Board of Trustees - Regular Meeting

Like to call to order the town of Frazier board of trustees meeting Wednesday, August 5th, 2026. That's 6 PM. Can I have a roll call please?

Adam quickly.

Peggy Smith, Julie white.

Louis Gregory.

Katie Soles.

And Brian Cerkvenic. Could I have a motion to approve the agenda, please?

So moved. Second.

Any further discussion? All in favor? Aye. Any opposed? Okay, motion passes. Could I have a motion to accept the consent agenda, which includes the minutes for July 2020, sorry, July 22nd, 2026, and Resolution 20260801, approving revocable license agreement with Rendezvous Community Association.

So moved. I'll second.

Further discussion? All in favor?

Aye.

Any opposed? Okay, motion carries. All right, we are moving on to open forum. This is for business not on the agenda. Anyone in the room that would like to approach the board to talk about a topic that is not on the agenda, feel free to approach the podium. Or if you're online, raise your hand. All right, seeing none, we'll move on to discussion and possible action regarding Resolution 2026-0805, accepting the resignation of a trustee and filling the vacancy.

Antoinette?

Antoinette?

Mayor, board and trustees, Antoinette McVeigh, town clerk. So tonight we're entertaining a resolution 2026-0805 to fill the vacancy from the resignation of Katie Fisher and the board. So Katie Fisher resigned on July 15th, 2026, and that was effective the same date that she resigned. And the statutes do allow the Board of Trustees to appoint somebody. Colorado Revised Statutes 3143031. Board of Trustees has the power by appointment to fill vacancies in the board or any other office. And the person so appointed shall hold this office until the next regular election or until his successor is elected. Our next regular election is November 3rd, 2026. The board also has the power to fill the vacancy in the board and any other elective office of the town by order and election to fill the vacancy until the next regular election or until the successor has been elected and has complied with the section CRS 344401. So this resolution officially accepts the resignation of Katie Fisher. And in your packet, we only received one application, which was Kenneth Jensen. He is here this evening. If you guys would like to ask him any questions before considering who you would like to appoint to the board this evening.

I guess I'm not going to sneeze. All right. All right. Well, great. I think it would be great to hear from Ken a little bit, if you want to tell about yourself in terms of yourself to the community.

Good evening. I'm excited to be on board, and I think I can bring a lot of experience. I grew up in a small town in Montana, so I'm used to the small town atmosphere and helping out communities and former business owner, former banker, kind of a finance guy. So I think I can be a good addition to you guys. Thank you. Great. You guys have questions?

Tell us about everyone who's listening, your current involvement within the Fraser Valley community.

So I am the vice chair in the Fraser River Housing Partnership, Fraser River Valley Housing Partnership. It's always a mouthful. Been with them since its inception and been working on obviously supporting St. Louis Landing, Neuse Village, you know, Habitat for Humanity development that's going to take place with Grandy. you know, very interested in making sure that we do have what I call attainable housing in this county. And we are currently undergoing a housing assessment for the whole county. And we're going to try to get more data on what is really needed in this county. And so I've been involved in that. I'm also involved in an impact fund with Graham Foundation, And I've enjoyed being involved in that. And then outside of that, just been currently retired, working on my house. I just finished a huge project, mitigate my whole yard, which is about an acre and a half. So I just finished that yesterday. So this is the time.

Congratulations.

That's great.

Okay, thank you.

You bet. Another question? No.

Thanks, Ken.

I'd like to make a motion to appoint Ken to the board.

Well, we have an official resolution on the table.

20-26-08-05, accepting. That was the resolution.

Yeah, so it both accepts the resignation of Katie Fisher, and then there's a blank that says the board appoints.

Okay, and filling the vacancy. with Ken Joseph. Second.

Any further discussion? All in favor?

Aye.

All right. Welcome, Ken. All right. Thank you. I think we're going to spear you in right now.

Ken, if you want to say something. I told him it was a plot. I told him it was a plot. I told him it was a plot.

Or official. Would you like to raise your hand or put your hand over your heart? And just repeat after me. I, Kenneth Jensen.

I, Kenneth Jensen.

Do solemnly affirm.

Do solemnly affirm.

That I will support the Constitution of the United States.

That I will support the Constitution of the United States.

And the State of Colorado.

And the State of Colorado.

The Fraser Town Code.

The Frazier Town code.

And faithfully perform the duties of the office.

And faithfully perform the duties of the office.

Of Frazier Town trustee upon which I am about to enter.

Of Frazier Town trustee upon which I am about to enter.

Thank you.

Welcome aboard.

Awesome.

Thank you. Salute.

Yeah, I think it's, I think it's Matt Ginsburg. No, it's just kind of a freaking out.

I'm sorry. Annie Ginsburg, could you please stop raising your hand and putting it down? Thank you.

It's probably a cat on the keyboard. Okay, moving on to Resolution 2026-0802, Approving Grandkids Learning Center Lease for St. Louis Landing Early Childhood Education Center. Sarah.

Uh, good evening board, uh, Sarah, town manager. So, before we jump into the lease, we do have grandkids with us to give just kind of an update on what's been going on with their organization. They've also put together their budget with their actuals and kind of their projected budget for the build out of St. Louis landing. So we're going to walk through that. The board's welcome to ask them any questions, and then we can go through the terms of the lease. If the board is comfortable with the lease as is, or there's kind of minor revisions, we can make those and approve them. If we need to bring the lease back after further discussion, we can do that as well. But I would like to invite Anya Kliss, who is the new executive director of Grandkids and her team, to go ahead and kind of let you know what's been going on with Grandkids.

All right.

Yeah.

Thanks. Yeah, come on.

And I'll just throw in as well before I get started that we also have Megan Ledeen with us this evening, who's been working with grandkids and has come to just kind of answer any questions she might be able to.

Hi, everybody. Thanks for having us here today. My name is Anya Kliss. I'm the executive director of Grand Kids Learning Center as of February this year. A little history about myself with the organization. I've been with Grand Kids since 2020, sort of as an assistant teacher, stepped into the site director role not too long after that, worked in that role for about five and a half years or so. And then am now the executive director and excited to be sharing where we're at within the organization and where we hope to go. Um, I won't read you our, our little one pager. It was in your, your packet. Hopefully you had a chance to, to review that. Um, but a little bit about where we are at right now, we operate out of three locations. Um, the red building, which you're familiar with, I'm sure you hear the kids running and screaming each and every time. Um, We operate out of a Wapiti Meadows complex building that has three classrooms. And then our most recent addition is our Granby location, which opened in February of 2024. Across the board, we currently have capacity for 96 licensed childcare spots. We are currently serving 64 local families. Our capacity can serve 16 infants, 16 toddlers, 19 older toddlers. We call them junior preschoolers. That's that two-year-old age group. And then 42 preschool-age children. Our board of directors, which I have two of them here with me today, Bethany Lashley, our treasurer, and Rebecca Rudell, our board president. Our board has really prioritized staff retention. Several years ago, that was a huge detriment to the organization. We were having to close classrooms, really struggling to stay afloat. At one point, we weren't sure if we were going to have to close a whole building. So the board realized that was going to be their ultimate priority, shifted the focus there to sustainability, and since then have kind of made it through each school year with an 85% staff retention rate, which in the early childhood field, that's pretty huge. I would say that retention rate is a little bit higher with those in leadership roles as well. And right now we're averaging at about 30 to 35 full-time employees. Right now we hold on Eastern Grand County 100% of community-based infant slots, 35% of our families qualify for income-based tuition assistance, but 51% of our families are receiving tuition discounts from state programs and then internal scholarships too. That's a little bit about where our organization is at. And we are hoping that we can move into St. Louis Landing to continue to serve the greater Grand County community, especially in the Fraser Winter Park, Tavernash area. We think that's going to be where childcare is currently really needed. That would not only double our license capacity in our Brazier Educational Campus, but it would also bring about 15 new teaching positions available in the community and give us opportunities for school-age summer programs, opportunities for afterschool care for local families. It really opens the door for grandkids.

That's great. Thank you.

Bethany, did you want to walk through some of the numbers?

So Bethany Lashley, treasurer. Been on the board for two years now, heading into three. We have worked a ton on our budget recently. So for those of you, it was about a year ago that saw what we were looking at, a lot of negative numbers, some questioning of grants and how we were presenting those revenues and those income streams. So if you looked at this packet, you may have been surprised to see our positive numbers that were coming up. And a big part of that was thanks to Anya and our staff as she came on board, going through our expenses, really tightening some things up for us, renegotiating some contracts with some of the members in the community. Great, great things that have happened, including a new roof on our red building. If you guys have seen that, that has been amazing. Roofing Company, right? Roofing Company donated that to us. And so our team has really been strong at reaching out more now and getting that community involvement, which has been great. The other part of that was going through and really looking at what our grants looked like over the last three years and trying to put that commitment to pay. So we were always very conservative before, worried about will that money really come in, being that it's a grant. And now we've really taken that focus of, yes, here's what we have gotten. Here's what's been committed to us. And then also realizing that that could fluctuate within the county over the next year and us being able to keep a better finger on where those pools of money are and shift if we need to. So we're starting at a base of 350,000 that we are willing as an organization to work on getting for grants. to help offset that tuition is that's coming in. And with that, we're looking at starting a positive cash flow. And we also think that's realistic. This is a lot of time and effort we've put into this, and we think that's great. So if you looked at our budget to actuals, you can see that starting to happen already and see that we're up at $250,000. a little more that we have already secured this year, which has been wonderful. So part of that's town of Fraser as well. So thank you guys. Going into our budget, so this is in your packet. So our projections for 2027, when we would enter St. Louis Landing up through 2032, you can see overall for our facilities, we have been able to get into a positive role with those. This includes our teachers being at a salary that we are comfortable with, that it's actually getting them to that livable wage. I know we have a teacher extension, but I don't remember that exact name that's coming in that will actually help us get there as well. But we are able to calculate those payroll and those benefits still coming in at about 85% of our total expenses. But our teachers will be where we want them. So again, if you remember our previous budgets, we had where we were at and also where we wanted to be. And there was a huge disconnect in getting our teachers where they wanted to be. And now we are there, which is great. Very exciting. I also did a breakout here for St. Louis Landing itself, because I know that was really important for you guys to see that impact of just that building on grandkids as a whole. Some of the numbers, like our tuition, are solid numbers that would be coming in. Some of them are a percentage-based impact. of income that's coming in. So some of our expenses, how we have them broken out is based on that income that St. Louis Landing would be bringing in versus the whole organization. So those were our assumptions there to try and get us to the correct number. You can see, obviously, 2027 and 2028 is a little bit lower, but that's as we're transitioning, as we're getting into the building. That accounts for us having a lease still over in Wapiti that we're then going to have to get out of. And we will do our best to minimize that cost once we know exactly when we're in that building. But all of that is accounted for and actually under this budget for St. Louis Landing. So you can see that effect. Scaling, as we scale up through the kids, you can see that we are actually doing better. I know that was another big question previously is as we scale up and get more kids, are we financially doing better or worse? And reflected in here, we are doing significantly better, which is great as well. Another assumption under there was the rent for the building, which I know this will come up with you guys. So that first three years, we did account for that $1,000 a year rent, but then I scaled it up to $24,000 a year starting in 2020. So we are looking at being able to accommodate more rent and looking at that expense and still doing well. All right, anything else? at the moment.

Yeah, hey, I was just curious, what do you what do you pay for rent currently?

Hold on, you might have to stop your head. If not, I can monthly pay $3,200.

And this is just what people that are actually just here in Fraser, right?

However, it did increase, or it will increase for August.

Is this set over at WAPV?

That is correct. Yeah. It averaged about $36,000 annually.

$36,000 annually.

