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<br />'r--~ <br /> <br />t . <br /> <br />STATE OF COLORADO <br /> <br />Colorado Water Conservation Board <br />Department of Natural Resources <br /> <br />721 State Centennial Building <br />1313 Shennan Street <br />Denver, Colorado 80203 <br />Phone (303) 866-3441 <br />FAJ( (303)8664474 <br /> <br />. <br /> <br />Roy Romer <br />Governor <br /> <br />James S. Lochhead <br />Executive Director, DNR <br /> <br />April 21, 1995 <br /> <br />Daries C. Lile, P.E. <br />Director, ewes <br /> <br />Mr. Dave Yamada <br />City Manager <br />P.O. BOX 100 <br />Fort Morgan, Colorado 80701 <br /> <br />Re: Loan Application for Participation in SWSP <br /> <br />Dear Mr. Yamada: <br /> <br />I am pleased to inform you that at the March 13th meeting of the Colorado Water <br />Conservation Board (CWCB), the Board found the City of Fort Morgan's participation in the <br />Southern Water Supply Project to be technically and financially feasible and gave final <br />approval to a Construction Fund loan in the amount of $5,500,000. The Board approved the <br />loan subject to the following conditions: <br /> <br />1. The lending terms are 4.0 percent interest for a repayment period of 40 years, <br /> <br />2. As security for the loan, the City will be asked to pledge: (a) water fund revenues, <br />(b) the City's interest in the Southern Water Supply Project pipeline from the Carter <br />Lake outlet to the eastern terminus of the Fort Lupton line, and (c) a sufficient number <br />of the City's Colorado-Big Thompson Project shares at an estimated value of $1,500 <br />per share to equal $5,500,000 in total value, <br /> <br />3. As the City's loan is paid down, a proportionate number of the City's Colorado-Big <br />Thomson Project shares held as security for the loan could be released by the Board to <br />the City, <br /> <br />4. The loan will be contingent upon all standard contracting provisions of the <br />CWCB, and <br /> <br />5. The Board strongly urges the City to hold an election, binding or otherwise, <br />before incurring significant additional indebtedness for the proposed water <br />supply project to assess the extent of public support for the project. <br />