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<br />ToWll of Paonla - Water Right. Purcha.e <br />November 25-26, 2002 . <br /> <br />Agenda Item 201 <br /> <br />Water Project Construction Loan program.ProjectOata <br /> <br />e <br /> <br />Borrower: <br /> <br />Town of Paonia <br /> <br />County: Delta <br />. Project Type: Water Rights Purchase <br />Water Source: Springs <br />Funding Sources: CWCS, Town ofPaonia <br />Aver. Delivery: 129 ae-ft. (demand reduction) <br /> <br />Project Name: Ark Land Property <br /> <br />Drainage Basin: Gunnison <br /> <br />Total Project Cost:. $1,900,000 <br /> <br />Type of Borrower: Municipal (Low-Income) <br /> <br />CWCB Loan: $1,710,000 <br /> <br />Interest Rate: 3.75% <br /> <br />Term: 30 years <br /> <br />The Town of Paonla, acting by and through Its Water Fund (enterprise fund), is seeking a loan for <br />$1,710,000 for the purchase water rights. The purchase of water rights will be in the form of a buy- <br />back of 317 unused out-of-town water taps, relieving the Town of a severe strain on its water supply. <br />capability, and Implementing the first step in longer-term raw Water Supply Master Plan strategy.. <br />The 317 unused water taps were committed for li;lnd development as part of a 1976 agreement in <br />which the Town exchanged 400 out-of-town wat~r taps in return for water rights on German Creek. <br />The Town has been working with The Conservation Fund, a national non-profit land .and water <br />conservation organization, to re-acquire control o.fthe 317 unused water taps. through the purChasee <br />. of the 770 .acre Ark Land Property (ALP), south and east of the Town. In acquiring the ALP the <br />Town would relieve itself of a significant potentiai strain on its water supply system due to . <br />development pressures, and mitigate the necessity of immediate construction of a major water <br />storage project. It would also helve the added benefit of preserving a significant amount of . <br />developable land In agriculture. After acqulsitlol1, the Town's plan .is to sell the land, less the water <br />taps, to an adjacent ranching operation, thereby iconserving a significant portion of the land in open <br />space and agricultural production. <br /> <br /> <br />e <br /> <br />Location Map <br /> <br />Page 8 of 8 <br />