SOUTH BEND, Ind. (AP) – A Native American tribe in northern Indiana that wants to build a village and casino in South Bend has reached agreements with the city on how to pay for needed infrastructure improvements and other funding it will provide.

The Pokagon Band of Potawatomi Indians has agreed to pay $400,000 to replace and upgrade sewer and water services to the village’s 166-acre development site.

In the second agreement, which still must be approved by the South Bend Common Council, the Pokagon Band has agreed annual payments equal to 2 percent of gambling profits. Half will be paid directly to the city’s general fund, with the rest going to the South Bend Redevelopment Commission.

The amount the city would receive depends on the number of games the casino has. If it has between 850 and 1,699, the city will receive at least $ 1million. If it has more than 1,700 games, the city will receive at least $2 million.

Both agreements have already been approved by the Pokagon Band Tribal Council and the Pokagon Gaming Authority Board of Directors.

“These are historic agreements for the City of South Bend with the region’s original inhabitants that will infuse millions of dollars into the economy and create hundreds of new jobs,” South Bend Mayor Pete Buttigieg said. “It is extraordinary to reach an agreement that will not only support the economy, but also provide much needed funding for community projects, local organizations and our schools.”

City and tribal officials said there is no legal requirement by federal or state government for the Pokagon Band to reach such agreements with the city.

John Warren, chairman of the Pokagon Band of the Potawatomi Indians, said the agreements will “serve as a bridge to greater cooperation and economic opportunity for Pokagon citizens, the city of South Bend and area residents.”

The federal Bureau of Indian Affairs is reviewing an environmental study of the tribe’s trust land application. Construction on the tribal village and Four Winds Casino cannot begin until the application is approved.