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6. Cost Estimate <br />• The staff of the Colorado Water Conservation Board recommended that the Board would <br />approve a loan that would not exceed $1,363,500.00. The Board also recommended that <br />$1,350,000.00 would be used for the main project costs and $13,500.00 for the 1% Loan <br />Service Fee. The term of the loan will be 30 years with an agricultural interest rate of <br />1.75% annum. There will be no long term construction or anything of that nature, once <br />the loan goes into effect Eckhardt Farms Corporation will purchase 21 shares of water <br />from Western Mutual Ditch Company at $70,000.00 per shares equaling the project total <br />cost at $1,470,000.00. <br />7. Implementation Schedule <br />• Assuming that Eckhardt Farms Corporation is granted the loan, the completion of the <br />agreement for 21 shares of Western Mutual Ditch Company water between Eckhardt <br />Farms Corporation and United Water will take place between November 30, 2012 and <br />December 15, 2012. Once the agreement is final Eckhardt Farms Corporation will start <br />using the water on the Peckham - Reifschneder Farm for the 2013 growing season. <br />8. Institutional Feasibility <br />• There will be a contract agreement between Eckhardt Farms Corporation and United <br />Water. Eckhardt Farms will be purchasing 21 shares of Western Mutual Ditch Company <br />water at $70,000.00 for a total of $1,470,000.00. <br />9. Financial Feasibility Analysis <br />a. Loan Amount <br />o The CWCB Board of Directors has recommended a loan no more than <br />$1,363,500.00 <br />b. Financing Sources <br />o The Colorado Water Conservation Board will be the only loan provider <br />for this project. Any other costs will be handled by Eckhardt Farms <br />Corporation. <br />c. Loan Renavment Source <br />o Eckhardt Farms Corporation will chose to repay the loan through profit <br />earned from the Peckham - Reifschneider Farm <br />d. Financial Impacts <br />o Eckhardt Farms Corporation has been encouraged by our local banker to <br />find a project similar to this one. Eckhardt Farms is to invest in water <br />shares as real property. The reason the bank is encouraging this from <br />Eckhardt Farms is to increase production and to improve the tax situation. <br />Eckhardt Farms Corporation <br />