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HomeMy WebLinkAboutResolution 2006-142 saguaro reserve drainage channel agreement MARANA RESOLUTION NO. 2006-142 RELATING TO DEVELOPMENT; APPROVING AND AUTHORIZING THE MAYOR TO SIGN A DRAINAGE CHANNEL AGREEMENT BETWEEN THE ARIZONA STATE LAND DEPARTMENT, SAGUARO RESERVE LLC, AND THE TOWN OF MARANA. WHEREAS, the developer of Saguaro Springs, Saguaro Reserve LLC, has been negotiating with the Arizona State Land Department (ASLD) and Town staff on the terms of a drainage agreement to allow for the drainage of water from the Saguaro Springs project and its general vicinity across State land to the west and returning to the natural drainage condition at the Bureau of Reclamation property located east of the Central Arizona Project Canal and south of A vra Valley Road; and WHEREAS, the Mayor and Council find that the terms and conditions of the Drainage Agreement are in the best interest ofthe Town. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, that the drainage agreement between the Arizona State Land Department, Saguaro Reserve LLC, and the Town of Marana, attached to and incorporated by this reference in this resolution as Exhibit A is hereby approved, and the Mayor is hereby authorized to execute it for and on behalf of the Town of Marana. BE IT FURTHER RESOLVED that the Town's Manager and staff are hereby directed and authorized to undertake all other and further tasks required or beneficial to carry out the terms, obligations, and objectives of the aforementioned agreement. PASSED AND ADOPTED BY THE MAYOR AND COUNCIL F THE TOWN OF MARANA, ARIZONA, this 5th day of September, 2006. d 7 j/ t::- ~""U",,/~ ~_,OF~ ~ ~. ..\."';.,,''''rr'',,~~~ ::o~~ ~ ~ .... ~ S CORPORATE ~ ~ = i c:x::o = = :: ~SEALE - ~ ~ ~;: ~ ~ ~ s ~ AI ~111"u,,\\!A ~ ~ f:1/Z "\ <!' .~ ~/JI,in\\\~ {00002585.DOC I} FJC/cds 8/29/06 Saguaro Springs Drainage Channel Agreement And Related Exhibits Table of Contents Drainage Agreement Tab A..........Exhibit A: Description of Property, Parcel A Tab B..........Exhibit B: Description of Property, Saguaro Springs Parcel Tab C..........Exhibit C: Description of Temporary Drainage Channel Tab D..........Exhibit D: Description of Property, BOR Tab E..........Exhibit E: CA WCD Letter Tab F..........Exhibit F: US Army Corps of Engineers Letter Tab G.........Exhibit G: Description of Temporary Right of Way across Parcel A Tab H.........Exhibit H: Right of Entry Tab I..........Exhibit I: Stamped Engineer's Letter Tab J..........Exhibit J: Description of Property, Planning Parcel Tab K.........Exhibit K: Special Land Use Permit Tab L.........Exhibit L: Proposed Drainage Section SAGUARO SPRINGS DRAINAGE CHANNEL AGREEMENT THIS DRAINAGE CHANNEL AGREEMENT (the "Drainage Agreement") is entered into as of the _ day of ,2006, by and between the ARIZONA STATE LAND DEPARTMENT, an agency ofthe State of Arizona ("ASLD"), SAGUARO RESERVE LLC, a Delaware limited liability company ("Saguaro Reserve"), and the TOWN OF MARANA, ARIZONA, an Arizona municipal corporation ("Town"). RECITALS This Drainage Agreement is predicated upon the following facts: A. The State of Arizona, as trustee, acting by and through ASLD, is the owner of certain real property located within Town's municipal boundaries, which property is more particularly described on Exhibit A attached hereto ("Parcel A"). B. Saguaro Reserve, as beneficiary of Trust No. 9089, First American Title Insurance Company, a California corporation as trustee only and not otherwise, is the owner of certain real property, located adjacent and to the east of Parcel A, which property is more particularly described on Exhibit B attached hereto ("Saguaro Springs Parcel"). The Saguaro Springs Parcel is presently being prepared for residential development. C. Town has required, in connection with the development of the Saguaro Springs Parcel, that Saguaro Reserve provide for retention, detention, and drainage so as not to increase the historic flows of water from the Saguaro Springs Parcel onto Parcel A or other lands owned by persons other than Saguaro Reserve. Town has agreed that Saguaro Reserve can resolve all the Town's off-site drainage requirements by constructing a temporary drainage channel across Parcel A, which channel is more particularly described on Exhibit C attached hereto ("the Temporary Drainage Channel"), to convey storm water and other waters flowing across or from Parcel A, the Saguaro Springs Parcel, and certain other properties in the region, to a drainage basin on certain property more particularly described on Exhibit D attached hereto owned by the U.S. Bureau of Reclamation ("BOR") and managed by the Central Arizona Water Conservation District ("CA WCD") (the "CAP Parcel"). D. Based on review of the Preliminary Drainage Study prepared by Stantec dated November 14,2005, CA WCD has expressed its support of the design of the Temporary Drainage Channel and its willingness to accept the drainage flows through the Temporary Drainage Channel onto the CAP Parcel provided that such flows will not exceed historic flows onto the CAP Parcel. CA WCD has not agreed to accept increased flows resulting from the future development of Parcel A. (See Exhibit E attached hereto.) E. The United States Army Corps of Engineers has determined that no jurisdictional waters are located within the Temporary Right of Way Parcel (as defined below), Parcel A, the Saguaro Springs Parcel, or immediately surrounding areas so that no Section 404 permit is required to develop the Temporary Drainage Channel, Parcel A or the Saguaro Springs Parcel. (See Exhibit F attached hereto.) Drainage Agreement 08/14 Page 1 of 17 F. In order to obtain the requisite legal authority to construct, operate, maintain, and repair the Temporary Drainage Channel, Saguaro Reserve has applied to ASLD for a temporary (ten years in duration) right of way (the "Temporary Right of Way") across Parcel A, which location is more particularly described on Exhibit G attached hereto ("the Temporary Right of Way Parcel"). Pursuant to applicable law, ASLD may grant rights of way often years or less without public auction. Upon completion of construction of the Temporary Drainage Channel, Saguaro Reserve agrees to assign its interest in the Temporary Right of Way to Town and Town agrees to accept the assignment. G. To provide Saguaro Reserve the requisite legal authority to enter immediately upon the Temporary Right of Way Parcel in order to construct, operate, maintain, and repair the Temporary Drainage Channel pending the issuance of the Temporary Right of Way, and based upon the previous approval of plans and specifications by Town and ASLD, ASLD shall issue upon execution of this Drainage Agreement the right of entry attached hereto as Exhibit H ("the Right of Entry"). H. Engineering studies conducted by Stantec at Saguaro Reserve's expense have concluded that the design and construction of the Temporary Drainage Channel will provide sufficient capacity to remove from the 100 year floodplain the approximately 300 acres of Parcel A to ~he north ofthe Temporary Drainage Channel that are presently within the 100 year floodplain by reducing existing, periodic flooding that occurs when sheet flows exceed the capacity of the existing natural channel. Saguaro Reserve has provided to ASLD a stamped engineer's letter, attached hereto as Exhibit I, ratifying this conclusion to facilitate the removal ofthe effected land from the 100 year floodplain through the Conditional Letter of Map Revision/Letter of Map Revision process, by any purchaser of all or part of Parcel A, its successors and assigns ("Parcel A Purchaser"). 1. The Parties acknowledge that ASLD has not yet had the opportunity to perform the engineering or planning necessary to determine whether the proposed Temporary Drainage Channel will benefit or harm Parcel A. To expedite approval and construction of the Temporary Drainage Channel and development of the Saguaro Springs Parcel, Saguaro Reserve agrees to compensate ASLD for any diminution in the value of Parcel A caused by the Temporary Drainage Channel, as determined by an appraisal following completion of the future Planning (as defined below). J. For development of Parcel A, Town may require the construction and dedication to Town, on the terms and conditions established by ASLD and Town, of a permanent drainage channel which will provide for detention and/or retention and drainage so as not to increase the rate of historic, pre-development flows of water from Parcel A onto lands owned by persons other than Parcel A Purchaser following development of Parcel A (the "Permanent Drainage Channel"). The Temporary Drainage Channel mayor may not require further improvements to meet the design and construction requirements of the Permanent Drainage Channel and the Permanent Drainage Channel mayor may not be located on the Temporary Right of Way Parcel. Drainage Agreement 08/14 Page 2 of 17 K. The Parties acknowledge that in order to determine the appropriate location and design of any Permanent Drainage Channel, planning and engineering studies must be completed on a larger parcel of land owned by ASLD that includes, is adjacent to, and surrounds Parcel A on the north, west, and south, as more particularly described in Exhibit J attached hereto ("the Planning Parcel"). L. Saguaro Reserve has submitted to ASLD a planning permit application to conduct the planning on the Planning Parcel which includes, but is not limited to, determining any harm caused by the Temporary Drainage Channel to Parcel A and the location of any Permanent Drainage Channel (the "Planning"), but to satisfy the terms of this Drainage Agreement the Planning may also be completed by ASLD or an outside consultant. M. Saguaro Reserve agrees that it shall remain responsible to ASLD to ensure that flows of water from the Saguaro Springs Parcel onto the Planning Parcel do not exceed historic flows, including in the event that the Temporary Drainage Channel fails sufficiently to limit the flows from the Saguaro Springs Parcel N. Any Permanent Drainage Channel required by Town need only be constructed after both the completion ofthe Planning and the occurrence of one of the following events: (1) the Temporary Drainage Channel fails to limit the flows of water from the Saguaro Springs Parcel to historic flows or otherwise fails to meet federal, state, or local requirements; (2) ASLD sells at public auction all or a portion of Parcel A which encompasses the location, as determined by the Planning, of the most appropriate location for the Permanent Drainage Channel (the "Permanent Drainage Channel Parcel"); or (3) an interested party applies for and ASLD grants a perpetual drainage easement over the Permanent Drainage Channel Parcel. NOW, THEREFORE, in consideration of the covenants contained herein, the Parties agree as follows: AGREEMENT 1. Recitals. The Parties incorporate the above recitals by reference, represent that the above recitals are true and correct, and acknowledge that the Parties are entitled to rely thereon. 2. Authority. The Parties represent to each other that they are duly authorized by law to enter into this Drainage Agreement, and that the persons whose names are affixed below are duly authorized to execute this Drainage Agreement on behalf of the named Parties. 3. Temporary Drainage Channel. 