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Home My WebLink About24-51 Approving the Meritage Homes Native Water Credit Purchase Agreement 07-24-2024RESOLUTION NO.24-51 A RESOLUTION OF THE BOARD OF TRUSTEES OF THE TOWN OF FIRESTONE, COLORADO, ACTING BY AND THROUGH ITS WATER ACTIVITY ENTERPRISE, APPROVING THE MERITAGE HOMES OF COLORADO INC NATIVE WATER CREDIT PURCHASE AGREEMENT WHEREAS, Chapter 1.08 of the Firestone Municipal Code ("Code") requires land developers to agree to dedicate a certain amount of "water rights" and/or "shares" before annexing new land into the Town of Firestone; and WHEREAS, pursuant to the Code, a land developer must dedicate "water rights" and/or "shares" in payment of water connection charges and before recording a subdivision plat and/or receiving a building permit ("Water Rights Dedication"); and WHEREAS, Meritage Homes of Colorado, Inc. ("Buyer") is a land use applicant who has agreed to dedicate "water rights" and/or "shares" to Firestone pursuant to an Annexation Agreement dated May 2, 2002 and described as the Farnsworth Annexation ("Annexation Agreement"), and must dedicate those "water rights" and/or "shares" prior to recording a subdivision plat; and WHEREAS, Buyer is the owner or is under contract and seeking to develop certain lands within the Town of Firestone, as more fully described and depicted on the attached Exhibit 1 ("Property") which is made a part of this resolution; and WHEREAS, Buyer has need for additional "water rights" and/or "shares" to fulfill Buyer's water dedication requirements for the planned development on the Property; and WHEREAS, the Town of Firestone owns certain water rights, which it has offered to Buyer in the form of Native Water Credits to assist Buyer in achieving Buyer's water dedication requirements pursuant to the Code; and WHEREAS, Buyer is interested in purchasing the Native Water Credits from the Town of Firestone as set forth in the Native Water Credit Purchase Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF FIRESTONE, COLORADO: The Native Water Credit Purchase Agreement between the Town of Firestone and Meritage Homes of Colorado, Inc. 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 Agreement on behalf of the Town. INTRODUCED, READ, AND ADOPTED this 24th day of July, 2024. I.- F STO OLORADC �. TOWN j' 10 8� on Conya M r t � f0 gy. ST: 0`� APPROVED AS TO F c��lNT`( 'C' -yA il IM — Missy Carranco, Deputy Town Clerk William ayas i, Attorney Docusign Envelope ID: 208321FF-OEF6-47E9-A208-D055F9A819EE NATIVE WATER CREDIT PURCHASE AGREEMENT 4day This N tivee Water Credit Purchase greement ("Agreement"), made and entered into this v of R , 207 "Effective Date"), by and between the Town of Firestone acting by 61nd through its Water Activity Enterprise ("Firestone") and Meritage Homes of Colorado, Inc. whose address is 8400 E. Crescent Parkway, Suite 200, Greenwood Village, CO 80111 ("Buyer"); RECITALS WHEREAS, the Firestone Municipal Code ("Code") requires land developers to agree to dedicate a certain amount of "water rights" and/or "shares" before annexing new land into Firestone; and WHEREAS, pursuant to the Code, a land developer must dedicate "water rights" and/or "shares" in payment of water connection charges and before recording a subdivision plat and/or receiving a building permit; and WHEREAS, Buyer is a land use applicant who has agreed to dedicate "water rights" and/or "shares" to Firestone pursuant to an Annexation Agreement dated May 2, 2002 ("Annexation Agreement"), and must actually dedicate those "water rights" and/or "shares" prior to recording a final subdivision plat or receiving a building permit; and WHEREAS, Buyer is the owner or is under contract of certain lands within the Town of Firestone, as more fully described and depicted on Exhibit 1 (the "Property"), which Buyer is seeking to develop; and WHEREAS, Buyer has need for additional "water rights" and/or "shares" to fulfill Buyer's water dedication requirements for the planned development on the Property; and WHEREAS, Firestone owns certain water rights, which it has offered to Buyer in the form of Native Water Credits to assist Buyer in achieving Buyer's water dedication requirements pursuant to the Code; and WHEREAS, Buyer is interested in purchasing the Native Water Credits from Firestone as set forth in this Agreement; and AGREEMENT NOW, THEREFORE, in consideration of the foregoing Recitals and the mutual agreement, and promises set forth herein, the receipt and sufficiency of which are hereby acknowledged by both Parties, the Parties agree as follows: Docusign Envelope ID: 208321 FF-OEF6-47E9-A208-DO55F9A819EE 1. Recitals. The foregoing Recitals are incorporated herein as if fully set forth. 