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412 THE WALL STREET JOURNAL TUESDAY, APRIL 25, 2000
<br />Sales of Water Rights Divide a Town
<br />Continued From First Page
<br />chermann's melons was reduced to mushy
<br />aim to one day take over the business.
<br />Ditch to a Denver investment group, which
<br />rubble. Although the farmer was able to re-
<br />Oldest son Jared wonders how long it
<br />resold it to Aurora in 1983.
<br />structure his debts, the following year a
<br />will be before the rest of the area's water is
<br />Local resentment was so intense that
<br />salmonella scare in Texas destroyed the
<br />sold. "Eventually," the 26- year -old pre -
<br />Aurora employees who pulled into area
<br />cantaloupe market, forcing Rocky Ford
<br />dicts, "somebody is going to want it so
<br />service stations in city cars were told to gas
<br />growers to let their crop rot in the field.
<br />badly that you are not going to be able to
<br />up elsewhere. Meanwhile, individual wa-
<br />He kept on borrowing and planting,
<br />resist the price."
<br />ter - rights holders who accepted buyout of-
<br />switching from high - margin vegetables to
<br />Indeed, since the announcement of the
<br />fers from Aurora were sometimes
<br />less -risky alfalfa and hay. Even so, as the
<br />Rocky Ford Ditch sale, a local real- estate
<br />shunned. After part -time farmer Don
<br />harvests came and went, he barely seemed
<br />broker has begun trying to lash together a
<br />Gause sold, some customers stopped doing
<br />to make a dent in his mounting debts. As
<br />transaction involving the much larger
<br />business at his downtown clothing store.
<br />businesses closed in town, longtime
<br />High Line Canal.
<br />"They just quit speaking to me," the hab-
<br />friends began selling their farms.
<br />Meanwhile, with water sales projected
<br />erdasher recalls.
<br />Meanwhile, farmers looking for a way
<br />to reduce the value of related land by as
<br />Under Colorado law, water rights are
<br />to abandon agriculture discovered that
<br />much as 90%, merchants and civic leaders
<br />treated as private property and preventing
<br />their water rights were worth far more
<br />are. trying to head off future transactions.
<br />a sale, outright, is as unlikely as stopping a
<br />than the land alone. Indeed, city suitors
<br />"If it was just this one sale it would be one
<br />city dweller from selling his house. Even
<br />would pay up to three times as much for the
<br />thing, but it seems like this is just the be-
<br />so, Rocky Ford holdouts hired lawyers to
<br />water rights to an acre as they would for
<br />ginning," says Rick Klein, city manager of
<br />go to court to fight the sales to Aurora, or at
<br />the irrigated land itself.
<br />nearby La Junta. Colo.
<br />least make sure they didn't harm the flow
<br />Ron Aschermann knew a sale could hurt
<br />So far, most of the discussions involve
<br />of water to their properties.
<br />"We
<br />his hometown. But paper, his farm was
<br />establishing a program whereby farmers
<br />all stood up and fought against it,"
<br />making less and less sense as an continu-
<br />could lease their water to the cities but
<br />recalls Hal Holder, a longtime produce bro-
<br />ker who also owns a farm. "Our forefa-
<br />ing concern. He was having increasing
<br />trouble negotiating operating loans, even
<br />keep the rights. That idea is of little inter -
<br />"It's
<br />thers had dug these canals and we had lots
<br />though the bank had been founded by his
<br />est to some farmers. the only asset we
<br />have that is worth
<br />of moral reasons not to sell."
<br />grandfather.
<br />any money," says
<br />Randy Hiraki, whose family is getting out
<br />Ron Aschermann's roots ran as deep
<br />With Aurora trying in earnest to reveg-
<br />of the farming business. "We don't tell
<br />as anyone's. Rocky Ford had been little
<br />etate land taken out of production under
<br />anybody that they don't have a right to sell
<br />more than a dusty railroad stop when his
<br />the first sale, the once - unthinkable idea of
<br />their house."
