Company pledges 50% of labor force and 80% of infrastructure spending for Cadiz Valley Water Project to County residents and businesses
Los Angeles — Cadiz Inc. [NASDAQ: CDZI] (“Cadiz”), a land and water resource development company with 45,000 acres in California’s San Bernardino County, announced today a significant pledge to support County-based labor and materials upon implementation of the Company’s Cadiz Valley Water Conservation, Recovery and Storage Project (“Project”). As part of the Pledge, the Company has committed to purchase 80% of the materials necessary to construct the Project’s facilities from County businesses and to dedicate 50% of the Project’s jobs to County residents, including a goal of 10% for local veterans.
The Water Project proposes to provide a reliable water supply to Southern California communities by capturing and conserving thousands of acre-feet of native groundwater currently being lost to evaporation from the aquifer system beneath the Company’s property in the Cadiz Valley. The Project’s Phase I construction cost requirements are estimated at approximately $225 – $275 million.
According to Inland Empire economist Dr. John Husing, the Project’s total economic impact over its first and second phase could reach approximately $878 million, including significant new tax revenues for the County and the local school district. Dr. Husing also estimates that the Project would create an annual average of approximately 1,100 direct and indirect jobs during construction.
“The Cadiz Project would bring exactly the kind of quality jobs we need in our area, and support local manufacturers,” said City of Fontana Mayor Aquanetta Warren. “With this pledge to keep the project investment and job creation local in the County, the Cadiz Project is a significant opportunity to help the local economy bounce back.”
The County of San Bernardino, which has a population of more than 2 million people, has experienced some of the highest unemployment rates in the State of California and U.S. in recent years. In March 2012, unemployment in San Bernardino County was 12.6%, much higher than the national unemployment rate of 8.2%. In some of the County’s high desert communities, unemployment is considerably higher.
“The project has many benefits and we believe that it has significant benefits for the local economies in San Bernardino County including the potential impact to Adelanto,” said Eric Jensen, President of the Adelanto Chamber of Commerce. “These jobs are good paying jobs that would help support local families and would have a positive ripple effect in our community.”
Several other local Chambers of Commerce in the County, including Rancho Cucamonga, Twentynine Palms, and Needles, have also expressed support for the Project in recognition of its potential to stimulate the local economy.
Construction of the Project facilities, which include a 43-mile steel pipeline and a wellfield, will require a broad array of materials and varied labor force in the areas of construction material production or planning, engineering, fabricated pipe and pipe fitting manufacturing, management, scientific and technical consulting, and firms assisting those operations. Many of the premier suppliers of the materials needed for the Project, including steel, piping and well drilling equipment, are based in San Bernardino County. The Project will rely on these first-class vendors.
“Our San Bernardino County facilities employ over 200 union workers. This project would help to employ these workers during the manufacturing and construction of the required 43 mile pipeline,” said Dennis Shearer, District Sales Manager for NOV Ameron which has facilities in Etiwanda and Fontana.
About the Pledge
With its pledge, the Company will dedicate 80% of purchases required for the Project’s infrastructure and facilities to San Bernardino County businesses. Once hiring begins following completion of the permitting process, Cadiz commits that 50% of the new jobs created will be reserved for San Bernardino County residents. Veterans in San Bernardino County, including those based in nearby Twentynine Palms, have been among the hardest hit by economic downturn in the County. The Company will provide local veterans first preference over a minimum of 10% of available Project jobs and will work with local military bases to ensure this goal is achieved.
Project hiring will not begin until the Project’s permitting process is complete. To view a copy of the Pledge, visit www.cadizinc.com/County-Pledge. Additional information about the economic impacts of the Project can be found at http://cadizinc.com/downloads/EconomicImpact_Report.pdf.
About the Project
The Project proposes to capture and conserve thousands of acre-feet of native groundwater that will otherwise be lost to evaporation and deliver approximately 50,000 acre-feet per year throughout Southern California. The Project also offers storage capacity that can be used to “bank” annual supplies in wet years without the high rates of evaporative loss suffered by local surface reservoirs.
Through implementation of established groundwater management practices, the Project will create a sustainable annual water supply for Project participants, which include Santa Margarita Water District, Three Valleys Municipal Water District, Suburban Water Systems, Golden State Water Company, Jurupa Community Services District and California Water Company. To safeguard the environment, the Project includes a broad monitoring and mitigation safety net for Project operations features to provide the strongest assurance that the Project will be operated in a manner that causes no significant impact.
About Cadiz Inc.
Founded in 1983, Cadiz Inc. is a publicly-held renewable resources company that owns 70 square miles of property with significant water resources and clean energy potential in eastern San Bernardino County, California. The Company is engaged in a combination of water supply and storage and organic farming projects. In 2009 Cadiz adopted a wide-ranging “Green Compact” to implement environmental conservation and sustainable management practices at its properties. For more information about Cadiz, visit www.cadizinc.com