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<br />Silver Springs Trout Farm I Sherwood Trust <br />November 19-20, 2001 <br /> <br />Agenda Item 22a. <br /> <br />Credit worthiness: The SSTF / ST has an existing private loan with Ray Thompson of <br />Glenwood Springs, Colorado. The outstanding balance of this loan is $344,010. Loan approval <br />will be subject to an acceptable credit report from this lender. Table 3 shows the Financial <br />Ratios for the SSTF / ST and indicates two ratios in the strong category and one in the weak <br />category with the $365K CWCS loan in place. Company income has been improving from year <br />to year since the hatchery has been placed back in operation. <br /> <br />Table 3. Financial Ratios- Silver Springs Trout Farm <br /> <br />Financial Ratio Without With <br /> The oroiect The Droiect <br />Operating Ratio (revenue/expense) 140% 170% <br />weak: less than 100% (strong) (strong) <br />average: 100% - 120% <br />stronn: nreater than 120% <br />Debit Service Coverage Ratio 149% 268% <br />(revenues-expenses)/debt service (strong) (strong) <br />weak: less than 100% <br />average: 1000/0 - 125% <br />strano": areater than 125% , <br />Cash Reserves to Current Expense 59% 35% <br />weak: less than 50% (average) (weak) <br />average: 50% - 100% <br />strann: nreater than 100% , <br />Annual Cost per Acre-Foot N/A N/A <br />weak: greater than $20 <br />average: $10 - $20 <br />strona: less than $10 <br /> <br />As security for the loan the SSTF / ST will pledge a first interest in real estate of value at least <br />equal to the loan amount. This security is in compliance with CWCS Loan Policy #5 (Collateral). <br /> <br />Recommendation <br />Staff recommends a CWCS loan in amount of $365,000 (for up to 90% of total project costs) to <br />the Silver Springs Trout Farm Inc. / Daniel A. and Jacqueline P. Sherwood Trust to rehabilitate <br />the Silver Springs Trout Farm hatchery and to refinance debt associated with rehabilitation work <br />already completed. The recommended term of the loan is 15 years and the recommended <br />lending rate is 3%. Security for the loan will be a first interest in real estate and water rights of <br />value at least equal to the loan amount. The loan will be funded from the Construction Fund. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon all other standard <br />contracting provisions of the CWCS. <br /> <br />cc: Dan Sherwood, 13221 Marine Road, Montrose, CO 81401 <br />Ed Frazar via emali <br />Linda Bassi, AGO <br /> <br />Attachment <br /> <br />,C:\WP51\Proj-New\Sherwood-SilverSprings11 01 memo: <br /> <br />L:\boardmem\Nov01\22a Nov 01 Sherwood <br /> <br />4 <br />