CT2015-174 Contract

• Contract/PO #: CT2015-174
• Contractor Name: Uncompahgre Valley Water Users Association
• Contract Type: Loan
• County: Montrose
• Loan Projects - Doc Type: Contract Documents

BORROWER: UNCOMPAHGRE VALLEY AGENCY NAME: COLORADO WATER
WATER USERS ASSOCIATION CONSERVATION BOARD
REQUESTED LOAN AMOUNT: $6,930,000 CONTRACT TYPE: LOAN/PRIVATE
LOAN ORIGINATION FEE: $69,300 CWCB CMS:79884/CORE:CT2015-174
TOTAL LOAN AMOUNT: $6,999,300
LOAN CONTRACT
This contract ("CONTRACT" or "LOAN CONTRACT")) is made between the State of
Colorado for the use and benefit of The Department of Natural Resources, Colorado
Water Conservation Board ("CWCB" or "State"), and Uncompahgre Valley Water Users
Association, 601 N. Park Avenue, Montrose, CO 81401 ("BORROWER"), a Colorado
nonprofit corporation.
FACTUAL RECITALS
1. CWCB authority exists in the law, and funds have been budgeted, appropriated and
otherwise made available and a sufficient unencumbered balance thereof remains
available for encumbering and subsequent payment of this CONTRACT; and
2. Required approval, clearance, and coordination have been accomplished from and
with appropriate agencies; and
3. On May 21, 2015 the CWCB approved a loan request from the BORROWER for the
Drop 5 Hydroelectric project ("PRoJEcT") to design and construct a 2.2 megawatt
hydroelectric facility. The total estimated project cost is $7.7 million. The total loan
amount of $6,999,300 which includes a one percent (1%) loan origination fee of
$69,300 is payable over 20 years at an interest rate of 2.0%; and
4. The PROJECT SUMMARY, attached as APPENDIX 1 and incorporated herein, contains
BORROWER Information (Section 1), the PROJECT Description (Section 2), CWCB's
authority for making this loan (Section 3), and CWCB Approval and Legislative
Authorization (Section 4), identifying the amount of the loan and the terms of
repayment. The PROJECT SUMMARY also contains sections on BORROWER'S debt,
collateral, procedures and eligible expenses.
5. The CWCB now desires, by this CONTRACT, to loan money to the BORROWER for this
PROJECT upon mutually agreeable terms and conditions.
THEREFORE, in consideration of the mutual and dependent covenants contained
herein, the parties agree as follows:
A. LOAN PROVISIONS
1. Loan Origination Fee. The amount of the loan (LOAN AMOUNT) shall include (1) the
amount of the funds loaned by the CWCB to the BORROWER for the PROJECT and (2)
a loan origination fee of one percent (1%) of the PROJECT amount. In the event that
the BORROWER does not use the full LOAN AMOUNT authorized, the parties shall
amend this CONTRACT to revise the LOAN AMOUNT including adjustment of the loan
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