Mooresville increases offer to purchase water company

MOORESVILLE – It’s probably not a big enough jump to avoid court, but the gap is narrowing between what Mooresville is offering Indiana American Water Company for the town’s water system and what the company says the system is worth.

After initially offering $6.5 million to IAWC in the condemnation purchase process, the town first raised the offer to $7.3 million and now to $9.5 million. IAWC has set the property value at $14.5 million.

“There’s still a pretty big gap in the assessed value,” said J. Christopher Janak of Bose, McKinney & Evans law firm in Indianapolis, which is representing the town in the case.

Mooresville filed to condemn the water company in December 2012. IAWC has owned the system since 2000. The Mooresville Town Council, citing fears that Mooresville would be lumped together with a higher rate group, decided to purchase and operate the system themselves.

IAWC raised rates 17 percent in 2012 and is again seeking a rate increase from the Indiana Utility Regulatory Commission. They also have imposed distribution improvement charges to Mooresville’s water bills. Court dates have been changed several times.

Janak said the town increased its offer because it finally received documents it had requested from IAWC.

It’s likely not enough to avoid court, however, and a trial probably would be moved out of county.

For now, the trial is set to begin June 3 in Morgan County Circuit Court with jury selection beginning at 9 a.m.

But Janak said since a status conference with Boles on April 16, the judge is seriously considering trying the case in Hendricks County with Hendricks County jurors.

“Judge Boles was becoming agitated during the conference over the mailer that was sent out to customers,” Janak said.

The company warned customers about a “hostile takeover” by the town council and surveyed them on the service they were receiving – asking if they wanted the town to take over the water system. IAWC also held public meetings in Mooresville for area residents. They filed a lawsuit against Mooresville and its council for transparency and Open Door Law issues during the condemnation process.

The order from the status conference states that all discovery is to be completed by May 1. Any outstanding motions were denied. It also states that the parties are to exchange and pre-mark all exhibits with the court reporter in Morgan County by May 15. And all preliminary and anticipated final instructions are to be filed by May 15.

The order states that the court, under Cause No. 55C01-1210-PL-2111, Indiana-American Water Company vs. the Town of Mooresville, will be bound by the jury’s decision in this case.

By Amy Hillenburg | Reporter | Published April, 26th 2014 in The Reporter Times