Title
A Resolution Authorizing the Purchase of Fort Lyon Canal Company Stock Owned by Mathis Golden Farm, LLC for Colorado Springs Utilities and Authorizing the Filing of Water Court Applications for Changes of Water Rights and Appropriative Rights of Exchange
Presenter:
Kim Gortz, Water Supply Resources Manager, Colorado Springs Utilities
Travas Deal, Chief Executive Officer, Colorado Springs Utilities
Body
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"). Springs Utilities will also acquire 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 $520,000.00 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 August 8, 2023, meeting.
Background:
Springs Utilities has entered into a PSA with Mathis Golden Farm, LLC under which it may acquire 80 FLCC shares (the "Property"). The PSA also includes as a condition of the purchase and sale that Mathis Golden Farm, LLC will encumber its property (the "Farm") with restrictive covenants that require that portions of the Farm will be dried-up and revegetated. The purchase price is $520,000.00.
The water associated with the 80 FLCC shares purchased by Springs Utilities will no longer be needed to water the Farm as a result of implementation of efficient irrigation methods that maintain or even increase farm productivity with less irrigated a...
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