3.1. Grant of Temporary Right of Way. Saguaro Reserve has applied to ASLD for the Temporary Right of Way, ten years in duration, over the Temporary Right of Way Parcel, and shall pay the estimated cost of appraisal and a deposit equal to the estimated full cost ofthe ten-year Right of Way. Subject to applicable ASLD regulations, ASLD shall Drainage Agreement 08/14 Page 3 of 17 complete the appraisal, conduct any necessary surveys, establish all necessary conditions for the Temporary Right of Way, and then grant the Temporary Right of Way to Saguaro Reserve for a sum equal to the full ten-year cost ofthe Temporary Right of Way. 3.2. Issuance of Right of Entry. Based upon Saguaro Reserve's compliance with ASLD procedures, the previous approval of plans and specifications by Town and ASLD, and receipt by ASLD from Saguaro Reserve of one thousand two hundred dollars ($1,200.00) plus an amount equal to the estimated full ten-year cost to obtain the Temporary Right of Way, ASLD shall issue upon execution of this :Drainage Agreement a Right of Entry authorizing Saguaro Reserve to enter upon the Temporary Right of Way Parcel prior to the issuance of the Temporary Right of Way in order to construct, operate, maintain, and repair the Temporary Drainage Channel according to the plans and specifications approved by Town and ASLD, as summarized in Exhibit D. 3.3. Term of Right of Entry. Pursuant to ASLD procedures, the Right of Entry shall have an initial duration of two years from the date of issuance. In the event that the granting of the Temporary Right of Way has not yet occurred as of the expiration of the Right of Entry, ASLD shall, pursuant to applicable ASLD regulations, extend the term of the Right of Entry for two years. The Right of Entry, including permitted extensions, shall terminate when one of the following occurs: (i) ASLD issues the Temporary Right of Way; (ii) ASLD sells pursuant to public auction all or a portion of Parcel A which includes the Temporary Right of Way Parcel and issues a certificate of purchase or patent thereon; or (iii) ASLD offers the Temporary Right of Way to Saguaro Reserve, according to the terms stated herein and valid according to ASLD regulations, and Saguaro Reserve fails to purchase the Temporary Right of Way. 3.4. Construction of Temporary Drainage Channel. Following issuance of the Right of Entry, Saguaro Reserve shall construct the Temporary Drainage Channel within the Temporary Right of Way Parcel at Saguaro Reserve's sole cost and expense. 3.5. Town Approval. Town consents to and approves the construction of the Temporary Drainage Channel according to the plans and specifications summarized in Exhibit D. 3.6. Modification of Plans and Specifications. Any modification of the plans and specifications summarized in Exhibit D must be approved by Town. ASLD must also approve, and has final approval of, any modified plans and specifications, based upon local, state, and federal design standards. 3.7. Special Land Use Permit. Saguaro Reserve has applied to ASLD for a Special Land Use Permit so that Saguaro Reserve may stockpile the dirt displaced from the construction of the Temporary Drainage Channel (the "Dirt Stockpile") on a portion of Parcel A adjacent and to the south of the Temporary Right of Way Parcel. ASLD is processing and shall issue, if permitted by applicable law, a Special Land Use Permit in the form attached hereto as Exhibit K (the "Special Land Use Permit"). Drainage Agreement 08/14 Page 4 of 17 3.7.1. Saguaro Reserve acknowledges that it is not authorized by ASLD to remove, use, sell, or otherwise dispose of any fill dirt that is accumulated by reason of Saguaro Reserve's excavation ofthe Temporary Drainage Channel. 3.7.2. The Special Land Use Permit shall terminate no later than the sale at public auction by ASLD of the portion of Parcel A containing the Dirt Stockpile. ASLD shall have the right to terminate the Special Land Use Permit as stated in the Special Land Use Permit. Prior to the termination ofthe Special Land Use Permit, ASLD, with input from Saguaro Reserve, shall determine the permanent disposition of the Dirt Stockpile. The Parties acknowledge ASLD's present intention either to sell the Dirt Stockpile as part of the public auction of Parcel A or to sell the Dirt Stockpile separately as a natural product of the trust land. ASLD reserves its right, however, to require Saguaro Reserve to spread the Dirt Stockpile upon the Planning Parcel should the sale of Parcel A or the Dirt Stockpile not be economically feasible upon termination of the Special Land Use Permit. 3.7.3. Saguaro Reserve shall protect, defend, indemnifY, and hold harmless ASLD from and against all loss, damage, liability, costs, charges, and expenses, including attorneys' fees and court costs, incident to, arising out of, or resulting in any way from the erection, maintenance, or existence of the Dirt Stockpile. 3.8. Assignment of Temporary Right of Way. Upon completion of construction of the Temporary Drainage Channel to Town's standards, Saguaro Reserve agrees to assign its interest in the Temporary Right of Way to Town, pursuant to ASLD regulations for assigning rights of way, and Town agrees to accept the assignment. Should Saguaro Reserve complete the Temporary Drainage Channel before ASLD grants the Temporary Right of Way, then Saguaro Reserve will assign its Temporary Right of Way application to Town and Town shall apply to ASLD for a Right of Entry in the form granted to Saguaro Reserve (see Exhibit H). Should the ten-year duration of the Temporary Right of Way expire prior to the completion and dedication ofthe Permanent Drainage Channel and/or dedication of the perpetual drainage easement as discussed in Section 5.5 below, then Town may apply for a renewal of the Temporary Right of Way pursuant to ASLD regulations. 3.9. Operation, Maintenance, and Repair of the Temporary Drainage Channel. Following assignment as described in Section 3.8 above, Town hereby agrees to assume full responsibility to maintain, operate, and repair the Temporary Drainage Channel according to the plans and specifications approved by Town and ASLD. In performing these functions, Town shall remain subject to the conditions of the Temporary Right of Way, including all indemnity and insurance provisions. Saguaro Reserve shall indemnifY and hold ASLD and Town harmless from and against any and all claims by CA WCD, BOR, or other persons or entities having an interest in the CAP Parcel, arising from or in any way relating to the conveyance of an amount of water that exceeds the CAP Basin's capacity through the Temporary Drainage Channel to the CAP Parcel. The Parties expressly acknowledge that Drainage Agreement 08/14 Page 5 of 17 ASLD has no responsibilities or obligations regarding the operation, maintenance, or repair of the Temporary Drainage Channel. 4. Planning. 4.1. Application for Planning Permit. Saguaro Reserve has applied to ASLD for a planning permit to develop plans for the development of the Planning Parcel. 4.2. Planning to Establish Benefit or Detriment to Parcel A. The Planning, which may be conducted by Saguaro Reserve, ASLD, or an outside consultant, will in part determine whether the Temporary Drainage Channel diminishes the value of Parcel A, using reasonable and customary engineering and development standards. The Planning will not assume any disproportionate or unusual development constraints on Parcel A to the detriment of ASLD. 4.3. Harm to Parcel A. If the Planning determines that the Temporary Drainage Channel diminishes the value of Parcel A, then Saguaro Reserve shall compensate ASLD for the diminution in value. The diminution in value shall be determined by an appraiser mutually selected by ASLD and Saguaro Reserve, and the appraiser shall value Parcel A at its highest and best use. If ASLD and Saguaro Reserve cannot mutually agree upon an appraiser, then each shall select one appraiser to a panel. The selected appraisers shall themselves select a third appraiser to serve on the panel as chairperson. The agreement as to the diminution of value by two of the three appraisers on the panel shall be conclusive and binding on both ASLD and Saguaro Reserve, subject to ASLD's requirement that the appraised diminution of value be approved by the State Land Department Board of Appeals and State Land Commissioner. 4.4. Planning to Recommend Location of Permanent Drainage Channel. The Planning shall also review alternatives and make a recommendation as to the best location of the Permanent Drainage Channel, subject, but not limited, to the following planning conditions. 4.4.1. BOR and/or CAP/CA WCD will accept only existing cubic feet per second flows from the Planning Parcel onto the CAP Parcel. (Should BOR and/or CAP/CA WCD agree to allow greater flows in the future, then the planning conditions may be adjusted accordingly.) 4.4.2. The Permanent Drainage Channel is sized to accommodate only the existing cubic feet per second flows from property adjacent to the Permanent Drainage Channel onto the CAP Parcel. 4.4.3. To insure flow rates are not increased, detention may be required on the Planning Parcel. 4.4.4. Saguaro Reserve must obtain from CAP/CA WCD, in a form acceptable to ASLD, an assurance that CAP/CA WCD will accept the flows from the Planning Parcel as reflected in the Planning. Saguaro Reserve shall also notify BOR of the flows from the Planning Parcel as reflected in the Planning, Drainage Agreement 08/14 Page 6 of 17 and provide BOR a reasonable opportunity to object. (As of the date of this Drainage Agreement, the Parties understand that BOR makes no management decisions regarding the flows onto the CAP Parcel.) 4.4.5. The Planning shaIl verify that the Permanent Drainage Channel will be capable of receiving all flows generated from the Planning Parcel subsequent to the development of all of Parcel A, and the portion of Parcel A that will be removed from the floodplain as a result of the Permanent Drainage Channel. S. Permanent Drainage Channel. 5.1. Determining the Location ofthe Permanent Drainage Channel. After completion of the Planning, Town shall determine whether it shall require construction ofa Permanent Drainage Channel. If a Permanent Drainage Channel is required, ASLD and Town shall use their reasonable discretion to determine the best location for the Permanent Drainage Channel, after taking into consideration the alternatives developed and recommendation made in the Planning. When determining the best location of the Permanent Drainage Channel, ASLD and Town will balance costs and benefits as would any reasonable and prudent land developer, and will not require any extraordinary or "gold plated" engineering solutions at either Saguaro Reserve's or Parcel A Purchaser's expense. ASLD and Town must agree to and Town must approve the final location of the Permanent Drainage Channel Parcel according to applicable law, which location mayor may not be identical to the Temporary Right of Way Parcel. 5.2. Design and Construction of Permanent Drainage Channel. Any required Permanent Drainage Channel will be constructed in accordance with the proposed design and specifications stated on Exhibit L attached hereto, unless the proposed design and specifications fail to adhere to the applicable Town standards and specifications in effect at the time the party constructing the Permanent Drainage Channel applies to Town for a permit to construct those improvements or unless otherwise agreed to by the Parties. Town hereby agrees not to grant final approval of the design and specifications of the Permanent Drainage Channel unless CAP/CA WCD agrees that the proposed design and specifications are acceptable and BOR is notified of and given reasonable opportunity to object to the proposed design and specifications. 