C150363 Feasibilty Study - Laserfiche WebLink

Home Browse Search

o institutional considerations have been identified. P1 ,s previously discussed, Petrocco Farms operates as two related entities. Petrocco arms, Inc. (the Corporation) is the operating entity overseeing production and sales, and ie Petrocco Family Limited Partnership (the Partnership) which holds ownership of end, water, buildings and equipment assets. Consistent with their current financial ractice the proposed CWCB loan is being sought by the Partnership. As discussed elow, the Partnership derives its significant income from rental of land (and associated later), equipment and buildings to the Corporation. ;w Loan - The Partnership plans to acquire 53 shares of the Fulton Ditch, and 8 shares New Cache La Poudre Irrigating Company along with 6 shares of Cache La Poudre servoir Company, at a total cost of $925,000. A summary of total project costs is as Fulton Ditch $570,000* New Cache La Poudre Irrigating Co. 240,000 ** Cache La Poudre Reservoir Co 90,000 * ** Total Water Purchase $900,000 Feasibility Study 10,000 Water Engineering (est.) 7,500 Transaction Fees (est.) 7,500 TOTAL PROJECT COST $925,000 Loan amount at 90% $832,500 1% loan origination fee $8,325 TOTAL LOAN AMOUNT $840,825 * 48 shares @ $10,000 /share + 5 shares @ $18,000 /share ** 8 shares @ $30,000 /share * * *6 shares @ $15,000 /share term of the loan will be 20 years at an Agricultural interest rate of 1.50 %. The ival payment on the loan will be $48,974 per year, plus a reserve fund contribution of 897 for the first 10 years. The Partnership will provide its 10% local share ($92,500) the project from its cash reserves. isting Loan — The Partnership has one outstanding loan with American Ag Credit in -'eley, CO. The loan was obtained in 2008 for the purchase of the Benson #7 Farm, luding water rights, near Lucerne, at the intersection of S.H. 392 and Co. Rd. 43. The ginal loan amount was $725,000 with a term of 10 -years at a fixed interest rate of