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HomeMy WebLinkAbout20191723RESOLUTION RE: APPROVE SPECIFIC PERFORMANCE CONTRACT FOR WATER SHARES AND AUTHORIZE CHAIR PRO-TEM TO SIGN - CENTRAL COLORADO WATER CONSERVANCY DISTRICT WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Board has been presented with a Specific Performance Contract for Water Shares between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, and the Central Colorado Water Conservancy District, commencing upon full execution of signatures, with further terms and conditions being as stated in said contract, and WHEREAS, after review, the Board deems it advisable to approve said contract, a copy of which is attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Specific Performance Contract for Water Shares between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, and the Central Colorado Water Conservancy District, be, and hereby is, approved. BE IT FURTHER RESOLVED by the Board that the Chair Pro -Tern be, and hereby is, authorized to sign said contract. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 6th day of May, A.D., 2019. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ATTEST: dettAvsj j /to;4 Weld County Clerk to the Board BY: Deputy Clerk AP " .) D A County A torney Steve Moreno Date of signature: 5-13-101 EXCUSED Barbara Kirkmeyer, Chair P. Conwa K. James Cc:CA(BB/ec) 10/06120 2019-1723 EG0076 SPECIFIC PERFORMANCE CONTRACT Received from the Ground Water Management Subdistrict of the Central Colorado Water Conservancy District, Purchaser, the sum of $3000.00 in the form of a check, as earnest money, to be held by Lawrence Jones Custer Grasmick LLP. for the following described water rights and water stock: 28 shares of the Fulton Irrigation Company represented by Certificate 3059 and 2 Shares of the Lupton Bottoms Ditch Company represented by Certificate Nos. 317 and 319. with all rights appertaining thereto and all easements and rights of way appurtenant thereto, which water rights and water stock Purchaser agrees to buy upon the following terms and conditions for the purchase price of $2.310,000 (Two Million Three Hundred Ten Thousand Dollars), $3000.00 is hereby receipted for and the balance is payable by check at closing. 1. Title shall be merchantable in the Seller and the Seller shall provide a copy of the stock certificate for the shares upon execution of this Contract. Subject to payment as above provided, and in compliance with the other terms and conditions by Purchaser. Seller shall execute and deliver an assignment of water stock and a Special Warranty Deed conveying free and clear title to the Purchaser on June 28, 2019 or by mutual agreement at an earlier date. Seller shall take all actions necessary to transfer the shares to Purchaser. Any transfer fee shall be paid by Purchaser. 2. Seller warrants that title to the water rights and water stock will be conveyed free and clear of all lien encumbrances, assessments and leases of' any kind. All assessments due, or made by the company prior to the date of closing. shall be paid by Seller. 3. Closing shall be at the offices of Lawrence Jones Custer Grasmick. LLP. 5245 Ronald Reagan Blvd, Suite 1, Johnstown CO 80534 on June 28, 2019 at 10:30 a.m. or at such other hour on that day as agreed by the parties. 4. In the event any diversion structures, storage structures or other devices necessary for the delivery and use of this water are destroyed or damaged in any way, between the date of this contract and the date of closing. this contract may, at the option of the Purchaser herein, be declared null and void and any earnest money paid shall be immediately returned to Purchaser. 5. Time is of the essence hereof and if any payment or other condition hereof is not made, tendered or performed by either the Seller or Purchaser as herein provided then this Contract, at the option of the party who is not in default, may be terminated by such party. In the event of such default by the Seller, and the Purchaser elects to treat the Contract as terminated. then all payments made herein shall be returned to Purchaser. In the event of such default by the Seller, and the Purchaser elects to treat the contract as binding. Purchaser shall have a right to an action for specific performance and damages, including attorney's fees and court costs. In the event of such default by Purchaser then all payments made hereunder shall be forfeited and QO19-(1Q3 retained on behalf of Seller as liquidated damages and Seller shall not be entitled to any further recourse. 6. After acceptance of this contract, Seller shall provide to Purchaser, in addition to a copy of the water stock certificate, copies of any other documents which show or create an encumbrance upon the water stock or water rights. If title to the water is not merchantable and written notice of defect(s) is given by the Purchaser or Purchaser's agent to the Seller or Seller's agent on or before closing, and shall not be rendered merchantable within thirty days after such written notice, then this contract, at Purchaser's option, shall be void and of no effect and each party hereto shall be released from all obligations hereunder and the payments made hereunder shall be returned forthwith to Purchaser. 7. As further consideration the Seller, or Seller's agent, agrees to meet with Purchaser's attorney and/or engineer for the purpose of providing Purchaser an affidavit, prior to the time of closing, stating the manner in which the water rights have been used by Seller or his predecessors in title, identifying which acreage has been historically irrigated with the water rights and what crops have historically been irrigated on the acreage with the water rights. Furthermore, Seller agrees to provide Purchaser with and assist Purchaser in obtaining any other necessary information showing the historic use of the water rights the subject of this contract. 8. This contract is contingent upon Seller providing Purchaser the information in paragraphs 6 and 7 for purposes of review by Purchaser's water engineer and attorney, and a determination by Purchaser that there is adequate consumptive use transferable for the agreed price. If the historic use evidence, in Purchaser's opinion, does not support the consumptive use, then at Purchaser's option the contract may be terminated. This Contract is contingent upon Seller executing or obtaining such dry up agreement(s), at closing, in a form acceptable to Purchaser. 9. The representations. warranties and indemnities made by the parties to this contract and the covenants and agreements to be performed or complied with by the respective parties under this contract before the closing date shall be deemed to be continuing and shall survive the closing. 10. This offer shall become a contract binding on the parties if signed by the parties on or before May 15. 2019. 11. The parties will cooperate with each other and execute and deliver such other instruments and take such other steps as may be necessary to effectuate all the provisions of this contract. 12. This document represents the complete contract and option of the parties hereto, and no oral modification shall be recognized. Any amendments or additions shall be made in writing signed by the parties. 13. This contract is binding on the parties hereto, their successors, personal representatives, heirs and assigns. GROUND WATER MANAGEMENT SUBDISTRICT OF THE CENTRAL COLORADO WATER CONSERVANCY DISTRICT Date: '‘i19 By C. Ra dall Knutson, Presid Purchaser Weld County Board of County Commissioners Date: 05/06/2019 By _Tas_R./Ite..._ Mike Freeman, Chair Pro-Tem Seller NAY CD 8 2019 aot°I- I1@3 RE: SPECIFIC PERFORMANCE CONTRACT FOR GROUND WATER MANANGEMENT - CENTRAL COLORAOD WATER CONSERVANCY DISTRICT APPROVED AS TO SUBSTANCE: Elected Official or Department Head APPROVED AS TO FUNDING: /3a4la d&Aza Controller APPROVED AS TO FORM: County Attorney Hello