CT2019-2034 Contract

• Contractor Name: Florida Consolidated Ditch Company
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

APPENDIX 1, PROJECT SUMMARY
Loan Contract Number CT2019-2034
Section 1 —Borrower's Name
Florida Consolidated Ditch Company
Section 2—Project Description
A. Description of Project:The Borrower applied to the CWCB for a loan to be used for Hess Lateral
Improvement (Project), located in La Plata County, at a total estimated Project cost of
$1,075,000.00. The Hess Lateral is an earth-lined, open irrigation ditch. The purpose is to pipe 4
miles of the ditch.
B. Description of Feasibility Study: Peter Foster, P.E.,with Wright Water Engineers Inc.,prepared
the Loan Feasibility Study titled, "FCDC Hess Lateral Improvement—CWCD Loan Feasibility
Study, " dated May, 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
study,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 approal from the General
Assembly.
Section 4-Board Approval
At its May, 2017 meeting the CWCB approved a Project Loan from theWCB Severance Tax
Perpetual Base Fund, to the Borrower, in an amount up to $1,075,00000 for Project Costs.
CWCB's Origination Fee of 1% in the amount of$10,750.00, in accordance with CWCB Policy
No. 16, added to the Base Loan Amount results in a Total Loan Amount of$1,085,750.00, at an
interest rate of 1.80%per annum for a repayment term of 30 years.
Section 5—Schedule of Existing Debt
As of the date of the CWCB loan approval,no other debt, backed by the loan security described
in Section 6 below,exists.
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
Contract, (ii)an assessment covenant; and (iii)an undivided one hundred percent(100%)
interest in the Intake Pond,Hess Lateral Pipeline, and Turnouts as more particularly described in
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Contract Number:CT2019-2034
Appendix 1