And your expenses, I don't see a separate line item for rent. You just have it all bunched together under operating expenses?

um just for the summary i think that's how that's presented but we definitely have it broken out within our expenses and financials so if we need to do further breakdowns happy to yeah And I guess that's another point we haven't made too is financial transparency across all of this. We're working on getting reviewed statements, you know, for 2025 and being able to produce these for you as needed right out of our QuickBooks program. Like here's our actual, here's our budget and being able to give you guys that transparency that you need on an ongoing basis. And so whether that review is quarterly or, Annually, whatever it is that we decide within the lease and the perspective.

No, this is much better than last year and appreciate you filling in some of the blanks. We obviously want you to be successful. So do the numbers and making sure that you're financially viable, right?

Absolutely. Yay.

Dave Kuntz, And you can you can see the jump from 2029 to 2030. Dave Kuntz, In that operating expenses for the same understanding, specifically so yeah it's not broken out in this but obviously accounted for.

Dave Kuntz, One the other issue is around the build out so you're spending a lot of money in 2027 on building out the facility. Dave Kuntz, And then in 2028. There are no revenues coming. I assume you're going to still get grants and be able to supplement that?

Absolutely.

Okay.

And Lewis, they do, correct me if I misstate this, they do have their build out right now separated out from their larger budget. So if you scroll down to the last page, that's a budget specific to their build out.

Yeah, no, that's what I'm looking at. Okay, great. But it's a negative number. They have a gap there that you need to fill.

Yes. Yeah. And we'll be talking about that in a minute here.

Yeah.

Thank you.

Thanks.

So also in your packet is a staff briefing and then a draft lease that we've worked on with grandkids. And then a resolution if you wanted to move forward with approving that lease. As we previously talked about the way it's currently presented, it would be starting out at $1,000 per year. We've written it as a 15-year term, but there is the option to exit that lease early if need be. It is written such that the rent would not remain fixed and every three years could be revisited by the board and could be raised or decreased at the discretion of the board. Obviously, grandkids would have the opportunity to negotiate that and decide if they wanted to stay with the lease or not. We wanted to have some guardrails in there. not knowing what the future holds, but wanting some protections for grandkids. And so right now it is listed that that maximum rent rate would not exceed $24,000 per year. Both that starting lease and that maximum lease rate is something that the board can discuss. But those are the starting points that are included in the current draft. I looked at a number of leases by other communities and tried to build in some of the safeguards that they had when they had leases with early childhood education facilities. So there is some reporting requirements and just kind of ground rules around communication to make sure that town staff and the board or not micromanaging their operations and allowing them to do their daily operations, but that we are in the loop and making sure that they are keeping up with all of their licensing standards, quality care. If there is any incidences where the state would need to be involved, that they would have to notify us. So we'd have that heads up. It does require them to pay kind of their general utility cost, insurance costs, things like that. We'll talk in a minute here about that build out and if the board wants to support that through the new market tax credits and some of those funds that are coming in, but they are ultimately responsible for that build out and ongoing maintenance. I think those are a lot of kind of the key terms, but I'm happy to talk through any other aspects of the lease or any questions that the board might have.

Did you get the insurance requirements kind of from these other leases?

Yeah, we kind of started with the standard commercial lease. And then the pieces that I pulled from other town leases have more to do with the specifics of a child care center operating there. The other piece we talked about as well is if grandkids did want to allow somebody else to use that space for something outside of standard kind of grandkids operations, that they would request permission from the town for that. And we could look at that if that was anything where somebody was being charged to provide additional childcare services outside of grandkids daily operations.

So we would allow them to sublease the space?

They would have to request our permission.

So relative to the lease, basically, grandkids has a 60 day out of the lease at any time.

The way it is currently written, it is that both grandkids in the town may terminate the lease before expiration by providing the required notice. And so yeah, it is 60 days. But again, that is something that we could we could change if we wanted to.

What is our current out? They have to pay, what is it, $30,000, $20,000, $27,000? Are they stuck in their lease for another year?

15 years.

At what PD?

Yeah. Until the end of July of 2027.

So you're on the hook for $36,000 for next year?

Yeah, it's built into our budget.

Well, the hope is that they can get some early access once we have a temporary CO for that space and hopefully get in there roughly by the end of the year to start doing some of that grandkids build out and working on licensing requirements because that will take a while. The earliest we're anticipating them moving in to actually operate would be March. And so really it's the months of March through July or August that they'd have that overlap.

I mean, the only other question I have, and we talked about this before, is, you know, I don't think the town of Patriot could be subsidizing the bulk of childcare in the community or in the valley without other people paying their fair share. And I don't know how you apportion that. You know, Winter Park's kicking in $40,000, right? Granby, $8,000. Grand Lake, $6,000. But I don't know you know, we're providing space for $1,000 a year, which is a real, that's a lot. I mean, that's almost probably 40,000 there and we're kicking in another 30,000. Are we subsidizing childcare for the rest of the valley? You know, and I don't know how you discern that, but that would be the only other thing I would want us to think through is like, should we be charging these other, you know, municipalities or the county or subsidizing child care?

So I'm going to let Megan jump up because I see her jumping up. I was going to add this child care stipend program that Winter Park has worked with Megan to put together. Winter Park and the county are putting in larger amounts and we are putting in a smaller amount in part in recognition of the fact that we are contributing so much through that building and that lease. But I think that is a fair question.

Absolutely. Megan Ledeen, Director of the Grand Foundation. Thank you for letting me, I guess, give input, context. Multiple funding areas in child care right now, the 1A Community Priorities Fund, are Priority, every pun intended, last year and this year is child care. And so that is an eligible grant opportunity for grandkids to apply to as well. The first round fall of 2025, they received an $87,000 grant. And this last spring cycle, they received $45,110. Thank you for the chat. And that was for a new van because they don't have a van over at the Granby location. With that being said, the Grand County Child Care Strategic Investment Fund. That's a mouthful. That's going to be for teacher retention. So it's actually starting right now. I'm just waiting, you know, signature on the MOU from all the funding partners, but just waiting for that. And then we'll be looking at the second quarter. So we're going to go retroactively look at the second quarter of all the staff that has spent more than 60 percent of their time in the classroom and give a grant to grandkids and other child care entities that are non-profits only that money is going to be coming from the county town of winter uh county is a hundred thousand dollars town of winter park is a hundred thousand dollars grand foundations put in fifty thousand dollars and um you guys voted last month to put in twenty five thousand dollars so but with that being said as you alluded to your doing your share and then some. So there are other opportunities, along with all the block grants that the towns do provide, as well as grant foundation dollars that grandkids can apply to. And child care is one of those very myopic priorities, not only with the grant foundation, but with all the municipalities and the county. So there are other dollars that will be coming in to grandkids as an entity. And then I just want to add that they have done a tremendous job with their financials. You guys, I've My background is finance, and I can tell you all the things they've done is just amazing. And I really want you to know that.

Howdy, girls. Howdy, girls. I can see this. This is much better than what we saw before. But you are all very supportive of child care. At least I am. It's an essential priority for us. But again, I don't think we want to subsidize the county necessarily. And I don't know if you can break down Um, you know, where people live, the ones that you're, you know, that are in childcare now, where they're coming from are the bulk of them from Frazier or, you know, uh, County or where, I mean, what are we?

You know, I could not stand up here and give you those numbers. Honestly, I know I could look at grand beginnings and the data that they've put together and come back to you with that. They've been instrumental throughout all the processes of the funding mechanisms as well as with grandkids as well. I do know that people travel from all over to bring their kids to the open slots, that the waiting lists are quite large. And so there are kids or children, excuse me, I'm not supposed to call them kids, children from Grand Lake, Grandy that are attending grandkids as well. So I can come back to you with those numbers, but I would say that you know winter park and fraser and tabernash have a lot of children and the eec right now is just for winter park employees and so majority between the um red building i guess you call it almost called it the learning center and uh over at wapiti you know that's going to be holding a majority of a lot of the kids around here

It's a little bit akin to our discussion around the bus service. And I think we feel like everybody should pay their fair share. We don't want to be on the hook to subsidize.

Anyway. When you look at that build out and you look at the projected loss, $198,000, I think is what I saw. And that's where... there are other granting opportunities that other entities can kick in, right? To help with the build outs and those types of things. Or if there's other opportunities there, there's additional grant dollars that grandkids can apply for. So I think monies are gonna come from other avenues for other things to keep them sustainable. And over time, you know, whatever the town decides to do, it's a worthwhile investment. Not that you don't know this, I know you all know this, for your residents, for your employees and everything.

And I do think we need to also be cognizant that there's a lot of employees that are at this end of the valley that would love to live in Frayser but can't afford it. But they work here. They spend their money here. And so it's all part of the community.

I'll add as well, I know Granby Playdates is in a building that's owned by the town of Frayser. And I believe they pay a minuscule amount in rent.

I do believe they pay about $10 a year. I don't know if it changed for 2026, but I know that was 2025.

Yeah, and that's serving a much smaller number of kids than St. Louis Landing is. The Early Childhood Education Center at the resort is obviously subsidized heavily by the resort. Eternal Hills Preschool Program is subsidized by the church. So most of the buildings in the county, and I don't think this is uncommon, are receiving some level of subsidy from either the municipality or another entity.

The West Grand School District subsidizes the space for the West Grand Early Childhood Center as well as Kremling Preschool, too. They're located in their schools.

There are some freezers for winter parking that occupy, that their children are involved in the grandkids learning center space because there's no space for kids. There's no space for kids. So we also have people go the other way to get that child care.

I'm a little less concerned about the residency of the child and more concerned about the income and the subsidy of the parents. And it sounds like you guys have turned a corner on that where, and correct me if I'm wrong, but it used to be a fully subsidized program across the board and now it's income based or?

Are you talking tuition tuition yes yes that speak to that, but the tuition assistance program is run out of grand beginnings. And then it's based on enrollment I believe per location and then each entity looks at applications based on the spreadsheet formulas based on that and. Because some will apply or be eligible for up K dollars universal pre K dollars. Some will be eligible for CCAP dollars. It goes up to 500, a federal poverty level, 500%. Yeah, so.

Okay. That's great.

I do know that that's going to be a focus in the future for the Grand County Child Care Strategic Investment Fund.

It was a topic in there.

Yeah, yeah. We left it pretty ambiguous. Right now, we're just focusing on teacher retention, but know that tuition assistance. But again, Grand Beginnings has this program. So we would just be helping and supplementing. Yeah, that's a strategic plan.

I thought that was one of the four that you guys were going to leave to the side. But it sounded like you were almost implementing some things already.

It's going to be a need. And as you add child care spots, tuition assistance is only going to go up. But that's, again, community priorities fund and the other funding mechanisms will definitely be looked at that.

I also see a benefit of having that daycare and our buildings and our workforce housing and helping us fill those units. Because there'll be people that probably would love to live there where they can just walk their kids downstairs and then catch the bus to work or walk to work. And that's a big benefit. You've got to fill it up. You can start paying for it now.

I'll see if they will help us attract employees as well.

Yeah. Absolutely.

Hey, if Frasier ends up paying a little bit more for the first few years, so be it. It's kind of like when you go to an auction and they just do the paddle raise. We're the ones that said we'll drop a million bucks. Who else is going to join us? Maybe somebody else will follow.

Sarah, when did the 60-day notice before termination come into play? I mean, it just seems like not a long time frame for us to find a new tenant.

Yeah.

Yeah.

So I worked with Kent's office to put this lease together. Um, that said, I think the 60 days was really added in more as an out for the town, wanting the board to feel more comfortable signing on to a longer lease that, uh, you know, if for whatever reason, the leadership at grandkids was to change, we didn't feel like they were offering quality childcare, whatever it may be, that there would be some options. Yeah. But I agree, it's not very long. I think we could definitely change that and provide more notice to be required.

