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Feasibility Study Rehabilitation of the Excelsior Ditch July 1996; Updated March 1998 Page 16 I I I I I I I I I I I I I I I I I I I CWCB financing will consist of210ans, one for each phase of the project. A Small Project loan in amount of$IOO,OOO will be provided for Phase I. The remaining $293,500 will be provided by the Borrower. The annual payment for the Phase I loan will be approximately $5606, representing a cost of $1.68 per share per year, and $1.32 per acre-foot average diversions per year. See Table I. A Standard Construction Fund Loan in amount of$230,000 will be provided for Phase 2. The remaining $104,500 will be provided by the Borrower. The annual payment for the Phase 2 loan will be approximately $12,900, representing a cost of$3.87 per share per year, and $3.04 per acre-foot average diversions per year. See Table 2. Economic benefits, and income projections from the project, are estimated at $56,000 per year. Financial statements for the Majority shareholderlBorrower indicate adequate financial condition to repay the loan. See Appendix G. OM&R costs for the project are estimated to be $5,000 per year. COLLATERAL The Excelsior Irrigating Company has the following collateral it can offer for the CWCB loan, in this order of preference: 1. The project itself. The project will be owned by the Excelsior Irrigating Company and can be offered by vote of the Board of Directors. 2. A portion of the revenues from the Excelsior Ditch Project. The project will generate income from the crops grown on the project lands. A portion of that income can be pledged to repayment of the loan. 3. Revenue generated by leasing a part op the Excelsior Ditch water to Arkansas Groundwater Users Association. 4. Excelsior Ditch water rights valued at approximately $1,700,000.