HomeMy Public PortalAboutaarchway preannexation agmt casa de amigos016 —d 1 °l
PRE -ANNEXATION AGREEMENT
For valuable consideration, the sufficiency of which is hereby acknowledged, this agreement is
entered into this, 13a' day of May, 2008, between the City of Moab, a Utah municipal corporation
("the City"), acting through its City Council, and Casa de Amigos, LLC, as follows:
RECITALS
A. The City desires to annex into City limits properties located in what is known as the North
Corridor, more specifically defined as all of the private property and some publicly -owned
property located north of the current City boundaries, north to the Colorado River. The
North Corridor is more specifically shown in Exhibit A. The purpose of the proposed
annexation of properties in the North Corridor is: (1) to provide the necessary
infrastructure and municipal services for the future economic development of the area; (2)
to protect ground water and surface water quality in the area from septic system
contamination; and, (3) to improve and beautify the north entrance to the City.
B. The City constructed the North Area Trunk Sewer Line to its northern jurisdictional
boundary during the winter of 2005-2006. An illustration of the location of this sewer line
is shown in Exhibit B.
C. The City constructed an additional sewer trunk line that extends north off of the above
described property to the King World and Jim Rob Jeremy Management LLC properties
that are not currently within City boundaries but are within the City's adopted Annexation
boundary.
D. The City now and in the future proclaims no interest in obtaining any existing water rights
that adhere to any of the properties located in the North Corridor nor is it the intent of this
Agreement to challenge any water rights or the uses to which water rights have been
applied.
E. Casa de Amigos, LLC owns real properties situated in the North Corridor more
particularly described in Exhibit C, hereafter called the "Properties". One parcel is
currently developed and operated as the Aarchway Inn Motel. The other two adjacent
parcels are undeveloped.
Es?t 487175 Bk 735 Pg 476 —
Date; 09- jtll-_..2008 4 h Sol; M t{ cl s
Filed By; JAC
GRAND COUNTY CORPORATION
F Or= MOF--.8 CITY
SECTION ONE
CITY WATER SERVICE
1.1 The City currently provides culinary water service through a six (6') inch line to the
Aarchway Inn Motel property as mandated by the Seventh judicial Court of Utah. The
parties further agree that provided the current level of water delivered to the Aarchway Inn
Motel is adequate and safe according to Division of Water Resources, Department of
Natural Resources, State of Utah, Casa de Amigos, LLC will not be required to connect to
the improved City water system to service the existing Aarchway Inn Motel.
1.2 Casa de Amigos, LLC currently pays twice the City water rate for water use for the
Aarchway Inn Motel located on the Aarchway Inn property because the property is located
outside Moab City limits. Annexation will reduce the water payments for the Aarchway
Irm Motel to the standard in -City water rate.
1.3 If Casa de Amigos, LLC wishes to improve their culinary water delivery and fire flow
system to the Aarchway Inn Motel or to deliver culinary water and fire flow to either of
the two undeveloped properties, the City agrees to work with Casa de Amigos, LLC to
supply said water service. In order to receive said water service, Casa de Amigos, LLC
shall complete an application for water service and shall pay all applicable connection and
impact fees for services not currently provided by the City. No additional water service
shall be supplied by the City prior to annexation. Upon annexation of said undeveloped
properties and payment of all applicable connection and impact fees, Casa de Amigos,
LLC shall be permitted to connect to an approved City culinary water system, if said
system is determined to be of adequate size to service the new use contemplated for the
Properties. Should Casa de Amigos, LLC pay to extend the main water line to their
property or properties, and should the City require that said line be upsized to provide for
a greater capacity than required by development contemplated by Casa de Amigos for
their property or properties, then Casa de Amigos shall be entitled to recoup a portion of
said costs from property owners who connect to said line, pursuant to a Cost
Reimbursement Agreement between the City and Casa de Amigos, LLC. Any Cost
Reimbursement Agreement will be executed prior to construction of said line.
1.4 The City agrees to make application to the Utah Department of Transportation for a right-
of-way for the water line extension to the Properties, if necessary.
