DESIGNATION RESOLUTION FOR SKYRIDGE PEGASUS INFRASTRUCTURE FINANCING DISTRICT
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Resolutions
Notice Type(s)
Notice
Event Start Date & Time
August 30, 2024 05:10 PM
Description/Agenda
SKYRIDGE PEGASUS INFRASTRUCTURE FINANCING DISTRICT
SKYRIDGE PEGASUS ASSESSMENT AREA
DESIGNATION RESOLUTION
DATED AS OF AUGUST 30, 2024
1
DESIGNATION RESOLUTION
WHEREAS, the Board of Trustees (the 'Board') of SkyRidge Pegasus Infrastructure
Financing District (the 'District'), adopted Resolution No. 2024-06 on August 30, 2024, pursuant
to which the Board authorized and approved the form of this Designation Resolution; and
BE IT RESOLVED by the Board of Trustees of SkyRidge Pegasus Infrastructure
Financing District, as follows:
Section 1. The Board hereby determines that it will be in the best interest of the District
to designate an area to finance the costs of publicly owned infrastructure, facilities or systems more
specifically described in Section 4 herein, along with other necessary miscellaneous
improvements, and to complete said improvements in a proper and workmanlike manner
(collectively, the 'Improvements'). The Board hereby determines that it is in the best interest of
the District to levy assessments against properties benefited by the Improvements to finance the
costs of said Improvements. The Board hereby finds that pursuant to the Act, the Improvements
constitute a publicly owned infrastructure, facility or system that (i) the District is authorized to
provide or (ii) is necessary or convenient to enable the District to provide a service that the District
is authorized to provide.
Section 2. Pursuant to the Assessment Area Act, Title 11, Chapter 42, Utah Code
Annotated 1953, as amended and the Special District Act, Title 17B, including Chapter 2a, Part
13 of the Utah Code (together, the 'Act'), the owners (the 'Owners') of all properties to be
assessed within the designated assessment area have voluntarily waived, among other things, all
notice and hearing requirements, the right to contest or protest, and the right to have a board of
equalization appointed as set forth in the Act, and have consented to (a) the levy of an assessment
against their property for the benefits to be received from the Improvements, (b) the designation
of the assessment area as herein described, (c) the financing of the Improvements by the District
through the issuance of assessment bonds, including the payment of installments over a period of
not to exceed 30 years, (d) the acquisition and/or construction of the Improvements, and (e) the
method and estimated amount of assessment as set forth herein in accordance with the
Acknowledgment, Waiver and Consent Agreement attached hereto as Exhibit A. The properties
to be assessed are identified by legal description in Exhibit B attached hereto.
Section 3. The District hereby designates an assessment area which shall be known as
the 'SkyRidge Pegasus Assessment Area' (the 'Assessment Area'). A map and depiction of the
Assessment Area is attached hereto as Exhibit C. The District received an appraisal of the
unimproved property (from an appraiser who is a member of the Appraisal Institute) and addressed
to the District verifying that the market value of the property, after completion of the
Improvements, is at least three times the amount of the assessments proposed to be levied against
the unimproved property.
Section 4. The Improvements shall be generally located in and around the map and
depiction area attached hereto as Exhibit C. The District plans to finance the costs of publicly
owned infrastructure, facilities or systems as part of an approximately 93-acre residential
development (the 'SkyRidge Pegasus Development'). The District plans to levy the assessments
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4871-3598-1520, v. 3
to finance the Improvements within the SkyRidge Pegasus Development. The Improvements are
more particularly described as follows:
-Sewer improvements, including, but not limited to, mains, lift stations, manholes
and manhole linings, sewer cleanouts, and laterals (various sizes).
-Water improvements, including but not limited to, mains, valves, tees/crosses,
bends, thrust bonds, fire hydrants, blow offs and appurtenances (various sizes).
-Roads and roadway improvements including, but not limited to, rights of way,
earthwork, curbs, gutters, sidewalks, street signage, centerline monuments, conduit
crossings, street striping, streetlights and mailboxes.
-Storm drain improvements, including but, but not limited to, storm drain pipes,
catch basins, junction boxes, inlets, culverts, cleanouts, trash racks, rip-rap and geotextile
fabric.
-Public amenities, including, but not limited to, trails and parking improvements.
