Title
A Resolution Authorizing the Purchase of Fort Lyon Canal Company Stock Owned by Thaddeus Wertz and Sierra Wertz for Colorado Springs Utilities and Authorizing the Filing of Water Court Applications for Changes of Water Rights and Appropriative Rights of Exchange
Presenter:
Abigail Ortega, General Manager of Planning, Colorado Springs Utilities
Aram Benyamin, Chief Executive Officer, Colorado Springs Utilities
Summary:
Colorado Springs Utilities ("Springs Utilities") has entered into a Purchase and Sale Agreement ("PSA") to acquire ownership of 80 shares in the Fort Lyon Canal Company ("FLCC") and contractual rights to use the water associated with 105 FLCC shares three out of ten years. Springs Utilities will also acquire easements, real property covenants, and enter into agreements necessary for Springs Utilities to use the water derived from the shares. The total cost for this acquisition is $724,750.00 plus closing costs. In addition to the acquisition costs, Utilities will make mitigation payments to Bent County. Following completion of the acquisition, Utilities will file Water Court applications in order to use the water derived from the shares. Springs Utilities requests that City Council approve the attached resolution authorizing the acquisition and filing of a Water Court application(s) necessary to use the water associated with the FLCC shares to City at its October 11, 2022, meeting.
Background:
Springs Utilities has entered into a PSA with Thaddeus Wertz and Sierra Wertz ("Wertz") under which it may acquire: (i) 80 FLCC shares; (ii) the right to use water associated with an additional 105 shares 3/10 years; and (iii) easements that allow Springs Utilities to construct, operate, and maintain water augmentation and return flow facilities on the Wertz farm (collectively, the "Property"). The PSA also includes as a condition of the purchase and sale that Thaddeus Wertz and Sierra Wertz encumber their property with restrictive cov...
Click here for full text