1.5 If it becomes necessary to upgrade the city main water line to service a new development
on the Properties, Casa de Amigos, LLC hereby agrees to pay and all costs associated with
upgrading and extending the city main water line and necessary service lines to the
Properties, including construction, engineering, testing and sterilization. Casa de Amigos,
LLC further agrees that the design and construction of the water line shall be subject to the
Ent 467175 Pk. 07=5 Po 0477
approval and inspection of the City Public Works Director, and shall be conducted in
accordance with the City's design specifications and in conformance with a site plan
approved by the City Planning Commission. Upon completion and acceptance of the
construction, Casa de Amigos, LLC further agrees to dedicate and transfer title to the main
water line to the City, together with any necessary water line or access easements, subject
only to the warranty as stated in this Agreement. In no case shall extension of the city
maul water line or construction of service lines be a requirement of annexation of the
Properties into city limits.
1.6 Casa de Amigos, LLC warrants that all improvements constructed pursuant to this
Agreement and dedicated to the City, shall be constructed in a workmanlike manner, in
accordance with city -approved plans and specifications, and that all such improvements
shall be free of defects in materials and workmanship for a period of one (I) year from the
date of acceptance of same. Casa de Amigos, LLC or their designee shall promptly repair
or replace any defective work following receipt of written notice under this warranty from
the City.
SECTION TWO
CITY SEWER SERVICE
2.1 The parties acknowledge that the one of the existing parcels owned by Casa de Amigos,
LLC, on which the Aarchway Inn Motel is located, is served by a septic system. This
septic system was designed to handle a multi -room motel. The remaining two parcels are
not served by septic system systems at this time. The parties hereby agree that the
Aarchway Inn Motel may continue to use the currently in -use septic system in lieu of
connection to the sewer system for the motel, provided that the septic system continues to
receive approval by the State of Utah.
2.2 The parties acknowledge that the City sanitary sewer system does not currently extend to
serve the two undeveloped properties. Any future development on the currently
undeveloped properties shall be required to connect to the City sewer system if a City
sewer line runs within two hundred (200) feet of said properties. Upon connection to the
City sewer system, Casa de Amigos, LLC shall pay all required connection and impact
fees assigned to the properties. Casa de Amigos, LLC agrees to dedicate to the City any
access and utility easements necessary to extend and maintain sewer lines to or through the
Property.
2.3 If Casa de Amigos, LLC extends the rnain sewer line to the Properties prior to the
extension of said line by the City, the City agrees to pay $100,000 toward the construction
cost of said main line, provided said extension occurs after annexation of the Property into
City limits, and provided that the City will not pay any costs toward construction of
service lines. The parties agree that if the cost of the main line portion of a sewer line is
less than $100,000, then the City will pay the cost of the main line portion only, and not
the full $100,000. The parties agree that if Casa de Amigos, LLC and/or other property
owners pay for all or a portion of the cost to extend said main sewer line to the Property,
E-fit 4871'75 Bk. 0735 Pg 047
and if the City requires that the line be upsized to handle future development, the
contributing parties shall be entitled to recover costs from other property owners
connecting on to said line through a Cost Reimbursement Agreement among the
contributing parties. No sewer service shall be provided to the Property prior to
annexation. The parties agree that any and all costs associated with construction of sewer
service lines to the Property shall be born entirely by Casa de Amigos, LLC. Service lines
generally serve individual properties and are sized to meet the needs of an individual
property.
2.4 The parties agree that the City's contemplated route for future extension of the main trunk
line in the vicinity of the Properties and adjacent properties is along the western property
line of said properties. This route is referred to as Sewer Main Route A. The parties also
agree that routing the main sewer line as shown in Exhibit F is an acceptable alternative
route for the main sewer line, should Casa de Amigos, LLC develop one or more of the
Properties prior to development of properties located to the north of the Casa de Amigos
Properties. This alternative route is referred to as Sewer Line Route B. The service line
portion of Sewer Line Route B is referred to as Sewer Line Route B Service Line, while
the portion of Sewer Line Route B that runs along Highway 191 is referred to as Sewer
Line Route B Possible Main. The parties agree that Sewer Line Route B may be
abandoned if Sewer Main Route A is determined by the City to be feasible and preferable
to Sewer Line Route B. The parties also agree that unless Sewer Line Route B Possible
Main is determined by the City to act as a sewer main and can accommodate properties to
the north of the Casa de Amigos Properties, Sewer Line Route B Possible Main will act as
a service line and will not be subject to financial contribution from the City. The parties
will agree as to whether Sewer Line Route B Possible Main is a sewer main prior to
construction of said line.
