|
The Company’s goal is to become a leading private water resource company in
the western United States through (i) the acquisition of strategic water
resources and water storage facilities; (ii) the conversion of agricultural
water to emerging higher valued municipal and industrial uses; and (iii) the development
of resources for sale or lease to end users in order to generate revenue
in excess of the cost of raw resources. In all transactions,
the Company seeks to ascertain that there will be a favorable long-term market
for the water resources it acquires or develops, and that it will be able to transform acquired
resources to a higher value use within a reasonable period of time.
Vidler plans to establish a long-term income stream through the sale or
lease of water resources and underground storage facilities to both public and private
end users. The Company believes that continued
growth in water demand will generate rate adjustments to its water contract
prices that meet or exceed the rate of inflation, while the value of its
underlying resources may continue to appreciate.
The Company intends to acquire and develop strategically linked water rights
and storage resources along major water delivery systems in the western
United States, in order to offer a comprehensive approach to water management
needs throughout the region.
Vidler proposes to actively pursue opportunities in the metropolitan areas
of the western United States. Vidler will also pursue specific strategic opportunities
in certain smaller communities, such as West Wendover, Nevada. In smaller
cities, where access to major water conveyance systems is not available,
solving water resource shortages may be critical to future growth. Meeting these
needs offers the Company opportunities to develop specialized projects with
greater flexibility than it might face in more established water markets such
as Southern California.
Vidler also plans to create value in certain instances by consolidating multiple agricultural water
holdings into single ownership and leveraging the experience of its management
team to undertake the intricate processes required to
transfer water rights to municipal and industrial end users. Typically, the Company will structure
water resource transactions to help engage local support in the difficult area of agricultural transition to emerging industrial and commercial uses.
|
