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ITEM #: 5.
DATE: 09/26/2022

AI #:1060
CITY COUNCIL ACTION REPORT
 
SUBJECT: TERMINATING SECOND AMENDED AND RESTATED DEVELOPMENT AGREEMENT FOR LAS PALMAS AND REZONE APPROXIMATELY 273.71 ACRES LOCATED AT THE SOUTHWEST CORNER OF CITRUS ROAD AND ROOSEVELT STREET (LAS PALMAS)
 
STAFF PRESENTER(S): Christian M. Williams, Principal Planner

SUMMARY

This is a Public Hearing for and consideration of a request to rezone approximately 273.71 acres located at the southwest corner of Citrus Road and Roosevelt Street to Planned Area Development (PAD), which will consist of underlying zoning districts of R1-4 (Single Family Detached), R1-6 (Single Family Detached), C-2 (General Commercial) and PFD (Public Facilities District) with a PAD Overlay and consideration of termination of an existing development agreement for the property being rezoned. The development will be known as Las Palmas at West Goodyear.

Recommendation

1. ADOPT RESOLUTION NO. 2022-2268, TERMINATING SECOND AMENDED AND RESTATED DEVELOPMENT AGREEMENT FOR LAS PALMAS AND DECLARING AS PUBLIC RECORDS THOSE CERTAIN DOCUMENTS AND INCORPORATED BY REFERENCE IN ORDINANCE 2022-1557 FILED WITH THE CITY CLERK RELATED TO THE REZONING CASE FOR – LAS PALMAS AT WEST GOODYEAR.

2. ADOPT ORDINANCE NO. 2022-1557, CONDITIONALLY REZONING APPROXIMATELY 273.71 GROSS ACRES OF PROPERTY LOCATED AT THE SOUTHWEST CORNER OF CITRUS ROAD AND ROOSEVELT STREET TO BE KNOWN AS LAS PALMAS AT WEST GOODYEAR; AMENDING THE ZONING MAP OF THE CITY OF GOODYEAR; PROVIDING FOR NON-ABRIDGEMENT; PROVIDING FOR CORRECTIONS; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE; PROVIDING FOR PENALTIES; AND DIRECTING THE CITY CLERK TO RECORD A COPY OF THE ORDINANCE. (Christian M. Williams, Principal Planner)

FISCAL IMPACT

Although a fiscal impact analysis has not been conducted on this specific project, all new development will have an ongoing fiscal impact on the city. The development is responsible for construction of all infrastructure necessary to serve the site and will generate one-time revenue for the city through payment of permits, construction sales tax and development impact fees. Longer term fiscal impacts include increased demands for municipal services, the costs of which may or may not be offset by increased property values/tax levies, city sales tax, state shared revenues and the increased demand for commercial and retail development. Any areas that will be maintained by the city are constructed by the developer and then conveyed to the city two years after construction.

BACKGROUND AND PREVIOUS ACTIONS

The proposed rezoning includes 273.71 acres of property generally located at the southwest corner of Citrus Road and Roosevelt Street (the “Property”). The Property is located within West Goodyear and was zoned Las Palmas Final Planned Area Development in 2005 by Ordinance No. 2005-972. The original Las Palmas Final PAD approved in 2005 proposed the development of a maximum of 750 dwelling units on ten single family residential parcels with minimum lot sizes of 115’ x 175’, 100’ x 150’, 90 x 135’, 80’ x 125’, 70’ x 115’, 65’ x 115’ and 55’ x 115’ as well as two Court Home parcels, a Public Facilities District (PFD) parcel, and multiple parks parcels over the entire Property. The maximum number of residential units that may be developed on this property is stipulated to 750 units. The proposed rezoning includes as a stipulation, the requirement that the existing development agreement that governs the development of the Property be terminated.

STAFF ANALYSIS

Current Policy:
A rezoning request requires public review and vote by the Planning and Zoning Commission and the City Council. The proposed rezoning must be in conformance with the General Plan and should not adversely impact the surrounding area.

Details of the Request:
Rezoning:
The proposed rezoning seeks to replace the current Las Palmas Final Planned Area Development zoning with approximately 137.34 acres of Property rezoned to R1-4 with R1-4 Reduced Development Standards with a PAD Overlay; approximately 91.1 acres of the Property rezoned to R1-6 with R1-6 Reduced Development Standards with a PAD Overlay; approximately 38.16 acres of the Property rezoned to C-2 with a PAD Overlay; and approximately 7.11 acres of the Property rezoned to PFD for a development to be referred to collectively as Las Palmas at West Goodyear. The maximum number of dwelling units that will be developed on the Property will remain at 750, which is what is currently stipulated under the existing zoning.

