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ITEM #: 10.
DATE: 09/09/2024

AI #:2198
CITY COUNCIL ACTION REPORT
 
SUBJECT: ANNEXATION OF TWO PROPERTIES ALONG S LITCHFIELD ROAD, SOUTH OF W LOWER BUCKEYE ROAD FOR STREAM DATA CENTER (SDC I AND SDC II)
 
STAFF PRESENTER(S): Christian Williams, Planning Manager

OTHER PRESENTER(S):

Andrew Yancey, Bergin, Frakes, Smalley & Oberhotzer, PLLC

SUMMARY

This is a public hearing to consider the annexation of .558 acres of property along Litchfield Road south of West Lower Buckeye Road (SDC I Property) and annexation of 3.342 acres of property along Litchfield Road south of West Lower Buckeye Road (SDC II Property).

STRATEGIC PLAN ALIGNMENT

   

RECOMMENDATION

Conduct a public hearing to consider the annexation of two properties approximately .558 acre property (SDC I) and approximately 3.342 acre property (SDC II) along Litchfield Road south of West Lower Buckeye Road. (Christian Williams, Planning Manager)

FISCAL IMPACT

Annexation of land has a fiscal impact. A brief overview of anticipated public infrastructure and service impacts is included in the staff analysis section of this Council Action Report. A detailed fiscal impact will be included in future City Council reports. There is no fiscal impact associated with authorizing staff to proceed with the state statutory requirements for annexation. Authorizing the process to move forward does not commit the City Council to approve the annexation.

BACKGROUND AND PREVIOUS ACTIONS

Two parcels of property located at the southwest corner of Litchfield Road and W. Lower Buckeye Road, which are owned by separate entities, are being developed as the “Stream Data Centers".  The property owners are required to complete full half-street improvements for the west half of S. Litchfield Road adjacent to their respective properties and to dedicate the right-of-way needed for such improvements. The property to be annexed into the City abuts the west-half of S. Litchfield Road.  The first parcel is adjacent to the southwest corner of W. Lower Buckeye Road and S. Litchfield Road (the “SDC I Property”).  Although privately owned, the assessor’s map reflects the property as being county right of way.  Accordingly, to allow the half-street improvements to S. Litchfield Road to be constructed pursuant to the city’s standards, the two property owners are seeking to have the remainder of their respective properties annexed into the city.

At its regular meeting on July 8, 2024, City Council voted to authorize staff to initiate the annexation of approximately .558 acres of property along Litchfield Road south of West Lower Buckeye Road (SDC I Property) and approximately 3.342 acres of property along Litchfield Road south of the SDC I Property (SDC II Property).  The property is located within the city’s municipal planning area and meets State statutory requirements for annexation.

STAFF ANALYSIS

City’s Annexation Policy
The Goodyear City Council adopted an annexation policy by Resolution 2001-768 that provides staff with guidelines for the evaluation of annexation requests:
A. The City’s ability to provide basic services in a timely manner
B. Long-term desirability for community development and economic growth
C. Likelihood of the area being developed in Maricopa County or being annexed by another city or town
D. Ability to control the quality of land uses and infrastructure standards
E. Compatibility with General Plan, infrastructure needs, and timing of development
In this case, the annexation involves the annexation of property that will be dedicated to the city as right-of-way for the west half of S. Litchfield Road and will be improved by the adjacent property owners to meet city standards as part of the development of the Stream Data Center Campus. The proposed annexation will not result in any increase in service requirements on the part of the city than additional maintenance responsibilities for road improvements for the west-half of S. Litchfield Road between W. Lower Buckeye Road and W. Broadway Road.  The existing improvements to S. Litchfield Road end at W. Broadway Road.  It is not likely that Maricopa County will improve S. Litchfield Road between W. Lower Buckeye Road and W. Broadway Road nor is it likely that Avondale, which has annexed to the eastern boundary of S. Litchfield Road south of W. Lower Buckeye will either annex past the center line of S. Litchfield Road or develop the west half of S. Litchfield Road.  This annexation will allow the city to ensure its infrastructure needs and standards are met and compatible with the General Plan.

