C153835A Approval Letter - Laserfiche WebLink

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... ~ ~ . STATE ceCOLORADO ~ ~ Colorado Water. Conservation Board Department of Natural Resources 721 Centennial Building 131 3 Sherman Street Denver, Colorado 80203 Phone: 0031 866,3441 FAX: 0031B66'4474 Roy Romer Covernol December 30, 1997 James S. Lochhead Executive Director, DNR O,'lrie.C. Lile, PE. Director, eWeB Mr, David Bernhardt, President The Greeley and Loveland Irrigation Co. 808 Twenty-Third Ave. Greeley, CO 80631 Re: Equalizer Dam Project Loan Dear Mr. Bernhardt: I am pleased to inform you that at the November 24,1997 meeting of the Colorado Water Conservation Board, the Board recommended a loan of $308,000, not to exceed 80 percent of actual project costs, to the Greeley and Loveland Irrigation Company for the rehabilitation of Equalizer Dam. The term of the loan is for up to 30 years and the lending rate is 4.21 percent. The Board's action on the $308,000 loan request will be included in the 1998 CWCB legislation and is subject to authorization by the General Assembly. If authorized by the General Assembly, the proceeds for this loan should be available in mid-1998, The Board's recommendation was made subject to the following conditions: 1.v1n the event that the percent of municipal water use in the Company's system should increase significantly during the term of the loan, the lending rate will be modified to reflect the revised percentage of municipal use. 2. vfinalloan approval will require acceptance of the project and the associated financial obligations by a vote of the shareholders of the Company. 3 v1n each year of the loan repayment period, the Company will submit copies of audited financial statements to the CWCB staff and in any year in which expenses, to include operating expenses plus debt service, exceed operating revenues, the Company will submit a letter of explanation to the Director of the CWCB outlining measures which the Company will take to assure that future expenditures will not exceed operating revenues. As security for the loan, it is expected that the Company will pledge revenues from assessments as well as water rights and/or land and improvements equivalent in value to the full amount of the loan.