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- Damon Run Conservancy District Transaction
DAMON RUN TRANSACTION IS FINALIZED AS OF DECEMBER 10, 2019.
The City of Valparaiso has conducted many land planning and economic development studies to determine the growth of lands adjacent to Valparaiso City Limits. These studies typically identify the need for water and sewer infrastructure to serve these lands and attract future development. The Valparaiso City Utilities (VCU) Master Plan that was approved by the VCU Board of Directors in 2017 consolidated many of these studies,identified the gaps, and evaluated current capacity and the capital needs to provide utility services to these planning areas in the future.
The blue outline within Exhibit A provides the proposed water and sewer service boundaries for the future. US HWY 6 is currently being served by the Damon Run Conservancy District (DR). As of today, the DR serves over 460 residential homes in select areas within the district not including Porter Regional Hospital and other commercial establishments.
The City of Valparaiso through its utility, Valparaiso City Utilities, has entered into an asset transfer agreement with the DR for the purchase of the sanitary sewer assets. There are 3 distinct reasons why the VCU is interested in this opportunity:
1. The DR service territory falls in line with the future projected service area within the VCU Utilities Master Plan.
2. VCU believes that purchasing the sanitary sewers within the DR and US HWY 6 corridor will provide future growth.
3. The DR customers will see material up front financial relief in the taxes that support the current debt of the DR and future stability in their rates and charges.
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