Cedaredge still working on water payoff financing
By Hank Lohmeyer
Published Thursday, January 19, 2017 10:15 am
The Town of Cedaredge is still working on financing a way for paying $175,000 to Upper Surface Creek Domestic Water User's Association (USC) in a court-mediated settlement agreement
The payment was to have been made by the end of 2016, according to documents. A planned deal to refinance a current town water line loan with USDA Rural Development and roll the $175,000 into the new loan providing cash for the USC payoff (as when people refinance a mortgage to obtain cash) has not come together.
At their Jan. 12 work session, town trustees heard from staff that a refinance deal with a commercial bank is being explored that might provide the $175,000 payoff amount. A Feb. 23 closing on the proposed $2 million deal is currently hoped for.
The court-mediated agreement between the town and USC called for payment to USC of either $175,000 cash by the end of 2016, or payment of $1,000 per month over the next two decades -- a $210,000 total payout. Town officials chose the $175,000 payment option, but the payment deadline has been missed and financing arrangements are still being explored.
The town has agreed to pay the money to USC to buy out its interest in Cedaredge's domestic water utility collection and treatment system.