48-6412. Exemption from adequate water supply requirements based on substantial capital investment; application; criteria; expiration

A. If the director determines pursuant to sections 45-108 and 45-108.04 that an adequate water supply does not exist for a proposed subdivision in the district, the subdivider may apply to the director for an exemption from the water adequacy requirements in section 48-6411, subsections A and B on a form prescribed by the director within one year after the date the district is established. The director shall grant the exemption if the subdivider demonstrates to the satisfaction of the director that all of the following apply:

1. The subdivider has made substantial capital investment toward the construction of the proposed subdivision before the date the district was established. For the purposes of this paragraph, substantial capital investment may include construction costs, site preparation costs, construction of off-site improvements and conversion or remodeling costs for existing structures, as well as planning and design costs associated with those items, but does not include the original cost of acquiring the property.

2. The subdivider was not aware of the proposed requirement for an adequate water supply at the time the investment was made.

3. The proposed subdivision complied in all other respects with existing state laws as of the date the district was established.

B. If the director grants an exemption pursuant to this section:

1. The exemption expires five years after the date the exemption is granted unless, before that date, at least one lot in the subdivision is sold to a bona fide purchaser or the director extends the exemption pursuant to paragraph 2 of this subsection.

2. The director may extend the period of the exemption for not more than two successive five-year periods if the subdivider applies for an extension before the exemption expires and demonstrates to the satisfaction of the director that the subdivider has made material progress in developing the subdivision, but that sales of parcels in the subdivision have been delayed for reasons outside the control of the subdivider.

C. If an exemption granted under this section expires, any public report issued for the subdivision by the state real estate commissioner pursuant to section 32-2183 expires and the subdivider shall not sell any lots in the subdivision unless both of the following apply:

1. The subdivider files with the state real estate commissioner a new notice of intention to subdivide lands pursuant to section 32-2181 and complies with section 48-6411.

2. The state real estate commissioner issues a new public report for the subdivision pursuant to section 32-2183.

D. Section 45-114, subsections A and B govern administrative proceedings, rehearing or review and judicial review of final decisions of the director under this section.