Authorize the acceptance of right-of-way needed for improvements to Roosevelt Street as part of the Estrella Commons District development.

Conditionally authorize the acceptance and execution of Special Warranty Deeds from Aldi (Arizona) L.L.C and Cyrene at Estrella HOA conveying right-of-way upon satisfaction of the conditions set forth in stipulations. (Kimberly Romero, Real Estate Coordinator)

1) City’s receipt of Special Warranty deed in the form provided by the City Attorney or his designee executed by Aldi (Arizona) LLC and its receipt of partial release from all lenders with a security interest in the property being conveyed to the city.
2) City’s receipt of Special Warranty deed in the form provided by the City Attorney or his designee executed by Cyrene at Estrella HOA and its receipt of partial release from all lenders with a security interest in the property being conveyed to the city.

Although a fiscal impact analysis has not been conducted on the dedications provided for herein, the conveyances are required for the development of a multi-family residential project at the southeast corner of Estrella Parkway and Roosevelt Street to proceed.  This development is responsible for the 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.

On July 19, 2021, the City Council adopted Ordinance 2021-1509, re-zoning approximately 27 acres generally located at the northeast corner of Estrella Parkway and Roosevelt Street to the PAD Zoning District with underlying zoning of MF-24 and C-2 as amended by the Estrella Commons District Planned Area Development (PAD) Overlay. A final plat subdividing the Property subject to this ordinance into six lots (5 commercial lots and one multi-family residential lot) is being presented by separate action. The Property is known as the Estrella Commons District.

A traffic impact study submitted with the Final Plat for Estrella Commons District, being presented by separate action, concluded that additional street improvements were needed to support the increased traffic that will result from the development of the property. The additional street improvements included the construction of a second left-turn lane at the traffic signal from Estrella Parkway to Roosevelt Street, which is required.  The addition of the additional turn lane required additional right-of-way along the south side of the existing Roosevelt Street right-of-way. This right-of-way is located on property owned by Aldi (Arizona) LLC and by Cyrene at Estrella HOA.

Both entities have agreed to convey the right-of-way to the city, in the forms attached hereto. The council is required to accept the conveyance of street right-of-way. Normally staff would not seek acceptance until fully executed documents had been received. However, so as not to delay the development of the Estrella Commons District, staff is asking Council to authorize the acceptance of the right-of-way from Aldi (Arizona) LLC and from Cyrene at Estrella HOA following the city’s receipt of executed special warranty deeds and its receipt of partial releases from all lenders with a security interest in the property being conveyed to the city as stated in the stipulations.