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AGENDA ITEM #: 10.
DATE: 03/22/2021
CAR #: {ud_fi4}

 
CITY COUNCIL ACTION REPORT
 
SUBJECT: APPROVE THE ARIZONA STATE LAND DEPARTMENT REZONE
 
STAFF PRESENTER(S): Katie Wilken, Planning Manager

OTHER PRESENTER(S):

Jon Froke, Arizona State Land Department,  Carolyn Oberholtzer, Bergin, Frakes, Smalley & Oberholtzer, PLLC

SUMMARY:

Request to rezone approximately 1,060 acres of State Trust Land located east of Perryville Road, south of Indian School Road, west of Citrus Road and north of McDowell Road from Agricultural (AG) to Planned Area Development (PAD).
 

Recommendation:

  1. Conduct a public hearing to consider a request to rezone approximately 1,060 acres located east of Perryville Road, south of Indian School Road, west of Citrus Road and north of McDowell Road from Agricultural (AG) to Planned Area Development (PAD).
  2. Alternative Actions
    1. Deny the request to rezone property from the Agricultural (AG) zoning district to the Planned Area Development (PAD)  zoning district; or,
    2. ADOPT RESOLUTION NO. 2021-2140 DECLARING A PUBLIC RECORD THOSE CERTAIN DOCUMENTS FILED WITH THE CITY CLERK AND TITLED “OFFICIAL SUPPLEMENTARY ZONING MAP NO. 21-01 CITY OF GOODYEAR, AZ – REZONE CASE”; “LEGAL DESCRIPTION – ASLD REZONE”; AND “ARIZONA STATE LAND DEPARTMENT PAD, DATED MARCH 11, 2021” 
    3. ADOPT ORDINANCE NO. 2021-1497 CONDITIONALLY REZONING APPROXIMATELY 1,060 ACRES GENERALLY LOCATED EAST OF PERRYVILLE ROAD, SOUTH OF INDIAN SCHOOL ROAD, WEST OF CITRUS ROAD, NORTH OF MCDOWELL ROAD; AMENDING THE ZONING MAP OF THE CITY OF GOODYEAR; PROVIDING FOR NON-ABRIDGMENT, CORRECTIONS, SEVERABILITY, AN EFFECTIVE DATE, AND PENALTIES. (Katie Wilken, Planning Manager)

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. 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.

BACKGROUND AND PREVIOUS ACTIONS:

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 that is managed by the Arizona State Land Department (ASLD). State Trust land is different from public land such as parks or National Forests. 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 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 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). According to Arizona Revised Statute 28-8481, cities with property within the high noise contours or accident potential zones adopt general plans for property in the high noise or accident potential zone to assure development 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 ARS 28-8481.
 

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.  As set forth below, the proposed zoning is both consistent with the General Plan and will not adversely impact the surrounding area.

Details of the Request:
Given its Constitutional mandate to receive maximum value for the sale or lease of Trust Lands, it is incumbent upon ASLD to plan these properties to maximize their ultimate value. Accordingly, the ASLD is in the process of re-evaluating the existing development plans for the property, and is working with the City of Goodyear to develop plans that are appropriate for the area and that will meet market demands.  To that end, the ASLD has requested a rezone to 1,060 acres to Planned Area Development (PAD). The subject property is currently used for commercial farming and related agricultural uses and is zoned Agricultural (AG). The proposed PAD would allow for a variety of land uses including retail, office, and industrial uses.

The general plan designates a portion of the property, located at southeast corner of Indian School Road and Perryville Road as designated Business and Commerce, which allows for multi-family, commercial, and light industrial uses. The majority of the property is designated as Industrial with the Luke Compatible Land Use Overlay. The Luke Compatible Land Use Overlay follows the high noise contour designation and also encompasses the APZ II which runs through a portion of the property. This overlay requires conformance with Arizona Revised Statute 28-8481 which restricts uses in the high noise contours and the APZ II. Generally, residential uses are not permitted in the high noise contour area and retail, assembly, and commercial uses are not permitted in the APZ II.

The proposed PAD includes three land use zones:
  • Office Zone – the office zone is located along Indian School Road and Perryville Road. It extends ¼ mile from Indian School Road and Perryville Road. This zone serves as a buffer between the adjacent residential neighborhoods and the higher intensity industrial development.
  • Light Industrial Zone – the light industrial zone is located along Perryville Road south of the Thomas Road alignment. It is a ¼ mile square. This zone is across Perryville Road from Scott L Libby Elementary School. The purpose of this zone is to provide a buffer near the elementary school.
  • General Industrial Zone – the remainder of the property is within the General Industrial zone.
The development standards for the three land use zones are provided below. A chart of comparable city districts are also provided.

