C150264 Contract

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

Project Summary -Lower Latham Reservoir Company -Contract No.
C150264
SECTION 1 -BORROWER INFORMATION
Name: Lower Latham Reservoir Company
Address: P.O. Box 398, Kersey, Colorado 80644
Contact: Doug Seely
Phone Number: [phone] Fax Number: [phone]
E-mail address: [e-mail]
Type of Entity: a Colorado nonprofit corporation
Section 2 -Project Description
A. Description of PROJECT: The BORROWER applied to the CWCB for a loan to be
used to acquire 2 shares of Lower Latham Ditch Company for the purpose of
providing augmentation water identified as the Well Augmentation Project -Phase
II, located in Weld County, hereinafter referred to as the PROJECT, at an estimated
total cost of $738,000.
B. Description of Feasibility Study: The CWCB has reviewed a feasibility study report
on the PROJECT entitled "Feasibility Study," dated May 2007, compiled by Douglas
Seely, P.C., which is incorporated herein by reference, and, based upon the
feasibility report, the CWCB determined the PROJECT to be technically and
financially feasible.
SECTION 3 - CWCB'S AUTHORITY
Severance Tax Trust Fund Perpetual Base Account: This loan is made pursuant to
the provisions of §§ 39-29-109(1)(a)(I), 37-60-119 and 37-60-120, C.R.S., which
authorize the CWCB to loan money for water projects from the CWCB Severance Tax
Trust Fund Perpetual Base Account for the benefit of the people of the state, provided
that the borrower assures repayment of that money.
Section 37-60-122(1)(b) C.R.S., authorizes the CWCB to make loans of up to
$10,000,000 from the CWCB's Construction Fund and the State Severance Tax Trust
Fund Perpetual Base Account Fund without prior approval from the General Assembly
SECTION 4 -BOARD APPROVAL
At its March 2008 meeting, the CWCB approved a loan from the Severance Tax Trust Fund
Perpetual Base Account to the BORROWER in an amount up to $670,640 for PROJECT costs,
not to exceed 90% of the cost of the PROJECT, with a loan origination fee of 1 % in
accordance with CWCB Policy No. 16, at an interest rate of 2.25% per annum for a
repayment term of 30 years.
SECTION 5 -SCHEDULE OF EXISTING DEBT
CWCB loan contract C150253 dated October 1, 2007 in the amount of $1,994,596, at 2.25%
per annum for 30 years. Borrower also has a bridge loan from First National Bank dated
January 2008 in the amount of $996,000 at a variable interest rate that is currently 6.5%.
Security for the bridge loan is Colorado-Big Thompson water shares which do not conflict with
Appendix 1 to Loan Contract C150264
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