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• Board Meeting Date: 1/22/2008
• Description: CF Section - Loan Deferral Request - Bill Porter Reservoir - Reservoir Construction Project
• Board Meetings - Doc Type: Memo

On June 8, 2006, Bill Porter was tragically killed while operating a dozer to clear additional
ranch land for irrigation. Mr. Porter's ranch and construction expertise was an integral part of
the operation and success of the Alkali Ranch. Marla Porter and other family members have had
to re-evaluate their ranch operations to compensate for the loss of Bill Porter. Additionally,
there are a number of complex estate issues that need to be resolved to allow future ranch
operations to proceed and for Bill Porter's personal assets and debts to be assigned.

Discussion

The Board has the statutory authority under Section 37-60-120 (3), CRS, to make loan
defetments to an entity (borrower) provided that it has demonstrated that it has encountered
significant and unexpected financial difficulties, and that it has been duly diligent in its efforts to
comply with the repayment provisions of its contract with the Board.

Marla Porter over the past year has been working diligently with other family members to restore
effective operations of the ranch, reservoir, and irrigation system. Although the annual
payments have been made on time since January 2005, Marla Porter is currently experiencing
financial difficulty due to the settlement of Bill Porter's estate and its future plans. A deferment
in the amount of $42,157.18 for the principal portion of the annual payment in the amount of
$64,147.13 is requested along with the annual payment remaining the same over the term of the
loan.

Marla Porter has made the interest portion of the annual payment in the amount of $21,989.95
for January 2008 in good faith. By deferring the principal portion and not changing the payment
amount, the term of the loan extends an additional year. At an annual payment of $64,147.13,
the maturity date will be January 2025 instead of 2024.

Recommendation

Staff recommends that the Board approve the request to defer the principal portion of the January
2008 annual loan payment; to continue the January 2009 annual loan payment in the amount of
$64,147.13; and to allow the repayment term to extend one year providing maturity of the loan in
January 2025. The Promissory Note and respective amendment should be completed for Loan
Contract No. C150116 to reflect the revised conditions herein stated and approved.

This deferral is based on CWCB's finding that the Porter Estate and Marla Porter have
encountered significant hardship and unexpected financial difficulties, and that they have been
duly diligent in their efforts to comply with the repayment provisions of Bill Porter's loan
contract with CWCB.

cc: Dan Kerst, P.c., Attorney for the Porter Estate
Marla Porter, Alkali Creek Ranch
Amy Stengel, AGO
Steve Biondo, CWCB
Vaughn McWilliams, CWCB

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