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<br />Tilton Lateral Inc. <br />May 21-22, 2001 <br /> <br />Agenda Item 7a. <br />(Updated May 31, 2001) <br /> <br />Recommendation <br />Staff recommends that the CWCS find that Tilton Lateral Inc. is eligible for a loan from the <br />Small Project Loan Account. The lower portion of the lateral is in poor condition, leaks badly, and <br />needs rehabilitation. The lateral can not deliver the full water supply owned by the shareholders. <br />Delaying the project until summer or fall 2002 would jeopardize NRCS cost share funding and <br />would result in undue hardship on the borrower. <br /> <br />Staff recommends a Small Project Loan not to exceed $100,000 to the Tilton Lateral Inc. <br />(approximately 65% of total project costs) to rehabilitate the Tilton Lateral. The recommended <br />term of the loan is 30 years and the recommended lending rate is 3.5%. Security for the loan <br />will be a pledge of assessment revenues backed by assessment covenant and one payment in <br />a certificate of deposit account to be held by the State. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon all other standard <br />contracting provisions of the CWCS. <br /> <br />Action taken bv the CWCS Mav 21.2001 <br />The CWCS approved the Staff Recommendation. <br /> <br />cc: Melvin Thorson, President Tilton Lateral Inc., 2945 0 % Road, Grand Junction, CO 81504 <br />Linda Bassi, AGO <br /> <br />Attachment <br /> <br />C:\WP51 \Proj-New\TiltonLateraI501 memo; <br /> <br />L:\boardmem\May01\7a May01 Tilton <br /> <br />4 <br />