Subdivider's agreement to sell water system to city in future.
This right of purchase agreement is made on _________[date], between the City of _________, a municipal corporation ("city"), acting through its duly authorized officers, the undersigned, and _________, as owner and developer of a certain subdivision in the City of _________, _________ County, _________("developer").
Developer is the owner and subdivider of a certain tract of land located within the City of _________, _________ County, _________, and has subdivided it into lots, blocks, streets, alleys and easements for the purpose of providing building sites for homeowners and other types of improvements and will install, for the use and benefit of the residents of the subdivision, a water system; and has presented the proposed plat and dedication of the _________ subdivision for the approval of city council as a subdivision to city, together with developer's plan for the construction of the water system within the subdivision; and
City contemplates that it will, at some future date, organize and develop a municipal water and sewer system for the residents of the City of _________ and desires to have the right of purchase of the water facility that may be installed in the _________ Subdivision by the developer, and the developer has agreed to sell and convey such water improvements to city, as reflected by a motion that was entered in the record of minutes of the city council of city on this date, in which the developer agrees to sell to city all waterlines in this subdivision, without cost to city, and that city shall have the right of purchase of any meters and meter connections at a rate of $_____ per meter and that city shall have the further right to purchase the water well, pump and facilities attached to the water system at their fair market value at the time of such purchase by city. Developer has further agreed that city shall have the right to increase the size of the water conduit pipe along _________ from that reflected by the proposed plat, by city paying the difference or additional cost in the installation of such pipe selected by the city in excess of the proposed _________-inch waterline.
Now, therefore, in consideration of the premises and the further consideration of the acceptance by city for filing and recording, the plat and dedication of _________, of the subdivision, developer agrees that when city has organized and developed a municipal water and sewer system for the use of the residents of city, that city will have the right of purchase of all water meters and connections installed by developer in the _________ Subdivision at a cost of $_____ per meter tap and the further right of purchase of the water well, tank, pump and attendant facilities at their fair market value at the time city desires to acquire title and possession, and the developer further agrees that developer will execute the necessary bills of sale, assignments, transfers and conveyances to all facilities pertaining to the water system in the _________ Subdivision to city, upon city giving at least _________ days' notice in writing of its desire to acquire possession and ownership of these facilities at the prices stated above.
It is further agreed that this right of purchase shall extend to the parties to this agreement their heirs, successors, administrators or assigns.
Executed at _________, on _________[date].
[Signatures and acknowledgments]
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