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<br />. <br /> <br />. <br /> <br />Agenda Item 9g <br />November 9, 1993 <br />Page two <br /> <br />for a total principal outstanding of $385,000. If $343,000 is financed for 30 years at 3.5% and <br />42,000 is financed for 30 years at 0%, the net effective interest rate for the total loan of <br />$385,000 will be about 3.15%. <br /> <br />2. The company is requesting 100% financing of the construction project, instead of <br />the standard 75%. They are also requestinjl a 0% loan for 40 years instead of the standard <br />4% for 30 years. <br /> <br />3. If the loan is approved and the work done, there is a possibility that some of the <br />stockholders with Lone Cabin would not pay there assessments and these assessments would <br />have to be picked up by the Minnesota shllreholders. <br /> <br />4. The Beaver Reservoir Company's financial condition and ability to pay have not <br />been rigorously evaluated by the CWCB s~aff. . <br /> <br />5. There are multiple use consider3tions. The reservoir is used for fishing, camping <br />and hunting by area residents at no benefit to the Beaver Reservoir Company. (Multiple use <br />was the rationale for reducing the interest rate on the emergency loan to the Summit <br />Reservoir Company by 0.5%.) '. i <br />.]- <br /> <br />6. Several individuals (Mr. Neil Thompson 'of th'; Beaver Res. Co., Mr. Jim Briscoe <br />of the Lone Cabin Res. Co., and Mr. Jim Johnson of Woodward-Clyde) are scheduled to <br />be at the Nov. 9,1993 CWCB Board meeting to address the board directly on theses issues. <br /> <br />STAFF RECOMMENDATION <br /> <br />" <br /> <br />The staff recommends the fOllowinG to get the issue on the table: <br /> <br />1,;/ .; <br />\ \-\ V. <br /> <br />...;~ ;" <br /> <br />, 'z>> <br />. -Q( <br /> <br />l <br />1. TIIAT A CONSTRUCTION F1JND LOAN IN AMOUNT OF $343,000 <br /> <br />./ ;I <br />( 3.5% for 30 YEARS ) BE APPROVED FOR THE BEAVER RESERVOIR <br />COMPANY, FOR TIlE REHABILITATION OF TIlE BEAVER RES. DAM, and <br /> <br />" <br /> <br />2. TIIAT THE APPROVAL OF THIS LOAL'! BE SUBJECf TO THE REVIEW <br /> <br />ii <br /> <br />, <br /> <br />OF THE BEAVER RESERVOIR COMPANY'S FINANCIAL CONDmON <br /> <br />,\ , <br /> <br />AND ABILITY TO PAY,and <br /> <br />1 . ~.. <br />, / <br /> <br />--:..\.,,'_: <br />- j <br /> <br />'"i (. <br />