To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Michael J. Hyman, Town Attorney
Title
Valley View Metropolitan District No. 1 - Review of Proposed Bond Issuance [location: approximately 409-acre Canyons Far South development, east of Founders Parkway, south of Crowfoot Valley Road, north of Crimson Sky Drive and west of Castle Oaks Drive]
Body
________________________________________________________________________________
Executive Summary
Per section 11.02.110 of the Castle Rock Municipal Code, all metro districts within the Town must submit proposed financings of district debt to the Town Council for review and comment.
Background
Valley View Metropolitan District No. 1 (the “District”) has requested that the Town Council review and, if appropriate, comment upon the proposed issuance the following series of bonds:
• General Obligation Bonds, Series 2026A-1 - approximate principal amount of $12,660,000
• General Obligation Bonds, Series 2026A-2 - approximate principal amount of $7,239,567
• Subordinate Cash Flow Bonds, Series 2026B - approximate principal amount of $2,399,000
• Junior Subordinate Cash Flow Bonds, Series 2026C - approximate principal amount of $6,004,000
(collectively, the “Bonds”). The approximate total principal amount of the Bonds is $28,302,567, with an estimated interest rate ranging from 6.00 to 8.50%, and a 30-year term. The Bonds will allow the District to fund miscellaneous public improvements that are authorized by the District’s Service Plan.
The principal amount of the Bonds is within the District’s debt limit of $68,000,000, leaving the District with a remaining debt limit of $39,697,433. Likewise, the estimated interest rate and term of the Bonds are within the Service Plan limits of 18% and 40 years, respectively. Lastly, the District will not be exceeding its maximum debt mill levy of 60.00 mills, which levy is subject to future assessed valuation adjustments by the State.
Staff Recommendation
Based on the District’s submittal, Town Staff finds that the Bonds comply with the Service Plan and Section 11.02.110 of the Town Code. Town Staff recommends that the District be allowed to move forward with the issuance of the Bonds as proposed without further comment.
Proposed Motion
No motion is necessary for this item.
Attachments
Attachment A: Letter to Town of Castle Rock
Attachment B: Certificate Concerning District Financing