HomeMy WebLinkAboutIGA Solaris Metro District 1, 2 ,3 and TOV INTERGOVERNMENTAL AGREEMENT BETWEEN
THE TOWN OF VAIL, COLORADO,
SOLARIS METROPOLITAN DI5TRICT NO. 1 ,
SOLARIS METROPOLITAN DISTRICT NO. 2,
AND SOLARI5 METROPOLITAN DISTRICT NO . 3
THIS AGREEMENT is made and entered into as of this 22nd day of March, 2007 , by
and between the TOWN OF VAN DISTRICT NO �1 �SOLARIShMETROPOLITAN DISTRICT�
and SOLARIS METROPOLITA uasi-munici al co orations and
NO . 2, and SOLARIS METROPOLITAN DISTRICT NO. 3 , q p �
political subdivisions of the State of Colorado (the "Districts") . The Town and the Districts are
collectively referred to as the Parties .
RECITALS
WHEREAS , the Districts were organized to provide those services and to exercise
powers as are more specifically set forth in the Districts ' Service Plan, approved by the Town on
September 19, 2006 ("Service Plan") ; and
WHEREAS , the Service Plan makes reference to the execution of an intergovernmental
agreement between the Town and the Districts ; and
WHEREAS , the Town and the Districts have determined it to be in the best interests of
their respective taxpayers, residents and property owners to enter into this Intergovernmental
Agreement ("Agreement") .
NOW, THEREFORE, in consideration of the covenants and mutual agreements herein
contained, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties hereto agree as follows :
COVENANTS AND AGREEMENTS
1 . Ouerations and Maintenance. The Districts shall operate and maintain the
Public Improvements (as defined in the Service Plan) in a manner consistent with the
Development Agreement or other Approved Development Plan, and otherwise subject to the
rules and regulations of the Town and applicable provisions of the Town Code.
2 . Construction Standards. The Districts will ensure that the Public
Improvements are designed and constructed in accordance with the standards and specifications
of the Town and of other governmental entities having proper jurisdiction, as applicable. The
Districts will obtain the Town' s approval of civil engineering plans and will obtain applicable
permits for construction and installation of Public Improvements prior to performing such work.
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3 . Issuance of Privatelv Placed Debt. Prior to the issuance of any privately
placed Debt, the Districts shall obtain the certification of an External Financial Advisor
substantially as follows :
We are [I am] an External Financial Advisor within the meaning of
the District' s Service Plan.
We [I] certify that ( 1 ) the net effective interest rate (calculated as
defined in Section 32- 1 - 103 ( 12) , C .R. S .) to be borne by [insert the
designation of the Debt] does not exceed a reasonable current [tax-
exempt] [taxable] interest rate, using criteria deemed appropriate
by us [me] and based upon our [my] analysis of comparable high
yield securities ; and (2) the structure of [insert designation of the
Debt] , including matuthe financial c rcumstances o fhe D strictis
reasonable considenng
4 . Incl_• The Districts shall not include within any of their boundaries
any property outside the Service Area (as defined in the Service Plan) without the prior written
consent of the Town Council .
5 , Total Debt Issuance. The Districts shall not issue Debt in excess of $20
million.
6 . Debt Issuance Limitation. The Districts shall not be authorized to incur
any indebtedness until such time as the Districts ha�e approved and executed this Agreement.
'7 . Monies from Other Governmental Sources . The Districts shall not apply
for or accept Conservation Trust Funds, Great Outdoors Colorado Funds, or other funds
available from or through governmental or non-e mlent with the Town.� This Sec�tion hallnot
for, except pursuant to an intergovernmental agr
apply to specific ownership taxes which shall be distributed to and a revenue source for the
Districts without any limitation.
g . Bankruptcv• All of the limitations contained in the Service Plan,
including, but not limited to, those pertaining to the Maximum Debt Mill Levy and the
Maximum Debt Mill Levy Imposition Term have been established under the authority of the
Town to approve a Service Plan with conditions pursuant to Section 32- 1 -204 . 5 , C .R. S . It is
expressly intended that such limitations :
(a) Shall not be subject to set-aside for any reason or by any court of
competent jurisdiction, absent a Service Plan Amendment; and
(b) Are, together with all other requirements of Colorado law,
included in the "political or governmental P�e also included in the "segulatory or telec o al
Bankruptcy Code ( 11 U . S .C .) Section 903 , and
approval necessary under applicable nonbank de Section"943 (b)(6)red for con firmation o f a
Chapter 9 Bankruptcy Plan under Bankruptcy Co
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9 . Debt Issuance Limitations . Any Debt, issued with a pledge or which
results in a pledge, that exceeds the Maximum Debt Mill Levy and the Maximum Debt Mill
Levy Imposition Term, shall be deemed a material modification of the Service Plan pursuant to
Section 32- 1 -207, C . R. S . and shall not be an authorized issuance of Debt unless and until such
material modification has been approved by the Town as part of a Service Plan Amendment.
