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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 />Financial Plan <br /> <br />The total cost of the project is $202,000. $151,500 or 75% may <br />come from a loan with the Colorado Water Conservation Board, and <br />the remainder from the project sponsor, Stieb Brothers. The CWCB <br />Loan Application is found in Appendix D. Stieb Brothers have <br />sufficient cash assets to pay their portion of the project cost, <br />$50,500. Stieb Brothers Inc. is in strong financial condition as <br />shown in financial reports found in Appendix E. <br /> <br />A $151,500 CWCB loan at 2.5% interest over a 20-year repayment <br />period would calculate to an annual payment of approximately <br />$9,730. The loan payment of $9,730 amounts to approximately $1.62 <br />per acre foot of water diverted into recharge. Current market <br />value for augmentation water in that portion of the river is <br />approximately $20 per acre foot. The loan payment can be easily <br />offset with savings from a reduction in GASP assessments and the <br />revenue generated from the lease of excess augmentation credits <br />from the project. Stieb Brothers' ability to make loan payments <br />will only improve over the period of the CWCB debt retirement <br />because as their loan payment remains the same GASP assessments <br />and the value of excess augmentation water will continue to <br />increase. <br /> <br />Collateral <br /> <br />1. Stieb Brothers can offer as collateral, 220 acre center pivot <br />irrigated farm ground located in Section 26, T9N, R51W. <br /> <br />2. Stieb Brothers can offer as collateral, all of the project <br />facilities. <br /> <br />Institutional Considerations <br /> <br />Stieb Brothers Inc. needs authorization to borrow $151,500 from <br />the CWCB Construction Fund. The loan, if approved, from the CWCB <br />will be contingent upon the successful negotiation of a contract <br />between the CWCB and Stieb Brothers. Agreements with contractors <br />will be finalized upon authorization of the CWCB loan. <br /> <br />Opinion of Feas1bility <br /> <br />The selected alternative is technically and financially feasible. <br />There are no known roadblocks, which would keep Stieb Brothers <br />from successfully completing this project. <br /> <br />Feasibility Study <br />Stieb Brothers Inc. <br />Recharge Project <br />February 2003 <br /> <br />10 <br />