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Home My WebLink AboutWPO201600011 Agreement - Nutrient Credits WPO VSMP 2018-05-29Chesapeake Bay Nutrient Land Trust, LLC 5735 S. Laburnum Ave. Richmond, Virginia 23231 PURCHASE AND SALE AGREEMENT THIS PURCHASE AND SALE AGREEMENT (this "Agreement"), dated as of Atwil 21, 2016, is made by and between CHESAPEAKE BAY NUTRIENT LAND TRUST, LLC, a Virginia limited liability company ("Seller"), and HG Land LLC ("Purchaser"). RECITALS: 1. Seller owns certain rights in and to certain real property consisting of approximately 110.24+- acres of land conversion areas located in Appomattox County, Virginia (the "Property"). Pursuant to Va Code § 62.1-44.15:35 the Virginia Department of Environmental Quality ("DEQ") and the Virginia Department of Conservation and Recreation ("DCR") have authorized the generation and sale of nonpoint source nutrient credits ("Credits") generated at the Property to third parties to offset nutrient -related water quality permit needs. 2. Pursuant to Albemarle County Permit No. WP0201600011 ("Permit"), the County of Albemarle, Virginia has approved the use of Credits for the project site described in the Permit (the "Project") upon the condition that Purchaser acquire 0.68 pounds of phosphorus Credits from Seller (the "Credit Obligation") and that Seller retire 2.53 pounds of the Property's associated nitrogen Credits. 3. . Purchaser wishes to purchase and Seller wishes to sell on the terms set forth in this Agreement the phosphorus Credits for the purpose of satisfying the Credit Obligation. AGREEMENT: NOW, THEREFORE, in consideration of the sum of TEN DOLLARS ($10.00), cash in hand paid by Purchaser to Seller and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Purchaser hereby agree as follows: 1. Agreement to Sell and to Purchase. Seller shall sell to Purchaser, and Purchaser shall buy from Seller, the phosphorus Credits for the ^purpose of satisfying the Credit Obligation. 2. Purchase Price. In consideration of Seller entering into this Agreement, Purchaser shall pay to Seller the sum of Eight Thousand Seven Hundred and Seventy Two Dollars and No/100 Dollars $8 772.00 as follows: (a) N/A and No/100 Dollars ($N/A) upon the full execution of this Agreement by all of the parties hereto as a non-refundable (except as provided in Sections 7(b), 8(a) and 8(b)) deposit (the "Deposit"), and (b) Eight Thousand Seven Hundred and Seventy Two Dollars and No/100 Dollars $8 772.00 at Closing by company, certified or cashier's check or by wired transfer of immediately available funds to an account and financial institution designated in writing by Seller. Chesapeake Bay Nutrient Land Trust, LLC Wildwood Farm 1 4/21/2016 Purchase And Sale Agreement Chesapeake Bay Nutrient Land Trust, LLC 5735 S. Laburnum Ave. Richmond, Virginia 23231 3. Deposit. The full amount of the Deposit shall be applied toward the Purchase Price at Closing; returned to Purchaser in the event that Seller defaults; or disbursed to Seller in the event of Purchaser's default. 4. Closing. (a) Date and Location. Closing under this Agreement ("Closing") shall occur on or before 5:00 p.m. on or before N/A ("Closing Date") unless Seller agrees in writing to a later date. Closing shall occur at Seller's attorney's office in Richmond, Virginia, or at such other place as Purchaser and Seller may agree. TIME IS OF THE ESSENCE as to the Closing Date. (b) Deliveries at Closing. At Closing, Seller shall (i) execute and deliver to Purchaser an Affidavit of Phosphorus Credit Sale in substantially the form attached hereto as Exhibit A (the "Affidavit"), and (ii) execute and deliver to Purchaser a Bill of Sale in substantially the form attached hereto as Exhibit B. At Closing, Purchaser shall pay the Purchase Price to Seller. (c) Delivery to DEO. Promptly following Closing, Seller shall provide DEQ with an original, executed Affidavit. (d) Closing Costs. Seller shall pay the cost of preparing the Bill of Sale and Affidavit, and Seller's attorney's fees. Purchaser shall pay Purchaser's attorney's fees and other costs of Closing, if any. (e) Water Quality Enhancement Fee. Promptly following Closing, Seller shall pay the water quality enhancement fee required by Va Code § 62.1-44.15:35 Subsection E. 5. Seller's Representations and Warranties. Seller hereby makes the following representations and warranties: (a) Authorization, Execution and Delivery. This Agreement has been duly authorized, executed and delivered by all necessary action on the part of Seller, constitutes the binding agreement of Seller and is enforceable in accordance with its