The Development Agreement for Bullard Avenue Improvements is intended provide for reimbursements to the city for costs of improvements the city will be making to Bullard Avenue that the property owner is required construct and to obtain the property interests needed for the city to complete the improvements.
 

ADOPT RESOLUTION NO. 2023-2320  APPROVING THE DEVELOPMENT AGREEMENT FOR BULLARD AVENUE IMPROVEMENTS WITH SQUAW PEAK GOODYEAR, LLC AN ARIZONA LIMITED LIABILITY COMPANY; 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 city is undertaking a capital improvement project to eliminate scalloped streets along a section of Bullard Avenue, which is currently estimated to cost $1.55 million. Pursuant to the terms of the proposed development agreement, the city will be reimbursed the actual costs the city incurs in constructing improvements to Bullard Avenue that the owner of the Property is required to construct subject to a maximum reimbursement of $1,261.271.50.  The difference between the total project cost and the maximum reimbursement is due to interim drainage improvements and median improvements that are contained in the total project, but not the responsibility of the developer.

Squaw Peak Goodyear owns approximately 12 acres of land generally located at the southwest corner of Van Buren Street and Bullard Avenue (the “Property”). The Property was part of an approximate 95-acre parcel of land commonly known as Goodyear Airport Commons (the “Goodyear Airport Commons Property”) that was re-zoned by ordinance 2019-1422 adopted by the Goodyear City Council on February 11, 2019. Under the terms of Ordinance 2019-1422, the owner(s) of the Goodyear Airport Commons Property are required to dedicate to the City right-of-way needed for the completion of the full half-street improvements to the west-half of the section of Bullard Avenue located within the Bullard Avenue alignment and public utility easement(s) (“PUE”) along the frontage of Bullard Avenue and to construct full half-street improvements required for a major arterial for the section of Bullard Avenue fronting the Goodyear Airport Commons Property when the Goodyear Airport Commons Property develops and the improvements are to be constructed in substantial conformance with the design strategies as established within that certain document titled Bullard Avenue Corridor Design Treatment Strategies November 2018, which document was declared a public record by Resolution No. 2019-1927. The Goodyear Airport Commons Property was subsequently subdivided into three lots by that certain Minor Land Division for Goodyear Airport Commons. 

The improvements to Bullard Avenue along the frontage of the Goodyear Airport Commons Property have been completed except for section of Bullard Avenue along the frontage of the Property and the city has received the dedications of right-of-way and the PUE from the other owners of the Goodyear Airport Commons Property except for the dedications required from the owner of the Property. The city is undertaking a capital improvement project to eliminate scalloped streets along a section of Bullard Avenue estimated to cost $1.55 million (the “Bullard Avenue Widening Project”) and will be constructing some of the improvements the owner of the Property is required to construct.

Staff had been prepared to pursue a Cost Recovery Resolution to obtain reimbursement for the costs of the Bullard Avenue Improvements from the owners of properties benefitted from the Bullard Avenue Improvements.  Because the Property is the only private property benefitted by the Bullard Avenue Improvements, the City and the owner of the Property, Squaw Peak Goodyear, have agreed to enter this reimbursement agreement for Squaw Peak Goodyear’s payment for the Bullard Avenue Improvements and dedication of the real property interests need to complete the improvements. Under the terms of the agreement, the Owner of the Property will reimburse the city the actual costs the city incurs in constructing improvements to Bullard Avenue that the owner of the Property is required to construct subject to a maximum reimbursement of $1,261.271.50. The payment will be made prior the issuance of any construction permit for work within the Property.

City is recommending the approval of the Development Agreement for Bullard Avenue Improvements as it ensures the city will receive the real property interest that are required to be dedicated to the city under Ordinance 2019-1422 and that are needed for the completion of the Bullard Avenue Widening Project and provides for the reimbursement for the cost of the portion of the improvements the owner of the Property is responsible for constructing without having to resort to the cost recovery process.