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BRIGHTON ESTATES PROPERTY OWNERS ASSOCIATION, INC. NOTICE OF AUCTION SALE OF WATER SHARES The Board of Directors, on behalf of the Brighton Estate Property Owners Association, Inc. (“POA”) is offering at auction one or two shares of stock in Midway Irrigation Company (“MIC”) representing the right to use water in the amount of 0.45 acrefeet per share, per year (the "Share"). This is the amount that is defined by the State of Utah as the minimum amount needed for a fulltime, singlefamily residence for indoor, culinary usage (no exterior landscape irrigation, etc.). It is also the amount required by Wasatch County as one condition to the issuance of a building permit. One share will definitely be sold. A second share may be sold at the discretion of the Board if the second highest bidder matches the high bidder. The water rights underlying the shares in MIC have several established pointsofdiversion in the Brighton Estates area.
However,
buyers of MIC shares acquire with the share only a right to a certain quantity of water. The share does not also carry with it the right to use any of the existing wells within Brighton Estates or provide access to water lines. In order to actually use this water, the purchaser must also acquire access to water source capacity from the owner of a well, and acquire necessary easements to deliver water from the point of diversion to the intended place of use. MIC has an approved change application that must be perfected by putting the water to beneficial use. The State Engineer sets dates by which the applicant is required to demonstrate either that the water is in beneficial use or that substantial progress has been made toward doing so in order to obtain further extensions of time. The first such deadline was August of 2011. An extension was granted to August of 2016. Additional extensions are possible, but the conditions for an additional extensions are more demanding as time goes on. Therefore, it is in the interests of the shareholders of MIC shares to get their water into use reasonably soon so that the water rights underlying the shares can be perfected under Utah law. To be eligible to submit bids and to purchase this share, a buyer must: 1. Own real property within Brighton Estates and, generally, the Bonanza Flats area. 2. Pay in full the purchase price determined by auction within three (3) banking days of close of bidding. The next highest bid will be notified of their right to purchase the Share if the Share is not paid for by the prevailing bidder with certified funds by the close of business on the 3rd banking day referenced above; Water rights and shares with points of diversion in Brighton Estates are limited, and this is an excellent opportunity to gain ownership of this valuable resource. Many Brighton Estates property owners have purchased Shares in the past. The Board determined that a minimum selling price for this share sale would be
$32,500.00.
Bids will start at that figure, and higher bids will be accepted in minimum bid increments of
$250.00 Prospective bidders should be advised that all shares in MIC are subject to assessments levied by the MIC. As the newly established special service district (“SSD”) proceeds, there is a possibility that additional SSD water rights and water sources could be made available for use in providing water service to the properties included within the SSD. Should that occur, and it is unknown at this point in time whether it will, the future value of the water shares may be affected. Interested buyers may submit bids to Brighton Estates Property Owners Association, Inc. beginning now. The final date for submission of a bid is May 22, 2015. The prevailing bidder and the price will be announced via the website, below
, on May 25, 2015.
All bids must be submitted by EMail to: http://www.brightonestatespropertyowners.org/watersharesalebidform/ Questions regarding this sale should be submitted no later than May 25, 2015 via the bid form
of our website:
http://www.brightonestatespropertyowners.org/watersharesalebidform/