Get a tenant in there in six minutes. Right. And for them. It's a bit empty for, I mean, that's a big space, what, 8,000 square feet?

Yeah.

And there's already a ton of commercial real estate that's sitting empty. Right.

Yep. Well, so keep in mind, it's a thousand dollar lease. I don't know if they're paying monthly for that thousand dollars or not, but it doesn't really matter. I agree with Sarah. The 60 days is more for us. If something drastic occurred with your grandkids and we just said we we can't be part of this anymore, then we give them 60 days to move out.

And we find another child care provider to move in.

Yeah, well, you guys, that's crazy, though. Let's say six months on 60 days. And do 180 days.

Something, yeah.

And I doubt that we'll even use it, but to make it even the least bit realistic, 60 days is not realistic. If we did say, you're out of there, it's like, oh, yeah, right, okay. Well, you'll probably leave it as is.

They default. They go through three defaults and they don't pay their rent, which would be hard for them not to do. But there's a provision in there where we would give them 30 days at that point where they didn't pay and so then they would be out as quickly.

Can you bring the mic a little closer for me? You don't know this.

There's a provision in there how that all works out if we wanted to get them out. It's like a 30-day, you know, after some steps, there's a 30-day out.

Okay.

But I do agree. I think 180 days makes more sense from a lease perspective.

Okay. I mean, if we kick them out in 30 days, where are they going to go? I mean, they're not going to be able to find a spot for their operations. I think six months sounds more reasonable. I mean, I don't think we're going to want to kick them out, but, you know. Okay, 180 days.

Okay. Can I make a motion?

Sure.

I want to make a motion to approve Resolution 20260802, approving grandkids learning center lease with the change of notice for termination to be 180 days from 60 days.

I'll second.

Further discussion? All in favor? All right, motion passes.

Point that I wanted to make, really it wasn't financial, but we as a group several months ago talked about possibly naming the playground after Eileen Waldo. And I don't know if you were even part of that or even knew that we had that discussion, but it was kind of a concept of where's Waldo, which was her tagline when she ran for the board. So I thought I'd mention that. And if you guys, the mural festival's coming up and you might find some cute artists that does, where's Waldo?

Waldo's on top of the way.

That is a good idea. All right.

So I will say the next item up is related in part to a discussion around grandkids build out and some funding around that. So we will circle back to that.

Okay. So that is St. Louis Landing Financing Update and New Market Tax Credit Overview. Matt, NSB Clerk.

Matt, I don't see you online, but Monica, we've made you a co-host.

Hi, everyone. Can you see me and hear me okay?

You're a little quiet.

I'm a little quiet. Okay.

You can up your volume. Um, And while you're working on that, Monica, just to give a little bit of context. So new market tax credits have been part of the overall kind of financial capital stack for St. Louis Landing for a while now. We wanted to close on the bonds before diving full on into the complexities of both the new market tax credits and the middle income housing tax credits that we talked about at the last board meeting. There also is kind of less risk to investors as they come in kind of later. But I don't think we've actually really given an overview of what the new market tax credits are to the board and how they work. I find them mind-bogglingly complex and convoluted, so we're going to try not to get into too much of the weeds, but maybe that's just me. But Monica and her group have been lovely to work with, and we invited them to kind of come and try to give an overview of what they look like. And then, as I kind of referenced earlier, this money, as Monica will talk about, is specific to Building E. And so the money has to kind of go into Building E, and there is some opportunity to potentially use those funds towards help with the grandkids' build-out space. So Monica can walk through that. And then I wanted Matt to kind of share, again, just how this fits into that overall capital stack and what that looks like in terms of potential build-out dollars.

Okay. Can you all hear me better now?

Yes.

Okay. Please let me know if that changes. And thank you, Sarah, for that lovely introduction. I love new markets tax credit financing, and I am thrilled to share it with you all today, but it is complex. And Sarah is not wrong to recognize that. I live in this world every day. So I'm going to screen share the presentation, and then I'm going to go into presentation mode. Can everyone see that? Yes. Fantastic. And you are all now very tiny on my screen. And I really want to make this a conversation so that you all can get what you need out of this presentation. So please do not hesitate to interrupt me um you know i try to pay attention if those little like raise hand things go up but i really am not offended if you want to kind of break in i'll try to pause um and and make this a dialogue where you all can get the information that you're looking for so uh Today, real quickly, my goal is to introduce the New Markets Tax Credit Program, often abbreviated NMTC, how New Market Tax Credit Financing works, the opportunity that it represents for the building E in St. Louis Landing, the roles of the sponsor and the financing partners, kind of the key points around the structuring, and then a representative timeline. Okay. There is more detail in the appendix, but again, this is meant to be a high-level introduction. I am more than happy to geek out with anybody on the details of this financing structure. I think it is very cool and creative public-private partnership. At another time, if somebody is really interested in learning more, so please feel free to reach out to me. All right, shall we dive in? So New Market's tax credit program has been around since 2000. It's administered by a part of the U.S. Treasury's Community Development Financial Institution Fund. It is now a permanent part of the tax code, and it was created to stimulate investment in low-income communities and underserved communities, and does in fact prioritize what they term non-metro communities such as Fraser. A project, it is a census tract-based program, so the subsidy is available to projects that are located in qualified severely distressed census tracts. And you can see here in this map in the purple that your project is in fact in the purple census tract, which is the New Market Tax Credit level of severely distressed that draws the opportunity for the project. New Markets Tax Credit's been used by many organizations. I've been working in this. S.B. Clark Companies, maybe I should have introduced us first. We're consultants out of Denver, Colorado. We work nationally in our New Markets Tax Credit practice. I've been working in the firm now for about 12, no, closer to 15 years. And S.B. Clark, and the name of the firm is actually my dad, Steve Clark. He's mostly retired, walks the dog, hangs out with my mom. And we have the privilege of working with both New Markets Tax Credits, which is supporting high-impact commercial projects. You can also fund some housing, like we're suggesting doing in Building E. And then my twin sister on the other side of our firm works with low-income housing tax credits and middle-income housing tax credits. And you might have met her, Laura Clark, during the middle-income housing tax credit conversations. So that's our firm. These are a number of... organizations I've been honored to work with over my career here. And I do think you can find a lot of excitement in New Market Tax Credits. My suggestion is to think of it as a public-private partnership. It's the government's way of bringing private investment into high impact community development activities. And in this case, Building E, which includes both affordable housing for workforce development, as well as importantly, the daycare. And you do have to have a certain percentage of commercial activity. So the daycare portion or the early childhood education portion is an essential piece. And the idea behind the New Markets tax credit program is when there's a market failure, such as it's hard to do development in small rural communities or low income communities, the government offered a tax credit to incentivize private investors, in this case, a group called Capital One, Capital One Bank, you may know them from your credit card, who is going to bring cash or would bring cash to the St. Louis Landing Project, and the project doesn't have to pay them back because Capital One is going to collect their return in the form of a tax credit on their income taxes over a seven-year compliance period. So the private equity comes in, and they're paid back through the government subsidy of a tax credit, and you all benefit from that tax credit equity. So the opportunity for building E is to leverage the costs of the new market tax credit financing. So new markets tax credits, I think of it as a funnel. You kind of leverage the costs through the public-private partnership, and that creates, if you will, the matching grant that is the subsidy of the new market tax credit. And we call it the net benefit because it is the net of all the fees and costs associated with that public-private partnership. The net benefit that's built into the project that you don't have to pay back because the tax credit pays the investor back is approximately $3 million. And that's an approximate number because until we get to closing, there's fees and legal fees and other things that move slightly. But at this point, based on being able to have attracted the subsidy, from two groups, Colorado Growth and Revitalization Fund, which is a part of CHAFA, which is Colorado Housing and Finance Authority. So their new markets tax credit entity is a group called Colorado Growth and Revitalization Fund. And they've promised to bring a portion of subsidy. And then another group, which is Enterprise Community Development. They go by ESIC or E-S-I-C, which stands for Enterprise Social Impact Fund. corporation, but Enterprise, you may have heard of them. They're also very active in the affordable housing space. So two groups that are groups that have been in new markets tax credit financing for a long time, and they're bringing the right to the subsidy. So we call that new market tax credit allocation. That's the authority from the US government that these groups won, and they've decided to bring that portion of the subsidy to this project. So you have an opportunity to leverage the building E costs and generate this net benefit. It's important, I think, to call out that it's a complicated financing structure because of the public-private partnership and because there's already a lot of subsidy and support. You all were just talking about the support that you're bringing to the Early Childhood Education Center. We have worked very closely. We've tried to work with Sarah and the legal teams that are involved and, of course, Matt as developer. to really think through how do we structure this in a way so that all subsidies play well in the sandbox together. And one of the ways that does that cleanly is that although Building E would be financed with the New Market's tax credit financing, There would be two condo units, if you will, that make up that, and it's easy to have that be confusing because there's all these units of housing. We're not talking about the individual housing units. We're talking about a residential condo, so the three floors of the building that are residential focused and a commercial condo, the ground floor that's going to have the early childhood education component. And those will really be operated and you'll kind of look through the layer of leases that make the public-private partnership work by having Fraser Housing Authority, of course, operate the residential portion of the project. That's what they're good at. That's what they've been established to help do at St. Louis Landing. And then, of course, the town of Fraser and your grants that you've gotten from DOLA and to try to make the early childhood education an opportunity. That piece of it really kind of looks through to you. So any questions there on just this concept of two parts of one full building? Okay. So now we're going to smush that concept together into the layers of the financing partners that make the public-private partnership work. And as I mentioned, we have to leverage the costs of new market tax credit financing, the costs of building E through the structure to generate the benefit. So there's key financing partner roles. So one I've already talked about, it's the investor, the new markets tax credit investor. The New Market's tax credit investor in this case is Capital One. They're going to bring cash to closing and then they will collect their return from the U.S. Treasury in the form of a tax credit. The right to the tax credit, the authority that was parsed out in a competitive competition is coming from the community development entities, another technical term in the program. And in this case, as we've talked about, the community development entities that are bringing the right to the tax credit that Capital One will get to in essence, buy by bringing their cash in exchange for the tax credit. The right to that tax credit is coming from Colorado Growth and Revitalization Fund and Enterprise. And together, CGRF and Enterprise are allowing you to maximize the tax credit benefit In order to make this work, New Markets Tax Credits was originally a low interest loan program. And so smart lawyers back in 2007, 2006, 2007 figured out how to stack the program on top of itself and turn it into an equity or a grant program. And so to make that happen, we set up a single purpose real estate leasing entity, and that entity is structured to be in compliance with the New Markets Tax Credit Program. And in this case, that entity is known as a QALICB, a Qualified Active Low Income Community Business. down here on the bottom of the screen. It's another technical term in the New Markets Tax Credit Program for an entity eligible to receive New Markets proceeds. This is going to be an entity that is going to be a support corporation, probably a Fraser Housing Authority. We might be able to make it a support corporation of the town. There's some different structuring considerations there. But in general, for you all to think about it, it really is A 501c3 nonprofit real estate leasing company, and it is going to own Building E for the seven-year compliance period and lease it back to Fraser Housing Authority, who is going to sublease it to you to operate their early childhood education. You're actually going to sublease that on to grandkids. And then Bridger Housing Authority is going to operate the housing piece. So there's a layer of leases to make this work, but that allows two really helpful things. It allows the New Markets Tax Credit Program to... the compliance for the New Markets Program to kind of be locked in place. Over the 25 year history of the New Markets Program, there's no situation in which the tax credit has ever had a recapture event. And that's because it's really structured to succeed. You kind of structure the compliance in on itself. And so that one of the pieces to that is this single purpose entity that kind of receives the New Markets benefit and then passes it through to the project. And then, of course, we have the project sponsor, as we would call it in New Markets parlance, and that is going to be Fraser Housing Authority and the Town of Fraser. You guys are going to leverage the costs that you've brought together for the St. Louis landing project. It's going to funnel through the New Market Tax Credit public-private partnership and generate the benefit where you're going to operate it like we talked about on the slide previously.

