To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Mark Marlowe, P.E., Director of Castle Rock Water
Matt Benak, Water Resources Manager
Heather Justus, P.E., Water Resources Project Manager
Title
Resolution Approving the Agreement Between ACM Dawson Trails VIII JV LLC and the Town of Castle Rock Regarding the Marketability of Title to Certain Water Rights [Dawson Trails]
Body
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Executive Summary
The Purpose of this memorandum is to request the Town Council’s approval of a Resolution (Attachment A) approving an agreement with ACM Dawson Trails VIII JV LLC (Dawson Trails) for the Town to accept the judicial decree in the quiet title action filed in the Douglas County Court for the purpose of establishing Dawson Trails’ title to the Water Rights underlying the Dawson Trails property. The agreement is attached as (Exhibit 1) to (Attachment A). A memo from Lyons Gaddis, outside water rights legal counsel for the Town of Castle Rock, is attached as (Attachment B) providing a recommendation to enter into the agreement with Dawson Trails.
Dawson Trails has requested that the Town enter into an agreement to accept the final decree from the quiet title complaint as basis to satisfy the Town Municipal Code requirements for water rights to have good and marketable title. Due to the expense of entering the quiet title complaint into the county court, Dawson Trails wanted an agreement in place that justifies the expense to complete the course of action.
Discussion
At the time, the Dawson Trials’ Development Agreement was approved by Town Council, the Water Rights Title Opinion review was not completed per Town Code Chapter 4.04. Town staff along with Lyons Gaddis continued to work with Dawson Trails staff to satisfy the Water Rights Dedication requirements. It was determined that due to the complex nature of the prior conveyances of the property and water rights, we were unable to conclude through traditional methods of title opinion documentation that Dawson Trails had good and marketable title to the water rights.
Colorado property laws allow an owner to file a quiet title action in court for the purpose of conclusively establishing title to a specified property, including water rights. Therefore, Dawson Trails filed a quiet title action in Douglas County Court, seeking a judicial decree determining that Dawson Trails has clear title to the Water Right (decree). Due to the cost and resources associated with the quiet title action, Dawson Trails has requested that the Town enter into an agreement. If the Town decides to enter into the agreement, the Town would agree based on the final decree from the quiet title complaint, that Dawson Trails has good and marketable title to the Water Rights for purposes of satisfying Section 4.04.060 of the Water Dedication Code.
Lyons Gaddis provided an additional memo (Attachment B) that provides additional details and recommendations for the Town to enter into the agreement with Dawson Trails.
Budget Impact
There is no budget impact for this resolution other than staff time and materials. Outside legal fees will be recovered from the developer.
Staff Recommendation
Staff recommends Town Council’s approval of the agreement between the Town of Castle Rock and AMC Dawson Trails VIII JC LLC for the acceptance of the Decree in the quiet title filed in Douglas County Court for the clear title of Water Rights.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Alternative Motions
“I move to approve the resolution as introduced by title, with the following conditions: (list conditions).
“I move to continue this item to the Town Council meeting on _____ date to allow additional time to (list information needed).”
Attachments
Attachment A: Resolution
Exhibit 1: Agreement
Attachment B: Lyons Gaddis Memo