John Rosenberg: No, that’s great. I do appreciate that. And I think, yes, that was a very thoughtful move in terms of expanding your product range in Phase 2A. Additionally, just kind of a little bit of housekeeping. Your receivables from the CAB, I presume that’s going to be very lumpy over time as needed.
Mark Harding: It is. It is. It’s every a couple of 3-year cycles between the 2 as you start and you build up AV, each of these bonds have kind of 5-year call restrictions on that. They’re really 3-year plus premium calls in years 4 and 5. And as you do them, what happens is the AV, so the value of each of these homes continue to grow, and you have the same number of mills, so you increase your bonding capacity. So they are lumpy. I will say that our underwriters could not have been more complementary about our business model. And they took a look at it, and we were in a tough, tough market where not so much in terms of the interest rate market, but a lot of outflows from invested capital for municipal bonds. And so when you have all that money coming out and you have deals trying to hit the market, we were oversold 400% on our bond offering.
So it really is a validation of how we do it, the care with which we do, how we’re investing in this infrastructure. We’re maturing that we’re not over our skis on any component of the infrastructure or the delivery of lots and we have great partners in our homebuilders.
John Rosenberg: That’s great. And lastly, again, a bit more housekeeping, but I seem to recall from a prior conversation that when you do ultimately go to large commercial and perhaps I’m wrong, you’ll be eligible for other types of infrastructure reimbursement perhaps from the state? Or am I incorrect in that?
Mark Harding: You are correct. And the interesting thing about that is Colorado is what we call a sales tax incentive state. And so what we do is we weight the burden, the tax burden to the commercial base. So by a lot. I mean by 4x. So the same AV at the residential and commercial. If I take $1 million of AV at residential versus $1 million AV at commercial at the same mill rate, I get 4x the tax revenue on that. And so yes, it supercharges your ability to get back your reimbursables even to the point where we would no longer have reimbursables. We would be — we would have more bond capacity that would be able to fund — forward fund some of those public improvements.
John Rosenberg: And I take it then, if I’m hearing you correctly, that also means that would also imply to me that the cadence of reimbursement would be somewhat accelerated from where it is now, once you do start actual commercial development?
Mark Harding: Yes.
John Rosenberg: Great. Okay. Well, thanks again. Congratulations and keep at it.
Operator: Our next question is coming from Greg Zena, who is a shareholder.
Unidentified Analyst: Just have one quick question about the rental. Is the product when you’re building a home, let’s say, a single-family home in an area of $400,000, $500,000, is the product identical to the other homes that are — does it look the same? Does it have the same amenities inside the home?
Mark Harding: Yes. Typically, we do want to have it be consistent with what the other products are. They’re not exactly the same because every homebuilder were owned their particular home plan, but it will be the same composition. So you’re not going to see — if we’re in an area where we’ve got 2-story walkout basements, you’re going to find a 2-story walkout basement — if we’re in an area of lab on grade crawl space, you’re going to find the same home on that same block. So it won’t be out of character to the blocks and to the overall community.