City Zoning Districts (for comparison):
  AG (current) C-2 I-1 I-2
Minimum Lot Size 10 acres 10,000 sf 1 acre 5 acres
Maximum Height 30-feet 56-feet 50-feet 50-feet
Minimum Setbacks        
Front 20-feet 30-feet 30-feet 50-feet
Side 20-feet 0-feet 30-feet 30-feet
Rear 100-feet 0-feet 20-feet 50-feet
Street Side 100-feet 30-feet 30-feet 30-feet

Proposed ASLD PAD Districts:
  Office Zone Light Industrial Zone General Industrial Zone
Maximum Building Height

(limited to 56-feet within 500-feet of existing residential uses)
80-feet maximum
 
80-feet maximum 80-feet maximum without zoning permit
150-feet maximum with approval of a zoning permit
Maximum Height - Accessory Structures

(limited to 56-feet within 500-feet of existing residential uses)
80-feet maximum
 
80-feet maximum without zoning permit
220-feet maximum with approval of a zoning permit
80-feet maximum without zoning permit
220-feet maximum with approval of a zoning permit
Minimum Setbacks      
Indian School 100-feet
(50-feet landscape yard)
NA NA
Perryville 100-feet
(50-feet landscape yard)
50-feet 50-feet
McDowell NA NA 30-feet
Citrus 30-feet NA 30-feet
Other Public Streets 30-feet 30-feet 30-feet
Interior (front, side, rear) 0-feet 0-feet 0-feet
Setbacks from other uses/properties 30-feet 30-feet 30-feet

Since the Planning and Zoning Commission meeting, the PAD was amended based on public input:
  • A statement was added that site plans and zoning permits represent conditional approvals and are subject to the FAA Obstruction Analysis. This was added after discussion with Luke Air Force Base regarding the process for determining whether proposed development will impact its operations. 
  • Agricultural uses were added as a permitted use in all zones.
  • Emissions testing was removed as a permitted use in the Office zone although it should be noted that if the state wishes to locate an emissions testing facility on the site, the City of Goodyear cannot regulate the state.
  • Chimneys and towers were removed as listed architectural features. This section was copied from the Goodyear Zoning Ordinance and pertains to residential homes.
  • A scrivener’s error was fixed. 

Evaluation Criteria:
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 property is designated “Industrial” which permits light industrial and general industrial zoning and “Business and Commerce” which permits commercial and light industrial zoning. The PAD will be in conformance with the General Plan land use plan.

The following development standards also apply to the property:
 
Standard 37. Light industrial uses such as warehousing or distribution centers are appropriate throughout the Business & Commerce category but should be buffered from residential uses.  
 
Standard 43. General industrial uses are appropriate within the Industrial category and should be buffered from residential uses and commercial assembly, entertainment, and retail uses.   
 
 
Staff Analysis. The “office zone” category has been designated adjacent to residential uses. Internet fulfillment/distribution and general industrial uses are not permitted in this zone in order to keep high truck traffic uses and dock doors away from the residential uses. A building setback of 100-feet and landscape yard of 50-feet has been established along Indian School Road and Perryville Road across from the residential uses. The PAD established setback is twice the required building setback for the city’s I-2 zoning district which is 50-feet. Additional landscaping is required in this landscape yard. The typical tree planting along streets is one tree per every 25 linear feet. The landscape yards described above must have two continuous offset rows of trees every 20-feet.
 
 
Standard 44. Office, warehousing, and other light industrial uses are appropriate throughout the Industrial category and should be used to provide a buffer between higher intensity uses within the industrial category and other land use categories.  
 
 
Staff Analysis. The “office zone” category and “light industrial zone” category have been used to create a buffer between the adjacent residential developments and the higher intensity uses.
 
 
Standard 46. Industrial land uses are encouraged to locate within and adjacent to the Luke Compatible Land Use Overlay and the 65 DNL noise contour of the Phoenix? Goodyear Airport to protect the Phoenix? Goodyear Airport and Luke Air Force Base from encroachment, and to capitalize on these major assets.
 
