John Scarffe, Nederland. The Nederland Downtown Development Authority brought a financial investment policy to the Nederland Board of Trustees for approval during a regular on-line meeting at 7 p.m. on Tuesday, March 16, 2021. The Board of Trustees also tabled action on marijuana deliveries in town.

Financial Investment Policy

On October 1, 2020, the Nederland Downtown Development Authority (NDDA) Board approved Treasurer Ron Mitchell’s fund request to hire Financial Advisor Dana Edwards of Cornerstone Advisor, LLC, to develop an NDDA Investment Policy Statement (IPS). The NDDA board unanimously approved.

The Investment Policy creates cohesion and agreement in the investment of unencumbered TIF funds such as risk tolerance, time horizon and liquidity needs. The Investment Policy is a living document used as a guide and template for investment goals, parameters and money management decisions. 

On November 17, 2020, the Nederland Board of Trustees approved a loan from the Town’s Water Fund for $2,150 in TIF funds to hire Financial Advisor Dana Edwards to develop the NDDA Investment Policy. 

Edwards engaged NDDA Attorney Paul Benedetti in a review of the IPS to be sure the document is in compliance with the Colorado Statute. On March 10, 2021, the NDDA Board approved the final draft of the Investment Policy. The NDDA was seeking Board of Trustees approval of the Investment Policy.

NDDA Treasurer Ron Mitchell told the Trustees that on the advice of Town Administrator Karen Gerrity, the NDDA hired a consultant for the investment policy. 

Mayor Kristopher Larsen asked if the plan is to invest 80 percent, while holding 20 percent in cash reserves. Mitchell said those are the targets. They hope to earn 1-1/2 to 2 percent on investment return.

The bank where they bought the CD also set up a line of credit, and the NDDA can borrow against that, and they can use the entire amount. The plan is any major investment. “We are taking a very conservative stance here.”

Trustee Eric Coombs Esmail asked unencumbered funds. Mitchell said right now they have $750,000 including those that are committed but not encumbered. They would like the interest on the CD and have enough cash reserves to pay upcoming bills. They can cash in the CD if needed.

Coombs Esmail expressed concerns that this is a distraction from the projects the NDDA is working on instead of executing the projects. He added that it seems to be a lot of work instead of working on projects. NDDA Executive Director Hope Jordan said the Board has $450,000 committed toward 18 projects and are approving projects at every meeting. Mitchell said he is buying a bond for him as treasurer to protect him and the NDDA. He is not going to make any decisions until he talks to the Board. He will be pursuing municipal bonds and low risk investments.

Other Trustees were in favor of the investment policy, but Mayor Larsen brought up the ethical components such as investments for sustainability or anything they can hang their hat on, and the ethical nature that run counter to the town’s values. 

If the Board approves the policy, the NDDA is able to invest the funds. After much discussion, Mayor Larsen said that in general the Board seemed to be in agreement that they liked the policy, but the NDDA needs to develop an implementation procedure and two sets of eyes for backup. 

Mitchell said he will have two or three eyes on it with the Executive Director and NDDA chair. Larsen suggested doing this in two pieces. First approve the investment policy The Board voted to approve the financial investment policy with Coombs Esmail voting against it. 

The Board agreed to direct the NDDA to develop an implementation procedure and investment values in line with Nederland beliefs. 

Marijuana Delivery

Town Clerk Miranda Fisher introduced a discussion item for maintaining the status quo regarding marijuana delivery in Nederland. At the special Board of Trustees meeting on August 11, 2020, the Board unanimously approved an emergency ordinance imposing a temporary moratorium on the submission, acceptance, processing and approval of any license application for all retail and medical marijuana establishments, according to the memo. 

A Marijuana Ordinance Review Committee was formed to investigate, review and analyze potential new Town regulations. The regulations are designed to limit the concentration or number of marijuana businesses within the town. Previously, the Board passed an ordinance limiting the number of retail and medical marijuana stores to four locations. 

On March 2, 2021, the Board passed a resolution opting out of marijuana hospitality establishments and asked that the Marijuana Ordinance Review Committee reconvene to discuss whether the Town should opt in to allowing marijuana delivery within town, according to the memo. The committee met on March 10, 2021, and considered three options: opt in to allowing marijuana delivery; maintain the status quo and take no formal action of opting in or out at this time, because a local government must “opt-in” for marijuana delivery allowed in the jurisdiction; opt out and formally state through resolution that marijuana delivery is not permitted in Nederland. 

The committee weighed the pros and cons of allowing marijuana delivery and recommended that the Town maintain the status quo and take no formal action of opting in or out at this time. The committee agreed that it would be appropriate to revisit this March 2022.

Fisher said that businesses in town are not interested in delivery now. The Board did not see any problem with letting this ride and agreed to table this for a year. 

The next meeting of the Nederland Board of Trustees will be on Tuesday, April 6, at 7 p.m. For more information, go to https://nederlandco.civicweb.net/Portal/MeetingInformation. 

(Originally published in the April 1, 2021, edition of The Mountain-Ear.)