Sec. 13-2-245. Option of right of first refusal to purchase.
(a) Time. Any person required to comply with the provisions of this Division shall also grant to the Town the option for one (1) year to purchase any and all water rights or shares which are appurtenant to the land to be annexed or on which the land use is proposed to be changed, but which are in excess of the dedication requirements of this Division. The option may be exercised by the Town at any time for a period of one (1) year following the date of the grant to the Town with regard to any or all of the water rights or shares subject to the grant.
(b) Price.
(1) The option price shall be that price agreed upon by the parties. If the parties cannot agree upon an option price within thirty (30) days after notice of the Town’s intent to exercise its option is received by the owner, appraisal at the Town’s expense will establish the price that reflects the fair market value of the water rights or shares.
(2) The appraisal shall be conducted by one (1) appraiser appointed by the Town, one (1) appraiser appointed by the owner of the water rights or shares and a third appraiser who shall be appointed by both parties. The average of the three (3) shall be the option price. All three (3) appraisers must have at least ten (10) years’ experience in appraising water rights or shares in the State.
(c) Right of First Refusal.
(1) Grant of Right. In addition to the grant to the Town of the option to purchase water rights or shares as provided in Subsection (a) of this Section, any person required to comply with the dedication requirements shall also grant to the Town a right of first refusal regarding any water rights or shares subject to said option to purchase. If the Town for any reason should choose not to exercise its option to purchase water rights or shares as provided in Subsection (a) of this Section, the Town shall have the right of first refusal in the event the water rights or shares are to be sold separately from the land, for a period of ten (10) years following the date of the grant to the Town.
(2) Notice Period. If the owner of the water rights or shares subject to the right of first refusal wishes to sell the water rights or shares to a third party, he or she shall give the Town at least one hundred twenty (120) days’ prior written notice of their intention to effect a sale of the water rights or shares by delivering to the Town an acceptable, bona fide written offer to purchase made by a third party.
(3) Exercise of Right. During the one hundred twenty (120) day notice period provided for in Subsection (c)(2) of this Section, the Town shall enjoy its right of first refusal entitling it to purchase the water rights or shares offered for sale on the same terms and conditions as contained in the acceptable, bona fide written offer. If, within one hundred twenty (120) days following notice by the owner of their intention to sell their water rights or shares, the Town chooses to exercise its right to purchase, then the Town shall so notify the owner in writing and shall proceed to closing on the terms and conditions contained in the acceptable, bona fide written offer by the third party. In the event that the Town determines not to exercise its right to purchase the water rights or shares offered for sale, the owner shall be free to sell the water rights or shares to the third party; provided, however, that any such sale to the third party shall be for a price which is at least equal to that price which was tendered and refused by the Town and on terms and conditions which are no more favorable to the third party than those refused by the Town. (Ord. 1387 §1, 2023)