2:24:38] » notified everybody
and 20 it's been cut 20%. I don't know.
[2:24:43] I just seems like
>> I think notice that
[2:24:50] » you agree with me. Well, I mean, just
that was my objection to the last vote
[2:24:55] we had on this because we didn't have
people don't have visibility to their
[2:25:00] usage. We didn't move the monthly
billing. They weren't notified and now
[2:25:05] we're in a situation
again. I didn't think it was ready ready
[2:25:09] for prime time and it's and it's not.
So, are we backtracking or I mean, I
[2:25:14] don't know. I do feel like that's a
little bit of surprise billing for
[2:25:19] people that
>> don't know. And there's just been
[2:25:22] » a lot of confusion and a lot of
misinformation or no information about
[2:25:27] the change. So,
>> and right now the website just says
[2:25:33] upcoming rate change. It doesn't say.
It says bolo for an email watering
[2:25:40] restrictions upcoming rate change.
>> But you have to go to the website.
[2:25:45] There's no
>> if you got a water scope if I think it's
[2:25:49] already changed to monthly.
You can pull up monthly. I mean think
[2:25:54] for August it's sort of changed but
people haven't been notified especially
[2:25:59] by the rate change I guess is the other
thing.
[2:26:03] » So has that rate change been built into
our program yet that Becky uses for
[2:26:10] billing or not? I'm guessing not.
And if it hasn't been, I don't think we
[2:26:16] should charge people for that rate
change. If the drought sticks, we'll
[2:26:20] make it happen next year and make it
part of our policy and make sure
[2:26:23] everybody gets notified and they know
that this is how it is when we are in
[2:26:28] drought conditions.
>> So Paul, can you update us on usage?
[2:26:33] It'd be interested to know when we made
the change
[2:26:37] » for watering how much of an impact. I
don't have an update other than what I
[2:26:42] did last board meeting where there was a
20% uh reduction in irrigation use. We
[2:26:47] had a massive decrease once we started
the social media campaign.
[2:26:53] So I I would say that I got no notice
whatsoever uh in Kremling. It was social
[2:26:59] media only posted on the website and um
two day a week watering same as what
[2:27:04] we've done. So, unless I I mean, I'm
signed up for the alerts, so I get those
[2:27:09] alerts when they they post something,
but um I was not notified via a separate
[2:27:14] um
email. And Water Scope's always going to
[2:27:17] give you monthly. It'll give you daily
usage. There's no change in Water Scope.
[2:27:20] Now that you have
Watercope, you can see your usages. It's
[2:27:24] not uh
[2:27:29] » We'll continue to pursue getting monthly
billing.
[2:27:31] » Yeah.
[2:27:35] Next update.
>> Can we get something out right away? I
[2:27:37] mean, can we send something out? I mean,
it's it's it's only a week into August,
[2:27:42] but if we're not going to change the
rate, we're going to continue double on
[2:27:46] the rates. We got to let people know
>> and I think we could send something out
[2:27:50] tomorrow. Um, and again, something was
supposed to go out. So, I apologize that
[2:27:54] has not happened. It's been We're kind
of in a situation now where it's been on
[2:27:57] the website and social media and at
picnics. So, some people have seen it,
[2:28:01] but I agree that it should be emailed to
everybody
[2:28:05] » given that we're 5 days in. I would
think people have not moved into that
[2:28:09] second tier yet where that increased
>> rate has happened. Um, I know when I
[2:28:15] talked with Becky today, we wanted to
update the board about the monthly
[2:28:19] billing status and then we're going to
send out a communication letting people
[2:28:22] know that while this was discussed, this
is going to be implemented in 2027.
[2:28:27] Um but that all other drought
restrictions were in effect with that
[2:28:31] billing information.
>> Yeah. And then spelling out what the
[2:28:35] tiers are and what the costs are.
>> Correct. Yeah.
[2:28:38] » I think the Well, you need to get it out
this week or don't charge people.
[2:28:46] » That's kind of my opinion.
>> Yep.
[2:28:48] » The travel restrictions, did that get
mailed out to everybody?
[2:28:52] » I don't remember nothing either.
>> No. Oh, and again, I think I think they
[2:28:57] were waiting to sort out the monthly
billing and thought that that
[2:29:00] communication had gone out, but it
hasn't. So, it's just been through
[2:29:03] social media and picnic and on our
website.
[2:29:11] » Okay. Thank you.
>> And I guess
[2:29:13] » make it so I'm not 100% sure if the
drought restrict the initial drought
[2:29:16] restrictions were supposed to go out if
that went out or not. But if you have
[2:29:20] not seen them with your water bills,
>> I got I didn't get it mailed, but I got
[2:29:24] it in a text with a link
for the travel description,
[2:29:31] » which is a good point. Do you know,
Paul, because I know Lucas has put a lot
[2:29:35] of effort into contacting the people
that are in tier 2 and tier three or
[2:29:41] that are getting close to tier 2 and
tier three. Um my understanding is
[2:29:46] notifying them that they are approaching
those levels where that drought pricing
[2:29:50] does take effect.
