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Home My WebLink AboutWPO201700020 Agreement - Nutrient Credits 2018-07-03AGREEMENT FOR PURCHASE AND SALE OF NONPOINT NUTRIENT OFFSET CREDITS This Agreement for the Purchase and Sale of Nonpoint Nutrient Offset Credits (this "Agreement") is made this 24 day of April, 2018 (the "Effective Date"), between NELCO HOLDINGS, LLC (the "Seller") and GLENBROOK, LLC, a Virginia limited liability company ("Purchaser"). RECITALS A. Seller is the owner and sponsor of an approved nonpoint nutrient offset generation bank entitled the NELCO (the "Bank") consisting of 21.85 acres, more or less, located near Critzer Shop Road, approximately one mile south of the Dick Woods Road intersection in Nelson County in the James Basin. The Bank has been authorized by the Virginia Department of Environmental Quality ("VDEQ") to generate and transfer nonpoint source offsets in accordance with i) the Chesapeake Bay Watershed Nutrient Credit Exchange Program (VA Code 62.1-44.19:14 et seq), ii) the Department of Conservation and Recreation's (DCR) stormwater offset program (VA Code 10.1-603.8:1), and iii) the Virginia Soil and Water Conservation Board's Guidance Document on Stormwater Nonpoint Nutrient Offsets approved on October 2, 2017 to those regulated entities qualifying for nutrient offsets. The Bank is approved to generate 65.61 pounds of nitrogen reduction and 20.80 pounds of phosphorous reduction within the James River Watershed. Operation, management and maintenance of the Bank are subject to the requirements of the Nonpoint Nutrient Offset Generation Certification approved by the VDEQ on November 12, 2013 and to the statutes, regulations and policies cited therein. B. Purchaser has received site plan approval from County of Albemarle (Permit No: Foothills Crossing II - WP0201700020 with a requirement to control 1.71 pounds of phosphorous annually as part of WP0201700020 located in Albemarle County, VA within the James River Watershed & HUC 02080204. Purchaser proposes to offset the annual nutrient control requirement by purchasing 1.71 pounds of Phosphorous Credits (the "Nutrient Credits") from Seller. AGREEMENT NOW, THEREFORE, for and in consideration of the mutual premises and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Purchaser agree as follows: 1. Recitals. The foregoing Recitals are hereby incorporated into this Purchase Agreement as a matter of contract and not mere recital. 2. Sale and _Pure_hase. Seller agrees to sell, and Purchaser agrees to purchase 1.71 pounds of Nutrient Credits from the Bank for the purchase price of Twenty-three Thousand Eighty -Five and 00/100 Dollars ($23,085 00) (the "Purchase Price") and in accordance with the terms and conditions set forth in this Agreement. 3. Pavment of Purchase Price, Purchaser shall pay the Purchase Price of $23,085 due at Closing (as described in Section 6 below). Purchaser shall pay all amounts by either delivering to Agreement Page 1 58562386.2 Purchaser a check made out to NELCO HOLDINGS, LLC or by making a wire transfer of immediately available federal funds to an account at a financial institution designated in writing by Seller. Purchaser's obligation to deliver the full amount of the Purchase Price to Seller survives the Closing. TIME IS OF THE ESSENCE WITH RESPECT TO EACH AND EVERY PROVISION OF THIS AGREEMENT. 4. Seller's Reppqspntation. 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. Compliance with Laws. Seller will comply with all applicable laws and regulations relating to the sale of the Nutrient Credits, the Bank, and the Nonpoint Nutrient Offset Generation. Certification. C. Credit.Ava,ilability. As of the date of Closing, Seller shall have the Nutrient Credits available for Purchaser. 5. Purchaser's Representations and Warranties. Purchaser hereby makes the following representations and warranties. a. Authorizations, _, Execution "land, 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 Purchaser and is enforceable in accordance with its terms. b. As" Is " Where Is _Sale. Purchaser acknowledges and agrees that Purchaser is purchasing the Nutrient Credits "AS IS, WHERE IS," at Closing. The Seller has not made and does not make any representations or warranties, either express or implied, with respect to the Nutrient Credits, other than as expressly set forth in Paragraph 4, and 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 in Paragraph 4. This Paragraph shall survive Closing and delivery of the Nutrient Credits. 