BOARD00468

• Board Meeting Date: 7/28/2003
• Description: CF Section - Mildred L. Rothe
• Board Meetings - Doc Type: Memo

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Mildred L. Rothe
July 28-30. 2003

Agenda Item 21h

As security for the loan the Rothe Farm will pledge 640 acres of farmland (501 acres irrigated),
located in Section 8, T5N, R59W. This property is valued at $1,600 per irrigated acre and
should appraise at approximately $800,000. A Colorado Certified General Appraiser will
establish the value. This collateral is in compliance with CWCS Loan Policy #5 (Collateral).

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Recommendation i v D d.~j7/lli:O
Staff recommends a CWCS Small Project Loan from the C nstruction FUM in amount of
$353,482 to Mildred L. Rothe for up to 90% of the cost to onstruct groundwater recharge and
augmentation facilities know as the Rothe Augmentatio Plan. The recommended loan terms
are 30 years at 2.5% (2.577% Annual Percentage Rate). Security for the loan will be collateral
in accordance with CWCS loan policy #5 (a first lien on 640 acres of land, including
improvements and water rights. located in Section 8, T5N, R59W with value at least equal to
the loan amount, as established by a Colorado Certified General Appraiser.) The CWCS loan
may be used to payoff short-term construction loan financing.

Staff further recommends that final approval of the loan be conditioned upon all standard
contracting provisions of the CWCS, including the 1% loan origination fee charged in
accordance with CWCS Policy #16. The loan amount may be increased to $357,016 if the
borrower elects to finance the 1 % loan service charge.

cc: Larry Rothe
Brent Nation, P.E.
Linda Bassi. AGO

Attachment

C:Proj-New\Rothe 0703 memo;

L:\boardmem\July03\21 h - Rothe Farm

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