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<br />Financia1 P1an <br /> <br />The total cost of the project is $392,758. $353,482 or 90% may <br />come from a loan with the Colorado Water Conservation Board, and <br />the remainder from the project sponsor, Mildred Rothe. The CWCB <br />Loan Application is found in Appendix C. Mildred Rothe has <br />sufficient cash assets to pay her portion of the project cost, <br />$39,276. Mildred Rothe has a significant amount of outstanding <br />debt but is still in good financial condition. <br /> <br />A $353,482 CWCB loan at 2.5% interest over a 30-year repayment <br />period would calculate to an annual payment of approximately <br />$18,500. The loan payment of $18,500 amounts to approximately <br />$3.85 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. Mildred Rothe's ability to make loan <br />payments will only improve over the period of the CWCB debt <br />retirement because as the loan payment remains the same GASP <br />assessments and the value of excess augmentation water will <br />continue to increase. <br /> <br />Co11atera1 <br /> <br />1. Mildred Rothe can offer as collateral, 640 acres of land (501 <br />irrigated) located in Section 8, T5N, R59W. <br /> <br />2. Mildred Rothe can offer as collateral, all of the project <br />facilities. <br /> <br />Institutiona1 Considerations <br /> <br />Mildred Rothe needs authorization to borrow $353,482 from the <br />CWCB Construction Fund. The loan, if approved, from the CWCB will <br />be contingent upon the successful negotiation of a contract <br />between the CWCB and Mildred Rothe. Agreements with contractors <br />will be finalized upon authorization of the CWCB loan. <br /> <br />Opinion of Feasibi1ity <br /> <br />The selected alternative is technically and financially feasible. <br />There are no known roadblocks, which would keep Mildred Rothe <br />from successfully completing this project. <br />Feasibility Study <br />Rothe Aug Project <br />July 2003 <br /> <br />8 <br />