CLYDE POTTS WATERSHED PROTECTION (Jun. 28, 2000)

On July 16 and July 19, local press reports noted that SMCMUA was in contract discussions with the Townships of Randolph and Mendham and the Morris County Park Commission about the acquisition of development rights on the 900 acre Clyde Potts watershed. The following is a copy of the Resolution of Intent authorized by the SMCMUA Board. Persons interested in more detailed information should call the Executive Director, Harry Gerken, at (973)326-6865.

WHEREAS, the Authority (SMCMUA) owns and maintains lands within the Townships of Mendham (Mendham) and Randolph (Randolph); and

WHEREAS, these land holdings comprise the Clyde Potts Reservoir and drainage basin and are known as: Lot 1 in Block 52, Lot 1 in Block 95, Lots 42, 43, 50, 51 in Block 93, Lots 4, 5, 29, 61, 62, 64 in Block 103 on the Randolph Township tax map and Lots 9, 9.01 in Block 118, Lot 13 in Block 119 on the Mendham Township tax map; and

WHEREAS, the estimated land holdings total 650 acres with 350+ acres in Randolph and 500+ acres including the reservoir in Mendham; and

WHEREAS, there are privately owned properties remaining within the drainage basin that are under intense developmental pressures; and

WHEREAS, it is in the best long term interest of SMCMUA to prevent additional development within the Clyde Potts drainage basin so as to reduce the threat of water contamination; and

WHEREAS, Mendham, Randolph and the Morris County Park Commission (MCPC), wish to maximize land conservation in Morris County and in turn the expansion of SMCMUA land holdings; and

WHEREAS, the land holdings of the SMCMUA are currently protected from sale and development as a result of P.L.1990, C.19; and

WHEREAS, it is the desire of MCPC, Mendham and Randolph to ensure that the lands comprising the Clyde Potts Reservoir and drainage area are forever protected and preserved; and

WHEREAS, it is recognized by the respective governing body members that the most effective manner in which to guarantee the permanent preservation of the Clyde Potts Reservoir and drainage area is through the acquisition of development rights; and

WHEREAS, the MCPC, Mendham and Randolph are willing to assemble a package of grants, loans and local open space funds for purposes of funding the acquisition of said development rights for the reservoir and surrounding land holdings of the SMCMUA;

NOW, THEREFORE, BE IT RESOLVED, by the Members of the SMCMUA that the SMCMUA Executive Director, attorney and one or more Members of the SMCMUA to be selected by the Chairman, shall actively participate in the negotiation and preparation of an agreement for the sale of development rights for the Clyde Potts Reservoir and adjoining lands within the drainage area now or hereafter owned by SMCMUA (the Restricted Property) in accordance with the following:

1. The use of the Restricted Property shall be limited in perpetuity to public water supply and water supply protection, open space, natural resource conservation, passive recreation, and wild life preservation purposes only; and that the Restricted Property be kept free of all residential, commercial or industrial development of any kind except as may be incidental to its use for water supply and water supply protection; and

2. The consideration to be paid for the development rights to the Restricted Property shall be based upon certified appraisals subject to the certified fair market value approved by the Green Acres Program and acceptable to the parties.

3. The MCPC in concert with Mendham and Randolph shall be allowed to design and construct a trail system for passive recreational travel (excluding motor vehicles and equestrian travel) across said lands, the location and extent of which shall be subject to the approval of SMCMUA.

4. The proceeds from the transaction shall be placed into a fund restricted to the acquisition and permanent preservation as open space, properties adjacent to the reservoir holdings and/or within the drainage basin subject, however, to item 7 below.

5. The SMCMUA shall make available up to 100% of the proceeds from the referenced sale of development rights for Randolph Township to acquire Lots 21, 22, 24, 25, 25.01, 34, 35, 40 and 41 in Block 93 (the Acquired Parcel), said land to become permanent open space for the protection of the reservoir. Randolph shall be responsible for any cost of acquisition of the Acquired Parcel in excess of said proceeds and shall indemnify and save the SMCMUA harmless from any acquisition costs or liability in excess of the amount of the proceeds and from any litigation pertaining to the said acquisition of the Acquired Parcel in excess of said proceeds except that the limitation as to the amount of the proceeds shall not apply to that certain litigation now pending in the Superior Court of New Jersey against Randolph and others by the owner(s) of the Acquired Parcel and Randolph shall fully indemnify and hold SMCMUA harmless from any and all liability and expenses (including, but not limited to, reasonable attorneys' fees) pertaining to that litigation without limitation as to amount.

6. Upon acquiring the Acquired Property referred to in Section 5 above, Randolph shall transfer title of same to the SMCMUA, free and clear of all liens and encumbrances except that the conveyance will be subject to a conservation easement precluding any future development thereof other than as set forth above.

7. Upon completion of acquisitions within the drainage basin, SMCMUA may use the balance of the proceeds, if any, for the acquisition of wellhead preservation lands or for other purposes as deemed by the Members of the Authority in their reasonably exercised discretion to be in the best long term interest of SMCMUA and/or SMCMUA's Water System.

BE IT FURTHER RESOLVED, that SMCMUA co-operate with MCPC, Mendham and Randolph in the preparation of an agreement, a draft of which shall be submitted to the parties within 60 days of the adoption of this Resolution containing provisions consistent with this Resolution and such other terms and provisions as may be agreed upon by the parties which agreement shall be subject, as to all of its terms and conditions, to formal approval and execution by the said parties in the manner provided by law; and none of the parties shall have any obligation to the others with respect to the proposed grant of development rights, acquisition of lands or otherwise until such approval and execution; and

BE IT FURTHER RESOLVED, that copies of this Resolution be provided to MCPC, Mendham and Randolph and to such other parties as directed by the Chairman or Executive Director.