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City of Dodge City City Commission Meeting Agenda Packet 2026-05-18

City Eyes 20-Year Water Rights Purchase from JR Farms

$10,000,000.00 total purchase price (3,732 acre-feet at $2,679.53 per acre-foot; $2.5 million at closing, balance financed at 3.5% over 20 years)Town of DodgeJR FARMSMay 18, 2026

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Description

Dodge City’s administration recommends approving a Water Rights Sale Contract with JR Farms as part of a $10 million purchase of 3,732 acre-feet of water rights, including a $2.5 million down payment and 20-year financing at 3.5%. The agreement includes a $50 per acre-foot leaseback so JR Farms may continue using the water until municipal wells are developed.

Contract Details

Contract Amount

$10,000,000.00 total purchase price (3,732 acre-feet at $2,679.53 per acre-foot; $2.5 million at closing, balance financed at 3.5% over 20 years)

Vendor

JR FARMS

Agency

Town of Dodge, KS

Contract Type

OTHER

Document Date

May 18, 2026

Contract Term

20-year installment obligation note at 3.5% interest following $2.5 million down payment

Renewal Info

Purchase is financed over 20 years through an annually-appropriated installment note; leaseback of water use continues until conversion to municipal use via new wells.