After much discussion, the Pentacles seemed to be coming to a decision. Ella seemed to have the best solution.
"You know, there is no reason we can't claim both. It is natural for a Palace to have a nearby village, both to supply it and for visitors.
If we build the Royal Palace in the east, we can make a traditional castle for the sun to rise over, and still have our vineyards and a mountain city built on the western slopes. We can connect them underground at either end of the valley, crossing under the river instead of the lake, so if there is a disaster we don't accidentally drain the lake.
Then we will get the added benefit of getting to look over a beautiful village from the Palace, and the servants families could stay nearby."