Court-appointed appraisers set $14.5 million value for IAWC

MOORESVILLE – On Feb. 28, the Mooresville Town Council’s attorneys signed a re-submitted settlement offer to Indiana American Water Company to purchase the water system for $7.3 million.

Joe Loughmiller, spokesman for IAWC, said the court-appointed appraisers came up with a value of $14.5 million on the property, office building, lab and equipment. He added that the water company had presented a fair market value of $24.1 million.

“The valuation report we first submitted was done by a nationally-recognized firm – it put the value at $24.1 million. The Town of Mooresville has been given a copy of that report as well through its attorneys,” Loughmiller said this week. “Ultimately, the jury will decide the value based on whatever evidence is presented during the trial, which has been moved to June.”

The dates for the jury trial are June 3 through June 6, and it will be held in Martinsville at the Morgan County Courthouse.

Martinsville.

Loughmiller said IAWC’s survey of Mooresville residents done in December 2012, after town council members had voiced their intent to purchase the water system, clearly showed that local voters overwhelmingly do not support the town council on this issue. Approximately 80 percent of those responding indicated Indiana American Water should continue to own the local water company. Nearly 90 percent agreed that the town has more important and pressing priorities to address than buying the local water company. This survey was done more than a year before the company’s valuation of more than $24 million was completed, Loughmiller said.

Once the value of the system has been decided by the jury, the town can decide not to move forward with the acquisition, Loughmiller said.

Former town council president George Watkins said to residents at a public meeting that at any time, the town council could back out of pursuing the water purchase. If Mooresville abandons the condemnation once the jurors decide a fair market value at the trial, IAWC may be entitled to recover attorney fees and expenses it incurred to defend its property rights, Loughmiller said. And that would be on top of what the town spends on its own attorney and consultant fees and expenses.

Town residents can get more information about the purchase at www.mooresvillewaterfacts.com. They can talk to town council members at their meetings, the first and third Tuesday of every month, 6:30 p.m., Mooresville Town Government Center, 4 E. Harrison St. There is also a Facebook page at www.facebook.com/mooresvillewaterfacts that residents can “like.”

Staff Report | Published April, 9th 2014 in The Reporter Times