C153833 Approval of Collateral - Laserfiche WebLink

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MEMORANDUM September 18, 1998 (Updated October 20, 1998) Cf2.tf TO: From: Subject: Peter Evans and Bill Stanton John Van Sciver Approval of Collateral Ref: North Poudre Irrigation Company Loan for system rehabilitation. $500,000 HB 98-1189 The purpose of this memo is to define and recommend the collateral to be used for the above loan. This project loan was approved by the CWCB November 25, 1997. The CWCB approved revisions to the loan January 28, 1997. A copy of each updated memo is attached. The Board approved collateral for this loan as "..a security interest in the stream of income derived by the Company from assessments, and other collateral to be determined, as approved by the CWCB Director." The Company owns North Poudre Reservoirs #5 and #6 and the land on which these reservoirs are located. These reservoirs have a value of approximately $4 million; based solely on the 800 acres that underlies the reservoirs, valued at $5000 per acre as development land. The value of the reservoirs is approximately $36 million, based on a replacement cost to construct of $2,000 per acre-feet of storage, and a combined capacity of 18,000 acre-feet. On October 16, 1998 I contacted the Larimer County Assessor's Office (970-498-7068) to confirm the value of the land. I spoke to Lisa who said valuation information was available by coming into the office and researching their database, or by ordering a $50 printout of county assessment information. She also said the County Clerk could provide information of recent sales. I called the Larimer County Clerk (970-498-7860) and spoke to Leann about sales data for the area around North Powder Reservoirs #5 and #6. She provided me with four recent sales (1996-1998) of parcels with houses located in T8N R68W and T9N R68W The average sale price was $170,000. Although she had no recent sales of vacant land to report, her information confirms residential use of property in this area. I can also confirm this, based on my personal visit to the site in 1997. I reviewed the 1997 Annual Report of the DLA Division of Property Taxation. Although agricultural land is valued at about $150 per acre, vacant residential land is valued for assessment purposes at about $3,000 per acre in Larimer County. From the Annual Report: Type of Land # of Parcels Total $ Value Avg. Acre/Parcel Price per Acre Agricultural- Irrigated $ 150 Vacant Residential 9386 $ 41,334,180 1.5 (assumed) $2,936 Vacant-under 1 acre 511 $ 1,741,150 O. 75 (assumed) $4,543 Vacant- 1 to 5 acres 531 $ 4,211,380 2.5 (assumed) $3,172 Single family home- Value 64,961 $175,972,870 1.0 (assumed) $2,709 of land only.