C150150 Market Report

• Contract/PO #: C150150
• Contractor Name: Lower Arkansas Water Management Association
• Contract Type: Loan
• Water District: 67
• County: Bent
• Loan Projects - Doc Type: Feasibility Study

.
.
.
.
i.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.

FLC-5, Page 2

AGRICULTURAL VALUE:

Water Rights:
Land:

1,856.00 shares @ $1,022.00
2,111.50 acres @ $500.00

=

$1,896,832
$1.055.750

=

Total Current Agricultural Value:

$2,952,582

POTENTIAL DEVELOPMENT VALUE:

Water Rights:
Land:

1,856.00 shares @ $2,089.00
2,111.50 acres @ $765.44

=

. . $3,877,184
$1.616.234

=

Development Value:

$5,493,418

CONSUMPTIVE USE
ANALYSIS:

According to Brown and Caldwell, the average consumptive use
of the Fort Lyon Canal Company stock is 1.22 acre-feet per
share. This would provide a total of 2,264.32 acre-feet of
consumptive use water for the 1,856 shares. This, in turn,
indicates a unit price of$3 ,278.70 per acre-foot of consumptive
use. Using the 1.0 acre-foot per share yield, the price per acre-
foot of consumptive use is $4,000.00.

CONSUMPTIVE USE
VALUES:

Fully Developed:

$5,774,016/2,264.32 =

$2,550

Agricultural:

$1,896,832/2,264.32 =

$ 838

Development:

$3,877,184/2,264.32 =

$1,712

COMMENTS:

No information was provided that showed how the total value of
the Option at $8,446,000 was determined. The prior break-
downs of Fully Developed Value, Agricultural Value, and
Development Value were based upon available information from
other sources and may or may not reflect the basis of establishing
the Total Option Price.

CONFIRMATION:

Copy of Option Contract

Page 47 of 66