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r <br /> The Board tabled the funding request at the November 1996 meeting until the applicants could <br /> submit a feasibility study and financial information for Vail Associates and in order to allow the <br /> t staff additional time to prepare a response to the Board's questions regarding collateral for the <br /> requested loan and the extent of the Board's participation in the financing of the proposed <br /> project. <br /> BOARD'S CONCERNS <br /> The Board's concerns as expressed at the November 1996 meeting were,to the best of our <br /> recollection: (1)the lack of a feasibility study, (2) the lack of any financial information for Vail <br /> Associates, (3)whether alternate sources of financing had been explored by the applicants, (4) <br /> the amount of financing requested by the applicants as a percent of total project costs and the <br /> value of the collateral, and (5) similarities or differences of the proposed financial and <br /> institutional arrangements for the Eagle Park Reservoir Co. as compared with the Clinton Ditch <br /> and Reservoir Co. <br /> (1) Feasibilily Study <br /> This month,the Eagle River Water& Sanitation District,the Upper Eagle Regional Water <br /> Authority,and Vail Associates Inc. submitted a draft feasibility study prepared by Helton & <br /> Williamsen of Englewood. The feasibility study, along with previous submittals by the <br /> applicants over the last several months, generally provides adequate information for a <br /> determination of the technical and economic feasibility of the project and with regard to the <br /> financial capacity of the three public entities. The feasibility questions that we believe remain <br /> unanswered involve the financial capacity of Vail Associates which will have an estimated 55 <br /> percent ownership interest in the entire project. <br /> (2) Vail Associates Financial Information <br /> Also this month, Vail Associates submitted their consolidated balance sheets for 1995 and 1996, <br /> consolidated statement of operations for 1996 (both without accompanying notes) and copies of <br /> Vail Resorts Inc. (the parent company) consolidated financial statements for 1994 through 1996. <br /> Staff review of the limited information provided concerning Vail Associates is summarized in <br /> Table 1. The table indicates that total debt and equity are relatively in balance for 1995 and 1996. <br /> Table 1. Financial Analysis for Vail Associates <br /> Stockholders Total Debt to <br /> Year Equity Liabilities Equity Ratio Net Income <br /> 1996 $183,911,393 $217,494,895 0.54 $16,985,788 <br /> 1995 $210,037,894 $170,196,677 0.45 Not Provided <br /> j 2 <br />