The Development Agreement for Fulton Homes at Ballpark Village is intended to address Fulton Home’s obligations related to the construction of or payment toward the costs of public infrastructure along the frontage of or adjacent to the Property and the terms pursuant to which Fulton Homes will complete the construction of public infrastructure improvements for which Fulton Homes is not 100% responsible for constructing.

ADOPT RESOLUTION NO. 2023-2302 APPROVING THE DEVELOPMENT AGREEMENT FOR FULTON HOMES AT BALLPARK VILLAGE; AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE SAID DEVELOPMENT AGREEMENT; PROVIDING AUTHORIZATION FOR FUTURE ACTIONS; AND PROVIDING FOR AN EFFECTIVE DATE. (Stephen Scinto, Director of Engineering)

The Development Agreement for Fulton Homes at Ballpark Village addresses the obligations of Fulton Homes for the construction of or payment toward the costs of public infrastructure along the frontage of or adjacent to the Property which they are responsible for. 

The Development Agreement for Fulton Homes at Ballpark Village also addresses the city’s reimbursement obligations if Fulton Homes were to construct public infrastructure improvements on behalf of the City for which Fulton Homes is not responsible for constructing, however construction of which would prevent the creation of scalloped streets. If Fulton Homes constructs improvements contemplated in this development agreement the City would be responsible for reimbursing Fulton Homes for the cost incurred in the completion of these improvements:

Yuma Road Improvements are currently estimated to be $4.2 million.

• A portion of this cost will be offset by in-lieu payments made by adjacent projects, as they develop.  To date, the City has received an In-Lieu payment from Centerra for Yuma Road in the amount of $539,400.
• Additional future in-lieu payments from other adjacent properties are estimated at $2.4 million and will be paid when the projects develop.
• Based on current estimates the remaining $1.3 million is the responsibility of the City.

Traffic signal at the intersection of Goodyear Boulevard and Yuma Road currently estimated to be $500,000.

• The City would be responsible for reimbursing Fulton Homes for 50% of the costs of these improvements
• One additional in-lieu payment of 25% of the estimated cost is anticipated upon the development of the northwest corner.

If Fulton Homes does not complete the Reimbursable Improvements described above, the City would be responsible for constructing the improvements at some point in the future and Fulton Homes would be required to remit an in-lieu payment of the estimated costs.Completion of these projects by Fulton Homes is anticipated to result in lower overall cost and avoid the creation of scalloped roads. The full cost to the City will be approximately $4.7 million which will be funded in the FY2024-28 Capital Improvement Plan.

Fulton Homes owns approximately 156 acres of land generally located at the southeast corner of Estrella Parkway and Yuma Road that is being developed as Fulton Homes at Ballpark Village (the “Property”). The Property was zoned to the Planned Area Development (PAD) Zoning District by Ordinance 2022-1535 adopted by the Mayor and Council of the City of Goodyear on April 18, 2022. Subsequently, the PAD was amended by Ordinance No. 2023-1567, adopted by the Mayor and Council of the City of Goodyear on January 11, 2023. In addition, a Preliminary Plat for Fulton Homes at Ballpark Village was also approved by the Mayor and Council of the City of Goodyear on January 11, 2023.
 

Under applicable Development Regulations and conditions of approval/stipulations in Ordinance 2022-1535, the property owner is required to dedicate right-of-way; construct infrastructure improvements unless constructed by others; make in-lieu payments for infrastructure improvements for which 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 is adjacent to the section of Yuma Road between Estrella Parkway and the western boundary of the Bullard Wash is adjacent to the northern boundary of the Property. The Development Agreement for Fulton Homes at Ballpark Village addresses the property owner’s responsibilities as it relates to improvements to Yuma Road.

Yuma Road Improvements Owner is Required to Construct:
Owner is required to construct full half-street improvements for the south half of the section of Yuma Road that fronts the northern boundary of the Property. The development agreement addresses Owner’s responsibilities for these improvements, including the timing the improvements are to be completed and Owner’s obligations for making in-lieu payments if the improvements have been or are being completed by others. The completion of the improvements to the south half of Yuma Road will be phased with the section of Yuma Road between Estrella Parkway and Goodyear Blvd being completed before any certificates of completion or occupancy, except for model homes, are issued for any structures within the entire Property (“Phase 1 Yuma Road Improvements”). The section of Yuma Road between Goodyear Blvd and the western boundary of the Bullard Wash is to be completed before any certificates of completion or occupancy are issued for structures, within the area identified as Phase 2 and Phase 3 of the Property (“Phase 2 Yuma Road Improvements”). 

