Subject:
Title
PUBLIC HEARING: A Resolution of the Board of Trustees of the Town of Erie Approving the Service Plan for Lafferty Canyon Metropolitan District
Body
Department: Administration
Presenter(s): Zachary P. White, Attorney for the Applicant
Malcolm Fleming, Town Administrator
Time Estimate: 30 minutes
only required for non-consent items
Staff Recommendation:
Recommendation
Staff recommends the Board approve the Service Plan with conditions to:
1. Require definition of and the terms of any developer advance, require the method of interest calculation as simple interest, and limit the maximum interest rate to the Prime Lending Rate plus 4% not to exceed 12%.
2. Specify in Section VI, sub B that the maximum voted interest rate be specified as the Prime Lending Rate plus 4%, not to exceed 12% as reported at the time of issuance.
3. Limit the maximum underwriting discount to 2.5%.
Based on the Board's approvals of other recent metro district service plans, the Board may have questions regarding sustainability, affordable housing, environmental issues or other matters that have a bearing on the financial aspects of the Service Plan. If so, the Board should ask the applicant to address such questions.
End
Summary and Background of Subject Matter:
This application was last heard by the Board of Trustees on September 28, 2021. At that time, the Board considered the matter and entertained a motion to approve the proposed Service Plan, but the motion died for lack of a second. On December 21, 2021, the applicant submitted a revised proposed Service Plan. The new proposed Service Plan has a lower Total Debt Issuance Limitation ($13,555,000 compared to $21,606,613 in the previous proposal), and a slightly higher total lot development cost ($32,888,043 compared to $30,371,607 in the previous proposal).
The applicant also provided this additional information:
All units will be market rate consisting of entry market product (paired units) a...
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