Request to consider the approval of a Resolution that revokes a stipulation in Ordinance No. 2021-1497. The stipulation allows the City Council to rescind the previously approved zoning on a parcel of land owned by the Arizona State Land Department if vertical construction has not commenced on the rezoned property two years after the effective date of Ordinance No. 2021-1497.

ADOPT RESOLUTION NO. 2024-2392, REVOKING STIPULATION 14 FROM ORDINANCE NO. 2021-1497, WHICH ALLOWS THE CITY COUNCIL TO RESCIND THE ZONING OF APPROXIMATELY 1,060 ACRES OF ARIZONA STATE TRUST LAND IF VERTICAL CONSTRUCTION DID NOT OCCUR WITHIN TWO YEARS OF THE EFFECTIVE DATE OF THE APPROVAL OF ORDINANCE NO. 2021-1497, EXTENDING THE REZONING WITHOUT CONDITIONS ON THE TIMING OF VERTICAL CONSTRUCTION AND PROVIDING AN EFFECTIVE DATE. (Christian M. Williams, AICP, Planning Manager)

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. Unless otherwise provided by a development agreement approved by the City Council, the developer is responsible for construction of all infrastructure necessary to serve the property.  The development of the infrastructure to serve the property and the development of the facilities on the property 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 and that are constructed by the developer will be conveyed to the city two years after construction.

The property was annexed into the city in 1982 with the adoption of Ordinance 82-141. In accordance with a development agreement adopted by Resolution 07-1131, an application to rezone the subject property to Preliminary PAD was filed in 2009 (Case 09-200-00005). The rezone application included multiple State Trust Land properties located throughout the city. Due to the downturn in the economy, the application was withdrawn and not pursued any further.

The property is State Trust land managed by the Arizona State Land Department (ASLD). State Trust land is different from public land such as parks or National Forests. State Trust lands are managed by the ASLD to generate revenue for K-12 schools and 12 additional institutional beneficiaries. The Trust accomplishes its mission through the sale and lease of State Trust lands for grazing, agriculture, municipal, residential, commercial, mining and other purposes. The ASLD, serving as the fiduciary for the Trust, is required by the Arizona Constitution to receive maximum value for the sale or lease of State Trust lands for the benefit of the Trust.

A large portion of the property is within the Luke Air Force Base high noise contours and the Accident Potential Zone II (APZ II). Per Arizona Revised Statute 28-8481, cities that have territory within the high noise contours or accident potential zones shall adopt general plans for property in the high noise or accident potential zone to assure development is compatible with the high noise and accident potential generated by military airport and ancillary military facility operations that have or may have an adverse effect on public health and safety. The Goodyear General Plan designates the areas within the high noise contours and APZ II as Luke Compatible Land Use Overlay which requires conformance with city standards and state statute.

On March 11, 2021, the property was rezoned to Planned Area Development with adoption of Ordinance No. 2021-1497. The Ordinance contained a Stipulation (“Stipulation 14”) which read, “This rezoning is contingent upon vertical construction, in conformance with this Ordinance, the Arizona State Land Department PAD, dated March 11, 2021, and the stipulations contained herein commencing within two years of the effective date this Ordinance. The failure to commence vertical construction within two years of the effective date of this Ordinance shall be cause for the City Council to rescind the zoning after a duly noticed public hearing, unless an extension of time is granted by the City Council. The commencement of vertical construction shall be defined as the active construction of a permanent building foundation on the Property pursuant to and in conformance with an approved building permit issued by the City of Goodyear”.

Revoking Stipulation 14, allowing the City Council to rescind the previously approved zoning and allowing an indefinite extension of time to commence vertical construction will not adversely impact the surrounding area as the proposed land uses allow for the orderly growth and development of the property and employment development.

The proposed Resolution would allow the Arizona State Land Department parcel to develop when the market can support the development of the site and allow the state flexibility in placing the parcel up for auction.