Reimbursable Yuma Road Improvements:
The development agreement addresses Owner’s obligations for the construction of the Reimbursable Yuma Road Improvements. These improvements include the following:

• a bridge or culvert on Yuma Road over the Bullard Wash
• full half-street improvements for the north half of the section of W. Yuma Road from the Goodyear Blvd alignment to the western boundary of the Bullard Wash
• full street (both the north and south sides of W. Yuma Road) improvements for the section of W. Yuma Road between the eastern boundary of the Bullard Wash and approximately 550 feet east of the eastern boundary of the Bullard Wash

Prior to undertaking the construction of the Phase 2 Yuma Road Improvements, Owner is to provide updated costs for the improvements so that staff can determine if funding exists for the project. If the City issues a Notice to Proceed by the City, Owner is required to construct the Reimbursable Yuma Road Improvements when it constructs the Phase 2 Yuma Road Improvements. If the City does not issue a Notice to Proceed for the construction of the Reimbursable Yuma Road Improvements, Owner will be responsible for making an in-lieu payment for 25% of the estimated costs of the bridge/culvert.

Traffic Signal at Goodyear Blvd and Yuma Road:
The development agreement also addresses Owner’s responsibility for constructing a traffic signal at Goodyear Blvd. and Yuma Road. Again, Owner is to provide updated the costs of for the traffic signal, so that staff can determine if funding exists for the project. If the City issues a Notice to Proceed, the traffic signal is to be completed before any certificates of completion or occupancy are issued for structures within the area identified as Phase 2 and Phase 3 of the Property. If the City does not issue a Notice to Proceed for the construction of the traffic signal at Goodyear Blvd and Yuma Road, Owner will be responsible for making an in-lieu payment for 50% of the estimated costs of the traffic signal. 

Right-of-Way:
The City is required to acquire all right-of-way needed for the construction of the Reimbursable Yuma Road Improvements and the Traffic Signal at Goodyear Blvd and Yuma Road. 

Expedited Review:
Under the terms of the development agreement and in consideration of Owner’s efforts thus far, the City has agreed to provide expedited plan review for all construction plans for the foregoing infrastructure improvements. Expedited plan reviews shall be completed within twelve (12) business days of the City’s receipt of an administratively complete submittal. If the City has issued a Notice to Proceed for the construction of the Reimbursable Yuma Road Improvements, the City will reimburse Owner 100% of the expedited plan review fees collected when the Reimbursable Yuma Road Improvements have been completed. If the City fails to issue a Notice to Proceed, the City shall reimburse Owner 100% of the expedited fees collected.

Staff Recommendation:
Staff is recommending the approval of the Development Agreement for Fulton Homes at Ballpark Village. If Fulton Homes does not construct the Reimbursable Yuma Road Improvements and the traffic signal at Goodyear Blvd and Yuma Road, the City will be responsible for these improvements for the following reasons: 

• There is no property owner that is 100% responsible for the construction of the bridge/culvert over the Bullard Wash on Yuma Road
• There is no property owner that is 100% responsible for the construction of the traffic signal at Goodyear Blvd and Yuma Road
• The north half of the section of Yuma Road between Goodyear Blvd and the western edge of the Yuma Wash is almost entirely adjacent to a fully developed subdivision
• The section of Yuma Road east of the western boundary of the Bullard Wash that Is to be fully constructed (i.e. north and south sides) is located almost entirely along the wash that the City owns

The development agreement would allow for the construction of these improvements outside a CIP City project, assuming funding is available; and, if, the City requires these improvements to be completed prior to when Owner is ready to commence construction of the Phase 2 Yuma Road Improvements, the City can move forward with them and Owner would be responsible for making in-lieu payments for those improvements for which Owner is only partially responsible.