To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Michael J. Hyman, Town Attorney
Title
Resolution Approving the Amended and Restated Consolidated Service Plan for Promenade at Castle Rock Metropolitan District Nos. 1-3 and Authorizing the Execution of the Amended and Restated Master Intergovernmental Agreement By and Between the Town of Castle Rock and the Districts
Body
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Executive Summary
Promenade at Castle Rock Metropolitan District Nos. 1-3 (collectively, the “Districts”) are governed by the Consolidated Service Plan for Promenade at Castle Rock Metropolitan District Nos. 1-3 which was approved by the Town Council on January 7, 2014 (the “Original Service Plan”). Resolution 2021-__ (Attachment A) approves the Amended and Restated Consolidated Service Plan for Promenade at Castle Rock Metropolitan District Nos. 1-3. (the “Amended Service Plan”).
The Districts are seeking approval by the Town Council of the Amended Service Plan for the following purposes:
(1) Update the terms of the Original Service Plan so they correspond with the terms of the Second Amended and Restated Public Finance Agreement by and among Promenade at Castle Rock, LLC, the Town, and the Districts (the “PFA”)1;
(2) Supersede and replace the financing plan in the Original Service Plan, which financing plan includes updated development projects and supports the proposed refunding and issuance of District bonds;
(3) Increase the Districts’ Debt Limit from $28,800,000 to $32,000,000 (i.e., the net amount of District Bonds that the Districts shall be permitted to issue, without taking into account the amount of District Bonds being refunded) in order for the Districts to issue bonds to fund the construction of additional public improvements and to reimburse the developer for costs of public improvements advanced to the Districts; and
(4) Allow the Districts to proceed with a transaction to refund and restructure all of their currently outstanding debt in accordance with the terms of PFA.
1 Ordinance No. 2021-05 approving the PFA was introduced on first reading at the February 16, 2021, Town Council meeting and appears on tonight’s Town Council agenda for second reading and final approval.
Further details of the proposed debt refinancing plan are set forth in the February 18, 2021, letter from the Districts’ general counsel regarding the proposed financing (Attachment B), as supplemented and updated by Attachments C through F.
Service Plan Amendment Review Standard
The Special District Control Act, Article 1, Title 32, C.R.S. and Chapter 11.02 of the Castle Rock Municipal Code govern the Town Council’s consideration of the request for approval of the Amended Service Plan. Following a public hearing thereon, the Special District Act specifically authorizes the Council to approve the Amended Service Plan as submitted, to disapprove the Amended Service Plan, or to conditionally approve the Amended Service Plan. Notice of the public hearing was provided in accordance with the Special District Act (Attachment G).
As relevant to the Amendment, the Special District Act provides that the Council shall disapprove the Amendment unless it finds that Districts have, or will have, the financial ability to discharge the proposed debt on a reasonable basis. The financing plan set forth in the Amended Service Plan (Exhibit 1) is based on the current financial condition of the Districts and revised financial projections which evidence the ability of Districts retire all indebtedness proposed under the restructuring. The financing plan has been approved by staff and found to present reasonable assumptions and projections.
The Districts may appeal an adverse decision by the Town Council to the District Court.
Staff Recommendation
Staff recommends approval of the Amended Service Plan as presented.
Proposed Motion
“I move to approve Resolution No. 2021-__: A Resolution Approving the Amended and Restated Consolidated Service Plan for Promenade at Castle Rock Metropolitan District Nos. 1-3 and Authorizing the Execution of the Amended and Restated Master Intergovernmental Agreement by and between the Town of Castle Rock and the Districts.”
Attachments
Attachment A: Resolution (updated March 1, 2021)
Exhibit 1: Amended and Restated Consolidated Service Plan
Exhibit 2: Amended and Restated Master Intergovernmental Agreement
Attachment B: Letter dated February 18, 2021, from Districts’ General Counsel Regarding the Proposed Financing
Attachment C: Updated Summary of District Bond Financing Terms
Attachment D: Schedule of Remaining District Improvements
Attachment E: Updated District Financing Model
Attachment F: Certificate Concerning District Financing
Attachment G: Certificates Concerning Notices of Public Hearing on Amendment to Service Plan