CCR2022.059-AgreementAGREEMENT TO TERMINATE A 2003 TERMINATION AND REC AGREEMENT
BETWEEN THE VILLAGE OF MUSKEGO LAKES PARTNERSHIP
AND THE CITY OF MUSKEGO
WHEREAS, Country Club Villages, Inc. (CCV) is a Wisconsin Corporation formed in
1989 to own and develop property in City of Muskego located around the Muskego
Lakes Golf Course; and
WHEREAS, On February 3, 1992, CCV entered into a Petition for Improvements and
Agreement regarding Special Assessments with The City of Muskego (City) whereby
CCV agreed to pay for the entire cost of sewer construction needed to bring sewer
service to certain parcels owned by CCV for development and, in exchange, CCV was
awarded a prepaid balance of residential equivalent connections (RECs); and
WHEREAS, The RECs are pre -paid credits that are drawn down by City upon
completion of residential units and connection to the sewer lines; and
WHEREAS, On August 23, 1994, CCV and City entered into an amended and restated
version of the Petition; and
WHEREAS, By agreement of the parties, the Petition and the Amended and Restated
Petition were assigned by CCV to Village of Muskego Lakes Partnership (VML) on June
27, 1995; and
WHEREAS, The parties operated under these Agreements until April 17, 2003, when
they agreed to enter into a Termination and REC Agreement which terminated both the
Agreements referenced above; that said Agreement was entitled "Termination
Agreement as to Amended and Restated Petition for Improvements and Agreement
Regarding Special Assessments Entered By and Between Country Club Villages, Inc.
and the City of Muskego Dated August 23, 1994 and Agreement as to Use of REC's";
and
WHEREAS, The Termination and REC Agreement substantially attempted to simplify
and clarify the agreement between the parties as to (a) the then -current balance of
RECs, (b) the procedure for applying for the use of RECs, and (c) the land towards
which the REC balance may be applied; and
WHEREAS, To date the City is holding prepaid REC funds from VML in the amount of
$459,943.48 in an accrual account; and
WHEREAS, The City is unable to use said funds in any manner other than the
assignment of RECs for properties developed by VML; and
WHEREAS, In the past year, the City and VML have been in a legal dispute as to the
further assignment of unused prepaid RECs for properties owned by VML as well as
C:AUsers\kroller\AppData\Local\Microsoft\Windows\TNetCache\Content.Outlook\QXDNCWUC\TERMINATE
TERMINATION AND REC AGREEMENT (VML).docx
properties that were sold by VML to other developers of which VML is requesting the
assignment of RECs for; and
WHEREAS, the parties wish to enter into an Agreement terminating the 2003
Termination and REC Agreement and pay out to VML the remaining funds being held in
the prepaid REC accrual account.
Based upon the above, the parties hereby agree to the following:
The City shall pay to VML the amount of $459,943.48 representing the total
balance of the unused REC Accrual Account as referenced herein within thirty
(30) days of the signing of this Agreement by both parties.
2. That the Termination and REC Agreement referenced herein, signed by the
parties on April 17, 2003 and recorded with the Waukesha County Register of
Deeds Office on April 28, 2003, as Document Number 2976547 is terminated as
of the date of the signing of this Agreement.
CITY OF MUSKEGO
Rick Petfalski, Mayor
VILLAGE OF MUSKEGO LAKES,
PARTNERSHIP
Date Signature
Print Name
Date
C:AUsers\kroller\AppData\Local\Microsoft\Windows\TNetCache\Content.Outlook\QXDNCWUC\TERMINATE
TERMINATION AND REC AGREEMENT (VML).docx