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<br />Agenda Item 4c. <br />March 12, 1996 <br /> <br />2 <br /> <br />The Company has a $38,100 commitment from the CFSA for the project. The remaining cost <br />(about $40,000) will be funded by the CWCB loan. Staff is recommending a loan amount of <br />up to $51,700 in the event that the final design cost estimate exceeds the current estimate. <br />Water diverted by the Bravo Ditch is used for agricultural purposes. The loan should thus be <br />at the "Agricultural" rate of 4.25% for 30 years, as set by the CWCB November 6, 1995. <br /> <br />The Company needs to complete the rehabilitation project prier to nmoff in 1996 as soon as <br />possible, to allow irrigation diversions ffi!9% without the need for temporary sand dams. This <br />loan may be from the Small Project Loan Account, because the loan amount is not more than <br />$100,000, and because the delay associated with General Assembly approval would result in <br />undue hardship on the borrower. <br /> <br />COLLATERAL <br /> <br />The CWCB can take a collateral interest in this stream of revenue from shareholder assessments. <br />The Company will put one payment in a CD to be held by the State Treasurer. <br /> <br />STAFF RECOMMENDATION <br /> <br />The staff recommends: <br /> <br />1. That the CWCB fmds that the Bravo Ditch Company is eligible to apply for a <br />loan from the Small Project loan Account because the loan amount does not exceed <br />$100,000, and because delay in completing the project would result in undue <br />hardship on the Borrower, and <br /> <br />2. That a Small Project construction fund loan in an amount of $51,700, not to <br />exceed 75% of actual project costs, be approved for The Bravo Ditch Company to <br />rehabilitate the Company's diversion structure on the South Platte River, and <br /> <br />3. That the financing terms shall be at an annual percentage rate equal to <br />the "Agricultural" rate of 4.25% (as set by the CWCB November 6, 1995), <br />for a duration of 30 years, and <br /> <br />4. That loan approval shall be contingent upon completion of the feasibility study, <br />and upon all standard contracting provisions of the CWCB, as determined by the <br />CWCB Director, and <br /> <br />5. That security for the loan shall be a collateral interest in the stream of income <br />derived from shareholder assessments, and one annual payment in the form of a CD <br />to be held by the state Treasurer. <br />