BOARD02479

• Board Meeting Date: 3/21/2002
• Description: CF Section - Four Seasons Trout Farm Fish Hatchery Rehabilitation Project
• Board Meetings - Doc Type: Memo

Four Seasons Trout Farm
March 21-22, 2002

Agenda Item 11

Table 3. Financial Ratios- Four Seasons Trout Farm

Financial Ratio Without With
The proiect The Droiect
Operating Ratio (revenue/expense) 126% 170%
weak: less than 100% (strong) (strong)
average: 100% - 120%
strona: nrealerthan 120%
Debit Service Cover<;lge Ratio No Debt 102%
(revenues-expenses)/debt service (strong) (Average)
weak: less than 100%
average: 100% - 125%
strona: areater than 125%
Cash Reserves to Current Expense 24% 20% .
weak: less lhan 50% (weak) (weak)
average: 50% - 100%
strona: areater than 100%
Annual Cost per Acre-Foot N/A N/A
weak: greater lhan $20
average: $10 - $20
strona: less lhan $10

As security for the loan the FSTF will pledge a first ij-lterest in real estate of value at least equal
to the loan amount. Real estate owned by the PSTA is valued at $225,000. This security is in
compliance with CWCB Loan Policy No.5 (Collateral).

.

Recommendation
Staff recommends that the CWCB find that Four Seasons Trout Farm / John Niblack is eligible .
for a loan from the Small Project Loan Account, The hatchery has tested positive for whirling
disease and can not operate. Delaying the project until summer or fall 2003 would jeopardize
fish production and result in undue hardship on the borrower.

Staff recommends a CWCB Small Project loan in ainount of $85,500 (for up to 90% of project
costs) to the Four Seasons Trout Farm / John Niblack to rehabilitate the Four Seasons Trout
Farm hatchery. The recommended term of the loanlis 10 years and the recommended lending
rate is 2.25%. Security for the loan will be a first interest in reai estate of value at least equal to
the loan amount, .

Staff also recommends a $1,435 grant from thEl CWCB Feasibility Study Small Grant Fund, to
pay for up to half of the cost of the engineering nec~ssary to complete the Feasibility Study.

Staff further recommends that final approval of the loan be conditioned upon all other standard
contracting provisions of the CWCB. '

cc: John Niblack, P.O. Box 21, Cedaredge, CO 81413
Ed Frazar and Norm Erthal via email
Linda Bassi, AGO

Attachment

C:IW P51 IProj-NewlF ourSeasons Trout302memo;

,
L:lboar~memIMar02111 - Mar 02 Four Seasons Trout

.