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<br />Agenda Item 17d. <br />November 24, 1997 <br />Page 3 <br /> <br />(Updated December 4,1997) <br /> <br />3. That loan approval shall be contingent upon an appraisal of the value of the water and <br />land to be acquired, and upon all standard contracting provisions of the CWCB, as <br />determined by the CWCB Director, and <br /> <br />4. That security for the loan shall be a collateral interest in the stream of income derived by <br />the Association from the sale of water, and a collateral interest in CBT shares of value <br />equal to the loan amount. <br /> <br />Action Taken by the CWCB November 24. 1997: <br /> <br />The CWCB approved the Staff Recommendation, with the added requirement that the <br />water rights be fully evaluated to determine the finn yield for municipal purposes. The <br />affect of transfer from agricultural to municipal use, and the augmentation plan to allow <br />winter use, must be fully described. This could be done as part of the appraisal <br />requirement, described in item 3. above. <br /> <br />The loan rate will be 4%. However, the CWCB required that the interest rate escalate to the <br />Commercial/Industrial rate of 5.75%, retroactive to the signature date on the contract, and <br />that all back interest be immediately due and payable, should the land be sold for <br />development. As an alternative, the NCW A may wish to place the land in a conservation <br />easement that precludes development. <br /> <br />The CWCB specified that the loan may also be funded from the Severance Tax Perpetual <br />Base Account. <br /> <br />Attachments <br />D:\mswordINCW A97 ,memo <br />