Council to vote on $30 million water purchase

2012-11-19 14:05:03

HESPERIA • A $30 million deal to purchase the permanent water rights to Rancho Las Flores will be on tap during Tuesday’s council meeting.

If the council votes yes after a public hearing, the city will issue bonds to purchase water rights held by Rancho Las Flores, LLC. as it pertains to 5,971 acre-feet of base annual production rights held by Rancho in Summit Valley.

On Oct. 3, City Manager Mike Podegracz signed the 28-page agreement between the city and R.E. Loans, a company serving as attorney-in-fact for Rancho.

The city, which has leased water from Rancho Las Flores for the last 15 years, would be able to borrow the funds to purchase the water rights at the same current lease rate.

The bankrupt Rancho Las Flores, with its 10,000-acre master-planned community, was purchased on Nov. 13 by Terra Verde Group, a Texas-based investment group for $45 million.

The council will also discuss a three-year landscape, maintenance and repair contract, which would cover Smoketree Street from Seventh Avenue to Hesperia Road, and Spruce Street from Seventh Avenue to Hesperia Road.

Dubbed as the Hesperia Township Project, the contract would have a ceiling of $75,600.

The City Council meeting begins at 6:30 p.m. Tuesday at City Hall, 9700 Seventh Ave. Live streaming video of the meeting can be viewed at www.cityofhesperia.us.

Rene De La Cruz may be reached at (760) 951-6227 or at RDeLaCruz@VVDailyPress.com.

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