Two Rivers Water & Farming Company of Denver, Colo., has received phase-one financing to launch its Arkansas (River) Storage Facility.
The $9,999,000 million 1.25% loan was approved by the Colorado Water Conservation Board on the initial 4,110 acre-foot phase of the storage project which is priced at $12.5 million for completion at 25,000 acre-feet.
Two Rivers and the Colorado Front Range water districts have been negotiating the development of the series of gravel reservoirs east of the confluence of Fountain Creek and the Arkansas River in Pueblo County, Colo.
The Arkansas Storage Facility's location will capture municipal return flows via a 100% gravity-in, and release them by an 80% gravity out flow through the Excelsior Ditch.
Two Rivers entered into an agreement to purchase 53.77% of the Excelsior Ditch in early May, 2013.
In 2009, when Two Rivers opened a new western water business model combining irrigated farming with wholesale water infrastructure development, the idea was considered revolutionary in the ag water world.
Instead of buying water assets with the expectation to sell the assets of its primary source of revenue as most western water business models do, Two Rivers' business model operates high value vegetable farms and collaboratively develops water projects with other water users to generate its revenues and earnings.
"We are very pleased to receive approval from the Colorado Water Conservation Board for the loan," says Two Rivers CEO John McKowen. "Not only does the loan assist with our reservoir development on very favorable terms, which lowers the cost of water for all water users, it also further endorses our collaborative business model which increases water efficiency without buying up and drying our most productive local farmland."
Two Rivers believes that rotational fallow farming is the best method to preserve water in agriculture.
The company produces and markets high value vegetables and fodder crops on its irrigated farm land and provides wholesale water through agreements with others.