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<br />Page 2 of 13 <br /> <br />Band and PGA (the Band and PGA collectively, the “Band Parties”) provides that the Band <br />Parties will install an Initial Phase water and sanitary sewer infrastructure to serve the <br />Phase I Development of the Site and will install a Full Build-Out Phase water and sewer <br />infrastructure to serve additional development on the Site if projected additional water and <br />sewer demands reach the “Full Build-Out Threshold” criteria described in the Water/Sewer <br />Agreement; <br /> <br />C. WHEREAS on November 28, 2016 pursuant to a final agency determination <br />by the Assistant Secretary – Indian Affairs for the U.S. Department of the Interior, the <br />United States accepted the conveyance of the Site in trust for the Band; <br /> <br />D. WHEREAS in October of 2019, PGA commenced construction on a Phase <br />II Development of the Site which, when complete, is projected to trigger the Full Build- <br />Out Threshold requiring the Full Build-Out Phase of water and sanitary sewer systems <br />serving the Site; <br /> <br />E. WHEREAS subsequent to entering into the Water/Sewer Agreement, the <br />City determined that certain changes to the design for the Full Build-Out Phase water <br />system described in the Water/Sewer Agreement were desirable to better align with the <br />City’s long-range planning and to bring service to a larger number of customers expected <br />to reside southwest of the Site . The changes to the Full Build-Out Phase water system <br />proposed by the City will significantly increase the scope and cost of the work required by <br />the Agreement. As a result, the City has proposed to assume the sole responsibility for the <br />design and construction of the Full Build-Out Phase for the water system in exchange for <br />a financial contribution from the Band Parties in the amount of $500,000 as the Band <br />Parties equitable share of the increased cost for the modified Full Build-Out Phase water <br />system; <br /> <br />F. WHEREAS as part of the development of the Full Build-Out Phase under <br />the Water/Sewer Agreement, the Band Parties must install a twenty-four to thirty-six inch <br />(24''–36'') sanitary sewer on the Cataldo Property and Star proposes to install a ten inch <br />(10'') water main on the Cataldo Property ; <br /> <br />G. WHEREAS the Band Parties’ twenty-four to thirty-six inch (24''-36'') <br />sanitary sewer and Star’s ten inch (10'') water main will require a permanent municipal <br />utility easement on the Cataldo Property (the “Easement”, as described in Exhibit A <br />attached hereto); <br /> <br />H. WHEREAS requirements for fire protection service for commercial <br />development by Star located on Lot 1 of the Cataldo Property will require connection to an <br />existing twelve inch (12'') water main on the Site through a twelve inch (12'') water main