terms. (b) Reservation of Credit Capacity. During the period beginning on the date of execution of this Agreement and ending upon the earlier of (i) Closing or (ii) termination of this Agreement, Seller will not sell Credits from the Property that would cause the remaining Credits to be insufficient for the purpose of satisfying Seller's obligations under this Agreement. (c) Compliance with Laws. Seller will comply with all applicable laws and regulations relating to the sale of the phosphorus Credits to Purchaser. Chesapeake Bay Nutrient Land Trust, LLC Wildwood Farm 2 4/21/2016 Purchase And Sale Agreement Chesapeake Bay Nutrient Land Trust, LLC 5735 S. Laburnum Ave. Richmond, Virginia 23231 6. Purchaser's Representations and Warranties. Purchaser hereby makes the following representations and warranties as of the date of this Agreement. (a) Authorization, Execution and Delivery. This Agreement has been duly authorized, executed and delivered by all necessary action on the part of Purchaser, constitutes the valid and binding agreement of the Purchaser and is enforceable in accordance with its terms. (b) Reliance. In entering into this Agreement, Purchaser has not been induced by, and has not relied upon, any representations, warranties or statements, whether express or implied, made by the Seller or any agent, employee or other representative of the Seller, which are not expressly set forth herein. 7. Default. (a) By Purchaser. If Purchaser defaults in performing any of Purchaser's obligations under this Agreement, and if such default continues for a period of ten (10) days after Seller has provided written notice to Purchaser of such default, Seller may terminate this Agreement by providing written notice to Purchaser. Upon such termination the Deposit shall be disbursed to Seller as Seller's sole and exclusive remedy and neither party shall have any further rights or obligations hereunder, except as expressly provided herein. Seller hereby expressly waives any right that Seller may have to damages, whether compensatory, consequential or otherwise, or to seek specific performance from Purchaser as a result of such default. (b) By Seller. If Seller defaults in performing any of Seller's obligations under this Agreement, and such default continues for a period of ten (10) days after Purchaser has provided written notice to Seller of such default, the Purchaser's sole remedies shall be to terminate this Agreement by providing written notice thereof to Seller, and to receive a refund of the Deposit, in which event neither party shall have any further rights or obligations hereunder, except as expressly provided herein. Purchaser hereby expressly waives any right that Purchaser may have to damages, whether compensatory, consequential or otherwise as a result of Seller's default. (c) Attorneys' Fees. In the event of any litigation between Seller and Purchaser, the prevailing party shall be entitled to an award of its costs incurred in such litigation, including reasonable attorneys' fees and costs, and court costs. 8. Effect of Condemnation, Regulatory Action or Unavoidable Delays. (a) Condemnation. If the Property or any part thereof is taken prior to Closing pursuant to eminent domain proceedings, or if such proceedings are commenced prior to Closing, and as a result Seller determines that it will be unable to sell the phosphorus Credits to Purchaser at Closing as specified in this Agreement, then Seller may terminate this Agreement by providing written notice to Purchaser at any time prior to Closing. If Seller elects to terminate this Agreement as provided in this subparagraph, the Deposit shall be Chesapeake Bay Nutrient Land Trust, LLC Wildwood Farm 3 4/21/2016 Purchase And Sale Agreement Chesapeake Bay Nutrient Land Trust, LLC 5735 S. Laburnum Ave. Richmond, Virginia 23231 refunded to Purchaser and neither party shall have any further rights or obligations hereunder, except as expressly provided herein. (b) Regulatory Action. (i) If Seller is unable to sell the phosphorus Credits to Purchaser as provided in this Agreement because of the action or order of any regulatory agency, regardless of whether or not Seller has contested or challenged such action or order, Seller may terminate this Agreement by providing written notice to Purchaser. If Seller elects to terminate this Agreement as provided in this subparagraph, and such termination occurs prior to Closing, then the Deposit shall be refunded to Purchaser and neither party shall have any further rights or obligations hereunder, except as expressly provided herein. (ii) If prior to Closing Purchaser is prevented by any regulatory agency from satisfying the Credit Obligation by purchasing the phosphorus Credits as provided in this Agreement, Purchaser may terminate this Agreement by providing written notice to Seller. If Purchaser elects to terminate this Agreement as provided in this subparagraph, then the Deposit shall be refunded to Purchaser and neither party shall have any further rights or obligations hereunder, except as expressly provided herein. 