5.3. Timing of Construction of Permanent Drainage Channel. Any Permanent Drainage Channel required by Town need only be constructed after both the completion of the Planning and the occurrence of one of the following events: (1) the Temporary Drainage Channel fails to limit the flows of water from the Saguaro Springs Parcel to historic flows or otherwise fails to meet federal, state, or local requirements, in which case Saguaro Reserve shall remain responsible to ensure that flows of water from the Saguaro Springs Parcel do not exceed historic flows until construction of the Permanent Drainage Channel is completed; (2) ASLD sells at public auction all or a portion of Parcel A which encompasses the location, as determined by the Planning, of the Permanent Drainage Channel Drainage Agreement 08/14 Page 7 of 17 Parcel; or (3) an interested party applies for and ASLD grants a perpetual drainage easement over the Permanent Drainage Channel Parcel. 5.4. Sale of Initial Parcel A Sale Parcel. Should Town require a Permanent Drainage Channel, at the time of sale ofa portion of Parcel A including the Permanent Drainage Channel Parcel (the "Initial Parcel A Sale Parcel"), ASLD shall condition the sale of the Initial Parcel A Sale Parcel on: (i) the Parcel A Purchaser's construction and completion of the Permanent Drainage Channel to Town's standards within two years after the auction of the Initial Parcel A Sale Parcel or, (ii) if construction of the Permanent Drainage Channel has already been completed, the Parcel A Purchaser's reimbursement to the entity which completed the construction for the expenditures to construct the Permanent Drainage Channel, exclusive of any expenditures spent to construct the Temporary Drainage Channel. If ASLD holds a public auction to sell the Initial Parcel A Sale Parcel prior to the granting of a perpetual drainage easement pursuant to Section 5.5 below, then ASLD shall condition the sale upon the Parcel A Purchaser's granting to Town a renewal of the Temporary Right of Way until a perpetual drainage easement pursuant to Section 5.5 below is granted. If ASLD sells the Initial Parcel A Sale Parcel and issues a certificate of purchase or patent thereon prior to the date ten years from the issuance of the Temporary Right of Way pursuant to Section 3.1 above, then ASLD shall refund to Saguaro Reserve the pro rata amount of the unused duration of the Right of Way. 5.5. Dedication to and Assumption by Town. 5.5.1. Upon completion of the Permanent Drainage Channel to Town's standards, the entity which constructed the Permanent Drainage Channel shall assign and/or dedicate to Town a perpetual drainage easement over the Permanent Drainage Channel Parcel, shall dedicate to Town the Permanent Drainage Channel, and shall assign any remaining obligations under this Drainage Agreement to Town, which shall accept the assignment and dedication and assume those obligations. Thereafter Town shall be responsible to perform all obligations of the owner of Permanent Drainage Channel, including but not limited to its maintenance, operation, and repair. 5.5.2. If, as provided in Section 5.1 above, Town determines that construction ofa Permanent Drainage Channel is not required and that the Temporary Drainage Channel suffices to meet Town's requirements, then Town shall apply for a perpetual drainage easement over the Temporary Drainage Channel Parcel and shall retain its obligation to maintain, operate, and repair the Temporary Drainage Channel. 5.5.3. Notwithstanding any other applicable Town ordinance or regulation, in any rezoning action or development approval process any perpetual drainage easement granted pursuant to this Section shall qualify to satisfy Town's land use designations and requirements for "open space" and/or for "mitigation land" requirements, to the extent permitted by the relevant regulating agency. Drainage Agreement 08/14 Page 8 of 17 5.6. Satisfaction of Off-Site Drainage Requirements. Construction and dedication of the Permanent Drainage Channel pursuant to a validly issued permit by Town or Town's determination that the Temporary Drainage Channel suffices to meet Town's requirements and the issuance of a perpetual drainage easement in favor of Town under Section 5.5 above will satisfy all Town requirements for off-site drainage or regional drainage in connection with the development of Parcel A. ASLD, Saguaro Reserve, and any future developers of Parcel A, their successors and assigns shall then have no liability or responsibility for the construction of additional, replacement, or different off-site drainage improvements in connection with the development of Parcel A. 5.7. Reserved Rights. ASLD, for itself, its successors and assigns hereby reserves and shall retain the right to use and dispose of Parcel A in any manner, and for any purpose, not inconsistent with the Right of Entry, Temporary Right of Way, any perpetual drainage easement, and this Drainage Agreement. Such rights specifically include, but are not limited to, the right to use, occupy, and cross the Temporary Right of Way, the right to re- landscape the Temporary Right of Way, the right to make improvements and install signage and monuments within the Temporary Right of Way, and the right to paint or otherwise embellish any of the Temporary or Permanent Drainage Channels to harmonize its appearance with other development on Parcel A, subject to obtaining any required Town approvals or permits. The construction and maintenance of, and liability for, such landscaping and improvements shall remain the responsibility of ASLD, its successors and assigns, and shall not be any part of the obligations of Town undertaken pursuant to this Drainage Agreement or otherwise. 5.8. Restoration. Saguaro Reserve agrees that if it is determined pursuant to Section 5.1 above that the Permanent Drainage Channel shall be located somewhere other than on the Temporary Right of Way Parcel, then Saguaro Reserve shall restore the entire Temporary Right of Way Parcel to the condition as it existed on the date of this Drainage Agreement. If only a part of the Temporary Right of Way Parcel is not used for the Permanent Drainage Channel, then Saguaro Reserve shall restore that part of the Temporary Right of Way Parcel to the condition as it existed on the date of this Drainage Agreement. ASLD may agree to accept from Saguaro Reserve payment of the cost of restoration in lieu of physical restoration, which shall satisfy any claim by ASLD for diminution of value and preclude the need to conduct any appraisal and valuation process, as set forth in Section 4.3, above. 6. Financial Assurance. 6.1. Amount of Assurance. Saguaro Reserve shall provide or cause to be provided to ASLD financial assurance, in the form of bond or other security acceptable to ASLD, in an amount equal to: 6.1.]. upon issuance of the Special Land Use Permit, twenty-five percent (25%) ofthe estimated cost to spread the Dirt Stockpile from Parcel A onto the Planning Parcel, as may be required under Section 3.7.2 above should Drainage Agreement 08/14 Page 9 of 17 other means to dispose of the Dirt Stockpile prove not to be economically feasible, plus 6.1.2. upon issuance of the Right of Entry, one hundred twenty-five percent (125%) of the estimated cost to construct the Temporary Drainage Channel, as security to ASLD to ensure completion of the Temporary Drainage Channel andlor payment to ASLD in the event that the Planning determines according to the procedure described in Section 4.3 above that the Temporary Drainage Channel diminishes the value of Parcel A. Saguaro Reserve shall develop the estimated costs set forth above, subject to approval by ASLD. 6.2. Release of Assurance Under Section 6.1.1. ASLD shall release Saguaro Reserve from the obligation to provide financial assurance in an amount equivalent to that provided under Section 6. 1.1 upon disposition of the Dirt Stockpile in a manner acceptable to ASLD. 6.3. Release of Assurance Under Section 6.1.2. In conjunction with the financial assurance provided to ASLD under Section 6. I .2, above, Saguaro Reserve shall provide to ASLD, subject to ASLD's approval, benchmarks tying estimated cost of construction to phases of completed construction of the Temporary Drainage Channel. Upon ASLD's verification of the completion of each benchmark, ASLD shall release Saguaro Reserve from the obligation to provide financial assurance in an amount equal to fifty percent (50%) of the amount of the estimated cost tied to the completed construction. ASLD shall release Saguaro Reserve from the obligation to provide financial assurance in an amount equal to fifty percent (50%) of the total amount assured under Section 6.1.2 upon completion of Planning showing that the Temporary Drainage Channel does not diminish the value of Parcel A, upon payment by Saguaro Reserve to ASLD the amount by which the Temporary Drainage Channel diminishes the value of Parcel A as determined pursuant to Section 4.3; or (c) upon payment by Saguaro Reserve to ASLD the estimated cost of restoration of the Temporary Drainage Channel in lieu of physical restoration, pursuant to the provisions of Section 5.8, above. 7. General Provisions. 7.1. Notices. All notices, filings, consents, approvals, and other communications provided for herein or given in connection herewith ("Notices") shall be valid and effective if given, filed, made, delivered or served in a writing and delivered personally or sent by regular mail and by registered or certified United States Postal Service Mail, return receipt requested, postage prepaid to: If to Town: Town Manager Town of Maran a 11555 West Civic Center Drive Marana, Arizona 85653 Drainage Agreement 08/14 Page 10 of 17 With a copy to: Town Attorney Town of Maran a 11555 West Civic Center Drive Marana, Arizona 85653 If to ASLD: Arizona State Land Department 1616 W. Adams Phoenix, Arizona 85007 Attn: State Land Commissioner With a copy to: Office of the Attorney General Natural Resources Section 1275 W. Washington, Phoenix, Arizona 85007-2926 Attn: Chief Counsel If to Saguaro Reserve: Saguaro Reserve LLC Attn: Douglas Hare 9395 W. Lambert Lane Marana, AZ 85653 With a copy to: Empire Land LLC Attn: Jon Curtis 3536 Concours S1. Ste 300 Ontario, CA 91764 or to such other addresses as such Parties may from time to time designate in writing and deliver in a like manner. Any such change of address notice shall be sent to the Parties at their current addresses as stated above or as modified hereafter, and shall be effective ten (10) days after such notice is given. Notices given by mail, in the manner set forth above, shall be deemed delivered seventy-two (72) hours following deposit, postage prepaid, with the U.S. Postal Service. 7.2. Waiver. No delay in exercising any right or remedy shall constitute a waiver thereof, and no waiver by any Party ofthe breach of any covenant or condition of this Drainage Agreement shall be construed as a waiver of any preceding or succeeding breach of the same or any other covenant or condition of this Drainage Agreement. No waiver shall be effective unless it is in writing and is signed by the Party asserted to have granted such waiver. 7.3. Enforcement. 7.3.1. Default. If any Party breaches any provision of this Drainage Agreement, the non-defaulting Parties shall be entitled to all remedies available at both law and in equity, including specific performance. Drainage Agreement 08/14 Page 11 of17 7.3.2. Governing Law. This Drainage Agreement is entered into in Arizona and shall be construed and interpreted under the laws of the State of Arizona. 7.3.3. Jurisdiction and Venue. The Parties agree that venue for any action commenced in connection with this Drainage Agreement shall be proper only in a court of competent jurisdiction located in Maricopa County, Arizona, and the Parties hereby waive any right to object to such venue. 7.3.4. Arbitration. Pursuant to A.R.S. 9 12-1518(B) the Parties agree to utilize any arbitration that is required under applicable court rules. 7.3.5. Costs and Attorney Fees. Each Party shall bear its own costs and attorneys' fees, if any, incurred in the negotiation, drafting, and implementation of this Drainage Agreement. Ifany Party resorts to legal action as the result of a breach or default under this Drainage Agreement, the prevailing Party shall be entitled to recover reasonable attorneys' fees in addition to the amount of judgment, costs and other expenses as determined by the court. In the event a Party is represented by the Arizona Attorney General's Office or other salaried or staff attorney, that Party's reasonable attorneys' fees shall be calculated based upon a rate equal to the reasonable hourly rate for comparable work and attorney experience in the private sector in Maricopa County, Arizona. 7.4. Construction. Captions and paragraph headings used in this Drainage Agreement are for convenience only, are not a part ofthis Drainage Agreement, shall not be deemed to limit or alter any provisions of this Drainage Agreement, and shall not be deemed relevant in construing the Drainage Agreement. 7.5. Entire Agreement. This Drainage Agreement, together with all Exhibits attached hereto (which are incorporated herein by this reference), constitutes the entire agreement between the Parties pertaining to the subject matter hereof, and shall not be enlarged or amended except in the manner provided in Section 8.6. All prior and contemporaneous agreements, representations and understandings ofthe Parties, oral or written, other than those specifically incorporated herein by reference, are superseded by and merged in this Drainage Agreement. 7.6. Binding Effect; Amendments. This Drainage Agreement shall be binding on and inure to the benefit of the successors and permitted assigns of the Parties. This Drainage Agreement may not be assigned, in whole or in part, without the prior written approval of ASLD. This Drainage Agreement may only be modified by a written agreement executed by all Parties whose interests are materially affected by the modification. 7.7. Severability. If any provision of this Drainage Agreement is declared void or unenforceable, the provisions shall be severed from this Drainage Agreement, which shall otherwise remain in full force and effect, provided that the overall intent of the Parties is not materially vitiated by such severance. Drainage Agreement 08/14 Page 120f17 7.8. Further Acts. Each Party agrees in good faith to execute such further or additional instruments and documents and to take such further acts as may be necessary or appropriate to carry out fully the intent and purpose of this Drainage Agreement. 7.9. Cancellation. ASLD may terminate this Drainage Agreement pursuant to A.R.S. ~ 38-511 or any successor statute within three years after its effective date if any person significantly involved in initiating, securing, drafting or creating this Drainage Agreement is an employee or consultant to any other Party to the Drainage Agreement. 7.10. Inspection and Audit,< Pursuant to A.R.S. ~~ 35-214, 35-215 and 41- 2548, and any successor statutes, all books, reports, files, accounts data and other records relating to this Drainage Agreement shall be subject at all reasonable times to inspection and audit by any Party for a period of five (5) years after termination ofthis Drainage Agreement. Such records shall be produced at the Auditor General's Office or at the requesting Party's principal office within a reasonable time after a request for inspection and/or audit is made. 7.11. Equal Opportunity/Non-DiscriminatioD~ The Parties agree to comply with applicable federal or state laws relating to equal employment opportunity and non- discrimination, including the Americans with Disabilities Act. 7.12. Governmental Powers. Except as explicitly provided herein, nothing in this Drainage Agreement shall be interpreted or applied to require, restrict, or limit, in any manner whatsoever, any legislative, discretionary or other approvals by Town or ASLD related to properties described herein. Every payment obligation of ASLD and of Town under this Drainage Agreement is conditioned upon the availability of funds appropriated or allocated for the payment of such obligation. Nothing in this Drainage Agreement shall require any Party to act contrary to any local, state or federal statute, rule, or regulation, including, but not limited to, the Anti-Deficiency Act or the state or tribal equivalent. 7.13. Time of Essence; Computation. Time is of the essence for the performance of all conditions and obligations under this Drainage Agreement. In computing any period of time under this Drainage Agreement, the date of the act or event from which the designated period of time begins to run shall not be included. The last day of the period so completed shall be included unless it is a Saturday, Sunday or legal holiday, in which event the period shall run until the end of the next day which is not a Saturday, Sunday or legal holiday. The time for performance of any obligation or taking any action under this Drainage Agreement shall be deemed to expire at 5:00 p.m. (Phoenix time) on the last day of the applicable time period provided herein. 7.14. Force Majeure. Any prevention, delay or stoppage due to strikes, lockouts, labor disputes, Acts of God, inability to obtain labor or materials or reasonable substitutes therefore, governmental restrictions, governmental controls, governmental inaction when necessary applications or filings have been made and the governmental authority is required to act, judicial orders, enemy or hostile governmental action, civil commotion, fire or other casualty, and other causes beyond the reasonable control of an obligated party shall excuse the performance by such party for a period equal to any such prevention, delay or stoppage; Drainage Agreement 08/14 Page 13 of17 provided, however, that should any such delay exceed thirty (30) consecutive days in duration, such Party shall notify the other Parties in writing and keep the other Parties reasonably informed as to the progress of such delay's resolution. It is expressly agreed that any construction time limit provision contained in this Drainage Agreement or otherwise shall be extended for the same period oftime lost by the causes hereinabove set forth. 7.15. No Lien on State Land. All Parties acknowledge that this Drainage Agreement shall not be recorded and that no obligation of ASLD or of any of ASLD's successors or assigns pursuant to this Drainage Agreement shall result in the establishment of a lien on or the granting of any interest in any State Trust Land, including but not limited to Parcel A. 7.16. Reports, Information and Data. All Parties shall be entitled to receive copies of any plans, reports, information, data, computer data elements and software prepared by the other Parties or their respective contractors or agents in connection with the Right of Entry, the Right of Way, and/or the construction of the Temporary Drainage Channel, the Permanent Drainage Channel, or other improvements to be constructed pursuant to this Drainage Agreement. Subject to applicable State and Federal laws and regulations, the Parties shall have full and complete rights to reproduce, duplicate, disclose and otherwise use all such information. In doing so, each party shaH give credit for the contribution of the others. 7.17. Exhibits and References. The following Exhibits are attached hereto and incorporated by this reference as though fully set forth herein. EXHmIT DESCRIPTION Exhibit A Parcel A Legal Description Exhibit B Saguaro Springs Parcel Legal Description Exhibit C Temporary Drainage Channel Specifications and Location Exhibit D CAP Parcel Legal Description Exhibit E Letter from Central Arizona Project Exhibit F Letter from United States Army Corps of Engineers Exhibit G Temporary Right of Way Parcel Legal Description (Cross Hatched Area) Exhibit H Right of Entry Exhibit I Stamped Engineer's Letter regarding removal from 100 year floodplain Exhibit J Planning Parcel Legal Description Exhibit K Special Land Use Permit Exhibit L Permanent Drainage Channel Proposed Design and Specifications 7.18. Counterparts. This Drainage Agreement may be executed in counterparts, each of which shaH be deemed an original but all of which together shaII constitute one and the same instrument. Drainage Agreement 08/14 Page 140f17 7.19. Signature Authority. By signing below, the signer certifies the authority to enter into this Drainage Agreement and has read the foregoing and agrees to accept the provisions herein. IN WITNESS WHEREOF, the Parties have executed the foregoing Drainage Agreement as of the day and year first above written. ASLD: STATE OF ARlZONA) ) ss. County of Maricopa ) On q- 13 2006, before me, personally appeared f\'1QrIC. Wfnll.Umtl-lJv , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s)or the entity on behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. TlI.h'~ 1<. ~U~ Notary Public My commission expires: FIC/Al SEAL MICHELE R. MUENCH NOTARY PUBLIC. State of Arizona PIMA COUNTY My Comm. Expires June 22. 2009 Drainage Agreement 08/]4 Page 15 of 17 TOWN: TOWN OF MARANA, ARIZONA, a municipal corporation &f/b;~ \\1\ a.. ~ 0 't' By: Its: County of Pima On ~ p'~\'.- \.A.f' S 2006, before me, personally appeared ~('}.. H tN',.~personal1y known to me (or provea to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in hislher/their authorized capacity(ies), and that by hislher/their signature(s) on the instrument the person(s)or the entity on behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. ~~~o.~ Notary Public My commission expires: ~br~f~\ ~J~ OFFICIAL SEAL TIMOTHY A MATTIX NOTARY PUBLIC PIMA COUNTY, ARIZONA MY COMMISSION EXPIHES FEBRUARY 22, 2009 Drainage Agreement 08/14 Page 16 of 17 -'--..--------..._--,"",""_....""""""',.,~-~,.=.,"~,~~'"~,>>....,,--,-~._.,'- SAGUARO RESERVE: Saguaro Reserve LLC, a Delaware Limited Liability Company By: Empire Land, LLC, its manager By Empire Partners " its manager (1 ' I STATEOF li..A~,\ . ;;:;:v) ss.a. . 11 \ County of ~) IVJ~ O~k <13, 2006, before me, pmooally 2PP"''''9i..- /! j~ P!JSf'n' 1\, ,nown to me (or pray to me on the basis of satisfactory evidence) to b~~on(s) whose n~e(sUs/are subscribed to the within instrument and acknowledged to me that ~/she/they executed the same in Mlher/their authorized capaci1;J'.(ies), and that by ~lher/their si~nature(s) on the instrument the person(s)or the entity on behalf of which the p~n(s) acted, executed the instrument. By: :c.u WITNESS my hand and official seal. /'/ /' l ~,/0 ~~/~ Notary Public , . i /'f' / (/ 1/, ' My commission expires: ~//c;-- 0 <6 J~ ~ - ~:='~:~6~ J i ~ Notary PublIc . CaHfornlO ~ t" San......-eo.nv = _ ... __ ~:o:n:...~~J:2 Drainage Agreement 08/14 Page ] 7 of 17 Exhibit A * [;l "" a: ';1 i .. o o Ol 1III11..1l1Al11" (gill...." t:JJlI.x-. c.J",rc IIIJIMW t:I1 KnIt il.I'I~ -- II ;, .; ~! IIi I. :t ~ ~i ", ~~ ~~ ~ ~ ~:z..{ ;rl ! ;:1 ~ I" III ~= =" aE! tD II ~ 1 I:=~ :~ hi! Ii .. fO'! I" . . ~ "I .',; . "'I's ;- d" ~ ail ~II il ~i Iii; ~ I. ~SI ii I~ ItlP I~ i!. ~~ I Ii I!.I qr. Ilh" I' r~~ I i ~!: it i I! ;~b III m il I :. lar~ 11= I'll! -I i Ii 1"1- I' . Ii dn ai 1";;1 ! Ii · i!~1 ., ~;, R, I · ! rl. U . h rii~. . ~r ~ ~ i .~i;(!;" ~ ~ nuli~ Ii h Zo-j . << . . . -i . I. ~ . ~~ ~ i ~ if i I i ~i : : : il ! t g ~, I , ~ II II '" " . << . I - --' ,'.lIhl!fU.s= ;11:::lils;!iil t- ~~ ~~ ~ ~ i ~ l t i ~ i!Et@ . 0 Is..~ '1:l' H~h~ I 1.1 ~ h ~iI ~~ ~ll ~.. ~: .. .. " < c. .. o o Ol ~ ~~ ..i!l ~~ ~ II!; ~i!l ~~ ~~ ~ II! ~'I rw' IS ....11 . .! -~ II I :5 '. I ~i Ii i ~ ~I :1 I i!h ~ II ". ..1 r Ii II i!1I i' I .; ri I!U ! db · Ii nil ~ I il ~ · I ~ilH ~ t; ~ ~ Vi Q; :::i -.; ~ ... ~ ~~ ", ~1 ~~ ~ lnnnqn~nk G.~.,.~.CGii;lii ... .. .. ... ... ... ... .. .. ... ... . . .. nnnnnnn ~ S!~!S!S!9!5!S! ~l........'..'.' ~nn~~l!l!ltl!ql! ......=~lG5~~5 ......... - -...... ......... nnnnnnn ~:'':l:~:e~~~!SSS~ Exhibit B DESCRIPTION OF SAGUARO SPRINGS TO THE TOWN OF MARANA Stantec Consulting Ine. 201 North Bonita Avenue Suite 101 TUGOn AI. 85745.2999 Tel: (520) 750-7474 Fax: (520) 750-7470 stantec.com Stantec All that portion of Blocks 1 thru 10 and A thru D along with Lots 1-9 and A and B, as shown on the Block Plat recorded in Book 58 of Maps and Plats, Page 23 of Pima County Arizona. Said parcel contains 765.69 acres, more or less. Together with: All that parcel as described in Docket 12208, Page 1961, Pima County Records together with that portion of Twin Peaks Road lying South of and contiguous with said parcel, being a portion of Section 13, Township 12 South, Range 11 East, Gila and Salt River Meridian, Pima County, Arizona. Said parcel contains 21.69 acres, more or less. Nathan L Gardner, RLS October 28, 2005 Prepared for and on behalf of Stantec Consulting Inc. Project Number: 185621934 - 215 W:\active\1a5621934\SUTVll)I\Je9aIsldesaiptlon..sopuaro_spmgS_OS1028.doe __ -:::. -- -fWlN PEAKS ROA ""--------.... --- -- -.. --- -- -- -- -- ----"':::..---.. -- -- -- -- -.... '"""- -""""--=:..---... -- -... ~ -- -- I ----~----- I--~---- ------- -- -.. --- . ....- ._.__..._~-_._---_..._.._-.. I r '0 .,; z- r .~ ~ 81 :5 '. J "0 '1 "l! o ~ '" ,!i . .b ...: , ! ~ N ~ :::- .~ j ~ ;;. .!i . ~ Cl ~ 'ii D. I \> ~ ::; I N on 0; C> <l ,Iii I ~ '" <:;. ~ ANNEX PARCEL PER DOCKET 12208 PAGE 1961 PIMA COUNTY RECORDS ~ '" I o ] ~ i .g, 1 TWIN PEAKS ROAD SAGUARO SPRINGS BLOCKS , THRU 10 & A THRU D AND LOTS 1 THRU 9 &' A AND B BOOK 58 PAGE 23 OF MAPS AND PLA TS lHIS SKEItH IS FOR EXHIBIT PJRPOSES OHLY AND DOES HOT October, 2005 COHsmuTE A PROPERlY BOONDW SURVEY. 185621934 - 215 CGOfll/Project EXHIBIT OF SAGUARO SPINGS BK 58 PG 23 AND ANNEX T12S. RIlE AND 12E. GILA AND SALT RIVER MERIDIAN PIMA COUNTY, ARIZONA figure No. nUt 1.0 Legal Description Exhibit EXHIBIT OF SAGUARO SPRINGS Exhibit C "--~ ~l3'="'~~~~-..w,w,n._"-~_'.""'~""""'''",.__~~~,,,__-v~~ I~ ~"ii: III !!!!!! U!! ! ~ ~ p ~ ~ !I ~ u.. I~I 11 ;il llllllllllllllllllllllllllllllll ~I ~ n n ,,~ UUiiiijip liP " " ( . -.:, Ji'; lii~ I~ ,!:l f';1~ l' ~ bill i g: U I n fi Ii: h a ! i~ 11 i ~ I~I I E~!l Bd~ ;;~ ~ -~l~ -~l~ I "sl ~ =II!-e _ ~ I I"d ~ i i'li !lil~ f'li il~ d?l i q~ _'0 t,~ ~iii: ft J ~ 1-. L ~~. 1)<: j"l ~ :/I" li! I I ' m. 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'''' I i ~I :'" "'iO ~ ~ 1 \ ~I II I W~ ~ k I I < = =::\, ,,\ I I i'l~! 1 \ I I t:l ~ -, :"-:m-;;;;- - J'l:I tm',..IIIlMtNit~ o '" "'~_ I '" 'I!! ~~11' ~i\ ~'" ~~T~~'-i~ ~~--l"'~~--a~ ~~~ ~ ':.J ~ ~:ll ~ ~ ~~ ; ai_1L _ I -...... ~~~H~!I;. f I ~iil ~~ rT Il"s ~ 't - "", ~ aail ~i ~~~JIt _~_-:Jf~ I ~ tel! I I-- -l~ I I-- 1-;-' ~~ 1 IL .L 1 i ~-~ ~i '" i I EI!i~ 1 ~~.. 1 ~~ ~E~i I 1 I .~(OB Uil !i~~: -- ..u~ ~f a~ ~ ~ ",~g ; III ~:~ i !l~; o~... I 2U I :Ii 11 911 i il~ I ~I L- ~~ ~ i'l ~ & Il i If n: U;~i ~l ~ ~~illl I ~h~iS i i i 1/1- i . ,_./ -=-~~=~:;::r"""":';:;;-~~-=~",__", ( \ \ / \ I ) f r~~ \ \ I I I I I f: I I I ~ \ I I I Ii H Ii , I \ II f i 1/ f\ fIl 1\ ~ !i! f! ~ u ~ 1\ > :z .~~ :z f!l l;i;:! '" f/ '" l"..q li~ I I 0'" \ ...'" ...'" \ "'''' "'.., !i &~I ~ ~~ ~ ~fI) o ii a i" I !! ! .:\ .1 Exhibit D 529595 N 8950'50" E (e) VlfJ SeCT/ON LINe /OJfOUND AVRA VALLey ROAfJ I -----------~----~~~~~----- , I , II L.16, O'.fRHEAO fLEC [SUI No. 18-9/636 2655.50 (e) 2645.94 (R) N 89'52'04" E (C) N 89'50'00' E (R) -lr'6' OVfRHfAD [LfC. fSMI No. 18-91636 -c . V:\52856\oclive\ 1856219.34\civil\drowing\exhibil\Slole Lond\606.1,dwg 2006-08-16 06:40PM fly: rslucki Stantec Consulting 201 North Bonito Ave Tucson AZ. U.S.A. 85745-2999 Tel. 520.750.7474 Fox. 520.750.7470 www.stantee.eom CAP/BaR PROPERTY 08/16/2006 1856219.34 Cr.enl/Projeet SAGUARO RESERVE. LLC BaR/CAP PROPERTY DESCRIPTION T-12-S. R-l 1 -E. G&S.R.M figure No. ~ t;j w :I: '" 1.0 ~ <5 ~ Tille Exhibit E C A p POl). ~.-;,t,] 20 .. :th:}~~! ~ \.. .-\:-;~~'-;\:i SSOSO- :\020 " 2.~6'~f "-,:~-,~':h S::\;::nt,h SH<t'f :~ S{",':'J' ; 6::3 J 8(;C}..23:-} ~ \:"'\\'\".~:i:~'-,;_L:,~: ,'-n "-" C Ri\ I o l J..l.. I J March 9, 2006 Douglas Hare Vice President E~,,'PIRE Companies 9395 W. Lambert Lane Marana, AZ 85653 Subject Review of the Saguaro Springs Development and the Twin Peaks State Land Preliminary Drainage Study for potentia! impact to Central Arizona Project canal property Dear Mr: Hare:1 Thank you for providing Central };rizona Water Conservation District {CAWeD) the necessary documentation needed to evaluate potential drainage impacts from your development to Central Arizona Project (CAP) canai property during our March 7, 2006 meeting. After reviewing the Preliminary Drainage Study Twin Peaks State land (Volume 1) prepared by Stantee on November 14,2005, CAWCD is satisfied that future drainage flows onto CAP property will not exceed existing conditions, CAWeD is also fully supportive of the design of the drainage channel and the energy dissipater, located just east of our property line at the terminus of the project. As per our conversation during the March 7, 2006 meeting, the construction of these facilities wili not require access onto CAP pruperty and any modification to the plans presented to CAweD that increase drainage flows onto CAP property will be brought back to CAWCD for review. Thank you again for giving us the opportunity to review your plans and provide comments.1 Sincerely,1 ~t1~. Tom Fitzgerald L13nds Administrator . ,", ,t.." '.,. I . . '.: . fI ", r. :.... " . . ~ . - $~:' "'. ~ Exhibit F JEPARTMENT OF THE ARMY LOS ANGELES OISTRlCT. CORPS OF ENGINEERS ARLZOHA-HEVAOA AREA OPFlCE 36.J6 NORTH CENTRAL AVENUE. SUITE 1&0 PHOENIX. ARLZOHA 85012.1935 Urb~~ I :~:-;;~N OF': May 15, 1997 Office of the Chief Regulatory Brlllch Best IT, LLC C/O Urban Engineering A TTN: Jeff Blau 877 South Alvernon Way Tucson, Arizona 85711 File Number: 974-0JS7-RJD Dear Mr. Blau: . ___ ..__ 4Reference is made to-yo~~ application-a:nclJ o'r-letter of-April-28;-1 ~r9Tin';;b.~~hY;~~-_-=l inquired as to whether or not a Section 404 permit is required from (he U.S. Army Corps of Engineers to develop the Saguaro Springs subdivision (Sections 7, 8, 17, 18, and 19, TI2S, RI2E and Sections 11, 12, 13, and 14, T12S, Rl1E), Marana, Pima County, Arnona. Based on the information furnished in your application and/or letter (referenced above) and a site visit by one of my Staff, we have determined that your proposed project is not subject to our jurisdiction under Section 404 of the Clean Waxer Act. Since there are no Waters of (he United States wlthin the aforementioned proposed project area, 00 Section -10+ permit is required from our office. Mll1made drainage features were observed to have been constructed in upland areas to collect sheet flow and irrigation tail water, however, such features are rypically nor regulated under Section 404 of the Clean Warer Act. No jurisdictional Waters were located within the area shown on the enclosed aerial photographs. The receipt of your application and/or letter is appreciated. If you have questions, please cont;J.cr Robert J. Dummer at (602) 640-5385 x 224. Sincerely, ~~ f Cindy Lester Chief, Arizona Section Regulatory Branch Enclosure ..' "1-' . --7i Exhibit G '-.../ ;;;; ~.!;;2;;;~!1 UHUiUUiU ... 11II ... 11II 11II.... .. II 111I .. .. 11II .... i. Id~&'ii~&Sli&'!;'.~~ :::::::~::::!~I ~ ~ ~ ~ : ~ ~ ~ ~ } ~ : ~ 5 a. ~Ol n ~ ~ n ~ ~ ~ ~ n n ~~ ~l ~ l) ~ :'ll ~ :.;: ~ $ ~ I " I n- i ;:I~ ! pi I~ ,~ II ,a l~ ~ . ":J[;:13 :=J.'" ,S I I ,i I , I~ I l I I · I I I ~ I ~. . III 1~0l U.e.- - - ~ ~..YYLJ~_ _(II I~~ (I I I"~ Ii I ~ C I I ~ ~ : I ~"J ~ I I "S I . 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Exhibit H ,2006 TEMPORARY RIGHT-Of-ENTRY ONTO STATE TRUST LANDS Re: Saguaro Reserve, LLC Temporary Right of Entry onto State Trust Lands For Construction of Temporary Drainage Channel Pursuant to Saguaro Springs Drainage Channel Agreement Dear: This letter serves as the Right of Entry onto State Trust Lands for the Grantee, Saguaro Reserve, LLC ("Saguaro Reserve"), effective upon (i) receipt by the Grantor, Arizona State Land Department ("ASLD"), of this original letter signed by a duly authorized representative of Saguaro Reserve, (ii) execution of the Saguaro Springs Drainage Channel Agreement ("Drainage Channel Agreement") by and between ASLD, Saguaro Reserve, and the Town of Maran a, A1i~ij.~~;(iii~;;t~eeipt bY;~~~D;~~~~ Sagum:o Rese~;~ of one tho~;~d:;twq:;~d~;dtl ($I~~90.00) pl~~~ amo. equa~~Q;;the estImated:.~Y ten-year cO~Jo obtallt;th(~;:Tem .:"s: ry Rigp.t.~ofWay as:~~fined~the D ge Channel:;~~~ement plus~~ amount equal to Q~~ huri~~ed twenty-'~~~ perd~~t (125 of the estin#ted11~?st to cons~~tthe Iemporary ~inage Ch~~el, as secu?" to ;.. "; .P~<~ip:rovided by t~ Dr~~ge Chanri!~;~gr~mnent, and (i~~'~receipt >/</.. /-/>"Xi"^/",,- )',,// //,'X:' 'q "">" by ~~LD of a C lcat In~ance as detai!~g .. ". ~~ .:~ :;:~:;;; ;;;:::: .:;:;;;~;; '~:&::::;:;;:;q ;..'~~~ ~ 0 ~ ~ ~ ~.. ..f'n '. ~> ..1 ... .... .cp 1'". :;r~?~~~;~:~::::;/,"~;~:~':rillf1f:P:;:;::;;;;'Res~~~~lIiii::~ ~:::; ~~I~r~e right to remove fill dirt from the Subject Property and place the dirt on an adjacent parcel of State Trust Land as indicated on the Special Land Use Permit attached hereto as Exhibit B. LOCATION: The Subject Property encompasses TERM: From: , 2006 To: , 2008 This Right of Entry shall terminate before the end of the Term if one of the following occurs: (i) ASLD issues the Temporary Right of Way over the Subject Property; (ii) ASLD sells pursuant to public auction a parcel which includes the Subject Property and issues a certificate of purchase or patent thereon; or (iii) ASLD offers the Temporary Right of Way to Saguaro Reserve, according to the terms stated in the Drainage Channel Agreement, and Saguaro Reserve fails to purchase the Temporary Right of Way. "'.............""'I'-...........~,,......_"".__.,..._-""'.~-,"- CONDITIONS: By accepting this Temporary Right of Entry, Saguaro Reserve agrees that: 1. Saguaro Reserve is granted only those rights described herein which do not include any implied rights to use any land other than the State Trust lands described. Any violation of these terms voids this Right of Entry upon occurrence. If all or part of the land under this right of entry is closed or sold, those lands are no longer available for use under this Right of Entry effective the date of closure or sale. This Right of Entry may be terminated at ASLD's discretion with no right to administrative or judicial appeal within thirty (30) days written notice. 2. It is understood and agreed that this Right of Entry is in the nature of a license and does not create a lease, easement, other estate or right in real property. In the event this document or any supplemental attachments contains any wording that a court of law interprets as creating a leasehold interest, that wording shall be void but shall not effect the remaining terms and conditions of this Right of Entry permit. 3. ASLD specifically reserves and shall retain for itself, its successors and assigns, all other rights to the Subject Property not inconsistent with the Right of Entry. Such rights specifically include, but are not limited to: the right to use, occupy, and cross the Subject Property; the right to:~t:~~d~~~~>!~e Rig~Jj~:E~~>~he right to ~~~}mproveme~~1fl~in~1 si~~~~~a:~:.:~:;~;!~ mO~\.Unents Wimi,l,l the Riilj.t ofE~W:f; and the ng ... develop the:~'!,lbJect Pr9P~y In tI9 futur~ for ~~y purpose~~~rmitt~(3{by appJt~~ble law. ~~~@.. fi~ .~ ~<'i:' '::::g.:: .::~;.~[:: ...... ~:.;> . { W'a 4. '..;' Saguaro ~erve .: J!:.~fuply with alll~s .......:p1les oft~~:S~~~the Arizon~~ame an((Fish Departrli,~tit, an.... fR"" 1, State, C~tmtY.5lil~;Municipa.l!f~ws, oidinances ort!~;~ ~':<">: ->'/<::"':'"<","-", ',"',~",,",',,',,'<"'(,'^'"':';<, .';,'/'>>, ","" reg~~tions appli~~le to'~ gr J~p use. Sa~~!faro"Res~E is resti~:ij~ible for obtaining~ijiy state, fed~l'a,l, or 10CCl;~;pelmits ~~essarytQ.the acti~ty defineq~m this ri~t of entry...:. /::;~r[ai:;>::;;</,<::;;;:;:;::" . /!,../> . "'..;.:::. . ./:;~;:. ." . . . X~~;;;i;:... . . . ..i........ . . fft 5:'NNNN/Saguaro Reserve Is i'esponsiBnttoconfact any Statele'ssee~"ifapplicable, to notlfY'11lm or her of Saguaro Reserve's activities. Saguaro Reserve understands that this Right of Entry does not represent nor warrant that access exists over adjacent State lands or private lands which intervene respectively between the described Trust land and the nearest public roadway. 6. Saguaro Reserve agrees to conduct its operations so as to not pollute any groundwater supply. 7. Saguaro Reserve shall comply with all state and federal laws relating to prehistoric or historic archaeological sites or artifacts. No archaeological sites or artifacts, either prehistoric or historic, will be disturbed or removed. 8. Saguaro Reserve shall comply with the Arizona Native Plant laws. 9. Saguaro Reserve's refuse shall be stored in a portable container and removed from State land. Waste from portable toilets shall be removed from site and disposed of properly. 10. Any and all structures placed upon the property shall be removed at Saguaro Reserve's expense if a Right of Way for this Right of Entry's purpose is not approved by ASLD. Any such -""""'~-"''''""+.....-...,~.,,-~...,,~,.,,~._,,._"-,,- structures placed upon the Trust premises which are not expressly authorized herein, shall be forfeited and become property of the State. 11. By acceptance of this Right of Entry, Saguaro Reserve agrees to indemnify and hold the State harmless from and against all liabilities, obligations, damages, penalties, claims, causes of action, cost, charges and expenses, including attorney's fees and cost, which may be imposed upon, incurred by, or asserted against the State by reason of any accident, injury or damage to any persons or property occurring on or about the State Trust land or any portion thereof resulting from the use of this Right of Entry. 12. Insurance. Without limiting any liabilities or any other obligation of the Saguaro Reserve, Saguaro Reserve shall purchase and maintain, and cause its subcontractors to purchase and maintain, in a company or companies lawfully authorized to do business in the State of Arizona, and rated at least A VII in the current AM. Best's, the minimum insurance below: Commercial General Liability, with minimum limits of$I,OOO,OOO.OO per occurrence, and an unimpaired products and completed operations aggregate limit and general aggregate minimum limit of $2,000,000.00. Coverage shall be at least as broad as the S '@f&~:~, Inc. Form CGQOOI0196, ;.;.:/;add t ,';'State of Arizo: " d ASLD to tJl~ right 4:;~ay. The polle J1all <<<<< >>>z< /j , 'v' ," "":",' ,<j' 1. ~~9~U~;;t~J~y; ';' 2.:,,~ro~;:~orm Propert)t~Q~, 3. ~rersort:~;Jnjury; <:,;:<<;"://1;;;;' 4. \Jl~anket;~~?tractu<:t!Liability; 5};~~oducts <~'<:()rOOleted Oper '(5:;;;Frt:e/Legal;fi~15ilify:;:/:" 13. The parties agree to be bound by applicable State and Federal rules governing Equal Employment Opportunity, Non-discrimination and Disabilities, including Executive Order No. 99-4. 14. This agreement is subject to cancellation pursuant to AR.S. S 38-511. 15. To the extent required by AR.S. SS 12-1518(B) and 12-133, the parties agree to resolve any dispute arising out of this agreement by arbitration. MARK WINKLEMAN STATE LAND COMMISSIONER By: Title: SAGUARO RESERVE: Saguaro Reserve LLC, a Delaware Limited Liability Company By: Empire Land, LLC, its manager By Empire Partners, Inc., its manager By: Its cc: Public Records Exhibit I Stantec Consulting Ine. 20) North Bonita Avenue Suite 101 Tucson Al 85745-2999 Tel: (520) 750-7474 Fax: (520) 7$0-7470 stantec.com Stantec July 6, 2006 File: 185620394-177 Tel: (520) 975-8962 Fax: (520) 616-0078 George Wik Saguaro Reserve, LLC 9395 W. Lambert Lane Marana, AZ 85653 Reference: Twin Peaks State Land Dear George: It is our strong belief that the proposed channel across the State Land parcel, as discussed in the Stantec study "Preliminary Drainage Study - Twin Peaks State Land (Volume 1)" dated November 14, 2005, when constructed, would remove the State Land immediately north of the channel and south of Avra Valley Road from the 100 ,Year FEMA Floodplain through the CLOMR/LOMR process. FEMA would need to review and approve the CLOMR and LOMR requests, and FEMA may seek modifications to the channel design or may, though unlikely, deny the request. Stantec can not guarantee FEMA approval of the CLOMR/LOMR, nor removal of State Lands from the 100 Year FEMA Floodplain. Should you have any questions, please contact me at your convenience. Sincerely, KDP:jap STANTEC CONSULTING INC. Kenneth D. Perry, PE Senior Associate, Urban Land koerry@stantec.com Cc : Rick Murillo, Stantec John Partridge, Stantec Ryan Stucki, Stantec Douglas Hare, Saguaro Reserve V:\52856laclive\ 185620393\ 185620394IcOl'respondencl!'~1t _ wik.doc Exhibit J ~ ~. PARCEl. NfJIIBER 2tStt0550 LECAl. OESCRlPD . SEe " trss 1fD' ~ 1fO,J1J;94 A . SEC' W TWIN PEAKS RD CJ i I i I V;\~m6\odjy.\ t$5&.2! 9,H\tlvll\drowitlg\elfhibil\SMll lond\Propoaol Areo.dwg 20011-11.-11 10:22AM By: rducki Sta.ntec Consulting 20 1 North Boni(a Ave TucscnAl u.s.A. 85745-2999 Tel. 520.750.7474 folt. 520.750.7470 wlitW.stontec.coM'\ AAIil!I..:_ 2006 18;:>O,tUU4 .. CfilInt/l"rol= EMPIRE '....... IIll, 1.0 T1l1t TWIN PEAKS AZ STATE TRUST PARCEL Exhibit K AUG. 31. 2006 11: 56AM ATTORNEV GENERAL NO. 5143 P. 2 STATE LAND DEPARTMENT STATE OF ARIZONA SPECIAL LAND USE PERMIT Permit No. 23- Site I.D.: THIS SPECIAL LAND USE PERMIT ("Permit") is enter~d into by llnd between the State of Arizona, Arizona State Land Department ("Permittor"), through the State Land Commissioner ("Commissioner") and ('~Permittee"). In consideratioD of the payment of a tee and of performance by the parties of each of the provisioDs set forth berein, the parties agree as follows: ARTICLE 1 SUBJECT LAND 1.1 Permittol' grants to Permittee a Don-exclusive license for special use on the State Land described in Appendix A a1tached hereto ("the Subject Land"). 1.2 Permittee makes use of tbe Subject Land "as is" and Permittor maltes no express or implied warranties as to the physical condition of the Subject Land. ARTICLE 2 TERM 2.1 The term of this Permit coxnmences on , ("Commencement Date") and expires on , ("Expiration Date"), unless sooner canceled or terminated as provided herein or as provided by law. As a license, this Permit expires on the date indicated and carries no holdo'Ver rights, nor is it assignable or saleable. 2.2 This Permit represents personal property of Permittee and does not survive the death of or termination by Permittee. 23 - CommuulentloD Permit OSI05 (Rl.'\', mOOS) wly ...,....._.~,,~_...._,~. ".-."...---=<..=.....->--."'.....,;.-."....-.,-." AUG. 31. 2006 11:56AM ATTORNEV GENERAL NO. 5143 P. 3 ARTICLE 3 FEE 3.1 Permittee agrees to pay as a fee for this Permit the following amount, due and payable in advance on the Commencement Date, and each year thereafter On the anniversary of the Commencement Date: 3.2 If Permittee should fail to pay the fee when due, the Commi.ssioner at his option, may cancel this Permit or declare the same forfeited. 3.3 Permittee shidl pay a penalty of five (5%) percent of any amount of the fee that is delinquent, and .sball pay daily interest on delinquent amounts plus l>enalty at the rate set by the Arizona State Treasurer, according to law. 3.4 The State of Arizona shall be forever wholly absolved from any liability for damages which might result to the Permittee herein on account of this Permit having been forfeited for dOnpayment of fees due thereunder priodo tbe expiration of the full time for which it Is issued. ARTICLE 4 PERMITTED US~ 4.1 As a license, this Permit grants authority only for the following specific purpose and temporary structures; any other use by the Permittee of the land described herein, or. of any of the products therefrom, eX<:ept as provided below, is expressly prohibited: Placement, mailrtenallce and opera#on of wireless telecommulrication antenna facility on existing telecommunications monopoleltower {electric power transmission pole], and related equipment cabinets and facilliies on Of heww ground, all wit/,in existJng lease fRight of Way} No. . The !lOlder of Lease [Right of Way] No. J (Lessee/Grantee) is tl,e owner of aflY existing monopole/tower, and any replacement monopole/tower, located on Subject Land. Co-location of other compatible and similar communication users permitted only with expreSt, written autl,orization of Permittor. 4.2 This Permit is subject to any leases, rights of way, and permits which may exist, and a.ny and all present commitments In connection with those leases and permits. Permittee shall in no way interfere with the peaceful possession and use of the Subject Land by a valid surface leaseholder or permittee of the Subject Land. 4.3 Perxnittor resetves the right to grant rights of way and easements over, across, or upon the lands embraced in this Permat for public highways, railroads, tramways, telephone, telegraph and transmission Jines, pipe lines, irrigation works, flood 2' - Communication l'ermil 05(05 ~ev. 1/2005) ~2- ....,-"'---.._.._~_...~~~.- AUG. 31. 2006 11: 56AM ATTORNEY GENERAL NO. 5 14 3 P. 4 control, drainage works, logging and other purposes, and this Permit is issued subjeet to all existing rights of way. 4.4 Permittee shall Dot cause nor grant permission to another to cause any waste in or upon the Subject Land. Permittee, its employees and agents shall not cut, consume or remove any timber, or standing trees that may be upon the Subject Land, withou.t the prior written COnsent of Permittor, except that Permittee may cut wood for fuel for domestic uses and authorized impro'Vexnents on the Subjeet Land without such prior consent. Nothing herein shall permit the cutting of saw timber for any purpose. ARTICLE 5 CONFORMITY TO LA ~ 5.1 Permittee shall not use or permit tbe Subject Land to be used in any manner that is not in conformity with all applica.ble Federal, State, County and municipal laws, ru.les and regulations, unless Fermittor determines and advises Permittee in writing otherwise. 