A PAD Overlay is being requested as it will be utilized to codify the minimum level of residential amenities, connectivity and streetscape elements required in this large master-planned community as well as provide for buffers and lower intensity commercial uses within the larger commercial parcel. The PAD Overlay modifies the foregoing standards as follows:

All R1-4 lots within the development shall: have a minimum lot width of 40 feet; have a minimum depth of 95 feet; have a minimum square footage of 4,275 square feet; have a minimum rear setback of 15 feet; 30% of the lots shall be 45 feet wide; 50% of the lots shall be at least 115 feet deep and have a minimum rear setback of 20 feet; and have a useable, covered outdoor patio that should be at least 100 square feet covered, with a minimum interior dimension of eight feet covered (a covered patio may encroach up to five feet into a rear setback). The R1-4 lots will adhere to the R1-4 (Single Family Detached) zoning district as modified by the R1-4 Reduced Development Standards, and as further modified by the PAD Overlay.

All R1-6 lots within the development shall: have a minimum lot width of 55 feet; and have a useable, covered outdoor patio that should be at least 100 square feet covered, with a minimum interior dimension of eight feet covered (a covered patio may encroach up to five feet into a rear setback). The R1-6 lots will adhere to the R1-4 (Single Family Detached) zoning district as modified by the R1-4 Reduced Development Standards, and as further modified by the PAD Overlay.

The proposed rezoning requires additional amenity elements, connectivity elements and streetscape elements be provided. The proposed zoning ordinance, attached hereto, includes stipulations requiring these amenity elements, connectivity elements and streetscape elements be provided. They include the following: 

To meet the three required Amenity Elements, the development will:
· Adjacent to Community Amenity – Las Palmas is required to provide a 5-acre neighborhood park within ¼ mile walking distance of all dwellings. Las Palmas exceeds this requirement by providing an approximately 9-acre Central Park. However, this park would not be located within ¼ mile walking distance of all dwelling units. In order to satisfy the ¼ mile walking distance requirement, four additional Pocket Parks will be spread throughout the site, providing an additional approximately 4.5 acres of total park area with at least one of the parks being located within a ¼ mile walking distance of all lots. The Pocket Parks will provide additional improved park space in closer proximity to residents who live farther away from the Central Park.

Pocket Park West (1.6 acres) will be located in the R1-6 portion of the Project. Pocket Park East (1.4 acres), Pocket Park North (0.56 acres), and Pocket Park South (1 acre) will be located in the R1-4 Reduced portion. Each pocket park will include a tot lot, shade pavilion with a picnic table and barbeque grill, seating or lounge area, and walkways. Bicycle racks will be included at the Pocket Parks to accommodate non-motorized transportation within the community. In addition to the significant amenities in these park locations, detention basins adjacent to parks throughout the Project will be improved with benches and turf activity lawns to facilitate gatherings and recreation. In totality, Las Palmas will provide approximately 25% of the net residential area as open space, which significantly exceeds the 15% minimum requirement.

If a portion of the residentially zoned property is donated as a public elementary or middle school, then the Central Park may be reduced to seven acres.

· Additional Park Space – The Project includes an approximately 9-acre Central Park to provide accessible amenities throughout Las Palmas that appeal to residents of all ages.  In particular, the Central Park will include a centrally located pool area with parking, showers, a pool deck with lounge chairs, and restrooms; dining pavilion; athletic courts and fields; game areas; trail connections; walkways; and benches.  The Central Green within the Central Park will add an event pavilion for a variety of uses, including movie nights and holiday and birthday celebrations and a tot lot with a shade sail. Bicycle racks will be included at the Central Park and Pocket Parks to accommodate non-motorized transportation within the community.   

· Adjacent to Community Amenity – The developer shall construct an 8-foot wide decomposed granite trail along the RID Canal and the trail will connect from Citrus Road to Van Buren Street and provide a connection to the north-south trail along the western portion of the residential Project. The trail shall be owned and maintained by the HOA that is to be formed, but shall be available for use by the general public and an easement shall be dedicated to the City of Goodyear, in a form acceptable to the City Attorney or his/her designee, that allows for such public use.

