HomeMy WebLinkAbout26 - Development Agreements - West University LLC - Aaker Phase 1 Subdivision2868968
CityClerk
PO Box 1230
Bozeman,MT 59771
WATER ADEQUACY AGREEMENT
FOR AAKER CREEK SUBDIVISION PHASE 1 FINAL PLAT
This Water d c Agreement (hereafter"Agreement")isenteredintoon this
day of y and between West University LLC,togetherwith itssuccessors
and assigns(hereafter"West University"),with a corporateaddress of 113 East Oak Street,Suite
4A,Bozeman,Montana 59715,and the City of Bozeman (hereafter"the City"),a municipal
corporationand politicalsubdivisionof the Stateof Montana,with officesat 121 North Rouse
Ave,P.O.Box 1230,Bozeman,MT 59771-1230.
RECITALS
WHEREAS,West Universityowns and isin the processof developing theAaker Phase 1
Major Subdivision Final Plat Application No.25358 for the real property having the legal
descriptionofLot 2A ofMinor Subdivision191B,excludingand exceptingoutLot 1A-A of Minor
SubdivisionNo.503B (hereafter"theDevelopment");and
WHEREAS,the Bozeman City Commission issueda preliminaryplatapproval decision
for the Development on September 12,2023,which decisionrequirescompliance with Section
38.410.130 ofthe Bozeman Municipal Code (BMC)priorto finalplatapproval;and
WHEREAS,BMC 38.410.130 setsforththe City'swater adequacy code,requiringthat
estimatedwater demands attributabletothe Development be fullyoffsetpriortofinalapprovalof
the Development through the transferof usefulwater rightsto the City,implementation of water
conservationmeasures,and/orpayment tothe City of cash in lieuof water rights;and
WHEREAS,West Universityelectsto pay cash in lieuof water rightsto the City priorto
finalapproval oftheDevelopment forseven (7)feelotsand dedicatedright-of-wayforWest Kagy
Boulevard atthe amount determined by the City,and the City agrees to accept such payment,as
means of compliance with BMC 38.410.130 foralllotstobe plattedby the Development,with the
exception of the Tract B RestrictedLot (the"RestrictedLot")to be plattedsouth of West Kagy
Boulevard thatwilldefercompliance pursuantto BMC 38.410.130.C.2 and C.3 and be subjectto
thisAgreement;and
Page1of7
2868968 Page 2 of 7 01/26/2026 01:51:29 PM
WATER ADEQUACY AGREEMENT
FORAAKER CREEKSUBDIVISIONPH 1FINALPLAT
WHEREAS,the estimated overall cash in lieu payment amount required of West
Universityfor lotsotherthan TractB and the dedicatedright-of-wayin the Development willbe
determined by the City separatelyfrom thisAgreement,the amount so determined for each
individuallotto be plattedwith the Development willbe noted on the finalplatand be subjectto
expressedprovisionsofthefinalplat(the"CILWR Payments");and
WHEREAS,such CILWR Payments requiredtobe paidby West Universityto theCityfor
compliance with BMC 38.410.130 willbe made as follows:(i)for the fee lots,West University
may electto make the CILWR payment priorto finalplatof the Development or at siteplan
approval for each lot;and (ii)for the dedicated right-of-wayfor West Kagy Boulevard,West
Universityshallmake the CILWR payment priortofinalplatof theDevelopment;and
WHEREAS,West Universityowns the Water Purchase Contract and Subscriptionand
Pledge Agreement No.1-A-1 (hereafter"the Hyalite Contract")with the Middle Creek Water
Users'Association(hereafter"theMCWUA")and Montana Department ofNaturalResources and
Conservation (hereafter"the DNRC"),which Hyalite Contract provides twenty-fiveshares of
capitalstockinMCWUA and twenty-fiveacre-feetof annual volume storedin HyaliteReservoir;
and
WHEREAS,theCity hereby determinespursuanttoBMC 38.410.130.D.1thattheHyalite
Contract isa usefulwater rightfor City purposes once transferredintoCity ownership and made
partof the City'sindependent Water Purchase Contractand Subscriptionand Pledge Agreement;
and
WHEREAS,pursuant to BMC 38.410.130.D.1 and Section 7 of the West University
PropertiesAnnexation Agreement (Recorded Document No.2793488,GallatinCounty Clerk &
Recorder),West Universityhereby covenants and agreesthatitwillfacilitatethe futurerelease
and ownership transferto the City of the entiretyof the Hyalite Contract'stwenty-fivesharesof
capitalstock and twenty-fiveacre-feetof annual volume priorto finalapproval of any future
development proposed on the TractB RestrictedLot (the"RestrictedLot Development");and
NOW THEREFORE,in exchange for valuableconsideration,the partieshereto agree as
follows:
1.RECITALS INCORPORATED:The foregoing recitalsare hereby incorporatedinto and
made a parthereofas though fullysetforthherein.
