C150379 Value of Shares

• Contract/PO #: C150379
• Contractor Name: Wadley Farms, Filing No. 3 Homeowners Association
• Contract Type: Loan
• Water District: 7
• County: Adams
• Loan Projects - Doc Type: Contract Documents

Christopher J.Sanchez
Jeffrey A.Clark
Michael A.Sayler
ate i' °t)I3 l3 Daniel 0.Niemela
Charles E.Stanzione
BISHOP- BROGDEN ASSOCIATES, INC. Jonathan D.George
January 17, 2014
Brett Ginther
Wadley Farms Filing No. 3 Homeowners' Association
RE: Opinion of Value for Two Shares of Farmers High Line Canal and Reservoir Company
Dear Brett:
At your request and per the proposal provided by Bishop-Brogden Associates, Inc. (BBA) on December
10, 2013, BBA presents this letter to summarize our opinion of the current market value of two shares in
the Farmers High Line Canal and Reservoir Company. Based on information you provided to BBA,
Wadley Farms is currently in the process of acquiring two shares of the Farmers High Line Canal and
Reservoir Company (FHL), the purchase of which is to be funded in part by a loan from the Colorado
Water Conservation Board (CWCB). For loans of this nature, the CWCB requires an outside opinion to
verify the market value of the acquired assets.
Introduction
The Wadley Farms Filing No. 3 Subdivision (Wadley Farms) is located in an unincorporated area of the
north Denver Metropolitan Area, consisting of 109 residential lots near East 144th Avenue and Colorado
Boulevard. The subdivision utilizes separate systems for drinking water and irrigation—potable water for
in-house use is provided by Denver Basin wells located on each developed lot, and non-potable irrigation
water is provided by a raw water supply system operated by the Wadley Farms Filing No. 3
Homeowners' Association (Wadley HOA). The raw water system consists of three on-property reservoirs
that are filled by water delivered to Wadley Farms via the Signal Ditch, and by intercepted tributary
flows. Each reservoir is equipped with a pump to move stored water into the pressurized raw water
distribution system for irrigation and firefighting purposes.
Prior to BBA's analysis and valuation, the Wadley HOA retained Carol Ellinghouse, P.E. to prepare a
feasibility study regarding the need for additional water supplies and several possible alternatives to
obtain such supplies. Background information included in Ms. Ellinghouse's September 2013 report', as
well as information from other publically accessible sources, is reflected in this report. However, all
research and analysis related to BBA's opinion of value for the subject FHL shares was completed
independently.
Wadley Farms No. 3 Water Supply CWCB Loan Feasibility Study,Acquisition of Additional Water Supply,Carol
Ellinghouse,P.E.,September 30,2013.
N \k*
333 West Hamden Avenue Suite 1050 Englewood Colorado 80110 .hone 303.806.8952 fax [phone]