In order to meet the four required Connectivity Elements, the development will:
· Be Considered In-fill – The Project is considered in-fill due to its location within the City of Goodyear.
· Trail System Connections – An eight-foot wide decomposed granite trail will run along the western portions of the residential Project and connect from Roosevelt Street to the future RID Canal trail. This external trail will connect the Project to the greater current and future trail systems in Goodyear and Maricopa County. The trail shall remain ungated and open to the public and provide a connection to Citrus Road and the future RID Canal Trail. At least one connection from the residential portions of the development shall connect to this western north-south trail.
· Smaller Blocks – The block lengths within the R1-4 (Single Family Detached) Residential Zoning District will not exceed 660 feet between separations for streets or open space.
· Lot Diversity – At least 30% of the proposed lots within the R1-4 (Single Family Detached) Residential Zoning District will exceed the minimum lot width by at least 5 feet for the zoning district.

The Streetscape Elements are not finalized until the preliminary plat review. However, in order to meet the four Streetscape Elements, the development is proposing the following:
· Porches and Courtyards – Homes within the zoning district will have a front porch, and at a minimum 50% of those homes will have a front porch in excess of 48 square feet. Covered porches can include a slatted roof or other roof design alternative, if it is an integrated, significant architectural feature with columns that are complimentary to the style of the home.
· Decorative Paving – Decorative paving (such as pavers but not stamped asphalt) will be provided for all horizontal paved surfaces between the house and the sidewalk.
· Detached Sidewalks – Local streets within the zoning district will include detached sidewalks with 5.5-foot planters, partially within a sidewalk easement. A minimum of one tree shall be provided within the planter for each residential lot that faces a planting area. Planter strips will be planted, irrigated, and then maintained by the HOA.
· West Goodyear Elements –
o Entries to the Project off of Van Buren Street, Citrus Road, and Roosevelt Street are surrounded by significant open space areas that will be landscaped consistent with an agrarian theme, including olive and/or palm groves, and will provide an inviting streetscape with decorative paving (not stamped asphalt) and a sense of arrival for residents and visitors as they enter the Project.  See Exhibits 10(A-C) for entry features.
o Las Palmas will employ agrarian theming around its parks with split rail (or cable rail) fencing at park entrance features to reflect the historic agricultural character of the area as well as split rail (or cable rail) fencing as an accent along Citrus Road.
o Citrus Road frontage will include a nine-foot wide landscape strip with shade trees planted 25 feet on center adjacent to curb and gutter and an eight-foot wide concrete sidewalk adjacent to the landscape strip.
o “West Goodyear” identification will be included on the Project’s entry monumentation as well as at the corner of Citrus Road and Roosevelt Street to help tie the Project into the overall character of ongoing development in this portion of Goodyear. 

Commercial development will adhere to the C-2 (General Commercial) Development Standards, as modified by the PAD Overlay. Commercial buildings will maintain a maximum building height of 30 feet as opposed to the 56 feet designated within the C-2 (General Commercial) zoning district. Additional Prohibited uses include: Adult bookstore, adult novelty store and adult theater, Bus terminals, Cleaning and dying plants, Hotels and motels, Pawn shop and Taxidermist. Additional Permitted uses include: Indoor Equipment Rental; brewpubs; and storage buildings. Storage buildings will be an allowed use on no more than 20% of the site and must be located on the northern half of the commercial site; additional design requirements for storage are included within the PAD Overlay. If the commercial site is developed adjacent to the residentially zoned district to the immediate west, then an 80-foot-wide landscape buffer shall be required on the commercial property.

Termination of Development Agreement:
Over the years, the city and the owners of the Las Palmas property have entered numerous agreements and amendments thereto, concerning the development of the Property.  Various events have occurred since the effective date of the Existing Las Palmas Development Agreement that impact terms in the agreement.  Moreover, the proposed rezoning of the Las Palmas property requires the imposition of additional development obligations and/or modifications of terms of the Existing Las Palmas Development Agreement.  Rather than amend or replace the Existing Las Palmas Development Agreement, the Existing Las Palmas Development Agreement is to be terminated as a condition of the re-zoning and the outstanding obligations, including the triggers for the construction of certain on-site and off-site street improvements, are being included as conditions of the rezoning. 
 

Evaluation Criteria for the Rezoning:
Per the city of Goodyear Zoning Ordinance, the city’s review and recommendation on a zoning amendment is to be guided by the following criteria:
1. Consistency with the General Plan.
The proposed land plan is consistent with the current General Plan land use designation in terms of land use location and density. With the adoption of the City of Goodyear’s General Plan “Goodyear 2025” the Project Site was given a land use designation of “Neighborhood” which is defined as: “Provides areas for the growth and development of neighborhoods. Neighborhoods include a wide range of densities and housing products, public and community facilities such as schools and places of worship, and commercial uses at appropriate intensities and locations.”

