PROJ00091

• Contract/PO #: C153706
• Contractor Name: Lower Arkansas Water Management Association
• Contract Type: Loan
• Water District: 67
• County: Prowers
• Bill Number: SB 96-124
• Loan Projects - Doc Type: Feasibility Study

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STAFF RECOMMENDATION

It is recommended that the Board authorize the staff to enter into contract negotiations with
the Lower Arkansas Water Management Association for a loan not to exceed $750,000 for the
purpose of securing option agreements on the following: (I) the X- Y Ranch with 66.0 cubic
feet per second (cfs) of surface water rights, 15 alluvial wells and approximately 3,000 acres
of presently irrigated land, (2) An additional 3.0 cfs of X- Y surface rights, and (3) 4,380
shares of the Manvel Canal and Irrigation Company.

Staff also recommends the loan be made subject to the following conditions:

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This loan shall in no way commit the Board ~ an-k,fU1/J1er financing for the
proposed J1fpi~ct..'. r14' ~ (~ ~'^-
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(b) Before re'lll:i"', r, I~'!l h.... hu~..illg, LA WMA will fully meet all requirements of the
authorizing legislation for the Arkansas River Augmentation Loan Account as specified
in C.R.S. 37-60-130.

(c) Before requesting long-term financing, LA WMA will provide the staff with sufficient
documentation and analyses in order that the Board can make a final determination of
feasibility.

(d) The lending rate for the present one-year loan will be 3.5 percent which represents the
Board's short-term agricultural lending rate. The lending rate for long-term fmancing
will be considered at such time as LA WMA applies for the entire purchase price of the
proposed project. / _ ~

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.J*'"'Oon Higbee, LA WMA
...-?'Duane Helton, Helton & Williamsen
P-'Fritz Holleman, Moses, Wittemeyer, Harrison and Woodruff
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