| ITEM #: 14. DATE: 08/31/2026 AI #:3147 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | RESOLUTION ESTABLISHING A SPECIAL PUBLIC IMPROVEMENT PROJECT AREA AND AUTHORIZING COST RECOVERY FOR CAPITAL IMPROVEMENT PROJECT (CIP) PROJECT #42026 - ESTRELLA PARKWAY: VINEYARD ROAD TO MC85 (ESTRELLA BRIDGE) |
| STAFF PRESENTER(S): | Steve Scinto, Director of Engineering; Logan Hopp, Deputy Director of Engineering |
SUMMARY
Adopt Resolution No. 2026-2538 (Attachment A) for the formation of a Special Public Improvement Project Area authorizing the Cost Recovery for CIP Project #42026 - Estrella Parkway: Vineyard Road to MC 85 (Estrella Bridge).
STRATEGIC PLAN ALIGNMENT
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RECOMMENDATION
Adopt Resolution No. 2026-2538 Approving and establishing a Special Public Improvement Project Area that includes properties receiving special benefits from improvements to widen Estrella Parkway and authorizing the City to recover an allocated share of the costs of the special public improvements from the owners of the specially benefited properties. (Steve Scinto, Director of Engineering; Logan Hopp, Deputy Director of Engineering)
FISCAL IMPACT
The estimated total cost attributable to the parcels subject to cost recovery, including design, utility coordination, right-of-way acquisition, and construction, is $20,844,530.67. The City will seek reimbursement from the owners and developers of the properties specially benefiting from these improvements at the time the specially benefited properties develop.
Attachment A, Exhibit 1 – Opinion of Maximum Probable Construction Cost for the Specially Benefited Properties provides a detailed, itemized breakdown of all offsite infrastructure components included in the allocated cost recovery calculation.
Attachment A, Exhibit 1 – Opinion of Maximum Probable Construction Cost for the Specially Benefited Properties provides a detailed, itemized breakdown of all offsite infrastructure components included in the allocated cost recovery calculation.
BACKGROUND AND PREVIOUS ACTIONS
At the September 26, 2022 Regular Council Meeting, Council authorized the expenditure of funds for the Estrella Bridge project in an amount not to exceed $3,700,000.
At the February 27, 2023 Regular Council Meeting, Council authorized the expenditure of design funds for Construction Manager At Risk (CMAR) Pre-construction services on the Estrella Parkway and Bridge project not to exceed $562,600.
At the September 18, 2023 Work Session, staff evaluated the original scope and recent recommendations from the 2023 Transportation Master Plan (TMP) consultant and recommended solutions for both Camelback Road Widening and Estrella Parkway/Bridge Widening projects. Council provided guidance on the proposed recommendations.
At the February 12, 2024 Regular Council Meeting, Council authorized the expenditure of design funds up to $5,500,000 for CIP Project #42026 – Estrella Parkway – Vineyard Avenue to MC85 (Estrella Bridge).
At the May 19, 2025 Regular Council Meeting, Council adopted Resolution No. 2025-2465 authorizing the acquisition of real and personal property interests needed for CIP Project #42026 – Estrella Parkway – Vineyard Avenue to MC85 (Estrella Bridge).
At the June 9, 2025 Special Council Meeting, Council authorized the expenditure of funds up to $111,412,100 for design and construction of CIP Project #42026 – Estrella Parkway – Vineyard Avenue to MC85 (Estrella Bridge).
At the February 27, 2023 Regular Council Meeting, Council authorized the expenditure of design funds for Construction Manager At Risk (CMAR) Pre-construction services on the Estrella Parkway and Bridge project not to exceed $562,600.
At the September 18, 2023 Work Session, staff evaluated the original scope and recent recommendations from the 2023 Transportation Master Plan (TMP) consultant and recommended solutions for both Camelback Road Widening and Estrella Parkway/Bridge Widening projects. Council provided guidance on the proposed recommendations.
At the February 12, 2024 Regular Council Meeting, Council authorized the expenditure of design funds up to $5,500,000 for CIP Project #42026 – Estrella Parkway – Vineyard Avenue to MC85 (Estrella Bridge).
