PROJ00496

• Contract/PO #: C153523
• Contractor Name: Fort Collins, City of
• Contract Type: Loan
• Water District: 3
• County: Larimer
• Bill Number: SB 88-30
• Loan Projects - Doc Type: Contract Documents

Form 6-At;;02A fR Sl8S}
WIPB

,fr 8'9765
~RTMENT OR AGENCY ,..UMBER
34-04-00

LOAN REPURCHASE
CONTRACT

$2,425,342.31

THIS CONTRACT. made- this 18th day of Auoust 198.!!..., by and between the-
Slale of Colorado for the use and bene-fit of tile Deparrment of'1 Natural Resources
(Colorado Water Conservation Board),
hereinafter ~ferred to as the Stale. lInd':;: t~e Ci tv of Fort Collins f
P. O. Box 580, Fort Coll~ns. CO 80522,
ht-reinafler referred to as the contractor.lContractor.

WHEREAS, authority exists in the Law and Funds have been budgeted. appropriated and otherwise made
available and a sufficient unencumbered balance thereof remains ~i1able for payment in Fund Number 4008 .
ClL ACCOlml Number 5.13 2X . Conlracl Encumbrance Number j,~~1: and
ABL Account No. ~4320, Org. Unit 77-77~777,
WHEREAS, required appru~3nce ~md coordination has b~n 'accomplished from and with .appropriate
agencies: and

wHEREAS. the U.S. Department of the Interior (Interior) was
.direc~ed by .the Budget Reconciliation Act of 1987 to sell ~he
asset~ of its Bureau of Reclamation (Bureau) Small Project Loan
progum; and

WHEREAS. the Bureau has determined that there are eight
Coloraao borrowers with small project loans to be included in
the loan sale; and

WHEREAS. the borrowers were offered the first opportunity
by Interior to prepay their outstanding loans at an
advantageous discount rate resulting in significant potential
savings to those borrowers provided that the outstanding loans
were prepaid prior to A~gust 18. 1988; and

WHEREAS. the 1988 General Assembly en6cted Senate Bill 30.
which authorizes the state to loan funds trom the COlorado
Water Conservation Board Construction Fund to eight named
Colorado borrowers. including the Contractor. to repurchase
from the Bureau the out6tandin~ loan the Contractor has with
the Bu.re6u; and

WH~REAS. Senate Bill 30 also authori.is the State to loan
to the Contractor one hundred percent (100\) of the amount
necessary to repurchase the outstanding loan provided that the
State determines that this is necessary to make it financially
possib~e for the Contractor to repurchase the_loan; and

WHeREAS, the Contractor has an outstanding loan of Four
Million Five Hundred Ninety-Eight Thousand Dollars and No Cents
($4.598.000.00) under the Small Project loan program; and

WHEREAS. the Contractor makes annual repayment of Varying
amounts. has a satisfactory record of timely repayments. and is
scheduled to complete its repayment Obligation in January 1.
2000; and

WHEREAS. the Contractor has received an offer to repay its
outstanding loan from Interior at a discount rate of twelve and
ninety two one hundredth6 percent (12.92\). reguiring a
prepayment of TWo Million Four Hundred TWentY-Five Thousand
Three Hundred Forty-TWo Dollars and Thirty-One Cent8
($2.425.342.31);_and

WHEREAS. the Contractor finds that the prepayment discount
results in an advantageous loan refinancing opportunity. and
therefore it desires to obtain Construction Fund loan
assistance from the State to prepay its Interior loan: and

WHEREAS. the State finds that it is necessary to loan the
Contractor one hundred percent (lOO~) of the amount of the

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