Midway extends bond deadline for Lundeen open-space purchase after lawsuit dismissal

Midway City councilors voted to extend an April 30 deadline for use of open-space bond funds on the Lundeen property through midnight July 1, giving staff and the property owners time to redraft a purchase-and-sale agreement after a related lawsuit was dismissed.

Speaker 2 told the council the Fuller v. Lending Farms right-of-first-refusal case was dismissed on Feb. 3 and read portions of the court’s findings, saying the judge’s language indicated placing a conservation easement while the family retains fee title would not necessarily trigger the right of first refusal. "The court interprets the Roper to allow for easements to be placed on property by which defendants agree not to develop it so long as they retain ownership in the property," Speaker 2 said.

The dismissal prompted staff to revisit language in the purchase-and-sale agreement. Speaker 2 asked the council to extend the deadline to June (and the council ultimately set July 1) to align with a family status hearing and to allow county and city staff time to revise the agreement and return it to both bodies if ready. "So that is why you told me this is here on behalf of this project to request an extension from the April deadline to the June so that we can work with city staff, county staff, and hopefully bring back to the council if fully ready to go," Speaker 2 said.

Council members questioned collateral and federal funding details. Speaker 3 asked whether money would be held in escrow (for example, as water shares) pending recordation of a conservation easement; Speaker 2 replied that the county funds remain obligated and that further discussion is needed to clarify whether a deed of trust or alternative collateral should be used if the easement is not yet recorded. "I think there may still need to be a discussion about what a deed of trust is versus the water shares," Speaker 2 said.

Staff and members also discussed U.S. Department of Agriculture/Natural Resources Conservation Service (NRCS) timing and an RCPP grant previously approved; Speaker 2 said some federal funds were frozen in January but some were later released before March 1, and cautioned there is uncertainty about future freezes. That timing affects whether the transaction must be stepped and what collateral is required.

After questions and a brief exchange about litigation risk and appeal windows, the council moved, accepted prior findings and conditions, and approved the extension by recorded vote. The motion to extend the open-space funds carried with unanimous "Aye" responses recorded during roll call.

Next steps: staff will work with the Lundeen family, county staff, and the family's attorneys to revise the purchase-and-sale agreement to reflect the dismissed lawsuit and to clarify collateral arrangements; a family status hearing is expected in June, and the council set July 1 as the next formal deadline for the bond funds extension.