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<br />AGENCY NAME: Water Conservation Board
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<br />AGENCY NUMBER: PDA
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<br />ROUTING NUMBER: OJ.--
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<br />$1 ,600,000
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<br />LOAN CONTRACT
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<br />THIS CONTRACT, made this J.!f!)}day of December 2000, by and between the State of
<br />Colorado for the use and benefit of the Department of Natural Resources, Colorado Water
<br />Conservation Board, hereinafter referred to as the CWCB and/or STATE, and The Tunnel Water
<br />Company, a Colorado nonprofit corporation, P.O. Box 1584, Fort Collins, Colorado 80522 hereinafter
<br />referred to as the BORROWER and/or CONTRACTOR.
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<br />FACTUAL RECITALS
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<br />1. Authority exists in the law, and funds have been budgeted, appropriated and otherwise made
<br />available and a sufficient unencumbered balance thereof remains available for payment in Fund
<br />Number 424, Organization YVYV, Appropriation EIA, GBL 0052, Program WTRC, Object Code
<br />5881, Reporting Category: 0052, Contract Encumbrance Number C150052 as follows: an amount
<br />not to exceed $1,500,000 from current funds available in the Emergency Infrastructure Account
<br />and the balance of the loan when the Emergency Infrastructure Account if replenished in the 2001
<br />Construction Fund Bill.
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<br />2. Required approval, ciearance, and coordination have been accomplished from and with
<br />appropriate agencies.
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<br />3. Pursuant to the provisions of SS 37-60-119 and 37-60-120, C.R.S. (2000) the STATE is authorized
<br />to loan money for the construction of water projects for the benefit of'the people of the State,
<br />provided that the borrower assures repayment of that money.
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<br />4. Section 37-60-122.6, C.R.S. (2000) authorizes the STATE to loan money from the Emergency
<br />Infrastructure Account for projects that it determines are necessary to avoid unreasonable risk
<br />of injury or damage to human health or well-being or to property or crops when the STATE also
<br />determines that the emergency condition is not the result of negligence in the operation or
<br />maintenance of the infrastructure and that the viability or success of the emergency project is
<br />not dependent upon further appropriations or loans.
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<br />5. The BORROWER is a duly constituted Colorado mutual ditch company formed pursuant to and
<br />governed by Articles 42 and 121 of Title 7, C.R.S., located in Larimer County, State of Colorado.
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<br />6. The BORROWER has applied to the STATE for a loan in the amount of $1,600,000 to be used for
<br />the rehabilitation of the Laramie-Poudre Tunnel, hereinafter referred to as PROJECT, at a total cost
<br />of $1,770,000. A portion of the Laramie-Poudre Tunnel collapsed on May 28, 2000, plugging the
<br />tunnel so that no water delivery is possible. Without rehabilitating the tunnel, the BORROWER will
<br />not be able to deliver water to its shareholders in 2001, which threatens the viability of the
<br />shareholders' crops.
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<br />7. The STATE has reviewed a feasibility report compiled by John Van Sciver using information
<br />provided by the BORROWER and Don Deere, P.E., which is incorporated herein by reference, and,
<br />based upon this feasibility report, the STATE determined the PROJECT to be technically and
<br />financially feasible. \
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<br />8. At its September 25, 2000 meeting, the CWCB approved a loan to the BORROWER from the
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<br />The Tunnel Waler Company
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<br />Loan Contract
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