North Weld Water District seeks dismissal of lawsuit over tap moratorium

LUCERNE — The North Weld County Water District has filed a motion in Weld County District Court seeking dismissal of a lawsuit filed by Eagle View Farms LLC over the district’s tap moratorium.

The district imposed a moratorium on new taps in September, citing uncertainty over 1041 regulatory processes in Fort Collins and Larimer County over its planned NEWT III pipeline extending from North Timberline Road in Fort Collins 5.3 miles east into Larimer County.

North Weld also has acknowledged capacity issues stemming from the high rate of residential growth in the region, along with increased demand from commercial users, including dairies.

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The moratorium was partially lifted in mid-February, with the district authorizing issuance of up to 120 taps in 2022, including 50 initially.

Eagle View Farms, which is developing a 24-lot residential community just west of Lucerne and north of Greeley at Colorado Highway 392 and Weld County Road 35, filed suit in early February, alleging violations of a Water Service Agreement through which North Weld agreed to provide water service for the project.

Eagle View seeks monetary damages in an amount to be determined, an injunction forcing the district to provide water service via taps for the project and other judgments, including attorney fees and expenses.

North Weld on Monday filed a motion to dismiss the case, arguing that the developer knew about the moratorium when it contracted to sell a lot in the Eagle View Farms development.

“While the moratorium was in place, and with full knowledge of the imposition of the moratorium, the developer apparently entered into a contract with a potential buyer to sell one of the lots subject to the WSA,” attorneys for the North Weld County Water District said in the court filing.

The filing asserts that the district did not breach its Water Service Agreement with Eagle View, referencing a December letter from the district to Eagle View that stated, “this letter is to confirm that the district does intend to fulfill its commitments made pursuant to the WSA when the district is able to resume settling water taps again.”

North Weld’s attorneys also stated that Eagle View “cannot mandate that the district provide taps in direct violation of a district policy.”

Attorneys for Eagle View Farms and North Weld did not immediately return calls for comment.

The Weld County District Court case, Eagle View Farms LLC v. North Weld County Water District, is 2022CV30072.