Obermayer’s Municipal Services Team Closes Water and Wastewater System Sale on Behalf of the Valley Township, Chester County
Tom Wyatt and Michael Thom represented Valley Township (the “Township”), Chester County, Pennsylvania in the conveyance of its water and wastewater systems to Pennsylvania-American Water Company (“PAWC”). The Township’s water assets sold for $7,325,000, and the Township’s wastewater assets sold for $13,950,000. This is a significant transaction for the Township as the sale of its water and wastewater systems provided the Township with immediate capital – especially since the Township did not have any system related debt to pay off. Further, the sale required PAWC to maintain, repair, and replace the systems on a forward-looking basis, which otherwise would have been the responsibility and cost of the Township and its residents. By selling both the water and wastewater systems to PAWC, Township residents will be able to work directly with PAWC to address any future system related questions or concerns.
The sale of the Township’s systems was facilitated through 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. In addition to the sale of the Township’s water and wastewater systems, Obermayer’s Municipal Services Team also represented Royersford Township in the sale of its wastewater system, East Norriton Township in the sale of its wastewater system, Warrington Township in the successful sale of its water and wastewater systems, and Altoona Water Authority in its acquisition of the Bellemead Civic Association’s water distribution system. 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 and analyzing and advising municipalities on exploring potential sales of their systems.
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 transactions. 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. We are happy to answer any questions you may have.