C150349 Feasibility Study I - Laserfiche WebLink

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install a floating pump in Lake Henry in order to get required water from the Lake. • With use of Feedyard -owned wells, augmentation water could be stored at higher elevation reservoirs, further reducing evaporative loss. • Finally, water quality from project wells is of higher quality than water that is currently being used. Study Area Description Crowley County is located in the high plains of Southeast Colorado, and was established in 1911. The Town of Ordway is the county seat, and lies about 50 miles east of Pueblo. The Ordway Cattle Feeders feedlot lies approximately one mile east of Ordway. River Ranch, the location of the project's wells, lies south east of Ordway and is adjacent to the Arkansas River. The proposed waterline will run 14.7 miles, from the ranch to the feedlot. (See Appendix C: Project map) Crowley County is the poorest county in Colorado, with 46% of residents living below poverty level in 2010, according to state demographer statistics. 34.4% of children under 18 years live in poverty, as compared to 14.4% statewide. At one time nearly 50,000 acres were under irrigation in Crowley County. The county is a case study demonstrating the effects of large -scale municipal water transfers, most of which happened in the 1970's and 80's. Irrigated acres now stand at approximately 6,600 acres. Water rights were transferred to Front Range municipalities, mostly Aurora, Colorado Springs, and Pueblo. Ordway Cattle Feeders, LLC is the third largest employer in Crowley County, and the largest employer of the local population. The company employs 70 full -time and 10 part-time employees, with an annual payroll in excess of $1.7 million. Other primary employers in the county are the local school system, the Arkansas Valley Correctional Facility, and the Crowley County Correctional Facility. A prison population of 2,649 constitutes over 41% of the county's total population of 6,344. Crowley County's unemployment rate was 9.3% in 2009, compared to 7.7% statewide. Previous Studies Ordway Feedyard LLC has attempted to plan ahead for its water supply needs in the past by purchasing Colorado Canal shares when they become available. This water project adds flexibility to the system, stabilizes and improves the company's water supply, enabling it to remain viable for the long term future. Project Sponsor Ordway Feedyard, LLC is the sponsor and loan applicant. Ordway Cattle Feeders, LLC is a co- sponsor of the loan. The two companies have the same ownership. Ordway Feedyard LLC holds the land and most physical assets of the company, and Ordway Cattle Feeders, LLC owns the cattle and equipment and constitutes the farming operation. Crowley County is a primary project partner, and the county is the applicant for Basin /Statewide WSRA funding. The feedlot was established in 1972. It changed hands over the years. Ordway Feedyard, LLC was created in 1996, and Ordway Cattle Feeders, LLC was created in 2006. Both are Colorado Limited Liability Companies (see Appendix A & B for Operating Agreements). Revenue is generated by providing custom cattle feeding services. The feedyard capacity is 65,000 head (see Appendix ME for 2012 Financial Statements).