OCR Text |
Show Report of the Regional Director U9* The total cost as shown above includes the cost of relocating a portion of State Highway \$ around the Virgin City Reservoir, estimated at $1,636^000 at July 1949 prices. Representatives of the State of Utah have agreed informally that the State of Utah would assume the cost of this highway relocation* The total Federal cost of the Dixie Project would then be $28,296,000 less $1,636,000 or f,26,660,000, Benefits 5>0«, Construction of the Dixie Project would result in substantial benefits from irrigation and power development, and lesser benefits from flood control, sediment control, fish and wildlife conservation, and recreation* The conservation and regulation of the available water resources to provide firm water supplies would increase agricultural production in the existing irrigated areas, thereby increasing the net income of the farmers, and would enable increasing the irrigated acreage by 13,6l5 acres, or by 150 percent. The now acreage would enable blocking up present small. farm units and the development of about 250 now farms, which could be taken up by veterans, and local people who otherwise would be forced to seek a livelihood elsewhere. Local business enterprises would be materially benefited, and additional business opportunities would be developed* The improved economic conditions would have local, State, and national significance* 5l« The direct tangible benefits from irrigation arc? estimated at $809,630 annuallyo The 1939-19U* price level was used in computing agricultural benefits. The indirect benefits which v/ould accrue from project development would be the increased activities of the businesses which handle and process the agricultural products as they flow through channels of trade and industry on their way to the ultimate consumers, the increased local business activity, and the benefits associated with Federal expenditure in developing and operating and maintaining the project. The value of these indirect benefits is estimated to average v925>330 annually. Total irrigation benefits would then be (¦>!, 731^960 annually. The present v.ilue 01 the irrigation benefits, based on a 100-year period of analysis with compound interest at i\ percent v/ould be $63,52li,0°°o 52, Direct power benefits from the project development would accrue through the production at project pov/orplants of over 55,000,000 kilowatthours of electrical energy annually. These direct benefits are estimated at fr33>5,600 annually,. Indirect benefits would accrue through the retail distribution of project power by the utility companies, and through use of |
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Original book: Utah exhibits [of the] State of Arizona, complainant, v. State of California, Palo Verde Irrigation District, Imperial Irrigation District, Coachella Valley County Water District, the Metropolitan Water District of Southern California, City of Los Angeles, City of San Diego, and County of San Diego, defendants, United States of America and State of Nevada, interveners, State of New Mexico and State of Utah, parties |