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<br />i <br /> <br />STATE OF COLORADO <br /> <br />Colorado Water Conservation Board <br /> <br />Department of Natura 1 Resources <br />1313 Sherman Street, Room 721 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3441 <br />FAX: (303) 866-4474 <br /> <br />~ <br /> <br />Bill Owens <br />Governor <br /> <br />MEMORANDUM <br /> <br />Greg E. Walcher <br />Executive Director <br /> <br />FROM: <br /> <br />Mike Serlet <br />Bill Green ~ ~ <br /> <br />Peter H. Evans <br />CWCB Director <br /> <br />TO: <br /> <br />Dan McAuliffe <br />Deputy Director <br /> <br />DATE: August 8, 2000 <br /> <br />SUBJECT: Model Land & Irrigation Company - Collateral for Emergency Loan <br /> <br />In my memo of May 15 to Peter Evans (copy attached), I recommended that we accept <br />2,627 acres of irrigated and non-irrigated land as collateral for the Emergency <br />Infrastructure Repair Account Loan of $335,000 to the Model Land & Irrigation <br />Company (Company). The recommendation was based on an appraisal (sent to us by <br />Trout & Raley, the attorneys for the Company) that indicated a total appraised value of <br />$867,550. The appraisal also indicated that as much as 758 acres might be irrigated. <br /> <br />A recent letter from Bob Trout to Linda Bassi indicates that only about 200 acres of the <br />land to be offered as collateral are actually irrigated. If we assume a value of $1 ,000 per <br />acre for the irrigated land and a negligible value for the dry land (which may be little <br />more than a tax liability for the Board in the event of foreclosure) then the value of the <br />collateral may amount to about $200,000 which is less than the principal amount of the <br />loan. <br /> <br />The Company has indicated, however, that it is willing to pledge all of its remaining <br />water rights as shown on the attached list which was prepared by Bob Trout and included <br />in the feasibility study for the dam rehabilitation project (Feasibilitv Report Black Hills <br />Reservoir Dam, URS Greiner Woodward Clyde, January 2000.) The feasibility study also <br />included a tabulation of water deliveries to the Company by the Purgatoire River Water <br />Conservancy District (PRWCD) from 1982 to 1998. (The water rights are administered <br />by the PRWCD under two contracts with the Company.) <br /> <br />The average annual delivery of water to the Model Ditch headgate on the Purgatoire <br />River from 1982 to 1998 was 12,248 acre-feet. The average runoff on the Purgatoire <br />River in this period was comparable to the long-term average. The report provides an <br />estimate of average annual consumptive use for these years ranging from 5,970 to 6,700 <br />acre-feet. <br />