C150338 COC Approval letter

• Contract/PO #: CT2015-051
• Contract/PO #: C150338
• Contractor Name: Eckhardt Farms, Inc.
• Contract Type: Loan
• Loan Projects - Doc Type: Approval Letter

D N R COLORADO 1313 Sherman Street John Hickenlooper,Governor
Denver,CO 80203
CO , Colorado Water Mike King,DNR Executive Director IS Conservation Board P(303)866-3441
h,,e,,,,, yE,,,,,f.e F(303)866-4474 James Eklund,CWCB Director
TO: Colorado Water Conservation Board Members
FROM: Jonathan Hernandez, P.E., Project Manage
Kirk Russell, P.E., Finance Section Chief
DATE: January 26-27, 2014 Board Meeting (Updated January 28, 2015)
CONSENT AGENDA: Item 4a - Change to Existing Loans
Eckhardt Farms, Inc. -Water Rights Purchase
Introduction
Eckhardt Farms Inc. (Corporation) received approval of a $1,336,230 CWCB loan (Contract C150338,
CT2015-051)to finance a Water Rights Purchase (Project)at the September 2012 Board Meeting. The
purpose of the Project was to allow the Corporation to continue farming operations, despite the loss of
well water on the farms. The original loan request identified 21 shares of Western Mutual Ditch. These
shares later became unavailable and the Corporation has since identified a total of 16.06 shares of
Farmers Independent Ditch and 2 other shares of Western Mutual Ditch. The use of loan funds to
purchase these new 18.06 shares will require a change in collateral as originally approved at the
September 2012 Board Meeting. An increase to the loan amount is not being requested.
Staff Recommendation (Board Approved Staff Recommendation on January 27, 2015)
Staff recommends the Board approve a change of collateral corresponding to the water shares to be
purchased with the loan proceeds. The loan shall remain as originally approved as a loan not to exceed
$1,336,230 ($1,323,000 for Project cost and $13,230 for the 1% Loan Service Fee) from the
Construction Fund to Eckhardt Farms, Inc. for costs related to the Water Rights Purchase. The loan
terms shall remain 30 years at the agricultural interest rate of 1.75% per annum. Security for the loan
shall be in compliance with CWCB Financial Policy#5.
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