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Commissioners rescind earlier Vail Ditch exchange approvals, authorize conditional escrow for 58.5 shares
Summary
Grand County rescinded earlier approvals tied to a 1031 exchange for irrigation shares, then authorized a conditional escrow to pay $409,500 for 58.5 Vail Ditch shares if the irrigated-land company approves the conservation plan and stock certificates transfer to the county.
Grand County commissioners revisited a recent decision on purchasing shares of the Vail (Failed) Ditch and Reservoir interests and adjusted their approvals after staff raised concerns about irrigated-land-company bylaw changes.
Project manager/legal staff told the board the county had earlier authorized a notice of assignment and wiring to an intermediary, 1031 Exchange Experts LLC, for a 56-share transaction. Staff said recent amendments to the local irrigated land company bylaws and other title/stock-certificate details required a different closing approach to protect county interests.
The board took three recorded actions: it rescinded the prior notice-of-assignment approvals tied to the 10-31 exchange; it rescinded prior "pay now" and wire-payment authorizations previously allowed for the purchase; and it approved a new conditional escrow approach. Under the new action the county authorized a wire payment of $409,500 to a yet-to-be-determined escrow agent, contingent on two conditions being met in order before escrow funds are released: (1) the Grand County Mutual Ditch and Reservoir Company’s water-conservation-plan application involving the 58.5 shares be approved by the Grand County Irrigated Land Company; and (2) the relevant stock certificates be transferred by the Grand County Irrigated Land Company to Grand County and provided to the county prior to escrow funding.
Staff said the total purchase price for the 58.5 shares is $409,500 and described prior concerns about bylaw amendments and the need for stock certificates to be held in the county’s name. Commissioners approved the rescind motions and then voted to authorize the conditional wire payment; county attorney staff will finalize escrow instructions and verify conditions before funds are released. Commissioners asked for clear documentation and a resolution that memorializes the contingency terms.
