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Premiums as match provoke split views in RACC; DOJ minimum match emphasized
Summary
RACC debated whether premiums (amounts above appraised value) should count as eligible match; opinions split—some members warned premiums inflate markets, others said premiums can be needed to secure high-value water deals. Staff noted match defaults will be set per offering and that Department of Justice requires at least 5% match.
Renee Davis raised the topic of whether a premium—payment above an appraisal—to incentivize a water-right holder should be eligible as match. Some RACC members opposed premiums, arguing they risk inflating markets; Anton Quiono said federal funding experience counsels against paying above fair market value. "I would definitely prefer to steer clear of them," he stated.
Others, including Steve Perrette, noted valuations sometimes underestimate the price needed to secure a transaction and that paying more may be necessary to acquire high-value water. Renee clarified that match requirements will be set by each grant offering but must meet a Department of Justice floor: "It must be at least 5% per Department of Justice," she said. The group did not adopt a final policy and asked staff to take feedback into account when finalizing match language.
