Negotiations in progress over Cave Creek Water Co.
by Kathleen Stinson

CAVE CREEK – Global Water Resources and the Town of Cave Creek are actively negotiating the town’s possible purchase of Cave Creek Water Co., a Global subsidiary.

Global spokesman Paul Walker confirms the company is in confidential discussions with Cave Creek as a result of mandatory settlement talks required by the court in the town’s ongoing condemnation suit against Cave Creek Water.

According to Mayor Vincent Francia, a purchase price of $19.5 million is being discussed.

Although attorneys for both sides are meeting, any agreement would be subject to approval by town council early in the new year.

“Despite the fact that a verbal agreement in principal has been reached, there are a significant number of issues to be resolved in a very short time frame for this proposed sale to be successful,” said Global spokesman Paul Walker in a company statement. “Like any transaction, Global will wait and see if the town can perform on its litany of promises and financial obligations.”

Attempts by The Desert Advocate seeking comment from the town manager were again unsuccessful.

“For two years, the leadership of Global Water suggested to the town that a partnership would be a plausible approach to resolve the town’s desire to control the water destiny of Cave Creek,” Walker related in the statement. “Global operates many successful enterprises in partnerships with the municipalities the company serves. 

“Notwithstanding these efforts, the town has expressed an unwavering commitment to condemn the aging water utility at any price. Not surprisingly, the town has rapidly become more realistic about the value of the company, nearly doubling its offer in the last 60 days.”

Mayor Francia points out that owning Cave Creek Water Co. would give the town control of its future.

“Without having control of its water, it does not have control of its future,” Francia said. “Our intention is that Cave Creek have water not only for tomorrow but for its future.”

Global bought Cave Creek Water Co. “to own it for the long term and to grow the service area over time,” Walker said. “Global is not now and has never been interested in the sale of the company, but in the face of certain condemnation and a lack of cooperation from the town, the company has been difficult to operate.”

Walker said on Thursday: “For our customers and employees, we appreciate the uncertainty the town’s actions bring to your lives. Rest assured that Global will do everything in its power to ensure that any potential transition is a smooth one, and that the quality of service is unchanged.”

Reach the reporter at kathleen@thedesertadvocate.com.