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2024-1612024-161 Resolution Authorizing Water Tenancy Agreement To The United Wappinger Water District With Obercreek Development, LLC For The Purposes Of Connecting Existing Structures To Service Obercreek Brewing Company At a Regular Meeting of the Town Board of the Town of Wappinger, Dutchess County, New York, held at Town Hall, 20 Middlebush Road, Wappingers Falls, New York, on August 19, 2024. The meeting was called to order by Joseph D. Cavaccini, Town Supervisor, and upon roll being called, the following was recorded: ✓ Vote Record - Resolution RES -2024-161 Yes/Aye No/Nay Abstain Absent Q Adopted ❑ Adopted as Amended Joseph D. Cavaccini Voter Q ❑ ❑ ❑ ❑ Defeated William H. Beale Seconder Q El El ElElTabled Angela Bettina Voter Q ❑ ❑ ❑ ❑ Withdrawn Christopher Phillips Voter Q ❑ ❑ ❑ Al Casella Mover Q ❑ ❑ ❑ The following Resolution was introduced by Casella and seconded by Councilman Beale. WHEREAS, Obercreek Development, LLC ("Owner") is the fee simple owner of a parcel of approximately 20.04 acres of land located in the Town of Wappinger, County of Dutchess, State of New York having an address of 61-81 New Hamburg Road, Wappingers Falls, NY designated as Tax Parcel Grid Identification Number 135689-6057-02-847758 (the "Property'), and WHEREAS, the Property contains a farm stand and two barns that will contain the Obercreek Brewing Company, it being noted that one barn shall contain a tasting room and the other barn shall contain the brewery, and WHEREAS, the water supplied to the Property by the existing well does not comply with applicable health department standards for fire suppression and sanitary use, therefore, the Owner d desires to obtain municipal water to operate the Property for fire suppression and sanitary purposes only, it being acknowledged that no water is to be supplied for brewing purposes; and WHEREAS, the property is not currently located within a Water District in the Town of Wappinger but the property abuts the UWWD water main that is located within the New Hamburg Road Right of Way and a water shutoff valve is located within the Right of Way for a future connection to the property, and WHEREAS, the parties have determined that it is desirable to provide water service to the Property for fire suppression and sanitary purposes by the creation of a water tenancy agreement, and WHEREAS, the Town Board has determined that there is enough capacity to tie in properties with existing known structures on that parcel only, that would require a limited water supply, and WHEREAS, the connection of the Property to the UWWD water main located in a Town Easement a Type II action under the State Environmental Quality Review Act (SEQRA) pursuant to 6 NYCRR 617.5(c)(11), and NOW, THEREFORE, BE IT RESOLVED, that the Town Board hereby finds and determines that: 1) The Project is a Type II action under the State Environmental Quality Review Act (SEQRA) pursuant to 6 NYCRR 617.5 (c) (11). 2) The Town Board hereby authorizes and directs a majority of the Town Board to sign the Water Tenancy Agreement on behalf of the UWWD pursuant to Town Law §198(11). 3) The Town Board hereby directs that a copy of the executed Water Tenancy Agreement be provided to the Water & Sewer Billing Office and Code Enforcement Office to establish the necessary water account. 4) The Town Board hereby directs that a copy of the executed Water Tenancy Agreement be provided to the Dutchess County Department of Behavioral and Community Health. The Town Board hereby directs that a copy of the executed Water Tenancy Agreement be filed in the records of the Town Clerk. The foregoing was put to a vote which resulted as follows: RESULT: ADOPTED [UNANIMOUS] MOVER: Al Casella, Councilman SECONDER: William H. Beale, Councilman AYES: Cavaccini, Beale, Bettina, Phillips, Casella Dated: Wappingers Falls, New York 8/19/2024 The Resolution is hereby duly declared Adopted. JOSEP,ff,P. PAOLONI, TOWN CLERK TENANCY AGREEMENT FOR CONNECTION TO THE UNITED WAPPINGER WATER DISTRICT THIS AGREEMENT made the day of August 2024 by and between the Town of Wappinger, acting through its elected Town Board on behalf of the UNITED WAPPINGER WATER DISTRICT, a special improvement district operating under Article 12 of the Town Law hereinafter referred to as "UWWD" having offices at 20 NEddlebush Road Wappingers Falls, New York 12590 AND OBERCREEK BREWING COMPANY (OBERCREEK DEVELOPMENT, LLC), Having an address of 89 New Hamburg Road Wappingers Falls, New York 12590 hereinafter referred to as "Owner" WITNESSETH: WHEREAS, Owner is the fee simple owner of a parcel of approximately 20.04 acres of land located in the Town of Wappinger, County of Dutchess, State of New York having an address of 61- 81 New Hamburg Road, Wappingers Falls, NY designated as Tax Parcel Grid Identification Number 135689-6057-02-847758 (the "Property'); and WHEREAS, the