6. Closing. Closing on the purchase and sale of the Nutrient Credits pursuant to this Agreement ("Closing") shall. be held at a location mutually agreeable to Purchaser and Seller, at a time and date to be agreed upon by the Parties, but not later than 5:00 p.m. on Friday, April 20, 2018 unless Seller consents in writing to a later date, TIME BEING OF THE ESSENCE TO THIS AGREEMENT. 7. Sellelr's. Deliveries. a. At Closing, Seller shall deliver to Purchaser a signed Bill of Sale, Affidavit, and DEQ Water Quality Enhancement Fee Form substantially in the form of Exhibits A! B, and C attached hereto and incorporated herein by this reference, evidencing the sale to Purchaser of Agreement Page 2 58562386.2 the Nutrient Credits from the Bank. b. Not more than thirty (30) calendar days following the Closing, Seller shall deliver, or cause to be delivered, to Purchaser a copy of Seller's Ledger entry, or other documentation, recording the sale of the Nutrient Credits to Purchaser as provided herein and debiting the Nutrient Credits sold to Purchaser against the outstanding Nutrient Credits in the Bank in accordance with the Nonpoint Nutrient Offset Generation Certification. 8. Closi1.ng Costs. Seller shall pay the cost of preparing the Bill of Sale, Affidavit, and DEQ Water Quali1.ty Enhancement Fee Form, any taxes and costs customarily paid by Sellers including the DEQ Enhancement Fee, and Seller's attorney's fees. Purchaser shall pay any taxes customarily paid by Purchaser, Purchaser's attorney's fees and all other costs of Closing, if any. 9. 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 whereupon this Agreement shall terminate and Purchaser and Seller shall have no further obligations hereunder. Seller agrees that it waives any and all other rights and remedies against Purchaser and all other claims for damages against Purchaser arising from Purchaser's default under the terms of this Agreement. b. By _Seller. If Seller defaults in performing any of Seller's obligations under this Agreement, and if such default continues for a period of ten (10) days after Purchaser has provided written notice to Seller of such default, Purchaser's sole remedy shall be either to (i) terminate this Agreement by providing written notice thereof to Seller and receive a refund of any amounts paid to Seller, in which event neither party shall have any further rights or obligations hereunder, except as expressly provided herein, or (ii) seek specific performance of Seller's obligation to sell the Nutrient Credits to Purchaser. 10. Effect of Condemnation. Regulatory _Action or Force Mai eure. a. Condemnation. If the Bank 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 transfer the Nutrients 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, 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 transfer the Nutrients Credits to Purchaser as provided in this Agreement because of the action or order of any municipality or 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 at any time prior Agreement Page 3 58562386.2 to Closing, and neither party shall have any further rights or obligations hereunder, except as expressly provided herein. ii. If Purchaser is prevented by any municipality or regulatory agency from acquiring the Nutrients Credits from Seller as provided in this Agreement, or if Purchaser's nonpoint nutrient offset plan is not approved by any municipality or regulatory agency, Purchaser may terminate this Agreement by providing written notice to Seller at any time prior to Closing, and neither party shall have any further rights or obligation s hereunder, except as expressly provided herein. C. Force Majeure. If Seller is unable to transfer the Nutrient Credits to Purchaser as provided in this Agreement because of damage to or loss of the Bank property resulting from fire, flood, storm, drought or other natural disaster, or from any other cause that is not the fault of Seller and is beyond Seller's reasonable ability to prevent or control, Seller may terminate this Agreement by providing written notice to Purchaser at any time prior to Closing, and neither party shall have any further rights or obligations hereunder, except as expressly provided herein. 11. Indemnification. a. Seller's Indemnification. Seller shall be solely responsible for compliance with the Nonpoint Nutrient Offset Generation. Certification and with all statutes, regulations and requirements applicable to the operation, management and maintenance of the Bank, and for ensuring the payment of all taxes owed by the Bank or assessed against the Bank property ("Bank Regulatory Requirements"). 