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The R. L. O'Neil Company has developed a special expertise in the appraisal of water company properties. Our experience is illustrated in the selected examples presented below. It includes value estimates for the company enterprise, for disposition of excess land for development, for restricted use easements and open space conservation, for riparian rights, for local property tax assessment, for controlling interest transfer tax and for small system water company acquisition.
WATER COMPANY APPRAISALS
15,000 Acres Watershed Lands, Fairfield, New Haven, Hartford Counties. In the largest single open space conservation purchase in the State of Connecticut's history, the State of Connecticut Department of Environmental Protection acquired a combination of easements and fee estates in nearly 15,000 acres of watershed lands of the Aquarion Water Company. The R. L. O'Neil Company was engaged by the water company to appraise the acreage spread across several counties throughout western Connecticut.
Excess Water Company Lands, Windsor Locks, Ct. Client was National Trust for Public Land who was facilitating the open space conservation of this parcel by the Town of Windsor Locks from the Connecticut Water Company with financial grant funding from the Connecticut Department of Environmental Protection.
Chase Reservoir and Conservation Area, Killingly, Conn. 365 acres acquired by Town of Killingly from Crystal Water Company. The client was the parent Connecticut Water Company for the purpose of price determintion and DPUC disposition approval.
Water Company Appraisal and Allocation of Real Estate Value. The State of Connecticut has a "Controlling Interest Transfer Tax". This tax law requires that a real estate transfer tax be paid on the true market value of real estate whenever the controlling interest in the ownership of the real estate is transferred even if the ownership remains the same. When Aquarion Water Company was acquired by a holding company in a stock transaction this triggered the transfer tax. The tax is obliged to be paid within 30 days of the sale and in an amount based on the value at the date of sale.
The R. L. O'Neil Company appraisers worked with Aquarion and their Attorneys from DayPitney to develop a timely and credible estimate of value to satisfy this obligation. The method applied was a going concern valuation of the Water Company Enterprise with an allocation of value to the real estate assets.
Riparian Rights, 500 +/- acres under water. The Chestnut Hill Reservior Company was formed in the late 1800s to acquire rights to dam and retain water to provide power to downstream mills in eastern Connecticut. Multiple reservoirs were created, including Killingly Pond on the Connecticut/Rhode Island state line. The mills closed long ago, but paret company National Patent Development Corporation retained the ownership of Chestnut Hill and its land and water rights. The R. L. O'Neil Company was retained to appraise the company property for business planning purposes and possible disposition.
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