PROJ00111

• Contract/PO #: C153694
• Contractor Name: Castle Pines North Metro District
• Contract Type: Loan
• Water District: 8
• County: Douglas
• Bill Number: HB 95-1155
• Loan Projects - Doc Type: Contract Documents

Colorado Water Conservation Board
Department of Natural Resources

721 Stale Centennial Building
1313 Shennan Street
Denver, Colorado 80203
Phone [phone]
FAX [phone]

STATt uP COLORADO

o

Roy Romer
Governor

MEMORANDUM

James S. Lochhead
Execntive Director, DNR
Daties C. lile, P.E.
DirectOr, CWCB

TO: Bill Stanton, Chief
Project Planning and Construction Section

FROM: Bill Green '15 f3/
Manager of Planning .

DATE: November 16, 1995

SUBJECT: Evaluation of Loan to Castle Pines North Metro District - Well Rehabilitation

INTRODUCTION

The purpose of this memorandum is to SUIl1IJlarize the results of the CWCB staff evaluation of
the Castle Pines North Metro District's proposed project, financial condition, and ability to
repay a $301,500 Construction Fund loan.

BACKGROUND

In November 1994, the Board recommended conditional approval for: (1) an emergency loan
of $100,500 and, (2) a long-term loan of $301,500 to the Castle Pines North Metropolitan
District (CPNMD) in Douglas County for the rehabilitation and improvement of three existing
non-tributary wells which constitute the District's main existing source of water supply. The
$100,500 emergency loan would be repaid with a part of the proceeds of the long-term loan.
Because the District had recently emerged from bankruptcy, the Board directed that "...both
loan approvals shall be contingent upon staff evaluation of the District's financial condition
and ability to pay."

In January of 1995, the Board approved a lending rate of 5.0 percent for a IS-year loan. The
median household income (MHI) for Castle Pines North was not available but MHI figures
for the nearby communities of Castle Rock and Parker indicated a lending rate for a high
income municipal area.