Clark Hill Represents Vidler Water Company in $108.2 Million Water Resources Transaction with City of Peoria 

Clark Hill represented Vidler Water Company, Inc. in an approximately $108.2 million transaction with the City of Peoria, Arizona, integrating the sale of water resources and real estate with infrastructure construction and substantial seller financing.  

The sale transferred approximately 173,673 acre-feet of long-term storage credits generated through storage of Central Arizona Project water at Vidler’s recharge facility in the Harquahala Irrigation Non-Expansion Area, together with associated land, recovery wells and infrastructure, easements, and related rights. Total consideration comprised approximately $95.5 million for the water credits, $8.7 million for the real property and related assets, and $4 million in prepaid interest.  

The financing structure combined approximately $21 million in cash at closing, including prepaid interest, with an $87.2 million seller-financed note. Securing the note required coordination of collateral spanning real property, recovery infrastructure, and a portion of the transferred water credits, together with the requirements applicable to a municipal buyer.  

Clark Hill negotiated and drafted the coordinated purchase agreements and seller financing documents, structured the related security arrangements, and addressed water rights and regulatory matters, title and easements, and escrow and closing requirements. The team also advised on construction contracting and project closeout, coordinating completion obligations, inspections, punch-list work, contractor and subcontractor matters, and warranty assignments with the sale and financing documents.  

The Clark Hill team was led by Axel N. Buchwalter and included Tanya Nebo, Jay Majitov, Quinne Daoust, and Michael Corrente, among others. The engagement highlights the firm’s ability to bring multiple practices together to execute a major water resources transaction, connecting project development and construction with asset disposition, municipal acquisition, and secured financing.