HomeMy WebLinkAboutResolution 2004-048 first amendment and addendum to agreement for construction of water facilities with diamond ventures, continental reserve llc and pima farms 160 llcMARANA RESOLUTION NO. 2004-48
RELATING TO WATER SERVICE; APPROVING AND AUTHORIZING THE EXECUTION OF
THE FIRST AMENDMENT AND ADDENDUM TO TOWN OF MARANA AGREEMENT FOR
CONSTRUCTION OF WATER FACILITIES AND PROVISIONS OF WATER UTILITY
SERVICE BETWEEN THE TOWN OF MARANA AND DIAMOND VENTURES, INC,
CONTINENTAL RESERVE, LLC AND PIMA FARMS 160, LLC, PERTAINING TO THE
IRONWOOD RESERVE PROJECT.
WHEREAS, the Town and the Developer have entered into an Agreement for Construction
of Water Facilities on April 18, 2000, for Continental Reserve; and
WHEREAS, Marana and Developer have each performed their respective obligations to date
under the Agreement; and
WHEREAS, Marana has concluded that its municipal water supply system does not need all
of the well production and storage reservoir capacity at Continental Reserve as required by the
Agreement; and
WHEREAS, Developer intends to facilitate the development, as a Master Developer, of a
new project known as Ironwood Reserve, and desires the provision of water service to and within
said project; and
WHEREAS, Marana is willing to expand the Agreement to provide water service to and
within Ironwood Reserve in accordance with the Municipal Code ofMarana ("Marana Code") and in
accordance with the terms of the Amendment and Addendum; and
WHEREAS, the Mayor and Council find that the terms and conditions of the Amendment
and Addendum are in the best interest of the Town.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE
TOWN OF MARANA, ARIZONA, AS FOLLOWS:
SECTION 1. The Agreement of Construction of Water Facilities and Provisions of Water
Utility Service between Marana and Developer, attached as Exhibit A to and incorporated here by
this reference, for construction of water facilities and provisions for water utility service, is hereby
authorized and approved.
SECTION 2. The Mayor is hereby authorized and directed to execute, and the Town Clerk
in hereby authorized and directed to attest to, said Exhibit A for and on behalf of the Town of
Marana.
SECTION 3. The various Town officers and employees are authorized and directed to
perform all acts necessary or desirable to give effect to this resolution.
PASSED A ND ADOPTED B Y T HE MAYOR A ND COUNCIL O F THE TOWN OF
MARANA, ARIZONA, this 20th day of April, 2004.~/'Jr-
ATTEST:
lyn C~Bronson, Town Clerk
APPROVED AS TO FORM:
/l~a~ Cassi~,~o-~n A~o~y
{~nA~o~ey /
RSO 040420 Pima Farms, Ironwood Reserve RSO 2004-48 2 APM 04/14/2004
F. ANN RODRIGU~ RECORDER
RECORDED BY: T:"
DEPUTY RECORDER
8047 PE2
DO~T: 12297
Pb .: 3792
NO. OF PAGES: 5
SEQUENCE: 20040890779
05/07/2004
AAG 16:35
SMARA
TOWN OF MARANA
ATTN: TOWN CLERK
13251 N LON ADAMS RD
MARANA AZ 85653
MAIL
AMOUNT PAID $ 8.00
First Amendment and Addendum
to Agreement between
Town of Marana
and
Diamond Ventures, Inc., Continental Reserve II, LLC, & Pima Farms 160, LLC
for
Construction of Water Facilities
and
Provision of Water Utility Service
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Ironwood Reserve
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Original 1 of 2
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FIRST AMENDMENT AND ADDENDUM
TO TOWN OF MARANA
AGREEMENT FOR CONSTRUCTION OF WATER FACILITIES
AND PROVISION OF WATER UTILITY SERVICE
This FIRST AMENDMENT and ADDENDUM TO TOWN OF MARANA
AGREEMENT FOR CONSTRUCTION OF WATER FACILITIES AND PROVISION
OF WATER UTILITY SERVICE ("Amendment and Addendum"), entered into as of the
20th day of April, 2004, by and between the TOWN OF MARANA, ARIZONA, an
Arizona municipal corporation (hereinafter referred to as "Marana") and Diamond
Ventures, Inc., an Arizona corporation, Continental Reserve II, L.L.c. an Arizona limited
liability company and Pima Farms 160, L.L.c., an Arizona limited liability company
(hereinafter collectively referred to as the "Developer" or "Applicant") amends and adds
to that AGREEMENT FOR CONSTRUCTION OF WATER FACILTIES
("Agreement"), entered into between Marana and Developer on April 18, 2000.
