City of Las Cruces Wants To Acquire Moongate Water Co.

The city of Las Cruces wants to buy a major water plant on the east Mesa, a plant it values at close to $4-million. But the owners say it is worth more and they are not selling.

Jeff Gariano, who owns Moongate Water Co. with his dad, says he was never asked for an appraisal or was even told one was being conducted. Instead, he says he found out in a city newsletter.

“There’s nothing to negotiate,?Gariano said. ?Moongate is not for sale.”

Gariano says his father spent the past 40 years establishing Moongate Water Co., which serves more than 4,700 customers in the east Mesa.

At least one customer agrees there is no reason to stop now.

“These guys been working their butts off through the years to get everything and now somebody wants to come take it away,? Ramon Enriquez said. ?I don’t think it’s right.”

That somebody is the city of Las Cruces.

In a recent release, the city manager says an appraiser valued Moongate Water Co. at about $3.8 million, including water rights and physical infrastructure.

If Moongate refuses to sell, the city has threatened to use eminent domain.

But Gariano says the city?s price is way off. The facilities alone are worth at least $25 million, Gariano said. And cost aside, Gariano wants to know why the city wants to take over.

“The city has, over the years, come in and changed their opinion as to areas they want to serve. They first refused to serve an area and 20 years later they come back and say, “No, we’re going to serve this area now,?? Gariano said.

City official declined all requests to further common the issue.

Now customers are left asking the same question.

“I was really frustrated as a customer that, they weren’t looking to sell it so why is it being forced upon them,” Dan Banks said.

Customers say they are happy with their water service and are now wondering why anything has to change.

?We got the best water in Cruces and the best service – why should we go with somebody else,? Enriquez said.

The city has not yet proceeded with any legal action, Gariano said.