>> Yeah. Lucas is calling anybody that's
[2:29:53] using a lot of water. It doesn't he's as
soon as he sees excessive use in a on a
[2:29:58] like he gets if he gets a flag that
there's been a he tries to make those
[2:30:02] phone calls. Um, I know he made a phone
call just this week um to somebody and
[2:30:08] um he said, "It looks like you're using
you have a toilet flapper that is
[2:30:12] leaking constantly." And the property
owner said, "Yeah, that toilet is making
[2:30:15] a lot of noise." And but that's that is
a significant amount of water if that
[2:30:20] when that toilet runs non-stop for 24
hours a day for weeks at a time. So,
[2:30:23] yes, Lucas makes phone calls to try and
make people aware of their water use so
[2:30:27] that nobody ends up in tier 2 without
their knowledge of doing it. Okay.
[2:30:32] » You know,
>> willingly going into those tears.
[2:30:35] » Thank you, Luka.
>> Yeah, he's been super proactive on that
[2:30:38] individual basis, right? Yeah.
>> I had a a friend with a rental that he
[2:30:44] got a call from Lucas and our friend
went and looked and he's like, "Sure
[2:30:48] enough, toilet's leaking." So, same
deal. Like,
[2:30:52] » it's it's impressive. It's working.
>> It's working.
[2:30:54] » So, people that are in jeopardy are
notified.
[2:30:58] » I mean, it's really more irrigation than
it is. Well, it doesn't matter, but it's
[2:31:03] getting notified.
>> Every lot in Grand Park and Rendevous
[2:31:07] gets to irrigate 250 square feet.
>> That's our water right.
[2:31:12] » Well, Rendezvous doesn't irrigate other
than drip systems.
[2:31:16] » Yeah. Nobody has
>> But that's just the water that serves
[2:31:18] that system is is those developments.
Every EQR gets 250 square feet of
[2:31:24] irrigation and the quantity is not even
enough to sustain blueg grass. So, so
[2:31:31] you're kind of in a real interesting
situation where everybody wants blueg
[2:31:36] grass, but our water right doesn't
support it,
[2:31:37] » right? And it's limited to a very a
parking spot basically.
[2:31:43] So, you know, it's one of those things
where I I think unfortunately if you're
[2:31:48] putting in an expensive irrigation
system and putting it in your entire
[2:31:52] yard, it's a poor investment.
[2:31:57] Well, so back to where we are with
notifying people about the drought
[2:32:04] restrictions and now with fees
increasing and all that. I mean,
[2:32:11] what do we do with that?
>> I think we send out an email tomorrow,
[2:32:14] but it does sound like everybody who is
in jeopardy has been notified. So, at
[2:32:18] least, you know,
>> nobody's been is hanging out, right? not
[2:32:24] on notice,
>> right?
[2:32:26] » I mean, I got a phone call, so I need um
>> Okay.
[2:32:30] » I had to lower my my watering, so yeah,
that's good. It's fine.
[2:32:36] » All right. Works for me.
>> Mhm.
[2:32:40] » I have several more.
>> Can get it out.
[2:32:43] » U
>> I'll be looking for my email.
[2:32:45] » Um second one, um just let everybody
know that the filter plant at the
[2:32:49] wastewater treatment plant is turned
back on on Monday. So, they will do uh
[2:32:53] they'll work with Tetrate Tech um and
the supplier to make sure everything's
[2:32:58] running perfectly and then we will
notify Northern Water that we're back
[2:33:02] online and start uh collecting that
revenue stream again. Um Clayton Court
[2:33:07] is scheduled for paving on August 24th.
So,
[2:33:10] » with good weather, it's not the end of
the project, but um if you drive by
[2:33:14] there, you'll see our nice red sidewalks
and our our new rollface curb um with
[2:33:19] the uh JNL property acquisition that
that is going in. So, uh right now we've
[2:33:24] got some subgrade problems which was to
be expected on Clayton Court on
[2:33:27] everything we've seen with the waterline
install, the strong construction.
[2:33:30] There's just a lot of organics in there.
Um so, working on that, but the August
[2:33:34] 24th is when paving is scheduled. Um
barring any delays with weather.
[2:33:39] And then uh today actually I received
the uh 60 to 80% design plans for the
[2:33:45] exterior bathroom access here at town
hall. So I'll be reviewing those this
[2:33:49] week and um getting those so we can at
least get that out to to bid and
[2:33:53] hopefully try and get somebody lined up
to get that work done. And then lastly,
[2:33:57] uh I don't know if anybody noticed the
wiring at the bathrooms today, but the
[2:34:00] security cameras are being installed
starting today. So hopefully we'll have
[2:34:04] uh cloud-based security cameras out
there. And then a motion sensors in
[2:34:10] inside the uh all three rooms to make
sure that no there's nobody in there
[2:34:14] after hours.