RECITALS
WHEREAS, Marana and Developer have each performed their respective
obligations to date under the Agreement; and
WHEREAS, Marana has concluded that its municipal water supply system does
not need all of the well production and storage reservoir capacity at Continental Reserve
contemplated and required by the Agreement, due to the fact that the density of
development at Continental Reserve will be less than originally contemplated; and
WHEREAS, Developer intends to facilitate the development, as a Master
Developer, of a new project known as Ironwood Reserve, by means of sales of portions
thereof to other developers, and desires the provision of water service to and within said
project; and
WHEREAS, Marana is willing to provide water service to and within Ironwood
Reserve in accordance with the Municipal Code of Marana ("Marana Code") and in
accordance with the terms of this Amendment and Addendum.
COVENANTS
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NOW, THEREFORE, in consideration of the Recitals set forth above and the
mutual covenants, conditions and agreements set forth below, the parties agree as
follows:
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1. DEFINITIONS
1.1 Applicant or Developer: Diamond Ventures, Inc., an Arizona corporation,
Continental Reserve II, L.L.C., an Arizona limited liability company, and
Pima Farms 160, L.L.C., an Arizona limited liability company, and their
successors and assigns.
Subsection 1.2 ofthe Agreement is hereby amended to read as follows:
1.2 Property: That certain property or real estate developments known as
Continental Reserve and Ironwood Reserve, as shown on Exhibit "A" and
Exhibit "D," respectively, attached hereto and made a part hereof.
2. AMENDMENTS.
2.1 Subsection 2.3(a)(i) of the Agreement IS hereby amended to read as
follows:
"Water Production Facilities." Developer shall convey to Marana one (1)
well with a production capacity of not less than one thousand (1,000)
gallons per minute.
2.2 Subsection 2.3(a)(ii) of the Agreement IS hereby amended to read as
follows:
"Interconnection." Developer shall design and construct at Developer's
own expense those water line and appurtenant facilities necessary to
interconnect Continental Reserve and Ironwood Reserve to the municipal
water supply system of Marana in a manner acceptable to Marana. Such
facilities shall include the existing twelve-inch (12") water line in Pima
Farms Road and the twelve-inch (12") water line extension thereto yet to
be constructed by Developer.
2.3 Subsection 2.3(a)(iii) of the Agreement is hereby amended to read as
follows:
"Storage." Developer shall construct a storage tank of one million
(1,000,000) gallons storage capacity.
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2.4
Subsection 3.4 ofthe Agreement is hereby amended to read as follows:
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The words "Continental Reserve," as they appear in the fourth line are
deleted, and the words "the Property" substituted in their place.
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3.
COSTS OF CONSTRUCTION OF WATER FACILITIES
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3.1
A new paragraph 3.5 is added to the Agreement to read as follows:
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"In further consideration of Developer's construction of the twelve-inch
(12") water line to interconnect Ironwood Reserve to the municipal water
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supply system of Marana, and pursuant to the provisions of Marana Code
~14-4-1(B)(3)(vii) and ~14-4-3(B) and (C), Marana shall make refund
payments of $200 for each residential lot water connection occurring in
Ironwood Reserve subject to the terms and conditions of this Subsection
3.5. In that regard, such water line shall be deemed to be and shall be
treated as a "protected main" under the Marana Code. Marana shall make
refund payments to Developer on or before January 31 and July 31 of each
year for the preceding period ending December 31 and June 30,
respectively. This refund obligation shall (i) not apply to any connections
made during any period in which Developer is in breach of this
Agreement, (ii) automatically terminate on the tenth (lOth) anniversary of
this Addendum and Agreement, subject to the continuing obligation of
Marana to pay Developer any refunds accrued, but unpaid, as of the tenth
(lOth) anniversary and (iii) in no event succeed a cumulative amount of
Fifty Nine Thousand Dollars and no/IOO ($59,000.00).
3.2 A new Subsection 3.6 is added to the Agreement to read as follows:
"In consideration of Marana's willingness to amend Subsections 2.3(a)(i)
and 2.3(a)(iii) of the Agreement to reduce the number of Water Facilities
that Developer is obligated to construct Developer shall pay to Marana the
sum of Three Hundred Thousand Dollars ($300,000) as an 'in-lieu fee,'
which Marana may use at its sole discretion, to supplement the existing
water facilities to provide water production, storage and fire flow capacity
to the Property when fully developed. Such sum shall be subject to
reimbursement pursuant to Subsection 3.4."
IN WITNESS WHEREOF, the parties have hereunto set their hands the day and
year first above written.
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Town Clerk
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DEVELOPER
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DlAMOND~TURE. S,INC.
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Pima Farms 160, L.L.C.
By: 'U,CtMII'Y\l~,<<< I'~'" its
Managing Member
By: Its C~
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CONTINENTAL RESERVE II, L.L.c.
By: Dl (),t;..,.."AV*, 4its Managing
Member
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