A key element in this description is the allowance for a wide range of densities and housing products. The General Plan promotes flexibility so that development can be responsive to changing and evolving housing needs in the City. It also allows for homebuilders to be creative in the type of communities they develop. Las Palmas should  meet the City’s intent to provide a diversity of housing options by providing homes on a variety of lot sizes, within a community of enhanced design and amenities. The applicant has indicated that this variety is sought after by many homebuyers. Las Palmas should also provide a sought after location, within a portion of the city that enjoys close access to employment and transportation.

As part of the City of Goodyear’s General Plan “Goodyear 2025” Chapter 8 – Land Use and Transportation Plan, clearly defined “Development Standards” are set forth. The Develop Standards that apply to the project will be met and the plan intent is in Conformance with the City of Goodyear’s General Plan “Goodyear 2025”. Additional objectives, goals and standards can be found in the applicant’s narrative, attached hereto.

2. Suitability of the subject property’s physical and natural features for the uses permitted under the proposed zoning district.
The property has no significant natural or built constraints and therefore provides a suitable location for a residential community with association non-residential uses.
 
3. Compatibility of all potential uses allowed in the proposed zoning district with surrounding uses and zoning.
Las Palmas is located in West Goodyear with adjacent properties reflecting similar zoning designations. Parcels that are within the City’s boundaries are either currently zoned or being rezoned to smaller single-family residential units. This includes Amber Meadows, Paseo Place and La Jolla Vista. Parcels along the northern boundary are larger lot single family residential units. The development of Las Palmas will provide and improve the necessary infrastructure including construction of collector and arterial roadways and extension of sewer service to West Goodyear. The surrounding properties in general will benefit from the future high-quality residential community. Current and future uses and development of the properties surrounding the subject property include:

North – County island, homes and vacant agricultural lands largely zoned RU-43/city equivalent to AU (Agricultural Urban);
South – County island, largely vacant agricultural lands largely zoned RU-43/city equivalent to AU (Agricultural Urban), Amber Meadows (zoned PAD);
East – Innovation Centre (zoned PAD) business park and retail uses;
West – County island, homes and vacant agricultural lands largely zoned RU-43/city equivalent to AU (Agricultural Urban);

4. Proposed zoning district’s consistency with other land uses within the immediate area and whether uses allowed under the proposed zoning district would be better suited to the subject property than the uses allowed under the current zoning.
Las Palmas is consistent and compatible with other land uses existing and entitled within the immediate area. The property is located within an area that was planned for low and medium density residential uses.

The jurisdiction along the western boundaries are within unincorporated Maricopa County and are zoned RU-43 with single family homes. In order to provide a sensitive transitional space between these larger lots and proposed development, Las Palmas will provide open space buffers and trail systems along the western portions of the property. Where commercial is proposed, an 80-foot-wide landscape and drainage buffer shall be installed on the western boundary of the C-2 Parcels in order to buffer the single family residential from the C-2 Parcels.

The proposed community is in line with the City’s General Plan principles. The City of Goodyear’s 2025 General Plan Land Use Map classifies the property as “Neighborhood.” The “Neighborhood” land use is intended to provide for the growth and development of residential neighborhoods providing diversity of densities and housing products up to five dwelling units per acre.

Luke Air Force Base:
The property does not fall within the Luke Air Force Base Accident Potential Zone or the 65 DNL. However, the property does fall within the Luke Air Force Base Military Vicinity boundary and is adjacent to the 65 DNL. As such, the development has graduated residential densities away from the noise contour and continues to adhere to the maximum unit count of 750 as previously approved by Luke AFB. Additionally, public disclosure statements shall be required as a condition of approval.

Phoenix-Goodyear Airport:
The property does not fall within the Phoenix-Goodyear Airport DNL but is partially located within the traffic pattern airspace for the airport.

5. Demand for the types of uses permitted in the proposed zoning district in relation to the amount of land currently zoned and available to accommodate the demand.
As provided by the applicant, the current Arizona housing market indicates the Phoenix Metro area needs over 500,000 homes to meet the current demand. A growing trend has demonstrated that the request for more narrow lots is reflected not just in West Goodyear, but across the Valley. This does not necessarily mean that the home sizes are decreasing but rather indicates homebuyers want less property to maintain. By adjusting to market demand, this will allow lots to sell more quickly, bringing more residents into Goodyear sooner and contribute to the City’s tax base.

