Department of Utilities
Reference: Lupton Meadows Reservoir Purchase and Sale Agreement
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Scott Olsen, Director of Utilities
Date Prepared: May 27, 2026
PURPOSE
Requesting City Council’s consideration of a Purchase and Sale Agreement related to the purchase of land, water shares, and reservoirs in exchange for water bank credit.
BACKGROUND
City Council previously provided staff with direction on negotiations related to the Lupton Meadows Reservoir in executive session and in accordance with such direction, City staff negotiated and finalized the Agreement for consideration this evening. The Agreement was presented to City Council at the June 9, 2026, Study Session.
The City and the property owner, Platte Land & Water (“PLW”), negotiated over a period of three years a transfer of land, water shares, and reservoirs where the City will be able to store water for its use, and in exchange, PLW is receiving water bank credit that it can sell to developers to meet water rights requirements. More specifically, the City and PLW entered into a non-binding Letter of Intent (LOI) in 2023 detailing a future exchange of water shares, payment of $119,000 toward design of reservoir improvements, sale and purchase of the property and the reservoirs in exchange for credits in the City of Brighton water bank. Additionally, the City and PLW entered into a non-binding, amended and restated LOI in 2025 in which PLW would also provide Brighton with cash toward the construction of the reservoir improvements as well as the design costs and other real property interest described above in exchange for credits in the City’s water bank.
Both the City of Brighton and PLW now wish to enter into a binding Purchase and Sale Agreement (PSA) related to the property. The PSA details each party’s obligations as generally outlined below:
Brighton-
• Provide water credit in the City’s water bank for both water shares and storage volume in the reservoirs at a rate determined appropriate by the City and consultants and agreed to by PLW. The base credit amount is 825 acre-feet. This number can be adjusted up or down based on the final reservoir storage volume determined by survey.
PLW-
• Deed 132 shares in Lupton Meadows Ditch Company to City.
• Deed property and existing reservoir improvements, most notably the slurry walls, to City.
• Provide $17,000,000 to the City to be used to construct the pump station, embankment protection and spillway improvements at the reservoirs.
If PLW terminates the agreement instead of completing the sale as described in the PSA, Brighton has a right of first refusal (ROFR) to still purchase the property. PLW also must pay the City for the remainder of the design costs as termination damages to ensure that Brighton has not invested money into the project that it cannot benefit from.
If Brighton chooses to exercise the ROFR, Brighton will reimburse PLW the termination damages.
STAFF RECOMMENDATION
City staff recommend City Council approve a resolution authorizing the City Manager to execute the Purchase and Sale Agreement and documents related thereto.
OPTIONS FOR COUNCIL CONSIDERATION
• Approve resolution as drafted
• Approve a modified resolution
• Deny resolution
• Provide further direction to staff
ATTACHMENTS
• Resolution
• Purchase and Sale Agreement