LPPD000390

• Contract/PO #: C153715
• Contractor Name: Lower Arkansas Water Management Association
• Contract Type: Loan
• Water District: 67
• County: Prowers
• Bill Number: SB 96-124
• Loan Projects - Doc Type: Approval Letter

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Colorado Water conservtn Board
Department of Natural Resources
721 State Centennial Buildino
iS13 Shem1an Street C
Denver. Colorado 80203
Phone [phone]
FAX [phone]

STAIiPF coc-01iABo
.

Roy Romer
Govemor

MEMORANDUM

lames S. Lochhead
~veDiIeaor.DNR
Daries C.lile. P .E.
Direaor. cwes

TO: Colorado Water Conservation Board Members

FROM: Bill Green and Jan lIIian ~~~
DATE: May 13, 1996

'-

SUBJECT: REVISED Agenda Item 12.b., May 13-14, 1996 Board Meeting,
Arkansas River Basin Issues, Lower Arkansas Water Management
Association - Request for Substitution of Collateral on Construction
Fund Loan

DISCUSSION

The Lower Arkansas Water Management Association (LAWMA) originally
requested substitution of collateral on the sale of the South Ranch which consists
of approximately 1,300 acres. It appears, however, that negotiations with the
State of Colorado Department of Wildlife (DOW) are progressing faster than
anticipated. The LAWMA would like to include the sale of the North Ranch which
consists of approximately 3,300 acres in its request for substitution of collateral.
Attached is a copy of the letter from Amelia Whiting, attorney for LAWMA,
requesting the substitution of collateral for the sale of the North Ranch.

RECOMMENDA TION

Staff has not had the opportunity to review in detail the expanded request for
substitution of collateral. As a minimum, it is recommended that the following
conditions would be attached to the partial release of a deed of trust.

(1) All proceeds from the sale of the lands shall be placed in an interest-
bearing escrow account to serve as a portion of the collateral on
LAWMA's existing Construction Fund loan.

(2)

All interest earned in the escrow account shall be applied to the
repayment of LAWMA's existing Construction Fund loan.

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