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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />9.2 Collateral <br /> <br />As security for the CWCB loan, Terrace Irrigation Company can pledge assessment <br />income and the project itself. <br /> <br />10.0 Economic Analysis <br /> <br />The economic benefit of the project is considerable. The estimated value ofthe::!: 10,350 <br />acres irrigated with water from Terrace Irrigation Company is $20,700,000 assuming a <br />value of $2,000 per acre. It is estimated that approximately 50% of the irrigation water <br />supply for this property is derived from the company and the value of the property would <br />lose 50% of its value if the water is lost. Therefore, the short term value of potential <br />damage to this property should the outlet structure not be repaired is estimated to <br />be$1O,350,000. With the project cost estimate of $205,000, the estimated project <br />cost/benefit ratio is $10,350,000/$205,000 or 50.49. <br /> <br />11.0 Social and Physical Impacts <br /> <br />The project will have no significant negative social impacts since it will assure the <br />conti.tlued operation of a currently existing irrigation system. The project will have little <br />physical impact once the construction is complete. The work will consist of repair or <br />replacement of existing structures and apparatuses. <br /> <br />12.0 Conclusions <br /> <br />1. The Terrace Irrigation Company is an incorporated entity in the State of Colorado <br />with the ability to enter into a contract with the CWCB for the purpose of <br />obtaining a Construction Fund Loan. <br />2. Terrace Irrigation Company owns the facility needing repair <br />3. The project would provide for the continued delivery of irrigation water to <br />shareholders. <br />4. Terrace Irrigation Company is eligible for a loan from the CWCB Small Projects <br />Loan Account because the project is necessary to permit continued beneficial use <br />of available water supplies, avoid unreasonable risk of injury or damage to human <br />health or well-being or to property or crops, and because the emergency condition <br />is not the result of negligence in the operation or maintenance of the <br />infrastructure. <br />5. The project is technically and financially feasible. <br /> <br />Terrace Irrigation Company <br />Outlet Works Feasibility Study <br />February 2004 <br /> <br />Page 10 of 10 <br />