Report for City Council June 29, 2004...

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:1. That the Memorandum of Agreement

(MOA) between Enoch Community Development Corporation and the City of Edmonton (Attachment 2 of the June 16, 2004, Planning and Development Department report 2004PDP026), be approved.

2. That the City Manager be authorized to execute the MOA on behalf of the City of Edmonton.

Report Summary This report provides an update, as of

June 2, 2004, on the status of licensing approvals and negotiations between the City Administration and the Enoch Cree Nation, their partners and consultants (Enoch) for the connection of City services to the proposed Entertainment Resort and Casino Development to be located adjacent to the western boundary of the City at 79th Avenue and 215th Street (the Enoch Entertainment Complex).

This report also includes the Memorandum of Agreement (MOA) which is the Master Servicing Agreement between the City and the Enoch Community Development Corporation (Enoch CDC) containing the terms and conditions for the provision of roadway access, sewer, water and fire protection services to the Enoch Entertainment Complex.

Previous Council/Committee ActionPrevious Council and Committee Action is outlined in Attachment 1.

Report The City Administration and Enoch

CDC have negotiated and agreed on the terms and conditions of the Master Servicing Agreement.

Enoch CDC is a wholly owned subsidiary of the Enoch Cree Nation No. 440, a First Nation having the status of a “Band” under the Indian Act.

Since approval of the Memorandum of Understanding at the August 26, 2003, Council meeting, the administration has met several times to negotiate an MOA with Enoch CDC. There have been meetings with the Department of Indian and Northern Affairs Canada and residents from Lewis Estates and the Grange to ensure that federal environmental requirements and community concerns are incorporated into the MOA. The MOA is enclosed with this report as Attachment 2.

Project Status:

1. Environmental Assessment: The Enoch Resort project is located on reserve lands which, in order to be commercially developed, have been specially designated and are then leased from the Federal Department of Indian and Northern Affairs. A final requirement to obtain their Head Lease, was that Enoch CDC complete an environmental assessment in accordance with the Canadian Environmental Assessment Act (CEAA). Enoch submitted an Environmental Screening Report in accordance with the CEAA requirements which included a Public consultation

Routing: Executive Committee, City CouncilDelegation: L. Benowski/ K. MamczaszWritten By: K. MamczaszJune16, 2004 Planning & Development DepartmentFile: 2004PDD026 (Page 1 of 6)


process. The City participated in that public consultation process and submitted comments on the Environmental Screening Report. On January 14, 2004 the Department of Indian and Northern Affairs Canada (INAC) approved the Environmental screening report subject to a number of detailed environmental conditions. The INAC approval is enclosed as Attachment 3.

2. Casino Licence: The Alberta Gaming and Liquor Commission (AGLC) announced on April 22, 2004, that the casino application by the Enoch Cree Nation is at now at Step Eight, the final step of eight formal steps in the AGLC approval process to obtain a casino licence. Step eight is as follows: “If all requirements for a gaming facility are met (federal and provincial legislation, regulation, and policies, and municipal requirements, permits, licences or authorizations) the AGLC will make a recommendation to the Board respecting the issuance of a casino facility licence to the successful applicant.” Approval of the MOA is one of the requirements of the AGLC approval.

3. Meetings: The Administration provided regular updates of its negotiations and has met with the community representatives from the West End communities of Lewis Estates, Parkland and the Grange, The Administration met with INAC to discuss its approval of the Environmental Screening Report. Numerous negotiation meetings were held with Enoch and their consultants and the City administration.

4. Memorandum of Agreement: The negotiated Memorandum of Agreement (MOA) is attached as Attachment 2. The MOA contains the following important sections in addition to the City’s standard contract clauses:a. Limitations : This agreement is

specifically limited to the provision of municipal services to the portion of the designated lands being developed for the Enoch Cree Nation Entertainment Resort and Casino Complex.

b. Term : The MOA is for a term of 49 years, which is the duration of the Head Lease of the designated lands.

c. Water Supply : Enoch CDC has agreed to construct and extend a water supply line to the Enoch Development from the Epcor Water Services Inc. watermain on 207 Street and 79 Avenue. Water will be provided by a separate commercial water supply agreement with Epcor Water Services Inc.

d. Sanitary Sewers : Enoch CDC will construct an onsite sanitary sewer lift station and also construct sanitary forcemain along 79th Avenue connecting to a City trunk manhole located in the Transportation and Utility Corridor near the future overpass on Anthony Henday Drive and 79 Avenue. All construction is at Enoch CDC’s sole cost. Enoch CDC will pay all assessments (Expansion Assessments) in order to connect to the City sewer and will then pay monthly Sanitary Sewer use charges

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in accordance with the City Drainage Tariff. Enoch CDC will retain ownership of the lift station and forcemain and will operate them at their sole cost. Any future relocation of the Enoch Forcemain, if rerquired will be at Enoch CDC’s sole cost. Enoch CDC will also pay a use and occupancy fee for the alignment of the Enoch forcemain on City lands.

e. Stormwater Management : The natural drainage from this site flows onto City Lands. Onsite stormwater management will limit the stormwater flowing onto City lands to pre-development flows. Enoch CDC will be responsible for stormwater quality and erosion protection for the water from the project lands flowing onto City lands. Enoch CDC will pay the City’s monthly land drainage utility charge to compensate the City for downstream accommodation of storm flows.

