C150124 Feasibility Study

• Contract/PO #: C150124
• Contractor Name: Shultz Farm, Inc.
• Contract Type: Loan
• Water District: 0
• County: Weld
• Bill Number: MC3
• Loan Projects - Doc Type: Feasibility Study

I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I

Goal & Cost

Our goal is to remove 200,000 cubic yards of dirt making the capacity of Hill Lake
approximately 250 acre feet. The approximate cost to do this is $2.00 per yard, $400,000
to remove the dirt. Cost to dress the banks and some rip-rafting is $45,000., for an
approximate total for the project of $445,000.

Implementation Schedule

It is desired that the project be completed by mid April 2003, in time for the decreed
lakes to be filled by the ditch companies.

Permitting

No permit or easements will be required.

Financial Analysis

Shultz Farm Inc. is requesting a 30 year loan in the amount of $400,000., at the
agricultural lending rate of2.75%. This is 90% of the projected cost, resulting in an
annual payment of$19,753.77. The first 10 years would also require an annual payment
of $1975.38 to fund the Emergency Reserve Account, for a total annual cost of
$21,729.15.

Table 1. Financial Summary
Project cost.............. .........................................$445,000.00
Loan amount... ... ... ... ... ... '" ...... ... ... ...... .....$400,000.00
CWCB Loan payment including 10% reserve...... $ 21,729.15

Alternative Financing

No other long term, low interest loans are available.

Credit Worthiness

Shultz Farm Inc. has assets of approximately $5.2 million and debt ofapproximately $1.6
million. This debt is mostly due to the purchase of the property which includes Hill Lake
in August 2000. This debt is being repaid by the sale of small acreages from the 546 acre
property. The only farm related debt Shultz Farm Inc. has is for the 200 acre pivot
sprinkler on this property which has an annual payment of$14,419.84.

7