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N. The CUP does not require the School District to pay for all improvements to <br />the Property; it simply requires all the improvements to be constructed as a <br />prerequisite to the occupation and use of the Property. <br />O. At the time of the City Council's consideration of the land use applications <br />discussed above, including the CUP, the School District's representatives were <br />provided with all staff reports and the proposed CUP. The School District did not <br />make objection to the CUP or any of its conditions. <br />IV. IMPROVEMENTS SINCE CONDITIONAL USE APPROVAL <br />A. The Developer and the City negotiated a Developer's Agreement dated <br />October 22, 2018, which required the Developer to build the water and sewer <br />infrastructure and bring it to the Property. <br />B. The School District closed on its purchase of the Property on October 23, <br />2018. The CUP was granted months before the closing and the School District was <br />aware of its requirements. The provision of water and sewer to the Property by the <br />Developer was contemplated in the Purchase Agreement between the School <br />District and the Developer. The City was not a party to the Purchase Agreement. <br />C. By e-mail dated April 16, 2019, the City Administrator stated, "We are <br />allowing you to work under the IUP (Interim Use Permit) as referenced in Condition <br />#2 of the CUP but, that expires this year. I honestly don't think Terry is going to <br />have water and sewer to you by the end of the year so then you would not be in <br />compliance with the terms of the CUP and you wouldn't be able to operate it as a <br />school bus garage." (Ex. 19, p. 2.) (emphasis added.) <br />D. On July 11, 2019, the School District entered into a Site Improvement <br />Agreement with the City to govern its construction of improvements required of the <br />School District by the CUP. The Site hnprovement Agreement did not address or <br />approve of the installation of a fire suppression system, fire alarm system, including <br />heat and smoke detection, and a temporary septic system. (Ex. 31) <br />E. On July 16, 2019, the City Administrator e-mailed the School District, and <br />noted in relevant part: <br />Perhaps we should touch base on Terry's project and the status of water and <br />sewer being extended to the site. Terry has asked for the City Council to <br />review a change to the plans at their August work session. This may result in <br />water and sewer not being extended this year. I wanted to make sure you <br />were aware of this before moving ahead with the millions of dollars in <br />improvements that may not be operational without the extension of water <br />and sewer. (Ex. 19, p. 1.) <br />F. Despite the City Administrator's two warnings, the School District <br />proceeded with improvements contemplated by the Site Improvement Agreement <br />__ __ and those not contemplated by the S_ite_Improvement Agreement._ <br />