PROJ00432 App Letter

• Contract/PO #: C153738
• Contractor Name: Georgetown, Town of
• Contract Type: Loan
• Water District: 6
• County: Clear Creek
• Bill Number: SB 96-153
• Loan Projects - Doc Type: Feasibility Study

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STATE OF COLORADO

Colorado Water Conservation Board
Department of Natural Resources

721 Stale Centennial Building
1313 Sherman Street
Denver, Colorado &0203
Phooe [phone]
FAX [phone]

o

Roy Romer
Governor

MEMORANDUM

James S, Lochhead
Executive Director. DNR

(Updated February 2, 1996)

Daries C, Lile, P E.
Direaor, CWCB

TO: Colorado Water Conservation Board Members

FROM: John Van Sciver

DATE: January 5, 1996

SUBJECT: Agenda Item 10e., January 24-25, 1996, Board Meeting--
The Town of Georgetown
Approval of a ConstructiOIl Fund Loan in amount of $206,250 to Purchase
Water Rights.

BACKGROUND

The Town of Georgetown (located in Clear Creek County), submitted an application for a loan
to purchase water rights. They originally requested a loan in the amount of $250,000. However
the estimated total cost of the project is $Z75K, This includes purchasing the water rights,
developing an augmentation plan and getting the plan approved by the court, and professional
fees associated with this application. CWC)3 guidelines allow a loan of 75 % of the $275K total
cost, which is $206,250.

The CWCB discussed the request at the November 1995 meeting and was generally receptive
to offering a loan just for the purchase of wilter rights for municipal purposes (when there is no
construction project), but only under certain conditions, The CWCB directed that revisions to
the CWCB Construction Fund Guidelines be approved first, prior to recommending any loans
of this type. (The Guideline revisions are addressed under agenda item 9,)

The CWCB outlined the additional conditions under which it would consider recommending a
loan solely for the purchase of water rights or shares for municipal purposes, as follows:

a. The purchase must be for the purpose of resolving an existing water shortage, and

b, The water shares or rights purchllsed must already be generally traded and available
for municipal use, and

c. The purchase price must be supported by an appraisal.
The updated Board memo from the November meeting is attached, as well as the November 28,
1995 letter sent to the Town by Bill Stanton,