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<br />.., ~ ~ <br /> <br />.' <br /> <br />~ <br /> <br />The applicants are requesting a Construction Fund loan of $3,125,000 at the present time. It <br />is expected that the loan proceeds would be required in late 1996 or early 1997. Future <br />funding requests may amount to $3,125,000 in each of the years 1997, 1998 and 1999 for a <br />total of as much as $12.5 million, The actual amount will again depend upon the outcome of <br />water rights acquisition activities. <br /> <br />Unit costs to the participants are expected to be in the range of $5,500 to $6,000 per acre-foot <br />of fIrm yield. <br /> <br />INSTITUTIONAL ARRANGEMENTS <br /> <br />The four applicants are in the process of forming a non-profit corporation, a ditch and <br />reservoir company, for purposes of contracting, allocating costs and project yield, and <br />administering the project. The ditch and reservoir company would take title to all water <br />rights, land, facilities and easements and would issue shares of stock to the participants based <br />on the amount of fIrm annual yield purchased by each entity. <br /> <br />It is proposed by the applicants that the ditch and reservoir company would contract with the <br />CWCB for the loan or loans and that the applicants would offer shares of stock as collateral. <br />At the present time, it is anticipated that ownership in the company would be as fo1l2ws: <br /> <br />Eagle County 10 % <br /> <br />Upper Eagle Regional Water Authority 26% <br /> <br />Vail Valley Consolidated Water District 24% <br /> <br />Vail Associates 40% <br /> <br />FINANCIAL CONSIDERATIONS <br /> <br />The applicants have provided the staff with a preliminary fmancial analysis which includes <br />estimates of debt service and operating costs for the project, cash flow projections for the <br />three public entities (the Authority, the County and the District) and an indication of fmancial <br />feasibility for these three entities. <br /> <br />Indications from this preliminary data are that the financial impact on the three public entities <br />would not be substantial. Eagle County would appear to have more than adequate tax <br />revenues already earmarked for this type of project and both the Authority and the District <br />would probably require relatively small water rate increases. <br /> <br />3 <br />