Well, not all the Board exactly. There was absolutely no discussion. There wasn’t even a vote. Just an announcement by Waterman Monday night (January 13, 2020) that the Board was going to issue more bonds – to write Brookfield a new check for – somewhere between 0 and $31 million.
So, during which private meeting in violation of the blue sky laws did the board discuss this issue and vote on this issue and make this decision.
Waterman explained that they had decided it was “prudent” to refinance the $29 million in bonds (plus interest) we are paying now. The refinancing would reduce the annual payment for Brookfield’s profits from the current amount we pay of $2 + million each year.
The amount would be reduced, but of course the term of making the payments would start over – likely another 40 years.
Wonder if this was discussed in their private meeting in violation of the blue sky laws.
And, best of all, Waterman declared that “it was prudent” for us to then spend the money we will save by refinancing the old bonds . . . Wait for it . . . TO ISSUE NEW BONDS . . . To pay Brookfield even more profits.
That was really exciting news. Brings tears of joy to us all. I can think of nothing that makes me happier than going into debt again to pay bond fees, bond principal (paying for interest on the “loan” from Brookfield) and more bond interest (more than double the principal) so Waterman can write a single check to Brookfield for unaccounted for and unearned profits.
And during what private meeting in violation of the blue sky laws did they have this discussion, vote on this issue and make this decision.
And during this private meeting – and perhaps there was no private meeting – perhaps Waterman just decided that is what we are going to do – did anyone even consider whether or not we actually owe Brookfield any money. Apparently not.
When asked, the chairman of the finance committee said, yes they could probably look into that but deferred to Waterman.
Then several of the board members explained they were sort of doing that, relying upon Brookfield’s contractor to tell us what Brookfield spent – no conflict of interest there – and another special district engineer who does work for all the developers, including Brookfield – who will never get another job in this town if he is critical of Brookfield – no conflict of interest there either – and that they are “thinking about it.”
(Here is a prior blog exposing the lack of credibility for the Brookfield contractor the Solterra Board are relying upon for evidence of Brookfield’s “finances”:
Here is an excerpt about how the person the board is relying upon to “prove up” Brookfield’s costs just repackaged what Brookfield gave him:
From the taped interview with Brookfield’s contractor on November 27, 2017:
“2. Independent Construction/Finance Audit is a Waste of Time
Guy Ford also advocated strongly for Brookfield’s position (tape 33:50 – 36:00). After he and an associate explained that their 2014 study identifying what was spent on Solterra was largely based upon estimates and approximations, Guy Ford emphasiazed that it was a waste of time to do a detailed (read independent) construction/finance audit.
First, he explained, the cost of all the construction was so high that our bonding limit and maximum taxing capacity – all the money we have to spend on taxes – would never come close to paying for all the construction costs. (Where have we heard that before) (Tape 33:50 – 36:42; 47:13 – 47:22)
But that, of course assumes two things –
First that Brookfield’s statement of their cost is accurate. And there is no way to know that without an audit, especially after Guy Ford explained their report was an estimate of the costs based upon information from . . . Brookfield. And, again, why have they refused to come forward with a clear statement of what they paid for what work.
Second, it assumes that Brookfield never used any of the income from selling the lots, the lot fees and all the miscellaneous fees and charges to build Solterra. It is quite possible, if not likely, that we have already paid for Solterra once – that the money we paid for our lots, homes and hook up to the infrastructure actually paid for all the infrastructure in Solterra – plus a handsome profit to Brookfield – and that what our bonds are paying for are improvements outside Solterra. But again, we will never know without an independent construction/finance audit. And, again, why has Brookfield continued to refuse to come forward with a clear accounting for the income they received.
C. Here are several facts that Guy Ford provided:
- District 1 is currently building (and we are paying for) the following: Yale, South Bound Lanes on McIntyre, West Alameda and Pocket Park. (Tape 7:29)
- He explained that recently Lakewood told him to expand the scope of their work on McIntyre to build all the lanes (and we get the bill)(Tape 1:33:04 – 1:33:34)
- In their 2014 study to determine which costs were eligible to be paid by the residents to Brookfield, they estimated the costs, (Tape 50:48 – 52:40). They took the costs Brookfield gave them and assumed they were included as costs in their reports. (Tape 38:28, 42:48 – 43:45, 47:13 – 47:44, . . “
Fact is, this board will never conduct an independent forensic analysis of the income to Brookfield from selling lots (usually pays for infrastructure), income from other sources and where they spent the money and how much they spent on actual infrastructure.
