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<br />period of ten years after substantial completion of the Phase 1 Facilities (the "Phase 1 Reservation <br />Period"), the following capacity (the "Phase 1 Reserved Capacity") for each of the Parties in the Phase <br />1 Facilities for use by the Parties on their respective properties, in the City's wastewater service units <br />(SU) determined by using the City's wastewater impact fee service unit calculations formula in effect <br />as of September 30, 2002: <br /> <br />Party Reserved Capacity (SU) <br />Bennett 1,100 <br />Perry 1,200 <br />Nash 35 <br />Blanco 1,080 <br />Interstate 75 <br />Sun 217 (in addition to the 306 SUs <br /> in use) <br /> <br />The Phase 1 Reserved Capacity for each Party in this table is preliminary in nature. The Parties agree <br />to make any final adjustments to their respective Phase 1 Reserved Capacities by written notice to the <br />Phase 1 Engineer and the other Parties no later than October 10, 2003. The Phase 1 Engineer will <br />modify the table and the attached Exhibit C-l with respect to the cost-sharing percentages of the Parties, <br />and provide a copy of the modified table and Exhibit C-l to all of the Parties. The Phase 1 Reserved <br />Capacity for each Party will be reduced for each City wastewater impact fee service unit issued by the <br />City to that Party for use of the Phase 1 Facilities, and the resulting Phase 1 Reserved Capacity will be <br />deemed the "Adjusted Phase 1 Reserved Capacity" for that Party. The City agrees to honor requests by <br />a Party to connect to the Phase 1 Facilities to the extent of the Party's Adjusted Phase 1 Reserve <br />Capacity. In order to protect the right of each Party to its Phase 1 Reserved Capacity in the Facilities, <br />the City agrees to verify that sufficient Adjusted Phase 1 Reserve Capacity for the City remains in the <br />Phase 1 Facilities to serve a request to connect to the Phase 1 Facilities by a non-party to this <br />Agreement, or by a Party to the extent the request exceeds the Party's Adjusted Phase 1 Reserved <br />Capacity, before approving the request. To the extent that any such request exceeds the City's Adjusted <br />Phase 1 Reserve Capacity, the City agrees to deny the request. The City may provide alternative means <br />for wastewater service for persons whose wastewater service requests are denied under this paragraph. <br /> <br />1.8. Contingency for Development Approvals - Phase 1 Project. <br />A. The tract of property owned by each of the Parties and intended to be served by the Phase 1 <br />Facilities is vacant and undeveloped, and is subject to subdivision platting and zoning approvals (as <br />to tracts in the city limits) by the City that will affect the use of the property and the need for utility <br />facilities. The Parties each agree to file all required applications for such approvals, and to pursue <br />the approval of the applications with their best efforts. The City agrees to process these applications <br />in accordance with applicable laws and ordinances and to render decisions on the applications in <br />a timely manner. In the event that a platting or zoning approval requested by a Party is fmally denied <br />or is not approved by the City prior to completion ofthe Phase 1 Project, that Party may exercise <br />one of the following options: <br />1. If the Phase 1 Project Manager has not yet executed the construction contract for the Phase <br />1 Project, the Party may withdraw from this Agreement by giving notice to the other Parties. <br />The withdrawal will take effect ten days after the date the Party delivers the notices to the other <br />Parties. Upon any such withdrawal, A) all of the Parties will be responsible for payment of their <br /> <br />5 <br />