10. Dissolution. Upon an independent determination of the Town Council
that the purposes for which the Districts were created have been accomplished, the Districts
agree to file petitions in the appropriate District Court for dissolution, pursuant to the applicable
State statutes . In no event shall dissolution occur until the Districts have provided for the
payrnent or discharge of all their outstanding indebtedness and other financial obligations as
required pursuant to State statutes .
11 . Disclosure to Purchasers . The Districts will use reasonable efforts to
assure that all developers of the property located within the Districts provide written notice to all
purchasers of property in the Districts regarding the Maximum Debt Mill Levy, as well as a
general description of the Districts ' authority to impose and collect rates, fees, tolls and charges.
The form of notice shall be filed with the Town prior to the initial issuance of the Debt of the
Districts imposing the mill levy which is the subject of the Maximum Debt Mill Levy.
12 . Service Plan Amendment Requirement. Actions of the Districts which
violate the limitations set forth in V.A. 1 -6 or in Section VI . B-G of the Service Plans shall be
deemed to be material modifications to the Service Plan and the Town shall be entitled to all
remedies available under State and local law to enjoin such actions of the Districts .
13 . Annual Report. The Districts shall be responsible for submitting an
annual report to the Town Manager' s Office no later than August 1 st of each year following the
year in which the Order and Decree creating the Districts has been issued, containing the
information set forth in Section VII of the Service Plan.
14 . Maximum Debt Mill Lew. The "Maximum Debt Mill Levy" shall be the
maximum mill levy the Districts are permitted to impose upon the taxable property within the
District for payment of Debt, and shall be determined as follows :
(a) For the portion of any aggregate District ' s Debt which exceeds
50% of the District' s assessed valuation, the Maximum Debt Mill Levy for such portion of Debt
shall be fifty (50) mills less the number of mills necessary to pay unlimited mill levy Debt
described in Section VLC .2 of the Service Plan; provided that if, on or after January 1 , 2007,
there are changes in the method of calculating assessed valuation or any constitutionally
mandated tax credit, cut or abatement; the mill levy limitation applicable to such Debt may be
increased or decreased to reflect such changes, such increases or decreases to be determined by
the Board in good faith (such determination to be binding and final) so that to the extent possible,
the actual tax revenues generated by the mill levy, as adjusted for changes occurring after
January 1 , 2007, are neither diminished nor enhanced as a result of such changes . For purposes
of the foregoing, a change in the ratio of actual valuation shall be deemed to be a change in the
method of calculating assessed valuation.
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(b) For the portion of any aggregate District' s Debt which is equal to
or less than 50% of the District ' s assessed valuation, either on the date of issuance or at any time
thereafter, the mill levy to be imposed to repay such portion of Debt shall not be subject to the
Maximum Debt Mill Levy and, as a result, the mill levy may be such amount as is necessary to
pay the Debt service on such Debt, without limitation of rate.
(�) For purposes of the foregoing, once Debt has been determined to
be within Section VII . C . 2 of the Service Plan, so that the District is entitled to pledge to its
payrnent an unlimited ad valarem mill levy, the District may provide that such Debt shall remain
secured by such unlimited mill levy, notwithstanding any subsequent change in the District' s
Debt to assessed ratio . All Debt issuedS . a d all other r quirement ofState lawliance with the
requirements of Section 32- 1 - 1101 , C .R.
To the extent that the District is composed of or subsequently organized into one
or more subdistricts as permitted under Section 32- 1 - 1101 , C .R. S . , the term "District" as used
herein shall be deemed to refer to the District and to each such subdistrict separately, so that each
of the subdistricts shall be treated as a separate, independent district for purposes of the
application of this definition.
15 . Maximum Debt Mill Levv Imposition Term. The Districts shall not
impose a levy for repayment of any and all Debt (or use the proceeds of any mill levy for
repayment of Debt) on any single property developed for residential uses which exceeds forty
(40) years after the year of the initial imposition of such mill levy unless a majonty of the Board
of Directors of the District are residents of th`e1D e ult n a net p esent value sa�ngs as set forth
a part or all of the Debt and such refund g ��
in Section 11 - 56- 101 , C .R. S . ; et seq.