This issue came up three years ago. Again two years ago. And the board is still singing the same song. Rely on Brookfield’s numbers – believe Brookfield and write a check.
The same Brookfield that stole our right to vote on future taxes and bonds. The same Brookfield that suppressed the public elections for 11 years. The same Brookfield that cancelled the elections for 11 years because no one wanted to run. The same Brookfield that issued bonds to pay itself $29 million with no accountability.
That is the opposite of prudent. That is a violation of each of the board member’s fiduciary duty to the residents. That is irresponsible.
The real reason they are going to put us into further debt is because they are afraid of Brookfield. From the beginning when they opposed the recall, through their campaign positions two years ago until now, they have consistently said they are afraid Brookfield will sue them. So they are writing a check, no questions asked, for somewhere between 0 and $31 million.
That is not prudent.
And keep in mind the board has a close relationship with Brookfield. Always have. Without any discussion or vote Waterman mentioned he would be meeting with Brookfield a day after the meeting. Of course he would.
Waterman was the first person Brookfield appointed to the Board in 2015. He was on the board when Brookfield’s employees voted to issue the last bond in December, 2016. His job was to manage the residents – keep them in line.
I know because the first time I met Waterman was at a meeting I was having with another resident – and he introduced himself to me – at that meeting – by explaining he was there “to monitor my conversation” with the other resident. He was there to monitor my conversation and report back to Brookfield. Which he did. And at the end of the meeting, he admonished me not to rock the boat. He was and still is working for Brookfield on this issue.
Brookfield loves Waterman. During the Mayor Paul meetings in the Spring of 2017, to try and get us to withdraw the recall, Brookfield’s attorney came right out and stated that he loved their appointees – including Waterman – wished he could “clone them.” His words.
And they did. After the recall, Waterman appointed like minded folks to the board. Cloned the initial appointees. They opposed the recall, won’t even talk about it. About 5% of the residents opposed the recall (many because Brookfield supporters said we would get sued). The board represents that 5%.
The board will never require a full, independent and complete accounting for the income and expenses of Brookfield. They are afraid.
And, some say, Brookfield is a private company and, as one surrogate speaker for the board argued, “they have a right to make as much money as they can get away with.”
No, they can’t. They were the government. As the district and district board, Brookfield is publicly accountable and cannot use the taxing power of the special district government to “make as much money as they can get away with”. If they want to create special districts and be a government, they have to follow the rules.
Brookfield can’t represent themselves and us at the same time. As we can see, they don’t care about good government. Brookfield only cares about making as much money as they can get away with. That is just how they operate – their DNA. Which is fine. As long as they don’t have the power to take away my vote and tax me. Which is precisely what Brookfield did.
And not only did Waterman declare at the meeting Monday night that they are going to write Brookfield another check with our money. They will never let you vote on the issue. Not as long as they are in power.
They stand quietly by while their surrogate spokespersons loudly shout on Next Door that the residents should never be able to vote on new taxes or bond debt. According to the board sanctioned spokespersons, you, the residents, will never understand and should not question the board. It is too complicated for you. They know what is best for you and your finances.
That is what Brookfield’s lawyer also told me three years ago when they were trying to push us to drop the recall. “We will not resign our employees from the board because your neighbors will never vote the right way and pay us another $30 million. Only our employees know what is best for the residents”. Right.
No. It is your constitutional right to vote on new taxes and bond debt. Colorado Constitution. Article X. Section 20. Brookfield stole that right in 2006. We have the right to vote on taxes and bond debt in Lakewood, Jeffco and the state. But not our most local government – special district – because the ballots passed by a vote of the 8 Brookfield employees in 2006 took that right away.
We will soon circulate a petition to get our right to vote back.
And we will also have an election in May and you can decide whether or not it is time to replace the Brookfield “clones” (Brookfield’s words, not mine) with residents who actually represent all the residents, not just the 5% who are afraid of Brookfield.
John Henderson