Securities and Exchange Commission
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
December 23, 1997
Cadiz Land Company, Inc.
(Exact name of issuer as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
0-12114 77-0313235
(Commission File Number) (IRS Employer Identification No.)
100 Wilshire Boulevard, Suite 1600, Santa Monica, CA 90401
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (310) 899-4700
ITEM 5. OTHER EVENTS
Attached hereto as Exhibit 99.1 is a copy of a press release dated
December 23, 1997 as issued by the Registrant.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Not applicable
(b) Not applicable
(c) Exhibit 99.1 Press Release dated December 23, 1997
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
CADIZ LAND COMPANY, INC.
(Registrant)
By: /s/ Susan K. Chapman
-----------------------------
Susan K. Chapman
Secretary
Dated: December 24, 1997
EXHIBIT 99.1
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FOR IMMEDIATE RELEASE: CONTACT:
December 23, 1997 Fiona Hutton
VP, Corporate Communications
310-899-4700
CADIZ SIGNS INTERIM AGREEMENT WITH METROPOLITAN WATER DISTRICT
-- To Develop Water Storage And Supply Program For Dry Southern
California --
SANTA MONICA, CA -- Cadiz Land Company, Inc., (Nasdaq National
Market Symbol "CLCI") announced today significant progress with the
development of a water storage and supply program at its Cadiz,
California property, entering into an interim Agreement with the
Metropolitan Water District of Southern California (MWD) to develop
principles and terms for agreement in which CLCI would provide storage
capacity of 500,000 acre-feet and a dry-year source of up to 100,000
acre-feet/year of high quality water. Facing a rapidly increasing
population and diminishing municipal water supplies, the state of
California and its local water agencies are seeking reliable, high
quality and affordable alternative water supplies to assist with the
projected shortages.
"We are very encouraged with the current progress of our
arrangements with the Metropolitan Water District," said Keith Brackpool,
chief executive officer of Cadiz Land Company. Our program will provide
cost-effective storage of surplus Colorado River water, produce a new and
reliable dry-year source of significant water supplies, and improve the
overall quality of water conveyed through the Colorado River Aqueduct."
CLCI and MWD entered into an interim Agreement that calls for the
development of principles and terms (i.e., fee structure, delivery
schedule and environmental compliance) and final verification of
feasibility for a water storage and supply program. This Agreement
follows months of review and work by both CLCI and MWD and now defines
the scope of the program to be negotiated. Both parties have agreed to
negotiate the material terms by March 31, 1998. The program could be
fully operational by the year 2000.
"Providing Southern California residents with a long-term,
affordable and high quality water supply is the Metropolitan Water
District's central mission," said John Wodraska, general manager of
Metropolitan Water District. Our agency recognizes the value of
conjunctive use and storage programs and believes this type of
private/public partnership will be instrumental in meeting our region's
future supply needs."
The interim Agreement also calls for CLCI and MWD to explore two
potential future additions to the water storage and supply program,
including the construction of a dual pipeline
at the Cadiz property and/or the development of an additional program at
CLCI's nearby Danby Lake property. Either addition would increase the
storage and/or supply capacity.
CLCI's water storage and supply program has also been incorporated
in the Colorado River Board of California's December 17, 1997 draft of
the "4.4 Plan" as a storage and supply alternative for the state. As
directed by Interior Secretary Bruce Babbitt, California must design a
plan to live within its entitled allocation (4.4 million acre-feet per
year) of Colorado River water. The Colorado River Board of California, in
conjunction with the California Department of Water Resources, is charged
with identifying public and private sector solutions to help meet
projected shortfalls.
"With California's population projected to swell to approximately 49
million by 2020, the state is actively searching for alternative water
sources to solve our impending shortages," said David Kennedy, director
of California's Department of Water Resources. Cadiz' water storage and
supply program offers California one viable solution to its water
allocation challenge."
CLCI owns approximately 27,000 acres in the Cadiz and Fenner valleys
of eastern San Bernardino County -- property that overlays an underground
aquifer system with significant indigenous groundwater resources that are
actively recharged. During wet years or periods of excess supply, CLCI
would store water from the Colorado River in its aquifer system. During
periods of regional drought or reduced allocations from the Colorado
River, the previously imported water, together with additional indigenous
groundwater, could be extracted and conveyed to the Colorado River
Aqueduct.
Founded in 1983, CLCI is a publicly held agricultural and water
development firm. Through its subsidiary, Sun World International, CLCI
is one of the largest vertically integrated agricultural companies in
California.
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