C150356 Feasibility Study ‎(financials)‎

• Contract/PO #: CT2015-015
• Contract/PO #: C150356
• Contractor Name: Bellyache Ridge Metropolitan District
• Contract Type: Loan
• Water District: 37
• County: Eagle
• Loan Projects - Doc Type: Feasibility Study

SPENCER FANE
& GRIMSHAWLLP
A T T O R N E Y S & C O U N S E L O R S A T L A W
LARRY W.BERKOWFI'Z
File No.5021499-0001
DI tLLCT DIAL:[phone]
lb:[e-mail]
January 28, 2014
Anna Mauss
Pro.,ect Management/Marketing
Colorado Water Conservation Board
1580 Logan Street, Suite 600
Der ver, CO 80203
Re: Bellyache Ridge Metro District/Loan Contract No. C150356
Dear Ms. Mauss:
This office has been retained by the Bellyache Ridge Metropolitan District to serve as
bond counsel with regard to the above-referenced loan.
As we discussed in our telephone conversation of January 24, 2014, the District is
requesting that the loan be made to a to-be-established Enterprise, probably to be named the
Bellyache Ridge Water Enterprise, which would serve as the borrower under the Contract. In
addition, as the District would propose to utilize revenues from the water system to pay this
obligation as opposed to taxes. The pledge of revenues as described in Appendix 3 to the Loan
Contract and the Security Agreement, Appendix 4, would have to be revised to reflect the
change.
Appendix 3 I believe could be amended to say:
2. To levy and collect "user fees, rates, and charges" instead of"mill
levy enterprise revenues".
The description of the Collateral in the Security Agreement, Appendix 4, would have to
be changed to "water user rates, fees, and charges in an amount sufficient to repay the loan..."
instead of "all mill levy revenues pledged to repay the loan...". Of course, you may prefer
different language, but you understand the concept that it is revenues (fees) which are going to
provide the revenue for the repayment not tax revenue. Please advise if you desire different
language.
1700 Lincoln Street,Suite 3800
Denver,Colorado 80203-4538 DN 950012.1
[phone] www.spencerfane.com Fax [phone]
Kansas City,Missouri St.Louis,Missouri Overland Park,Kansas Denver,Colorado Jefferson City,Missouri Omaha,Nebraska