FARGO, N.D. (AP) — The group managing a Red River diversion project around the Fargo and Moorhead, Minnesota metropolitan area has signed an agreement to help a nearby city with costs for infrastructure that will be needed when the channel is built.

The Fargo-Moorhead Diversion Authority announced Wednesday that it has approved a deal with the city of Horace, located southwest of Fargo, to provide up to $5 million.

READ MORE: Kim Potter Trial, Dec. 2 Live Updates: 5 Jury Spots Yet To Be Filled

Horace is one of the areas most affected by an updated design that was needed in order to receive a permit from the Minnesota Department of Natural Resources. The new plan reduces the impact to Minnesota.

READ MORE: 2 Of 4 Charged In Greenvale Township Death Plead Guilty

The diversion authority continues to deal with other legal challenges to the $2.8 billion project. The Buffalo-Red River Watershed District recently denied a permit and is contesting the DNR permit.

MORE NEWS: St. Paul School Board Votes To Close 6 Schools Amid Declining Enrollment, Sustainability Concerns 

(© Copyright 2019 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)