PUB00054

• Year: 1983
• Title: Construction Fund Annual Report 1983
• CWCB Section: Finance
• Author: CWCB
• Description: Construction Fund Annual Report 1983
• Publications - Doc Type: CF Annual Report

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1. Colorado-Ute intends to sell land and water rights to
the District for the project (see attachment). Payment
for land only ($1,000,000) is due when the land is
needed for the project. The water rights need not be
paid for ($2,000,000) until the first delivery of
project water. If these assets were contributed in
exchanqe for a portion of the project's yield, less
money would be needed to pay for construction. This may
be important to consider given the state's budgetary
situation.

2. About 1,000 acres around the reservoir are owned by
Colorado-Ute, about 500 acres of which may be
developable. Any appreciation in land values would be
equally divided between Colorado-Ute and the District.
The District would devote its gains to retiring its
indebtedness. In previous projects, the Board has
required that such lands be dedicated to their present
uses so that "windfall" benefits from recreational and
housing development would not accrue to the land owners.

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3. The total yield of the reservoir is not presently
marketable (15,000 acre-feet of the estimated 30,000
acre-foot yield are unspoken for). Of the 15,000
acre-feet which have been marketed, 10,000 acre-feet are
for Colorado-ute, which apparently does not have an
immediate use for the water. Since consumption is the
key to protecting the state's Colorado River
entitlements, is this a logical way to proceed to make
expenditures?

4. The District proposes to fund the project as follows:

Private Funds
(from the upper Yampa Water)
Conservancy District cash reserves)

$

500,000

Funds from the Water Resources and
Power Development Authority
(la-year interim loan, interest payable
only, at 5%)

5,500,000

CWCS r'unds
(to be repaid by water user fees)
Total

6,000,000

$12,000,000

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