Laserfiche WebLink
Owl Creek Reservoir Company Agenda Item 22E <br />November 20, 2001 <br />Financial Analysis <br />The total estimated cost for the improvements described above are estimated at <br />$1,250,000. The intent of the project is to provide agricultural water storage to allow <br />1,200 acres of various croplands to be irrigated. Staff is recommending.a 30-yeax loan at <br />the 3.25% agricultural interest rate in the maa�imum amount of $1,125,000 (90% of the <br />total project cost). <br />The Owl Creek Reservoir Company actively pursued alternative financing, but was <br />unable to find competitive funding elsewhere. The Reservoir Company investigated <br />obtaining a loan from their local bank, but was unsuccessful because the bank does not <br />provide long-term fixed rate financing for agricultural projects. <br />Table 2 is a summary of financial aspects of the project. A CWCB Construction Fund <br />loan of $1,125,000 would have an annual payment of $61,113.22, which includes the <br />required 10% reserve payment, at a loan term of 2.75% for 30-years. This represents a <br />cost of $51 per acre-foot, based on annual reservoir storage of 1,200 acre-feet. <br />Table 2. Financial Summary <br />Credit Summar_y <br />The Owl Creek Reservoir Company currently has a no existing debt. J. Gale Moody and <br />Valerie A. Moody, however, currently own all interests in the Reservoir Company. <br />Given the fact that all stock in non-assessable and currently owned by the Moody's, and <br />no annual income is generated from the corporation itself, the credit worthiness of J. and <br />Valerie 1Vloody have been evaluated to ensure repayment of the loan. <br />Currently, the Moody's have a number of outstanding loans for personal property, real <br />estate, and mineral interests. The outstanding balances for these loans are $4,239,723 of <br />which $3,140,450 of the debt is specifically for agricultural operations. All loan <br />payments are current. The loan contract will be subject to an acceptable credit report <br />from these lenders. �. � . _ . . r.. ,,o� __ � � . ��� .;� ��:�,_ �«;�����„ .� <br />�x � <br />a- r�'-�n��s a'� ,.:siaA� �#s::',S;aj . <br />4 <br />