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o Family Limited Partnership, LLLP Agenda Item 30d <br />her 13, 2012 (Updated September 30, 2013) <br />of 5 <br />Thc Petrocco Farming operation is a family owned and operated produce business located in <br />Brighton, CO and has been in operation since 1916. It operates under two entities, the Petrocco <br />Family Limited Partnership, LLLP (Partnership) and Petrocco Farms, Inc (Corporation). The <br />Parnership owns the lands, water rights, buildings and equipment. These assets are leased to the <br />Co oration, the operating entity, which in turn farms the land and produces and sells the product. <br />Th' proposed loan is being sought by the Partnership. <br />Far ning operations currently include farming approximately 2,600 acres in western Adams and <br />W d counties. This area extends from the home offices south of Brighton, north along the U.S. <br />Hi way 85 corridor approximately 25 miles to an area east of Lucerne. The list of crops produced <br />inc ude romaine, green leaf and red leaf lettuce, cabbage, green beans, onions, spinach, turnip <br />gre ns, mustard greens, collard greens, kale greens, peppers, and winter squash. These produce are <br />shi ped to various supermarkets and food services throughout Colorado, Wyoming, Kansas, <br />Ne raska, Texas, Louisiana, Missouri, and New Mexico. <br />Lo in Feasibility Study <br />Mi e Serlet, P.E. and Bruce Johnson, P.E. with Serlet Project Consulting, LLC prepared the Loan <br />Fe ibility Study titled "Feasibility of the Petrocco Farms Water Rights Purchase," dated August <br />20 3, with a water right analysis provided by TZA Water Engineers, Inc. The study was prepared in <br />acc rdance with the CWCB guidelines and includes an alternative analysis and cost estimates. <br />Bo rower — Petrocco Family Limited Partnership, LLLP. <br />The Partnership was established as a Limited Liability Limited Partnership (LLLP) in 1998 and is <br />in good standing with the Colorado Secretary of State. The General Partner responsible for the <br />opc ration of the Partnership is David Petrocco Sr. The Partnership is also made up of the following <br />Liri tited Partners: David Petrocco Jr., Joseph Petrocco, and Julie Petrocco n/k/a Julie Marrone. <br />Par Lnership revenues are generated from leasing its assets to the Corporation. The Corporation's <br />rev nues are generated from selling the agricultural production. The Partnership Agreement <br />aut orizes the General Partner to take on debt and to subject any portion of the property of the <br />P nership as debt security. <br />W4ter Rights <br />F <br />TABLE 1: EXISTING PARTNERSHIP WATER RIGHTS <br />Water Source <br /># of Shares or <br />Wells <br />Fulton Ditch Company Shares <br />72 <br />Farmers independent Ditch Company Shares <br />86.5 <br />Western Mutual Ditch Company Shares <br />12 <br />New Cache La Poudre Irrigating Company Shares <br />21 <br />Cache La Poudre Reservoir Company Shares <br />20 <br />Windsor Reservoir & Canal Company Shares <br />1 <br />New Cache Augmented Wells <br />1 <br />1953 Adjudicated Non -Trib Wells <br />2 <br />h farm has an annual estimated water need of approximately three acre -feet per irrigated acre. <br />the entire operation, this translates to an annual average need of about 7,800 acre -feet. The <br />Ming Partnership water rights provides approximately 3,000 acre -feet annually while water <br />ilable on leased farms grounds provides another 3,500 acre -feet annually. The proposed water <br />its for purchase will provide another 260 acre -feet annually. This leaves approximately 1,040 <br />