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Suncoast Pasco News

Deliverance Delayed

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The Tampa Tribune

Published: December 17, 2008

For some people in southwestern Pasco County, the turmoil roiling the world's credit market is forcing them to put their hopes for an end to a long-running problem on hold. Many customers of the privately run Aloha Utilities were pleased when the state-chartered Florida Governmental Utility Authority brokered a deal under which Aloha would, in effect, be absorbed into Pasco County Utilities. For years customers complained - to the county, the Florida Public Service Commission and pretty much anyone who would listen - about the discolored and smelly "black" drinking water that comes out of their taps. They are confident that the county will fix the problem once it gains operational control over the Aloha system via the FGUA purchase.

Last week, however, FGUA officials said the authority can't close on the deal because it hasn't found anyone to put up money for the roughly $90 million deal. Brian Armstrong, a FGUA attorney, said the authority had "pursued every line of financing we could think of" without success. Even FGUA's usual source for deal-making cash, Bank of America, the nation's second largest banking corporation, balked at financing the whole deal.

Armstrong says FGUA may be able to get the Aloha deal paid for early next year. Given the current state of the credit market, however, we hope that's not too optimistic.

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