Notification requirements delay Fraser Rec District bond resolution
Sky-Hi Daily News
The resolution to cover all the current legal requirements and upcoming legal documents for the Community Enhancement Project was postponed Tuesday night by the Fraser Valley Metropolitan Recreation District’s board of executives.
The resolution authorizes the district to issue the general obligation bonds for the approved election, and authorizes the levy of property taxes to repay the bonds.
Executive Director Cyndy Flores said the board could not approve the resolution Tuesday because she had been unaware of a legal requirement by the county to post the meeting with the county clerk and recorder three days prior to last night’s meeting.
Usually regular or special meetings must be posted in three places ” which she had done ” but since the resolution involved a bond question, it was supposed to have been posted with the county clerk as well.
Adoption of the resolution was moved to the Tuesday, Dec. 11, meeting, and the information will be posted with the county clerk accordingly, Flores said.
Flores also mentioned that because of a lawsuit being filed against the recreation district, the wording on the bond documents needs to be changed to reflect the litigation.
Grand County resident Patrick Rupert is suing president of the board Jim Fox on behalf of the district, along with Sara Rosene, on behalf of Grand County Clerk and Recorder office, and Mike Coffman, the Colorado Secretary of State.
Rupert, a registered voter in the recreation district, is suing under the auspices of Colorado Secretary of State Rule No. 12: Rules concerning mail ballot elections.
Rule 12.9.2 states that all places of deposit of ballots, or any walk-in voting locations, must be located within the political subdivision where feasible.
In a nutshell, Rupert believes that by holding the elections at the Grand County Courthouse, the voting for the Community Enhancement Project took place outside the “political subdivision,” and therefore required written permission from the Secretary of State.
In the lawsuit, it states that in light of the violations of Rule 12.9.2, the election results should be decertified.
The board put on their poker faces as they discussed what would happen to the bonds in light of the lawsuit, but Flores seemed confident that the resolution won’t be impacted and that the bond selling will not be slowed down. She wasn’t sure, however, what the process will entail, since three individuals are being sued and therefore the lawsuit may take some time.
But no matter what the result of the lawsuit is, it is a requirement of the bonding firm to reword the bonds and disclose the information about the lawsuit so that buyers are aware.
The lawsuit may also increase insurance premiums, and premiums on the bond. Flores added she spoke with the district attorney, who she said does not believe the lawsuit will affect the selling of the bonds or the process.
The bonds are expected to be sold the week of Dec. 10. After they are sold, the district must decide within five days in which bank to despot the bond’s proceeds, which will be $19.5 million.
The district is sending out a request for proposal (RFP) to banks to find the best offer.
RFPs will also be sent out to seek an owner’s representative and an architect for the recreation center, the Pole Creek Clubhouse and the Fraser Valley Sports Complex.
The irrigation system at the golf course does not require an owners representative.
Flores expects to send out the RFPs on Dec. 11 and have a decision about the architect and owner’s representative on Jan. 22.
Once the resolution is passed on Dec. 11, the district will follow the guidelines set by the state law. Roughly 2 percent of the bond proceeds have to be spent by July 1; 45 percent has to be spent in 18 months; and all of the proceeds have to be spent within three years. If the district doesn’t meet the state’s requirements, it must rebate a certain percentage to the IRS.
On another note, Fox pointed out that interest on $19.5 million will generate a lot of money.
“We’ll need help from experts to tell us about that interest,” Fox said.
Flores added that the interest must be spent on construction of the projects, but it is not specified on any one project. Fox said the board needs to brainstorm about what to do with that money.
Campaign committee looking at grants
Beth Sands, member of the board, gave an update on the campaign committee for the Community Enhancement Project. She said the committee is working toward meeting deadlines for grant applications. Jan. 13 is the deadline for the Lennox Foundation, for example, which already gave $25,000 towards the campaigning for the ballot question. An additional grant could bring in another $275,000.
The committee is also working toward setting up focus groups, local committees or meetings to let community members make recommendations and share ideas for the projects.
Sands to work for Cornerstone
Sands announced last night she accepted a position with Cornerstone Holdings, the real estate development company of Grand Park. She said she has to abstain on voting for anything involving Grand Park from now on. Sands, who currently works in real estate, will be working in the sales department.
Support Local Journalism
Support Local Journalism
Readers around Grand County make the Sky-Hi News' work possible. Your financial contribution supports our efforts to deliver quality, locally relevant journalism.
Now more than ever, your support is critical to help us keep our community informed about the evolving coronavirus pandemic and the impact it is having locally. Every contribution, however large or small, will make a difference.
Each donation will be used exclusively for the development and creation of increased news coverage.
Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.
User Legend: Moderator Trusted User