| ITEM #: 11. DATE: 08/25/2025 AI #:2718 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | ADOPTION OF RESOLUTION APPROVING THE AMENDED AND RESTATED DEVELOPMENT AGREEMENT FOR FULTON HOMES AT BALLPARK VILLAGE |
| STAFF PRESENTER(S): | Kini Knudson, Deputy City Manager |
SUMMARY
The Amended and Restated Development Agreement for Ballpark Village (the “Amended and Restated DA”) requires Fulton Homes Corporation to construct infrastructure improvements to Yuma Road, including associated medians, traffic signal, and an arch culvert crossing over Bullard Wash. The Amended and Restated DA requires the establishment of an escrow account, funded by Fulton Homes Corporation and the City of Goodyear to pay for the costs related to the construction of the improvements. A copy of the Resolution and the Amended and Restated DA are included as Attachment A.
STRATEGIC PLAN ALIGNMENT
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RECOMMENDATION
ADOPT RESOLUTION NO. 2025-2483 APPROVING THE AMENDED AND RESTATED DEVELOPMENT AGREEMENT FOR FULTON HOMES AT BALLPARK VILLAGE. (Kini Knudson, Deputy City Manager)
FISCAL IMPACT
The City will incur costs related to the construction of W. Yuma Road, an arch culvert crossing over Bullard Wash and a traffic signal at the intersection of W. Yuma Road and S. Goodyear Boulevard East (the “Yuma Road Improvements”). The costs of the Yuma Road Improvements are shared by Fulton Homes Corporation (Fulton Homes), the City of Goodyear (City), and adjacent developments. The City will deposit its share of the Yuma Road Improvements, as approved by the City Engineer, into an escrow account that will fund construction. The funding of an escrow account related to the Yuma Road Improvements will allow Fulton Homes to complete the construction without delayed reimbursement. Fulton Homes and the City will each deposit their respective shares of the construction costs into the escrow account, and the City will also deposit in-lieu contributions collected by the City from adjacent developments. In the future, the City will collect future in-lieu contributions from adjacent developments at the time of development, which will offset the City’s share of the construction costs.
To date, the City has collected in-lieu contributions in the amount of $1,445,132. Additionally, an in-lieu contribution in the amount of $2,184,352 is expected with future development.
The City has budgeted $10,000,000 in fiscal year 2026 (FY26) to fund the escrow account. An Engineer's Estimate of Probable Cost provided by Fulton Homes estimates the project cost to be $14,169,416.16, of which the City’s contribution is expected to be approximately $6,356,561.
To date, the City has collected in-lieu contributions in the amount of $1,445,132. Additionally, an in-lieu contribution in the amount of $2,184,352 is expected with future development.
The City has budgeted $10,000,000 in fiscal year 2026 (FY26) to fund the escrow account. An Engineer's Estimate of Probable Cost provided by Fulton Homes estimates the project cost to be $14,169,416.16, of which the City’s contribution is expected to be approximately $6,356,561.
BACKGROUND AND PREVIOUS ACTIONS
On April 18, 2022, Council adopted Ordinance No. 2022-1535, re-zoning approximately 156 acres generally located southeast of the intersection of Estrella Parkway and Yuma Road to Planned Area Development (PAD) Zoning District to be developed in accordance with the Fulton Homes at Ballpark Village PAD.
On January 23, 2023, Council adopted Ordinance No. 2023-1567, amending the PAD Zoning District to be developed in accordance with the Fulton Homes at Ballpark Village 1st Amended PAD.
On April 10, 2023, Council adopted Resolution No. 2023-2302, and entered into a Development Agreement for Fulton Homes at Ballpark Village, recorded in the official records of the Maricopa County Recorder as Document No. 2023-0187535 (the “Original DA”), that intended to address Fulton Homes' obligations to construct Yuma Road, an arch culvert or bridge over Bullard Wash (the “Yuma Road Bridge”), and a traffic signal at the intersection Goodyear Boulevard East as well as the City’s obligation to reimburse Fulton Homes for a portion of the costs incurred in constructing the Yuma Road Improvements.
On January 23, 2023, Council adopted Ordinance No. 2023-1567, amending the PAD Zoning District to be developed in accordance with the Fulton Homes at Ballpark Village 1st Amended PAD.
On April 10, 2023, Council adopted Resolution No. 2023-2302, and entered into a Development Agreement for Fulton Homes at Ballpark Village, recorded in the official records of the Maricopa County Recorder as Document No. 2023-0187535 (the “Original DA”), that intended to address Fulton Homes' obligations to construct Yuma Road, an arch culvert or bridge over Bullard Wash (the “Yuma Road Bridge”), and a traffic signal at the intersection Goodyear Boulevard East as well as the City’s obligation to reimburse Fulton Homes for a portion of the costs incurred in constructing the Yuma Road Improvements.
