Laserfiche WebLink
<br />10/05/2005 16:46 <br /> <br />KROSS <br /> <br />9702064458 <br /> <br />PAGE El2 <br /> <br />e <br /> <br />. Page 2 <br /> <br />October 5, 2005 <br /> <br />purchased February 2, 2001, three hundred (300) shares of Patron Preferred Stock <br />purchased February 2, 2001, and contract rights for growing and selling beets <br />associated with these stock. We estimate the value of this additional collateral to be <br />in excess of $130,000. <br /> <br />With regard to collateral coverage, also please note that the large ownership group of <br />Buffalo Farms Water Development, LLC has also pledged personal repayment of the <br />loans, if necessary. This fact, together with the additional collateral that we are willing <br />to pledge, should provide more than adequate security for the requested loan <br />amount. <br /> <br />The estimated revenues from the proposed project will remain the same or will <br />increase from the original feasibility study, based on increased value of the market <br />rates for augmentation water (current market rate is $20.00 per acre foot). The new <br />debt service payment for the requested loan will be about $13,750 per year, which <br />represents a cost of $9.82 per acre-foot of water diverted. Our ability to make loan <br />payments will only improve over the period of the debt retirement because the loan <br />payment remains constant while the value of excess augmentation water will <br />continue to increase. <br /> <br />e <br /> <br />The Managers of Buffalo Farms Water Development, LLC formally request that the <br />Colorado Water Conservation Board approve an increase to Loan Contract No. <br />C150191 to an amount of $ 277,245. We request that this matter be referred to the <br />November 2005 meeting ofthe Board. <br /> <br />If you have any questions, please contact me. <br /> <br />Thank you. <br /> <br />Regards, <br /> <br />~ c... <:j~ <br /> <br />Burton C. Kross, Manager and Member <br /> <br />e <br /> <br />