My WebLink
|
Help
|
About
|
Sign Out
Home
Browse
Search
BOARD00360
CWCB
>
Board Meetings
>
Backfile
>
1-1000
>
BOARD00360
Metadata
Thumbnails
Annotations
Entry Properties
Last modified
8/16/2009 2:49:21 PM
Creation date
10/4/2006 6:36:40 AM
Metadata
Fields
Template:
Board Meetings
Board Meeting Date
11/16/2004
Description
CF Section - New Loans - Buffalo Farms Water Development, LLC - Groundwater Recharge Project
Board Meetings - Doc Type
Memo
There are no annotations on this page.
Document management portal powered by Laserfiche WebLink 9 © 1998-2015
Laserfiche.
All rights reserved.
/
6
PDF
Print
Pages to print
Enter page numbers and/or page ranges separated by commas. For example, 1,3,5-12.
After downloading, print the document using a PDF reader (e.g. Adobe Reader).
Show annotations
View images
View plain text
<br />r! <br /> <br />.' <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />Buffalo Farms Water Development, LLC <br />November 16-17.2004 <br /> <br />Agenda Ilem14b <br /> <br />Debt Service Coverage Ratio <br />{revenues-expenses)/debt service 102% <br />weak: less than 100% N/A (average) <br />average: 100% - 125% <br />strong: greater than 125% <br />Cash Reserves to Current Expense <br />weak: less than 50% N/A 8% <br />average: 50% - 100% (weak) <br />stranQ: Qreater than 100% <br />Annual Operating Cost per Acre-Ft. (800 AF <br />weak: greater than $20 Depletions) N/A $38 <br />average: $10 - $20 (weak) <br />strano: less than $10 <br /> <br />Collateral - As security for the loan the Company will pledge a first lien security interest in real <br />estate,located in the Sections 13,14 & 24, T6N, R54W. The properly consists of approximately <br />130 contiguous acres, 122 acres sprinkler irrigated, with one well and 2 pivots. Based on past <br />similar appraisals the value of the irrigated land is estimated to be at least $1750 per sprinkler <br />irrigated acre. The estimated collateral value would be $215,500 (122 ac. x $1750 per acre plus 8 <br />ac. x $250 per acre for corners). In accordance with revised CWCB Policy #5, real properly <br />collateral will be required in the amount of 110% of the loan amount. With a loan of value of <br />$193,500, plus the 1% Loan Service Fee, the required collateral value will be $214,979. <br /> <br />During the contract process, supporting documentation of land values, based on the current land <br />use, will be submitted by a Colorado Certified General Appraiser. The collateral will be in <br />compliance with CWCB Loan Policy #5 (Collateral). In addition, in order to cover the irrigation <br />augmentation requirements for the land being used as collateral, a 14% interest in the <br />augmentation water benefits generated by the Buffalo Farms Water Development Augmentation <br />Project will be secured. <br /> <br />Recommendation <br /> <br />Staff recommends a loan not to exceed $195,435 ($193,500 for project costs and $1935 for the 1% <br />Loan Service Fee in accordance with CWCB Loan POlicy #16), to Buffalo Farms Water <br />Development, LLC, from the Severance Tax Trust Fund Perpetual Base Account, to enhance and <br />expand an existing groundwater recharge project for well augmentation, and to pay expenses <br />already incurred. The recommended terms of the loan are 20 years at 2.25% per annum. Security <br />for the loan will be a first lien on real estate with a total value equal to or greater than the CWCB <br />loan amount, including a 14 % interest in the project being financed to cover the augmentation <br />requirements of the well being provided with the collateral land. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon all other standard <br />contracting provisions of the CWCB. <br /> <br />cc: <br /> <br />Kevin Vollmer, Manager, Buffalo Farms Water Development, LLC <br />Brent Nation, P.E., Fort Morgan <br />Chad Henderson, AGO <br /> <br />Attachment <br /> <br />~"" +~Ii,JJ- <br />~~ 1<:-~l~ ~ M'/ ~(~ <br /> <br />..J Page 5 of5 ~ <br /> <br />
The URL can be used to link to this page
Your browser does not support the video tag.