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the local share of Metro Flood Project costs. 2.6.1. It is is expected that property protected by the O-H-B levee will be included in said assessment district; however, the Diversion Authority intends for such property owners to be treated the same as other property owners within said district, and no special benefit is intended to be assigned to said property as a result of the construction of the O-H-B Levee. 2.6.2. It is expected that the property within the area protected by the O-H-B Levee will be assessed for costs of maintenance and related administration of the levee. 2.7 Timing of Design and Construction. It is the intent of the Diversion Authority that the O-B-H Levee be designed beginning in 2013 with acquisition of land beginning as soon as the routing of the levee is finalized and the land for the project is identified and with construction to commence in 2014. It is further intended, therefore, that design and construction of the O-B-H Levee may commence before the Metro Flood Project, as a whole, receives authorization from the United States Congress. This will be contingent upon successful negotiation with the Corps of a memorandum of understanding that will allow the O-B-H Levee to be constructed prior to said authorization. 4 2.8 Purchase of Existing Levee Material. To the extent that the existing (and recently constructed) flood levee along Schnell Drive and elsewhere within the city will be no longer needed because of the construction of the O-B-H Levee, the Diversion Authority will purchase from the City of Oxbow the earth material from said existing levee at an appropriate value to be agreed between the parties, said funds to allow the City of Oxbow to either reduce the assessments for the prior levee or to use funds otherwise as it may deem appropriate. 3. OXBOW RESPONSIBILITIES. 3.1 The City of Oxbow will be responsible for making the arrangements for development of land necessary to accommodate the replacement lots (again, estimated at 40 such lots), including arrangements for annexation of such land or lands into the City of Oxbow as the City may deem appropriate; entry into a Development Agreement with one or more developers, or the like. The City of Oxbow will be responsible for making arrangements for construction and installation of the public infrastructure to service said replacement lots. It is recognized that said development may occur in phases as may be deemed appropriate by the City of Oxbow or others. The City of Oxbow recognizes that the Diversion Authority will not be responsible for the financing of, or the cost of, installation of infrastructure servicing lands, parcels or lots that are in addition to the said replacement lots. The Diversion Authority and the City of Oxbow agree to coordinate with one another regarding payment of said infrastructure costs and, as may be necessary or appropriate, the public financing of such cost. 3.2. The City of Oxbow will be responsible for making arrangements with the Oxbow Golf and Country Club for the acquisition of replacement land for golf holes and for the design and construction of such holes. It is further recognized that the construction of the levee may allow some existing golf holes to remain in place so long as certain modifications to the hole are made to mitigate against the impact of construction. Such modifications are to be included within said design and construction cost paid by the Diversion Authority along with the holes to be completely replaced. GENERAL PROVISIONS. 4. The Diversion Authority may need to utilize public financing (i.e. via sale of tax-exempt municipal bonds) to fund some or all of the obligations described in this memorandum and the proceeds of such public financing may need to be restricted to authorized public uses. The parties understand that certain restrictions on uses of funds and the operations of facilities financed by such funds may need to be established as part of the public financing process, and agree to cooperate and coordinate with one another for such purposes. 5. The parties recognize that this agreement, and the terms hereof, are contingent upon and subject to the authority and limitations thereof, if any, of the Corps to approve the design and construction of the O-B-H Levee being proposed. 6. The parties recognize and agree that this Memorandum of Understanding may need to be supplemented by more detailed arrangements in order for the concepts and agreements contained 5 herein to be implemented and the parties agree to coordinate with each other and to work together to do so. [The remainder of this page intentionally left blank.] Signature Page – Diversion Authority METRO FLOOD DIVERSION BOARD OF AUTHORITY Dated: ____________________ By: _________________________________________ Darrell Vanyo, Chairman of the Board Signature Page – City of Oxbow CITY OF OXBOW, a North Dakota municipal corporation Dated: ___________________ By: _________________________________________ James Nyhoff, Mayor ATTEST: __________________________________ City Auditor Public Outreach Committee Report For Diversion Authority – January 10, 2013 • Oxbow/Hickson/Bakke Ring Levee Community Meeting: The Diversion Authority and Corps of Engineers held a meeting for Oxbow, Hickson and Bakke-area landowners on Tuesday, January 8th at Bennett Elementary School in Fargo. The meeting focused on the specific properties impacted and sought local input on whether a ring levee is the preferred course of action. Individual landowner meetings were also held throughout the week. • Preparations are underway to provide educational material on the Diversion Project at the upcoming North Dakota Legislative Open House on February 12th at 4pm in the Brynhild Haugland Room at the State Capitol Building in Bismarck. • Initial planning is underway to provide educational material for a Minnesota Legislative Open House. • FMDiversion.com: • Video of the Oxbow/Hickson/Bakke Ring Levee Community Meeting has been posted in the Video section of the website. • Several answers have been posted in the FAQ section to recent questions posed about the Diversion Project by readers of the website. • An internal review, updating and condensing of the website is underway with the goal of making information more accessible to the public. • E-Newsletter Update: The next edition of the Diversion Dialogue E-Newsletter is scheduled to be distributed on Monday, January 14. We are planning to include the following articles: 1. Update on potential Board action regarding the proposed ring levee for the Oxbow area. 2. A summary of the Oxbow/Hickson/Bakke Ring Levee Community Meeting and links to video from the meeting. 3. A preview of the Diversion topics to be discussed at the North Dakota Legislative Open House on February 12th at 4pm in the Brynhild Haugland Room at the State Capitol Building in Bismarck. 4. Agricultural update. A report on the Request for Proposals for economic evaluation of the value of a temporary water retention easement payment to compensate landowners for the impacts of water retention from project operation. 5. USACE Update: The USACE will provide an update on their activities related to the project. Item 7c. Item 8.