9. Indemnities. (a) Seller's Indemnities. Seller shall indemnify, defend and hold harmless Purchaser and Purchaser's authorized successors and assigns from and against any action, order, investigation or proceeding initiated by any government agency and arising from or based upon Seller's breach of the representations and warranties contained in Paragraph 5. (b) Purchaser's Indemnities. Purchaser shall indemnify, defend and hold harmless the Seller from and against any action, order, investigation or proceeding initiated by any government agency and arising from or based upon Purchaser's breach of the representations and warranties contained in Paragraph 6 and Purchaser's failure to comply with any permit, authorization or condition thereof relating to Purchaser's plan to satisfy the Credit Obligation. (c) Survival. The indemnity provisions of this Paragraph shall survive Closing and termination of this Agreement for a period of three (3) years after the date of this Agreement. 10. Notices. Each notice, request, demand or other communication hereunder will be in writing and will be deemed to have been duly given (i) when delivered by hand, or (ii) three (3) business days after deposit in United States certified or registered mail, postage pre- paid, return receipt requested, or (iii) one (1) business day after delivery to a recognized overnight courier service, in each case addressed to the parties at the following addresses: Chesapeake Bay Nutrient Land Trust, LLC Wildwood Farm 4 4/21/2016 Purchase And Sale Agreement Chesapeake Bay Nutrient Land Trust, LLC 5735 S. Laburnum Ave. Richmond, Virginia 23231 If to Seller: Chesapeake Bay Nutrient Land Trust, LLC ATTN: Brent L. Fults, Manager 5735 S. Laburnum Avenue Richmond, Virginia 23231 With a copy to: If to Purchaser: HG Land LLC Mark S. Hahn 109 Blueberry Rd. Charlottesville VA 22901 With a copy to: Each party shall have the right to change its address by providing the other party with at least ten (10) days prior written notice of the change. 11. Brokers. Each party hereunder represents and warrants that, except for the "Broker" identified below, if any, it did not consult or deal with any broker or agent with regard to this Agreement or the transactions contemplated hereby, and each party agrees to indemnify and hold harmless the other party from all liability, expense, loss, cost or damage, including reasonable attorney's fees, that may arise by reason of any claim, demand or suit of any agent or broker arising out of or constituting a breach by the indemnifying party of the foregoing representation and warranty. This indemnity shall survive Closing and termination of this Agreement and shall not be limited by any provision specifying liquidated damages. Seller shall pay a commission to N/A ("Broker") if and when Closing occurs equal to N/A percent (N/A%) of the Purchase Price. 12. Entire Agreement and Modifications. There are no other agreements or understandings, written or oral, between the parties regarding this Agreement or the subject matter hereof. This Agreement shall not be modified or amended except by a written document executed by both parties to this Agreement. 13. Governing Law. The validity, interpretation and performance of this Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia without regard to its conflict of laws principals. Chesapeake Bay Nutrient Land Trust, LLC Wildwood Farm 5 4/21/2016 Purchase And Sale Agreement Chesapeake Bay Nutrient nand Trust, LLC 5735 S. Laburnum Ave. Richmond; Virginia 23231 14. Compliance with Applicable Laws. Both parries shall comply with all applicable federal, state and local laws, regulations and restrictions in the conduct of their obligations under this Agreement. 15. Seve�. The provisions of this Agreement shall be deemed severable and, if any portion shall beheld invalid, illegal or unenforceable for any reason, the remainder of this Agreement shall be effective and binding upon the parties. The Recitals are incorporated as part of this Agreement as provided herein. 