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The Subdistrict would repay the $20 million loan through the collection of an annual mill levy <br />on all property in the Subdistrict. Average cost per 160-acre farm would be approximately $600 <br />per year. A total of 3,666 acre-feet of senior water rights would be obtained at a cost of <br />approximately $3,000/acre-foot. We would obtain 4,400 acre-feet of storage space in lined <br />gravel pits at a cost of $2,500/acre-foot. <br />Collateral for the $20 million loan would be in the form of the water rights purchased and the <br />water storage projects developed. Senior water rights would need to be changed in Water Court <br />from agriculture to augmentation. This process normally takes 2-3 years. <br />Implementation Schedule <br />The Board of Directors of the Subdistrict have voted to pursue borrowing $20 million as soon as <br />possible. Staff is currently seeking senior water rights for sale, and has numerous offers being <br />investigated. <br />Alternative Financin�Considerations <br />The Subdistrict Staff has met with representatives of Union Colony Bank, the Federal Land <br />Bank, CoBank, and bonding agencies to investigate other loan sources. The Subdistrict has <br />already established an Enterprise Fund, but our current revenues from annual assessments would <br />limit our total loan amount to less than $1 million. <br />Permittin� <br />No easements, rights-of-ways, or other permits are required for the purchase of the senior water <br />rights. <br />Schedule <br />We are currently investigating potential lined gravel pits in the area, and could acquire <br />approximately $10 million of lined space within 6-12 months after funds become available. In <br />addition, numerous senior water rights have been offered to Central, and could be purchased <br />within 3-6 months after funds are available. It would be expected that all funds would be used <br />within 12 months of availability. <br />The specific lined gravel pit sites are: <br />Shores Gravel Pit storage near Longmont $8,000,000 <br />Heit Gravel Pit storage — Ft. Lupton $2,000,000 <br />TOTAL $10,000,000 <br />The cost of lined gravel pit space will be $2,500/acre-foot. This cost is for a perpetual easement <br />for water storage, and also pays for the sluYry bentonite lining around the perimeter of the gravel <br />pit. It also provides perpetual easements for pumping plants and inlet and outlet facilities. <br />3 <br />