The Solterra Board (FRMD) is meeting tonight via zoom – 6:30 pm. We just received notice Monday, July 20.
Here is how to join:
Video and audio access via computer, tablet, or mobile device, click link: https://zoom.us/j/95156014192 Audio access via telephone: Dail – +1 669 900 9128 | enter meeting ID – 951 5601 4192 follow prompts If you access via telephone only, you will be asked to provide your name by the moderator
Here is the proposed agenda and packet:
R-1 FINAL – 7_22_2020 Regula Meeting Packet – FRMD 1-3_1
Here are the highlights:
A new fee schedule is proposed (packet p. 11)
We are still paying two management companies. CRS and Overlook (hold over 4 years now from Brookfield).
$12,000 to Overlook between May 28 and July 16
$51, ooo to CRS for the same time period
This year’s financial “audit” of the accounts by the CRS accountant shows the Solterra Board is still taking loans from the developer ($139,000). It is unclear what that was for. (Packet, p. 17).
The budget audit also shows a “long term” liability of over $75 million. Likely this is the total current bond debt (principal about $29 million – which includes as principal prior interest on the developer “loan” to the residents). If not, it is someone’s estimate of what Brookfield still believes it is owed. (Packet p. 16)
The budget audit shows District 1 is more than $3 million in the hole – apparently because they made an “adjustment” to the budget to pay “interest on developer advances” (loans from the developer to the board) in about the same amount as the $3 million more in expenses than revenue. (Packet p. 17)
The audited budget also states that we paid attorney fees of more than $179,000 for the year. Some of that money was spent secretly getting ready to sue our sewer company because Tom Morton of Big Sky asked our board to “pile on” to force our sewer company to go along with Big Sky – setting up Big Sky as the new private profiteering sanitation district for Rooney Valley.
The board will also talk about budget meetings for the budget to be adopted in December. Hopefully they will be more substantive than last year’s 3 meetings which were all orchestrated to try to get the townhome owners to wrongfully accept sole responsibility for snow removal on the district owned roads.
The following is important information folks should be aware of. The audit talks about how the residents are still beholden to Brookfield for up to $91 million, based upon two “agreements”.
These two agreements however, are single party agreements between the developer and himself who had an obvious conflict of interest with the residents. Contrary to the auditor’s suggested description of these agreements – they are unenforceable and should be challenged.
Here are the agreements: note the same person signed for both the developer and the district:
Solterra FRMD Agreement 2and3 to 1
Solterra Agreement Brookfield Repayment Dist 1
(This agreement is signed by Tom Morton who is also the lead director for Big Sky/CDN)
Here is the text from the audit (packet p. 31):
“Reimbursement of Developer Loan and Public Infrastructure Acquisition Agreement
On May 13, 2008, the District entered into a Reimbursement of Developer Loan and Public Infrastructure Acquisition Agreement with Brookfield Residential (Colorado), LLC formerly Carma (Colorado), Inc. (Developer or Brookfield).
The agreement provides for the advancement by the Developer of certain moneys for capital improvements and operating and maintenance costs for an amount not to exceed $91,000,000.
The agreement also provides for the repayment of these advances using bond proceeds.
The Districts are responsible for determining when bonds should be issued, based on numerous economic factors. [NOTE THIS SHOULD BE A VOTE OF ALL THE RESIDENTS UNDER THE COLORADO CONSTITUTION BUT BROOKFIELD TOOK THAT RIGHT AWAY IN 2006 AND THE CURRENT BOARD REFUSES TO RETURN THAT RIGHT TO VOTE ON FUTURE TAXES AND BOND DEBT TO THE RESIDENTS.]
The District No. 1 Board of Directors may, in its sole discretion, use other legally available funds to repay developer advances.
Advances shall bear interest at a rate of 6% per annum from the date of the advance.
The agreement also provides for the District to acquire any public improvements constructed by the Developer upon receipt of the proper engineer’s certificate as to district eligibility.
The repayment obligations by the District constitute a multiple fiscal year financial obligation and are not subject to annual appropriation; however, as discussed above, the repayment obligation is restricted to bond proceeds.”
You are encouraged to read all the “comments”.
Oh, and I almost forgot – we are paying for Brookfield’s “for sale” signs. (Packet p. 98). There is a good use of residents’ taxes and fees:
Residents Proposed Agenda:
Persuade the Solterra Board to place on the ballot the question of whether or not the right to vote on future taxes and bond debt should be restored.
Send a letter to Brookfield asserting the two agreements are not binding or enforceable as against the residents because the “agreements” were entered into by the developer with himself at a time when he had an obvious conflict of interest with the residents or future residents of the districts.
Persuade the Solterra Board to follow through with the efforts initiated three years ago (and arbitrarily stopped by the board) to retain a forensic financial firm to perform an independent forensic audit of the income and expenses related to the purchase of the land, the actual cost of the infrastructure and the money paid for the lots – to begin to determine what, if anything, is owed to Brookfield – and what credits are owed to the residents based upon excess income paid to Brookfield.
Hold the board accountable for taking loans from the developer and paying the developer interest ($3 million ?) for those loans.
Stop subsidizing Brookfield’s marketing on our property.
John Henderson