Laserfiche WebLink
<br />," <br /> <br />Shultz Farm, Inc <br />November 25-26, 2002 <br /> <br />Agenda Item 20j. <br />(Updated December 4, 2002) <br /> <br />agreed. Table 2 shows the Financial Ratios for the Shultz Farm Ranching Operation and <br />indicates three ratios in the average category and one in the weak category with the $400,000 <br />CWCS loan in place. <br /> <br />Table 2, Financial Ratios-Ranching Operation <br /> <br />Financial Ratio Without With <br /> The Droiect . The Droiect <br />Operating Ratio (revenue/expense) 136% 100% <br />weak: less than 100% (strong) (average) <br />average: 100% - 120% <br />stron';: nreater than 120% . <br />Debit Service Coverage Ratio 200% 106% <br />(revenues-expenses)/debt service (strong) (average) <br />weak: less than 100% <br />average: 100% - 125% <br />strona: areater than 125% <br />Cash Reserves to Current Expense 78% 50% <br />weak: less than 50% (average) (average) <br />average: 50% - 100% <br />strona: areater than 100% <br />Annual Cost per Acre-Foot (65/250 ac-f!) $5 $84 <br />weak: greater than $20 (strong) (weak) <br />average: $10 - $20 <br />stron";: less than $10 <br /> <br />As security for the loan Shultz Farm, Inc. will piedge 152 acres of irrigated farmland located in <br />the SE Y. of Section 16, T5N, R67W. This property has been valued at $500,000 by a Broker's <br />Market Analysis dated October 31, 2002. This collateral is in compliance with CWCB Loan <br />Policy #5 (Collateral). <br /> <br />Recommendation (Revised) <br />Staff recommends a loan from the Small Project Account not to exceed $400,000 to the Shultz <br />Farm, Inc. to cover UP to 90% of the cost to rehabilitate and enlarge the Hill Lake. The <br />recommended term of the loan is 30 years and the recommended lending rate is 2.75%. <br />Security for the loan will be collateral in accordance with CWCB loan policy #5 (152 acres of <br />irriaated farmland located in the SE y.; of Section 16. T5N. R67W.) The loan will be funded <br />from the Construction Fund. <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 November 26. 2002 <br />The CWCS approved the (Revised) Staff Recommendation above, with added language <br />clarifying the percentage of loan costs that may be covered by the loan, and the security for the <br />loan. <br /> <br />cc: Steve Shultz, President Shultz Farm, Inc., 21475 Weld Co Road 19, Milliken, CO 80543 <br />Linda Bassi, AGO <br /> <br />Attacl1ment <br /> <br />C:IWP51IProj-NewlShultz 1102 memo: L:lboardmemINov02\20j Nov 02 Shultz <br /> <br />3 <br />