16. Binding A reement. This Agreement shall bind and inure to the benefit of the parties hereto and their respective successors and assigns. Any proposed assignment shall be subject to the prior written consent of the other party, which consent shall not be unreasonably withheld or delayed. 17. Counterparts. This Agreement may be executed in counterparts, each of which shall constitute an original and all of which together shall constitute one and the same Agreement. WITNESS the following signatures: SELLER: CHESAPEAKE BAY NUTRIENT LAND TRUST, LLC, a Virginia limited liability company By: W'-t . Manager TIN: 20-5197105 PURCHASER: HG Land LLC By: _ Name: Mark Hahn Title: Manatlinlr Member TIN: 4q — IS 1 3;i5S— EXHIBITS Exhibit A - Affidavit of Phosphorus Credit Sale Exhibit B - Bill of Sale Chesapeake Bay Nutrient Land Trust, LLC Wildwood farm Purchase And Sale Agreement 5/5/20 16 Chesapeake flay Nutrient Land Trust, LLC 5735 S. 1 iburnum Ave. Richmond, Virginia 23231 Exhibit A CHESAPEAKE BAY NUTRIENT LAND TRUST, LLC — WILDWOOD FARM AFFIDAVIT OF PHOSPHORUS CREDIT SALE CHESAPEAKE BAY NUTRIENT LAND TRUST, LLC, a Virginia limited liability company (the "Company"), hereby certifies the following: "1. Pursuant to that certain Purchase and Sale Agreement dated April 21, 2016 (the Agreement"), between the Company (as Seller) and HG Land LLC ("Purchaser'), the Company, for the benefit of the Purchaser, agreed to sell 0.68 pounds of nonpoint source phosphorus Credits to Purchaser and retire the associated ratio of nonpoint source nitrogen Credits at the credit generating facility in the amount of 2.53 pounds of nitrogen Credits; 2. The Company and the Purchaser, as of the date hereof, have closed the transaction contemplated by the Agreement and the Company has sold to Purchaser the phosphorus Credits. WITNESS the following signature: CHESAPEAKE BAY NUTRIENT LAND TRUST, LLC, a Virginia limited liability comp ny By:2A& Manager Date: 7 LSworn to and s bscribed before me this I_ day of w , 2016, by A �-�� , Manager, on behalf of hesapeake Bay Nutrient Land Trust, LLC, a Virginia limited liability company. My commission expires: 0,jo�er 3i,1.at8 City/County of �-A NCI Notary Public Project Name: VSMP Plan (WPO2016000111 for Harvest Moon - Phase 1 Tax Map Parcel - 04500-00-00-112GO Project HUC Code: 02080204 Chesapeake Bay Nutrient Land Trust, LLC I1UC Code 02080203 Permittee: HG Land LLC Phosphorus Credits: 0.68 pounds Associated Nitrogen Credits: 2.53 pounds Chesapeake Flay Nutrient Land Trust" LLC Wildwood Farm Purchase And Sale :Agreement CASEY J. JENSEN NOTARY PUBLIC REGISTRATION #7618796 COMMONWEALTH OF VIRGINIA MY COMMISSION EXPIRES 10/31118 5! 12/2016 Ana Kilmer From: Mark Hahn <mark@hmcatering.com> Sent: Friday, May 13, 2016 12:25 PM To: Ana Kilmer; Amanda Hallstead; Kelsey, Timothy Cr Susan M. Stimart Subject: Fwd: WF Affidavit of Phosphorus Credit Sale for the " Harvest Moon Phase -1" Attachments: Wildwood Farm Affidavit of Phosphorus Credit Sale - Harvest Moon - Phase .... pdf Hello all, I wanted to forward along the final document and e-mail from our nutrient credit purchase. I thought these would be pertinent to keep on file for each of you. Thank you all for your assistance in completing this process. Now we have one final stage to go and we should have a building permit in hand. Hopefully our US bond submittal goes smoothly and we are ready to go sometime in June. Thank you all again, Mark S. Hahn President Harvest Moon Catering 434-296-9091 office 434-466-9729 cell ---------- Forwarded message ---------- From: Casey Jensen <c'ensen(a�cbnit.com> Date: Thu, May 12, 2016 at 12:45 PM Subject: WF Affidavit of Phosphorus Credit Sale for the " Harvest Moon Phase A To: "Brockenbrough, Allan (DEQ)" <Allan.Brockenbrouglhkdea virginia gov> Cc: "Winn, Derick (DEQ)" <Derick.Winn(a�de virginia gov>, sreed(a�cbnit.com, kaobkcomcast.net, Mark Hahn <mark(a,hmcaterin .com> Mr. Brockenbrough, Attached in PDF format is the CBNLT / Wildwood Farm Affidavit of Phosphorus Credit Sale for the " Harvest Moon — Phase 1" project attesting to credit purchase for VSMP permit resolution. Project Information: Harvest Moon — Phase 1, Tax Map ID — 04500-00 00 112GO VSMP Plan #: WP0201600011 Permittee: HG Land LLC Phosphorus Credits Purchased: 0.68 pounds Nitrogen Credits Retired: 2.53 pounds Cranston's Mill Pond Operation # JR001 Transfer Date: May 12, 2016 Scott will provide an updated credit ledger reflecting this transfer and current CMP credit balances to your attention. Please contact our office if we can be of further assistance. Thank you, Casey Casey Jensen Sr. Project Manager / GIS Analyst Chesapeake Bay Nutrient Land Trust (CBNLT) 5735 S. Laburnum Ave Richmond Virginia 23231 C: (804) 836-6636 0: (804) 222-5114