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 failure to comply with any Bank Regulatory Requirement. Seller's duty to indemnify Purchaser under this Paragraph 11 shall survive Closing. b. Purchaser's Indemnification. Purchaser shall indemnify, defend and hold harmless Seller from and against any action, order, investigation or proceeding initiated by any government agency and arising from or based upon Purchaser's failure to comply with any permit, authorization or condition thereof relating to Purchaser's nonpoint nutrient offset plan or the Nutrient Credits. Purchaser's duty to indemnify under this Paragraph 11 shall survive Closing. In the event that this Agreement is terminated, Purchaser's duty to indemnify Seller under this Paragraph 11 shall survive for twelve (12) months following the date of termination. 12. Credit Not Real Estate. The sale and conveyance of the Nutrient Credits to Purchaser in accordance with this Agreement shall not constitute the conveyance or transfer of any right, interest or ownership in real property or in the Bank, nor shall such sale and conveyance impose upon Purchaser any obligation, duty or liability arising from or incident to ownership of or interest in real property. Purchaser shall have no right of access to .Bank property. 13. Miscellaneous. Agreement Page 4 58562386.2 a. No Joint Venture. This Agreement is made solely for the purposes set forth herein and no joint venture, partnership or other relationship between Purchaser and Seller is created hereby. b. No Third -Party =_Ben eficiary,. This Agreement shall bind and inure to the benefit of the Parties hereto and their respective successors and authorized assigns. This Agreement does not create or convey any rights, benefits or interests on behalf of any other person. C. Assignment. This Agreement may be assigned prior to Closing only by written agreement of both parties, and any assignee shall assume the rights and obligations of its assignor. d. Entire Agreement, This Agreement sets forth the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations and agreements, written or oral. Each provision contained in this Agreement shall be severable from all other provisions hereof and the invalidity of any such provision shall not affect the enforceability of the other provisions of this Agreement. This Agreement may be modified only by a written instrument duly executed by both Seller and Purchaser. e. Choice of Laws. This Agreement shall be construed, performed and enforced under the laws of the Commonwealth of Virginia. £ Counterparts. This Agreement may be executed in one or more counterparts by the Parties. All counterparts shall collectively constitute a single agreement. g. Notices. All notices shall be in writing and sent by hand, facsimile transmission, overnight delivery service or certified mail, return -receipt requested, to the following addresses: If to Seller: NELCO HOLDINGS, LLC Attn: Chandler Van. Voorhis C/o Conservation Plus, LLC P.O. Box C The Plains, VA 20198 Telephone: 540-25 3 -2504 If to Purchaser: Glenbrook, LLC Attn: Robby Saady P.O. Box 1467 Charlottesville, VA 22902 Telephone: 434-245-4923 Email: robby ,riverbenddev.com Notices shall be deemed received (i) if hand delivered, when received, (ii) if given by facsimile, Agreement Page 5 58562386.2 when transmitted to the facsimile number specified above during normal business hours and confirmation of complete receipt is received during normal business hours (provided a copy of the same is sent by overnight delivery service on the same day), (iii) if given by overnight delivery service, the first business day after being sent prepaid by such overnight delivery service, or (iv) if given by certified mail, return receipt requested, postage prepaid, two (2) days after posting with the United States Postal. Service. Either party may change its address by notifying the other party in a manner described above. 