Weather | Sports | Forums | Comics | Classifieds | Calendar | Movies
WILL VAN SANTMillions separate the sides in negotiations to buy Florida Water Services Corp. holdings.
Florida Water Services Corp. cannot seem to get sold.
The company, the state's largest private water and sewer utility, had wanted to reach a deal with a public authority formed by two Panhandle towns. But in March, court decisions sank that plan. And a bill awaiting the governor's signature would prohibit similar acquisitions in the future.
Two weeks ago, a handful of local governments, Hernando and Citrus counties among them, made an offer to the Orlando-based company for the utility giant's networks in their respective jurisdictions.
This week, the company responded: No deal. And those offers? Well, they're just a few million short.
In a letter to Hernando County Attorney Garth Coller, the company said it wanted nearly $56-million for its Spring Hill utility, which serves some 33,000 residents. Hernando officials had suggested a price of $35-million.
In a separate letter sent via express mail Tuesday, the company told Coller and representatives of Deltona, Marco Island and Palm Coast - as well as attorneys for a consortium of other would-be buyers of which Citrus County is a part - that terms Florida Water had laid out in earlier negotiations had not been met.
No deal is possible, Florida Water stressed, if the company is responsible for any closing costs, litigation expenses or consultants' fees associated with the sale. Nor will the company, the letter states, accept any liability for the condition of the systems or refrain from entering negotiations with other buyers.
Despite the size of the counteroffer and Florida Water's firm tone, Coller said he is unfazed and hopeful a deal can be struck. Much compromise is yet possible, he said, but there is little flexibility when it comes to one crucial area.
"The county feels quite strongly there is still plenty of room for negotiation on plenty of issues; price, however, is not going to be one of them," the attorney said.
The Florida Governmental Utility Authority, a group of local governments to which Citrus belongs, had offered close to $16-million for Florida Water's utility in Citrus, which serves 12,000 people.
Brian Armstrong, an attorney representing the FGUA, said the company asked this week for $20.4-million.
Armstrong said he was not surprised and had expected Florida Water to stake out an advantageous position by maximizing the price. Like Coller, he remains optimistic about a final sale.
"In any negotiations, you have to sit down face to face to discuss the terms," Armstrong said, "including price."
Florida Water representatives and local government officials are scheduled to meet Wednesday.
- Will Van Sant covers Hernando County government and can be reached at 754-6127. Send e-mail to vansant@sptimes.com