HomeMy WebLinkAboutWPO202000017 Agreement - Nutrient Credits 2021-05-06RCHA',
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THIS AGREEMENT FOR PURCHASE AND SALE OF NUTRIENT OFFSET
CREDITS (this "Agreement") is dated this 61h day of Maw 2021, by and between R&J
Investment, LC, a Virginia limited liability company ("Seller") and Albemarle Land
Development, LLC, ("Purchaser").
RECITALS
A. Seller has established the Hunts Creek Nutrient Bank, (the "Bank") on
approximately 151.00 acres located in Buckingham County, Virginia in accordance with
applicable statutes and regulations of the Virginia Department of Environmental Quality
("DEQ") and the Virginia Department of Conservation and Recreation ("DCR").
B. The Bank has obtained all necessary permits and taken all necessary actions to
create nutrient reductions such that the Bank has nutrient offsets transferable to those entities
requiring offsets in accordance with the Chesapeake Bay Watershed Nutrient Credit Exchange
Program, DCR's Stormwater Offset Program, and the Virginia Soil and Water Conservation
Board's Guidance Document and Stormwater Nonpoint Nutrient Offsets approved on July 23,
2009, to those regulated entities qualifying for nutrient offsets.
C. Purchaser desires to purchase from Seller and Seller desires to sell to Purchaser
nutrient offsets measured in pounds of nitrogen or phosphorus (one pound of nitrogen or
phosphorus equals one nitrogen or phosphorus nutrient offset credit, as the case may be),
pursuant to the terms and conditions set forth herein.
AGREEMENT
In consideration of the purchase price paid by Purchaser to Seller, and other good and
valuable consideration, the receipt and sufficient of which are hereby acknowledged, the parties
agree as follows:
1. Agreement to Sell and Purchase. Seller shall sell to Purchaser or its assigns, and
Purchaser or its assignees shall purchase from Seller 1.37 phosphorus nutrient offset credits (the
"Credits"). Seller acknowledges and agrees that, notwithstanding the payment of the Purchase
Price (as defined below) contemporaneously with the execution and delivery of this Agreement,
Purchaser may be purchasing the Credits for use on future projects, and the Credits purchased
herein shall be conveyed by Bill of Sale to Purchaser, its successors or assigns in accordance
with Section 3 herein, when and as Purchaser directs from time to time in writing to Seller.
Upon payment of the Purchase Price, Purchaser shall have such rights as permitted by
law to re -convey all or a portion of its interest in the Credits to its successors in interest or
assignees for use on future projects, and Seller consents to such re -conveyances and agrees to
cooperate with and assist Purchaser in the documentation of such re -conveyances, including
delivery of notices of such re -conveyances to the DEQ, DCR and any other governing agency
with jurisdiction over the transfer of nutrient offsets.
2. Purchase Price and Execution of Agreement. The purchase price for the Credits
shall be $9,500.00 per lb. [of nitrogen and/or phosphorus] for each Credit for a total Purchase
Price of $13,015.00 for the Credits. The Purchase Price shall be paid in collected funds on the
date of execution of this Agreement by both parties. This Agreement shall be executed by both
parties and the Purchase Price paid by the Purchaser within 45 days of the date of this
Agreement, unless Seller agrees in writing to a later date. Upon payment of the Purchase Price in
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full, neither Purchaser, nor its successors, nor assigns shall be liable for the payment of any other
consideration or fee to Seller in connection with the conveyance or assignment and/or re -
conveyance of the Credits.
3. Delivery of Credits. Upon payment of the Purchase Price, Seller shall deliver to
Purchaser, its successors, or assignees the following documents to evidence the conveyance of
the Credits:
(a) An affidavit in substantially the same form as Exhibit A attached hereto, with the
project number filled in, and which shall also be delivered to the DEQ and, if appropriate, DCR,
by Seller.
hereto.
(b) A Bill of Sale for the Credits in substantially the same form as Exhibit B attached
Seller acknowledges and agrees that Purchaser may request the conveyance of up to the
total amount of Credits purchased by Purchaser in one or more transactions to satisfy the
requirements of one or more permits issued by the DEQ, DCR and/or any other governing
agency all in accordance with the provisions of this Agreement.
