Obermayer’s Municipal Services Team Closes Wastewater System Sale on Behalf of the Township of Lower Makefield, Bucks County
Tom Wyatt and Nicole Norcross represented Lower Makefield Township (the “Township”), Bucks, County, Pennsylvania in the conveyance of its sanitary wastewater system to Aqua Pennsylvania Wastewater, Inc. (“Aqua”). The Township’s wastewater assets sold for $53,000,000.
This is a significant transaction for the Township as the sale of its wastewater systems provides the Township with immediate capital allowing the Township to pay-off approximately 80% of its debt. Further, the sale required Aqua to maintain, repair and replace the wastewater system going forward, which otherwise would have been the responsibility and cost of the Township and its residents.
The sale of the Township’s system was completed by using Pennsylvania’s Act 12 of 2016 (“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. Matthew Olesh and Sydney Melillo provided vital counsel in shepherding the Township’s intervention to Aqua’s application before the Pennsylvania Public Utility Commission (PUC). The Municipal Services team at Obermayer continues its work in representing municipalities on numerous transactions involving purchases and sales by municipal entities and analyzing and also advising municipalities on negotiating new intermunicipal agreements and municipal stormwater solutions.
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.
Nicole Norcross focuses her practice on transactional matters, including water and wastewater system purchases and sales. Nicole’s experience in finance and real estate matters allows her to advise municipalities and authorities on pertinent issues when analyzing water and wastewater transactions. In addition to her municipal practice, Nicole represents individuals and organizations in public finance, real estate, corporate and general banking 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. We are happy to answer any questions you may have.