Property is more fully described by metes and bounds descriptions attached hereto as Exhibit "A"; and WHEREAS, the Property contains a farm stand and two barns that will contain the Obercreek Brewing Company; and WHEREAS, the water supplied by the existing well does not comply with applicable health department standards for fire suppression and sanitary use to three existing structures to be used as a tasting room, brewery, and farm stand and the Owner desires to obtain municipal water for the property to operate Obercreek Brewing Company, it being acknowledged herein that no water is being supplied hereunder for the brewing of beer, which shall be by a separate water source; and WHEREAS, the property is not currently located within a Water District in the Town of Wappinger but the property abuts the UWWD water main that is located within the New Hamburg Road Right of Way and a water shutoff valve is located within the Right of Way for a future connection to the property; and WHEREAS, the parties have determined that it is desirable to provide water service to the Property by the creation of a water tenancy agreement; and WHEREAS, the Town Board has determined that there is enough capacity to tie in properties with existing known structures on that parcel only, that would require a limited water supply; and WHEREAS, UWWD is willing to provide water service to the Property and to allow access over its pipes, mains, pump station and infrastructure for the water service to the Property provided that the New York State Department of Environmental Conservation issues a Water Supply Permit to allow the UWWD to provide water to the Property, if such Permit is required; WHEREAS, as consideration for obtaining access to the UWWD, the Owner shall construct all improvements necessary for connecting the Property to the UWWD, and WHEREAS, this Tenancy Agreement is intended as an interim procedure and the Property is intended to be included in a future extension of the UWWD; NOW, THEREFORE, in consideration of the mutual terms, covenants and conditions herein and other valuable consideration, the parties hereto agree as follows: 1. TERM. The term shall commence upon the execution of this Agreement by all parties and the initial term shall expire forty years from the date water service is first provided to the Property, unless it is sooner terminated by other provisions set forth herein. Provided the Owner is not in default, the term of this agreement shall be automatically renewed thereafter for subsequent five-year terms until such time as the either party gives notice of the termination of the renewal Agreement, such notice of termination of the renewal Agreement must be given at least six months prior to the expiration of the term unless the Agreement is sooner terminated by other provisions of this Agreement. 2 2. RIGHT TO CONNECT In consideration of the promises made by the Owner under this Agreement, the UWWD grants unto the Owner the right to connect to the water distribution facilities of the UWWD as provided by this Agreement. 3. CONSTRUCTION OF IMPROVEMENTS —Owner will, at its sole cost and expense, design and construct all water improvements necessary to connect the Property to the UWWD water distribution system at the water shutoff valve in the public right of way abutting the Property. A. The water improvements shall be constructed in accordance with the following standards: i) Installation of the water improvements shall be in accordance with Chapter 234 of the Code of the Town of Wappinger; ii) Installation of the water improvements shall comply with all applicable statutes, regulations and rules adopted by Federal, State and Local jurisdictions including but not limited to: Part 5 of the Sanitary Code of the State of New York (10 NYCRR Chapter I, Part 5); iii) The water service connections shall be in conformance with the Town's Commercial Water Connection Specifications. iv) Construction of the improvements is subject to final inspection and approval by the Town Engineer, the Building Department and the Water System Operator. Water service may not be turned on unless approval is given by the Town Engineer, the Water System Operator and the Building Department. B. REVIEW BY TOWN The Town engineer must approve all plans and specifications and will be permitted to inspect the construction as it progresses. The Owner shall be responsible to reimburse the Town for the reasonable costs of engineering review and inspection for this project, including post -completion review which shall be funded, at the inception, by the posting of an in initial escrow in an amount determined by the Building Department and to be paid with the application for the Town of Wappinger Building and any legal outside of retainer legal fees incurred in connection herewith. It is noted herein that engineering review and inspection will be by the Town engineer and its water system operator thus the costs for same shall include both of those entities. C. NECESSARY PERMITS i) Owner shall acquire, at its expense, any and all permits necessary in order to undertake the project provided for herein, included but not limited to: road opening permits, NYS DOT permits, NYS DEC permits, grading permits, plumbing permits, NYS Department of Health, Dutchess County Department of Behavioral and Community Health permits, and Town of Wappinger Building Permits. 