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<br />. <br /> <br />Colorado Water Conservation Board <br />Department of Natural Resources <br /> <br />721 State Centennial Building <br />1313 Sherman Street <br />Denver. Colotado 80203 <br />Phone (303) 866-3441 <br />FAX (303) 866-4474 <br /> <br />STAT_OF COLORADO <br /> <br />- <br /> <br />Roy Romer <br />Governor <br /> <br />MEMORANDUM <br /> <br />James S. Lochhead <br />Executive Director. DNR <br />Danes C. tile. P.E <br />Director. CWCB <br /> <br />TO: <br /> <br />Colorado Water Conservation Board Members <br /> <br />FROM: <br /> <br />Jan IlIian <br />Project Planning and Construction Section <br /> <br />DATE: <br /> <br />October 30, 1995 <br /> <br />, SUBJECT: <br /> <br />Agenda Item 23, November 6-7, 1995 Board Meeting - <br />Water Project Construction Loan Program <br />LONE CABIN DITCH AND RESERVOIR COMPANY: Interest Rate Reduction <br /> <br />BackQround. <br /> <br />Lone Cabin Ditch and Reservoir Company (Lone Cabin) entered into Loan Contract <br />#C153517 with CWCB on July 15,1988, (amended June 28,1989). The loan amount <br />was $92,700 with terms of 5% interest for 40 years, for an annual payment of $5.402.56. <br /> <br />Discussion. <br /> <br />At the January 19, 1994, meeting, the CWCB considered a request by Lone Cabin to <br />reduce the interest on their loan from 5% to 3% (copy of board memo attached). The <br />Board agreed to refinance the unpaid balance at an interest rate of 3% and granted a one <br />year deferral of their annual payment. <br /> <br />The contract amendment was prepared and submitted for signatures. The Attorney <br />General's Office determined that, according to statutes, while the CWCB could defer <br />payments, it did not have the authority to reduce interest rates. The CWCB could <br />recommend interest rates, but the General Assembly gives final approval. <br /> <br />In discussing the interest rate situation with James Briscoe, President of Lone Cabin, he felt <br />that had the'issue been resolved in 1994, Lone Cabin would now be enjoying the benefits <br />of the lowered interest rate. He requests that the 3% interest rate be made effective with <br />the 1994 payment. Attached is a copy of his letter dated November 6, 1995, addressing <br />these matters. <br /> <br />""----' <br />