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Entities bid for water: County consortium among those in the hunt
South metro water providers are preparing to bid on the biggest water rights sale in the region in several decades.
By By: Christine McManus
South metro water providers are preparing to bid on the biggest water rights sale in the region in several decades.
The City of Thornton, on Denver's northern boundary, is soliciting bids from regional municipalities on water rights that could serve an estimated 14,000 households.
On the auction block are 8,300 acre feet of water rights off the South Platte River high in the mountains southwest of Denver, plus 4,000 acre feet of storage at the Spinney Mountain Reservoir. Water planners estimate that family households use six-tenths of an acre foot per year.
Water providers in Castle Rock, Roxborough, Highlands Ranch and Douglas and Arapahoe counties are joining efforts to submit a bid as partners of the Douglas County Water Resource Authority. The authority was established over the past couple years as a joint effort to get perpetual renewable water supplies for the south metro area.
The Douglas County municipalities rely primarily on nonrenewable, underground water supplies.
South metro bids will be considered along with competing bids from water providers in Aurora, Northglenn, Brighton, Lakewood, Englewood and Wheatridge. Sealed bids are due Nov. 16.
At one point, Aurora leased the water rights that are up for bid. Aurora said it should have priority buyer consideration from Thornton.
Thornton water resource administrator Ed Lanyon said the city will consider all bids. Thornton wants not only cash for the rights to supplies from its South Park Water System, but also the promise of return flows.
"The south metro providers recognize the value of this huge block of water, and they will put in a credible bid," said Peter Binney, administrator for the Douglas County Water Resource Authority. "They will make a hard run at it."
The authority was scheduled to meet Tuesday afternoon, after press time.
Estimates range from $50-$125 million for the water rights. Thornton said it wants to work with a bidder "not necessarily on the basis of the highest price offered" but who can provide treated effluent in return. Bidders likely would also have to show how they will get the South Park water to households and back to Thornton after use and treatment.
Installing pipes and treatment plants often equal the cost of the water rights, Binney said. The upfront sale of such a large amount of water rights is an opportunity that has not come along in more than 20 years, Binney said. The Douglas County Water Resource Authority members have been contributing thousands of dollars to study ways to bring water over the Continental Divide from the agricultural Western Slope of Colorado, a historically controversial issue.
Thornton's water sale depends on the outcome of a lawsuit with Denver. After South Platte River water flows from 11 South Park ranches in Thornton's South Park Water System, it eventually reaches the Front Range and flows through Denver. By the time the water gets to Thronton's north treatment plant, it has more effluent runoff than Thornton wants.
The City of Thornton, on Denver's northern boundary, is soliciting bids from regional municipalities on water rights that could serve an estimated 14,000 households.
On the auction block are 8,300 acre feet of water rights off the South Platte River high in the mountains southwest of Denver, plus 4,000 acre feet of storage at the Spinney Mountain Reservoir. Water planners estimate that family households use six-tenths of an acre foot per year.
Water providers in Castle Rock, Roxborough, Highlands Ranch and Douglas and Arapahoe counties are joining efforts to submit a bid as partners of the Douglas County Water Resource Authority. The authority was established over the past couple years as a joint effort to get perpetual renewable water supplies for the south metro area.
The Douglas County municipalities rely primarily on nonrenewable, underground water supplies.
South metro bids will be considered along with competing bids from water providers in Aurora, Northglenn, Brighton, Lakewood, Englewood and Wheatridge. Sealed bids are due Nov. 16.
At one point, Aurora leased the water rights that are up for bid. Aurora said it should have priority buyer consideration from Thornton.
Thornton water resource administrator Ed Lanyon said the city will consider all bids. Thornton wants not only cash for the rights to supplies from its South Park Water System, but also the promise of return flows.
"The south metro providers recognize the value of this huge block of water, and they will put in a credible bid," said Peter Binney, administrator for the Douglas County Water Resource Authority. "They will make a hard run at it."
The authority was scheduled to meet Tuesday afternoon, after press time.
Estimates range from $50-$125 million for the water rights. Thornton said it wants to work with a bidder "not necessarily on the basis of the highest price offered" but who can provide treated effluent in return. Bidders likely would also have to show how they will get the South Park water to households and back to Thornton after use and treatment.
Installing pipes and treatment plants often equal the cost of the water rights, Binney said. The upfront sale of such a large amount of water rights is an opportunity that has not come along in more than 20 years, Binney said. The Douglas County Water Resource Authority members have been contributing thousands of dollars to study ways to bring water over the Continental Divide from the agricultural Western Slope of Colorado, a historically controversial issue.
Thornton's water sale depends on the outcome of a lawsuit with Denver. After South Platte River water flows from 11 South Park ranches in Thornton's South Park Water System, it eventually reaches the Front Range and flows through Denver. By the time the water gets to Thronton's north treatment plant, it has more effluent runoff than Thornton wants.
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