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ITEM #: 8.
DATE: 09/09/2024
AI #:2153
CITY COUNCIL ACTION REPORT
 
SUBJECT: AUTHORIZING THE MODIFICATION OF ASSESSMENT NUMBER 11-01-001 WITHIN THE MCDOWELL ROAD COMMERCIAL CORRIDOR IMPROVEMENT DISTRICT (“MRCCID”)
 
STAFF PRESENTER(S): Jared Askelson, Finance Director

SUMMARY

Approval of this resolution would divide a single assessment within the MRCCID into three 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: 

Original Assessment No. 11-01-001 - $109,133.72

New Assessment No. 11-02-001 (Lot 1-A) - $53,438.94
New Assessment No. 11-02-002 (Lot 1-B) - $55,694.78
New Assessment No. 11-02-003 (ROW) - $0

STRATEGIC PLAN ALIGNMENT

       

RECOMMENDATION

ADOPT RESOLUTION NO. 2024-2425 APPROVING THE MODIFICATION OF ASSESSMENT NUMBER 11-01-001 WITHIN THE MCDOWELL ROAD COMMERCIAL CORRIDOR IMPROVEMENT DISTRICT. (Jared Askelson, Finance Director)

FISCAL IMPACT

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 modification will have no direct fiscal impact upon the City or the MRCCID.  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.

BACKGROUND AND PREVIOUS ACTIONS

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 had previously been modified by City Council in 2010, 2018, 2020, 2022, and earlier this year following petitions from the property 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.

STAFF ANALYSIS

Globe Land Investors, LLC, as owner of the property, has petitioned for a modification of a certain assessment of their property within the MRCCID.  The application for modification includes one existing parcel that would be split into two distinct parcels with one right of way and be allocated a fair share of the existing assessment based upon the original intent of the assessment model.

If the 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.

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