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C150398 Approval Letter
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C150398 Approval Letter
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Last modified
2/10/2015 7:37:26 AM
Creation date
5/28/2014 1:11:53 PM
Metadata
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Template:
Loan Projects
Contract/PO #
CT2015-151
C150398
Contractor Name
Louden Irrigating Canal & Reservoir Company
Contract Type
Loan
Water District
4
County
Larimer
Loan Projects - Doc Type
Approval Letter
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Louden Irrigating Canal and Reservoir Company Agenda Item 35b <br /> May 9,2014(Updated May 23,2014) <br /> Page 4 of 5 <br /> Schedule: After the flood, the Company immediately surveyed the post-damaged flood, retained <br /> Telesto Solutions for the Project, and began Phase 1. By November 2013,the trash and debris was <br /> removed,the ditch was reconstructed, and the diversion structure was cleaned and repaired as <br /> necessary to be brought into a functional condition. The replacing of the headgates is expected to <br /> occur between the 2014 and 2015 irrigation season. <br /> Financial Analysis <br /> The Company qualifies for a blended interest rate of 2.70% for a 30-year term (Ownership: 25% <br /> Agriculture, <1% Low Municipal, 61% Mid Municipal, 8%High Municipal, 6% Commercial). <br /> Table 4 provides a summary of the Project's financial aspects. <br /> TABLE 4: FINANCIAL SUMMARY <br /> Total Project Cost $215,000 <br /> Borrower's Responsibility $55,000 <br /> CWCB Loan Amount $160,000 <br /> CWCB Loan Amount(Including 1% Service Fee) $161,600 <br /> CWCB Annual Loan Payment $7,928 <br /> CWCB Annual Loan Obligation (incl. 10% debt reserve) $8,721 <br /> Number of Shares 600 <br /> Total Project Cost per Acre Foot(8,000 AF) $27/AF <br /> Annual Loan Obligation per Share (First 10 Years) $14.50 <br /> Current Assessment per Share $270/share <br /> Future Assessment per Share $285/share <br /> Creditworthiness: The Company has $282,359 in existing debt as summarized in Table 5. The <br /> Western States Bank loan was a bridge loan that provided immediate financing for Phase 1 of the <br /> Project. The loan will be paid off with the proceeds of this CWCB loan and thus its debt service is <br /> not included in Table 6. CWCB Loan C150268, approved at the July 2008 Board meeting, is in <br /> good standing. <br /> TABLE 5: EXISTING DEBT <br /> Lender Original Current Annual Maturity Collateral <br /> Balance Balance Payment Date <br /> Western States Bank $100,000 $100,000 $14,300 2020 Assessment Revenues <br /> CWCB(C150268) $189,843 $182,359 $10,322 2042 Assessment Revenues <br />
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