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Sylvan Dale Ranch is requesting a 30 year loan in the amount of$80,000 at the disaster <br /> emergency rate of 1.76 percent interest. The Ranch will cover any costs that exceed the <br /> estimate project cost. <br /> Credit Worthiness. <br /> Sylvan Dale Ranch was appraised in 2007 at $13 million. The only outstanding loans, other than <br /> internal loans from General Partners, are two loans from American Ag Credit, totaling <br /> approximately$580,000. As a result of the flood, American Ag Credit has extended an 18- <br /> month moratorium on loan repayments. Copies of the loan documents are attached. <br /> Collateral. <br /> Sylvan Dale Ranch owns approximately 1200 acres of unencumbered land, on which are located <br /> the main ranch buildings appraised at $2.9 million. In addition, as mentioned previously, the <br /> Ranch owns 259 shares of Colorado-Big Thompson water. <br /> Economic and Social Analysis. <br /> Without functioning irrigation ponds, the ranch's previous investment in water pumps, <br /> irrigation pipe and center pivots will be rendered useless. Total value of the irrigation <br /> infrastructure is estimated at $500,000. Annual income loss from hay and cattle production <br /> would be approximately$280,000 and two staff positions. <br /> Conclusions <br /> 1. Sylvan Dale Ranch is an incorporated entity in the State of Colorado with the ability to enter <br /> into a contract with the CWCB for the purpose of obtaining an emergency loan. <br /> 2. Rights-of Way easements are adequate for the construction of this project. <br /> 3. The project would provide for the continued delivery of irrigation water to the ranch's <br /> agricultural operation. <br /> 4. The total estimated cost of the project is $80,000. The Ranch is applying for a $80,000 <br /> Emergency loan from the CWCB Construction Fund for this amount not covered by the <br /> federal grant. <br /> 5. Sylvan Dale Ranch is eligible for a loan from the CWCB Emergency Infrastructure Repair <br /> Account because the project is necessary to avoid unreasonable risk to property or crops, <br /> and because the emergency condition is not the result of negligence in the operation or <br /> maintenance of the irrigation infrastructure. <br /> 6. The project is technically and financially feasible. <br /> Attachments: 1) Partnership Agreement. 2) American Ag Credit loan documents <br />