We just received a copy of a letter from Brookfield to our elected Board – dated November 7, 2019.
This letter was not provided to the residents at any time. It was only disclosed earlier today by the Board attorneys in response to a CORA request.
(Why do we have to litigate (Residents paying the Board’s attorney money) just to obtain what are obviously important public documents from the Board. But that is another issue.)
That $10 million in bond debt that the Board wants you to spend your $500,000 per year savings on – it is just the beginning.
Here is what Brookfield demanded on November 7, 2019:
“I am writing on behalf of Solterra [Brookfield likes to call itself Solterra LLC – helps confuse the courts and the public] to request that the Fossil Ridge Metropolitan Districts include in their 2020 Budgets the issuance of General Obligation Bonds in amounts sufficient to reimburse to Solterra [Brookfield] the total amount of $41,870,000 towards the remaining amount owed to Solterra [Brookfield] under the Reimbursement to Developer Loan and Infrastructure Acquisition Agreement (the “2020 General Obligation Bonds”).
Brookfield wanted the Board to issue new bond debt – a check to Brookfield – a bill to us – for $41.87 million. And that is payment “towards” the “remaining amount”, whatever that is.
$10 million is just the beginning. And the problem of course from a legal standpoint as well as from a negotiation standpoint, once we pay $10 million we can’t later refuse to pay whatever they say they want.
Once we open that door it will never be shut. Now, now, is the last chance we have to say to Brookfield, no – not until we are satisfied beyond a reasonable doubt after an independent forensic financial audit (not a board “review”) that we owe any money and how much.
Here is the letter:
Letter Brookfield to Board 11-7-2019
And here is my proposed response:
Letter in Response to Brookfield Letter 11-7-2019
We need to obtain our right to vote back, obtain a forensic audit and then vote on whether or not to issue more bond debt – and this is going to take awhile. There is no rush.
Lets refinance our current bond debt and then take the steps necessary to responsibly evaluate whether or not we owe Brookfield any more money and if we do, whether or not to go into further bond debt or pay it another way.
John Henderson