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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 $460,000. $414,000 or 90% may <br />come from a loan with the Colorado Water Conservation Board, and <br />the remainder from the project sponsor, SLCC. The CWCB Loan <br />Application is found in Appendix B. SLCC has sufficient cash <br />assets to pay their portion of the project cost, $46,000. SLCC is <br />in strong financial condition as shown in financial reports found <br />in Appendix C. <br /> <br />A $414,000 CWCB loan at 2.5% interest over a 20-year repayment <br />period would calculate to an annual payment of approximately <br />$26,560. The loan payment of $26,560 amounts to approximately <br />-~ $4.09 per acre foot of water diverted into recharge. Current <br />market value for augmentation water in that portion of the river <br />is approximately $20 per acre foot. The loan payment can be <br />easily offset with savings from a reduction in GASP assessments <br />and the revenue generated from the lease of excess augmentation <br />credits from the project. SLCC's 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 />J <br /> <br />\U J2.v, lJ <br />lPd\'; Q <br /> <br />-'* -+ 4r()~c <br /> <br />~ '" "" \Ql ~ <br />C oS, f <br /> <br />Collateral <br /> <br />1. SLCC can offer as collateral, all potential revenues from the <br />recharge water credits generated from the project. <br /> <br />2. <br /> <br />t4~ <br />'? <br /> <br />SLCC can offer as collateral, all of the project facilities. <br /> <br />Institutional Considerations <br /> <br />SLCC needs authorization to borrow $414,000 from the CWCB <br />Construction Fund. The loan, if approved, from the CWCS will be <br />contingent upon the successful negotiation of a contract between <br />the CWCS and SLCC. Agreements with contractors will be finalized <br />upon authorization of the CWCS loan. <br /> <br />Opinion of Feasibility <br /> <br />The selected alternative is technically and financially feasible. <br />There are no known roadblocks which would keep SLCC from <br />successfully completing this project. <br /> <br />Feasibility Study <br />Stromberger Land & Cattle Co. <br />Recharge Project <br />October 2002 <br /> <br />10 <br />