| ITEM #: 5. DATE: 12/12/2022 AI #:1239 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | APPROVE FOURTH AMENDMENT TO DEVELOPMENT AGREEMENT WITH GLOBE LAND INVESTORS, LLC |
| STAFF PRESENTER(S): | Roric Massey, City Attorney |
SUMMARY
Approval of this fourth amendment document will extend the deadline for the completion of Phase II Improvements until February 28, 2023.
Recommendation
Approve and authorize the City Manager to execute the Fourth Amendment to the Development Agreement with Globe Land Investors, LLC. (Roric Massey, City Attorney)
FISCAL IMPACT
This Amendment extends certain sales tax reimbursement incentives and pre-paid fees that the Developer may be eligible for should certain improvements be constructed within specified time frames totaling approximately $12 million.
BACKGROUND AND PREVIOUS ACTIONS
The City of Goodyear and Westcor/Goodyear LLC (the “Developer”), first entered into the Development Agreement effective September 1, 2006, to provide for the planning and development of certain regional commercial and mixed-use development generally located northwest of McDowell Road and Bullard Avenue.
The Developer and the City formed the McDowell Road Corridor Improvement District and the Developer then constructed approximately $43 million in roadway, infrastructure, and park improvements to Bullard Wash Park, to support the regional center and surrounding commercial development. The Developer then constructed the Market at Estrella Falls power center generally located at the intersection of McDowell Road and Pebblecreek Parkway.
The Great Recession delayed the construction of the planned regional mall and on December 14, 2009, the City and Macerich/Westcor entered into the First Amendment to the Development Agreement to extend the time frames to meet certain milestones in the project development due to ongoing economic conditions.
The Second Amendment to the Development Agreement was entered into by the parties on November 17, 2014, to redefine project milestones and provide for Phase I and Phase II Improvements for the project. The developer subsequently constructed the existing Harkins Theatre and developed a restaurant pad site for Cheddar’s Restaurant. The Second Amendment required that the Phase II improvements be completed no later than December 31, 2021, in order for certain incentives to remain in place.
In 2021, Globe Land Investors, LLC (“Globe”), purchased the approximately 150-acre regional center site from Macerich and assumed all rights and obligations under the original Development Agreement and its Amendments.
The Third Amendment was entered into in December 2021 and extended the time frame for the completion of certain improvements on the property until December 31, 2022, for both Globe and the City to engage in a comprehensive planning process to re-evaluate the development of the site. The parties are currently finalizing the amended planned area development re-zoning of the property and a major amendment to the development agreement for the site, but although close to finalizing both, will not complete the PAD or development agreement amendment by December 31, 2022.
The Developer and the City formed the McDowell Road Corridor Improvement District and the Developer then constructed approximately $43 million in roadway, infrastructure, and park improvements to Bullard Wash Park, to support the regional center and surrounding commercial development. The Developer then constructed the Market at Estrella Falls power center generally located at the intersection of McDowell Road and Pebblecreek Parkway.
The Great Recession delayed the construction of the planned regional mall and on December 14, 2009, the City and Macerich/Westcor entered into the First Amendment to the Development Agreement to extend the time frames to meet certain milestones in the project development due to ongoing economic conditions.
The Second Amendment to the Development Agreement was entered into by the parties on November 17, 2014, to redefine project milestones and provide for Phase I and Phase II Improvements for the project. The developer subsequently constructed the existing Harkins Theatre and developed a restaurant pad site for Cheddar’s Restaurant. The Second Amendment required that the Phase II improvements be completed no later than December 31, 2021, in order for certain incentives to remain in place.
In 2021, Globe Land Investors, LLC (“Globe”), purchased the approximately 150-acre regional center site from Macerich and assumed all rights and obligations under the original Development Agreement and its Amendments.
The Third Amendment was entered into in December 2021 and extended the time frame for the completion of certain improvements on the property until December 31, 2022, for both Globe and the City to engage in a comprehensive planning process to re-evaluate the development of the site. The parties are currently finalizing the amended planned area development re-zoning of the property and a major amendment to the development agreement for the site, but although close to finalizing both, will not complete the PAD or development agreement amendment by December 31, 2022.
STAFF ANALYSIS
Globe and the City are currently finalizing the amended Planned Area Development re-zoning of the property and a major amendment to the development agreement for the site, but although close to finalizing both, will not complete the PAD or development agreement amendment by December 31, 2022.
This Fourth Amendment will extend certain timeframes and deadlines under the Third Amendment in order for the parties to complete the PAD amendment process and finalize a comprehensive amendment to the Development Agreement until February 29, 2023.
This Fourth Amendment will extend certain timeframes and deadlines under the Third Amendment in order for the parties to complete the PAD amendment process and finalize a comprehensive amendment to the Development Agreement until February 29, 2023.