BRIEF HISTORY OF HWC
Buffalo Park Development Co.
The Homestead
Buffalo Park Development Co (BPDC) was the initial developer of The Homestead starting in the late 1960’s. Included in its’ zoning, platting and construction activities pertinent to the development, BPDC filed several water court cases to provide water rights for the created new lots. At the same time BPDC decided to construct a central water system to serve the development with domestic water. Wells, tanks and the distribution system were constructed in phases along with the development of the different filings within The Homestead. BPDC operated the water operations serving The Homestead inside the larger development corporation using the dba of Homestead Water Company. Currently the water system serves approximately 300 homes using 4 sources of water and 3 treatment plants.
Cragmont
BPDC and its’ subsidiary Colorado Mountain Properties, Inc. (CMP) began developing Block C & D of the Cragmont Subdivision in the early 1990’s. CMP filed for a water augmentation plan, constructed a water treatment plant and installed distribution piping for the initial phase of the development. Currently the water system serves 18 homes.
Bankruptcy
Due to the economic downturn BPDC filed for Chapter 11 Bankruptcy (Case No. 13-17669 HRT) in May of 2013. BPDC worked for many months with its creditors trying to achieve a workout plan but could not find consensus with its creditors. In the fall of 2013 it was decided through negotiations that BPDC case would change direction from reorganization to liquidation. All assets owned free and clear would be sold for the benefit of the creditors. The Bankruptcy Court issued a “Notice of Sale of Assets” in February of 2014 ordering all of the water related assets (Homestead and Cragmont) to be sold as a unit at auction on June 20th, 2014.
Homestead Cragmont Water, LLC
As the fate of BPDC and the water systems in both Homestead and Cragmont progressed a group of homeowners in both subdivision started meeting to explore options to preserve home values and keep the water flowing. Input was sought from the existing HOA’s and in September of 2013 ten homeowners formed Homestead Cragmont Water, LLC (HCW). Requirements to be a member of the LLC were:
· Own real property in either The Homestead or Cragmont Subdivisions
· Be party or successor to a Tap Agreement with BPDC
· Be willing to invest their own funds to acquire the assets of BPDC at auction
· Be willing to invest the time and energy to see the process through
HCW prepared an initial bid and offered $25,000 (the minimum set by the court) and ultimately was the only bidder. The bankruptcy court awarded HCW the winning bid and approved the sale of BPDC water assets to HCW on July 23, 2014. The execution of transfer documents was complete and HCW became to owners as of August 1st, 2014.
Homestead Water Company
Upon securing the assets from the bankruptcy court, board members of HCW began exploring the best option for the ultimate disposition of the water company. After much research they concluded the best option was to migrate HCW to a Mutual Non-Profit Corporation and to seek Federal 501(c)12 non-profit status. On December 31st, 2014 Homestead Cragmont Water, LLC was converted in to Homestead Water Company.
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