2.5 Casa de Amigos, LLC agrees that if they construct said sewer line, then construction of
said line shall be subject to the approval and inspection of the City Public Works Director,
and shall be constructed in accordance with all design specifications and standards of the
City. Upon completion and acceptance of the construction, Casa de Amigos, LLC agrees
to dedicate and transfer title to the trunk sewer line to the City. Casa de Amigos also
agrees to provide the City with all necessary sewer line and access easements, subject only
to the warranty as stated in this Agreement.
2.6 Casa de Amigos, LLC warrants that any and all improvements constructed pursuant to this
Agreement and dedicated to the City shall be constructed in a workman like mariner, in
accordance with City approved plans and specifications, and that all such improvements
shall be free of all defects in materials and workmanship for a period of one (1) year from
the date of acceptance of same. Casa de Amigos, LLC or their designee, shall promptly
repair or replace any defective work following receipt of written notice under this
warranty from the City.
2.7 The City agrees that when the City sanitary sewer system is extended to the Properties,
Casa de Amigos, LLC will be able to discharge into that system, waste water currently
Ent 487175 BP. 0735 g'u 0479
generated by the existing motel and any future development as defined and approved by
the City Planning Commission.
2.8 The parties agree that Casa de Amigos, LLC shall pay all applicable impact fees upon
connection to the city sewer system, provided that Casa de Amigos, LLC may elect to pay
said fee over 20 years at an interest rate of 4.5% interest per year. Any payment
arrangement must be executed through the City Treasurer's Office.
SECTION THREE
OTHER AGREEMENTS
3.1 The parties agree that should Casa de Amigos, LLC pay to extend water and/or sewer
lines to the Properties prior to the City's extension of said lines, and if the City requires
that Casa de Amigos, LLC oversize said lines for future development, Casa de Amigos,
LLC shall be entitled to recover costs from other property owners connecting on to said
lines through a cost reimbursement agreement with the City.
3.2 The parties agree that the City of Moab will fully and adequately maintain the current
service road that accesses the Aarchway Inn Motel and Holiday Inn Motel, upon transfer
of the road to the City through warranty deed by all owners of said road. The parties agree
that if the City assumes responsibility for said road, then said road will remain a through
road with existing ingresses and egresses. Casa de Amigos, LLC Inn agrees to transfer its
portion of the road to the City at the time the other owners of said road transfer their
portions to the City through warranty deed. The City agrees to encourage and pursue
transfer of said road to the City. The parties agree that the City will not maintain said road
until it obtains title to said road. The parties agree that if the City takes over maintenance
of said road, that the City may remove, at its discretion, the lights that currently exist
along the road. If Casa de Amigos should relocate said lights to the landscaped berm
adjacent to the said road, then the City shall not remove the lights without written
permission from Casa de Amigos.
3.3 Contemporaneous with the signing of this Agreement, the City shall pay to the Spanish
Valley Water and Sewer Improvement District Casa de Amigos, LLC' portion of the
outstanding balance of the Spanish Valley Water and Sewer Improvement District's North
Corridor Bond payment.
3.4 The City agrees to maintain the open storm water conveyance located on the north area of
the Casa de Amigos, LLC Inn motel property. Casa de Amigos, LLC agrees to convey to
the City an easement for this purpose. The City further agrees that this storm water
conveyance location is a temporary location and that the City will work with the Utah
Department of Transportation in facilitating adequate and appropriate drainage routes
through the Properties within easements established for this purpose. The parties agree
that the future location of drainage routes and associated easements shall be agreed upon
by the parties. The parties also agree that once new drainage route and easements are
established, easements for unused routes shall be abandoned.
Ent 467175 Bk. 0735 Pa 0.q8 0
3.5 The parties agree that the conditions and structures described and shown in Exhibit E exist
on the Properties as of the signing of this agreement. It is further agreed that to the extent
that said conditions and/or structures do not conform with applicable City zoning and
other regulations at the time of annexation, that said conditions and/or structures shall be
considered non -conforming uses or non -compliant structures and shall be treated as such
under the Moab Municipal Code. The parties agree that any further development of the
Properties after annexation will conform with all applicable City, State and other
regulations.
