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<br />; <br /> <br />-r <br /> <br />; <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />The Board tabled the funding request at the November 1996 meeting until the applicants could <br />submit a feasibility study and financial information for Vail Associates and in order to allow the <br />staff additional time to prepare a response to the Board's questions regarding collateral for the <br />requested loan and the extent of the Board's participation in the financing of the proposed <br />project. <br /> <br />BOARD'S CONCERNS <br /> <br />The Board's concerns as expressed at the November 1996 meeting were, to the best of our <br />recollection: (1) the lack of a feasibility study, (2) the lack of any financial information for Vail <br />Associates, (3) whether alternate sources of financing had been explored by the applicants, (4) <br />the amount of financing requested by the applicants as a 'percent of total project costs and the <br />value of the collateral, and (5) similarities or differences of the proposed financial and <br />institutional arrangements for the Eagle Park Reservoir Co. as compared with the Clinton Ditch <br />and Reservoir Co. <br /> <br />(1) Feasibility Study <br /> <br />This month, the Eagle River Water & Sanitation District, the Upper Eagle Regional Water <br />Authority, and Vail Associates Inc. submitted a draft feasibility study prepared by Helton & <br />Williamsen of Englewood. The feasibility study, along with previous submittals by the <br />applicants over the last several months, generally provides adequate information for a <br />determination of the technical and economic feasibility of the project and with regard to the <br />financial capacity of the three public entities. The feasibility questions that we believe remain <br />unanswered involve the financial capacity of Vail Associates which will have an estimated 55 <br />percent ownership interest in the entire project. <br /> <br />(2) Vail Associates Financial Information <br /> <br />Also this month, Vail Associates submitted their consolidated balance sheets for 1995 and 1996, <br />consolidated statement of operations for 1996 (both without accompanying notes) and copies of <br />Vail Resorts Inc. (the parent company) consolidated financial statements for 1994 through 1996. <br />Staff review of the limited information provided concerning Vail Associates is summarized in <br />Table 1. The table indicates that total debt and equity are relatively in balance for 1995 and 1996. <br /> <br />Table 1. Financial Analysis for Vail Associates <br /> <br /> Stockholders Total Debt to <br />Year Eauitv Liabilities Eauitv Ratio Net Income <br />1996 $183,911,393 $217,494,895 0.54 $16,985,788 <br />1995 $210,037,894 $170,196,677 0.45 Not Provided <br /> <br />2 <br />