Laserfiche WebLink
present lack of economically viable demands for water in western <br /> Colorado. In this context, it raises the issue of the extent to <br /> which new projects should be constructed in anticipation, but not <br /> the certainty, of future demands developing. Second, the <br /> project , because it lies on and is surrounded by privately owned <br /> lands, raises the issue of private gains being reaped from a • <br /> public investment. Third , and as a corollary, there is the issue <br /> of public access to and use of a newly created recreational <br /> resource, <br /> the construction of which woul d be financed with public <br /> funds. <br /> After deliberating about these issues at some length, the <br /> Board concluded that the project should be favorably recommended <br /> to the General Assembly in order that important issues of first <br /> impression could receive the legislature ' s attention. However, <br /> as specified below, the Board is of the opinion that the project, <br /> if authorized , should be subject to several conditions. <br /> These conditions are designed to ..protect the proposed state <br /> (CWCB) investment, reflect the public's interest in the <br /> recreational resource to be created , and obtain for the state any <br /> return on a potentially high risk investment which may be <br /> realized through appreciation in land values. The latter <br /> condition is patterned after the equity ventures frequently <br /> employed in the private sector, in which investors in high risk <br /> enterprises seek not only a return of the capital they have put <br /> at risk, but also a portion of the profits realized if the <br /> venture proves fruitful . <br /> Recommendation <br /> The Board recommends that the General Assembly authorize <br /> $6 ,000 ,000 for the project, repayable over 40 years in annual <br /> installments of $407,960, provided that monies for the project <br /> shall not be made available until the following conditions have <br /> been met by the Upper Yampa Water Conservancy District : <br /> 1 . Repayment of the Board's investment shall be guaranteed <br /> with the District's ad valorem taxes and revenues from <br /> the sale of project water, contracts for such sales to <br /> be executed to the Board 's satisfaction prior to the <br /> initiation of construction on the project. <br /> 2. Any lands and water rights to be purchased by the <br /> District for the project shall be appraised by an <br /> independent appraiser or appraisers of the Board' s <br /> choice and the amounts to be paid by the District for <br /> such lands and water rights shall be subject to the <br /> Board 's prior approval . <br /> • <br /> -4- <br />