Obermayer’s Municipal Services Team Closes Wastewater System Sale on Behalf of the Borough of Royersford, Montgomery County
Tom Wyatt and Michael Thom represented the Borough of Royersford (the “Borough”) in Montgomery County, Pennsylvania in the conveyance of its wastewater system to Pennsylvania-American Water Company (“PAWC”). The Borough’s wastewater assets sold for $13 million. This was a significant transaction, as the sale not only provides immediate capital to the Borough, but it also enabled the Borough to prepay existing debt in advance of its scheduled maturity. Further, PAWC is scheduled to complete approximately $1.6 million of capital improvements to the Borough’s wastewater system over the next five (5) years – improvements that otherwise would have been the responsibility and cost of the Borough and its residents.
The sale of the Borough’s wastewater system was facilitated through Pennsylvania’s Act 12, which changed the valuation process for water and wastewater systems across the state to permit buyers and sellers to agree on an equitable purchase price for water and wastewater systems. In addition to the sale of the Borough’s wastewater system, Obermayer’s Municipal Services Team also represented East Norriton Township in the sale of its wastewater system and Warrington Township in the successful sale of its water and wastewater systems. The Municipal Services team at Obermayer continues its work in representing municipalities on numerous transactions involving purchases and sales by municipal authorities and regulated utilities.
Tom Wyatt chairs the municipal infrastructure and services practice area. He represents local governments and municipal authorities with infrastructure-related matters, such as regulatory compliance, bulk sale, and services contract negotiations, and water and wastewater system purchases and sales. Tom’s close collaboration with municipal solicitors and significant practical experience as counsel to municipalities relating to a PUC application under Act 12 and relating to the PA DEP makes him a trusted advisor in preparing witness testimonies and drafting water and wastewater planning documents. Beyond his municipal infrastructure and services practice, Tom represents individuals and corporations in business and finance and corporate governance matters.
Michael Thom focuses his practice on transactional matters, including water and wastewater system purchases and sales. Mike’s experience in public and private finance, as well as with easements, rights-of-way, and property matters allows him to advise municipalities and authorities on pertinent issues when analyzing water and wastewater transaction documents. In addition to his municipal practice, Mike represents individuals, groups, and organizations in banking, real estate, corporate and private securities matters.
If you are interested in learning more about Pennsylvania’s Act 12 valuation process or exploring the sale or purchase of water and/or wastewater assets throughout the Commonwealth of Pennsylvania we encourage you to reach out to our Municipal Services team for more information.