C150363 Approval Letter

• Contract/PO #: C150363
• Contract/PO #: CT2015-001
• Contractor Name: Petrocco Family Limited Partnership, LLLP
• Contract Type: Loan
• Water District: 2, 3
• County: Adams
• County: Larimer
• Loan Projects - Doc Type: Approval Letter

STATE OF COLORADO
Colorado Water Conservation Board
Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
Fax: [phone]
www.cwcb.state.co.us
DATE: September 13, 2013 (Updated September 30, 2013)
SUBJECT: Agenda Item 30d, September 24-25,2013 Board Meeting
Finance — Water Project Loans
Petrocco Family Limited Partnership, LLLP — Water Rights Purchase
Introduction
Petrocco Family Limited Partnership, LLLP (Partnership) is applying for a loan for a Water Rights
Purchase (Project). The purpose of the Project is to better guarantee an annual water supply for its
agriculture operation by purchasing water for its farms that currently rely on leased water. The total
Project cost is estimated at $925,000. The Partnership is applying for a loan to cover 90% of the
purchase price. See attached Project Data Sheet for a location map and a project summary.
Staff Recommendation (Board approved staff recommendation on September 25, 2013)
Staff recommends the Board approve a loan not to exceed $840,825 ($832,500 for project costs and
$8,325 for the 1% Loan Service Fee) from the Construction Fund to Petrocco Family Limited
Partnership, LLLP for costs related to the Water Rights Purchase Project. The loan terms shall be
20 years at the agricultural interest rate of 1.50% per annum. Security for the loan shall be in
compliance with CWCB Financial Policy #5.
Staff additionally recommends the following contract conditions:
1) The Partnership must use the water rights purchased with the CWCB loan funds for irrigation of
crops. If the water cannot be used for crop irrigation, the remaining balance of the loan may be
called due within one year by the CWCB.
Interstate Compact Compliance • Watershed Protection • Flood Planning & Mitigation • Stream & Lake Protection
Water Project Loans & Grants • Water Modeling • Conservation & Drought Planning • Water Supply Planning
John W. Hickenlooper
Governor
TO: Colorado Water Conservation Board Members
Mike King
DNR Executive Director
FROM: Jonathan Hernandez, P.E., Project Manager
Kirk Russell, P.E., Chief
James Eklund
CWCB Director
Finance and Administration Section
DATE: September 13, 2013 (Updated September 30, 2013)
SUBJECT: Agenda Item 30d, September 24-25,2013 Board Meeting
Finance — Water Project Loans
Petrocco Family Limited Partnership, LLLP — Water Rights Purchase
Introduction
Petrocco Family Limited Partnership, LLLP (Partnership) is applying for a loan for a Water Rights
Purchase (Project). The purpose of the Project is to better guarantee an annual water supply for its
agriculture operation by purchasing water for its farms that currently rely on leased water. The total
Project cost is estimated at $925,000. The Partnership is applying for a loan to cover 90% of the
purchase price. See attached Project Data Sheet for a location map and a project summary.
Staff Recommendation (Board approved staff recommendation on September 25, 2013)
Staff recommends the Board approve a loan not to exceed $840,825 ($832,500 for project costs and
$8,325 for the 1% Loan Service Fee) from the Construction Fund to Petrocco Family Limited
Partnership, LLLP for costs related to the Water Rights Purchase Project. The loan terms shall be
20 years at the agricultural interest rate of 1.50% per annum. Security for the loan shall be in
compliance with CWCB Financial Policy #5.
Staff additionally recommends the following contract conditions:
1) The Partnership must use the water rights purchased with the CWCB loan funds for irrigation of
crops. If the water cannot be used for crop irrigation, the remaining balance of the loan may be
called due within one year by the CWCB.
Interstate Compact Compliance • Watershed Protection • Flood Planning & Mitigation • Stream & Lake Protection
Water Project Loans & Grants • Water Modeling • Conservation & Drought Planning • Water Supply Planning