Approval of this resolution would divide a single assessment within the MRCCID into nine assessments, based on the replatting of the property comprising the assessed area.  Modifying the assessment would allocate the unpaid assessment amount among the properties as follows: 

Assessment No. 11-01-001 (Lot 1) - $140,148.93
Assessment No. 11-01-002 (Lot 2)  - $568,977.09
Assessment No. 11-01-003 (Lot 3)  - $192,477.03
Assessment No. 11-01-004 (Lot 4)  - $107,249.29
Assessment No. 11-01-005 (Lot 5)  - $133,057.51
Assessment No. 11-01-006 (Lot 6)  - $73,369.97
Assessment No. 11-01-007 (Lot 7)  - $133,519.62
Assessment No. 11-01-008 (Lot 8)  - $1,203,955.47
Assessment No. 11-01-009 (Right of Way)  - $0.00

(Original Assessment - $2,552,754.91)

ADOPT RESOLUTION NO. 2022-2204 APPROVING THE MODIFICATION OF ASSESSMENT NUMBER 11 WITHIN THE MCDOWELL ROAD COMMERCIAL CORRIDOR IMPROVEMENT DISTRICT. (Jared Askelson, Deputy Finance Director)

All costs related to the assessment modification process including the application fee, District Engineer, and legal costs are paid in advance by the applicants.  Approval of the requested modifications will have no direct fiscal impact upon the City or the MRCCID.  In accordance with the current agreement with Globe Land Investors, LLC, Lots 3 and 4 will have their assessments paid prior to the City taking ownership.  No assessment will be placed on the right of way to be owned by the City.  Approval of this petition for modification will cause the creation of new assessment parcels with the total assessment amount unchanged.

The MRCCID was created in 2006 by Resolution 06-1098 to assist with the funding of public infrastructure related to the MRCCID and the development of a regional mall and retail center.  Improvement Bonds were issued in 2007 in the principal amount of $47,165,000, with principal and interest to be repaid through assessments apportioned to parcels within the MRCCID.  The Improvement Bonds were refinanced at a lower interest rate in 2018 with Refunding Bonds.

The original assessment parcels have previously been modified by City Council in 2010, 2018, and 2020 following petitions from the parcel landowners.  These assessments are generally modified as development plans are solidified and new parcels are created with Maricopa County.  As part of the assessment process the District Engineer reviews and certifies that the modification's effect on the ratio of fair market value between the original and amended parcels complies with the original intent of the assessment model.

Globe Land Investors, LLC, GSQ Goodyear Office, LLC and GSQ Goodyear Parking Garage, LLC, as owners of the property, have petitioned for a modification of a certain assessment of their property within the MRCCID.  The application for modification contains one existing parcel that would be split into nine distinct parcels and be allocated a fair share of the existing assessment based upon the original intent of the assessment model.  The ninth parcel, representing right of way, will receive no assessment.

If City Council approves the petition for modification, new assessment numbers and amounts will be assigned as proposed.  The modification of assessments has been reviewed and it is determined that the modification is in compliance with State law, City policies and the best interest of the City.