Annexation Process
The public hearings are required pursuant to the requirements of Arizona State Law, which regulates the annexation process.  Below is a brief summary of the annexation process, and the status of each step of the process:
  • Staff determines whether the proposed annexation area meets the state legal requirements for annexation as set forth in A.R.S. § 9-471.
    • Staff has determined that the annexation area meets the state legal requirements for annexation pursuant to the provisions of A.R.S. § 9-471 (S). 
  • Assuming the proposed annexation area meets the state legal requirements for annexation, staff conducts a review of the annexation proposal to determine the desirability of the annexation.
  • Staff provides an impact analysis of the annexation proposal to City Council. The City Council will consider the proposal and make a determination on whether to authorize staff to proceed with the annexation.
    • If authorization is not provided, then no further action on the annexation will be taken. If authorization is provided, staff will move forward with the state statutory requirements for annexation.
    • City Council considered the proposals on July 8, 2024 and authorized staff to move forward with the annexations.
  • After further staff review of the proposal, a blank petition containing the legal description and an accurate map of the annexation territory is filed with the County Recorder and notice and a copy of the filing shall be given to the clerk of the board of supervisors and to the county assessor.  The description shall identify the entity, if any, that will be responsible for maintaining the existing rights-of-way and roadways that are within or contiguous to the exterior boundaries of the area of the proposed annexation.
    • On August 19, 2024, a blank (unsigned) petition for each of the two proposed annexations containing the legal description and an accurate map of all exterior boundaries, including all County rights-of-way and roadways with no taxable value, of the territory proposed to be annexed was filed with the County Recorder of Maricopa County. The blank petitions were accompanied by a sworn affidavit verifying that no part of the territory for which the filing is made is subject to an earlier filing for annexation.
  • Pursuant to State law, there is a 30-day waiting period after the filing of the blank petition before petitions can be circulated for signature. The 30-day waiting period will end on September 17, 2024.
  • A public hearing must be held within the last 10 days of this 30-day waiting period to receive public input on the annexation. Notices of the public hearing must be: (i) published in a newspaper of general circulation at least fifteen days before the end of the 30-day waiting period and six (6) days before the public hearing; (ii) be posted in at least three conspicuous public places in the area being annexed at least six (6) days before the public hearing; (iii) sent by first class mail to the chairperson of the board of supervisors of the county in which the property being annexed is located at least six (6) days before the public hearing; (iv) sent by first class mail, with an accurate map of the property being annexed to each owner of the real and personal property as shown on the statement provided by the county assessor and department of revenue at least six (6) days before the public hearing. 
    • The public hearing being held on September 9, 2024 is within the last ten (10) days of the 30-day waiting period.  Notices of the public hearing being held on September 9, 2024 for each annexation was published in the Arizona Republic West Valley Edition on August 23, 2024, which is at least fifteen days before the end of the 30-day waiting period and at least six (6) days before the public hearing. On August 21, 2024, notices of the public hearings were also posted in three conspicuous places in each of the properties proposed to be annexed, which is at least six (6) days before the public hearing.  On August 21, 2024, notices of the public hearing along with an accurate map of the Annexation Area for each of the proposed annexations was mailed by first class mail to the County Board of Supervisors; to the County Assessor; and to the owner of real and personal property identified on the lists received from the Maricopa County Assessor and Arizona Department of Revenue, which is at least six (6) days before the public hearing.
  • Once the 30-day waiting period is over, the blank petitions may be signed and collected.
  • Once all petitions have been collected, the annexation may be scheduled for a City Council meeting for consideration.
Next Steps
The applicant will be able to circulate the blank petitions for signature after September 17, 2024.  Once that is done, the applicant will submit the signed petitions.  Assuming the petitions submitted satisfy the statutory requirements for an annexation to occur, the annexation will be scheduled for a city council meeting for final consideration by the City Council. 

Although the City’s General Plan designates this area as Industrial, the existing County zoning for both properties is Rural-190 (RU-190). Accordingly, if the City Council approves the annexation, the properties would be designated the city equivalent zoning district of Agricultural (AG).  

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