At the May 19, 2025 Regular Council Meeting, Council adopted Resolution No. 2025-2465 authorizing the acquisition of real and personal property interests needed for CIP Project #42026 – Estrella Parkway – Vineyard Avenue to MC85 (Estrella Bridge).
At the June 9, 2025 Special Council Meeting, Council authorized the expenditure of funds up to $111,412,100 for design and construction of CIP Project #42026 – Estrella Parkway – Vineyard Avenue to MC85 (Estrella Bridge).
STAFF ANALYSIS
The Estrella communities south of the Gila River are experiencing growth consistent with the remainder of the city of Goodyear north of the Gila River. The section of Estrella Parkway north of MC85 is six lanes. The section of Estrella Parkway between Vineyard Avenue and MC85, including the Gila River bridge crossing, is two lanes. The section of Estrella Parkway south of Vineyard Avenue is four lanes.
The widening of Estrella Parkway between MC85 and approximately 1,200 feet south of Vineyard Avenue is identified in the City’s 2023 TMP. The scope of CIP Project #42026 – Estrella Parkway – Vineyard Avenue to MC85 (Estrella Bridge) includes widening Estrella Parkway to six lanes by widening the existing bridge for northbound travel from two lanes to three lanes and constructing a new three lane southbound bridge. The project will also increase the travel lanes on Estrella Parkway north and south of the bridge, providing a total of six through travel lanes. This project will improve long-term capacity and overall corridor performance of Estrella Parkway.
The estimated cost of CIP Project #42026 – Estrella Parkway – Vineyard Avenue to MC85 (Estrella Bridge) is $114,427,549, which includes costs of the improvements to the existing bridge, the costs of a new bridge, improvements adjacent to city-owned property, improvements adjacent to properties outside the city, improvements within state owned land, improvements adjacent to or over property that cannot be developed, and improvements located adjacent to privately owned developable properties.
Pursuant to City development requirements, the owners (or developers) of developable properties located within the City of Goodyear adjacent to the section of Estrella Parkway between Vineyard Avenue and MC85 are responsible for constructing full half-street improvements when their properties are developed. CIP Project #42026 – Estrella Parkway – Vineyard Avenue to MC85 (Estrella Bridge) includes the improvements the property owners would be required to construct when their properties develop. The City’s construction of these improvements constitutes a special benefit upon the adjacent properties for which the owners have not yet contributed. The estimated cost of the improvements that will provide special benefits to the adjacent developable properties is $20,844,530.67. Accordingly, staff is seeking to recover the cost of these improvements from the owners of the specially benefited properties through Council adoption of a cost recovery ordinance (CRO).
Resolution No. 2026-2538 would establish the Special Public Improvement Project Area and authorize the City to recover the costs of the improvements specially benefiting the adjacent properties.
The estimate of the maximum probable cost allocated to each benefited property is set forth in Exhibit 1 of the Resolution (Attachment A). A summary of the allocated costs is provided below:
Parcel 1: KR TIC 1 LLC/KR TIC 2 LLC
Opinion of Maximum Probable Cost: $4,845,218.80
Parcel 2: KR TIC 1 LLC/KR TIC 2 LLC
Opinion of Maximum Probable Cost: $917,721.68
Parcel 3: PIONEER 2005 LLC
Opinion of Maximum Probable Cost: $4,703,320.53
Parcel 4: CRE-WPL ESTRELLA OWNER LLC
Opinion of Maximum Probable Cost: $1,661,658.19
Parcel 5: CRE-WPL ESTRELLA OWNER LLC
Opinion of Maximum Probable Cost: $3,470,233.07
Parcel 6: CRE-WPL ESTRELLA OWNER LLC
Opinion of Maximum Probable Cost: $1,257,547.71
Parcel 7: CRE-WPL ESTRELLA OWNER LLC
Opinion of Maximum Probable Cost: $2,269,704.05
Parcel 8: CRE-WPL ESTRELLA OWNER LLC
Opinion of Maximum Probable Cost: $1,719,126.64
City staff began outreach efforts on December 9, 2025, with the three property owners whose properties will receive special benefits from the improvements being constructed. Outreach included written notice briefly describing the need for the project, the project scope, and identifying the need to establish a resolution of intent (ROI) governed by City Ordinance Article 24-1 Public Improvements Cost Recovery. Since staff's initial contact, staff has been actively engaged with representatives of KR TIC 1 LLC/KR TIC 2 LLC and CRE-WPL Estrella Owner LLC, including several meetings and detailed discussions on the project scope, cost allocation for the benefited parcels, and information on the cost recovery process within the City. These discussions included presentations and review of opinions of maximum probable costs, in which staff reviewed and adjusted based on the benefited properties comments. Even with City staff's repeated outreach efforts, representatives of Pioneer 2005 LLC have had minimal responses to staff's outreach and requests to meet to answer any questions or concerns they have made regarding the cost recovery. The following is a summary of the contacts.