Standard 60. Land uses are restricted within the 65 DNL and the Accident Potential Zone (APZ). The City of Goodyear defers to State Statute and the Western Maricopa/Luke Air Force Base County Regional Compatibility Plan, March 2003.
 
 
Standard 62. New residential uses and assembly uses shall not be approved within the LCLUA Overlay.  
 
Staff Analysis. The PAD identifies the Accident Potential Zone (APZ) and noise contours and restricts incompatible land uses in accordance with state statutes. 
  1. Suitability of the subject property's physical and natural features for the uses permitted under the proposed zoning district.
The property is generally flat and used for agricultural uses. There is no flood plain designation on the property. An irrigation canal runs along the western and northern edge of the property. A 230kv power line runs along the western edge of the property. These features are generally compatible with office/business park/industrial.
  1. Compatibility of all potential uses allowed in the proposed zoning district with surrounding uses and zoning.
Current and future uses and development of the properties surrounding the subject property include:
 
  • North:
    • City of Goodyear
    • Land Use: Sedella residential neighborhood
    • Zoning: Planned Area Development (residential & commercial)
  • East:
    • City of Goodyear
    • Land Use: PV303 Business Park and Perryville Prison
    • Zoning: Planned Area Development (industrial), Agricultural (AG)
  • South:
    • City of Goodyear and Unincorporated Maricopa County
    • Land Use: commercial businesses and Canada Village residential neighborhood (not adjacent)
    • Zoning: Mix of commercial & industrial zoning districts
  • West:
    • City of Buckeye and Unincorporated Maricopa County
    • Land Use: Litchfield Farms and miscellaneous residential, agricultural, and vacant land. Scott L Libby Elementary school is located at the southwest corner of Perryville Road and Thomas Road.
    • Zoning: RU-43 (County 1-acre lots) and miscellaneous agriculture/residential zoning.
The property to the north and west include residential neighborhoods including Sedella and Litchfield Farms. Canada Village residential neighborhood is located to the south of the property on McDowell Road and is within the notice area but is not directly across from the rezoning area.

A unique land use zone, the “office zone” has been created to buffer the residential neighborhoods from the industrial development. Retail and office uses are permitted in this zone. Internet fulfillment/distribution and heavier industrial uses are not permitted in this zone. Manufacturing and assembly uses can be located in this zone but any use must be conducted entirely indoors. Dock doors are not permitted to face Perryville Road north of Thomas Road nor Indian School Road, even with screening.

Additional buffering is being required along Indian School Road and Perryville Road north of Thomas Road. A 100-foot building setback is created. This means any above ground structure must be set back at least 100-feet from the property line. A 50-foot landscape yard is required meaning no parking lots or driveways can be placed in the landscape yard. Driveway cuts are permitted.

The back wall of homes in the Litchfield Farms neighborhood that back up to Perryville Road will be approximately 210-feet from buildings and structures. The back wall of homes in the Sedella neighborhood that back up to Indian School Road will be approximately 320-feet from buildings and structures.
 
  1. 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.
The property is currently zoned AG.  The proposed zoning is consistent with zoning on the property adjacent to the southern boundary of the Property, which is zoned commercial and with the property to the east of the Property, the Property is not suitable for residential development.  The Luke Air Force Base Accident Potential Zone II (APZ II) is located in the south half of the property. The 70-DNL and 65-DNL runs through the majority of the property. Only a small area in the northwest portion of the project does not have Luke Air Force base impacts.
 
State Law has limitations on the uses that are permitted in these areas. Such as:
  • New residential development is not permitted in any of these districts
  • Retail, medical services, and assembly uses are not permitted in the APZ II area
 
  1. 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.
There is demand for business park and industrial development. The nearby PV303 development is beginning to be built-out.
 
  1. 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 Litchfield Elementary School District and the Agua Fria High School District. The project does not include residential and so no school analysis has been conducted.

Fire Response:
The subject property is served by Fire Station 185 which is located at N. PebbleCreek Parkway and Clubhouse Drive. Since driveway locations have not yet been determined, the longest possible path/times have been reported. Emergency responses to this property are within the 7-10 minute estimate.
 