I have a question. Yeah. So you're talking about leases. So this corporation is going to lease it to the Fraser Housing Authority and then lease it to Fraser So what are the, is there a termination? You said for seven years, is there a clause where they could terminate the lease during that seven year period? And who is the corporation?

I know, but who creates the 501c3? This way. So is that the town that creates the 501c3?

It can be, it can be the town or, but I think we were thinking it would be technically a support corporation of Fraser Housing Authority. And that just really helps the flow of funds through the public-private partnership. And then as far as lease termination, there is flexibility. It's like any commercial lease, but you are incentivized to keep those leases in place because of the good work that's coming out of the project and also because it allows the project to stay in compliance. It kind of keeps the financing structure in place. So we would recommend keeping those lease agreements in place. At the end of the seven-year compliance period through a put-call option, The investor exits the structure and they put the ownership of the financing structure to Fraser Housing Authority. And so then Fraser Housing Authority holds all the membership rights of all the parts of the complicated public-private partnership. And so you can kind of collapse the structure. And at that point, the leases are almost always terminated. And then any of your kind of subleases with grandkids or anything would, of course, is kind of outside of that collapsing of the public private partnership at the end of the seven year period when the investor is collecting their return.

So, I mean, I'm not sure you answered my question. Is there a risk in this corporation or this entity terminating the lease during that seven year period?

Well, they're the landlord, so they own it. And you're the tenant. Fraser Housing Authority is the tenant. So I don't know if I'm understanding your question.

They're leasing it to us, right? Yes.

I think the concern, Monica, is could the town lose the building?

Well, lose the lease. And I guess eventually.

If there's this other entity that's being entered in with ownership. Yeah.

So the, the entity with the ownership, um, is so, um, okay. So, so there's a layer of leases. And, um, so the, what we would call the fee interest in the residential condo. So the, the, the ownership of the residential condo resides at Fraser housing authority and the, um, B interest or ownership of the commercial condo or the early childhood education condo resides at town of Frazier. And then you all, similar to a ground lease, are leasing those units to this special purpose entity. And they are, this special purpose entity, the Qualified Active Low Income Community Business, is a support corporation nonprofit whose sole mission is to support Fraser Housing Authority. And you all get to, with the Fraser Housing Authority, get to determine the board members. So for tax purposes, it needs to be different. From the board of Fraser Housing Authority by having at least a majority of board members be independent, but they can be friendly. So I don't know enough about the structure of the Fraser Housing Authority board. and the town of Fraser board. But for example, if there was a town of Fraser board member who is not on the Fraser Housing Authority board, that person could be one of the independent board members. And typically, the qualified active low-income community businesses have... three-person board members. So you would have one that kind of overlaps with Frayser Housing Authority, and then you would have two independents, meaning not currently employed by or not currently on the board of Frayser Housing Authority. And that generates the separation for federal tax purposes. But it's a friendly board that you all have elected who is on that board. And their full mission is to support Fraser Housing Authority. So they're wholly aligned. It is merely a pass-through entity that makes the financing work. And it is leasing the fee interest from the two condos. And then it's leasing it right back to Fraser Housing Authority to operate the housing and right back to town of Fraser to lease it to grandkids. So It is true that we're kind of sandwiching it in a layer of leases, but I think it's a very low risk that those leases would be ended because they're wholly mission aligned and only in place as a pass-through to make the subsidy an opportunity. Does that help?

It helps. I do have a question. We are the Fraser Housing Authority, the Fraser Town Board. So what you're suggesting is we would have actually three appointees and no board members. on that panel or that committee.

Well, you could have one overlap, typically. So there's a couple of ways to structure it. And the New Markets Tax Credit Council, who's working with you, we've worked with him for years, and he could help describe the options to help you all get comfortable. One option would be a three-person board where one person could be one of you all sitting here, and then two would be independent but identified by you. The other is to do a five-person board. And in that case, three could be one of you all, and two would have to be independent. But then you have to write into that structure a requirement that the two independent are always present in the case that any... any actions are taken that have meaningful impact on the financing. So there's just some security measures to make sure the independent board members in that approach are available. And both work and are commonly used. So we definitely want to structure in a way that's going to make you all as comfortable as possible. This is sincerely a tool to make the new markets tax credit financing structure work.

And there's only restrictions in place on the number of trustees that could be on that committee. And I'm asking because you're on the Fraser Valley Housing Partnership. And I wanted to make sure that's not a conflict. We have a new volunteer.

He loves his paycheck.

Just making sure there's no other conflicts. It is just our board.

Yeah, and I think we can definitely try to work in the structure.

Whether or not it's you. Who appoints those other two members? The board?

The board does.

Okay. And who owns this 501c3 corporation? That's his piece.

So it's a brand new nonprofit corporation, but it is what we would call a support corporation in that its whole mission is to support the activities of Fraser Housing Authority.

Does the town have to set up that 501c3?

Yes. Yep.

That Frazier establishes the 501c3. Okay.

Well, it's typically a non-member 501c3 entity that is a support corporation that is wholly controlled by its board that you all would select. We just need to differentiate it from Frazier Housing Authority for federal tax purposes. So that's the reason. And a quality under the New Market Tax Credit Code cannot be a government. So we have to make it a 501c3. And so Denver Housing Authority, for example, used this structure and they created a support corporation that is a nonprofit in support of Denver Housing Authority. And that's how they did it. So that's the model we're using here. Sorry, Sarah, go ahead. Who asked the question?

Well, and Monica, as part of this process of putting together the new market tax credits, I believe we would work with you and the legal counsel to put this 501c3 together, correct? Yeah.

Absolutely. They do it all the time. They have a lot of experience in that. And they're very good at either using form, you know, articles and bylaws that you all prefer, or they can bring very simplified ones that are used regularly in new markets financing. So yes, absolutely. You'll get a chance to review all of this and pass resolutions before the new markets tax credit financing could close. Those closing resolutions are an essential step in the approval process to make this financing work.

So Monica, so this structure is actually sheltering us from risk.

That's, yes, yes, yes. And that's one of the reasons most of the nonprofits that we work with use this structure is exactly for that. The single purpose entity is literally structured to remain in compliance for the seven years and therefore gives you the most flexibility in your operations because it's the tenant, if you will, the master tenant, which is really the lease back to yourself, that's the operator. And so it allows you to assure compliance as well as have most flexibility in operations. That's, I think, why it's a popular structure.

Yeah, because the letter from Capital One to Sarah does have clauses in it that basically say that we are at risk as an entity for a recapture or loss if it all breaks down.

That's right. And in the 25-year history, I am unaware of any new market still that's ever had a recapture event because of these structures. It's one of the most secure tax credit for structures. I mean, we work with a lot of tax credits, historic tax credits, LIHTC, low-income housing tax credits. There's risks with tax credit programs. This one is extremely low risk because of this structure. That's exactly right.

So, yeah, back to my original question, it's not no risk. There is some slight risk, potentially. Something can happen, but it's a low risk.

That's right.

So the things, oh, sorry, go ahead.

I was going to say, maybe it'd be helpful if you could talk through, if we were to be your first recapture, what would that look like?

Absolutely. Let me first say what you would have to do to be that example. So one thing you'd have to do is not pay the new markets, the new markets tax credits funnels into the structure looking and feeling like low interest loans. There's an interest payment that you make kind of at the bottom of that structure. And it actually... comes back to you as interest income on the top. It's kind of going in a circle. So one of the things you could do is not pay your lease and therefore not pay the interest. But you were not incentivized to make that mistake because that money comes back to you. So that is one of the few things. The other thing you could do is you could become one of the non-qualified businesses And there's kind of a list of what we call the quote unquote sin businesses, a massage parlor. You can't become you can't sell alcohol for off premise consumption, a golf course. There's a few, you know, and I can get you that list. And so those are really the things that could trigger new market tax credit recapture. So if you were to, there's a services test, but that's when in this structure, that is, they use instead the property, as long as the property is owned by this entity, or in this case, long-term leased and leased back to you, then you don't need that services test. So those are the things you could do to trigger recapture, but Let's say for some unforeseen reason, in seven years, we accidentally trigger recapture by bringing one of the sin businesses in as a tenant. In that case, the U.S. Treasury would force Capital One to pay the taxes that it had received the credit for. And then Capital One is going to turn around and ask you to pay them back. So that subsidy that they're bringing to your project, you would have to pay back. And then all the treasury costs and all the legal fees and any of the tax filing costs that are associated with the years of that tax credit that then are now out of compliance. would have to be repaid. So that's the meltdown scenario. Again, no history of that in the New Markets program to date, but that is what would happen is that Capital One would have to pay the tax credit back to the U.S. government and they would turn to you to make them whole.

But if we keep the daycare in there for seven years, it's a non-issue.

Exactly.

And that is also why we have the random list of sin businesses prohibited and granted lease. That was specifically put in there for the request of the New Market Tax Credit. We didn't otherwise expect them to start tattooing people tomorrow in their classrooms. Monica, one question, and I apologize. It's been a while since you went through that other fancy chart with me, but do I remember correctly? Did we land on that? The town of Frazier was going to be leasing to the Qualic B as one of those layers of leases so that the town of Frazier retained ownership per our grant requirements. Yeah.

That's correct. For the ECEC condo, the ground floor condo. That's correct. And then Fraser Housing Authority similarly retains ownership of the housing portion and then leases it into the structure and then it's leased back to you. That's correct. So just a few more points here, and I want to make sure we can all keep moving forward. Again, I love this stuff. So if anybody wants to set up another meeting, please do not hesitate to reach out to me. I'm more than happy to dig into it. Some key points we want you all to be aware of. In this structure, to leverage building e-costs through the structure into the public-private partnership, your money enters in the form of a loan. That's so that Capital One can own the right to the tax credit. And it allows that kind of interest payment to go in a circle and come back to you. So we call that the leverage loan. And so that is going to fund the new markets financing and generate the tax credit opportunity. So you're going to bring about two thirds of the money to the table and Capital One is going to bring about a third and it's going to funnel through and it's going to build the project and that's the purpose for the tax credit opportunity that leverage loan is going to be um made through really the costs you've already spent that have helped build Building E. So Sarah, to your point, some of the grants that you've already received. And then Proposition 123 Equity is kind of rounding out the capital stack. So we're gonna leverage those costs through the structure. And then the new markets benefit comes in all up front, all on the day of closing. So some tax credit programs pay in at milestones of construction. New markets tax credits does not. It pays in all up front, all on the day of closing, comes in as cash, flows through the public-private partnership, and that cash comes into a disbursement account that you use to complete the building. So New Markets is going to look and feel like low interest loans for the seven-year compliance period, but it is net neutral. You pay that interest. It comes back to you at the top. And at the end of the seven-year compliance period, we're going to put the ownership of that structure and collapse it in the form of debt forgiveness. So we sometimes refer to those as kind of a fake debt, if you will, in the new market structure. And I know I'm zooming over a lot of ideas that are very complex there.

Monica, can I interject for one second? Yeah. Hi, board, Matt Ginsberg, Mountain Affordable Housing Development. That's no new capital structure. required by the town. All that money is already in the structure. We're just repurposing it as a leveraged loan.

Thank you, Matt. Yep. Very good point.

Starting to learn after three years what might concern you.

