|
<br />AGENCY NAME: Colorado Water ConseNation Board
<br />GENCY NUMBER: PDA
<br />ROUTING NUMBER: 010-;6
<br />,
<br />
<br />$825,000
<br />
<br />LOAN CONTRACT
<br />
<br />THIS CONTRACT, made this ;;) -)~ day of A#t/. 1997, by and
<br />between the State of Colorado for the use and benefit of the Department of Natural Resources,
<br />Colorado Water Conservation Board (CWCB), hereinafter referred to as the STATE, and the Horse
<br />Creek Water Users Association, a Colorado nonprofit ccrporation (HCWUA), 4234 County Road 2B,
<br />Rush, CO 80833, hereinafter referred to as the BORROWER and/or CONTRACTOR.
<br />
<br />FACTUAL RECITALS
<br />
<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 YYYV, Appropriation HCA, GBL H771, Program WTRC, Object Code
<br />5120, Reporting Category: 3771, Contract Encumbrance Number C153771.
<br />
<br />2. Required approval, clearance, and ccordination have been acccmplished from and with appropriate
<br />agencies.
<br />
<br />3. Pursuant to 9 37-60-122.4(3), C.R.S. (1997), the STATE is authorized to make loans from the Horse
<br />Creek Basin Account of the Construction Fund to finance the ccsts of acquiring water rights for
<br />augmentation, the engineering and legal ccsts of adjudication of an augmentation plan, and the
<br />ccsts associated with obtaining an operating agreement to facilitate said augmentation plan for
<br />water users in the Horse Creek Basin area.
<br />
<br />4. The BORROWER is a duly ccnstituted Colorado non-profit ccrporation located in Linccln County,
<br />Colorado and formed under Articles 20 to 29 of Title 7, C.R.S. for the primary purpose of providing
<br />water to its members, whose wells are located in EI Paso, Elbert, and Linccln Counties in the Horse
<br />Creek drainage.
<br />
<br />5. The BORROWER has applied to the STATE for a loan in the amount of $825,000 to be used to
<br />finance the purchase of certain water rights from the Box Springs Canal and Reservoir Company
<br />and individual shareholders of the Box Springs Canal and Reservoir Company ("Box Springs Water
<br />Rights"), the engineering and legal ccsts of setting up and adjudicating an augmentation plan, and
<br />the ccsts associated with obtaining an operating agreement to facilitate said augmentation plan, as
<br />part of a settlement agreement in Case No. 95 CW 211 in the District Court, Water Division 2,
<br />hereinafter ccllectively referred to as the PROJECT. The parties in Case No. 95 CW 211 (the
<br />BORROWER, the Colorado State Engineer, Box Springs Canal and Reservoir Company ("Box
<br />Springs"), and the individual shareholders of Box Springs) entered into said settlement agreement,
<br />which is inccrporated herein by reference, on January 29, 1997 ("Settlement Agreement").
<br />
<br />6. The BORROWER entered into a Water Rights Purchase and Sale Agreement with Box Springs and
<br />individual shareholders of the Box Springs Canal and Reservoir Company (Box Springs and said
<br />shareholders hereinafter collectively referred to as "Box Springs Sellers") on January 29, 1997, for
<br />the purchase of the Box Springs Water Rights ("Purchase Agreement"), which is inccrporated
<br />herein by reference.
<br />
<br />7. The BORROWER, the Box Springs Sellers, and the First National Bank of Limon ("Escrow Agent")
<br />
<br />The Horse Creek Water Users Association
<br />
<br />Page 1 of 11
<br />
<br />Loan Contract
<br />
|