f. Roadways : Enoch CDC agrees to construct two new lanes of 79 Avenue from 207 to 215 Street as well as road improvements on 215 Street south of 79 Avenue and also intersection improvements at 215 Street and 79 Avenue. In order to construct the roadway improvements, Enoch CDC needs to acquire some rights of way land along 215 St. and 79th Ave. from the adjacent land owners. Enoch CDC has agreed to acquire this land at their sole cost. Traffic Monitoring will be done by Enoch CDC in

cooperation with the City to ensure that if certain “trigger” traffic volumes are exceeded, measures such as additional lane construction or additional signalization will be provided. Enoch CDC has also agreed to a maintenance contribution of $20,000 per year towards the maintenance of Winterburn Road during construction of the Casino and Entertainment Complex.

g. Emergency Services : Enoch CDC has requested fire rescue services from the City of Edmonton. The City’s Emergency Response Department (ERD) has identified that the West End ERD Station #19 which also services West Edmonton Mall would be responsible for providing services to the Enoch Project. In order for Fire Rescue to include the Enoch Project within its fire rescue service catchment area, Enoch CDC has agreed to a number of requirements within the Master Servicing Agreement including: Design and construction of the

buildings and facilities for the Entertainment Resort and Casino Development must be equal to or better than the City of Edmonton Fire Protection Standards including access, construction materials, sprinkler systems and monitoring.

Enoch CDC must provide an annual contribution to ERD for the enhancement of resources including staff and equipment equivalent to one additional fully

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staffed fire truck such that the Enoch Project can be added into the City’s service area.

Water supply must be adequate and located properly throughout the site.

The City must receive delegated authority from the Enoch First Nation to operate within the site including ongoing inspection and enforcement of fire safety requirements.

Enoch CDC must enforce and maintain proper access and fire lanes.

The City will not be liable in the event that equipment and staff are not available for a response due to other calls.

Ambulance Services are not included in the agreement.

h. Method of Payment and Security :The City has made arrangements with Epcor Water Services Inc. to administer the collection of all utility charges including water, sewer and drainage charges. Enoch CDC will pay all ongoing fees plus an advance payment of fees for the next six months. The purpose of the advance payment is to provide security in the event of a non-payment or dispute. A six-month pre-payment was considered sufficient to allow for any disputes or non payment issues to be resolved and in the event they are not resolved, termination of the agreement can be initiated. Enoch CDC will also provide a 100% Letter of Credit Security for construction of

all infrastructure on City lands. This will ensure that the infrastructure is built to City Standards and completed before the City assumes any responsibility for it.

i. Compliance with City Bylaws :Enoch CDC has agreed to comply with all City bylaws which specifically relate to the services being provided such as the Sewers Use Bylaw, the City of Edmonton Fire and Ambulance Bylaw, the Noise Bylaw and the Regulation Of Work And Equipment Installation On City Lands Bylaw.

j. Arbitration : Standard arbitration and dispute resolution clauses have been included in the MOA.

k. Community Mitigation Measures : There are a number of mitigation measures included within the MOA to mitigate the impacts of this project on the adjacent residential neighbourhoods. Enoch CDC has undertaken to mitigate some impacts on the adjacent communities with measures that include:

Location of the facility on the western edge portion of the designated lands to provide at least 500m separation from the project buildings to the nearest existing residence (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).

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Construction of the Entertainment Complex such that the height will not exceed 9 storeys. Noisy components such as the ice plant will be located to minimize noise to the existing residents. The lighting will installed and directed such that it will minimize its impacts on adjacent properties.

A landscaped buffer is proposed at the Northeast corner of the site.

Rubberized asphalt will be used in the 79th Avenue road surface to reduce noise.

Traffic Monitoring will be done to ensure that if certain traffic volumes are exceeded, measures such as additional lane construction or additional signalization will be provided.

l. Compliance with City No-Smoking Requirements:On October 7, 2003 City Council passed a the following motion: 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. The Administration presented this requirement to the Enoch CDC during negotiations. Enoch has rejected this request, stating that the City has no jurisdiction over reserve lands and that the request is a bid to erode the sovereignty of the Enoch

Cree Nation government over their lands. Enoch has agreed to provide 70% of the facility as non-smoking. The response of the Enoch Cree Nation is attached as Attachment 4.

Budget/Financial ImplicationsThere is a postive impact for the City of Edmonton because of the additional funded resources for ERD.

Justification of Recommendation1. This Memorandum of Agreement is in

conformance with the terms and conditions of the Memorandum of Understanding between The City and Enoch CDC which was approved by City Council on August 26, 2003.

2. Authorizing the City Manager to execute the MOA expedites this matter.

Background Information Attached1. Previous Council Actions2. The Memorandum of Agreement 3. The Department of Indian and Northern

Affairs Canada (INAC) approval of the Enoch Environmental Screening Report.

4. The response from the Enoch Cree Nation to the City of Edmonton’s request to make the proposed Entertainment Resort and Casino Development 100% non-smoking by December 31, 2006.

Others Approving this Report D. Kloster, General Manager,

Community Services Department W. D. Burn, General Manager, Asset

Management & Public Works

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R. Millican, General Manager, Transportation & Streets Department

R. Wolsey, Fire Chief, Emergency Response

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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 andD. 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


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


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 3

January 14, 2004 Department of Indian and Northern Affairs Canada (INAC) approval of the Enoch Environmental Screening Report


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Attachment 4

Response of the Enoch Cree Nation to City of Edmonton Request for 100% Non-Smoking


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