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C150266 Feasibility Study
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C150266 Feasibility Study
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Last modified
3/27/2014 9:51:36 AM
Creation date
7/7/2008 11:14:09 AM
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Template:
Loan Projects
Contract/PO #
C150266
Contractor Name
Granby Ditch and Reservoir Company
Contract Type
Loan
Water District
40
County
Delta
Loan Projects - Doc Type
Feasibility Study
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<br />lending rate of 2.35%. At this rate the annual payments would be $9820.00 to this <br />would be added $982.00 for the first 10 years to fund the emergency reserve account <br />for a total annual cost of $10,802.00. Annual assessments will increase from $18.00 <br />per share to $33.50 per share. <br /> <br />Table #2 Financial Summary <br /> <br />Project Cost <br />Loan amount (75%) <br />CWCB loan payment & 10% reserve <br />Number of shareholders 81 <br />Number of shares 700 <br />Current assessments per share <br />Future assessments per share <br /> <br />$276,620.00 <br />$209,715.00 <br />$10,802.00 <br /> <br />$18.00 <br />$33.50 <br /> <br />Credit Worthiness <br /> <br />GDRC assess shareholder fees annually based on project needs for the coming year. <br />GDRC has no outstanding indebtedness. GDRC owns extensive water rights dating <br />from 1893 including both flow and storage decrees. See Appendix D. <br /> <br />Alternative Financing <br /> <br />GDRC has applied for a $15,000.00 grant from the CRWCD. The staff and grant <br />committee have recommended funding, the full board votes April 16, 2008. GDRC <br />intends to apply to the CRWCD large grant program in November 2008 <br /> <br />Collateral <br /> <br />As security for the CWCD loan GDRC can pledge assessment income, water rights <br />and the Granby #12 reservoir. <br /> <br />Economic Analysis <br /> <br />By rehabilitating the reservoir GDRC will regain 259 acre-feet of stored water. <br />Stored water is selling for $2800.00 to $3000.00 per acre-foot in the Surface Creek <br />Valley. The value of the project is $700,000.00 to $750,000.00 compared to the <br />estimated cost of $279,620.00. Although it is difficult to predict the future price of <br />water it is safe to assume that its value is increasing. <br /> <br />Social and Physical Impacts <br />
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