The applicant further indicates that the proposed decrease in lot widths expands the percentage of this market segment with a more proportional distribution in West Goodyear. Las Palmas has been designed to be consistent with the City’s goals to provide a sustainable and varied residential community that will be a cornerstone in the West Goodyear area. High quality not only speaks the physical building, but to the high quality of life that Las Palmas brings with it planned amenities. Recent West Goodyear development activity with Paseo Place and La Privada show the interest in providing new residential units in West Goodyear.

6. Demands for public services that will be generated by the uses permitted in the proposed zoning district.
School Districts:
The subject property is located within the Liberty Elementary School District and the Buckeye Union High School District. Both school districts have been notified of the rezoning request.

Fire Response:
Emergency response times and distances are provided below:
Nearest Goodyear Fire Station Shortest path Longest path 2nd Nearest Goodyear Fire Station Shortest path Longest Path
Mins Miles Mins Miles Mins Miles Mins Miles
Fire Station #184 7.32 3.66 9.83 4.91 Fire Station #181 10.02 5.01 12.53 6.26
 
Police Response:
The proposed development is located within an existing police patrol beat and the current level of service within the beat can accommodate the development of the property.

Streets/Transportation:
The property will be accessed from Roosevelt Street, Citrus Road and Van Buren Street. The Engineering Department has created stipulations to address traffic issues caused by the development of this property. Those stipulations address traffic signals, roadway construction and access to needed and adjacent streets.

Water/Wastewater:
The subject property will be served by a private provider for potable water and the city of Goodyear for wastewater.

7. Potential adverse fiscal impacts that will result from providing services to areas not in proximity to where existing public services are provided.
The property is located near existing or planned Cost Recovery Ordinance public services. There should be no potential adverse fiscal impacts resulting from development of this property conducted in conformance with the City’s development regulations and cost recovery ordinances.
 
8. General public concerns.
Public Participation, Public Comment and Planning and Zoning Commission Meeting:
An in-person Neighborhood Meeting was conducted for this proposal and Notice of the Neighborhood Meeting was provided to property owners within 500 feet of the property on May 24, 2022; signs advertising the Neighborhood Meeting were placed on the site on June 9, 2022. The neighborhood meeting took place on June 28, 2022. Since the neighborhood meeting and the time of the writing of this staff report, no formal opposition has been received regarding this rezoning.

A public notice that this rezoning request would be considered and reviewed at a public hearing to be held before the Planning and Zoning Commission on September 14, 2022 appeared in the Arizona Republic Southwest Valley Edition August 26, 2022; postcards were mailed to adjoining owners on August 27, 2022; and signs were posted on the site on August 29, 2022.

On September 14, 2022, the Planning and Zoning Commission held a public hearing for this item. After the staff presentation, the Planning and Zoning Commission voted (6-0) to recommend approval, subject to the proposed stipulations and the inclusion of 34 addressing the development of the PFD Parcel. The new stipulation states, “Notwithstanding anything to the contrary in any of the Stipulations set forth herein, the development of the PFD Parcel shall not trigger the obligation to construct any of the public infrastructure Owner is required to construct as described in the Stipulations set forth herein, including by way of example the Roosevelt Street Improvements.  The obligation to construct such infrastructure shall be triggered by the approval of any site plan or recordation of the first final plat or minor land division that includes any of the R1-4 Parcel, the R1-6 Parcel and/or the C-2 Parcel.  Building permits, certificates of completion, temporary certificates of occupancy, and permanent certificates of occupancy will not be withheld for development within the PFD Parcel simply because the public infrastructure improvements Owner is required to construct has not been completed.”

9. Whether the amendment promotes orderly growth and development.
This zoning amendment requires consistency with the City’s General Plan, compatibility with the surrounding zoning and promotes orderly growth and development as part of the West Goodyear Area. As development continues to grow from the southeast of the project including Paseo Place, Pradera, La Privada, Las Ventanas and Amber Meadows, the development of Las Palmas allows expansion of public infrastructure and development sequentially to its western boundary particularly related to regional drainage, water, and wastewater expansion.

10. Any other factors related to the impact of the amendment on the general health, safety and welfare of the citizens of the City and the general public.
The proposed development on the property will have a positive impact to the general health, safety, and welfare of the citizens of the City by providing a safe and planned community within the West Goodyear area.

Staff Findings:
As set forth herein, the proposed zoning is both consistent with the General Plan and will not adversely impact the surrounding area. Because Ordinance No. 2022-1557 includes, as conditions of approval, stipulations regarding infrastructure obligations and other development related matters that were addressed in the Existing Las Palmas Development Agreement, this agreement (the Second Amended and Restated Development Agreement for Las Palmas recorded at MCR No. No. 2016-0285130) is no longer needed and needs to be terminated. 

Attachments