As further engineering, costs, efficiencies, or any other issues present themselves, the
District hereby reserves the right to approve reasonable changes to the allocation of expenditures
described above and the location and specifications of the Improvements (but not to the
Improvements) without obtaining the consent of the property owners within the Assessment Area.
Section 5. Pursuant to the Act, the Board has determined to levy assessments to pay
the cost of the Improvements. The assessments are assessed against properties in a manner that
reflects an equitable portion of the benefit of the Improvements as required by the Act (and in any
event the Owners have consented to such manner without reservation) and shall be payable in
annual installments as set forth in the Assessment Ordinance. The District has determined that the
reasonable useful life of the Improvements is at thirty (30) years and that it is in the District and
the Owners' best interest for certain property owner installments to be paid for over up to thirty
(30) years.
Section 6. The total acquisition and/or construction cost of the Improvements,
including estimated overhead costs, administrative costs, costs of funding reserves, and debt
issuance costs, is estimated at $39,500,000, of which $37,505,000 is anticipated to be paid by
assessments to be levied against the properties within the Assessment Area to be benefited by such
Improvements, which benefits need not actually increase the fair market value of the properties to
be assessed. The District expects to finance the cost of the Improvements by issuing assessment
bonds (the 'Bonds'). The District currently estimates selling the Bonds at a true interest cost
interest rate of approximately 5.4744% per annum, maturing within thirty (30) years of their date
of issuance. Inasmuch as bonds have not been issued, the District notes that the interest rate and
annual payment are only as estimated and not a cap or maximum amount. It is anticipated that the
reserve fund will be initially funded with proceeds of the Bonds. The estimated cost of
Improvements to be assessed against the benefited properties within the Assessment Area are to
be initially assessed using an equivalent residential unit ('ERU') as follows:
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4871-3598-1520, v. 3
Section 7. As set forth in the Assessment Ordinance, the assessment methodology
may, under certain circumstances, be altered in the future.
Improvements Assessment Assessment Method Assessment Per ERU
All above-described Improvements $37,505,000 ERU $468,812.50
Section 8. The Board intends to levy assessments as provided in the Act on all parcels
and lots of real property within the Assessment Area to be benefited by the Improvements, and the
Owners of which have executed the Acknowledgment, Waiver and Consent Agreement described
in Section 2 herein. The purpose of the assessment and levy is to finance the cost of the
Improvements, which the District will not assume or pay. The existing planning and zoning
conditions of the District shall govern the development in the Assessment Area.
The Owners have waived the right to prepay the assessment without interest within twentyfive
(25) days after the ordinance levying the assessments becomes effective. A property owner
may prepay the assessment as provided in the Assessment Ordinance. The assessments shall be
levied against properties in a manner that reflects an equitable portion of the benefit of the
Improvements as required by the Act, and in any case, the Owners have consented to such
methodology as provided in Section 11-42-409(5) of the Act. Other payment provisions and
enforcement remedies shall be in accordance with the Act.
A map of the Assessment Area and the location of the Improvements and other related
information are on file in the office of the Secretary/Clerk who will make such information
available to all interested persons.
Section 9. The District will collect the Assessments by directly billing each property
owner rather than inclusion on a property tax notice.
Section 10. A professional engineer has prepared a 'Certificate of Project Engineer,'
attached hereto as Exhibit D, which, among other things, identifies the Improvements to be
constructed and installed and is available upon request from the District. The findings and
determinations set forth in this Resolution are based, in part, upon said Certificate of Project
Engineer.
Section 11. The provisions of the Assessment Ordinance shall govern the levy, payment
and applicable provisions regarding the assessments notwithstanding anything contained herein to
the contrary. As required by Section 11-42-206(3) of the Act, within 15 days of the completion of
this Resolution, the Secretary/Clerk shall (i) record an original or certified copy of this designation
resolution with Summit County and (ii) where applicable, file with the Summit County Recorder
a notice of proposed assessment.
4871-3598-1520, v. 3 A-1
EXHIBIT A
ACKNOWLEDGMENT, WAIVER AND CONSENT AGREEMENT
4866-3391-0224, v. 3
ACKNOWLEDGMENT, WAIVER AND CONSENT AGREEMENT
This Acknowledgment, Waiver and Consent Agreement (this 'Agreement') is
entered into August 30, 2024, by Pegasus Development Company, Inc., a Utah corporation
(the 'Owner').
