FIDDLERS CANYON INFRASTRUCTURE FINANCING DISTRICT FIDDLERS CANYON ASSESSMENT AREA DESIGNATION RESOLUTION
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Resolutions
Notice Type(s)
Notice
Event Start Date & Time
October 22, 2024 11:30 AM
Description/Agenda
FIDDLERS CANYON INFRASTRUCTURE FINANCING DISTRICT
FIDDLERS CANYON ASSESSMENT AREA
DESIGNATION RESOLUTION
DATED AS OF OCTOBER 14, 2024
1
DESIGNATION RESOLUTION
WHEREAS, the Board of Trustees (the 'Board') of the Fiddlers Canyon Infrastructure
Financing District (the 'District'), adopted Resolution No. 2024-05 on October 14, 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 the Fiddlers Canyon 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 Public Infrastructure District Act, Title 17D, Chapter 4 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 assessments 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 'Fiddlers Canyon 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) that was
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 59-acre residential
development ('Development'). The District plans to levy the assessments to finance the
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Improvements within 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, landscaping, 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.
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 least 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 $15,211,522, of which $14,016,000 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 5.675% 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:
Section 7. As set forth in the Assessment Ordinance, the assessment methodology
may, under certain circumstances, be altered in the future.
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Improvements Assessment Assessment Method Assessment Per ERU
All above-described Improvements $14,016,000 ERU $39,142.09
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 Iron County and (ii) where applicable, file with the Iron County Recorder a notice
of proposed assessment.
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EXHIBIT A
ACKNOWLEDGMENT, WAIVER AND CONSENT AGREEMENT
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ACKNOWLEDGMENT, WAIVER AND CONSENT AGREEMENT
This Acknowledgment, Waiver and Consent Agreement (this 'Agreement') is entered into
October 22, 2024, by Fiddlers Canyon Hills LLC, a Utah limited liability company (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 the Fiddlers Canyon 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
$15,211,522, of which $14,016,000 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 'Fiddlers
Canyon 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:
(a) the Owner is the sole owner of the Subject Property identified as such in
Exhibit A attached hereto;
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(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 enforceability or the execution and delivery by the Owner
of this Agreement;
(e) the Owner has not made an assignment for the benefit of creditors, filed a
petition in bankruptcy, petitioned or applied to any tribunal for the appointment of a
custodian, receiver or any trustee or commenced any proceeding under any bankruptcy,
reorganization, arrangement, readjustment of debt, dissolution or liquidation law or statute
of any jurisdiction. The Owner has not indicated their consent to, or approval of, or failed
to object timely to, any petition in bankruptcy, application or proceeding or order for relief
or the appointment of a custodian, receiver or any trustee;
(f) the Owner is not in default under any resolution, agreement or indenture,
mortgage, lease, deed of trust, note or other instrument to which the Owner is subject, or
by which it or its properties are or may be bound, which would have a material adverse
effect on the development of the Subject Property;
(g) the Owner is in compliance and will comply in all material respects with all
provisions of applicable law relating to the development of the Subject Property, including
applying for all necessary permits;
(h) the Owner hereby consents in all respects to the Improvements and
assessment methodology as described in the Designation Resolution and Assessment
Ordinance, including as provided in the Act;
(i) the assessment bonds, together with funds and loans of the Owner, will be
sufficient to complete the Improvements in order to achieve finished lots as contemplated
in the Appraisal Report for the District, prepared by Colliers International Valuation and
Advisory Services, dated September 27, 2024;
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(j) the undersigned are authorized to execute and deliver this Agreement for
and on behalf of the Owner.