2. Native Water Credits. A "Native Water Credit" shall be equivalent to one acre-foot of water as needed for Buyer's water dedication requirements pursuant to the Code. The Native Water Credits are derived from water rights which are currently owned by Firestone. The Native Water Credits shall be used solely for Buyer's water dedication requirements as described herein and shall not survive termination of this Agreement by either party. 3. Purchase Price. Provided that the Buyer acquires the Property, Buyer agrees to pay the Purchase Price of $5,609,000.00 for 79 Native Water Credits. The first half of the Purchase Price ($2,804,500) is due and payable fourteen (14) days from the Effective Date of this Agreement. If the first half of the Purchase Price is not paid on or before fourteen (14) days from the Effective Date of this Agreement, the Agreement shall be voided. The second half of the Purchase Price is due and payable no more than twenty (20) days after Final Plat approval or by December 2, 2024, by 5:00 p.m., whichever occurs first. In the event the Buyer does not deliver the second half of the Purchase Price by December 2, 2024, by 5:00 p.m., this Agreement shall terminate and neither party shall have any further obligations hereunder, except as provided in Paragraph 6 below. 4. Dedication. The Native Water Credits purchased by Buyer herein shall be deemed automatically dedicated to Firestone, at the execution of this Agreement, to fulfill the water dedication requirement necessary for Buyer to obtain a final plat for the Property. 5. No Assignment. ment. This Agreement shall not be assigned by Buyer without prior written approval from Firestone. The Native Water Credits described herein are non -transferable and may only be assigned due to a sale or conveyance of the Property by Buyer. 6. Unused Native Water Credits. If unforeseen circumstances occur that result in Buyer needing less than all of the Native Water Credits acquired by this Agreement for the final plat of the Property, Buyer hereby agrees that the excess Native Water Credits shall automatically void upon recordation of a final plat for the Property. If any Native Water Credits are voided due to recordation of final plat of the Property, Firestone shall remit the equivalent of the Purchase Price for each Native Water Credit voided to Buyer. If unforeseen circumstances occur that result in the Final Plat not receiving approval or the Buyer does not acquire the property by December 2, 2024, this Agreement shall be voided and the first half of the Purchase Price paid by the Buyer shall be fully refunded to the Buyer no later than fourteen (14) days after the Agreement is voided. 7. No Third Party Beneficiary Status. Nothing in this Agreement shall be construed as assigning all or any portion of any agreement in which Firestone is a party nor any of the benefits derived therefrom. Docusign Envelope ID: 208321 FF-OEF6-47E9-A208-DO55F9A819EE 8. Entire Agreement. This Agreement represents the complete agreement between the Parties and no oral modification shall be recognized. Any amendment or additions shall be made in writing signed by both parties. 9. Severability. If any provision of this Agreement shall be held to be invalid or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable. If a court finds that any provision of this Agreement is invalid or unenforceable, but that by limiting such provision it would become valid and enforceable, then such provision shall be deemed to be written, construed, and enforced as so limited. 10. BindingEffect. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective heirs, administrators, successors and assigns. 11. Jurisdiction and Venue. This Agreement shall be governed and its terms construed under the laws of the State of Colorado and venue shall be in the County of Weld. IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date and year first above written TOWN OF FIRESTONE, acting by and through its Water Activity Enterprise w Print: cat di — Title: BUYER: MERITAGE HOMES OF COLORADO, INC ENDocuSigned by: O, s"Itti,a. By: Mike Salmina Print: vice President - Land Acquisition Title: