Report for City Council June 29, 2004 Meeting

Agenda Item No.: E.1.j.

Administration Report on Negotiations for Master Servicing Agreement to provide Services to Enoch Cree Nation Entertainment Complex and Casino

Recommendation: Report 1. That the Memorandum of Agreement  The City Administration and Enoch (MOA) between Enoch Community CDC have negotiated and agreed on the Development Corporation and the City terms and conditions of the Master of Edmonton (Attachment 2 of the June Servicing Agreement. 16, 2004, Planning and Development  Enoch CDC is a wholly owned Department report 2004PDP026), be subsidiary of the Enoch Cree Nation No. approved. 440, a First Nation having the status of a 2. That the City Manager be authorized to “Band” under the Indian Act. execute the MOA on behalf of the City  Since approval of the Memorandum of of Edmonton. Understanding at the August 26, 2003, Council meeting, the administration has Report Summary met several times to negotiate an MOA  This report provides an update, as of with Enoch CDC. There have been June 2, 2004, on the status of licensing meetings with the Department of Indian approvals and negotiations between the and Northern Affairs Canada and City Administration and the Enoch Cree residents from Lewis Estates and the Nation, their partners and consultants Grange to ensure that federal (Enoch) for the connection of City environmental requirements and services to the proposed Entertainment community concerns are incorporated Resort and Casino Development to be into the MOA. The MOA is enclosed located adjacent to the western boundary with this report as Attachment 2. of the City at 79th Avenue and 215th Street (the Enoch Entertainment Project Status: Complex).  This report also includes the 1. Environmental Assessment: The Enoch Memorandum of Agreement (MOA) Resort project is located on reserve lands which is the Master Servicing which, in order to be commercially Agreement between the City and the developed, have been specially Enoch Community Development designated and are then leased from the Corporation (Enoch CDC) containing Federal Department of Indian and the terms and conditions for the Northern Affairs. A final requirement to provision of roadway access, sewer, obtain their Head Lease, was that Enoch water and fire protection services to the CDC complete an environmental Enoch Entertainment Complex. assessment in accordance with the Canadian Environmental Assessment Act (CEAA). Enoch submitted an Previous Council/Committee Action Environmental Screening Report in Previous Council and Committee Action is accordance with the CEAA requirements outlined in Attachment 1. which included a Public consultation

Routing: Executive Committee, City Council Delegation: L. Benowski/ K. Mamczasz Written By: K. Mamczasz June16, 2004 Planning & Development Department File: 2004PDD026 (Page 1 of 6) Administration Report on Negotiations for Master Servicing Agreement to provide Services to Enoch Cree Nation Entertainment Complex and Casino

process. The City participated in that 4. Memorandum of Agreement: The public consultation process and negotiated Memorandum of Agreement submitted comments on the (MOA) is attached as Attachment 2. Environmental Screening Report. On The MOA contains the following January 14, 2004 the Department of important sections in addition to the Indian and Northern Affairs Canada City’s standard contract clauses: (INAC) approved the Environmental a. Limitations: This agreement is screening report subject to a number of specifically limited to the provision detailed environmental conditions. The of municipal services to the portion INAC approval is enclosed as of the designated lands being Attachment 3. developed for the Enoch Cree Nation 2. Casino Licence: The Alberta Gaming Entertainment Resort and Casino and Liquor Commission (AGLC) Complex. announced on April 22, 2004, that the casino application by the Enoch Cree b. Term: The MOA is for a term of 49 Nation is at now at Step Eight, the final years, which is the duration of the step of eight formal steps in the AGLC Head Lease of the designated lands. approval process to obtain a casino c. Water Supply: Enoch CDC has licence. Step eight is as follows: “If all agreed to construct and extend a requirements for a gaming facility are water supply line to the Enoch met (federal and provincial legislation, Development from the Epcor Water regulation, and policies, and municipal Services Inc. watermain on 207 requirements, permits, licences or Street and 79 Avenue. Water will be authorizations) the AGLC will make a provided by a separate commercial recommendation to the Board respecting water supply agreement with Epcor the issuance of a casino facility licence Water Services Inc. to the successful applicant.” Approval of the MOA is one of the requirements of d. Sanitary Sewers: Enoch CDC will the AGLC approval. construct an onsite sanitary sewer lift station and also construct sanitary 3. Meetings: The Administration provided forcemain along 79th Avenue regular updates of its negotiations and connecting to a City trunk manhole has met with the community located in the Transportation and representatives from the West End Utility Corridor near the future communities of Lewis Estates, Parkland overpass on Anthony Henday Drive and the Grange, The Administration met and 79 Avenue. All construction is at with INAC to discuss its approval of the Enoch CDC’s sole cost. Enoch CDC Environmental Screening Report. will pay all assessments (Expansion Numerous negotiation meetings were Assessments) in order to connect to held with Enoch and their consultants the City sewer and will then pay and the City administration. monthly Sanitary Sewer use charges

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in accordance with the City Drainage cooperation with the City to ensure Tariff. Enoch CDC will retain that if certain “trigger” traffic ownership of the lift station and volumes are exceeded, measures forcemain and will operate them at such as additional lane construction their sole cost. Any future relocation or additional signalization will be of the Enoch Forcemain, if rerquired provided. Enoch CDC has also will be at Enoch CDC’s sole cost. agreed to a maintenance contribution Enoch CDC will also pay a use and of $20,000 per year towards the occupancy fee for the alignment of maintenance of Winterburn Road the Enoch forcemain on City lands. during construction of the Casino and Entertainment Complex. e. Stormwater Management: The natural drainage from this site flows g. Emergency Services: Enoch CDC onto City Lands. Onsite stormwater has requested fire rescue services management will limit the from the City of Edmonton. The stormwater flowing onto City lands City’s Emergency Response to pre-development flows. Enoch Department (ERD) has identified CDC will be responsible for that the West End ERD Station #19 stormwater quality and erosion which also services West Edmonton protection for the water from the Mall would be responsible for project lands flowing onto City providing services to the Enoch lands. Enoch CDC will pay the Project. In order for Fire Rescue to City’s monthly land drainage utility include the Enoch Project within its charge to compensate the City for fire rescue service catchment area, downstream accommodation of Enoch CDC has agreed to a number storm flows. of requirements within the Master Servicing Agreement including: f. Roadways: Enoch CDC agrees to construct two new lanes of 79  Design and construction of the Avenue from 207 to 215 Street as buildings and facilities for the well as road improvements on 215 Entertainment Resort and Casino Street south of 79 Avenue and also Development must be equal to or intersection improvements at 215 better than the City of Edmonton Street and 79 Avenue. In order to Fire Protection Standards construct the roadway including access, construction improvements, Enoch CDC needs to materials, sprinkler systems and acquire some rights of way land monitoring. along 215 St. and 79th Ave. from the  Enoch CDC must provide an adjacent land owners. Enoch CDC annual contribution to ERD for has agreed to acquire this land at the enhancement of resources their sole cost. Traffic Monitoring including staff and equipment will be done by Enoch CDC in equivalent to one additional fully

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staffed fire truck such that the all infrastructure on City lands. This Enoch Project can be added into will ensure that the infrastructure is the City’s service area. built to City Standards and  Water supply must be adequate completed before the City assumes and located properly throughout any responsibility for it. the site. i. Compliance with City Bylaws:  The City must receive delegated Enoch CDC has agreed to comply authority from the Enoch First with all City bylaws which Nation to operate within the site specifically relate to the services including ongoing inspection and being provided such as the Sewers enforcement of fire safety Use Bylaw, the City of Edmonton requirements. Fire and Ambulance Bylaw, the  Enoch CDC must enforce and Noise Bylaw and the Regulation Of maintain proper access and fire Work And Equipment Installation lanes. On City Lands Bylaw.  The City will not be liable in the j. Arbitration: Standard arbitration and event that equipment and staff dispute resolution clauses have been are not available for a response included in the MOA. due to other calls. k. Community Mitigation Measures: Ambulance Services are not included There are a number of mitigation in the agreement. measures included within the MOA h. Method of Payment and Security: to mitigate the impacts of this project The City has made arrangements on the adjacent residential with Epcor Water Services Inc. to neighbourhoods. Enoch CDC has administer the collection of all utility undertaken to mitigate some impacts charges including water, sewer and on the adjacent communities with drainage charges. Enoch CDC will measures that include: pay all ongoing fees plus an advance  Location of the facility on the payment of fees for the next six western edge portion of the months. The purpose of the advance designated lands to provide at payment is to provide security in the least 500m separation from the event of a non-payment or dispute. project buildings to the nearest A six-month pre-payment was existing residence (no less than considered sufficient to allow for any 42 meters from the north disputes or non payment issues to be boundary of the Enoch First resolved and in the event they are not Nation Reserve and no less than resolved, termination of the 380 meters from the east agreement can be initiated. Enoch boundary). CDC will also provide a 100% Letter of Credit Security for construction of

