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<br />Social, Economic, and Physical Impacts <br /> <br />The project will have no significant social impacts. <br /> <br />Although the Guenzi's will be impacted with costs associated with <br />their portion of construction and loan repayment, the project <br />will have a long term positive economic impact by assuring a more <br />certain source of augmentation for the Guenzi farms. The Guenzi's <br />will also be able to reduce their assessments with LWU and may <br />have excess augmentation water available to lease for financial <br />compensation. <br /> <br />The project will have no significant physical impacts once <br />construction is complete. The wells will occupy a minimal amount <br />of space down close to the river and the pipe lines from each <br />well will be buried underground. The recharge ponds will occupy <br />ground currently used for nothing. This ground will have setting <br />water part of the year but will return to its current appearance <br />once the water percolates back into the ground. <br /> <br />Per.mittinq <br /> <br />All easements and rights of way are being arranged for. <br /> <br />The Guenzi's expects to be exempt from 404 permitting. This will <br />be confirmed with the Denver District, Army Corps of Engineers. <br /> <br />Financial Plan <br /> <br />The total cost of the project is $368,250. $331,425 or 90% may <br />come from a loan with the Colorado Water Conservation Board, and <br />the remainder from the project sponsors, the Guenzi's. The CWCB <br />Loan Application is found in Appendix C. <br /> <br />A $331,425 CWCB loan at 2.5% interest over a 30-year repayment <br />period would calculate to an annual payment of approximately <br />$17,420. The loan payment of $17,420 amounts to approximately <br />$8.70 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 />offset with savings from a reduction in LWU assessments and the <br />revenue generated from the lease of excess augmentation credits <br />from the project. The Guenzi's ability to make loan payments will <br />only improve over the period of the CWCB debt retirement because <br />as their loan payment remains the same LWU assessments and the <br />value of excess augmentation water will continue to increase. <br /> <br />Feasibility Study <br />Guenzi Aug Project <br />April 2004 <br /> <br />7 <br />