C150264 Feasibility Study

• Contract/PO #: C150264
• Contractor Name: Lower Latham Reservoir Company
• Contract Type: Loan
• Water District: 0
• County: Weld
• Loan Projects - Doc Type: Feasibility Study

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VillI. PERMITTING

No easements, rights of ways or other permits are required.

X. INSTITUTIONAL CONSIDERATIONS

Entities that are involved in the design, construction, and financing of the project include:
Lower Latham Reservoir Company; financing and project management.
Lower Latham Asset Management Company; project management.
Union Colony Bank; providing bridge loan financing for the project.
Colorado Water Conservation Board; financing.

The LLRC will be the lead for financing and project management. Lower Latham Asset
Management Company will also facilitate the financing by issuing assessments, if necessary. Union
Colony Bank is providing bridge loan financing of the project until the CWCB loan can be acquired.

XI. FINANCIAL ANALYSIS

To fund the purchase of the subject water rights, the LLRC obtained a line-of-credit bridge loan from
Union Colony Bank in an amount of up to $996,000. The draw on the loan for the subject water
rights and the LLRC shares from the Schmidt Farm is in the amount of $775,000. The maturity date
for the loan is January 19,2009. The interest rate the loan is equal to the Wall Street Journal Prime
Rate, which was 6.5 percent at the date of the note. The interest on the bridge loan is expected to
accrue at the rate of 6.5 percent until July 1, 2008. LLRC is requesting a CWCB loan in the amount
of $664,035 for the purchase of two shares of stock in the LLDC as outlined below:

$1,500
$8,500
$10,000
$711,817 .-
$16,000
$737,817
$664,035

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