>> What about during the day?
[2:34:18] » Well, they're unlocked during the day,
so I can't do anything about that.
[2:34:21] » No, I'm thinking the cameras.
>> Well,
[2:34:23] » any any chance of somebody peeping at
the cameras during the day?
[2:34:27] » Looking at
>> if they're shining in the bathrooms.
[2:34:29] » No, there's no cameras in illegal
kind of cameras are outside. Just the
[2:34:36] motion motion detectors inside motion
detectors are inside.
[2:34:42] » Yeah, it was pointing towards the doors.
>> Good. And
[2:34:48] » I do think that we should not invest
into that job until we've addressed our
[2:34:54] budget and see where we're at this year
and our sales tax dollars.
[2:35:01] » I
>> Which job? Because
[2:35:02] » oh
>> the project put
[2:35:04] » doing the bathroom access outside.
>> We did set some funds aside in the
[2:35:07] budget for that but got to make sure
it's enough.
[2:35:10] » Okay. From for this year
>> yes
[2:35:12] » that we have. Okay.
[2:35:16] » That's all my updates.
>> Oh, that's it. Okay.
[2:35:18] » Okay.
>> Board. Any updates?
[2:35:22] » Sarah?
>> We are looking to make an offer to an
[2:35:26] assistant town planner. So hopefully at
our next board meeting we can tell you
[2:35:30] that that individual has accepted. Um
the assistant town manager position is
[2:35:36] posted. Um we've got started getting
some applications in for that. Uh we
[2:35:43] have not yet had anybody pick up
petitions to run for board member seats.
[2:35:48] Oh, we did. Oh, good job. All right. We
have one one person. So, um, board
[2:35:53] members that are running for their
seats, please make sure you pick up your
[2:35:57] petitions. And if there's anyone you
would like to encourage to run, uh,
[2:36:01] please send them our way.
>> When's the deadline
[2:36:06] » to pick them up?
>> Get it back.
[2:36:08] » That's when they're due. Oh, okay.
>> They're available now.
[2:36:11] » Okay.
>> Yeah. Soon.
[2:36:14] » And I just went back through my emails.
There was an email that went out on July
[2:36:18] 6th about the mandatory water
restrictions. So that was
[2:36:23] » restrictions just on a rate increase.
>> No, the rate. No, no, the rate.
[2:36:26] » It was after the first board meeting.
>> So, uh, July 6th,
[2:36:32] our bills,
>> our bill came out.
[2:36:36] » Okay.
>> So, it did.
[2:36:38] » That did go out.
>> Okay, that's good.
[2:36:41] » Thank you for for that. And Lewis, I did
figure out or I looked at where that
[2:36:47] confusion around the HOA watering was
coming from that you had brought up at
[2:36:52] the last board meeting. So, I know I
emailed you about this, but just for
[2:36:56] everybody's clarification, um it had
listed commercial buildings, multifamily
[2:37:02] properties, and HOAs as having their own
watering days that was meant to be HOA
[2:37:08] common spaces. Um, so like if there's a
grassy area that is maintained by an
[2:37:14] HOA. So we've cleaned up that language
to specify that. So any single family
[2:37:19] residences should be on odd or even
days.
[2:37:21] » So you can do that. That's the flyer
that went.
[2:37:24] » Yep. And so that's when we've updated
just to say HOA common areas.
[2:37:28] » Right. Thank you.
[2:37:33] » Yeah.
>> Just two quick um updates. I'd like to
[2:37:35] give a shout out to Jeff Lundy who made
these beautiful staff tables for us.
[2:37:39] Yeah.
>> Um he did them here in the workshop. Um
[2:37:42] and then uh Zimmerman, right?
>> Christian
[2:37:47] » Christian received his class C water
license um at the wastewater treatment
[2:37:52] plant.
>> Awesome.
[2:37:53] » Yeah.
>> Hey,
[2:37:54] » nice.
>> Cool.
[2:37:57] » All right. We need to move into
executive session.
[2:38:04] I'd like to make a motion to enter into
executive session for the purposes of
[2:38:08] determining positions relative to
matters that may be subject to
[2:38:12] negotiations, developing strategy for
negotiations, and or instructing NO
[2:38:16] negotiators under CRS section 24-6-424E
[2:38:23] regarding the joint facilities oversight
committee agenda review, including town
[2:38:28] manager Sarah Katanzerite and public
works director Paul
[2:38:33] Second.
>> Any further discussion? All in favor?
[2:38:38] » Any oppose?
>> Okay.
[2:38:44] » Um, this will be recorded.
>> So, but stop.
[2:38:49] » You don't get
[2:38:53] » It's really weird.
[2:38:57] » Yes.
[2:39:00] The week we approved