| August 2000 |
Shae Homes, LP (SHLP) petitions and receives approval from Commerce City Council authorizing service plans for the creation of three new property tax districts:
--Buffalo Hills Metro District (renamed in June 2001 to Reunion Metro District [RMD])
--North Range Metro District No 1 (NRMD1)
--North Range Metro District No 2 (NRMD2)
Per the service plans, SHLP states the three districts plan to eventually expand their service boundaries (currently at 35 acres) to provide public services to and finance public infrastructure for approximately 3,100 acres of currently undeveloped land in the northeast section of Commerce City.
The service plan for each district limits each District's debt to $280 million and limits the property tax mill levy to a maximum of 50 mills to fund the repayment of debt.
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| November 2000 |
The District’s seven electors (all of whom were employees or spouses of employees of and qualified to vote by the owner of all land within the District at that time - Shea Homes Limited Partnership) unanimously voted to authorize the District to issue debt at net effective interest rates not to exceed 18% per annum in amounts not totaling more than $684 million to fund infrastructure improvements, $10 million to fund the District’s operations and maintenance costs and $342 million to refund any outstanding debt.
The District's seven electors also voted unanimously to authorize the formation of the District and unanimously elected from among themselves five individuals to serve as public officials on the District's board of directors.
RMD and NRMD2 hold similar elections on the same day with the same seven electors unanimously authorizing each district to incur up to the same amount of debt, authorizing the creation of each districts and electing the same five individuals to serve on the board of directors for RMD and NRMD2.
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| December 2000 |
Adams County District Court reviews the election results and City-approved service plans and declares the District, RMD and NRMD2 as organized.
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| December 2001 |
The District issues $30.5 million in bond debt on the public financial markets. The proceeds were used to (1) pay $1.0 million in issuance costs, (2) $8.5 million to be set aside to fund interest payments on the debt and (3) $21 million to be transferred to RMD.
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| December 2002 |
The first home within the Reunion Community is sold to a homeowner (16550 E 104th Place)
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| April 2004 |
SHLP transfers the deed to the Reunion Recreation Center to RMD for ownership and maintenance of the facilities.
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| December 2005 |
The District, RMD, NRMD2, NRMD3, NRMD4 and NRMD5 replace McGeady Sisneros, PC with White, Bear, Ankele, Tanaka & Waldron, PC as general counsel for all districts effective January 01, 2006.
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| February 2007 |
The District issues $35.3 million in bond debt on the public financial markets. The proceeds were used to (1) partially pay $1.8 million in bond issuance costs and (2) retire the District's existing $34.2 million in bond debt.
SHLP sells a 28.9 acre parcel at the northeast corner of 104th Ave and Biscay Street to Wal-Mart Stores. (Land is located within the property tax boundaries of the District.)
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| June 2008 |
Two homeowners are appointed to the District's board. This is the first time any homeowners have served on the District's board. Homeowners continue to come and go serving on the District's board but never controlling more than two seats on the Board until May 2020.
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| 2012 |
King Soopers opens at 104th Ave and Chamber Rd opens for business (the commercial center is within the property taxing boundaries of NRMD2).
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| June 2016 |
The District issues bond debt on the public financial markets totaling $37.6 million. The proceeds was used to (1) retire the District's existing $26.7 million in bond debt (issued in 2007), (2) repay $2.2 million in Developer Advances to SHLP, (3) pay $0.5 million in refinancing costs and (4) transfer the balance to SHLP-controlled RMD under the 2016 MLEPA.
On June 3, 2016, North Range Metropolitan Districts No. 1, No. 2, No. 3 and No. 4 (collectively, the North Range Districts) and RMD (collectively, the MLEPA Districts) entered into a Mill Levy Equalization and Pledge Agreement (MLEPA). At the time the MLEPA was ratified by the MLEPA Districts, all directors serving on RMD and North Range Metro Districts No. 2, No. 3 and No. 4 and three of the five directors serving on NRMD1 were officers/employees of SHLP and all such directors reported conflicts of interest regarding their service as directors on the MLEPA Districts.
Per the MELPA, the North Range Districts all agreed to (1) levy property taxes on their respective constituents each year in an amount as directed by RMD, (2) remit all property tax revenue and specific ownership tax revenue collected under the North Range Districts’ respective operating mill levies to RMD and (3) remit to RMD any property tax revenue and related specific ownership tax revenue collected under the North Range Districts’ respective debt mill levies in excess of the North Range Districts’ respective annual service requirements (Surplus Debt Mill Levy Revenues).
Per the terms of the MLEPA, the MLEPA states it cannot be amended or terminated without the consent of RMD.
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| May 2017 |
On May 1, 2017, the North Range Districts and Reunion MD amend the MLEPA to require the North Range Districts to levy the maximum allowed debt mill levy (defined in the MLEPA) each year and remit Surplus Debt Mill Levy Revenue to Reunion MD until the Series 2017 bonds issued by Reunion MD to Shae Homes LP (the 2017 Reunion MD Bonds) and any additional debt issued by the Reunion MD (not to exceed $280 million in total) is paid in full.
The amended MLEPA also prohibits the North Range Districts from (1) issuing any additional debt without the consent of the Reunion MD and (2) levying an operating mill levy to generate property tax revenue in any subdistricts within the North Range Districts.
