Letter - 11-16-2021 - Spiro Tunnel - Right of First RefusalSnell &\U7ilmer
RECEIVED
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Salt [a&.e City, Utah 84101-1547
801.257.1900
www.srvlaw.com
Wade R. Budge
wbudge(@wlaw.com
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SALTTAKECITY
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November 16,2021
VIA E.MAIL AND CERTIFIED MAIL
Laura Briefer
Director
Salt Lake City Department of Public Utilities
1530 South West Temple
Salt Lake city, uT 841l5
E. Russell Vetter, Esq.
P.O. Box 145478
Salt Lake City, UT 841l l
Re: Spiro Tunnel, Right of First Refusal
Dear Laura and Rusty:
We received your October 28,2021letter to REDUS Park City, LLC ("REDUS"), written
on behalf of Salt Lake City Corporation ("Salt Lake"), regarding the Spiro Tunnel ('.October 2gs
!ette.r') and the proposed extension of Salt Lake's Water Supply Agriement with the park City
Special Service District ("District") for a period of one ye*, co-m"n"iog November 1,2021, and
ending October 31, 2022 ("Proposed Extension"). The purpose of this letter is to confirm the
following terms:
A. As of the date hereof, REDUS is not exercising its purchase right ("Right of First
Refusal") under Paragraph 1l of the Agreement of March zo, 1974, or the
December 9,2015 letter agreement referenced in your October 28th Letter, with
respect to Salt Lake's remaining uncommitted water in the Spiro Tunnel
("Remaining Water"). The Remaining Water is defined in your October 28ft Letter.
B. The Right of First Refusal applies again if: (i) Salt Lake does not make the proposed
water sale to the District within six months on the same terms set forth in the
October 28m Letter; (ii) any sale is proposed to a party different than the District;
(iii) any of the terms or conditions of the extension or the sale of the Remaining
Water to the District differ from those in the October 28m Letter, the Proposed
4895-3029-0945
snoll & wilme, is a member ol LEx rlrtiNDt. The Leading Assocration or lndspsndent Law Firms
Snell & \Tilmer
I I D_
Laura Briefer
Rusty Vetter
November 16,2021
Page2
Extension, the October 8, t99l Water Supply Agreement between Salt Lake City
and Park city, the March 2,2016 Amendment to water Supply Agreement between
Salt Lake City and Park City Water Service District, and any related agreements or
extensions; or (iv) there is any replacement or further change, amendment,
modification or extension of any one of the Surplus Sales Agreements, including
by way of example and without limitation, any extension beyond October 31,2022.
C. REDUS's election not to exercise its Right of First Refusal in this instance does not
waive any of REDUS's rights with respect to the Right of First Refusal, or
otherwise.
D. Similarly, REDUS's election not to exercise its Right of First Refusal does not
impair the value of ils Spiro Tunnel rights.
Should you have any questions or objections to the foregoing, please let me know
immediately.
Very truly yours,
REDUS Park City LLC
L L
By: Wade R. Budge
Its: Afforney
WRB
Cc: Redus Park City LLC
4E95-3029{945