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Regular Agenda Item 4. L.
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| Regular BOS Meeting |
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| Information |
| Request/Subject |
| Rescind Resolution No. 18-04-03; Adopt Resolution No. 22-10-03; Adopt Resolution No. 22-10-04; Adopt Resolution No. 22-10-05; Grant Quit Claim Deed to Rivers Edge Payson LLC; Grant Quit Claim Deed to Harry and Sherri Farrell to comply with the Settlement Agreement that was executed on September 6, 2022, of Rivers Edge Payson LLC, an Arizona Limited Liability Co. v. Gila County, Maricopa County Superior Court Case No. CV2021-016013. |
| Background Information |
Rivers Edge Payson LLC, an Arizona Limited Liability Company ("Rivers Edge"), filed a lawsuit against Gila County which is currently docketed in the Maricopa County Superior Court as case number CV2021-01613. This lawsuit (the "Easement Litigation") disputes the county's interest, right, or title to an easement across its property for roadway purposes. Harry and Sherri Farrell filed a separate lawsuit in the Gila County Superior Court, number S0400CV202000298, against Rivers Edge, and Rivers Edge filed a counterclaim against the Farrells, to quiet title to disputed boundary lines between them (the "Boundary Litigation").
Gila County is not a party to the Boundary Litigation, however, Gila County required the Boundary Litigation to be settled before it would agree to settle the Easement Litigation. Gila County, Rivers Edge, and the Farrells have executed the attached Settlement Agreement which resolves both the Easement Litigation and the Boundary Litigation.
Under the terms of the Settlement Agreement, certain actions must be taken by the Board which will be described in this paragraph. Under paragraph 2., "By formal action of the Board of Supervisors, the Easement and all rights associated therewith shall be exchanged for the new Roadway by resolution executed by the Chairman of the Board pursuant to A.R.S. § 28-7203 ('the Rivers Edge Exchange'). After approval of the Resolution approving the Rivers Edge Exchange, the County agrees it will execute a quit claim deed disclaiming any remaining interest, right or title to the Easement it may have after the Exchange. The board shall also amend Resolution No. 18-04-03 as may be necessary to reflect this exchange." Under paragraph 3., "Rivers Edge shall convey to the County, by execution of quit claim deed, the property described in Exhibit A and A-1 ...." Under paragraph 6., "The Gila County Board of Supervisors will issue a resolution confirming that the Rivers Edge Exchange will not be treated as a property split for purposes of the five division rule set forth in the Gila County Minor Land Division Ordinance." Under paragraph 8., "the Farrells will convey to Gila County an easement for roadway purpose over the western 24 fee of the property ('New Farrell Easement'). The County will exchange its existing roadway easement on the Farrells' property for the New Farrell Easement." |
| Evaluation |
The Board needs to take the following actions:
1. Rescind Resolution No. 18-04-03,
2. Adopt Resolution No. 22-10-03, which reflects the Settlement Agreement,
3. Adopt Resolution No. 22-10-04, which authorizes the Rivers Edge Exchange, accepts a deed from Rivers Edge for the new Roadway, acknowledges the new Roadway as a public roadway, and confirms that the new Roadway will not be treated as a property split for purposes of the five-division rule in the Gila County Minor Land Division Ordinance,
4. Execute a quit claim deed to Rivers Edge which disclaims any remaining interest, right, or title in the Easement,
5. Adopt Resolution No. 22-10-05, which authorizes a roadway easement exchange in which Gila County exchanges its roadway easement on the Farrells' property for the New Farrell Easement, accepts a deed from the Farrells' for the New Farrell Easement, and acknowledges the New Farrell Easement as a public roadway.
6. Execute a quit claim deed to the Farrells' disclaiming the remaining interest in the current roadway easement. |
| Conclusion |
| The Board needs to take action as follows: Rescinding Resolution No. 18-04-03; Adopting Resolution No. 22-10-03 reflecting the Settlement Agreement; Adopting Resolution No. 22-10-04 authorizing the Rivers Edge Payson LLC Roadway Exchange described in the resolution; Adopting Resolution No. 22-10-05 authorizing the Harry and Sherri Farrell Roadway Exchange described in the resolution; Execute quit claim deed to Rivers Edge Payson LLC; and Execute a quite claim deed to the Farrells. |
| Recommendation |
| The Gila County Attorney recommends the Board take the following actions to complete the Settlement Agreement: Rescind Resolution No. 18-04-03, Adopt Resolutions 22-10-03, 22-10-04, and 22-10-05 as written; Execute a quit claim deed to River Edge Payson LLC; and Execute a quit claim deed to Harry and Sherri Farrell to comply with the Settlement Agreement the was executed on September 6, 2022,to settle litigation in Rivers Edge Payson LLC v. Gila County, Maricopa County Superior Court Case No. CV2021-016013. |
| Suggested Motion |
| Information/Discussion/Action to rescind Resolution No. 18-04-03; Adopt Resolution No. 22-10-03; Adopt Resolution No. 22-10-04; Adopt Resolution No. 22-10-05; Grant quit claim deed to Rivers Edge Payson LLC; and Grant quit claim deed to Harry and Sherri Farrell, all to comply with the Settlement Agreement that was executed on September 6, 2022, to settle litigation of Rivers Edge Payson LLC v. Gila County, Maricopa County Superior Court Case No. CV2021-016013. (Jefferson Dalton) |
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