Claremont water system valued at $222 million in new report
“A new report commissioned by Golden State Water Company found its water system is worth $222 million in an eminent domain action, four times the appraised value by the city.
It is the first time, in a multi-year feud with Claremont, that Golden State has released a value on the local water system. When Claremont appraised the system for $55 million, Golden State officials rejected the offer, stating its system was not for sale.
While the report looks at what it would cost Claremont to replace nearly every single component of the system, it does not include the value of the water rights or real property. Golden State Water officials say once those assets are calculated, it will raise the fair market value.
The report finds that Measure W, Claremont’s $135 million bond on the November ballot, would not be sufficient to purchase the local water system. But if a jury were to rule on a value half of the $222 million, the city could continue with eminent domain.
“Clearly, the fair market value of the water system will far exceed the amount the city contends it will have to pay for a hostile takeover of the water system,” said eminent domain lawyer George Soneff in a statement.”
Marquez, Liset. Inland Daily Bulletin 3 October 2014.