5.2 This Permit shall terminate if Permittee is unable to or fails to obtain or loses any governmental approval tbat Is prerequisite to the special use for which this Permit is issued, or that is necessary to construct, maintain or operate any facilities on the site in conneetion with that special use. ARTICLE 6 IMPROVEMENTS 6.1 Any and all structures placed by Permittee upon the Subject Land shall be temporary and remo'Vable, and sball be removed upon expiration, cancellation, revocation or termination of this Permit. The placement of permanent improvements upon the Subject Land by Permittee is expressly prohibitedj any permallent improvements so placed upon the Subject Land by Permittee shall be removed by Permittee without damage to the Subject Land or at the option of PermittaT shaH be forfeited and become the property of the State. Permittee shall remain liable for the cost of removal of all improvements and tor restoration of the Subject Land, as set forth more fully in Article 13. 6.2 If at any time after the execution of this Permit it is shown to the satisfaction of the State Land Commissioner that the Permittee herein has misrepresented, by implication or otherwise tbe value of any reimbursable improvements placed upon the land herein embraced and Permittee herein not being the owner of said improvements at the time ot the execution of this Permit, this Permit shaD be null and void, at the option of the State Land Commissioner, Insofar as it relates to the land upon which said improvements are situated. 23 - Commlllli~Ntion l',rmil 05/05 (ll.,v, 1/2005) -3- AUG. 31. 2006 II: 56AM ATTORNEY GENERAL NO. 5143 P. 5 ARTICLE 7 CANCELLATION. TERMINATION & ABANDONMENT 7.1 If at any time after the execution of this Permit, it is shown to the satisfaction of the Commissioner, that there has been fraud or collusion upon the part of Permittee to obtain or hold this Permit at a lesser Cee tban its value, or through sucb fraud llnd collusion a former permittee of the Subject Land has been allowed to escape payment of the Cee due for tbe use of said land by the former permittee, this Permit shall be null and void, at the option of the Commissioner, insofar as it relates to the land affected by said fraud or collusion. 7.2 Permittee shan give Permittor 25 days Dotite in writing in advance of the abandonment of said Subject Land or termination of tbese presents. 7.3 In the event any land affected by this Permit is reclassified by order of the State Land Commissioner, or sold, this Permit will automatically cancel as of the effective date of the reclllssification or sale. 7.4 If Permittee should raU to keep tbe covenants and conditions herein set forth, tbe Commissioner at his option, may cancel said Permit. 7.5 This Special Land Use Permit shall be terminable at will with 25 days written notice. 7.6 This contract is subject to cancellation pursuant to A.R.S. ~ 38-511. ARTICLE 8 INSURANCE AN}) INDEMNITY 8.1 Except to tbe extcnt occurring or existing prior to the Commencement Date hereof, Permittee hneby expreSSly agrees to indemnify and bold Permittor harmless, or cause Permittor to be indemnified and held harmless, from and against all liabilities, obligations, damages, penalties, claims, causes of action, costs, charges and expenses, ineludlng attorney's fees and costs, which may be imposed upon or incurred by or asserted against Permittor by reason of any: (i) ac:cident, injury or damage to any person or property occurring on or about the Subject Land or any portion thereof; (ii) use, non-Use or conditiOn of the Subject Land or any portion thcreof; or (iii) failure on the part of Permittee to perform or comply with any of the provisions of tbis Permit; ex~ept thRt none of the forcgoing shall apply to Permittor's intentional conduct oX' Active negligence Dor to the intentional conduct or active negligence of Permittor's agents, servants, contradors or subcontractors. If any action or proceeding is brought against Permittor by reason of any such occurrence, Permittee, upon Permittor's written request and at Permittee's expense, will resist and defend such action or proceeding, or cause the same to be resisted eithet by counsel designated by Permittee or where such occurrence is covered by liability insurance, by eounsel designated by the insurer. 23 - CVll1mllnictliOh PermIt 05/05 (Rev. 112005) -4- -,...~.......~~"'-~~-,->~,.~.,- AUG. 31. 2006 11: 57AM ATTORNEY GENERAL NO. 5143 p, 6 8.2 Pennittee, at its expense, shall at all times during the Term of this Permit, and any extension thereof, maintain in fun force a policy or policies of commercial genera.l liability insurance, including bodily injury, property damage, personal injury and broad form contractual liability coverage, written by one or more duly licensed (or approved non- admitted) insurers in the State of Arizona with an "A.M. Best" rating of not less than. A. vn~ and each policy shall be written on an occurrence basis, which insure Permittee and Permittor against liability for injury to persons and property and death of any person or persons occurring in, on or about the Subject Land, or arising out of Permittee's maintenance, use and occu.pancy thereof. All (Iommercial general liability and personal property damage policies shall contain a pro'Vision that Permittor, named as an additional insured, shall be entitled to recovery under the policies for any loss occasioned to it, its servadts, agents and employees by reason of the negligence or wrongdoing of Permittee, its servants, agents and employees. Further, the policies shall pro'Vide that their conrage is prironry 0'V61' any otber insurance coverAge available to the Permittor, its servants, agents and employees as relates to the negligence of Permittee. AU policies of insurance must contnin a provision or endorsement that the company writing the policy shall Give to Permittor thirty (30) days notice in writing in advance of any cancellation or lapse, or the effective date of any reduction in coverage. 8.3 The insurance as described in Paragraph 8.2 herein shall afford protection not less than: Gcneral Aggregate: Personal Injury: Each Occurrence: Blanket Contractual Liability - Written and Oral: Fire Damage (Any one fire): $2,000,000.00 $1,000,000.00 $1,000,000.00 $1,000,000.00 $500,000.00 in combined single limits and each liability policy or polides shall be written on an occurrence basis; provided, however, that the minimum amount of coverage for the above sball be adjusted upward on Permit tor's reasonable request to be made no more frequently tban once every two (2) years so that such respecti'Ve minimum amounts of co'Verage shall not be less than the amounts then required by statute or generally carried on similarly improved real estate in the County herein described, whichever is grenter. If at any time Permittee fails, neglects or refuses to cause such insurance to be provided and maintained, then Permittor may, at its election, procure or renew such insurance and any amounts paid therefore by Permittor shall be an additional amount due at the next date Rent is due and payable. 23 - Communication Pttmll OSfOS (RCf. 712005) -5- '._~'---'""'""'--"'''-'''-''''''~''-' AUG. 31. 2006 11:57AM ATTORNEY GENERAL NO. 5 143 P. 7 8.4 Notwithstanding anything to the contrary in this Article, Permittee's obli&ations to carry the insurance provided for herein may be brought within the coverage of a so-caUed blanket policy or policies of insurance maintained by Permittee, provided, however, that the coverage afforded Permlttor will not be reduced by reason of the use o( such blanl~et polley of insurance. 8.5 Permittee shall furnish Permittor with certificates of insurance (ACORD form or equivalent approved by Permittor) and shall at all times during tbe term of this Pennit maintain with Permittor a eUl'rent certificate of insurance. The St;ate of Arizona, Arizona State Land Department, the Permit number, and location description of the subject parcel are to be noted on the certificate of insurance. Permittor reserves the right to view the complete, certified copies of all insurance policies and endorsements required by this Permit at any time at Permittee's headquarters. In addition, if any claim made by Permittor is rejet\ted by Permittee's insurance company, Permittor shall have the right to view the complete, certified copy of the applicable policy at Permittee's area headquarters. Lastly, permittor shall have the right, at any time, to request a representation letter from Permittee's insurance agent in relation to any particular co'Vcrage referenced in this Permit. ARTICLE 9 ENVIRONMENTAL MATTERS 9.1 For purposes of this Permit, the term "En'Vironmental Laws" shall include but not be limited to any relevant federal, state or local environmental laws, and the regulations, rules and ordinances, relating to en'fironmental matters, and publications promulgated pursuant to the local, state, and federal laws and any rules or regulations relating to environmental matters. For the purpose of this Permit, the term "RegulAted Substances" shall include but not be limited to substances defined as "regulated substance," "solid waste," "hazardous waste'" "hazardous materials," "hazardous substances," "toxic materials, or "toxic substances," "inort materials," "pollutants," "toxic pollutants, II "herbicides, II "fungicides,.. "rodenticides," "insecticides," "contaminants, II "pesticides," "asbestos," "environmental nuisance," "<:riminallittering," or "petroleum products" as defined in Environmental Laws. 9.2 Permittee shall strictly comply with all Environmental Laws, in eluding, without limitation, water quality, air quality, and handling, transportation, storage, treatment, or disposal of any Regulated Substance on, under, or from the Subject Land. Without limiting the foregoing, compliance indudes that Permittee shall: (1) comlJly with all reporting obligations imposed under Environmental Laws; (2) obtain and maintain all permits required by Environmental Laws, and provide a copy to the Permittor within ten business days of receipt of the permit; (3) provide copies of all documentation required by Environmental Laws to the Perolittor within ten business days of Permittee'! submittal and/or receipt of the documentation; (4) during the term of the Permit, provide copies of all information it receives or obtains regarding any and all environmental matters relating to the Subject Land, including but not limited to environmental audits relating to the Subject 2~ - COllllllunlcation Petmil 05/05 (ROY, 7flOOS) "6- _.-.._._._---~--,~"""'...,~".- AUG. 31. 2006 11:57AM ATTORNEY GENERAL NO. 5143 P. B Land regardless of the reason for which the information was obtained or whether or not the information was required by Environmental Laws; (5) prevent treatment, storage, disposal, handling or use of any Regulated Substances by Permittee and its agents, employees or contractors, within the Subject Land without prior written autborization from the Permittor. permtttee shall use commercially reasonable efforts to preclude use of Pernlittee's portion of tbe Subject Land by unauthorized persons. 9.3 Permittee at all tilUes shall employ or designate an existing employee (the "Designated Compliance Officer") who is responsible for knowing all Environmental Laws affecting Permittee and Permittee business and monitoring Permittee's continued compliance with applicable Environmental Laws. Upon request by the Permittor, Permittee shall make the Designated Compliance Officer available to discuss Permittee's compliance, llnswer any questions, and provide such reports and confirming information as the Permittor may reasonably request. 9.4 At any time, the Permittor may request the Permittee to provide an cn'Vironmentlll audit of the Su.bject Land performed by an Arizona registered professional engineer or an Arizona registered geologist. Permittee shall pay the entire cost of the audit. 