General Auction Information
The Town of Prescott Valley, Arizona, ("Town") is auctioning the sole and exclusive contractual right and interest to sell or pledge 2,724 acre-feet of annual effluent water ("Effluent") approved by State regulators for use as a 100-year assured water supply for economic development or other purposes. The Effluent is in high demand because:
- state regulations require developers to have a 100-year assured water supply for new subdivisions;
- other water resources that meet the 100-year assured water supply requirements are scarce; and
- the Town is projected to grow by 55 percent over the next 20 years.
The Arizona Department of Water Resources ("ADWR") has advised the Town that purchasers can use the rights to be auctioned to support future applications for Certificates of Assured Water Supply ("CAWS") that are required for any new subdivision within the Town.
Auction Date and Format
The auction will be a two-day, two-round auction with sealed bids due October 29, 2007 followed by an oral auction on October 30, 2007.
Opening Bid Price - Price Floor Agreement
The opening bid price at auction is at least $22,500 per acre-foot based on an Effluent Auction Price Floor Agreement between the Town and Aqua Capital Management LP ("Aqua Price Floor Agreement"). Qualified bidders may submit bids that meet or exceed the opening bid price based on the terms established by the Aqua Price Floor Agreement. If the Town does not receive a higher conforming bid from a Qualified Bidder at auction, Aqua will be awarded the rights to the Effluent under the terms of the Aqua Price Floor Agreement.
Auction Information - Online Registration
Please register online or contact WestWater Research for access to auction documents, auction procedures, bidder qualifications, the Aqua Price Floor Agreement and other information about the auction, the rights to be auctioned and the Effluent. Registered users will receive a user name and password to the E-Documents Vault Auction Page and email notices when new information relating to the auction is posted.
Effluent Water Offered At Auction
In 2005, ADWR determined that 1,103 acre-feet of the Effluent is available to be recovered and pledged to CAWS(s) or certain alternative uses. The Town expects to receive, recharge and recover the remaining 1,621 acre-feet of Effluent on or before December 31, 2014 at a rate of at least 200 acre-feet per year.
The Town intends to sell at auction the contractual right and interest in the 1,103 acre-feet currently available and an option to purchase the contractual right and interest in the remaining 1,621 acre-feet of Effluent as it becomes available. Such contractual right and interest includes any first-generation effluent approved by ADWR that may be produced from onsite use of the Effluent pursuant to the specific development plan associated with the applicable CAWS(s).
Effluent Auction Investment Opportunity
The auction provides opportunities for those who want to enter the water market. Purchasers have the ability to sell or assign their rights to other individuals or entities. Potential investors should contact WestWater Research for specific information about these opportunities.
To learn more about the auction, the Effluent, and the Town of Prescott Valley view the following links:
The above information is offered for informational purposes only. No warranties are expressed or implied. Buyers should conduct their own due diligence prior to participating in the auction.
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