That's exactly correct. So the benefit will create a savings. It's really creating a savings in the building of Building E. And then at the end of the construction period for St. Louis Landing, it's really a savings of bond proceeds that are not going to be used. And that allows more money to come back to the town on their subordinate loan. So there's always this complicated question of when is the net benefit achieved? It is achieved upfront at closing. It is going to get invested into the building of Building E. New Markets wants to feel like it's coming into the project that's having community impact. And then that's going to create a savings to you all that will really be understood at the time that the full project is complete. And there is a savings on the bond proceeds that are not drawn for Building E. Okay, again, lots here, happy to dig in more. This is a high level representative timeline. I know there's some different discussions in here. Our goal is to try to take advantage of the new markets financing as soon as possible. It is a very competitive subsidy. So to have Enterprise and Colorado Growth and Revitalization Fund bringing the subsidy to you is a great opportunity. Ideally, we would stay on track to leverage this financing opportunity here yet this calendar year. And the reason for that is some of the costs that we're leveraging to maximize the New Markets tax credit benefit are costs that, of course, have been in process and spent in the building that's in process at Building E. And so New Markets allows you to leverage costs as long as they're within 24 months of look back from the day of closing. So we want to We do want to close this calendar year in order to have enough costs that are in compliance to be able to leverage the opportunity. So here, of course, and soon we as it sounds like we're attached to your board documents, there are some term sheets and investor. investor LOI from Capital One. There's also an adjoiner for the legal counsel that we talked about, a gentleman named Kevin Savory at KCD Legal, who would be representing you all in the New Markets tax credit financing. He's excellent to work with. We've worked with him for a long time. So there's an adjoiner to allow him to be representing you all as a part of his legal role. And then as those financing partners and that comes together, ideally we would kick off the new markets financing. Kickoff is kind of a technical term for when all the financing parties come together and we start to review the closing documents and the due diligence that it's usually about three months from kickoff to get to financial closing. In that period, as was mentioned, KCD Legal, our firm, as your consultants, would work with you to help put together and structure the new entity that would be created to make the financing work. You would identify the board members that you want for that entity. And of course, before we close, you all would have to approve the closing resolutions that authorize that financing. The kickoff starts the process, but there is formal approval needed to make the financing possible. And that newly formed board also has to pass closing resolutions to allow the financing to close. We anticipate those to be somewhere in October with a financing in November, definitely trying to close before year end. And the sooner the better to maximize that benefit with the costs included. So please reach out to me with any questions. There is a more complicated diagram at the end of this presentation. If you have questions on that or if there's more discussion needed, I'm more than happy to answer questions or schedule another time.

I was going to say, she didn't show you the chart that hurts my brain.

I can.

You explain it very nicely, Monica. Thank you.

Thank you. Yeah, it does.

There is a method to the madness, but it is complicated. Yes.

So there are a number of documents, some of which are included here that are going to be coming to the board. So if there are any questions at this time about some of those documents, if you had the opportunity to review them. But I believe, correct me if I misstate this, we are waiting for Prop 123 for CHFA to kind of give the final sign off. They know this is coming, but they need to approve this before we move forward. And so at that point, we will be bringing those documents for board approval, but wanted to not have to try to explain everything that Monica just explained when those documents are brought forward. Okay.

We've got kind of a tight timeline. We're waiting on chat.

I think we may, we may be bringing things a little bit before we have sort of final approval because, you know, they give you a pretty firm view about where they're at. And it also helps that, that the one a half of the new markets funding, the, the, the CDs that bring the credit is Chaffa also. And so they should probably, hopefully, If they can hear us, we'll be working behind the scenes to make it move smoothly.

I would be interested in seeing the list of items that would trigger recapture of the tax credits. I mean, I'm just thinking, I have no idea. You mentioned a few, right? But what if there was some nefarious activity Dave Kuntz, issue criminal something happened with the daycare with that trigger recapture I mean would that. Dave Kuntz, You know what, what are the risks there in terms of recapturing those tax credits that makes sense.

Great question. Just at a high level, I'm more than happy. We have some presentations that are specific to the compliance. The daycare is a tenant, and so their activities really cannot trigger. It's really actions of the qualified active low-income community business entity that are going to trigger the recapture situation. So it is true you can lease to a non-qualified business. I suppose they could ignore the... businesses, the non-qualified businesses that are a part of their lease, as Sarah mentioned, that were already put in. But if that happens, then there's a cure period. You would be able to replace them with a qualified tenant. And so that should not trigger recapture if taken care of. There's a lot of cures built in to make sure the solves are... worked out. But I'd be more than happy to put together kind of a summary presentation of what triggers recapture.

I think that'd be helpful. How long would we have to get rid of a tenant? Would it be 60 days or six months?

Well, we just had to change it to 180 days. Yeah, we did.

But we're going to keep the daycare.

They want a shorter period of time.

Or we tell them to close down whatever operation they have. It's not allowed. Yeah, I think we're good.

Yeah, typically the new markets compliance period or the new markets compliance certificate is executed biannually. So you would do it twice a year. So you'd have a six month period where you're reporting on any of the compliance. Now, how that ties to the actual compliance. period that would then trigger recapture. I think you probably have longer for that, but I think that the community development entities who manage the compliance, they have you fill out the compliance certificate on a biannual cadence so that they have time to work with you for any cures in a period that would trigger a concern, which might be annually that they report to the treasury.

Okay. Thank you.

Yeah. Good questions.

Okay. No such thing as free money.

So Matt, do you want to pull up or I can pull up your sources and uses and just kind of show how this fits into that overall capital sources and uses stack?

I can pull it up.

All right.

That good for everybody? Cool. Good evening, board. Matt Ginsburg, non-affordable housing development again. I'm going to walk through the sources and uses page, which we've looked at for three years. If you have questions, let me know about any particular line item, but I'm going to review it holistically with a focus on the effects of the new market tax credit. What's on this page is the final underwriting sources and uses that was approved and in the in the bond documents and in the Prop 123 documents, et cetera, and their underwriting materials. So all the final numbers from the bond offering. Over time, the cost of the project, of course, go up because that's the only direction costs really would go. And a portion of the $5.335 or $5.4 million of bridge loan, the first interim bridge loan that you all put in, was going to get consumed and probably not fully paid back by the MyTech funding, which is something that's been out here for quite a while, but I want to make sure that it's clear because it's relevant to why make the effort to do the new market tax credit. So this is the final source of news is if you don't do anything about the new market tax credit and we come in like right at budget, spend the contingency, et cetera, then there'll be about $2.9 million of outstanding first interim loan obligation. Remember at closing, we paid back all of the $5.3 million of second interim loan obligation. So that's back. But a portion of that first interim loan obligation would be outstanding at the end. You would get that back over time through the cash flows of the project. Questions? Okay.

We have money left over.

Yeah, here we go. So if we add to the left-hand side, $3 million, which is a net amount. So there's some costs to doing the issuance. And I think we think that $3 million is a fairly conservative amount. I missed the first couple of minutes of Monica's presentation. So hopefully she told you the same thing. Then all of the initial $5.4 million will come back, assuming that the budget is observed and performed upon. And you'll have an excess $70,000 or just about $71,000. Which I think might be 79. Maybe I did my math wrong on there. That you can use that for, you sort of need to use that if it's coming directly from the New Markets Tax Credit to invest in the Grand Kids Learning Center, which is isn't specifically for grandkids in this case, it's just the childhood education center, which could be, you know, internal build out or playground structures, things like that, the various different costs to, to fully outfit the, the space as, as is necessary for a particular childcare operator. So sort of the, the, The other end of the spectrum from not doing it is doing it and not increasing the budget at all for the build-out. And you end up with all of your first interim loan back and a little bit extra that would be allocated towards some portion of build-out costs. As I understand it, grandkids put forth a budget to you all of something like $600,000. But don't quote me on that because I haven't seen it. I could be wrong about that. Questions?

On this sheet, on uses, it doesn't mention on this particular sheet build out at all or any costs going towards the grandkids.

Yes. Correct. I'm just showing you that you have excess. I haven't done anything to the right-hand side. That's why there's a third sheet. Okay, great.

Yeah, I see that.

The build-out, I mean, the building e-cost is in the vertical build-out, and that includes a good amount of the internals, just maybe not the more highly custom stuff like some appliances and... Other special installations that are that are specifically for how how grandkids would like it set up. It's, it is pretty well set up how grandkids would like it set up is not 100% set up how grandkids like it set up so Third scenario. Um, Now, Trusted Souls, we add $600,000, which is, like I said, the high-level budget number that I heard floated, to the right-hand side. We still bring in the $3 million on the left-hand side. You end up with almost all of your first interim loan of 5.4 back. You get 4.8, almost $4.9 million back. And that, again, is assuming that we deliver the project exactly on budget, and expend all the contingency, et cetera. Something like this would be my recommendation, if I'm supposed to give a recommendation. But I think it's up to the board what they want to do. It's up to, I think, a conversation with grandkids about how building out will assist with the goals here. I think, of course, the faster they can get – students into the seats, the more adults who work in the town and pay taxes and generate sales tax from sales to visitors can be there. So it's probably an altruistic upward spiral by making sure you can fill out the seats there sooner.

Uh-huh. Yep. Yeah.

It's the question of grandkids. Could you fill all the seats if we did this? That fast, you know, getting teachers, everything like that.

It's going to need to take a few years. Someone needs to use a microphone to answer your question.

Yeah. Do you think you could find teachers?

Do you want to pop up to the microphone? Yeah, thanks. Thank you. No.

Sorry, Katie. Yes, I think that we could find teachers since our board of directors raised our bottom line pay about a month ago. We have seen a substantial increase in applicants, and I would expect that that would increase once the stipend program is able to be advertised as well.

Okay.

And Grandkids' current budget for their build out that they provided here is a bit less than that $600,000. It looks like it's $418,545. So as Matt was explaining, if we help them either with all of that or the difference between what they believe they have money to put towards it and that amount, The town would potentially have some of its balance of that loan paid back through time over cash flows versus right at closing. The other piece of it, though, and again, correct me if I misstate this, Matt. If not all of that contingency is used for the project, then we'd have that going back to the town as well to pay back the rest of that loan.

Yeah, there's still opportunity to bring it all home. But I don't want to, I'm not changing the sources and uses yet. Let's finish the building.

I was going to ask about the contingencies. And that's just kind of a fudge factor just in case there's call saver runs. What about reserve accounts?

The reserve accounts are specifically for the bonds. One, they're about three million and then two and a quarter. And one is to pay interest during the construction period. And that just gets consumed. Like you raise the money for the bondholders, you write checks back to the bondholders.

Is there any money left over from that, too?

No, I that that like. Bond cash flows are very specific. And also, it's very easy to predict what the interest service will be during that period of time because you know what you raised, you know the amount of time, and you know your revenue is zero. So that will probably be consumed almost to the dollar. And then the other $3 million-ish, I think it's $2.9 something, is a long-term reserve account. And that's part of the security package that the bond holders require. That will, I guess, good point, Lewis. That will come back at the end either to amortized bonds or to you all. That'll come back probably after you've already gotten that $529,000, in this case, out of the project in cash flows.

Okay, well, that's good. And then the water, sewer, tap fees, does that come to the town and

building permit fees is that paid directly to the town no to our probably part of the waived fees on the left yeah the the building permit fees and the way fees are were were um they did they you either i don't remember if we took cash in and cash out or or or if we just didn't didn't move the cash around there that's a wash um that's the same as building permits

I believe the building permit were waived, if I'm remembering correctly, the water and sewer tap fees and the fire and school fees. We are paying those into the appropriate accounts, but we have grant money that's covering most of that. Right.

Because it should be. And did that get paid to the town? Well, water and sewer tap fees will get paid to the town.

They'll get paid to those enterprise funds, but again, we have grant dollars. We have to pay our match portion, but the rest of that is being paid with grant dollars.

Great. Good work. Okay.