9.S At any time, during the term of the Permit, the Permittor may require Permittee to obtain one Phase I environmental assessment of the Subject Land performed by an Arizona registered profeSsional engineer or an Arizona registered geologist. If, based upon the Phase I environmental assessment or its own independent investigation, tbe Permittor identifies any possible violation of Environmental Laws or the terms of this Permit by Permittee or its agents, employees, or contractors, the Permittor may require Permittee to conduct additional environmental assessments as the Permittol" deems appropriate for thc purpose of ensuring that the Subject Lands are in compliance with Environmental Laws. The Phase I assessment, or any other assessment required by the PermJttor, shall be obtained for the benefit of both Permittee and the Permlttor. A copy of the Phase I report shall be provided both to Permittee and the Permittor. The Permittor, in its sole discretion, sball have tbe right to require Permittee to perform additional assessments of any damage to tbe Subject Land arising out of any violations of Environmental Laws by Permittee or its agents, employees or contractors. If Permittee fails to obtain any nssessments required by the Permittor, Pennittee shall pay the entire costs of any and all assessments required by the Permittor, notwithstanding the expiration or termination of the Pel"rnit. 9.6 Permittee shall defend, indemnify and hold the Permittor harmless from and against any and alllfability, obligations, losses, damages, penalties, claims, environmental response and cleanup costs and fines, and actions, suits, costs, taxes, charges, expenses and disbursements, including legal fees and expenses of whatever kind or nature (collectively, "claims" or t1damages") imposed on, incurred by, or reserved against the Permittor in any way relating to or arising out of any nonwcompliance with any Environmental Laws by Permittee or its agents, employees or contractors, the existence or presence of any Regulated Substance, on, under, or from the Subject Land due to the ads or omissions of 1] - COl1lmllnl6ulon Permit o,ro~ (Rev. m.OOS) -7- AUG. 31. 2006 11:57AM ATTORNEY GENERAL NO. 5143 P. 9 Permittee or its agents, employees or contractors) and any claims or damages in any way relating to or arising out of the removal, treatment, storage, disposition, mitillation) cleanup or remedying of any Regulated Substance on, under, or from the Subject Land due to the acts or omissions of Permittee Or its agents, elnployees, contractors or subcontractors. 9.7 Thill indemnity shall survive the expiration Of termination of this Permit and/or transfer of an or any portion of the Subject Land and shall be governed by the laws of the State of Arizona. 9.8 In the event any action or claim is brought or asserted against the Permittor which is or may be covered by this indemnity, the Permittee shall funy participate, at Permittee's expense, in the defense of the action or claim iocludine but not limited to the fe>llowing: (1) the conduct of any required cleanup, removnl e>f rem.edial actions and/or negotiations, (2) the conduct of aDY proceedings, bearings, and/or litigation, and (3) the negotiation and finalization of any agreement Ok' settlement. Fe>r indemnified matters, all final decisions concerning the defense shall be reasonably approved by Permittor. The Permittee's obligations to participate in the defense under this Section shall survive the expiration or termination of the Permit. 9.9 Prior to the termination of the Permit and in addition to tbose obligations set forth in Article 13.2, Permittee. shan restore the Subject Land by removing any and all Regulated Substances deposited by Permittee or its agents, employees or contractors. In addition) the restoration shall include, but not be limited to, removal of all waste and debris deposited by tbe Permittee. If the Snbject Land or any portions thereof are damaged or destroyed from tbe existence or presence of any Regulated Substance due to the acts or omissions of Permittee or its agents, employees or contractors, or if the Subjed Land or any portions thereof are damaged or destroyed in llny way relating to or arising out of the removal, treatment) storage, disposition, mitigation, cleanup or remedying of any Regulated Substance due to the acts or omissions of Permittee or its agents, employees or contractors, the Permittee shall arl'ange, at its expense, for the repair) removal, remediation, restoration, and reconstruction to the Subject Land to the original condition existing on the date tbat the Permittee first occupied the Subjett Land, to the satisfaction of the Permittor. In any event, any damage, destruction. or restoration by Permittee sball not relieve Permittee from its obligations and liabilities under this Permit. The Permittee's restoration obligations under this Section shall survive the expiration or the termination of the Permit. ARTICLE 10 LICENSE: SEVERABILlTY 10.1 This Permit is a license and does not create a leaae, easement, or other estate or right in the real property. In the event this document or any supplemental attachments contains any wording that a court of law interprets as creating a leasehold interest, that wording shall be void but shall not effed the remaining terms and conditions of the Permit. :U - C~ll\mllniCllCion I'enlllt 05/05 (Rev. 71~005) .8~ _____"'oJ.".-,,--- .~~.,.,.,~.._.~~_.........~~_....... AUG, 31. 2006 11:58AM ATTORNEY GENERAL NO. 5143 p, 10 ARTICLE 11 USERY A TIONS; REUNOUISIIM~NTS 11.1 Permittor excepts and reserves out of the Permit hereby made, all oils, gases, coal, ores, limestone, minerals, fossils and fertilizers of every name and description that may be found in or upon the Subject Land or any part thereof. 11.2 Permittar reserves the right to relinquish to the United States lands needed for irrigation works in connection with a government reclamation project, and to grant or dispose of rights of way and sites for canals, resenroirs, dams, power or irrigating plants or works, railroads, tramways, transmission lines, or any other purpose or use on or over the Subject Land. ARTICLE 12 NATIVE PLANTS AND ARCHAEOLOGICAL RESOURCES, 12.1 Permittee shall comply with the provisions of the Arizona Native Plant Law, A.R.S. ~ 3-901 et sea., or any su~essor statutes, and with ArizoDa laws relating to archaeological discoveries, A.R.S. ~ 41-841 et sea., or any successor statutes. Permittee shall not disturb Slny cacti or other protected native plants nor disturb any ruins, burial grounds or other archaeological Sires except as may be permitted by these laws. In addition, Permittee shall notify Permittor of any prehistoric or historic archaeological discoveries OD the Subject Land. ARTICLE 13 :PERMITTEE SHALL PROTECT AND RESTORE SUBJECT LANn 13.1 In the event of known trespass on the Subject Land resulting in damage thereto, Permittee shall notify Permittor and appropriate Jaw enfon:ement authorities. 13.2 Upon abandonment, cancellation, revocatioD or termination of this Permit, Subject Land shall be restored to its original condition, to the satisfaction of the Permittor. Such restoration shall include, but shaJJ not be limited to, removal of any and all material, equipment, facilities, temporary structures, or debris, deposited by Permittee on Subject Land. If Permittee fails to remove aU such material, equipment, facilities, temporary structures, or debris within a reasonable period, as determined by the Permittor, they shall be forfeited and become tbe property of the State, but Permittee shall remain liable for the cost of removal of all materials and for restoration of the site. ARTICLE 14 MISCELLANEOUS 14.1 It is understood by Permittee that the establishment of any water right, or rights, shall be by and for the Stnte of Arizona, and no claim thereto shall be made by said Permittee; such rights shall attach to and become appurtenant to the Subject Laod. 23 - Commll/li~.(iou PtI'mlt 05105 (Rev. 1{200S) -9- --~"-.-.-_......._~............,->.,.,.~.. " AUG. 31. 2006 11: 58AM ATTORNEY GENERAL NO. 5143 P.11 14.2 This Permit is granted subject to all the provisions and requirements thereto~ and to the present laws relating to State Lands, and all amendments, revisions or repeals of all existing laws, the saIDe as though they were fully set fortb herein. No provisions of this Permit shall create any vested right in Permittee. 14.3 In the event of a dispute between the parties to this Permit, it is agreed to use arbitration to resolve the dispute but only to the extent required by A.R.S. ~ 12-1518; and in no event shall arbitratIon be employed to resolve a dispute which is otherwise subject to administrative review by the Department. 14.4 In any action arising out of this Permit, the prevailing party is entitled to recover reasonable attorneys' fees in addition to the amouot of any judgment, costs and other expenses as determined by the court. In the ease of Permittor, reasona.ble attorneys' fees shall be calculated at the reasonable market value for such services when rendered by private counsel, notwithstanding that it is represeoted by the Arizona Attorney General's Office or other s2lAried counsel. 14.5 This document is submitted for examination and shall have DO binding effect on the parties unless and until executed by Permittor (after execution by Permittee), and a fully executed copy is delivered to tbe Permittee. 14.6 ,Permittee shall adhere to all rules, regulations, ordinances, and building codes as promulgated by local jurisdictions and any applicable agencies. 14.7 All of the covenaots, conditions and agreements~ attached to this Permit, sball be, become and are a part of the Permit, the same as though set forth in full over the signatures of the contracting parties hereto. 14.8 Every obligation of the State under this Permit is conditioned upon the availability of funds appropriated or allocated for the payment of such obligatioo. If funds are not allocated and available for the continuance of this Permit, this Permit m.ay be terminated by the State at the end of the period for which funds are available. No liability shall ac~ruc to the State in the event this provision is exerdsed, and tbe State shall not be obligated or liable for any future payments or any damages as a result of termination under this paragraph. 14.9 The parties agree to be bound by applicable State and Federal rules governiog Equal Employment Opportunity, Non~discrimination and Disabilities, including Executive Order No. 99-4. 23 - CommulIlcAlIOD Pcrmit 05105 (nev. ,/zOOS) -10- ".."'''''''"''-'''''~''''''''"''''''~~'''_''C',,_,,_ AUG. 31. 2006 1\: 58AM ATTORNEY GENERAL NO. 5143 P. 12 IN WITNESS HEREOF, the parties hereto have signed this Permit effective the day and year set forth previously herein. STATE OF ARIZONA, PERMITTOR Ari2:ona State Land Commissioner PermiCtee By: Date By Date (SEAL) Address City State Zip 13 - CommllnlutiOIl P~l1IIl1 ClSIOS (Rev. 7no'OS) -11- -~_....,~............. """"'-""-''''--'''~="''~'',"".._"-.o''''~'"''''''''"'_'''_''~ Exhibit L ~;=.:t:,=_....,~~~;~._..._-~._... ~ ~ ~ "V :u 0 "V 0 (I) m c c :u :.- Z :.- G) II m (I) 1\- m 1- ~~~ () frU -l (5 ~( z ~tJ~ a~~~ ~ ~ i\ ll\ I ~ I ; !ll L__L \ pgl ----------------..-------.---..--..--------..---------------...---- 1lM__1Ilt. ~~ i. I5iiI JSJ-mO - . TWIN PEAKS STATE LAND AGutlE S 200 - FOOT CHANNEL AUGNIIEHT ~..-----' ..................."."... "- A........,~PItIIIo-.wo. .,aooa-....._..-y..... .............-.-.... ........... ..,pNj~_~..,."^O' :~='. .-.....---.