HomeMy WebLinkAbout20-18 Amendment to Water Credit Purchase Agmt with Mortgage Consultants LLCRESOLUTION N0.20-18
A RESOLUTION OF THE BOARD OF TRUSTEES OF THE TOWN OF FIRESTONE,
COLORADO, APPROVING THE FIRST AMENDMENT TO WATER CREDIT
PURCHASE AGREEMENT BETWEEN THE TOWN OF FIRESTONE AND
MORTGAGE CONSULTANTS, LLC
WHEREAS, Mortgage Consultants, LLC,"subdivider," as that term is
defined in Section 16.04.020 of the Firestone Municipal Code ("Code"), who agreed to dedicate
"water rights" and/or "shares" to the Town of Firestone ("Firestone") pursuant to an Annexation
Agreement dated January 16, 1999 ("Annexation Agreement"), and who must actually dedicate
those "water rights" and/or "shares" prior to the first recording of a final plan, final subdivision,
or final development plan or receiving a building permit; and
WHEREAS, Firestone obtained certain water supplies and has made these water supplies
available to Bidders pursuant to the Firestone Municipal Water Credit Bidding Rules and
Procedures ("Bidding Rules and Procedures") as Water Credits; and
WHEREAS, Buyer placed a successful bid and was awarded the right to and purchase of
131 Water Credits from Firestone; and
WHEREAS, Firestone, in its sole discretion, agreed to accept the Water Credits to fulfill
Buyers dedication of "water rights" and/or "shares" requirement as outlined in the Code and
specified in the Water Credit Purchase Agreement ("Agreement") entered into by Firestone and
Buyer on February 8, 2018; and
WHEREAS, Section 8 of the Agreement provides:
Expiration. The Water Credits described herein shall expire on February 7, 2020
("Expiration Date") if not dedicated to Firestone prior to the Expiration Date. All of Buyer's rights
in and to the Water Credits, and/or to dedicate said Water Credits, shall extinguish if not dedicated
prior to the Expiration Date. Buyer shall not be entitled to any proceeds or reimbursement from
any sale subsequent to the Expiration Date; and
WHEREAS, Buyer has advised Firestone that, as a result of contractual difficulties in
securing a builder, it will be unable to meet the Agreement's February 7, 2020 Expiration Date,
which would result in forfeiture of its Water Credits and any claim to proceeds or reimbursement
from any subsequent sale of the forfeited Water Credits; and
WHEREAS, Buyer in the belief that it can now meet the Agreements obligation has
requested that the Agreement's Expiration Date be extended for one year; and
WHEREAS, Firestone as an accommodation to Buyer is willing to grant cone -time
extension of the Expiration Date till February 7, 2021; and
WHEREAS, in consideration of such extension, Buyer agrees that it shall not request any
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additional extension of the Agreement's Expiration Date,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE
TOWN OF FIRESTONE, COLORADO:
The First Amendment to Water Credit Purchase Agreement between the Town of Firestone and
Mortgage Consultants LLC is approved in substantially the same form as the copy attached
hereto and made a part of this resolution and the Mayor is authorized to execute the First
Amendment on behalf of the Town.
INTRODUCED, READ AND ADOPTED this 22nd day of January, 2020.
ATTEST:
Koenig, T
TO F
Town Attarney
�J
FIRST AMENDMENT TO WATER CREDIT PURCHASE AGREEM*E T BETWEEN
THE TOWN OF FIRESTONE AND MORTGAGE CONSULTANT1.S., INC.
WHEREAS; Mortgage Consultants; LLG, ("Buyer") is a "subdivideras that term is
defined in Section 16604,020 of the -Firestone Municipal Code ("Code"), who agreed to dedicate
'water rights" and/or "shares" to the Town of Firestone ("Firestone") pursuant to an Annexation
Agreement dated January 16, 1999 ("Annexation Agreement"),. and who. must actually dedicate
those "water rights" and/or "shares" prior to the first recording of a final wplan,. final subdivision,
or final development plan or receiving a building permit; and
WHEREAS., Firestone obtained certain water supplies and ii7ade these. water supplies
available to Bidders pursuant. to the Firestone Municipal Water Credit. Bidding Rules and
Procedures ("Bidding Rules and Procedures") as Water Credits; and
WHEREAS, Buyer placed a successful bid and was awaided the right to and purchase of
131 Water Credits from Firestone; and
WHEREAS, Firestone,. in its sole discretion, agreed to accept the Water Credits to fulfill
Buyers dedication of. "water rights" and/or "shares" requirement as outlined in the Code and
specified. in the Water Credit Purchase Agteemerit ("Agreement") entered into by Firestone. and
Buyer on February 8, 2018; and
WHEREAS, Section 8 of the Agreement provides:
Expiratian. The Water Credits described herein..shall expire on February 7, 2020
(."Expiration Date".) if not dedicated to Firestone prior to the Expiration Date. A.H. of
Buyer's rights in and to the Water Credits, and/or to dedicate said Water Credits., shall
extinguish, if not dedicated prior to the Expiration Date, Buyer shall not be entitled to any
proceeds' or reimbursement from *any sale subsequent to the Expiration Date; and
WHEREAS; Buyer has advised Firestone. that; as a result of contractual difficulties in
securing a builder, it will be unable to meet the Agreement's February 7, 2020 Expiration Date,
whichwould result 'in forfeiture of its Water Credits and any claim to proceeds or reimbursement
from any subsequent sale by Firestone of the :forfeited Water Credits; and
WHEREAS, Buyer iwthe belief that it can now meet the Agreement's obligations has
requested that the Agreement's Expiration Date be extended for one yeas; and
WHEREAS, Firestone :as an accommodation to Buyer is willing to grant .a one time
extension of tlxe Expiration Date till February 7, 2021; and
WHEREAS; in consideration of such extension; Buyer agrees that it shall not request any
additional extension'of the Agreement's Expiration Date;. and
WHEREAS, Section, 9 of the Agreement provides that it may be amended by a writing
signed by both parties.
THEREFORE, in consideration of the terms and conditions set forth herein, including tlieabove
recitals which are included herein and made a part of this .First Amendment, the parties agree as
follows:
Section.One: Section 8; "Expiration of the Water Credit Purchase Agreement is amended: to
read as follows:
Expiration, The Water Credits described herein shall C;Apire on February 7, Lan("Expiration Date") if not dedicated. to Firestone prior to the. Expiration Date. All of
Buyer's rights in and. to the Water Credits, and/or to dedicate said Water Credits, shall
extinguish if ont. dedicated prior to the Expiration Date. Buyer -shall not be entitled to any
proceeds or reimbursement from any salve subsequent to the Expiration Date; and
Section Two: All ofher terms and�conditions of the Agreement remain in full fprce and effect.
>CN W ITNESS WHERE.4F, the parties have executed this Amendment with an effective
date of February 6; 2020.
TOWN OF
ATTEST:
ie sica Koenig, 0 1 Clerk
AS TO FORM:
�1"own Attorney
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By:
ANTS.,. LLC,
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