The Town of Cape Charles is still in negotiations with Preserve Communities over the status of the 1991 Annexation Agreement, Law No.27. This has continued to fuel several rumors, including that the agreement to sell water and wastewater utilities to Virginia American Water is in jeopardy, depending on how the negotiations turn out.
The Mirror contacted Town Manager John Hozey to get the 411, and as always, received a very quick response.
MIRROR: Several people have contacted me about the Annexation Agreement. The nasty rumor is that VAW is not inking the deal until the Annexation Agreement is resolved…and that Preserve is pushing back hard on whether there are still obligations. Any info you can provide would be appreciated.
HOZEY: As usual, the rumor mill is incorrect. VAW has committed to our purchase agreement, and they do not have the option of pulling out over the annexation agreement. Only the Town has the option to pull out over that (should we choose to do so). But the Town is not contemplating that, as we are currently in good faith discussions with Preserve Communities on a possible agreement.
The Annexation Agreement includes the exhibits and the related Town Agreements (the Prior Agreement of March 13, 1990, and the amended Town Agreement of November 25, 1991 – each of which are part and parcel (central to and integral to) to the Annexation Orders of the Special Annexation Court of Northampton County and the Circuit Court of Northampton County effective January 1, 1992. There is more than more ONE Annexation Agreement. In fact there are Annexation Agreements (the Settlement Agreement) between the Town and County, the Town, the County and Brown & Root (now Preserve Communities). Recall that the February 1, 1991 Report of the Commission on Local Government is also part and parcel to the Annexation Orders. That Report includes the issues of the Town’s utilities and subsequent resolutions to the issues of water and wastewater treatment). The Amended Agreement of March 13, 1990 did not change the terms or meanings in the Prior Agreement as to the original obligations and conditions in the Agreement between the Town and Brown & Root, of which such terms “run with the land”. The County fought and lost in the Circuit Court in its attempt to dislodge that Town and Brown & Root Agreement. “Runs with the land” means all of those lot and home owners within the Bay Creek Development within the original Town have precise rights as to the taxation of their parcels/lots and such other matters effecting their property since “runs with the land” included no obligation on the part of subsequent owners of the Property within the North Tract (original Town jurisdiction) were to be obligated to fulfill the obligations of the Town and or Brown & Root – now Preserve Communities.