Nearest Goodyear Fire Station Shortest path Longest path   2nd nearest Fire Station Shortest path Longest path
Mins Miles Mins Miles Mins Miles Mins Miles
Station #185 9.22 4.61 9.22 4.61 Station #184/181 11.38 5.69 11.38 5.69
 
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:
Except as otherwise provided in a development agreement approved by the City Council, the owner will be responsible for constructing half-street improvements for Citrus, Perryville, McDowell, and Indian School along or adjacent to the Property and, depending upon how the Property is developed, full-street improvements for the section of Thomas Road located within the Property.  In addition, and except as otherwise provided by a development agreement approved by the City Council, owner will be responsible for constructing all other off-site street improvements needed to support the development of the Property as determined by Traffic Impact Studies that will be required through the development of the Property.

Water/Wastewater:
Water service is provided by EPCOR and wastewater service is provided by the city of Goodyear.  Owner shall be responsible for constructing all infrastructure required by EPCOR as a condition of EPCOR providing water service to the Property.  Except as otherwise provided in a development agreement approved by the City Council, the owner will be responsible for constructing all infrastructure required by the City to provide wastewater service to the Property. 
 
  1. Potential adverse fiscal impacts that will result from providing services to areas not in proximity to where existing public services are provided.
The proposed rezoning is within proximity to existing public services.  In the absence of a development agreement approved by City Council to the contrary, the property owner and/or developer will be responsible for the costs of making the necessary connections to these existing services.
 
  1. General public concerns.
The citizen review process was noticed by a mailer sent to property owners within 500-feet of the subject property on February 1, 2021, as well as stakeholders including Luke Air Force Base, the school districts, and neighboring municipalities. Three signs posted on the property on February 1, 2021. The mailers and signs noticed submittal of the application and that a neighborhood meeting would be held on February 16, 2021.

Ahead of the meeting, 22 phone calls and e-mails were received. The majority of the comments expressed concerns with the proposal. A neighborhood meeting was held via zoom on February 16, 2021. Over 100 interested parties logged into the meeting. There were many questions and concerns voiced at the meeting. While there were many concerns and comments noted, in general, the comments focused on:
 
  • Industrial Land Use. There were many comments received concerned with the proposed industrial land use on the property and its close proximity to the residential neighborhoods. Concerns included noise, odor, emissions, traffic, and the aesthetics of industrial land uses.
  • Traffic. There were many comments regarding traffic. Concerns focused on truck traffic and the potential impact truck traffic may have on the neighborhoods. Noise and air quality impacts were noted as concerns. The ability to make left turns, especially during morning commute times, were questioned by both Sedella and Litchfield Farms residents.
  • Improvements to Perryville Road and Indian School Road. There were several questions regarding the improvements to Perryville Road and Indian School Road including how close the pavement would get to existing homes, if improvements would impact the existing driveways into the neighborhoods, and where traffic signals would be located. There were concerns expressed with the loss of the mature pine trees along Perryville Road that might be caused by the roadway improvements.
  • Loss of Farming. There were questions regarding the impact of losing agricultural land use, particularly Duncan Family Farms which grows food.
Duncan Family Farms currently leases the property north of the Thomas Road alignment from ASLD and that lease expires on February 14, 2022. The area of land south of the Thomas Road alignment is leased from the ASLD to the Arizona Department of Corrections (ADOC) and Duncan Family Farms has a Special Land Use Permit (SLUP) for their farming operations. The SLUP may be terminated with 25 days notice. Duncan Family Farms has been sent notice of the rezoning request. To date, there have been no comments received by Duncan Family Farms.

There were several comments received before, during, and after the neighborhood meeting that have expressed opposition to the rezoning.          

At the neighborhood meeting, interested parties were informed that they may continue to direct questions and comments to city staff or they could contact city staff to ensure they were on the notification list. After the neighborhood meeting, an additional 12 calls and e-mails have been received. A copy of all written comments that were received by noon on Friday, March 5th have been included in this packet. Any written comments received by 3:00 P.M. on Wednesday, March 10th will be read into the record.

The public hearing before the Planning and Zoning Commission on March 10, 2021 was noticed in the Arizona Republic, Southwest Edition, on February 19, 2021. Notices were sent to property owners within 500-feet of the subject property, those who have requested notice, and other stakeholders, by U.S. Mail on February 15, 2021. Three signs were posted on the property on February 19, 2021. The notice was posted on the city website at www.goodyearaz.gov/devapps.

The Planning and Zoning Commission held a public hearing at their regular meeting on Wednesday, March 10, 2021. At the meeting, Planning Manager Katie Wilken made a presentation regarding the rezoning proposal and staff analysis. Jon Froke, representing the applicant, the Arizona State Land Department, addressed the Planning and Zoning Commission and stated he was available for questions.