16 . Notices . All notices, demands, requests or other communications to be
sent by one party to the other hereunder or required by law shall be in writing and shall be
deemed to have been validly given or served by delivery of same in person to the address or by
courier delivery, via United Parcel Service or other nationally recognized overnight air courier
service, or by depositing same in the United States mail, postage prepaid, addressed as follows :
To the Districts : Solaris Metropolitan District No . 1
Solaris Metropolitan District No . 2
Solaris Metropolitan District No . 3
1805 Shea Center Drive, Suite 100
Highlands Ranch, CO 80129
Attn: William P . Ankele, Esq.
Phone: (303 ) 858- 1800
Fax : (303 ) 858- 1801
To the Town: Town of Vail
75 S . Frontage Road
Vail, CO 81657
Attn: Matt Mire, Town Attorney
Phone: (970) 479-2460
Fax : (970) 479-2157
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All notices, demands, requests or other communications shall be effective upon such
personal delivery or one ( 1 ) business day after being deposited with United Parcel Service or
other nationally recognized overnight air courier service or three (3 ) business days after deposit
in the United States mail . By giving the other party hereto at least ten ( 10) days written notice
thereof in accordance with the provisions hereof, each of the Parties shall have the right from
time to time to change its address .
16 . Amendment. This Agreement may be amended, modified, changed, or
terminated in whole or in part only by a written agreement duly authorized and executed by the
Parties hereto and without amendment to the Service Plan.
17 . Assignment. No Party hereto shall assign any of its rights nor delegate
any of its duties hereunder to any person or entity without having first obtained the prior written
consent of all other Parties, which consent will not be unreasonably withheld. Any purported
assignment or delegation in violation of the provisions hereof shall be void and ineffectual .
18 . Default/Remedies . In the event of a breach or default of this Agreement
by any Party, the non-defaulting Parties shall be entitled to exercise all remedies available at law
or in equity, specifically including suits for specific performance and/or monetary damages. In
the event of any proceeding to enforce the terms, covenants or conditions hereof, the prevailing
Party/Parties in such proceeding shall be entitled to obtain as part of its judgment or award its
reasonable attorneys' fees .
19 . Governing Law and Venue. This Ageement shall be governed and
construed under the laws of the State of Colorado .
20. Inurement. Each of the terms, covenants and conditions hereof shall be
binding upon and inure to the benefit of the Parties hereto and their respective successors and
assigns.
2 L Inte agr tion. This Agreement constitutes the entire agreement between the
Parties with respect to the matters addressed herein. All prior discussions and negotiations
regarding the subject matter hereof are merged herein.
22 . Parties Interested Herein. Nothing expressed or implied in this Agreement
is intended or shall be construed to confer upon, ar to give to , any person other than the Districts
and the Town any right, remedy, or claim under or by reason of this Agreement or any
covenants, terms, conditions, or provisions thereof, and all the covenants, terms, conditions, and
provisions in this Agreement by and on behalf of the Districts and the Town shall be for the sole
and exclusive benefit of the Districts and the Town.
23 . Severabilitv. If any covenant, term, condition, ar provision under this
Agreement shall, for any reason, be held to be invalid or unenforceable, the invalidity or
unenforceability of such covenant, term, condition, or provision shall not affect any other
provision contained herein, the intention being that such provisions are severable.
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24 . Counterparts . This Agreement may be executed in one or more
counterparts, each of which shall constitute an original and all of which shall constitute one and
the same document.
25 . Para�raph Headin�s . Paragraph headings are inserted for convenience of
reference only.
26 . Defined Terms . Capitalized terms used herein and not otherwise defined
shall have the meanings ascribed to them in the Service Plan.
SOLARIS METROPOLITAN DISTRICT NO . 1 Attest:
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By: By' ;
President S cre
SOLARIS METROPOLITAN DISTRICT NO . 2 Attest :
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By: By'
President Secretary
SOLARIS METROPOLITAN DISTRICT NO . 3 Attest:
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By: BY
President Secretary
TOWN OF VAIL, COLORADO Attest:
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By: __ By�
�a� `7ew „ 1�Iana9e� Its :
�'�W�N �0��'
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APPROVED AS TO FORM : �� ,�'' �;'
own Attorney , .� �� �
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