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<br />Memorandum, NPIC Collateral <br />October 20, 1998 <br /> <br />Page 2 <br /> <br />Using an average assessed value of $3,000 per acre for vacant residential land, the 800 acres <br />that underlies the reservoirs has a value of$2,400, 000. This conservative estimate of value <br />exceeds the $2.2 million in CWCB loans to be secured. <br /> <br />On September 17, 1998 I spoke to Duane Aranci, Vice President ofthe North Poudre Irrigation <br />Company. Duane confirmed the value of the North Poudre Reservoirs #5 and #6, and said they <br />could be used as collateral for this loan. This same collateral is used for an existing loan with the <br />Company in amount of $1.7 million to rehabilitate these reservoirs. The above referenced loan is <br />for an amount of $500,000, so we would have 2 loans in total amount of $2.2 million secured by <br />a first interest in the North Poudre Reservoirs #5 and #6. <br /> <br />This project is #13 on our hot list with a "need money date" of 9/1/98. A copy of the hot list is <br />attached. <br /> <br />Jan Illian and Steve Cann need to know the collateral for this loan to proceed with the contract. <br />A copy of Jan's memo dated September 2, 1998 is attached. <br /> <br />I recommend you approve collateral as a security interest in the stream of income derived by the <br />Company from assessments, and a 100% interest in North Poudre Reservoirs number 5 and 6, <br />all appurtenant structures thereto and all lands upon which these reservoirs lie. <br /> <br />I am available to discuss this issue at any time, or at the next Section B staff meeting. The next <br />Section B meeting will be 9/29/98 at 3 p.m. in the CWCB conference room. <br /> <br />(--~~ <br />\ \~[[ ~ an Sciver . <br /> <br />~:\WP51 \Proj-New\CollateralNorth Poudre998 <br /> <br />(J{-," ./Edl C'I J)J..U I, I 8/// 5'1 PElYze E , <br />