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11/1/13 The Prescott Daily Courier | New York investment company sells PV effluent credits to Scottsdale developer

www.dcourier.com/print.asp?SectionID=1&SubsectionID=1&ArticleID=65792 1/2

Thursday, March 12, 2009

New York investment company sells PV effluent credits to Scottsdale developer

Ken Hedler

The Daily Courier

Thursday, March 12, 2009

PRESCOTT VALLEY – A New York-based investment group that bought 1,103 acre-feet of effluent credits from the town government has sold 700 acre-feet to a Scottsdale developer.

Cavan Real Estate Investments announced in a press release Wednesday that it entered an agreement with Water Property Investors of Port Washington, N.Y., to buy the credits. The town sold the credits to the New York firm at auction from effluent (treated sewage) that its sewer plant has generated.

Cavan plans to apply the credits to develop land that it plans to annex to Prescott Valley, according to Al Bradshaw, a Prescott public relations agent representing Cavan. Neither party disclosed the price for the sale. Water Property Investors successfully bid for 1,103 acre-feet of credits during an auction Oct. 30, 2007, by offering $24,650 per acre-foot.

The town conducted the auction to help finance a proposed pipeline to move water from the Big Chino Water Ranch north of Paulden.

Water Property Investors representatives said at the time that they bought the credits as an investment ultimately to sell to developers. Water Property Investors previously sold 200 acre-feet of credits to Denver investor/developer John Crowley II.

The sale announcement came after six months of talks off and on, said Walraven Ketellapper, president of Stillwater Resources of Boulder, Colo. Stillwater is a partner with Water Asset Management LLC of New York City, the parent company of Water Property Investors.

“I’m not sure who approached who,” Ketellapper said. “We know them (Cavan) as a major landowner. I think first of all we are really excited to be working for a quality company like Cavan.”

Ketellapper declined to disclose the selling price for the effluent credits to Cavan.

David Cavan, president of the company bearing his surname, could not be reached for comment.

However, the press release from Bradshaw quotes Cavan as saying, “We are making the purchase because we are confident in the viability of future economic growth and residential requirements in Prescott Valley.”

Cavan is the managing partner for Granite Dells Ranch Holdings LLC, the company that bought the former Granite Dells and Point of Rocks ranches. The property covers 16,000 acres bordering the city of Prescott and towns of Prescott Valley and Chino Valley.

 

 

11/1/13 The Prescott Daily Courier | New York investment company sells PV effluent credits to Scottsdale developer

www.dcourier.com/print.asp?SectionID=1&SubsectionID=1&ArticleID=65792 2/2

The law would bind Cavan to apply the credits to land within Prescott Valley’s jurisdiction, Assistant Town Attorney Colleen Auer said.

Bradshaw said Cavan plans to apply to the Arizona Department of Water Resources for a certificate to assure a 100-year water supply.

Developers must meet the 100-year standard because Prescott Valley lies within an active management area where local jurisdictions must meet the goal in 2025 of recharging as much water as they pump out of the aquifer.

Cavan has not submitted any plans yet to the Community Development Department for proposed annexations, Community Development Director Richard Parker said.

Parker said he met with Cavan representatives before the company issued the press release.

“We injected competition into the water market so that water would rise to its true value with the citizens of Prescott Valley being the beneficiaries,” Town Manager Larry Tarkowski said.

Water Property Investors plans to market the remaining effluent credits to small developers and landowners, Ketellapper said.

Water Property Investors has the option of buying the remaining credits for 1,621 acre-feet of credits from the town.

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