3 ii) To the extent the Town must obtain any regulatory approvals to implement this Agreement, including but not limited to a water supply permit from NYDEC, the Town shall obtain the same and the Owner shall reimburse the Town for the costs of any such permits. iii) If necessary, the Owner shall apply for approval from the Dutchess County Department of Behavioral and Community Health within 30 days of the execution of this agreement. 4. OPERATION, MAINTENANCE, REPAIR AND REPLACEMENT All water improvements constructed by the Owner shall be property of the Owner and the Owner will be responsible for the operation and maintenance of all aspects of the water improvements from the point of connection with the UWWD water distribution line, onto and throughout the Property. The Owner shall operate and maintain all water improvements necessary to connect the Property to the UWWD water distribution system in good condition without leaks. A. When leakage occurs on pipes and facilities owned by Owner, Owner shall make the necessary repairs immediately when they are discovered. If Owner fails to make said repairs as soon as possible, the Town may take such steps necessary to protect the Town water supply, including, if necessary, the right to discontinue water service, until such time as the leak is repaired. If water service is discontinued, the Owner shall pay the Town the restoration of service charge. B. Owner shall replace or repair such portions of the water improvements that are deemed necessary by the Town Engineer or the Water Department within the time prescribed by the notice to cure. If Owner fails to make said repairs or replacement within the time provided by the notice, the Town may take such steps necessary to protect the Town water supply, including, if necessary, replacement or repair as provided above and/or the right to discontinue water service, until such time as the repairs or replacement is completed. If water service is discontinued, the Owner shall pay the Town the restoration of service charge. 5. COST OF IMPROVEMENTS —The cost of the improvements to be paid by the Owner shall include all costs necessary or incidental to the construction of the water services for connection of the Owner's property to the water distribution facilities of the UWWD. 6. INDEMNIFICATION — The water services to be constructed by the Owner will be constructed by it, or its agents, as an independent contractor. The Owner and its agents will hold the Town, its agents and consultants harmless from any claims or causes of action brought against them, as a result of the Owner's actions or those of any agent, employee or subcontractor of the Owner. The Town shall be named as an additional insured, and proof of said addition shall be provided prior to the commencement of any construction. Claims arising from the acts or omissions of UWWD are excluded from this paragraph. A. Owner will hold UWWD and Town of Wappinger harmless from any claims for damage to the septic system on owner's property arising from the connection of owner's property to the UWWD as a tenant pursuant to this Agreement. 4 7. WATER RATES While this Agreement is in effect, the Owner, its successors and assigns, will pay on an annual basis or at such intervals that the Town bills its customers the same water charges, benefit assessment charges or other fees and assessments imposed or to be imposed on property owners within the UWWD for water and does consent to said charges being deemed liens on the Property in the same manner as if the Property was located within the boundaries of the District. The Water Charges shall be determined and payable in accordance with Chapter 234 of the Town of Wappinger Code as the same may be amended from time to time hereafter. A. The Owner consents that unpaid water charges become liens on the Property and run with the land against the Owner's successors and or assigns. B. Service restoration fees and other miscellaneous charges shall be in accordance with Chapter 234 of the Town of Wappinger Code and the rules and regulations of the UWWD Water System. 