Make us your home page

Today’s top headlines delivered to you daily.

(View our Privacy Policy)

Authority strikes $16.8M deal to buy Lindrick utility in Pasco

NEW PORT RICHEY — The public agency that bought Aloha Utilities has hammered out a $16.8 million deal to buy another private utility: Lindrick Service Corp., which has more than 4,600 customers in the New Port Richey waterfront area.

Related News/Archive

Lindrick and the Florida Governmental Utility Authority have been negotiating for well over a year. Last month, amid a standstill in negotiations, Lindrick proposed raising its water and wastewater rates by nearly 60 percent — a figure that later went up to 66 percent — but then informed state regulators it could not meet key filing deadlines.

Negotiations started up again. Brian Armstrong, an attorney for the authority, told Pasco commissioners Tuesday that if the authority moves forward with the sale, then customers would still see rate increases to help offset about $4.25 million in capital improvements.

But the increases would be about half as much as Lindrick requested, he said, and phased in over a three-year period with the largest hike in the first year, around 15 to 20 percent.

Pasco County joined the authority last year with an eye toward scooping up about 10 of the small private utilities around the county. The authority's board, which consists of representatives of its member governments, expects to vote on the contract by November.

Lindrick officials were not on hand at Tuesday's meeting, but Armstrong said the contract appeared to be close to having their support as well.

"I think it's a pretty firm handshake," he said.

Armstrong also told commissioners that the authority wants to buy four smaller utilities — Colonial Manor, Virginia Cities, Pasco Utilities Inc. and Dixie Grove — for $4.25 million.

Officials want to finance the purchase of Lindrick and the package of smaller utilities through one bond offering. The goal is to close on both sales by the end of this year.

Lindrick president Joe Borda has been seeking $23 million for the utility, Armstrong said, and that figure included compensation for future connections within the Lindrick service area.

The proposed new price of $16.8 million does not include so-called futures, but the contract would give Borda credits so that he would not owe connection fees on his 400 lots when they are developed.

Under the authority's proposal, the $4.25 million in capital improvements include replacing a water main along Floramar Terrace and rehabilitating lift stations. When it was floating the idea of a rate hike, Lindrick had told regulators it expected to make $10 million in capital improvements, including the installation of a new reverse osmosis water treatment plant.

Armstrong said in an interview that the authority expects to make a much smaller investment in capital improvements because it expects to save money by purchasing water from the city of New Port Richey.

Commissioners said they supported the proposed purchase.

"To finally put this together, to take that next step, is fantastic," Chairman Jack Mariano said.

"I believe this is absolutely the right thing to do," Commissioner Michael Cox said.

Jodie Tillman can be reached at or (727) 869-6247.

Authority strikes $16.8M deal to buy Lindrick utility in Pasco 10/20/09 [Last modified: Tuesday, October 20, 2009 8:53pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times


Join the discussion: Click to view comments, add yours

  1. What you need to know for Friday, Aug. 18


    Catching you up on overnight happenings, and what you need to know today.

    Read 'Hellfire from Above,' inside the Tampa Electric Co. power plant accident that left five people dead. [LUIS SANTANA | Times]
  2. Tampa is training ground for Team USA inline skating

    Human Interest

    TAMPA — The United States once dominated the sport known as international outdoor inline speed skating.

    Cotton Yarborough is one of five people from the Tampa Bay area on the national inline speed skating team. The team is competing in the world championships Aug. 27 in China. [Courtesy of Frank Holland]
  3. Grocery and hotel deals in reach for Tampa Encore project

    Economic Development

    TAMPA — After failing to land both Publix and Walmart, the Tampa Housing Authority says it is close to a deal to bring another well-known grocer to its Encore project.

    The Tampa Housing Authority's Encore project has housing like The Reed, pictured, but no retail. It is in talks to bring a grocer and two hotels to the site on the west side of Nebraska Avenue close to downtown Tampa.
  4. Epilogue: Former Salty Sisters captain Ernestine Mittermayr, 92

    Human Interest

    ST. PETERSBURG — Ernestine Mittermayr was proud to be a Salty Sister, one of a group of women sailors in the city.

  5. Bucs journal: Kicker Nick Folk has up and downs against Jaguars


    JACKSONVILLE — If the Bucs had hoped for a drama-free night in their kicking game, they'll have to wait another week.

    Bucs kicker Nick Folk celebrates one of his two made field goals against the Jaguars, but he also misses a field goal and has an extra point blocked.