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<br />Four Seasons Trout Farm
<br />March 21,22, 2002
<br />
<br />Agenda Item 11
<br />(Updated March 22, 2002)
<br />
<br />Selected Alternative 3 consists of replacing all earth fish rearing units with 5 concrete
<br />raceways that can be cleaned, The raceways segments are 8 feet wide and 60 feet long, with a
<br />total length of 300 feet. The raceways are constructed of 8-inch thick walls and floors of steel
<br />reinforced concrete, The raceways are in series, but can be isolated from each other and
<br />independentiy supplied with water, The raceway surfaces are smooth concrete that is easy to
<br />clean and which provides poor habitat for the whirling disease alternate host, T. tubifex, Surface
<br />drainage is directed away from the raceways,
<br />
<br />Source water protection consists of replacement of about 1,000 feet of existing pipe with 8"
<br />schedule 40 PVC along with the necessaryvaives to provide full control. Predator control
<br />consists of constructing a 16-foot wide by a-foot tall steel roofed structure over the new
<br />raceways, Wire mesh (2" by 4" openings) wiil be installed on the sides and ends of the structure
<br />to keep birds and other predators out.
<br />
<br />The implementation schedule calls for completion of financing arrangements and final
<br />engineering design in spring 2002, Construction will start in late spring 2002 and be completed
<br />by fall 2002, The FSTF has arranged for construction financing from the local bank, if needed,
<br />until the CWCB loan becomes available in summer 2002,
<br />
<br />Financial Analvsis
<br />The total estimated cost of the project is $ 97,945, and the water is used by a commercial fish
<br />hatchery to produce trout that are sold on the open market. HB 91-1270 defines this type of
<br />commercial operation as "Aquaculture" and further states that ",.. aquaculture shall be
<br />considered an agricultural enterprise.." Staff is recommending that CWCB agricultural rates be
<br />applied to loans for rehabilitation of commercial fish hatcheries, Further, because of the great
<br />importance of proper management in maintaining the facility free of whirling disease, staff is
<br />also recommending that this loan not exceed 10 years in duration. Staff is recommending a 10-
<br />year loan at 2,25%, in maximum amount of $85,500 (90% of estimated total project cost,
<br />excluding engineering,) Staff is recommending a CWCB grant of up to $1,435 to pay for half
<br />the cost of the engineering necessary to complete the feasibility study,
<br />
<br />Alternative financing sources: The FSTF actively sought alternative financing and was able
<br />to obtain a 6-month renewable loan from the Surface Creek Bank for construction financing, if
<br />needed, This loan would have a balloon payment and does not provide a permanent financing
<br />solution, .
<br />
<br />Table 2 is a summary of the financial aspects of the project. A CWCB loan of $85,500 would
<br />have an annual payment of $10,607 (including the 10% reserve requirement) at the loan terms
<br />of 2,25% for 10 years,
<br />
<br />a e . mancla ummary
<br />Proiect Cost $97,945
<br />Number of Owners 1
<br />Number of Shares of Stock N/A
<br />CWCB Loan Amount $85,500
<br />CWCB Loan Payment linciudes 10% reserve) $10,607
<br />
<br />T bl 2 F" . I S
<br />
<br />Credit worthiness: Last year the FSTF made the finai payment to West Star Bank on the
<br />mortgage to purchase the hatchery property, The annual payment on that loan was
<br />approximately $10,000 and payments were made as agreed, Table 3 shows the Financial
<br />Ratios for the FSTF and indicates one ratio each in the strong, average, and weak categories
<br />with the project in place, The ratio concerning acre-feet diverted does not apply since the use is
<br />non consumptive,
<br />
<br />3
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