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 Construction of the reserve lands and that the request Entertainment Complex such that is a bid to erode the sovereignty the height will not exceed 9 of the Enoch Cree Nation storeys. Noisy components such government over their lands. as the ice plant will be located to Enoch has agreed to provide 70% minimize noise to the existing of the facility as non-smoking. residents. The lighting will The response of the Enoch Cree installed and directed such that it Nation is attached as Attachment will minimize its impacts on 4. adjacent properties. Budget/Financial Implications  A landscaped buffer is proposed at the Northeast corner of the There is a postive impact for the City of site. Edmonton because of the additional funded resources for ERD.  Rubberized asphalt will be used in the 79th Avenue road surface to Justification of Recommendation reduce noise. 1. This Memorandum of Agreement is in  Traffic Monitoring will be done conformance with the terms and to ensure that if certain traffic conditions of the Memorandum of volumes are exceeded, measures Understanding between The City and such as additional lane Enoch CDC which was approved by construction or additional City Council on August 26, 2003. signalization will be provided. 2. Authorizing the City Manager to execute l. Compliance with City No-Smoking the MOA expedites this matter. Requirements: Background Information Attached On October 7, 2003 City Council passed a the following motion: 1. Previous Council Actions That Administration negotiate 2. The Memorandum of Agreement with Enoch Cree Nation to 3. The Department of Indian and Northern include in the Master Servicing Affairs Canada (INAC) approval of the Agreement for the proposed Enoch Environmental Screening Report. entertainment complex and casino, a reduction in the 4. The response from the Enoch Cree agreed-to allowed smoking area Nation to the City of Edmonton’s of 30% to 100% non-smoking by request to make the proposed December 31, 2006. The Entertainment Resort and Casino Administration presented this Development 100% non-smoking by requirement to the Enoch CDC December 31, 2006. during negotiations. Enoch has rejected this request, stating that the City has no jurisdiction over

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Others Approving this Report  D. Kloster, General Manager, Community Services Department  W. D. Burn, General Manager, Asset Management & Public Works  R. Millican, General Manager, Transportation & Streets Department  R. Wolsey, Fire Chief, Emergency Response

(Page 6 of 6) Attachment 1

Previous Council and Committee Action

Previous Council Actions

 At the July 9, 2003, Executive Committee meeting, the following motion was passed: That the June 11, 2003, Planning and Development Department report be referred back to Administration to report back to the August 20, 2003, Executive Committee meeting on the discussion and outcome of the July 18, 2003, meeting with the community, MLAs, federal representatives and Councillors.

 At the July 9, 2003, Executive Committee meeting, the Committee heard from R. Morin; J. A. Agrios, Miller Thomson; H. Kuehne, Associated Engineering Alberta Ltd.; R. Gibbs, Gibbs & Brown Landscape Architects; Senator T. Chalifoux; C. Twinn; M. Bateman; I Morin; H. Mustus; D. Meyer; Chief Elect R. Morin, Enoch Cree Nation; B. Maskell, MLA, Edmonton Meadowlark; C. Treen, Lewis Estates Community League; H. Coon; P. Doroshuk; M. McCullough; I Rust; T. Wagner; B. Hughson and D. Kuchelyma, President, Edmonton Federation of Community Leagues.