2.OCCURRENCE OF RESTRICTED LOT DEVELOPMENT CONTINGENCY:
A.Intheevent West Universityseeksfinalapprovalof theRestrictedLot Development,West
Universityshallcomplete the releaseand transferto the City of the twenty-fivesharesof
capitalstockin MCWUA and twenty-fiveacre-feetof volume in HyaliteContract 1-A-1.
On occurrence of thiscontingency,the HyaliteContract ownership transfershallbe fully
completed as evidenced by a new,fullyexecuted,Subscriptionand Pledge Agreement and
Water Purchase Contract between the City,MCWUA,and DNRC thatincorporatesthe
Page2 of7
2868968 Page 3 of 7 01/26/2026 01:51:29 PM
WATER ADEQUACY AGREEMENT
FOR AAKER CREEK SUBDIVISIONPH 1FINALPLAT
twenty-fivesharesof capitalstockand twenty fiveacre-feetof volume inHyaliteContract
1-A-1 intothe City'sindependent contractpriorto finalapproval of any RestrictedLot
Development.
In the event West Universitysellsthe RestrictedLot,itmust transfertothe purchaser,its
successorin interest,the HyaliteContract.
West Universityunderstandsand agreesthatifthetransferof stockand water rightsto the
City is not completed for any reason,then West Universitymust provide othermeans of
complying with BMC 38.410.130 or any applicableamended or subsequent code relevant
to offsettingthe estimatedannual increasein municipal water demand attributableto the
RestrictedLot Development.
B.DOCUMENTS OF TRANSFER:West Universityshalldiligentlypursue completing the
water rightsownership transferto the City thatis contemplated in thisAgreement at its
sole expense,and shallbe responsiblefor preparing,or causing to have prepared,all
necessary documents to accomplish the ownership transferof the water rights in
accordance with MCWUA and DNRC requirements.Those documents may include,but
are not necessarilylimited to,requests for release and transfer,affidavitsor other
documentation needed to support the transfer,documentation of signatoryauthority,and
payment of any requiredcontracttransferfees.The City agreesto deliverany documents,
instruments or writings necessary and reasonable to support and accomplish the
contemplated transfer.
3.AUTHORITY AND AUTHORIZATION:The partiesheretohave allrequisitepower and
authorityto (i)enterintothisAgreement and to execute and deliverany documents necessary
to effectuatethe transferof water contemplated hereby and (ii)carry out the agreements
contemplated hereby.
4.NOTICE:All notices,requestsor other communication to any party hereunder shallbe in
writingand sufficientifpersonallydelivered,or by facsimileor email (with confirmationof
receipt),or by registeredor certifiedmail,postageprepaid,returnreceiptrequested,addressed
as follows:
West University LLC
Attn:Connor Brown
113 East Oak Street,Suite4A
Bozeman,MT 59715
City of Bozeman
Office of theCity Attorney
P.O.Box 1230
Bozeman,MT 59771-1230
5.DEFAULT:Time isof the essence for thisAgreement.IfWest Universityshalldefaultinor
failto fullyperform any of itsobligationsin conformance with the time scheduleunder this
Agreement,and such defaultor failureshallcontinue for a period of thirty(30)days after
Page3 of7
2868968 Page 4 of 7 01/26/2026 01:51:29 PM
WATER ADEQUACY AGREEMENT
FORAAKER CREEK SUBDIVISIONPH 1FINALPLAT
writtennoticespecifyingthe defaultisdepositedin the United Statesmail addressed to West
Universityatthe foregoingaddress,or such otheraddressasWest Universityshallprovide the
City from time totime,without being completely remedied,satisfied,and discharged,theCity
may electto enforceany remedy provided by law.
6.ATTORNEY FEES:Ifany suit,or actionisinstitutedto interpretor enforcethe provisions
of thisAgreement,to rescindthisAgreement,or otherwisewith respectto the subjectmatter
of thisAgreement,the partyprevailingon an issuewillbe entitledto recoverwith respectto
such issue,in additionto costs,reasonableattorneyfees,includingfees,salary,and costsof
in-house counsel including the City Attorney's Office staff,incurred in the preparation,
prosecution,or defense of such suit,or actionas determined by a trialcourt,and ifany appeal
istaken from such decision,reasonableattorneyfeesas determined on appeal.
7.ENTIRE AGREEMENT:This Agreement embodies and constitutesthe entire
understandingbetween thepartieswith respecttothetransactioncontemplated herein,and all
prioror contemporaneous negotiations,communications,conversations,understandings and
agreements between the parties,oralor written,are merged intothisAgreement.
8.BINDING EFFECT:This Agreement shallrun with theRestrictedLot and inureto the
benefitof and be binding upon thepartiesheretoand theirrespectiveheirs,personaland legal
representatives,successorsand assigns.
9.SEVERANCE:Should any portionof thisAgreement be declaredinvalidand unenforceable,
then such portionshallbe deemed to be severedfrom thisAgreement and shallnot affectthe
remainder hereof.