14. Automatic Termination. This Agreement shall automatically terminate and become null and void in the event it has not been executed on behalf of Purchaser and returned to the Seller, no later than 5:00 p.m. local Richmond, Virginia time on May I st, 2018. [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK; SIGNATURES APPEAR ON THE FOLLOWING PAGE] Agreement Page 6 58562386.2 IN WITNESS whereof, Seller and Purchaser have caused this Agreement to be executed on their behalf by their duly authorized representatives as of the dates indicated below. SELLER: NELCO HOLDINGS, LLC y _ Name: AA,jcJ Its: Managing Member PURCHASER: GLENBROOK, LLC By: _ _ ----- Name:- —�� Its: _ rz S.rA Agreement Page 7 58562386.2 EXHIBIT A BILL OF SALE Nonpoint Nutrient Offset Credits BILL OF SALE, made as of April 24, 2018, by NELCO HOLDINGS, LLC, a Virginia limited liability company ("Seller"), to GLENBROOK, LLC ("Purchaser"). WHEREAS, Seller and Purchaser have entered into that Agreement for Purchase and Sale of Nonpoint Nutrient Offset Credits, dated April 24, 2018 (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 purchase by Purchaser of Compensatory Nutrients Mitigation Credits held in Seller's Nonpoint Nutrient Offset Bank in Nelson County, Virginia. NOW THEREFORE, for and in consideration of the payment of the Purchase Price (as defined in the Purchase Agreement) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller hereby sells, transfers, assigns, conveys, delivers and sets over to Purchaser, its successors and assigns, 1.71 Nutrient Credits as such are described in the Purchase Agreement. TO HAVE AND TO HOLD all such Nutrient Credits hereby sold and transferred to Purchaser and its successors and assigns forever. IN WITNESS WHEREOF, Seller has caused this Bill of Sale to be executed by its duly authorized representative as of the date first above written. NELCO HOLDINGS, LLC, a Virginia limited liability company y Name: .�... Its: Director Project: Foothill Crossing II Permit No.: WP0201700020 Permittee: Glenbrook, LLC Phosphorous Offsets: 1.71 Associated Nitrogen Offsets: 5.72 Wetland Credits Debited: NONE Agreement Page 8 58562386.2 EXHIBIT B AFFIDAVIT OF PHOSPHOROUS OFFSET SALE NELCO HOLDINGS, a Virginia limited liability company ("Seller"), hereby certifies the following: Pursuant to that that certain Agreement for Purchase and Sale ofNonpoint Nutrient Offset Credits, dated as of April 24, 2018 (the "Purchase Agreement", the terms of which are incorporated herein by reference and made a part hereof) between. Seller and Glenbrook, LLC ("Purchaser"), Seller, for the benefit of the Purchaser, agreed to sell 1.71pounds of nonpoint source phosphorus offsets (the Nutrient Credits) to Purchaser. 2. Seller and Purchase, as of the date hereof, have the closed the transaction contemplated by the Agreement and the Seller has sold to Purchaser the phosphorous offsets. WITNESS the following signature: NELCO HOLDINGS, LLC, a Virginia limited liability company Bv: / 1 J Name: Its: Director Sworn to and subscribed before me this to`f`'day of _ r\ , 2018, by 5-DEN, — -- Director, on behalf of the NELCO HOLDINGS, LLC, a Virginia limited liability company. My commission expires: g -� jJX/vQQWty of: Notary Public Project: Foothill Crossing II Permit No.: WP0201700020 Permittee: Glenbrook, LLC Phosphorous Offsets: 1.71 pounds Associated Nitrogen Offsets: 5.72 Wetland Credits Debited: NONE Bank Sponsor: NLJC 02080203 TMPs: 056k0-00-00-(.)OOA2, 05600-00-00-057CO3 05600-00-00-057D0, 05600-00-00-057131. 05600-00-00-057B2 Agreement (DEQ 199-210) (06/ 13) I%,pr11111frrrrrl �IMal.OWg NOTARY PUBLIC y, REG. #7633624 a _ -My COMMISSION. d EXPIRES 08/31 /201 ,F r�flf tl 11 ll11111�, Page 9 58562386.2 EXHIBIT C DEPARTMENT OF ENVIRONMENTAL QUALITY WATER QUALITY ENHANCEMENT FEE FORM Instructions: Nonpoint nutrient offset brokers are required to pay a water quality enhancement fee equal to six percent of the amount paid by the permittee for the nonpoint nutrient offsets. With submittal of this payment, brokers should complete this form and submit it with their payment. Payment should be in the form of check or money order payable to "Treasurer of Virginia" and should be mailed to: Department of Environmental Quality Receipts Control P.O. Box 11.04 Richmond, Virginia 23218 You should retain a copy for your records. Please direct any questions regarding this form or fee payment to.andrew.hammonq�yirginia.goy' Offset Broker: Name: Conservation Plus LLC FIN: 81-2661239 Mailing Address: P.O. Box C City: The Plains_ State: VA __ Zip: 20198 Daytime Phone Number: 640-253-2604 Name and Location of Construction Activity: Name: Foothill Crossing II Town, City, or County: [CITY] — COUNTY OF ALBEMARLE VSMP Permit Number: N/A Nutrient Bank: Bank Name: NELCO HOLDINGS, LLC Total Phosphorus Purchased: 1.71 pounds Amount of Fee Submitted (6% of the amt. paid for nonpoint nutrient offsets): $ 1,386.10 FOR DEQ USE ONLY Date: DC #: Agreement Page (DEW99-210) (06/13) 58562386.2