 At the June 25, 2003, Executive Committee meeting, the June 11, 2003, Planning and Development Department report was postponed to the July 9, 2003, Executive Committee meeting, time specific at 9:30 a.m.

 At the June 25, 2003, Executive Committee meeting, the following motion was passed: That a non-statutory public hearing be held at the July 9, 2003, Executive Committee meeting, in Council Chamber, on the Administration Update Report on Negotiations for Servicing of Proposed Enoch Cree Nation Entertainment Complex and Casino and that the following procedures be used: 1. The Office of the City Clerk will organize those wishing to address the Committee into panels of up to 14 individuals in each panel. 2. Administration will introduce the item. 3. The Committee will then hear from all speakers of a particular panel prior to Councillors asking questions. 4. Each presenter will have five minutes to address Committee. 5. Following each panel’s presentation, Councillors will be allowed one five-minute round of questions per panel. 6. After all panels have been heard, Councillors may ask questions of Administration. 7. Committee will then make motion(s) on the item.

Attachment 1 - Page 1 of 3 Attachment 1

Previous Council and Committee Action

 At the May 1, 2002, Executive Committee meeting, the following motion was passed: 1. That Administration continue discussions with the Enoch Developers with the intent of developing an agreement for services to the Enoch Project, limited to the scope outlined in the March 19, 2002, Planning and Development Department report and keeping in mind citizens’ concerns.

 At the November 26, 2002, City Council meeting, the following motion was passed: 1. That the Mayor send the letters (Attachments 1 and 2 of the October 15, 2002, Planning and Development Department report) to the Provincial Minister of Gaming, the Alberta Gaming and Liquor Commission, the Federal Minister of Department of Indian and Northern Affairs Canada (INAC), and the Department of INAC. 2. That the October 15, 2002, Planning and Development Department report be received for information. 3. That Administration continue negotiations using all lawful means to mitigate the impact of the development on City infrastructure and the neighbouring communities. 4. That Administration bring any proposed Memorandum of Understanding through Executive Committee to City Council for approval. 5. That the communities, in particular Lewis Estates and The Grange, be part of the ongoing discussion in the development of the Memorandum of Understanding (MOU).

 At the May 7, 2003, Executive Committee meeting, the following motion was passed: 1. That Administration address the issues raised in the May 5, 2003, letter from Lewis Estates Community League, with the exception of the references to legal opinions, when they report back to the May 21, 2003, Executive Committee meeting, and that this item be made time specific at 2:30 p.m.

 At the August 26, 2003, City Council meeting, the following motion was passed: 1. That the Memorandum of Understanding (MOU) between Enoch Community Development Corporation and the City of Edmonton (Attachment 1 of the August 7, 2003, Planning and Development Department report), be approved with the following amendments: a) Deleting the second bullet under the heading "Measures to Mitigate Community Concerns" and replacing it with the following: "Ensure that the building set-backs are no less than 42 meters from the north boundary of the Enoch First Nation Reserve and no less than 380 meters from the east boundary of the Enoch First Nation Reserve." b) Deleting the eighth bullet which reads: "Construct a barrier adjacent to….."

Attachment 1 - Page 2 of 3 Attachment 1

Previous Council and Committee Action

c) That Administration include appropriate dispute resolution and arbitration provisions in the final agreement. d) That the MOA/City Servicing Agreement be subject to all provincial and federal permits and approvals, inclusive of the environmental assessments, and any review or appeal processes. 2. That Administration be authorized to negotiate a Master Servicing Agreement for the Enoch Entertainment Resort and Casino.

That the August 7, 2003, Planning and Development Department report be received for information. That the Communities, in particular Lewis Estates and the Grange, receive regular updates on ongoing negotiations of the Master Servicing Agreement and that meetings between Administration and community representatives occur on a regular basis.

 At the October 7, 2003, City Council meeting, the following notice of motion was passed:

That Administration negotiate with Enoch Cree Nation to include in the Master Servicing Agreement for the proposed entertainment complex and casino, a reduction in the agreed-to allowed smoking area of 30% to 100% non-smoking by December 31, 2006.

Attachment 1 - Page 3 of 3 Attachment 3