C150185 Feasibility Study - Laserfiche WebLink

Home Browse Search

Mancos Valley Beaver Ditch Loan Application 1/4/2006 3:19 PM orw CWCB Loan Payment Amount $10,806.25 CFS of water to be carried on behalf of the Members 12.5 Avg Annual Commitment for repayment per cfs of water to be carried $864.50 Annual Project Cost per acre -foot (based upon 2493 acre -ft) $4.33 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 June of 2003 for the purpose of iundertaking the Project. Therefore, the Company has no financial history. The Company has no existing debt. The owners of the Ditch spent an average of $500 per year on maintenance costs in the recent past. Maintenance costs are expected to be about the same or less with the new pipeline, and can be accommodated by Company assessments to Members pursuant to the Bylaws. The Company checking account at the Mancos Valley Bank presently has a balance of $300 as a reserve for maintenance expenses Credit worthiness: The Company has no existing debt. The Company's ability to repay the loan is supported by the Funding Agreement. Loan Application: The Loan application to CWCB for the Project financing is contained in Appendix E. Alternative financing considerations: The Company has obtained approximately $678,562 in cost share (grant) from the NRCS to cover 75% of the construction' costs. Long -term financing for the Company's portion of the construction costs ($226,178) could not be attained elsewhere, and the cost could not be financed internally with a one -time assessment. Collateral: As security for the CWCB loan, the Company can pledge the Funding Agreement, the project structures, and a certificate of deposit equivalent to one annual payment. Economic Analysis The economic benefit of the project is considerable. The additional, water to be delivered to the Members after completion of the Project is estimated by the NRCS to be 50% greater than with the open Ditch. Regulation and measurement of water deliveries will be significantly improved. The Members will be in a better position to make improvements to on-farm water systems that can result in improved efficiencies and farm yields. The NRCS Plan identifies other environmental, social and economic benefits that will result from the Project. Physical Impacts The Project will assure improved operation of a currently existing irrigation system. The Project will change the appearance of the irrigation delivery system as portions of the Ditch will be buried and the surface will return to natural grasses and other native species. Some sections of the Ditch will be left intact to carry livestock water and manage runoffs from irrigated pastures and rain /snow. The new diversion structure will be in the same location and somewhat larger than the previous structure. Page 10 of 16 pages