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

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Ability to Repay CWCB Loan

Shultz Farm Inc. cash rents its farmable ground, 500 acres, to Double S Farms, Inc. for
$40,000.00 per year.

Table 2. Farm Related Income & Expenses

Income:
Cash Rent (Land)...................... ......$40,000.00
Mineral Rights...... ......... ............. ..... .4, 560.00
House Rent..................... .......... ........9.600.00

$54,160.00

Expenses:
Water & Ditch Assessments... ...... .......$ 6,850.00
Property Taxes... ... ......... '" ... ...... ... ...12,000.00
Insurance................................. ........6,400.00
Sprinkler Payment..................... .......14,419.84
CWCB Payment.................. ..............21.729.15

$61.398.99
$ -7,238.99

With the additional storage capacity and available water the cash rent for the farm land
can be increased by $7500.00.

Collateral

Shultz Farm Inc. has a 152 acre parcel of irrigated farm land free oflien, valued at
$3290.00 per acre, $500,000.00 total. This can be used for collateral on this project. A
copy of the letter stating a broker's opinion of value is included on page 9 of this report.

Economic Analysis.

The economic benefit of the project is viable. Rehabilitating Hill Lake will give it the
ability to accept and store the amount of its river decree. Over sizing the lake will create
the ability to utilize the amount of the decree and also store other available water. Hill
Lake will be a healthier lake if it is not totally drained every year.

Social & Physical Aspects

The Project will have no significant social impacts. The physical impacts of the project
are that Hill Lake will become a healthier and more maintainable lake.

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