10.AMENDMENT;WAIVER:No provisionof thisAgreement may be amended,waived or
otherwise modified without the priorwrittenconsent of allthe partieshereto.No waiver of
defaultby any partyshallbe implied from any omission by a partyto take actionon account
of such defaultifsuch defaultpersistsor isrepeated,and no expresswaiver shallaffectany
defaultotherthan the defaultspecifiedinthe expresswaiver,and then only forthetime and to
the extent thereinstated.One or more waivers of any covenant,term or conditionof this
Agreement by a partyshallnot be construedto be a waiver of any subsequent breach of the
same covenant,term or condition.The consent or approval by any partyshallnotbe deemed
to waive or render unnecessary the consent or approval of said party of any subsequent or
similaract.
11.HEADINGS:Headings contained in thisAgreement are for referencepurposes only and
shallnot affectthe meaning or interpretationofthisAgreement.
12.COUNTERPARTS:This Agreement may be executed in any number of counterparts,each
of which shallbe deemed to be an original,but allof which togethershallconstituteone and
the same instrument.
Page4 of7
2868968 Page 5 of 7 01/26/2026 01:51:29 PM
WATER ADEQUACY AGREEMENT
FORAAKER CREEKSUBDIVISIONPH 1FINALPLAT
13.GOVERNING LAW:This Agreement shallbe governed by and construed in accordance
with the laws of the Stateof Montana.In the event of litigationconcerning thisAgreement,
venue isinthe EighteenthJudicialDistrictCourt,GallatinCounty,Stateof Montana.
14.FURTHER ASSURANCES:West University and the City agree to execute and deliver,
without additionalconsideration,such furtherassurances,instrumentsand documents,and to
take such furtheractionsas West Universityor the City may requestand as may be necessary
in order to fulfillthe intentof thisAgreement and the transactionscontemplated hereby and
fullytransferwater to the City.
15.NO ASSIGNMENT:Itisexpresslyagreed thatWest Universityshallnot assignthis
Agreement in whole,or in part,without priorwrittenconsent ofthe City.
16.SUCCESSORS:This Agreement shallbe binding upon,ensure to the benefitof,and be
enforceable by the partieshereto and theirrespectiveheirs,successors and assigns.The
restrictionon assignment setforthin Section 15 shallnot apply to West University'stransfer
of thisAgreement to a successorin connectionwith a saleof the RestrictedLot and the prior
writtenconsent of the City isnot requiredinthe case of such a transfer.
17.RECORDING:This Agreement shallbe recorded atthe GallatinCounty Clerk &Recorder
concurrentwith theDevelopment's finalplat,with theofficialrecorded document number and
purpose annotated on the finalplatconditionsof approval sheet,and made partof the official
land titlerecord of theDevelopment property.
****END OF AGREEMENT EXCEPT FOR SIGNATURES ****
Page5of7
2868968 Page 6 of 7 01/26/2026 01:51:29 PM
WATER ADEQUACY AGREEMENT
FORAAKER CREEKSUBDIVISIONPH 1FINALPLAT
IN WITNESS WHEREOF,the partieshave executed thisAgreement asof thedateentered
above.
W ST UN ERSITY,LLC
(Authorized Signer)
STATE OF g/(//#A/4 )
):ss
County of /Al )
On this ay of ÓfMFlfe ,2025,before me the undersigned,a
Notary Publicforthe Stateof Afoviavt ,personallyappeared 42Pyr #4o/a/u
,known to me to be /T/RA/Bgge of F\ltf /AAtiy£-yfy,LL6
and the person whose name issubscribed'tothe within instrumentand acknowledged to me that
he executed the within instrumentforand on behalfof
/A/st//Atif£oily,4
IN WITNESS WHEREOF,Ihave hereunto setmy hand and affixedmy NotarialSealthe
day and year firstabove written.
(SE
L
Notary Pub forthe Stateof AlfAAid
(PrintedNam
Residing at EScF
My Commission e ires //20
anays
6 a
Page6 of7
2868968 Page 7 of 7 01/26/2026 01:51:29 PM
WATER ADEQUACY AGREEMENT
FORAAKER CREEKSUBDIVISIONPH 1FINALPLAT
CITY OF BOZEMAN
BY:....--
Chuck Winn,CityManager
ATTEST:
Mike Maas,City Clerk
STATE OF MONTANA )
)ss.
County of Gallatin )
On this 21 day of Da+*st ,20 ,before me,a Notary Public forthe
Stateof Montana,personallyappeared C K WINN and MIKE MAAS,known tome to be the
CityManager and City Clerk forthe City ofBozeman and thepersonswhose names aresubscribed
to the within instrument,and acknowledged to me thatthey executed the same for and on behalf
of the City of Bozeman.
IN WITNESS WHEREOF,I have hereunto setmy hand and affixedmy NotarialSealthe
day and year firstabove written.
(SEAL)
'''MICHELLE CAPEL
NotaryPublic
o Ass fortheStateofMontana
--Residingat:
Notary Public forthe St of Montana EAL sozeman,Mon a
April21,2029
(PrintedName
Residing atBo e ,ontana
My Commiss on Expires://20___
APPR T ORM:
BY:
eg Sul iva ,ityAttorney
Page7of7