Laserfiche WebLink
<br />Colorado Water Conservation Board <br /> <br />Department of Natural Resources <br /> <br />721 Centennial Building <br />131 3 Sherman Street <br />Denver, Colorado 80203 <br />Phone: (303) 866-3441 <br />FAX: (303) 866-4474 <br /> <br />STATE OF COLORAJ)(J <br /> <br />. <br /> <br />August 20, 1998 <br /> <br />Roy Romer <br />Covernor <br /> <br />J~mes S_ Lochhe~d <br />Executive Director, DNR <br /> <br />D~ries C. Lile, f'E_ <br />Director, eWeB <br /> <br />Mrs. Joann F. Jordan, Secretary-Manager <br />Northern Colorado Water Association <br />P.O. Box 415 <br />Wellington, CO 80549 <br /> <br />RE: Purchase of wells <br />Loan Contracting Issues <br /> <br />Dear Mrs. Jordan: <br /> <br />House Bill 98-1189, signed by Governor Romer back on April 30, 1998, approved an authorization <br />in amount of $900,000 to the Northern Colorado Water Association for the "purchase afwells and <br />water rights," I regret to inform you that a problem has developed in that the authorization does <br />not expressly provide specific authority to loan on the land. We understand the land, valued at <br />about $440,000, was needed to protect the well heads and was a major part of the loan as approved <br />by the Board at its November 1997 meeting, However, our attorney is of the opinion that since the <br />land was not specifically included in the legislation, we really do not have the authority to loan <br />money for it. <br /> <br />My staff has identified several options to consider: <br /> <br />. Go back to the Legislature in 1999 to amend the purpose in the original authorization to include <br />the land as an eligible cost of the $900,000 loan, There is no guarantee that it would be <br />approved, and this would mean a I-year delay. <br /> <br />. Go back to the CWCB in September 1998 and try to revise the loan to cover 100% of the water <br />rights cost. That way we could loan perhaps up to $750,000 of the $900,000 authorization, <br />depending on the appraisal of the water rights. <br /> <br />. Use the loan to pay for up to about $460,000, or up to 75% of the actual costs of the wells and <br />water rights, You will have to find another source to buy the land. <br /> <br />In addition to the above issue, there are a number of other issues that are still unresolved. These <br />issues, identified in our letter of December 5, 1997 and in more recent discussions with John Van <br />Sciver, must be taken care of before a loan contract with the CWCB can be completed. Without a <br />contract in place, we will not be able to loan your organization any money, The following is an <br />updated summary list of what needs to be done, <br />