| ITEM #: 6. DATE: 03/24/2025 AI #:2497 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | AUTHORIZING THE MODIFICATION OF ASSESSMENT NUMBER 11-01-008 WITHIN THE MCDOWELL ROAD COMMERCIAL CORRIDOR IMPROVEMENT DISTRICT (“MRCCID”) |
| STAFF PRESENTER(S): | Jared Askelson, Finance Director |
SUMMARY
Approval of this resolution, included as attachment A, would divide a single assessment within the MRCCID into two assessments, based on the replatting of the property comprising the assessed area. Modifying the assessment would allocate the unpaid assessment amount among the properties as follows:
Original Assessment No. 11-01-008 - $798,837.52
New Assessment No. 11-04-001 (Lot 8A) - $502,600.09
New Assessment No. 11-04-002 (Lot 8B) - $296,237.43
New Assessment No. 11-04-003 (ROW) - $0
Original Assessment No. 11-01-008 - $798,837.52
New Assessment No. 11-04-001 (Lot 8A) - $502,600.09
New Assessment No. 11-04-002 (Lot 8B) - $296,237.43
New Assessment No. 11-04-003 (ROW) - $0
STRATEGIC PLAN ALIGNMENT
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RECOMMENDATION
ADOPT RESOLUTION NO. 2025-2454 APPROVING THE MODIFICATION OF ASSESSMENT NUMBER 11-01-008 WITHIN THE MCDOWELL ROAD COMMERCIAL CORRIDOR IMPROVEMENT DISTRICT. (Jared Askelson, Finance Director)
FISCAL IMPACT
All costs related to the assessment modification process including the application fee, District Engineer, and legal costs are paid in advance by the applicants. Approval of the requested modification will have a fiscal impact upon the City and the MRCCID. The City of Goodyear owns Lot 8A and has a vested interest in this modification. The City's portion of the modified assessment (11-04-001) will be paid in full per the Escrow Hold Back Agreement, included as attachment E, that was a part of the Council approved land purchase. No assessment will be placed on the right of way to be owned by the City. Approval of this petition for modification, included as attachment B, will cause the creation of new assessment parcels with the total assessment amount unchanged.
BACKGROUND AND PREVIOUS ACTIONS
The MRCCID was created in 2006 by Resolution 06-1098 to assist with the funding of public infrastructure related to the MRCCID and the development of a regional mall and retail center. Improvement Bonds were issued in 2007 in the principal amount of $47,165,000, with principal and interest to be repaid through assessments apportioned to parcels within the MRCCID. The Improvement Bonds were refinanced at a lower interest rate in 2018 with Refunding Bonds.
The original assessment parcels have previously been modified by City Council in 2010, 2018, 2020, 2022, and 2024 following petitions from the property landowners. These assessments are generally modified as development plans are solidified, and new parcels are created with Maricopa County. As part of the assessment process the District Engineer reviews and certifies that the modification's effect on the ratio of fair market value between the original and amended parcels complies with the original intent of the assessment model.
The City purchased Lot 8A from Globe Land Investors, LLC in December 2024. The new assessment 11-04-001 will be paid in full. The City entered into an Escrow Hold Back Agreement with the purchase of Lot 8A. The payoff money will be sent to the City from the Escrow company after the completion of this modification.
The original assessment parcels have previously been modified by City Council in 2010, 2018, 2020, 2022, and 2024 following petitions from the property landowners. These assessments are generally modified as development plans are solidified, and new parcels are created with Maricopa County. As part of the assessment process the District Engineer reviews and certifies that the modification's effect on the ratio of fair market value between the original and amended parcels complies with the original intent of the assessment model.
The City purchased Lot 8A from Globe Land Investors, LLC in December 2024. The new assessment 11-04-001 will be paid in full. The City entered into an Escrow Hold Back Agreement with the purchase of Lot 8A. The payoff money will be sent to the City from the Escrow company after the completion of this modification.
STAFF ANALYSIS
Globe Land Investors, LLC and The City of Goodyear, as owners of the property, have petitioned for a modification of a certain assessment of their property within the MRCCID. The City owns lot 8A and Globe owns Lot 8B. The petition for modification, included as attachment B, contains one existing parcel that would be split into two distinct parcels with one right of way and be allocated a fair share of the existing assessment based upon the original intent of the assessment model. The map of assessment modification, included as attachment D, shows how the new assessments will be created in the MRCCID.
If City Council approves the petition for modification, included as attachment B, new assessment numbers and amounts will be assigned as proposed. The new assessments will be recorded in the office of Superintendent of Streets of the McDowell Road Commercial Corridor Improvement District with the modified assessment, included as attachment C. The modification of assessments has been reviewed, and it is determined that the modification is in compliance with State law, City policies and the best interest of the City.
If City Council approves the petition for modification, included as attachment B, new assessment numbers and amounts will be assigned as proposed. The new assessments will be recorded in the office of Superintendent of Streets of the McDowell Road Commercial Corridor Improvement District with the modified assessment, included as attachment C. The modification of assessments has been reviewed, and it is determined that the modification is in compliance with State law, City policies and the best interest of the City.
Attachments
- Attachment A - Resolution 2025-2454
- Attachment B - Petition for Modification
- Attachment C - Modified Assessment
- Attachment D - Map of Assessment Modification
- Attachment E - Escrow Hold Back Agreement