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Claremont to Vote on Possible Eminent Domain Action Against Private Water Company




by:
Arthur J. Hazarabedian
Arthur J. Hazarabedian
California Eminent Domain Law Group, APC - Glendale Office

 
July 16, 2014

Previously published by California Eminent Domain Law Blog

The City of Claremont is turning to its citizens to ascertain whether or not the city should forcefully take possession of the local privately owned water company, Golden State Water Co. The City Council unanimously voted that a $55 million bond measure will be placed on the November ballot relating to acquisition.

As the water company’s rates and prices gradually increased, so did the backlash from the Claremont city residents. Since 2004, prices have increased 100%. Whether or not the city’s proposed acquisition is to benefit the residents with lower bills, however, is unclear. City officials believe so but Golden State Water Co. spokeswoman, Julie Hooper, believes that the city is trying to convince its residence that its appraised value of $55 million is all that the city will spend for the acquisition. She notes that the city is not disclosing the additional costs for borrowing the $55 million nor the interest it will incur.
Furthermore, there is a major discrepancy between the city’s appraised value and the value the water company claims. According to Hopper, Golden State believes that the company is worth close to $135 million. The city refuses to release its appraisal report to Golden State; its offer stands, as of October 2013, at $55 million.

Nevertheless, Hopper has made it clear that the company is willing to work with the city to try to reach a compromise in the hopes that eminent domain proceedings can be avoided. City officials say that they will not be filing the eminent domain lawsuit until after the November vote on the bond measure, so the City Council can get a better idea of the public’s perception towards the takeover.



 

The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.
 

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Author
 
Arthur J. Hazarabedian
Arthur J. Hazarabedian
California Eminent Domain Law Group, APC
 
Glendale Office
Practice Area
 
Eminent Domain
 
California Eminent Domain Law Group, APC Overview