Laserfiche WebLink
<br />. <br /> <br />. <br /> <br />. <br /> <br />Agenda Item 16b. <br />May 12, 1998 <br /> <br />Page 2 <br /> <br />The CRPOA has made an offer to Kiowa Resources to purchase 50 shares of Fulton Ditch water <br />at a price of about $4500 per share. This price represents fair market value for these shares. <br />Regardless of the water rights ultimately purchased, a written opinion of value will be provided <br />by the Borrower as a condition of obtaining the CWCB loan. <br /> <br />During a property owner meeting held February 14, 1998, the CRPOA voted to purchase water <br />rights, and they have been actively pursuing that goal. The price of water shares is rising, and the <br />CRPOA felt it necessary to acquire the shares as soon as possible. If they were to delay the <br />purchase until June 1999, adequate water rights may not be available, and the price of the water <br />could be prohibitive. Either event would constitute a hardship. For these reasons, the loan may <br />be made from the Small Project Loan Account. <br /> <br />The CRPOA is a residential subdivision in unincorporated Adams County surrounded by land <br />annexed to Commerce City. Commerce City had a median household income less than 80% of <br />the statewide average in 1990. The City of Brighton, located about 6 miles to the north, had a <br />median household income of 90% of the statewide average in 1990. Homes in the Columbine <br />Ranches Subdivision range from small ranch style houses to large modern homes. Although the <br />surrounding communities indicate a low-income rate might apply, housing within the subdivision <br />is more typical of that found in standard income communities. The CRPOA has requested a 10- <br />year loan. For these reasons, staff is recommending a 4.5% per annum loan, for a duration of 10 <br />years. (This is equivalent to the "Standard Income" municipal rate for a lO-year loan, as <br />approved by the CWCB in November 1997.) <br /> <br />COLLATERAL <br /> <br />The CRPOA will establish an annual assessment for each lot to repay the CWCB loan. The <br />CWCB will take a security interest in this stream of revenue. The CRPOA will own the water <br />rights acquired for augmentation of their well. These water rights will be collateral for the loan. <br /> <br />STAFF RECOMMENDATION <br /> <br />The staff recommends: <br /> <br />1. That the Board finds that delay in the rehabilitation of their existing irrigation well, or <br />delay in the purchase of water rights to augment that well, would cause undue hardship <br />for the residents, qualifying the Columbine Ranches Property Owners Association for a <br />loan from the Small Project Loan Account, and <br /> <br />2. That a loan from the Small Project Account of the Construction Fund, in a maximum <br />amount of $100,000, be approved for the Columbine Ranches Property Owners <br />Association to rehabilitate their existing irrigation well and to purchase water rights to <br />augment that well, and <br />