Business of Parties/Water Demands Clause Samples

Business of Parties/Water Demands. The business of the Parties as described in this Agreement shall be the cooperative joint development of Parcels 1-4 for multiple uses, including multiple uses of water and water rights associated therewith. While the Parties each reserve the right to engage in any lawful activity related to such business, the Parties have jointly consulted with engineers, attorneys, planners, builders and developers, and anticipate the mixed use of Parcels 1-4, a combined 153.5 acres, to include, but not necessarily be limited to, the uses described below. Portions of the property are likely to remain undeveloped as development of the property will be phased over time, and such portions of the property shall remain utilized as pasture land for cattle grazing and similar, including potentially irrigation of hay crops. The Parties agree and acknowledge that the maximum development/densities described below (668 annaual acre feet) may exceed available water supplies (estimated at 635 NT acre feet, and 219 NNT acre feet underlying Parcels 1-4 in combination), particularly when considering the 300-year water supply rules applicable under El Paso County Land Development Code. It is the Parties intent that all available water be available on all portions of Parcels 14 in order to maximize joint development flexibility, and to either acquire additional water supplies as may be required, or limit the scope and scale of development to reflect the Parties’ combined available water supplies throughout the phased development of Parcels 1-4.