NRMD2 issues $37.6 million in bond debt on the public financial markets. The debt was issued to retire NRMD2's bond debt issued in 2007. The financial projections included in NRMD2's bond offering document assumed all funds generated from the maximum debt mill levy required under the MLEPA would be required to repay the $37.6 million debt (with no funds available under the MLEPA to repay any debt issued by RMD). Per the terms of the 2016 MLEPA, NRMD2 obtains consent from RMD to issue this debt. All directors serving on the NRMD2 board are employees of SHLP and all directors also serve on the RMD board.
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| June 2017 |
Reunion MD issues a $16.6 million in bond debt instrument to SHLP. The final par amount of these bonds is $21.6 million and interest accrues on these bonds at a simple rate of 4% per annum. The 2017 Bonds are secured and payable from the following revenue sources: (1) Surplus Debt Mill Levy Revenue remitted by the North Range Districts, (2) system development fees not otherwise pledged to the North Range Districts, (3) Commerce City Credit Fee revenues and (4) any sales and use tax revenues received from Commerce City through revenue-sharing agreements that are not otherwise pledged to the North Range Districts.
RMD board member and its general counsel continue to publicly claim the 2016 RMD bonds were used to finance regional public infrastructure and therefore all North Range Districts should share in the repayment of RMD's debt owed to SHLP.
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| August 2017 |
SHLP sells various undeveloped land tracts - including the single 0.23 acre land parcel on the east side of E-470 that comprises the total service boundaries of RMD - to Clayton Properties Group II, Inc (which operates under various builder names including Oakwood Homes) [CPG2].
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| May 2020 |
Seven homeowners run to fill three open seats on the Board created by three SHLP employees whose terms serving as directors on the District's board expire in May 2020. SHLP and CPG2 do not place candidates on the election ballot to run against the homeowners. This is the first time in the history of the District where all five directors serving on the board are no longer affiliated with or employed by SHLP or CPG2.
Eight homeowners run to fill three open seats on the NRMD2 Board created by three SHLP employees whose terms serving as directors on the District's board expire in May 2020. SHLP and CPG2 do not place candidates on the election ballot to run against the homeowners. This is the first time in the history of the District where homeowners have served on the NRMD2 board. (Two directors (Rau and Price) who are employed by CPG2 remain on the board until their terms expire in May 2022.)
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| November 2020 |
North Range Metro District No 3 (NRMD3) - a party to the 2016 MLEPA - issues $51.1 million in bond debt on the public financial markets. Per the financial forecast included with the 2020 Senior Bond offering document, NRMD3 is projected to generate "excess" cash flows from its debt mill levy (i.e. cash above what is required to fund the annual repayments due on the 2020 Senior Bonds) beginning in the year 2030. However, the financial plan also contemplates NRMD3 issuing up to $4.5 million in Subordinate debt, which would absorb all of NRMD3's projected excess cash flows from its debt mill levy through the year 2050.
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| February 2022 |
The NRMD2 board replaces White, Bear, Ankele, Tanaka and Waldron PC with Paul Rufien, PC as general counsel for the District. This is the first time in the history of NRMD2 where NRMD2's legal counsel does not have conflicts of interest representing both NRMD2 and the developer-controlled RMD.
The NRMD2 board replaces its accountants (CliftonLarsonAllen, LP) with Wolfersberger, LLC. This is the first time in the history of NRMD2 where its accountants and district management contractors are not also the accountants and district management contractors serving the developer-controlled RMD.
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| May 2022 |
The 4-year terms expire for Bruce Rau and Brett Price regarding their service as directors on the NRMD2 board. This is the first time in the history of NRMD2 where all directors serving on the NRMD2 board do not have conflicts of interest regarding their public service on the NRMD2 board.
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| June 2022 |
NRMD3 issues a $4.4 million bond to CMH Capital, Inc (an affiliate of CPG2) for the purpose of reimbursing the Developer for advances the Developer made to RMD to fund capital projects within North Range Metro District No 3. Per the terms of the 2016 MLEPA, NRMD3 obtains consent from RMD to issue this debt. All directors serving on the NRMD3 board are employees of CPG2 and two such directors (Rau and Price) serve on the RMD board.
By issuing the 2022 Subordinate debt, NRMD3 extends by 20 years (to the year 2050) its inability under the 2016 MLEPA to contribute any "excess" cash flows from its debt mill levy to the repayment of RMD debt.
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| August 2022 |
The District board provides notice to its accountants (CliftonLarsonAllen, LP) and its general counsel (White, Bear Ankele, Tanaka & Waldron, PC) that the District is terminating their services effective as of the end of August. The District board hires Wolfersberger, LLC to provide accounting and management services to the Districts effective September 1st and hires Paul Rufien, PC to serve as the District's general counsel effective September 1st. This is the first time in the history of the District where the District's accountants and legal counsel do not have conflicts of interest representing both the District and the developer-controlled RMD.
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| September 2022 |
After its termination date, CliftonLarsonAllen accesses the District's bank accounts and wire transfers $2,588,661 to RMD (for which CliftonLarsonAllen continues to provide accounting and management services).
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| November 2022 |
The District and NRMD2 adopt 2023 budgets that reflect no funds to be remitted to RMD under the MLEPA. The Districts agree to enter into a cost-sharing arrangement where all public services and public facilities within the Reunion Community will be maintained by both Districts and funded from the public tax revenues collected by each district.
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| December 2022 |
RMD files a lawsuit in Adams County District Court demanding (1) all tax revenue to be collected by the District and NRMD2 in 2023 be remitted to RMD and (2) NRMD2 and the District comply with the terms of the 2016 MLEP Agreement.
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