8. NO OTHER HOOK-UPS — There shall be no additional permission to serve any property outside of the District other than the lots herein described though the water improvements being constructed by Owner. This agreement only permits the connection of one existing barn to be converted to a 1 story Tasting Room, one existing barn converted to a 2 story brewery, and one existing farm stand as referenced in the approved site plan on the Property. The parties agree that no other parcel or structure shall be allowed to connect to the water service line being constructed by the Owner without the express written approval by the Town. 9. TEMPORARY DISCONTINUANCE OF SERVICE In accordance with the regulations of the Town and New York State Law, including but not limited to Chapter 234 of the Town of Wappinger Code, the Town may, upon reasonable notice, when such notice can reasonably be given, suspend, curtail or discontinue water service on a temporary basis: A. for failure by Owner to comply with any valid governmental order or directive, such discontinuance shall be for the shortest time practicable. B. for any of the following acts or omissions on the part of the Owner; provided however that reasonable arrangements are made for the provision of water service to the residents using the water improvements provided for in this Agreement. 10. Subject to Paragraph 11 following, the following shall constitute default by Owner: A. Non-payment of any valid bill due for service for the Property, provided that a notice of default has been given which provides a period of ten days to cure the default in payment or file a written notice of objection to the Town. If the Owner files an objection, the Town Board shall hear such objection at its next meeting and determine the validity of such objection. In the event the objection is not sustained then water service may be discontinued. B. Disconnecting the meter or in any way tampering or interfering with the meter or remote meter reading device or tampering with any other facility of the Town without permission. C. Providing water service to others without the approval of the Town. 5 D. Failure to remove any non -conforming temporary or permanent physical connection or interconnection to any unapproved source of supply. E. Maintenance of any water outlet improperly protected against backflow or back - siphonage, or connecting or operating any piping or other facility on the Owner's premises in such manner as to adversely affect the safety or adequacy of service provided to other Town water customers present or prospective. F. Willful wasting of water after a notice to cure has been served and a 10 -day cure period has expired, and no cure has been effected. G. Failure to properly construct and maintain meter housings. H. Failure to comply with the terms of orders any Court or governmental authority having jurisdiction concerning the obligations of Owner under this Agreement. I. Refusal to allow reasonable access to the Property for necessary purposes in connection with rendering of service, including meter installation, reading, or testing, or the maintenance or removal of the Town's property 11. ENFORCEMENT OF THIS AGREEMENT BY UWWD SHALL BE EFFECTUATED BY PROCEEDING TO PLACE AND ENFORCE A LIEN FOR FINANCIAL OBLIGATIONS OF OWNER UNDER THIS AGREEMENT OR BY SEEKING INJUNCTIVE OR OTHER RELIEF FROM A COURT OF COMPETENT JURISDICTION FOR DEFAULT OTHER THAN DEFAULT OF FINANCIAL OBLIGATIONS PROVIDED THAT UWWD SHALL SEEK IN SUCH ORDER AND PERMIT A REASONABLE CURE PERIOD FOR DEFAULTS WHICH DO NOT PRESENT AN IMMEDIATE HAZARD TO LIFE, PROPERTY OR HEALTH. 12. EARLY TERMINATION OF AGREEMENT Subject to the right of Owner to challenge any governmental order or directive that Owner asserts is invalid or unreasonable, Owner shall comply in good faith with any governmental order or directive concerning the obligations of Owner under the terms of this Agreement. The following shall constitute grounds for early termination of this Agreement: A. If the Owner is not able to install the necessary water improvements this Agreement shall terminate upon notice to the Town of such fact. B. This Agreement shall terminate if Owner does not commence construction of the improvements within three years of the execution of this Agreement by both parties. C. The Owner acknowledges that the Town has the right and obligation under this Agreement to discontinue water service to customers outside the District when the UWWD's water supply is insufficient to meet the needs of District residents. In the event that there is no longer surplus water capacity to service the Property, the Town may seek judicial authorization to terminate water service under this Agreement. The Town shall give the Owner sufficient time to obtain an alternative water source and construction of a connection to such alternate source, in 6 accordance with said approval. In no event shall the notice period be less than three months, except in the case of an emergency. D. In the event a water district or water improvement area of the Town of Wappinger is extended to cover the Property and the Property is approved to obtain water from such water district or improvement area, this Agreement shall terminate (without the need for Court order). The Owner shall have a reasonable amount of time to make connection with Town of Wappinger water service. E. Neither party shall be entitled to damages or penalties if this Agreement is terminated in accordance with this section. 