Mountain Village Metro District, Colorado's tourism and timeshare rates "A"

Business Wire.

Fitch Ratings assigns an 'A-' rating to the Mountain Village Metropolitan District, Colorado (the district) $8.9 million general obligation (GO) bonds, series 2006A. The bonds will be sold through negotiation with Piper Jaffray & Co. and D.A. Davidson & Co. on or about August 2. Additionally, Fitch affirms the 'A-' rating on the district's $28.8 million in outstanding GO bonds. The Rating Outlook is Stable.

The district encompasses 2,072 acres near the town of Telluride and is coterminous with the town of Mountain Village. The town was established in 1995 to gain more control over land-use issues than the district was afforded by state law. The district's luxury second-home and tourism-based economy has exhibited strong development to date. Assessed value gains have been sizable, averaging 14.4% compounded annually from 2000 through 2006.

The tax base includes the ski area and related commercial holdings, a high-end resort and spa, timeshare units and condominiums, single-family and duplex homes, and commercial and retail business. Dependence on top 10 taxpayers increased in 2005 (to 19% from 13% in 2004) as a result of sizeable investments by two large taxpayers. Nearly all infrastructure is in place to support full build-out, which could bring population to about 8,000, up from about 1,650 currently. Residential property makes up about 51% of assessed value and commercial about 11%. The remainder is vacant land, mostly zoned for residential development.

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Fitch Rates Mountain Village Metro District, Colorado's $8.9MM GOs 'A-'

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