The Town of Prescott Valley, Arizona, will auction 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 following information is offered as a general overview of the auction and auction procedures and should not be relied on exclusively for due diligence, bid submission, auction procedures or other purposes. Rather, interested parties should obtain and review the bid documents and other auction information available by registering and logging into the Auction E-Documents Vault or by contacting WestWater Research for a Bidder's Packet.
Auction Date:
October 29 and 30, 2007
Effluent Water Rights Offered at Auction:
State regulators have determined that a total of 1,103 acre-feet of the Effluent is currently available and can be pledged to a Certificate of Assured Water Supply or approved alternative use. 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.
At auction, the Town will sell the contractual right and interest in the 1,103 acre-feet currently available together with 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).
Opening Bid Price:
The opening bid price at auction is at least $22,500 U.S. Dollars per acre foot.
Purchase Terms and Payment Schedule:
The Effluent water rights will be offered under the purchase terms and payment schedule provided in the Effluent Water Auction Agreement, which can be accessed by registering and logging into the Auction E-Documents Vault or by contacting WestWater Research for a Bidder's Packet.
Auction 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.
Qualified Bidders:
Bidders must pre-qualify to submit a sealed bid on October 29, and only sealed bidders will be able to participate in the oral auction on October 30. The rights to the Effluent will be awarded to the qualified bidder that submits the highest bid at auction (either sealed or oral) that meets the bid requirements.
To apply to be qualified to bid at auction, a prospective bidder must deposit all of the following with the recipient designated in the Instructions to Bidders by no later than 2:00 p.m. Mountain Standard Time on October 19, 2007:
- a fully-completed and executed Qualified Bidder Form;
- an original, fully-completed and executed Effluent Water Auction Escrow Agreement; and
- a Bid Security of $1,000,000.00 U.S. Dollars plus a non-refundable escrow fee in the amount of $750.00 U.S. Dollars for a total of $1,000,750.00 U.S. Dollars.
The Instructions to Bidders, Qualified Bidder Form, Effluent Water Auction Escrow Agreement and other bid and auction information can be accessed by registering and logging into the Auction E-Documents Vault or by contacting WestWater Research for a Bidder's Packet. A list of all qualified bidders will be posted outside of the Town Clerk's office and on the website www.waterexchange.com/auction by 5:00 p.m. October 23, 2007.
Closing:
Closing shall occur within 20 business days from the auction date. Closing will take place in the office of the Town Manager, Prescott Valley, AZ at 10:00 a.m. Mountain Standard Time.
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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