C150185 Feasibility Study - Laserfiche WebLink

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Mancos Valley Beaver Ditch Loan Application 1/4/2006 3:19 PM orw Permitting All easements and rights of way have been secured. The Company expects to be exempt from 404 permitting by Statutory exemption, 33 CFR Section 323.4(a) 3. This will be confirmed with the Army Corps of Engineers. Institutional Considerations Entities that are, or may be, involved in the design, construction, and financing of the project include: • Mancos Valley Beaver Ditch Company; financing, construction and project management. • Natural Resources Conservation Service (NRCS); 75% cost share, design, construction supervision and inspection. • Colorado Water Conservation Board (CWCB); financing. 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 services to be provided. Financial Analysis The Company is applying for a short-term loan from the CWCB in amount of $904,750, 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 $226,178. Table 2. Sources of Funding Entity Grant Short -term Loan Long -term loan CWCB $0 $904,750 $226,178 Company $0 $0 $0 NRCS $ 678,562 $0 $0 Totals $ 678,562 $ 904,750 $226,178 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 $10,806.25. The Company will fund an emergency reserve account at the outset of the Project in the amount of $10,806.25. Table 3 is a summary of the financial aspects of the Project. Table 3. Financial Summary Project Cost — $904,750 Loan Amount (25% of Project Cost) $226,178 Page 9 of 16 pages