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(a) At the time of annexation, the applicant for annexation shall do one (1) or more of the following:

(1) Offer for dedication to the Town water rights or shares which are appurtenant to the property to be annexed, including groundwater and groundwater wells. The applicant shall provide a historical use affidavit to the Town for any shares or water rights with an accompanying engineering report prepared at said applicant’s expense by an engineer experienced in water rights matters, which report is determined by the Town to sufficiently analyze the historical use of the water rights proposed for dedication to the Town; and/or

(2) Offer for dedication to the Town water rights or shares which are not appurtenant to the property to be annexed. The Town may, in its discretion and using the criteria set forth in this Division, consider and accept for dedication water rights or shares offered by the applicant which are not appurtenant to the property to be annexed.

(b) In the event that the water dedication requirements were not satisfied at the time of annexation, no building permit shall be issued by the Town for the phase or filing in which the building permit is requested until water rights or shares dedication has been accepted by the Town to satisfy the water dedication requirement. (Ord. 1387 §1, 2023)