4. Representations, Warranties and Covenants. Seller hereby warrants, represents to
and covenants with Purchaser as follows:
(a) The matters set forth in Recitals A and B above; provided, however, Seller makes
no warranty or representation with respect to the eligibility of the Credits sold hereunder to
satisfy the permit requirements of any DEQ, DCR or other permittee.
(b) Seller has and will maintain sufficient number of credits in the Bank to
consummate the transactions contemplated herein.
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(c) Seller shall follow and comply with all the requirements for maintenance of the
Bank as required by the DEQ, DCR and any other agency having jurisdiction over the Bank.
(d) To the best of Seller's knowledge, there is no pending or threatened action or
proceeding affecting Seller before any court, governmental agency or arbitrator that would
adversely affect Seller's ability to comply with its obligations hereunder.
(e) Seller shall be solely responsible, at its sole cost and expense, for compliance with
the requirements of with all federal, state and local statutes, regulations and other requirements
applicable to the operation, management and maintenance of the Bank (collectively the Bank
Regulatory Requirements").
(f) * That the execution and delivery of this Agreement on behalf of Seller has been
duly authorized and such execution and delivery shall constitute the valid and binding agreement
with Seller and is enforceable in accordance with its terms.
All of Seller's representations, warranties and covenants herein shall survive the sale of Credits
under this Agreement and the delivery of the Bill of Sale pursuant to this Agreement for a period
of 10 years.
5. Miscellaneous
(a) Notices. Any notice, demand or request which is required or permitted
hereunder shall be deemed effective when hand delivered, sent by a receipted overnight delivery
service, or hailed, via certified mail, return receipt requested to the following addresses:
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Seller: R&J Investment, LC
c/o Ronald Pembelton
15961 Goodes Bridge Road
P.O. Box 559
Amelia Courthouse, VA 23002
Purchaser: Albemarle Land Development, LLC
1949 Northside Drive
Charlottesville, VA 22911
The parties may change the address for notices by delivery of a change of address to the other
party in accordance with the requirements set forth above.
(b) Brokerage Commission. Seller warrants to Purchaser that Seller shall pay
a 5% brokerage fee to RRG, LC, ("Broker"); and also a 6% water quality enhancement fee to the
Virginia Department of Environmental Quality ("DEQ") in connection with this transaction.
(c) Entire Agreement; Modification. There are no other agreements or
understandings, written or oral, between the parties with regard to the subject matter of this
Agreement. This Agreement shall not be modified or amended except by a written document
executed by both parties.
(d) Governing Law. The validity, interpretation and enforcement of this
Agreement shall be governed and construed in accordance with the laws of the Commonwealth
of Virginia, except to the extent that any applicable Federal Law or regulation shall supersede
Virginia law in relation to the matter set forth in the Agreement, in which case Federal Law shall
apply. Jurisdiction and venue for any litigation brought pursuant to this Agreement shall lie
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exclusively in the state courts of Buckingham County, Virginia or the United States District
Court for the Eastern District of Virginia to the express exclusion of any other jurisdiction or
venue.
(e)
Compliance wi�
icable Laws. Both parties shall comply with all
applicable federal, state and local laws, rules, regulations and orders in the conduct of their
obligations hereunder.
(f) Severability. The provisions of this Agreement shall be deemed severable
and, if any terms herein shall be held invalid, illegal or unenforceable, the remainder of this
Agreement_shall continue to be effective and binding on the parties.
(g) Additional Assurances. Both of the parties agree to execute and deliver
any other document or documents that may be requested from time to time by the other party
necessary to perform such party's obligations under this Agreement.
(h) Nature of Credits. The sale and conveyance of the Credits pursuant to this
Agreement shall not constitute the conveyance or transfer of any right, interest or ownership of
real property or the Bank, nor shall such conveyance impose upon Purchaser any obligation, duty
or liability arising from or incident to ownership of an interest in real property.
(i) Assignability. Purchaser may assign its rights and obligations hereunder
to any person or entity. Seller shall not assign its obligations hereunder except in connection
with a sale or transfer of the real estate on which the Bank is located, without prior written
consent of Purchaser, which may not be unreasonably withheld by Purchaser.