SECTION FOUR
ANNEXATION
4.1 Casa de Amigos, LLC and their successors, grantees, and assigns irrevocably consent to
and petition for the annexation of the Properties and releases any right of protest or
opposition to any future annexation of the Properties, or any portion thereof, pursuant to
the terms of this Agreement. Casa de Amigos, LLC has submitted a petition for
annexation, to be included with the multiple -property petition for annexation of the north
area. Casa de Amigos, LLC agrees to execute any supplemental documents necessary to
give effect to this Agreement and facilitate the lawful annexation of the Properties. The
parties agree that the ultimate decision to annex shall rest in the discretion of the City
Council. At such time as an annexation ordinance is adopted, Casa de Amigos, LLC shall
be entitled to all rights, and shall be subject to all other responsibilities, applicable
generally to other persons and properties within the City municipal limits, e.g. sales
taxation, police protection, code enforcement, and the like.
SECTION FIVE
GENERAL PROVISIONS
5.1 This Agreement shall be binding on and inure to the benefit of the successors and assigns
of Casa de Amigos, LLC all rights and duties under this Agreement all necessary exhibits,
plans or other documents called for by this Agreement shall be submitted and accepted by
the City of Moab.
5.2 This Agreement is the product of mutual bargaining. All terms shall be construed in
accordance with their plain meaning, regardless of the extent to which either party
participated in the drafting.
5.3 Failure of a party to exercise any right under this Agreement shall not be deemed a waiver
of any such right, nor shall any course of dealing or previous action or inaction be deemed
a waiver of any rights or claims arising with respect to later or subsequent breaches, acts
or omissions.
Est 467175 Elk 0735 Foci 0481
5.4 The term `Agreement' includes this Pre -Annexation Agreement and all exhibits and
attachments, which shall constitute the sole and complete agreement between the parties.
The Agreement shall supercede all prior agreements or representations, however
evidenced. No modifications to any of the terms of this Agreement shall be binding,
unless reduced to writing and lawfully executed by both parties.
5.5 The place of performance of this Agreement is Grand County, Utah. In the event of any
legal dispute concerning the subjects of this Agreement, including all attachments, the
parties stipulate to venue in the Seventh Judicial District Court, Grand County, Utah. In
any such proceeding the parties waive trial to a jury on all claims and agree that the action
shall be tried to the court.
5.6 In any legal proceeding concerning the terms of this Agreement the substantially
prevailing party shall be entitled to recover its reasonable attorney fees and court costs in
addition to any other relief authorized herein.
5.7 This Agreement shall be governed by Utah law.
5.8 This Agreement does not create any third party beneficiary rights. It is specifically
understood by the parties that; (a) any Project is a private development; (b) the City of
Moab has no interest in, responsibilities for, or duty to third parties concerning any
covenants to the Properties, unless the "City" accepts the improvements pursuant to
Agreement; and (c) Casa de Amigos, LLC Inc. shall have full power and exclusive control
of the property, subject to the conditions of this Agreement.
5.9 In the event of any dispute concerning this Agreement the parties agree to deliver notice to
the other party describing the act, omission, or breach, which notice shall allow the parry
in default a period of not more than thirty (30) days in which to cure or abate the breach or
violation. In addition, prior to filing suit concerning any breach of this Agreement the
parties agree to attempt resolution through mediation or an informal settlement
conference.
5.10 The provisions of this Agreement are severable, and if any portion should be held to be
void or unenforceable, then the remainder of this Agreement shall be construed to be in
full force without reference to the invalid provision.
5.11 In any legal action under this Agreement any party may seek declaratory and/or injunctive
relief, including specific performance, as well as recovery of compensatory damages
resulting. In no instance shall either party be liable for consequential damages, lost profits,
or delay related damages of any kind.
Ent Li8717 5 Elk 0735 35 Pg 048
5.12 All notices under this Agreement must be given in writing by first class or certified mail,
postage prepaid, and delivered to the following addresses:
To the City of Moab:
City of Moab
217 East Center Street
Moab, Utah 84532
Attn: City Manager
To Casa de Amigos, LLC:
Casa de Amigos, LLC Inc.
Mike Bynum
1551 N. Highway 191
Moab, Utah 84532
5.13 This Pre -Annexation Agreement, including Exhibits C, E and F shall be recorded in the
Grand County land records. The remaining provisions of the Agreement shall be held by the
City of Moab Recorder.
IN WITNESS WHEREOF, this Agreement has been executed by the City of Moab,
acting by and through the Moab City Council, which has duly authorized execution,
and by Casa de Amigos, LLC Inc., as of the date(s) specified below.