So if the direction of the board is that we would like to help cover some of those build-out expenses with this new market tax credit money, that is something that would come back to the board ultimately for final approval as we're working through this new market tax credit process. I know for grandkids, the sooner they kind of have information to work with, that helps them plan accordingly so that they can make sure they are set up to do their build-out.

Well, we need to make sure we're getting this money first of all, right?

Yeah, and I think we feel pretty confident that I can let Monica speak to that as well and her history with this. But we should be able to close on that money. And anything we offered would be contingent on closing on that money.

So can you clarify the order that this would go in? I'm thinking about our bridge loan. And if it gets paid back or partially paid back, but I think we told the community that this was not, we were not paying for this, that we would get that money back. So, I mean, I'm kind of in support of helping the community. childhood education but i i think we have to be up front with our community and and pay ourselves back first and then if there's something left over we can consider but these are things we said in public uh uh by performance well and one thing to consider with these this three million dollars is we wouldn't be eligible if we weren't supporting the state care to begin with so if we were to six you know sacrifice 500 000 now and get paid back over time

It's just something to consider.

I just want to make sure it's clear to our constituents and our community that, you know, that our arrangements are, we're sticking to our word. I mean, we loaned that money and it was said over and over and we had people in the audience saying, hey, is this going to be Frazier paying for this? And we said no multiple times. I just think we need to be cognizant of that. Okay.

Okay, but we don't need to decide that right now.

No action.

No, we're not looking for any action. Yeah, this is informational. Okay, that's a lot of information.

That's a lot of information. But I appreciate you guys. Thank you for coming.

Thank you.

Can we have just a short leg stretch before we start with the next one?

We have three things to go. We have a request for a leg stretch.

Let's do three minutes. Okay, next up, we get, oh yeah, plenty. Polyard Development Community Wishlist Discussion. Ron Jones is here with us.

Do I need to talk fairly closely into this for you to hear me?

That would be helpful.

Yeah.

Can you hear me now? Yeah. Okay. I'm Ron Jones. I know most of you. I've had conversations with some of you individually, and I'll keep this fairly brief. And I just wanted to give you the courtesy of telling you what we're doing and what we've done. As many of you know, I've been in the ballet 51 years and did Cooper Creek Square. I did a lot of self-storage. I'm out of all that now, and I'm at a place in my life where I'd like to pay back to the community. And so my family and I, my kids and myself, we... Dave Kuntz, looked around and we felt the best way to do this would be to buy the Susan Jones trust property, the hundred and 28 acres, which is part of what is sort of called the poll yard, I guess it's everything from. Dave Kuntz, The Sarah did you want to put a map up there. Yeah, it's everything from the ball fields to the elementary school up to Grandma Miller's and up to Betsy DeVries, my kid's mom's house. It's a very critical parcel that I think needs to be developed properly. And so we didn't do the traditional developer thing of, let's get a development plan and let's draw a bunch of pretty pictures and come to the city and say, this is what we want to do. I felt the property became available at a price that was high, but still we could justify. And we just simply bought it. And our goal is to take a substantial portion of this property and put it to use in for the things that will help make the Frayser Valley a more sustainable place for people to live. It's not about what kind of IRR I can get off the property. It's what we can do to make things work. And so I want to work with Frayser. I want to work with Winter Park. I want to work with Grand County. I want to work with everybody that's involved to listen to what we need in order so that young families don't say, we can't make it here. We can't afford to live here. We have to leave. Obviously, workforce, we just had a whole huge presentation on workforce housing. That's on the top of the list. With 150 acres, and by the way, we're working with Matt Gerke, who owns a poll yard, we're united in cause as far as doing the right thing for the community. With that amount of land, there's absolutely no reason if we can find the developers to do it that we can't build as much workforce housing, single family housing for people who live and work here. There'll be some market things.

Yes. How much does Matt Kirkey do?

He has 10 acres. He has 10. We already had five, and we just bought 128. So it's close to 150 total. And then... my family and grandma louise powers own the 43 acres between uh let's say the rodeo grounds and and the west side of brazier most of that is wetlands but not all of it and when county road 522 gets built which we just had meetings with the county this last week and they're very very close to having that all put together and if that happens i think their intention is to build it relatively soon so anyway the the there isn't a plan to talk about there's there's a dream there's an idea there's a hey we've got the land now and we're not on a short time frame i didn't borrow a whole bunch of money and now i have to go make money We paid cash for it, and we can hold it, and we can protect it. It's not going to be open space. It's an industrial site. I mean, it's not a pretty meadow, but it's a place where the things, childcare, workforce housing, schools, recreation, nonprofits, Riverwalk. There's a lot of things we can do. So the first step that I want to do is hold some public meetings and just listen. Just hear what people in the community say. We'd like to see this. We feel we need this. And we've had people coming out of the woodwork saying, gosh, listen to us. This is what we need. You guys are going to be important because we can't do this without the infrastructure of Frayser. We all know that water is a big issue. We've been talking to your town leaders about solving that. The sooner that we solve the water problem, the sooner we can get going with trying to put land underneath. I want to be very, very clear. we will donate some land. We will make some land affordable, and then we'll have some market land. We'd like to at least recapture what we paid for the land, maybe make a small profit, but that's not our main motivation. The main motivation is to actually have a resort community that works for everybody, not just the people who come here as the second homeowners. And that's a big, broad picture. That's a huge tent, but... You're dealing with somebody who's lived here 51 years. Katie Soules and I played pool. We both came to town the same night in 1975. Halloween night. And we've done it. together all this time. And so that's what we're trying to do.

Yeah, that's wonderful.

I'll answer questions, but there's not a lot more detail. We've bannered around some names, and I think for the time being, I just like to refer to it as a community project at the poll yard. That won't be the end name, but that's kind of the, everybody knows the poll yard, and that's what we're trying to do is do a community project.

Wonderful. So, yeah. I was thrilled when you found out you bought it. So the old pond, the mill pond. Yes. That's back there that hardly holds water. That's in your property now.

Yes.

And we're always looking for a place for water storage, I believe, and it's a good opportunity for potential recreation and park. I know our kids played there growing up. It was just fabulous. So anyway, that's something for us to kind of tuck away as a possibility for another little park in there and also to be able to use that water for water storage and water mitigation opportunities. Because that's kind of big for the town. We need more of that.

We have been discussing those exact concepts with our team and your team. And as I understand it, doing treatment of surface water is very expensive and probably outside of the budget of Frasier. However, drilling wells... and releasing water to augment wells from a storage pond is very efficient in comparison to surface. So that is definitely something we're talking about. One thing that probably isn't that well known in the community, it's not a secret, but those of you who know where I live, I've got about a seven-acre lake that Dwight Miller dug as a... It was a rock quarry or a gravel pit way back when. And that water has just been sitting there. I don't have any water rights, but I've got the right to have the lake. So I have made an agreement with the Middle Park Water Conservancy District to convert that into a community purpose reservoir. That gives us the possibility of releasing augmentation water. And there's not that many users between Frayser and where I live in Tabernash. I'm not saying that it'll work, but it's certainly something that it makes sense that Frayser would want to cooperate with Middle Park Water Conservancy because they're certainly here for their whole district. So I think we're going to have to get creative to solve that problem. But as soon as we do, Then we can start talking to the various individuals. We can do a land plan. We can start coming to you to talk about annexation. We can start talking to groups who need land. I've had several nonprofits come to me and say, gosh, we'd like to have our own place. We'd like to have land underneath us. I've had a lot of people say, gosh, I really want to stay in the valley, but I don't necessarily want to live in an apartment. You know, workforce housing is not where I want to raise a family. I'd like to have a small piece of land. I mean.

A neighborhood.

A neighborhood. And Andy Miller was talking to me last night about when you and I moved up here, people bought a little piece of land and they built their own house because that's the only way they could afford to do it. You know, one year they'd put up this wall. The next year they put up the other wall. And I hope people could build it sooner than that. But it'd be nice to have small lots that are affordable that people can figure out a way to actually own a house. Now, I can't do all the vertical, but I can help solve the land. And land cost is, as you know from the project you're doing on the housing, land cost is a huge portion of it. And if we can bring that under control, there's a whole lot of good we can do. I wish I had more details, but I can't have more details until we collectively work through this and solve some of the issues. So, you know, what we're dealing with is a spirit right now. And I want to invite everybody in the community to participate in this. It's not a secret. It's like, how can we do this together? And I've had an incredibly positive response. I've been talking to a lot of people, everybody from you know, the ski areas, to governments, to nonprofits. And I think this is an opportunity for us to really come together and say, what do we need to create a community that's more livable and not just for the second homeowners? So any other questions?

We're very excited.

I'm excited. I hope you guys are.

We are. That's great.

What other thoughts do you guys have? Thank you. Thank you.

Yeah, thank you, Ron. Thanks so much.

Yeah, absolutely.

Andy Miller, Planning Commissioner Frazier.

You know, I've been doing this land development review game as a town board member, as a journalist, as a naysayer out in the community a long time, 50, 53 years, I believe. um and last night after talking to ron over dinner last night um i lost a little sleep for the first time it wasn't because i was worried about something it was because i was excited about something so this is this is really cool um i think the the key words that i got from ron that i heard again tonight is a community built project and get the young people involved and uh we've got so many people so many of my Both of my sons are in their mid thirties and doing good things, but basically pretty convinced that government doesn't do anything to help them out. And here's some property, here's a possible project we might put together. When we were talking about the poll yard, we came pretty close to buying that, I know. We talked about a make it space. The make it movement is, you don't hear a lot about it lately, but it's out there. A lot of people wanna know how to work with their hands. You know, and you think about these tiny lots and small houses, not tiny houses, but houses that could have all the facilities in them. And the owner that wants to build them, but is working by himself. And maybe we don't do one wall at a time. That could create a blight on the landscape. But maybe we bring in, like Breckenridge does with art vacations, maybe we have make it type vacations. And we have a community shop out there with the facilities and the tools and the things that a person needs to build a house and learn trades. And then tourist visitors come in for a little Huck Finn vacation. I got the brush. I got the paint and there's the fence. Let's see, you know, it's going to be a little more elaborate than that, but that's the spirit of it. So there's just so many great ideas that the young folks in town will come up with. And those amongst us who've made those mistakes in the past can hopefully at least offer a path past those.

So Ron, I'm super excited about this.

And it's just really nice to hear somebody get up here and say, I want to give back.

Indeed.

Thanks.

Okay. All right.

Well, I've had a number of conversations with Ron. It's always been fun to kind of dream of what we want to put in this space. Have you guys heard anything else or have you thought of anything else that hasn't already been brought up?

Well, I was interested, I know I brought up, I mentioned to a gal who's a teacher, you know, about school, and then, but she was really worried about stretching the resources and funding that we have for our school district already. So that was interesting. You know, in terms of a middle school, high school combo.

I think it needs to be considered.

You know, and we need, we're going to need a new location for Safeway eventually. It is busting at the seams and we're probably going to have another thousand people as permanent population over the next 10 years maybe more and it just can't accommodate it you think about the number of people but this particular property it doesn't really work for because of the railroad you can only access off of county road five right or coming through the town of frazier um now across the street you know what's going on with the rest of that jones the susan jones trust property right there up at eight the corner of eight and forty

It's listed, and they're trying to sell it.

Yeah.

And that's all I know. I've heard rumors, but that's all I know.

Yeah.

