At its February meeting, Tampa Bay Water’s board approved an agreement to acquire 590,100 gallons per day of permitted water supply capacity in South Hillsborough County from property that is changing from agricultural to residential use. Tampa Bay Water negotiated with Suburban Land Reserve to purchase this permitted capacity for $1.7 million plus up to $50,000 in transaction costs, based on previous acquisition costs adjusted for inflation.
The transfer requires Tampa Bay Water to leave 10% of the permitted quantity for the environment, according to the Southwest Florida Water Management District’s rule to benefit the environment, netting an estimated 550,000 gallons per day for public supply if the permit is approved.
This quantity could be added later to either the potential South Hillsborough Wellfield, if a long-term agreement for aquifer recharge credits can be negotiated with Hillsborough County, or to a single production well in Balm.
“Acquiring retiring water use permits is a cost-effective way to add water to our portfolio,” said Warren Hogg, chief science officer for Tampa Bay Water, “and we will continue to watch for other acquisition opportunities.”