CITY f F MO
�aydr avic�t!$ I rison Date
eg- EllisQrt; s
City Recorder
Erit 48717-5 5Sk 0735 P9 0483
CASA DE AMIGOS, LLC INC.
County of Grand
On the day of J rat lj
the sarnd.
Date
, personally appeared before me Athael
, who duly acknowledged to me that they executed
My Commission Expires: jUill 30/ Z0/0
State of Utah
County of Grand
}
a6O�v
On the 1'3 day of �Cx.� , personally appeared before me
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the same.
NotarPublic
Residing in: Grand County
MELISSA J BYRD
Notary Public
Stale of Utah
My Comm. Expires Jun 30, 2010
217 E Ceram St Moab UT 14532
V I C_ti
, who duly acknowledged to me that they executed
1)1
Notary Public
My Commission Expires: 62 -30 _20lD Residing in: Grand County
Ent 487175 BED 0735 Rg 0.484
List of Exhibits
Exhibit A — Map of North Corridor
Exhibit B — North Area Trunk Sewer Line Alignment
Exhibit C — Legal Description of Properties
Exhibit D — Restrictive Covenant- NOT APPLICABLE/NOT INCLUDED
Exhibit E — Description of Existing Conditions and Structures
Exhibit F — Description of Acceptable Alternative Route for Trunk Sewer Line
Ent 4-87175 Bit 0735 Fig 0485
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ANNEXATION MAP
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EXHIBIT C
Casa de Amigos, LLC (Aarchway) Properties
Legal Description
02-126-0144
Beginning at a point which bears N 49° 38' W 1011.8 ft from the S1/4 Corner
Section 26 T25S R21E SLB&M, thence N 31° 27' 21" W 38.13 ft, N 41° 26' 53" E
677.03 ft, thence S 47° 37' 29" E 183.76 ft, thence S 53° 34' 41" W 700.91 to POB.
Parcel contains 1.73 acres..
02-126-0138
Beginning at a point which bears N 44° 28' 56" W 1396.99 ft from the S1/4 Corner
Section 26, T 25 S R21E SLB&M, thence N 31° 19 55" W 405.24 ft, thence N 53° 35'
E 518.4 ft, thence along a 3889.3 ft radius curve to left 280.72 ft, (CH=S 40° 50' 10"
E 280.66 ft), thence S 41° 27' 02" W 589.1 ft to POB. Parcel contains 4.28.
02-126-0127
Beginning at a point which bears N 48° 59' W 1048.1 ft from the S1/4 Corner
Section 26 T 25S R21E SLM&B, thence N 31° 20' W 361.6 ft, thence N 41° 27' E
589.1 ft, thence along a 3889.0 ft radius curve to the left 346.0 (CH=S 45° 23' E
3459), thence S 41° 27 W 677.0 ft to POB. Parcel contains 5.0 acres.
r n± 487175 $4 0735 Pq 0486
EXHIBIT D
INTENTIONALLY LEFT BLANK
Ent 48 175 HE: 0735 Pg 0489
EXHIBIT E
Description of Existing Conditions and Structures
Ent 48,7175 Eck. 0735 Rg 0490
Motel, septic, trash, undeveloped property (looking east
Parking area north of motel, Jeep rentals (looking east)
Parking sign, Jeep rentals (looking north)
Storage area (looking west)
Ent 487175 Elk 0735 Pg 0491
Sheds, irrigation equipment and outside storage (looking north)
Sheds (looking southeast)
Exercise area and volleyball court (looking north)
Irrigation tap (looking west
Ent -4871 75 FA. 0735 Pn 0492
2 pedestrian bridges (looking east)
South parking lot (looking west)
Playground equipment and firepit (looking north)
Fountain (looking east)
North rear of building and pavilion (looking north-
east)
Ent 487175 Bk. 0735 Pg 0493
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Motel (looking west)
Motel (looking east
Signs and approach road (looking south)
Signs and approach road (looking north)
Ent 4437175 Bk 0735 Pg 0494
EXHIBIT F
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Gravity sewer portion
(solid line)
Centralilzed sewer
pumping station
(location approximate)
Sewer Line Route—B.
Requires force main and
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(location approx.)
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Northern terminus
of existing gravity
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Sewer would continue
to connect to existing
gravity system 42- ,
Map Showing Sewer Route Options
Scale 1" = 250'
Ent .487175 Aft 0735 NI 0495