13. TOWN CODE & WATER DISTRICT REGULATIONS The Owner agrees to abide by and be bound by Chapter 234 of the Code of the Town of Wappinger entitled "Water" as well as all rules and regulations adopted by the Town Board for the operation of the UWWD Water system. 14. TOWN'S RIGHT TO INSPECT The Town and its employees and agents shall have the right to enter upon the Property at reasonable times to inspect the water improvements in order to determine that the water improvements are functioning properly and are in compliance with this Agreement, the Town of Wappinger Code and other applicable laws. The right to inspect shall not be construed to place the Town in a position of responsibility for maintaining the Owner's water distribution system. The purpose of inspections is to protect the UWWD's water system. Failure to permit access to inspect the water improvements shall be considered a default of this Agreement and the Town shall be authorized to discontinue service until such time suitable access is provided. 15. EMERGENCY REPAIRS The Town and its employees and agents shall have the right to enter upon the Property in the case of an emergency to make such repairs to the water system that are necessary. 16. SEQRA REVIEW This Agreement is a Type II action and is not subject to SEQRA review. 17. BUY -IN FEE — Owner shall make payment of a buy -in fee of a sum equal to $10 per gallon of estimated daily design flow, as determined by a competent engineer and confirmed by the Engineer to the Town, pursuant to Town Code Section 236-6(B)(2)(a). The buy -in fee provided for in this Agreement is intended to serve as a credit for the buy -in fee for inclusion in the District by reason of the fact that this tenancy is intended as an interim procedure pending inclusion of the property in the District. Should the Owner wish to connect an additional structure not included in this agreement, Town Board approval is required, and an additional buy -in fee will be required. 18. WATER PRESSURE The continuing adequacy of the Town's water pressure is in no way guaranteed by the Town. A. The Owner shall be allowed to conduct any tests it deems appropriate to determine that the water pressure of the UWWD Water System is sufficient for its needs. All such tests must be completed before the buy -in fee is due. In the event that these tests determine that the water pressure of the UW/WD Water System is not sufficient, the Owner may terminate this Agreement. Once the incentive fee has been paid, the Owner may not terminate this Agreement pursuant to this section. 7 B. The Owner acknowledges that they have the opportunity to become fully familiar with the water pressure supplied to the Property by the UWWD water system and any limitations said pressure may have on any firefighting apparatus. With this knowledge the Corporation accepts the water pressure "as is". 19. PROHIBITED USES The Property may only be used as described herein and the water supply is limited to serving the fire suppression system and the bathrooms serving the tasting room and brewery in the barns. 20. COSTS & ATTORNEYS FEES — The Owner is liable for all costs, charges, duties and responsibilities imposed upon the Owner by this Agreement. The parties may enforce this Agreement by judicial action and the prevailing party shall be entitled to recover its reasonable costs and attorney's fees in any action to enforce this Agreement. 21. COOPERATION — It is expressly understood that the parties' good faith efforts and due diligence in proceeding with the approvals, planning and construction of the proposed project are expressly made terms and conditions of this Agreement. The parties acknowledge that, although they have attempted to incorporate and resolve all matters relative to the proposed improvements, certain matters will likely arise hereafter which were not addressed in whole or in part by this Agreement. Accordingly, the parties hereto shall, in good faith, cooperate to do all things, which may become necessary in the future to effectuate the purpose and intent of this Agreement. 22. AUTHORITY — It is expressly understood and acknowledged that the signatories to this Agreement have the power to bind their respective parties to all of the terms and conditions contained herein. All resolutions of the respective governing bodies of the Town have been adopted by the appropriate legislative authority. 