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<br />Agenda Item 8a. March 20-21,2000 <br />DeWeese-Dye Ditch and Reservoir Co. <br /> <br />Page 2 <br /> <br />Discussion <br />The DeWeese Reservoir has a storage capacity of 4,120 acre-feet. The value of storage <br />ownership has been appraised at $1,000 per acre-foot (Appraisal by Peter D. Boddie, <br />HRS Water Consultants, dated August 30, 1999.) Storage ownership is as follows: <br /> <br />DeWeese Reservoir Storage Ownership <br /> <br />Owner Storage, acre-feet Value $ <br />DeWeese-Dye Ditch and Reservoir Co. 3,520 3,520,000 <br />Colorado Division of Wildlife 500 500,000 <br />Round Mountain Water and Sanitation District 100 100,000 <br />Totals 4,120 $4,120,000 <br /> <br />The DDRC also owns 160 acres of land northeast of the reservoir that is a part of the <br />1,040 acres pledged as collateral on the CWCB loan. (See attached map, parcel "A".) <br />This land is valued at approximately $3,000 per acre, for a total value of $480,000, When <br />this is added to the value of the storage the DDRC owns in the reservoir ($3,520,000), the <br />total value of collateral for the CWCB loan is $4 million. <br /> <br />Collateral value of reservoir storage: <br />Collateral_value of Parcel "A" (160 acres) <br />Total value of collateral for CWCB loan: <br /> <br />$3,520,000 <br />$ 480,000 <br />$4,000,000 <br /> <br />Principal balance ofCWCB loan C-153832 $ 585,000 <br /> <br />If the CWCB releases Parcel "A", as well as the interests owned by both the Division of <br />Wildlife and Round Mountain Water and Sanitation, the CWCB will still retain collateral <br />valued at$3,520,000 to cover the $585,000 loan amount. <br /> <br />Recommendation <br />Staff recommends that the Board approve partial release of collateral (and/or allow the <br />CWCB loan to be subordinated to these interests) on CWCB loan C-153832 as follows: <br /> <br />1. Parcel "A" described as the Wll2 NE1/4 and the Sll2 NWl/4 of Section 21, T 21 S, <br />R 72 W, 6th P.M. <br /> <br />2. 500 acre-feet of storage in the DeWeese reservoir owned by the Colorado Division of <br />Wildlife. <br /> <br />3. 100 acre-feet of storage in the DeWeese Reservoir owned by the Round Mountain <br />Water and Sanitation District. <br /> <br />Attachments: <br /> <br />Letter of request dated January 10,2000, DeWeese-Dye Ditch and reservoir Company. <br />Map showing parcel "A". <br /> <br />C:lwp51 Iproj-new\De Weesepartialrelease300memo Boardmem\82-MartJO <br />