BOARD01075

• Board Meeting Date: 3/20/2000
• Description: CF Section - Water Project Construction Loan
• Board Meetings - Doc Type: Memo

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Agenda Item 8a. March 20-21, 2000
DeWeese-Dye Ditch and Reservoir Co.

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Discussion
The DeWeese Reservoir has a storage capacity of 4,120 acre-feet. The value of storage
ownership has been appraised at $1,000 per acre-foot (Appraisal by Peter D, Boddie,
HRS Water Consultants, dated August 30,1999.) Storage ownership is as follows:

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DeWeese Reservoir Storage Ownership

Owner Storage, acre-feet Value $
DeWeese-Dye Ditch and Reservoir Co. 3,520 3.520.000
Colorado Division of Wildlife 500 500,000
Round Mountain Water and Sanitation District 100 100,000
Totals 4,120 $4,120,000

The DDRC also owns 160 acres of land northeast of the reservoir that is a part of the
1,040 acres pledged as collateral on the CWCB loan. (See attached map, parcel "A".)
This land is valued at approximately $3,000 per acre, for a total value of $480,000, When
this is added to the value of the storage the DDRC owns in the reservoir ($3,520,000), the
total value of collateral for the CWCB loan is $4 million.

Collateral value of reservoir storage:
Collateralvalue of Parcel "A" (160 acres)
Total value of collateral for CWCB loan:

$3,520,000
S 480.000
$4,000,000

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Principal balance ofCWCB loan C-153832 $ 585,000

If the CWCB releases Parcel "A", as well as the interests owned by both the Division of
Wildlife and Round Mountain Water and Sanitation, the CWCB will still retain collateral
valued at $3,520,000 to cover the $585,000 loan amount.

Recommendation
Staff recommends that the Board approve partial release of collateral (and/or allow the
CWCB loan to be subordinated to these interests) on CWCB loan C-153832 as follows:

1. Parcel "A" described as the WII2 NEII4 and the SII2 NWl/4 of Section 21, T 21 S,
R 72 W, 6th P.M.

2. 500 acre-feet of storage in the DeWeese reservoir owned by the Colorado Division of
Wildlife.

3, 100 acre-feet of storage in the DeWeese Reservoir owned by the Round Mountain
Water and Sanitation District.

Attachments:

Letter of request dated January 10,2000, DeWeese-Dye Ditch and reselY'oir Company.
Map showing parcel "A".

C:\wp5 t \proj-new\De WeesePartialrelease300memo Boardmem\82-MarOO

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