Real Estate & Property Law

Water Company Acquisition Completed

By Alan Ackerman

The Lake County, Indiana Post Tribune covers a story which is not often written about, but very important.

In order to develop property, many developers are required to create their own water systems. The developer system is a utility, with both the rights and obligations as provided under the local statutory framework for utilities. Frequently, when a local community decides to expand its own water system at the expense of the utilities, condemnation will be required. Most states have protective statutes, allowing the private water companies the right to be paid just compensation as with any other eminent domain action. Fortunately, Cedar Lake and Robin's Nest came to a fair conclusion. All too frequently, communities attempt to close the water system by a police power rather than appropriately exercising its condemnation powers.

Post-Tribune

A purchase agreement has been reached between the owner of the Robin's Nest water utility and the town that will end a year of eminent domain proceedings intended to bring the water utility into the fold of the Cedar Lake Water Utility.

Town Attorney David Austgen said the town and the owner of the Robin's Nest utility have reached an amicable purchase agreement for $725,000 following a year of proceedings and negotiations that began when the Town Council last December authorized the acquisition of the small water utility.

Austgen said the agreement that the town accepted unanimously Tuesday is expected to be signed by the attorneys for Robin's Nest today and filed with the court so the eminent domain lawsuit will come to an end.

Full post as published by National Eminent Domain Blog on December 09, 2010 (boomark / email).