To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Mark Marlowe, P.E., Director of Castle Rock Water
Matt Benak, P.E., Water Resources Manager
Title
Resolution Approving a Purchase and Sale Agreement for Water Rights and All Appurtenances and Easements Between Ranchview Investments, LLC and the Town of Castle Rock, Acting By and Through the Castle Rock Water Enterprise [along Indian Creek in northwest Douglas County]
Body
________________________________________________________________________________
Executive Summary
Castle Rock Water (CRW) staff request Town Council approval of a Resolution approving a Purchase and Sale Agreement between the Town of Castle Rock and Ranchview Investments, LLC for their 25% interest in the Meadow Ditch water right, easements and appurtenances. As part of a purchase and sale agreement the Town completed with Roxborough Water and Sanitation District (Roxborough) in July 2023, the Town acquired a 75% interest in the Meadow Ditch water right and desires to purchase the remaining interest in this water right.
The purchase price is $828,000 and includes all of Ranchview’s interest in the Meadow Ditch water right, Lambert Reservoir No. 3 and all associated easements and agreements, including those that may be held by Valley Development Group, LLC. CRW will put up $20,000 earnest money towards the purchase within ten days after the agreement is executed. CRW will also pay the seller’s legal and consulting fees up to a maximum amount of $10,000.
The Meadow Ditch water has an 1866 appropriation date, and there are no downstream water rights on Indian Creek or Plum Creek with a higher seniority. According to our water rights engineering consultant, this 25% interest in the water right may yield an average of 20.7 acre feet (AF) annually. With these two water rights combined, the yield is approximately 71 AF per year, on average. If we include the reusability of these water rights (all 71 AF), the total expected yield could be high as 135 AF.
Staff Recommendation
Staff and CRW Commission recommend that Town Council approve the Resolution approving the Purchase and Sale Agreement with Ranchview Investments, LLC.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Alternative Motions
“I move to approve the resolution as introduced by title, with the following conditions: (list conditions).
“I move to continue this item to the Town Council meeting on _____ date to allow additional time to (list information needed).”
Attachments
Staff Report
Attachment A: Resolution
Exhibit 1: Agreement
Attachment B: Location Map