BOARD01342

• Board Meeting Date: 11/20/2000
• Description: CF Section - Policy Review
• Board Meetings - Doc Type: Memo

STATE OF COLORADO"

Colorado Water Conservation Board
Department of Natural Resources

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721 State ~nr",,"nn.l BuildiD:g
1313 Sh= Street
Denver, Coloxado 80203
Phone [phone]
FAX [phone]

Roy Romer
Governor

MEMORANDUM

James S. Lochhead
Execntive Di=or, DNR
Danes C. Lile, P.E.
Diteaor, CWCB

(Updated February 2, 1996)

TO: Colorado Water Conservation Board Members

FROM: Bill Stanton and John Van Sciver

DATE: January 8, 1996

SUBJECT: Agenda Item 9, January 24-25, 1996, Board Meeting--
Water Rights Acquisition using Construction Fund Loans
Proposed revision to the Guidelines, Water Project Construction Fund Loan
Program.

BACKGROUND

In the fall 1995, the CWCB received applications from the Town of Georgetown and from ...
Aristocrat Ranchettes Water project, Inc. for loans to purchase water rights or water shares, for ..
municipal purposes.

The Guidelines currently state (see page 3, paragraph 1.3.l.b.):

"The costs of acquisition of land and water rights are not eligible for CWCB funding
except as part of a project."

During discussion at the November 1995 Board meeting, board members commented on the
issue of making loans solely for the purchase of water rights:

· The loan must be for the purchase of water to satisfy an existing shortage.

· The water purchased must already be traded or available for municipal use on the
open market.

· The CWCB should not assist with the purchase of agricultural water rights, for
conversion to municipal use.

.

The CWCB should not encourage new, uncontrolled, development by providing
low interest loans for the purchase of water rights.

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.

An appraisal is needed to make sure the price to be paid for the water is fair, and