But you bring up the transportation issue, and this is something I should have included in my presentation, because this is an action item you guys need to be aware of now, and I'm sure you're going to be hearing about it. Scott Ledeen brought up and then several people after him brought up the need to be able to connect the elementary school to the ball fields so that kids can safely walk from the elementary school to the ball fields. This can happen very, very soon because County Road 522, now that it looks like it's for sure going to happen, has a bike path, a separated bike path from the roadway that goes over the gas line easement, and it goes all the way from, well, from County Road 73 to the ball fields. If we can simply connect the elementary school to 522, that connection is here very soon. I mean, it could happen in the next year or two. The other thing that the county said in our meetings, and I don't think I'm saying anything out of school. When 522 was first designed, this was 20 years ago. And the Susan Jones property, there was no hint that any development was going to happen. So there was nothing urban. The road was designed to be 40, 45 miles an hour moving traffic. When the county understood what our vision is, and in some of the discussions we've had were The potential of maybe as many as 2000 sfe is out there and that type of density. That traffic has to slow down now and the county engineer and the county manager completely understood that this is going to become an urban corridor mean as urban as we can pull anything in grand county and that's a good thing because you don't want. people zipping by all of the existing homes that you've got on the west side of Frayser at 45, 50 miles an hour and creating noise and safety issues. So if that road slows down, you all need to really seriously think about how Eisenhower needs to connect to 522. Because it's the only way to get from Frayser to the ball fields and the kids to get there without going across the railroad tracks and going back out on Highway 40. So if Eisenhower connects to 522, now you've got a way that the citizens of Frayser can get to the ball fields. And in talking to the school district, as they look 20, 15, 20, 25 years down the road, ultimately there's probably going to be a high school and a middle school in this end of the county. And when that happens, It's either probably going to happen on our property. There's some other ideas that are being floated around, but it's going to be right in that neighborhood. So if we have all of this school thing, we have all of the workforce housing, we've got the library, the elementary school, and Old Town Fraser, we've got to have that transportation connection. And it's not just that intersection. We need to be looking right now at a road plan. I mean, how is this all going to tie together? We don't want to be reacting to it afterwards. So if 522 gets built now, I mean, one of the main purposes of that is so that locals can avoid some of the traffic that gets congested on Highway 40. I mean, we're going to know about it. So you can start in Tabernash and get to Safeway and avoid Highway 40. So I urge you all to coordinate with the county and us to figure out how all of those intersections and how the traffic's going to flow. And that's long before we ever solved the water problem. That's like right now. So thank you for letting me add to that.

Thinking about use too, the end that's closest to County Road 5, field house. Because we don't want it in the meadow and right here in town, but to have it right across from the ball fields, that's the place for a field house.

It was interesting because Scott mentioned tonight about a master plan thing that's visioning and I think that's been one of the things that I keep hoping for, is that we can work with Denver Water, expand to the north, create this ball field so that we can attract tournaments and be in the same business that Steamboat's in, and bring them in to stay in our new hotels. And people will come and spend money in the summer.

I'll throw something out that a lot of people were surprised by, and my friend Mike Rapucci said, noticed this and brought it up the conservation easement that's on all the land that Peggy's talking about north of the ball fields has been given by the Denver Water Board the holder of the conservation easement is the Grand County Board of Trustees it's not a land trust it's our county That gives us a huge amount of flexibility in working with that particular conservation easement. There's also an exception written right in the conservation easement for educational purposes. So right now, there's no prohibition on anything that would be, of course, middle school, high school, it would certainly be educational purposes. What we have is a lot of flexibility here as a community to think about How everything from the elementary school to the other side of the ball field should come together from a planning perspective. Now, no promises. We have to work with the Denver Water Board. We all know how easy they are to work with. But, you know, I think if we as a community come up with a plan that really works for the community, as long as we're not taking any of Denver water's water. I think that there's a chance that we could work with them, and some of these uses we're talking about, like a field house, a school, could actually expand in that direction. And it wouldn't take up that whole meadow. I mean, it would probably take up, I don't even want to guess, but not that big. And all the discussions we've been having, everybody points out the same thing. If you're going to have future schools taking advantage of the existing resources Larry Crumpler, Recreation facility of the ball fields cuts down on the amount of land, you need for all the high school activities so we've got just an incredible opportunity to get ahead of the game. Larry Crumpler, One of the things that i've heard i've been saying for years and other people are starting to say the same thing we're the last frontier. All the other ski areas have already done it. They either did it right or they made their mistakes. And we can learn from what's happened in the other ski areas and hopefully avoid some of the mistakes. We still have the ability to figure out how our community as a whole works. Got a world-class ski area, got all kinds of second homes. We got tons of townhouses and golf course houses and everything else. Now we have to figure out how the Grand County is not going to become Aspen Basalt Rifle. We don't want all our employees to have to drive to Kremlin. We want to be able to let people live and work in this community. And that's my goal, is do everything I possibly can to pay back to achieve that. And it's a big, big project, and we're going to need a lot of help. So it's an open tent. But right now, let's focus on that transportation item, because that's going to happen sooner than later. And the last thing you want to do is build a road, and then a year later, come back and say, oh, we didn't think about this. So we need to think about how this is going to work in the overall planning process. Anything else?

Have they mapped out exactly where the road's going to go at this point?

Yes. Yeah. You did the follow-up.

Karen Hollweg, Okay i'm Adam usually my police, thank you, it essentially goes from the loop road that goes through parks property and starts a county road 73 and sort of curves around through our 43 acres. Karen Hollweg, and comes out at the intersection of county road 50 there by the gas meters or gas, you want to call that substation and then it there's a little job where it hits county road five. to line up with the road that goes next to the ball fields. So the other thing that I'm a strong proponent of, and I think the county is listening, is to get some roundabouts in there early on, rather than just having stop signs and all that type of stuff, because that slows down traffic. It's a safe way to get around. So I really encourage Frayser to get involved in that planning process because Even though it's a county road, it's really impacting the town of Frayser at least as much as it is the county.

I was just saying that the road layout is determined at this point. Whether there's roundabouts or not, I do not know. Last December, I renewed the 404 permit with the state. I work for the county as a water resource guy. So yeah, that's moving forward.

It's really close.

I think there's one more step. I don't know if we have final Army Corps yet, but that's in play. It's expected to come through because it's a renewal. This has been going for 20 years and it's just an updated process, basically.

And the county staff and the county is really supporting this and they're doing it right. And, you know, the Ed Moyer's been working on this for years. And I think they're circling back after some community input that came in. And I think they're really close to having it done. And we're going to be fairly significant in terms of land acquisition because of this latest property we bought. And we're going to cooperate. You know, we're not going to try to hold it up at all because the sooner we get that connection, the sooner our kids can get from the school to the ball fields. And to me, that's a huge benefit to our community.

So isn't the expense for a roundabout mostly just the land? I mean, you save a lot of money on not having stoplights, which are really expensive.

I haven't looked at their budget. So you're going to have to ask the county. You can ask Clark. The cost come. Yes, Jack. I know from our standpoint, it's public record for processes as they went and got an appraisal and they said, this is what it's worth and this is what we'll give you. and we said sure you know we're not going to fight them you know whatever we're just like everybody else you know if they if the land's needed for a public purpose that's part of the cost and they'll they'll buy the right-of-way but uh a lot of the right-of-way they already have because they've got counter at 50. so and and that i don't know who actually owns the land behind the ball fields whether that's whether they already own that or not but uh there there is some People in Tabernash are not very happy about this, but I'm not going to get involved. Any other questions? I'd be happy to talk to any of you individually. I'd love your ideas. We just want to listen. And it's a big open tent. I've had a lot of people in the community that have development experience who've come forward and said, we'd like to get involved in this one way or the other, either from a, you know, well, I'll just say we've got a lot of help. That's good.

Thank you.

That's great. Thanks, Ron.

Thank you. Thank you. Oh, here comes the train. Might have to close the door.

Resolution 2026-0803 On-site Distribution Extension Excel Public Works Facility. Paul?

Good evening, Mayor, Board of Trustees. Paul Johnson, Public Works Director for Frayser. The matter before you is the on-site distribution extension agreement with Xcel Energy. So very similar to what we did with Mount Parks Electric to get electric run. This is the agreement for Xcel to bring gas to the public works facility. They would be coming from their line currently in Alderbrook, and they'd be doing a railroad bore, bringing it down the southern property line and then up the western property line to the cemetery. Part of their agreement is they have to run gas all the way across the property. So they've finally got that all worked out to us and sent that over to us. That comes at a cost of $188,617. So the idea is to handle it the same way we did with Mountain Parks, get the infrastructure run. And then once the COPs are issued, we can go back up to three years to recoup costs. So basing this on keeping this project moving forward, all the work we've done over the last two years is just to keep this moving forward. So I wanted to bring that to the board for authorizing the manager to be able to sign that agreement with VIXEL.

So I'm curious on the board. Is that part of this $188,617?

Yeah, so in the packet where it shows the gas main, what's the title?

I got the map. I printed out the little map thing, which is cool.

So on that one right there, it includes a bore in green, right? Yep. So it's talking about they're going to do a bore and then they're going to run the, they would bury the rest of it there, but a bore under the railroad at 12 feet deep and they require their own bore. So they wouldn't be able to use any of the five that were existing.

In the same easement though?

They were going to get their own new easement. Really? Apart from Grand Park. Back when those bores were put in in the early 2000s, Grand Park approached Excel and Excel says they do their own bores. So they only put five in. They put one in right next to the existing five that are there that bring water, sewer, raw water, comms. So no, I don't remember what the other one is. I'm blanking on them. Any other questions?

I'd like to make a motion to approve Resolution 20260803, On-site Distribution Extension for Excel Public Works.

I'll second. Any further discussion? All in favor? Aye. Aye. Any opposed?

Okay.

The motion passes. Thank you. Thanks, Paul.

Thanks, Paul.

Go on. All right. Resolution 2026-0804, IGA with Grand County Clerk for November 2026 election. Antoinette.

Hello, Board and Trustees again. Antoinette McVeigh, Town Clerk. So I wanted to bring the IGA back with the county to coordinate the election. I have done further research on the election. So the background is the voters approved ballot question 2A, November 5th, 2024 to move the regular municipal election from April to November in even numbered years. 2026 will be the first municipal election to be held in November of this year. At the last meeting, I raised concerns regarding the Grand County Clerk's ability to protect the integrity of the voters and the Clerk's ability to understand and follow the Uniform Election Code of 1992 and the Colorado Municipal Election Code of 1965, Title I of the Colorado Vice Statutes. The board discussed my ability to administer the 2026 election as a standalone election and not coordinate with Grand County. In further researching the option, I spoke with the county clerk's office regarding the use of the ballot box at the Fraser Metropolitan Recreation Center. I inquired if it would be possible to simultaneously use the ballot box for the county's administered general election and the Fraser municipal election, each having separate ballots. They told me they spoke with the Secretary of State and it was determined that it was not possible. This would raise security issues with the ballots. One entity receives another entity's ballots. And I concur with that concern. I'll be honest, I don't know that that's totally accurate, the information that they told me from the Secretary of State, but that's what they've told me. So it leaves Frazier with no ability to use a ballot box outside of the available 24 hours and be outside and be available for people to be able to drop ballots 24 hours a day. If the board would have a mail ballot election, the only place to drop off a ballot would be here at Town Hall, and people could only do it Monday through Friday during business hours. I would be concerned the limited days and times to return a ballot, the voters could be disenfranchised or confused about what to do with their ballot. um the residents of fraser have used the ballot box at the recreation recreation center for many years and i know that they're used to dropping ballots there and i'm concerned that fraser standalone ballot could get the ballots could get returned to the recreation center and they potentially don't make their way back to fraser and maybe don't even get counted i would hope that wouldn't be the case but i just don't know um And another option the board could consider would be to have a polling place election. This would require residents to vote in person the day of the election. No ballots would be mailed. The town of Fraser hasn't conducted a polling place in an election in at least 20 years. A polling place election could also confuse voters why they receive a general election ballot with no Frazier trustees, and a polling place election, I think, could result in lower voter turnout and, again, additional confusion with the voters. That is what I absolutely want to avoid. So I'm recommending that we go ahead and coordinate the election with Grand County and approve Resolution 20260804, the IGA regarding the conduct and the administration of the November 3rd, 2026 election. By coordinating the election, the voters would receive one ballot with a clear instruction on where to return it. This could eliminate any confusion for the 2026 November election. Would also recommend that the town of Fraser research installing an exterior ballot box here at Town Hall that could be used in future elections. At this time, there's no way to get one in before the November 2026 election of this year, but I think that we could potentially do that before the 2028 election in two years. So the board really has, in my opinion, the two options. We coordinate with the county or we do a polling place election. I think that are really the only two options that the board has.

