FOUNTAIN, Colo. (KOAA) — Fountain City Council has approved a 50-year water lease agreement with Security Water District, a deal city leaders say could unlock future housing and development projects that have been stalled by limited water resources.
The council voted 7-0 Tuesday night to approve the agreement, which will add 386 acre-feet of treated water per year to the city's supply.
Dan Blankenship, utilities director for the city of Fountain, said the city had reached a critical threshold.
"Over the past three or four years, we've pretty much allocated all of those so that we are to the point where we really don't have any more water resources for new development," Blankenship said.
Under the agreement, 50% of the new water will go to residential projects, 30% to commercial or industrial use, and 20% will be held in reserve for special projects.
"It will provide us with enough water to serve about 2,000 single-family equivalents," Blankenship said.
City officials say the plan is structured so that new development covers its own costs.
"Our approach in Fountain is that development pays for itself… there is no cost to the existing ratepayers," Blankenship said.
The water will come through the partnership with the Security Water District, which also serves parts of the region. Roy Heald, General Manager of Security Water and Sanitation District, said the arrangement benefits both parties.
"It has no impact on our ability to provide water to our customers; we still have the same amount of water that we can provide to our customers. and it will help us keep our rates moderate," Heald said.
Mayor Sharon Thompson said limited water access had slowed the city's momentum in recent years.
"Our growth has kind of been stuck for the last couple of years with the lack of water… so this is exciting that we can now promise and deliver," Thompson said.
Richard Van Seenus, land development director with Aspen View Homes and a board member with the Home Builders Association, said water availability is a foundational requirement before any development can move forward.
“Truth is, you can't get approval without water… it's one of those critical components," Van Seenus said.
Van Seenus said his Aspen Ranch project of 227 homes is currently active.
"We have about 70 to 75 units left to finish down there," Van Seenus said.
But he said future projects have remained on hold without access to additional water.
"I'm bound by a confidentiality agreement on one, but it's the only one that comes to mind…it's hard when you can't move forward on something, especially when you have a business that wants to support that," Van Seenus said.
Thompson said the agreement represents a significant moment for the community.
"This is an exciting once-in-a-lifetime opportunity for our citizens to see some growth," Thompson said.
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