0) Counterpart . This Agreement may be executed in counterparts, each of
which shall constitute an original, and all of which shall together constitute one and the same
Agreement.
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WITNESS the following authorized signatures:
SELLER: R&J Investment, LC
PURCHASER:
a Virginia limited liability company
By:
Its:
anaging ember
Albemarle Land DE
By:
Its:
e
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EXHIBIT A
AFFIDAVIT OF NUTRIENT CREDITS
I, Ronald Pembelton, certify that I am now, and at all times mentioned herein have been,
the Manager of R&J Investment, LC, a Virginia limited liability company (the "Company"),
which is the owner of the Hunts Creek Nutrient Bank located in Buckingham County, Virginia,
and as such I hereby certify the following;
1) Pursuant to that certain Acquisition and Sale Agreement dated May 6, 2021, ("The
Agreement"), between Company (as Seller) and Albemarle Land Development,
LLC. ("Acquirer"), the Company, for the benefit of the Acquirer, agrees to sell 1.37
pounds of phosphorus offsets and retire 4.59 pounds of nitrogen (representing the
ratio of nitrogen offsets to the phosphorus offsets at the offset generating facility)
offsets to Acquirer;
2) The Company and the Acquirer, as of the date hereof, have closed
the transaction contemplated by the Agreement and the Company has sold to
Acquirer phosphorus offsets and retired 4.59 pounds of nitrogen (representing the
ratio of nitrogen offsets to the phosphorus offsets at the offset generating facility)
offsets.
The execution and delivery of this Affidavit has been duly authorized and is not in
violation of the Operating Agreement of the Company or any other agreement, document or
obligation to which the Company is bound.
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IN WITNESS WHEREOF, I have duly executed this Affidavit as of the 2r day of
,2021.
R&J Investment, LC,
a Virginia limited liability company
By:
Name:
Title:
Manager
COMMONWEALTH OF VIRGINIA,
- C- /County of AM�A. to -wit:
Sworn to and subscribed before me this 9X day of , 2021, the undersigned
Notary Public for and in the jurisdiction aforesaid, by Ronald Pembelton, the Manager of R&J
Investment, LC, a Virginia limited liability company
N
My commission expires: Q 4° /31
Registration No.: .2917if Z
Acquirer:
Public
Name of Project: Profit Road Townhomes South
VSMP Permit #: Pendi�
HUC Code: 02080204
Phosphorus offsets: 1.37
Nitrogen offsets: 4.59
WPO Number: WPO-2020-00017
TMP Number: 03200-00-00-03500
Nutrient Bank Sponsor HUC: 02080203
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EXHIBIT B
BILL OF SALE
THIS BILL OF SALE is made as of the dZav day of WW , 2021, by R&J
Investment, LC, a Virginia limited liability company ("Seller") wit Albemarle Land
Development, LLC, ("Purchaser").
Seller and Purchaser have entered into that certain Agreement for Purchase and Sale of
Nutrient Offset Credits dated May b, 2021, (the "Purchase Agreement"), the terms of which are
incorporated herein by reference and made a part hereof, with respect to the sale by Seller and
the purchase by Purchaser of nutrient offset credits generated by Seller's Hunts Creek Nutrient
Bank located in Buckingham County, Virginia.
In consideration of the payment of the Purchase Price $13,015.00 and (as defined in the
Purchase Agreement) and other good and valuable consideration, the receipt and sufficiency of
which are mutually acknowledged, Seller hereby sells, transfers. assigns, conveys, delivers, and
sets over to Purchaser, its successors or assigns the following nutrient offset credits (as defined in
the Purchase Agreement):
Phosphorus: 1.37 lbs. and
Nitrogen: 4.59 lbs.
Project: Profftt Road Tox nhomes South
VSMP Permit #: Pending
HUC: 02080204
WPO Number: WPO-2020-00017
TMP Number: 03200-00-00-03500
• Nutrient Bank HUC: 02080203
WITNESS the following authorized signature:
R&J Investment, LC.
a Virginia limited liability company
By:
Name:
Title:
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Pembelton
Manager