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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />$44,000 per year. Woodward-Clyde's estimated annual cost for CWCB loan repayment, <br />0& M, and insurance for the project of $45,080 compares favorably with the annual benefit of <br />$51,000. <br /> <br />8.3 ECONOMIC FEASmILITY SUMMARY <br /> <br />Comparing the economic value of hay for the Labrouche property only ($51,000/year), the <br />Phase 1 construction cost including construction, engineering, insurance and loan interest of <br />$45,080 is economically feasible. If the Labrouche's can lease the remaining stored water, the <br />economic feasibility only improves. <br /> <br />8.4 FINANCIAL FEASmILITY <br /> <br />The VRA has demonstrated that the collateral for the loan is more than sufficient to cover the <br />value of the loan. It appears the costs associated with rehabilitating the dam would be well <br />invested compared to the value of the water that would otherwise be lost. The VRA is <br />requesting from the CWCB construction loan program a loan of $600,000 over 20 years at an <br />interest rate of 3.75 percent. The annual payment for this loan is $43,177.26. The total <br />estimate project cost is $1,025,900. The amount of this loan is within the 75 percent of the total <br />construction cost loan amount required by the CWCB. <br /> <br />The Labrouche's unaudited financial statements for 1994 and 1995 indicate a net annual <br />operating income of approximately $100,000 per year. The Labrouche's are willing to use the <br />following as collateral for the CWCB loan: (1) the Vouga Reservoir site, (2) the Vouga <br />Reservoir storage rights of920 ac-ft, (3) approximately 680 acres of irrigated land downstream <br />from the Vouga Reservoir Site, and (4) the direct flow water rights used to irrigate the 680 <br />acres. <br /> <br />8.5 SUMMARY <br /> <br />Based on the preceding economic and financial analyses, the project is feasible. <br /> <br />242161R1.DOC 02-12-97(3,08PM)/RPT <br /> <br />8-2 <br />