Section 2. Acknowledgment by the Owner. The Owner on behalf of itself, and its
successors in title and assigns, hereby acknowledges and certifies that:
(a) the undersigned, on behalf of the Owner, are duly qualified representatives
of the Owner with the power and authority to execute this Agreement for and on behalf of
the Owner and have heretofore consulted their own counsel prior to the execution and
delivery of this Agreement;
(b) the Owner has received a copy of the Designation Resolution, the
Assessment Ordinance and any other information necessary to execute this Agreement;
(c) the consents set forth in Section 3 herein will benefit the Owner by
expediting the assessment process and providing for the financing of the Improvements by
the issuance of assessment bonds;
(d) the Assessments constitute a legal, valid and binding lien on the Subject
Property;
(e) the Assessment Ordinance and the rights of the District thereunder with
respect to the enforcement of the lien of the Assessments and all other conditions therein;
(f) the Owner has provided the pertinent information supporting the estimated
cost of the Improvements, the allocation of Equivalent Residential Units ('ERUs) in the
Assessment Area, the property description and tax parcel identifications of the Subject
Property and the Assessment Area and the assessment list attached to the Assessment
Ordinance, and the District is relying on this Agreement in order to issue its assessment
bonds related to the Improvements;
(g) the levy of the Assessments on the Subject Property will not conflict with
or constitute a breach of or default under any agreement, mortgage, lien or other instrument
to which the Owner is a party or to which its property or assets are subject;
(h) the Owner further acknowledges and agrees that if for any reason the
Assessments are insufficient to complete the Improvements, the property owners within
the Assessment Area may be responsible for paying any pro-rata share of additional costs
required to complete the Improvements, including, but not limited to, an additional
assessment on their property without any ability to contest such assessment;
(i) the Owner, notwithstanding Section 11-42-206(3)(e) of the Act, has
provided the legal description and tax identification number of each parcel of property
within the Assessment Area and shall be responsible for any errors related to such
information;
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(j) the District cannot guaranty or predict the interest rates of the assessment
bonds related to the Assessment Area, which will have a direct impact on the amount of
the Assessments;
(k) each parcel of property (including subdivided parcels, if applicable) within
the Assessment Area shall initially have an allocation of ERUs;
(l) the amount of the Assessment on the Subject Property reflects an equitable
portion of the benefit the Subject Property will receive from the Improvements, but
nevertheless, the Owner hereby consents to such Assessment as provided in Section 11-
42-409(5) of the Act; and
(m) the Owner has received consents to the Assessment and issuance of the
assessment bonds described herein from all lienholders on the Subject Property whose
consent is required.
Section 3. Consent by Owner. The Owner, on behalf of itself, and its successors in
title and assigns, hereby consents to:
(a) the inclusion of the Subject Property in the Assessment Area and the
designation of the Assessment Area for the purpose of financing the cost of the
Improvements with assessments to be levied against properties within said Assessment
Area, including the Subject Property, all as described in the Designation Resolution, the
estimated costs of the Improvements, the method of assessment, and the Assessment
Ordinance;
(b) the District financing the acquisition, construction and installation of the
Improvements through the issuance of assessment bonds as provided in the Act;
(c) the allocation of Assessments as described in Exhibit A hereto and as further
described in the Assessment Ordinance, including the number of ERUs attributable to each
unit type;
(d) aggregation of all Assessments of all properties owned by the same owner
(including an affiliate of such owner) as a single unified assessment against all properties
owned by the same owner, as further described in the Assessment Ordinance;
(e) in accordance with Section 2(f) above the Owners were responsible for
providing the legal description and tax identification number of each parcel of property
within the Assessment Area, in the event of a shortfall described in Section 11-42-206(3)(e)
of the Act, the Owners consent and agree (i) to be held jointly and severally liable for and
(ii) to pay such shortfall on behalf of the District;
(f) all foreclosure remedies of the Subject Property in accordance with the Act
and the Assessment Ordinance;
(g) not suing or enjoining the levy, collection, or enforcement of the
Assessment levied pursuant to the Assessment Ordinance or in any manner attacking or
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questioning the legality of said Assessment levied within the Assessment Area pursuant to
the Assessment Ordinance; and
(h) the District imposing assessments to be paid in installments over a period
of not to exceed thirty (30) years from the effective date of an assessment resolution.
Section 4. Waiver. The Owner, on behalf of itself, and its successors in title and
assigns, hereby waives:
(a) any and all notice and hearing requirements set forth in the Act;
(b) its rights for contesting, protesting, or challenging the legality or validity of
the equitability or fairness of the Assessments, or the creation and establishing of the
Assessment Area, the adopting of the Assessment Ordinance or the levy and collection of
Assessments pursuant to the Assessment Ordinance, whether by notice to the District or by
judicial proceedings, or by any other means;
(c) the right to have appointed by the District a board of equalization and review
which would hear aggrieved property owners and recommend adjustments in assessments,
if deemed appropriate, the right to a hearing before a board of equalization and review and
the right to appeal from any determination of a board of equalization and review as
provided in the Act;
(d) the right to pay cash for its assessment during a cash prepayment period
which would otherwise extend for twenty-five (25) days after the adoption and publication
of the Assessment Ordinance as provided in the Act;
(e) any right to contest its assessment, including but not limited to the 30-day
contestability period provided in Section 11-42-106 of the Act;
(f) any right to contest that the Improvements qualify as a publicly owned
infrastructure, system or other facility 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 and the Owner further acknowledges that it has consulted with
counsel regarding the same; and
(g) any other procedures that the District may be required to follow in order to
designate an assessment area or to levy an assessment as described in the Designation
Resolution and the Assessment Ordinance.
Section 5. Amendment. The Owner hereby acknowledges that bond counsel will rely
on the representations, warranties, acknowledgments, consents, and agreements herein contained
in issuing opinions relating to the levy of the assessments and the issuance of assessment bonds
and consequently agrees that this Agreement may not be amended, modified, or changed without
the prior written consent of the District and such bond counsel.
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Notice of Special Accommodations (ADA)
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