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<br />G.M.S. Land and Cattle. LLC <br />January 22-23, 2003 <br /> <br />Agenda Item 199 <br />(Updated January 28, 2003) <br /> <br />Table 2. Financial Ratios Ranchina operation) <br />Financial Ratio Without With <br /> the nroiect The nroiect <br />Operating Ratio (revenue/expense) 209% 194% <br />weak: less than 100% (strong) (strong) <br />average: 100% - 120% <br />strano: oreaterthan 120% <br />Debit Service Coverage Ratio 306% 271% <br />(revenues-expenses)/debt service (strong) (strong) <br />weak: less than 100% <br />average: 100% -125% <br />strano: oreater than 125% <br />Cash Reserves to Current Expense 35% 33% <br />weak: less than 50% (weak) (weak) <br />average: 50% - 100% <br />strano: oreater than 100% <br />Annual Cost per Ac-Ft (150 / 279 ac-ft total) $33 $57 <br />weak: greater than $20 (weak) (weak) <br />average: $10 - $20 <br />strana: less than $10 <br /> <br />As security for the loan the GMSLCC will pledge the west y" of Section 18, T1 ON, R66W <br />containing approximately 320 acres of farm/ranch land. This property has an approximate dry- <br />land value of $975 per acre, based on a recent comparable sale (total value $312,000.) A <br />Certified General Appraiser will confirm the land value. This collateral is in compliance with <br />CWCS Loan Policy #5 (Collateral). <br /> <br />Recommendation <br />Staff recommends a CWCS Small Project Loan in maximum amount of $200,000 to the G,M,S. <br />Land and Cattle, LLC, to rehabilitate the Giffin #1 and #2 reservoirs, The recommended loan <br />terms are 30 years at 2,75%, or 20 years at ~ 2.5% at the borrower's option, Security for <br />the loan will be the west y" of Section 18, T10N, R66W containing approximately 320 acres of <br />farmland, with value confirmed by a Certified General Appraiser. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon all other standard <br />contracting provisions of the CWCS, including loan Policy #16 (Loan Service Charges). <br /> <br />Action taken bv the CWCS January 23. 2003 <br />The CWCS approved the Staff Recommendation with these provisions: 1) that the 20-year loan <br />rate be 2.5%; 2) that the value of the collateral be documented by a Certified General Appraiser <br />(per Loan Policy #5), and 3) that collateral include an easement for maintenance access and <br />storage of water for Giffin #2 Reservoir, within Section 7, T10N, R66W. <br /> <br />cc: Larry Seitz, G.M.S. Land and Cattle, LLC <br />Duane Smith, P,E. <br />Linda Bassi, AGO <br /> <br />Attachment <br /> <br />C:Proj-NewlGMS 0103 memo; <br /> <br />L:\boardmemlJanuary03\Agenda Item 1 gg Jan03\ GMS Land and Cattle <br /> <br />3 <br />