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MOUNTAIN VILLAGE METRO DISTRICT (CO) $2.2 MILLION BONDS 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Nov. 17 /PRNewswire/ -- Mountain Village Metropolitan District, CO's $2.2 million General Obligation Bonds Series 1993 are rated 'BBB'. The bonds will be sold through negotiation by a syndicate led by Kirkpatrick Pettis on or about Nov. 23. The $21.6 million outstanding 'BBB' parity debt is affirmed. The credit trend is stable.
 The district's growth continues to be rapid and high quality. This history, along with the ongoing involvement of the same developers and its location on the opposite side of the ski mountain from the town of Telluride, makes it well positioned for future development. Recent developments, including the purchase and improvement of the former Doral Resort by new owners and plans for a gondola system expand the district's capacity for visitors and potential for both commercial and residential development. Financial operations have been satisfactory, benefitting from connection fees and last year's voter approval of a 10- mill tax levy for operations.
 These bonds were approved by voters earlier this month and are secured by the district's general obligation, unlimited tax pledge, according to bond counsel. Nonetheless, various legal questions remain unresolved regarding Colorado's Taxpayer's Bill of Rights Amendment (Amendment 1) and its implications for property tax rates. The district has made additional covenants to protect bondholders in the event of adverse legal decisions.
 Mountain Village Metropolitan District encompasses 2,072 acres, about 60 percent of which is restricted as open space, including part of the ski mountain, ski lifts, and a golf course. The area has been a popular tourist destination and second home area in recent years, and development has increased accordingly. Tourism activity in the summer months is nearly as active as during the winter with a variety of festivals as the focus. Recent development has added diversity to the district, with the original developer, the Telluride Company, representing a moderate 15 percent of the total tax base. The Telluride Mountain Village Resort, LP, the new owners of a luxury hotel and spa, are the second largest taxpayer at 7 percent. Nearly 90 percent of the developable acreage has been platted, and nearly 85 percent of the platted area has been sold.
 -0- 11/17/93
 /CONTACT: Amy S. Doppelt of Fitch, 212-908-0514/


CO: ST: Colorado IN: SU: RTG

TM -- NY117 -- 5769 11/17/93 18:19 EST
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Date:Nov 17, 1993
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