I'd like to make a motion to approve Resolution 20260804 IGA with Grand County Clerk for the November 26th election.

Second. Is there further discussion on this? All in favor?

Aye. Thank you.

Any opposed?

We appreciate your concern. All right.

We're on to updates. We've got how many minutes listed? Any updates from staff?

Paul's got a few for us.

So I want you to give a quick update on the utility billing. The board had requested us to move to monthly billing. So our billing software, Cassell, in communication to Becky today, stated that it would be possible, but possibly a three-month process for them to make that switch at a cost of $4,000 to $6,000 for that transition. So just wanted to know if the board wanted us to move forward with that. So they probably would not be able to go billing until fourth quarter, maybe first part of the year. Just the way that system is set up, it's not extra work on our end, but the system, I guess, is not set up to do that. So they had a long list of items that would be required that we would need to do. And so it's 20 to 30 hours, they say, at $200 an hour. So don't really know what it's going to look like, but we can still pursue moving to monthly. Okay. Just there would be a cost involved now where we didn't think there was one before.

That's a one-time cost.

One-time cost. Okay.

I think we still move forward. Yeah, forward? Yeah.

I think we already decided we're going to have monthly billing, right?

Yeah. Okay. We didn't know there was an expense that would be attached. Yeah.

Yeah, and we'll update communications with the community to let them know that we are moving forward with it, but it will be delayed so they can expect to see that likely hopefully beginning of 2027.

So, when we went to notify the community about the increase in rates for people that use more than It might have come through the billing. I didn't look at my usual app that has my billing, but I never got a separate email that just told me about it. Yeah, I talked about that.

No, and we apologize for that Becky was looking into the gazelle work that she has to do with our updating our contract so that mailing has not yet gone out in terms of because it was supposed to confirm the monthly billing. So she will send something out and we'll let people know that the monthly billing has been delayed but that the increased fee structure is in place based on the drought pricing.

Okay, so people really didn't get a heads up on the increase in fees for our drought pricing.

They were supposed to. But yeah, we posted it on social media, but I don't believe it's gone out.

So should we charge it if we haven't notified everybody? And if it's been cut 20%, I don't know. It just seems like... I think that's a fair question. You agree with me?

John Potter, Well, I mean just that was my objecting to the last one, we had on this because we didn't have people don't have visibility to their usage we didn't win the monthly billing they weren't notified and now we're in a situation. John Potter, Again, I didn't think it was right ready for primetime and it's and it's not so are we backtracking or I don't know I do feel like that's a little bit of. surprise billing for people that don't know. And there's just been a lot of confusion and a lot of misinformation or no information about the change.

And right now the website just says upcoming rate change. It doesn't say. It says BOLO for an email, RE watering restrictions, upcoming rate change.

But you have to go to the website. There's no... If you get a water scope, I think it's already changed to monthly. You can pull up monthly. I think for August it's sort of changed, but people haven't been notified, especially about the rate change, I guess, is the other thing.

So has that rate change been built into our program yet that Becky uses for billing or not? I'm guessing not. And if it hasn't been, I don't think we should charge people for that rate change. If the drought sticks, we'll make it happen next year and make it part of our policy and make sure everybody gets notified and they know that this is how it is when we're in drought conditions.

Paul, can you update us on the usage? I'd be interested to know when we made the change for watering, how much of an impact?

I don't have an update other than what I did last board meeting where there was a 20% reduction in irrigation use. We had a massive decrease once we started the social media campaign. so i i would say that i got no notice whatsoever uh in kremlin it was social media only posted on the website and um two day a week watering same as what we've done so unless i mean i'm signed up for the alerts so i get those alerts when they they post something but um i was not notified via a separate um email and waterscope's always going to give you monthly it'll give you daily usage there's no change in waterscope now that you have water scope, you can see your usages. It's not... We'll continue to pursue getting monthly billing.

Yeah.

Next update. Can we get something out right away?

I mean, can we send something out? I mean, it's only a week into August, but if we're not going to change the rate and we're going to continue doubling the rates, we've got to let people know.

And I think we could send something out tomorrow. And again, something was supposed to go out. So I apologize that has not happened. It's been we're kind of in a situation now where it's been on the website and social media and at picnics. So some people have seen it. But I agree that it should be emailed to everybody. Given that we're five days in, I would think people have not moved into that second tier yet where that increased rate has happened. I know when I talked with Becky today, we wanted to update the board about the monthly billing status, and then we're going to send out a communication letting people know that while this was discussed, this is going to be implemented in 2027, but that all other drought restrictions were in effect with that billing information.

Yeah, and then spelling out what the tiers are and what the costs are. Correct. Yeah. I think we need to get it out. This week or don't charge people. That's kind of my opinion.

Yep. The travel restrictions, did that get mailed out to everybody? Nothing mailed.

No, and again, I think they were waiting to sort out the monthly billing and thought that communication had gone out, but it hasn't. So it's just been through social media and Picnic and on our website.

Okay, thank you.

And I guess I'm not 100% sure if the initial drought restrictions were supposed to go out, if that went out or not, but if you have not seen them with your water bills.

I didn't get it mailed, but I got it in a text with a link.

Which is a good point. Do you know, Paul, because I know Lucas has put a lot of effort into contacting the people that are in Tier 2 and Tier 3 or that are getting close to Tier 2 and Tier 3. My understanding is notifying them that they are approaching those levels where that drought pricing does take effect.

Yeah. Lucas is calling anybody that's using a lot of water. It doesn't, he's not, as soon as he sees excessive use on a, on a, like the next morning, he gets, if he gets a flag, there's been a, he tries to make those phone calls. I know he made a phone call just this week to somebody. And he said, it looks like you're using, you have a toilet flapper that is leaking constantly. And the property owner said, yeah, that toilet is making a lot of noise. That is a significant amount of water. if that when that toilet runs non-stop for 24 hours a day for weeks at a time so yes lucas makes phone calls to try and make people aware of their water use so that nobody ends up in tier two without their knowledge of doing it okay you know thank you willingly going into those tiers

Thank you, Lucas.

Yeah, he's been super proactive on that individual basis.

I had a friend with a rental that he got a call from Lucas, and my friend went and looked, and he's like, sure enough, toilet's leaking. So same deal. It's impressive. It's working.

It's working. So people that are in jeopardy are getting notified.

I mean, it's really more irrigation than it is.

Well, it doesn't matter, but it's getting notified.

Every lot in Grand Park and Rendezvous gets to irrigate 250 square feet. That's our water right.

Well, Rendezvous doesn't irrigate other than drip systems.

Yeah, that's just the water that serves that system is those developments. Every EQR gets 250 square feet of irrigation, and the quantity is not even enough to sustain bluegrass. So you're kind of in a real interesting situation where everybody wants bluegrass, but our water right doesn't support it.

Right.

And it's limited to a parking spot, basically. So, you know, it's one of those things where I think, unfortunately, if you're putting in an expensive irrigation system and putting it in your entire yard, it's a poor investment.

Yeah. Well, so back to where we are with notifying people about the drought restrictions and now the fees increasing and all that. I mean, what are we doing now?

I think we send out an email tomorrow, but it does sound like everybody who is in jeopardy has been notified. So at least, you know.

Nobody's been hanging out. Right. Not unnoticed.

Right. I mean, I got a phone call. I had to lower my watering. So yeah, it's good. It's fine.

All right. Works for me.

I have several more. You can get it out. I'll be looking for my email. Second one, just let everybody know that the filter plant at the wastewater treatment plant is turned back on on Monday. So they will do the work with Tetra Tech and the supplier to make sure everything's running perfectly. And then we will notify Northern Water that we're back online and start collecting that revenue stream again. Clayton Court is scheduled for paving on August 24th. So with good weather, it's not the end of the project, but if you drive by there, you'll see our nice red sidewalks and our new roll face curb. With the J&L property acquisition, that is going in. So right now we've got some subgrade problems, which was to be expected on Clayton Court on everything we've seen with the waterline install, the Strom construction. There's just a lot of organics in there. So working on that. But August 24th is when paving is scheduled, barring any delays with weather. And then today, actually, I received the 60% to 80% design plans for the exterior bathroom access here at Town Hall. So I'll be reviewing those this week and getting those so we can at least get that out to bid and hopefully try and get somebody lined up to get that work done. And then lastly, I don't know if anybody noticed the wiring at the bathrooms today, but the security cameras are being installed starting today. So hopefully we'll have cloud-based security cameras out there and then motion sensors inside all three rooms to make sure that there's nobody in there after hours.

What about during the day?

Well, they're unlocked during the day, so I can't do anything about that.

No, I'm thinking the cameras. Any chance of somebody peeping at the cameras during the day? If they're shining in the bathrooms?

No, it's not the cameras. Oh, okay. Cameras are outside.

It's just motion detectors inside, Katie. Motion detectors are inside. Yeah, those pointing towards the doors. Good, good, good.

And... I do think that we should not invest into that job until we've addressed our budget and see where we're at this year and our sales tax dollars.

Which job?

The project doing the bathroom access outside.

We did set some funds aside in the budget for that, but we've got to make sure it's enough.

Okay, for this year?

Yes.

That we have, okay.

Mm-hmm. That's all my updates. That's it.

Thank you. Board, any updates? Sarah?

we are looking to make an offer to an assistant town planner so hopefully at our next board meeting we can tell you that that individual has accepted um the assistant town manager position is posted um we've got started getting some applications in for that uh we have not yet had anybody pick up petitions to run for board member seats oh we did Oh, good job. All right. We have one person. So board members that are running for their seats, please make sure you pick up your petitions. And if there's anyone you would like to encourage to run, please send them our way.

When's the deadline? To pick them up?

They're available now.

i just went back to my emails there was an email that went out on july 6th about the mandatory water restrictions so okay that was restrictions just on a rating no for the rate no no the rate it was after the first board meeting so uh july 6th and about the same day our bills our bill came out okay so it did That did go away.

Okay, that's good. Thank you for that. And Louis, I did figure out or I looked at where that confusion around the HOA watering was coming from that you had brought up at the last board meeting. So I know I emailed you about this, but just for everybody's clarification, It had listed commercial buildings, multifamily properties, and HOAs as having their own watering days that was meant to be HOA common spaces. So like if there's a grassy area that is maintained by an HOA. So we've cleaned up that language to specify that. So any single family residences should be on odd or even days.

That's the flyer that went.

Yep. And so that's when we've updated just to say HOA common areas. Right.

Thank you.

Just two quick updates. I'd like to give a shout out to Jeff Lundy who made these beautiful staff tables for us. He did them here in the workshop. And then Zimmerman Christian received his class C water license at the wastewater treatment plant.

Awesome. Nice. Cool.

All right. We need to move into executive session.

I'd like to make a motion to enter into executive session for the purposes of determining positions relative to matters that may be subject to negotiations, developing strategy for negotiations and or instructing note negotiators under CRS section 24 dash six dash 4024 e regarding the Joint Facilities Oversight Committee agenda review, including town managers, Sarah Catanzaro and Public Works Director Paul Johnson.

Second,

me for the discussion all in favor okay um this will be recorded yes sir so but stop you don't get one no it's really weird kind of forgotten if we we approved it