R E C I T A L S:
1. As of the date hereof, the Owner owns the real property described in Exhibit
A attached hereto (the 'Subject Property'), which constitutes a portion of the property to
be assessed within the Assessment Area described herein.
2. The Owner desires that SkyRidge Pegasus Infrastructure Financing District
(the 'District') designate an assessment area pursuant to the Assessment Area Act, Title
11, Chapter 42, Utah Code Annotated 1953, as amended (the 'Act'), for purposes of
constructing publicly owned infrastructure, facilities or systems along with other necessary
miscellaneous improvements (the 'Improvements'), as more fully described in the
Assessment Ordinance (defined herein).
3. Estimated costs for the Improvements, including estimated overhead costs,
administrative costs, costs of funding reserves, and debt issuance costs, is estimated at
$39,500,000, of which $37,505,000 shall be assessed against the properties benefited
within the Assessment Area. The Owner anticipates using other funding to complete the
remainder of the Improvements. If the Assessments and additional funding are not
sufficient to complete the Improvements, the Owner hereby agrees to pay to complete the
Improvements, including, but not limited to, an additional assessment on the Owner's
property without any ability to contest such assessment.
4. Pursuant to the Act, the Board of Trustees of the District (the 'Board') has
or is expected to approve (i) a Designation Resolution, a copy of which is attached hereto
as Exhibit B (the 'Designation Resolution') designating an assessment area to be known
as the 'SkyRidge Pegasus Assessment Area' (the 'Assessment Area') and (ii) an
Assessment Ordinance for the Assessment Area (the 'Assessment Ordinance'), a copy of
which is attached hereto as Exhibit C, which, among other things, contemplates the
reallocation and adjustment of the Assessments by the District among subdivided parcels
within the Assessment Area.
5. The Owner and the District desire to include the Subject Property in the
Assessment Area and to expedite such process by waiving certain statutory procedures as
permitted by the Act for the purpose of accelerating the financing of the Improvements.
NOW, THEREFORE, in consideration of the premises stated herein, the inclusion
of the Subject Property in the Assessment Area, the acquisition, construction and
installation of the Improvements and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Owner hereby agrees as follows:
Section 1. Representations and Warranties of the Owner. The Owner hereby
represents and warrants that:
4866-3391-0224, v. 3 2
(a) the Owner is the sole owner of the Subject Property identified as
such in Exhibit A attached hereto;
(b) the Owner has taken all action necessary to execute and deliver this
Agreement;
(c) the execution and delivery of this Agreement by the Owner does not
conflict with, violate, or constitute on the part of the Owner a breach or violation
of any of the terms and provisions of, or constitute a default under (i) any existing
constitution, law, or administrative rule or regulation, decree, order, or judgment;
(ii) any corporate restriction or any bond, debenture, note, mortgage, indenture,
agreement, or other instrument to which the Owner is a party or by which the Owner
is or may be bound or to which any of the property or assets of the Owner is or may
be subject; or (iii) the creation and governing instruments of the Owner, if
applicable;
(d) there is no action, suit, proceeding, inquiry, or investigation at law
or in equity by or before any court or public board or body and to which the Owner
is a party, or threatened against the Owner (i) seeking to restrain or enjoin the levy
or collection of the Assessments, (ii) contesting or affecting the establishment or
existence, of the Owner or any of its officers or employees, its assets, property or
conditions, financial or otherwise, or contesting or affecting any of the powers of
the Owner, including its power to develop the Subject Property, or (iii) wherein an
unfavorable decision, ruling, or finding would adversely affect the validity or
Notice of Special Accommodations (ADA)
The District complies with the Americans with Disabilities Act by providing accommodations and auxiliary communicative aids and services for all those in need of assistance. Persons requesting these accommodations for public meetings should call Jennifer Gowans at 435-628-3688 at least 24 hours before the meeting.
Notice of Electronic or Telephone Participation
Unless otherwise noted on the posted Agenda, meetings of the Board of Trustees will be held in person. For meetings held via videoconferencing or telephonic communication Trustees and other meeting participants and attendees will be able to participate remotely. Persons requesting video conference or telephonic accommodation for public meetings should call Jennifer Gowans at 435-628-3688 to make arrangements.