There were five members of the public who spoke regarding the request. Hector Hernandez, a representative of the carpenters union, spoke on behalf of the union members supporting the rezoning request based on the jobs that would be generated. Although Andrew Decker spoke in opposition to the rezoning, his concerns were limited to potential accidents from faulty F-35s and the potential for contaminated groundwater based on what is occurring at Luke Air Force Base. Leslie Levann, a resident of Litchfield Farms neighborhood stated her home backs up to Perryville. She spoke in opposition, citing concerns with lights, noise, an increase in crime resulting from the development and traffic along Perryville, which would put students at the nearby school at risk. She further stated the development’s contributions to the tax base would be minimal because of tax breaks given to businesses. Steve Mason, a resident of Sedella, also spoke in opposition, stating concerns with safety because of increased traffic and the environmental impact. Jessica Wade, a resident of Litchfield Farms spoke in opposition. She stated she was not in favor of the proposal but understood the area would develop. She requested uses that create truck traffic be removed from the office zone, that driveways be restricted, emissions testing facilities not be permitted in the office zone, the height in office be reduced to 40-feet within 500-feet and 60-feet beyond, and that trees be 48 inch box trees. There were four written comments that were sent to staff which were read into the record by staff member Christopher Baker. A copy of those written comments have been included with the other public comments provided in the agenda packet.

The Planning and Zoning Commission made a motion to approve the request and discussed the proposal. Vice Chairman Barnes stated that normally if a zoning proposal meets the general plan he would not deny the proposal but since it was state land, it was our land and stated he thought it should remain agricultural and encouraged the body to say no to the rezone and leave it as is. Commissioner Clymer stated he couldn’t see pushing this aside if the state is going to move forward with the auction and asked if that was correct. Chairman Bray sated the state land commission is responsible to the beneficiaries and not the taxpayers and asked staff to weigh in. Mr Baker stated the state land department has a fiduciary responsibility and the auction is scheduled for April 21st. Mr. Baker continued that this zoning is in preparation for the auction so there are standards in place, a future property owner could request rezoning changes. We do not know if there will be bidders or who may win. Mr. Baker added that the property is impacted by Luke Air Force Base and the rezoning is a compromise situation between residents, the state land department, and Luke.

Commissioner Ellison asked if the auction would take place regardless of the zoning change. Mr. Baker confirmed that it would. Commissioner Ellison stated if the zoning is changed, we are making it easier for a bidder. Commissioner Kish stated he was concerned with the heights over 100-feet and suggested a stipulation to limit height to 80-feet. Commissioner Molony agreed with Commissioner Barnes that the property should remain agricultural and stated the proposed height is a concern as well as having industrial development within proximity to Sedella. Commissioner Molony noted the proposed development would change the entire look of the area and the feel of the community. Commissioner Steiner stated the property would be either industrial or agricultural because of the Luke Air Force Base overlay zone.  He noted that some action had to be taken so that there is certainty as to what can be built when the property sells.  Chairman Bray stated that the only way to ensure it remains agriculture is for someone to purchase it and keep it agricultural. He noted that other communities have acquired property in order to limit development and to control the uses and that is what the City would need to do if the City wanted the property to remain in agricultural production.

The motion to approve the rezone request failed by (3-4) vote. According to the Planning and Zoning Commission rules of procedure, when a motion in favor of an application fails to receive an affirmative majority vote, it shall be entered into the minutes as a vote to deny the application.

The public hearing before the City Council on March 22, 2021 was noticed in the Arizona Republic, Southwest Edition on February 19, 2021. Notices were sent to property owners within 500-feet of the subject property, those who have requested notice, and other stakeholders, by U.S. Mail on February 15, 2021. Three signs were posted on the property on February 19, 2021. The notice was posted on the city website at www.goodyearaz.gov/devapps.  
 
  1. Whether the amendment promotes orderly growth and development.
The subject property is adjacent to existing development and located within the proximity of City services and infrastructure.
 
  1. 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 and the general public.


Recommendation:
The Planning and Zoning Commission recommendation is for denial of this rezoning request for the reasons as stated herein.

Should the Council choose to approve this request, then staff has proposed several stipulations of approval, and as provided within draft Ordinance No. 2020-1497. It should be noted that the applicant has reviewed the stipulations as presented within the draft ordinance and finds them acceptable.

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