<br />ancestors sloshed across the Arkansas
<br />selling water slowly began to seem like a
<br />For his part, Ron Aschermann tries to
<br />River in covered wagons. Family mem-
<br />bers built businesses, carved out
<br />less repugnant option.
<br />By the time Mr. Aschermann ap-
<br />concentrate on the future. He expects that
<br />ranches, and planted everything from
<br />proached Aurora officials three years ago,
<br />haggling over terms of the Rocky Ford
<br />Ditch sale will go on in state water court for
<br />cantaloupe to alfalfa. At one point, Mr.
<br />Aschermann served on the local school
<br />several other growers along the ditch
<br />joined him in the negotiations. "The ma-
<br />as lo
<br />long as two years. Although his pro
<br />as to
<br />board while his wife headed the chamber
<br />jority of the farmers are just tired of fight-
<br />it
<br />of more than Sl million will get hi m
<br />m
<br />of commerce.
<br />ing," says 66- year -old Vernon Proctor,
<br />out of debt, they won't large enough to
<br />But while he remained a holdout, the of-
<br />whose ancestors homesteaded in the area.
<br />ease him into retirement. Instead, he's
<br />fer was tempting. Mr. Aschermann had
<br />"It's probably a sad thing to see water
<br />ready started applying for jobs.
<br />sold some land to settle estate taxes. In-
<br />leave the valley, but time goes on and
<br />Lately, his landscaper son has been of
<br />creasing foreign competition was hurting
<br />things change."
<br />ter him to move to t
<br />t he Denver area, which
<br />crop prices. His family had once taken
<br />Last summer, Aurora offered to pay
<br />is where his water liable to be headed. "I
<br />pride in financing its own operations but
<br />about S56,000 for each of the approximately
<br />guess I can't complain if people there have
<br />now he was borrowing as much as 5500,000
<br />330 Rocky Ford Ditch shares that the city
<br />the money and want to waste it growing
<br />11
<br />a year for planting, while still making do
<br />doesn't already own. So far, owners of
<br />grass, Mr. Aschermann muses. "I got a
<br />with equipment his family purchased be-
<br />about 290 of those shares have agreed to
<br />son up there growing things that look
<br />fore the Korean War.
<br />sell, bringing the transaction's total value
<br />pretty, and he's doing fine.'
<br />Moreover, Scott Aschermann, his only
<br />to about $16.2 million.
<br />son, had planned on taking over after col-
<br />Mary Morrison agreed to sell some of
<br />lege, but the sales of local irrigation water
<br />her shares but, remembering how bitter
<br />added to his concerns about his father's
<br />her late husband was after the first Aurora
<br />deepening financial struggle. "I saw what
<br />sale, the 82 -year -old is keeping the rights
<br />used to be a family fortune get eaten up by
<br />that water the land she can see from her
<br />that farm." says the younger Mr. Ascher-
<br />home.
<br />mann, now the owner of a Denver -area
<br />History helped persuade Alvin and
<br />landscaping business. "There is only so
<br />Linda Gardner to sell their 25 shares. After
<br />much of that that you can stand before you
<br />refusing to part with his stake in another
<br />wake up and say, 'this is crazy.' "
<br />Colorado ditch, Mr. Gardner's father had
<br />In 1990, Ron Aschermann's fortunes
<br />spent years paying lawyers to make sure
<br />took a disastrous turn. He was sitting in his
<br />his water was delivered.
<br />pickup on a summer afternoon when a hail-
<br />Even so, the Gardners are reluctant. The
<br />storm rolled in from the northwest.
<br />Rocky Ford Ditch waters about a quarter of
<br />Some neighboring farms were spared,
<br />their property and, by harvesting other peo-
<br />but in less time than it takes to eat break-
<br />ple's crops and leasing land, they are still
<br />fast, more than 5100,000 worth of Mr. As-
<br />turning a profit. Moreover, their two sons
<br />
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