23. APPLICABLE LAW This Agreement shall be governed under the laws of the State of New York. 24. VENUE Venue for any dispute arising from this Agreement shall be placed in a New York State Court of competent jurisdiction located within the County of Dutchess, State of New York. 25. ENTIRE AGREEMENT This Agreement and any attachments hereto constitute the entire agreement and understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, whether oral or written. No modification or claimed waiver of any of the provisions hereof shall be valid unless in writing and signed by the duly authorized representative against whom such modification or waiver is sought to be enforced. 26. WAIVER None of the terms of this Agreement can be waived or modified except by an express Agreement in writing signed by both parties. There are no representations, promises, warranties, covenants, or undertakings other than those contained in this Agreement, which represents the entire understanding of the parties. The failure of either party hereto to enforce, or the delay by either party in enforcing, any of its rights under this Agreement shall not be deemed a continuing waiver or a modification thereof and either party may, within the time provided by applicable law, commence appropriate legal proceedings to enforce any or all of such rights. 27. SEVERABILITY All rights, powers and remedies provided herein may be exercised only to the extent that the exercise thereof does not violate any applicable law, and are intended to be 8 limited to the extent necessary so that they will not render this Agreement invalid, unenforceable or not entitled to be recorded under any applicable law. If any term, covenant or condition of this Agreement shall be held to be invalid, illegal or unenforceable, the validity of the other terms, covenants and conditions of this Agreement shall in no way be affected thereby. 28. EXTENSION OF SPECIAL DISTRICT UWWD and the Town of Wappinger reserve the right to extend the boundaries of UWWD to include Owner's Property. If petitioned by the Owner pursuant to Article 12 of the Town Law, the Town will use best efforts to extend the District. The Owner agrees to irrevocably execute any Petition pursuant to Article 12 of the Town Law to extend the boundaries of the UWWD to include the Property, or for any other Water District formed by the Town to include the Property. If the Town Board on its own motion, pursuant to Article 12A of the Town Law, determines to extend the boundaries of the UWWD to include the Property or to create a new District the boundaries of which will encompass the Property, Owner will not take any action to oppose the Town Board's actions. If the UWWD is extended to cover the Property this Agreement shall terminate and the Property shall be bound by the laws and regulations applicable to the UWWD. 29. SUCCESSORS AND ASSIGNS This Agreement is binding upon the heirs, successors and assigns of Owner and it shall run with the land comprising the Property and the parties shall record this Agreement or a Memorandum of this Agreement with the Clerk of Dutchess County, indexed to the Property. This Agreement may not be assigned by the Owner. 30. ADDITIONAL DOCUMENTS Each party will, at any time and from time to time, at the request of any other party make, execute, acknowledge and deliver, or cause to be done, all such further acts, deeds or other documents as may reasonably be necessary or appropriate to complete the transactions contemplated by this Agreement. IN WITNESS WHEREOF, the parties have set their hand and seals by their duly authorized officers as IN WITNESS WHEREOF, the parties have set their hand and seals by their duly authorized officers as of the date first above written. OBERCREEK DEVELOPMENT LLC By: STATE OF NEW YORK ) COUNTY OF DUTCHESS ) ss. On the day of 2024, before me, the undersigned, a Notary Public in and for said State, personally appeared personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument. 9 Notary Public 10 TOWN OF WAPPINGER TOWN BOARD ON BEHALF OF UNITED WAPPINGER WATER DISTRICT Town Supervisor Joseph D. Cavaccini Councilwoman Angela Bettina Councilman Alfred J. Casella STATE OF NEW YORK ) COUNTY OF DUTCHESS ) ss. Councilman William H. Beale Councilman J. Christopher Phillips ACKNOWLEDGEMENTS On the day of , 2023, before me, the undersigned, a Notary Public in and for said State, personally appeared Joseph D. Cavaccini, William H. Beale, Angela Bettina, Christopher Phillips, and Alfred J. Casella personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument. Notary Public 11 EXHIBIT A ALL that certain plot, piece, or parcel of land, situate, lying and being in the Town of Wappinger, County of Dutchess and State of New York, being described as follows: Parcel Number 135689-6057-02-847758-0000 Parcel Location 61-81 New Hamburg Rd Municipality Wappinger Owner Name Obercreek Development LLC (P) Primary Owner Mailing Address 89 New Hamburg Rd Lot Size (acres): 20.04 Ac (s) Split Town: Filed Map: 10427C Agri. District: None File Lot #: 7 12 School District: (135601) Wappingers CSD Land Use Class: (241) Rural res&ag ADD COPY OF DEED TO THIS AGREEMENT 13