CT2018-1960 Loan Contract - Laserfiche WebLink

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APPENDIX 1, PROJECT SUMMARY Loan Contract Number CT2018-1960 Section 1 —Borrower's Name The Fort Lyon Canal Company Section 2—Project Description A. Description of Project: The Borrower applied to the CWCB for a loan to be used for the Adobe Creek Dam Rehabilitation (Project), located in Bent County, at a total estimated project cost of $9,200,000.00. The purpose of the Project is to restore 32,560 acre-feet of storage at Adobe Creek Reservoir and lift the Dam Safety Branch of the Office of the State Engineer's storage restriction. B. Description of Feasibility Study: Steve Jamieson, P.E., W.W.Wheeler & Associates, Inc, prepared the Loan Feasibility Study titled, "Feasibility Study for the Rehabilitation of Adobe Creek Dam," dated August 1, 2017. The feasibility study was prepared in accordance with CWCB guidelines and includes an analysis of alternatives, preliminary engineering design, and construction cost estimates and is incorporated herein by this reference. Based upon the feasibility report,the CWCB determined the Project to be technically and financially feasible. Section 3—CWCB's Authority Severance Tax Perpetual Base Fund: This loan is made pursuant to the provisions of§§ 39-29- 109(1)(a)(1), 37-60-119 and 37-60-120, C.R.S., which authorize the CWCB to loan money for water projects from the CWCB Severance Tax Perpetual Base Fund for the benefit of the people of the state,provided that the Borrower assures repayment of that money. Section 37-60-122(1)(b) C.R.S., authorizes the CWCB to make loans of up to $10,000,000 from the CWCB's Severance Tax Perpetual Base Fund without prior approval from the General Assembly. Section 4-Board Approval At its September 20, 2017 meeting the CWCB approved a Project Loan from the Severance Tax Perpetual Base Fund, to the Borrower, in an amount up to $8,100,000.00 for Project Costs. CWCB's Origination Fee of 1% in the amount of$81,000.00, in accordance with CWCB Policy No. 16, added to the Base Loan Amount results in a Total Loan Amount of$8,181,000.00, at an interest rate of 1.50%per annum for a repayment term of 40 years. Section 5—Schedule of Existing Debt As of the date of the CWCB loan approval, the Borrower has an existing loan with the Colorado Water Conservation Board, Contract No. c'r2016-1987, with a current balance of$1,499,256.00, and an annual payments of$70,264.00.The loan has an estimated maturity date of 2044 and is in good standing. Section 6—Loan Security The Security for this loan, as evidenced by the executed Security Agreement(Appendix 5) and incorporated herein, shall be: (i) an irrevocable(but not exclusive) pledge to the CWCB of the Pledged Revenues in such amount as is necessary to make each annual payment due under this Appendix I Page I of 3