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<br />I.. ::,'. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />Conclusion <br /> <br />Based on our review of the project feasibility study, the District's recent fiIiancial <br />statements, the draft Environmental Assessment, and extensive discussions with the staff <br />of the District and the District's consultant, staff believes that the proposed project is <br />economically, financially and technically feasible. Environmental issues, if any, are <br />expected to be resolved in the EA process with the USBR. <br /> <br />Other sources of funding are not readily available for this type of project. Collateral for <br />the loan will be provided by the annuity described above. <br /> <br />Recommendation <br /> <br />Staff recommends a Construction Fund loan of up to $7,260.000 for 30 years, not to <br />excee~ ;~.: ;~=cent of total project cos...., ....; :';J.~ 0010res Water Conservancy District and <br />the Dolores Water Conservancy District Water Activity Enterprise for the irrigation <br />component of the District's WETP ACK project as described in this memorandum. <br />Eligible expenses will include acquisition of necessary water supplies and the <br />construction of water supply infrastructure. <br /> <br />The lending rate will be the Agricultural lending rate as adopted by the Colorado Water <br />Conservation Board at the November 2000 Board meeting. Collateral for the loan Will be <br />a guaranteed, interest-bearing annuity as described in Condition No, 1, below, <br /> <br />Staff further recommends that the following conditions will be met prior to entering into <br />a loan contract with the Dolores Water Conservancy District for the WETPACK <br />irrigation project: <br /> <br />1, The District will provide CWCB staff with all requested docwnentation to <br />allow the staff to make a determination that a guaranteed annuity will be <br />established by the District in an amount sufficient to: (a) pay all of the <br />District's costs (not paid as of the date of the annuity) assocIated with the <br />project and (b) provide adequate funds for annual payments on the CWCB <br />loan for the entire period of debt retirement. <br /> <br />2. The District will have concluded an agreement with the :Vlontezuma Valley <br />Irrigation Company for the acquisition of a sufficient nwnber of shares of <br />stock in the company and for the acquisition of any facilities required to <br />provide an adequate water supply for the project. <br /> <br />5 <br /> <br />