C150186 Feasibility Study - Laserfiche WebLink

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Permitting All easements, rights of way and access for construction (except for road crossing permits to be obtained at the time of construction) have been secured. Institutional Considerations Entities that are, or may be, involved in the design, construction, and financing of the project include: Lower Bauer West Lateral, Inc; financing and project management. Natural Resources Conservation Service (NRCS); financing, design, and construction. Colorado Water Conservation Board (CWCB); financing and construction, The Company will be the lead for the financing, design, and construction of the project and will be the entity entering into contracts and agreements for the necessary materials and services. Financial Analysis The Company is applying for a loan from the CWCB in the amount of $195,000, to cover total cost of all construction and materials. Upon final approval of the constructed Project by NRCS, NRCS will pay to the Company the 75% cost share, which will be used by Company to pay down the loan amount to approximately $48,750. Table 2. Sources of Funding Entity Grant Short-term Long-term Loan loan CWCB $195,000 $48,750 Company NRCS $146,250 Totals $146,250 $195,000 $48,750 The Company will cover any costs that exceed the NRCS estimated Project cost. The Company is requesting a 30-year loan from the CWCB. The standard agricultural lending rate would be 2.5%, resulting in annual payments of $2,329. The Company will fund a payment reserve account at the outset of the Project in the amount of $2,329 and increase the reserve account to $4,658 over 3 years. Since all other funding for the Project is in the form of grants, the Company would have no other debt service on this Project. The Company was incorporated in August of 2004 for the purpose of undertaking the Project. Therefore, the Company has no financial history. The Company has no existing debt. The owners of the outlet laterals spent an average of $300 per year on 8