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<br />" <br /> <br />J <br /> <br />e <br /> <br />e <br /> <br />e <br /> <br />STATE OF COLORADO <br /> <br />Colorado Water Conservation Board <br /> <br />Department of Natural Resources <br />1313 Sherman Street, Room 721 <br />Denver, Colorado 80203 <br />Phon" (303) 866-3441 <br />FAX, (303) 866-4474 <br /> <br />MEMORANDUM <br /> <br />~ <br /> <br />Bill Owens <br />Governor <br /> <br />TO: <br /> <br />Colorado Water Conservation Board Members <br /> <br />John Van Sciver, PE, ~ <br />Mike Serlet, PE, Chief ,uJ ( <br />Water Supply Planning 'J'f/d Finance Section. <br /> <br />Dan McAuliffe <br />Deputy Director <br /> <br />Greg E. Walcher <br />Executive Director <br /> <br />FROM: <br /> <br />Peter H. Evans <br />CWCB Director <br /> <br />DATE: March 2, 2000 <br /> <br />SUBJECT: Agenda Item # Sa., March 20-21, 2000, Board Meeting - <br />Water Project Construction Loan Program - Partial Release of <br />Collateral. <br />DeWeese-Dye Ditch and Reservoir Co. <br /> <br />Introduction <br />The DeWeese-Dye Ditch and Reservoir Company (DDRC) completed rehabilitation of <br />the DeWeese Dam December 1, 1999, The total project cost was approximately $1.1 <br />million, and the CWCB loaned $585,000 of this amount under contract C-153832 to <br />complete the project. <br /> <br />Collateral for the loan consists of the dam and reservoir and 1,040 acres of land. The <br />DDRC is requesting release of a portion of the collateral; 160 acres of land valued at <br />$480,000. The Company plans to sell 40 acres, and negotiate an easement with the <br />Division of Wildlife for the remainder. The Company will use the funds to set up a <br />capital improvement account to rehabilitate ditches and hydraulic structures owned by the <br />DDRC. <br /> <br />The DDRC sold portions of reservoir storage in the DeWeese Dam to help finance the <br />rehabilitation project. These sales occurred in fall 1999 and consisted of 500 acre-feet to <br />the Division of Wildlife ($500,000), and 100 acre-feet to Round Mountain Water and <br />Sanitation District ($100,000,) These interests need to be released as collateral from the <br />CWCB loan, or as an alternative, the CWCB loan needs to be subordinated to these <br />interests, (The $600,000 from these sales went directly toward the cost ofrehabilitation of <br />the DeWeese Dam and reduced the required size of the CWCB loan from $990,261 down <br />to $585,000,) <br />