STAFF ANALYSIS
Under applicable development regulations and conditions of approval/stipulations related to the zoning of the Fulton Homes at Ballpark Village, Fulton Homes is required to dedicate right-of-way; construct infrastructure improvements, unless constructed by others; make in-lieu payments for infrastructure improvements for which the owner was otherwise required to construct but were constructed by others; and make in-lieu payments for infrastructure improvements for which Owner was not 100% responsible.
The property being developed is known as Fulton Homes at Ballpark Village, and is south of W. Yuma Road between Estrella Parkway and the western boundary of the Bullard Wash. The Original DA obligated Fulton Homes to construct the Yuma Road Improvements and divided Fulton Homes' responsibilities into improvements. Fulton Homes was required to construct and were not eligible for reimbursement and those improvements that would be subject to reimbursement by the City.
The Amended and Restated DA has the same infrastructure improvements as the Original DA. However, the Amended and Restated DA will utilize an escrow account to fund and construct the Yuma Road Improvements, which is more appropriate than the reimbursement method contemplated in the Original DA. The Amended and Restated DA requires each party to deposit an amount equal to their portion of the costs of the Yuma Road Improvements as identified in a final cost estimate that will be approved by the City Engineer.
The Amended and Restated DA establishes and identifies the following responsibilities for each party:
Fulton Homes' Responsibilities:
City Responsibilities:
Staff is recommending the approval of Resolution No. 2025-2483 approving the Amended and Restated Development Agreement for Fulton Homes at Ballpark Village.
The property being developed is known as Fulton Homes at Ballpark Village, and is south of W. Yuma Road between Estrella Parkway and the western boundary of the Bullard Wash. The Original DA obligated Fulton Homes to construct the Yuma Road Improvements and divided Fulton Homes' responsibilities into improvements. Fulton Homes was required to construct and were not eligible for reimbursement and those improvements that would be subject to reimbursement by the City.
The Amended and Restated DA has the same infrastructure improvements as the Original DA. However, the Amended and Restated DA will utilize an escrow account to fund and construct the Yuma Road Improvements, which is more appropriate than the reimbursement method contemplated in the Original DA. The Amended and Restated DA requires each party to deposit an amount equal to their portion of the costs of the Yuma Road Improvements as identified in a final cost estimate that will be approved by the City Engineer.
The Amended and Restated DA establishes and identifies the following responsibilities for each party:
Fulton Homes' Responsibilities:
- Update the preliminary cost estimate to reflect the final estimated cost of the improvements based on a general contractor that is to be mutually agreed to by Fulton Homes and the City plus an additional twenty percent (20%) contingency amount to cover unanticipated additional costs.
- Fund an escrow account for Fulton Homes' share of improvements to Yuma Road and cause construction of improvements to Yuma Road per the City-approved final construction plans.
- Fund an escrow account for Fulton Homes' share of the Yuma Road Bridge and cause construction of the Yuma Road Bridge as an arch culvert crossing over the Bullard Wash on Yuma Road as well as the associated temporary bypass road, grading/earthworks, headwalls, twenty foot (20’) wide trail, riprap/shotcrete, and low flow channels within the Bullard Wash per the City-approved final construction plans.
- Fund an escrow account for Fulton Homes' share of a traffic signal at the intersection of Goodyear Boulevard East and Yuma Road and cause construction of the traffic signal per the City-approved final construction plans
- Convey necessary right-of-way to the City.
- Provide financial assurances for the estimated costs of improvements.
- Manage construction and submit disbursement requests for escrowed funds.
City Responsibilities:
- Fund an escrow account for 100% of the estimated cost to construct the north half of Yuma Road between the west side of the intersection with Goodyear Boulevard East to the centerline of the Bullard Wash and full street improvements to Yuma Road to a point that is approximately 550 feet east of the centerline of the Bullard Wash.
- Fund an escrow account for 75% of the estimated cost to construct the Yuma Road Bridge.
- Fund an escrow account for 50% of the estimated cost to construct a traffic signal at the intersection of Goodyear Boulevard East and Yuma Road.
- Acquire temporary construction easements.
- Endeavor to cause any and all existing utilities in conflict with the improvements to be relocated.
- Provide expedited plan reviews and reimburse Fulton Homes for expedited review fees.
- Monitor disbursements from the escrow account.
Staff is recommending the approval of Resolution No. 2025-2483 approving the Amended and Restated Development Agreement for Fulton Homes at Ballpark Village.