KR TIC 1 LLC/KR TIC 2 LLC:
The owners of the specially benefited properties were notified in writing of the city’s intent to seek cost recovery for the improvements benefiting their respective properties, including the formation of a Special Public Improvement Project Area and the hearing before council to consider the cost recovery resolution. The purpose of the public hearing is to provide the benefited property owners opportunity to raise any objections to the cost allocation methodology.
Upon submittal of development proposals for these properties, the city will require reimbursement of the proportionate share of the improvement costs. Reimbursement will be required prior to the recordation of the first final plat subdividing all or any portion of a benefited property, or as a condition of approval of any site plan for development of any portion of a benefited property. The city will be entitled to withhold construction permits until the required reimbursement has been made.
Staff recommends adopting Resolution No. 2026-2538, included as Attachment A, establishing the Special Public Improvement Project Area and requiring the owners of properties receiving special benefits from the Estrella Parkway widening improvements to reimburse the city for their proportionate share of the costs, in an amount not to exceed the maximum probable costs set forth in the estimates attached to the resolution.
The widening of Estrella Parkway between MC85 and approximately 1,200 feet south of Vineyard Avenue is identified in the City’s 2023 TMP. The scope of CIP Project #42026 – Estrella Parkway – Vineyard Avenue to MC85 (Estrella Bridge) includes widening Estrella Parkway to six lanes by widening the existing bridge for northbound travel from two lanes to three lanes and constructing a new three lane southbound bridge. The project will also increase the travel lanes on Estrella Parkway north and south of the bridge, providing a total of six through travel lanes. This project will improve long-term capacity and overall corridor performance of Estrella Parkway.
The estimated cost of CIP Project #42026 – Estrella Parkway – Vineyard Avenue to MC85 (Estrella Bridge) is $114,427,549, which includes costs of the improvements to the existing bridge, the costs of a new bridge, improvements adjacent to city-owned property, improvements adjacent to properties outside the city, improvements within state owned land, improvements adjacent to or over property that cannot be developed, and improvements located adjacent to privately owned developable properties.
Pursuant to City development requirements, the owners (or developers) of developable properties located within the City of Goodyear adjacent to the section of Estrella Parkway between Vineyard Avenue and MC85 are responsible for constructing full half-street improvements when their properties are developed. CIP Project #42026 – Estrella Parkway – Vineyard Avenue to MC85 (Estrella Bridge) includes the improvements the property owners would be required to construct when their properties develop. The City’s construction of these improvements constitutes a special benefit upon the adjacent properties for which the owners have not yet contributed. The estimated cost of the improvements that will provide special benefits to the adjacent developable properties is $20,844,530.67. Accordingly, staff is seeking to recover the cost of these improvements from the owners of the specially benefited properties through Council adoption of a cost recovery ordinance (CRO).
Resolution No. 2026-2538 would establish the Special Public Improvement Project Area and authorize the City to recover the costs of the improvements specially benefiting the adjacent properties.
The estimate of the maximum probable cost allocated to each benefited property is set forth in Exhibit 1 of the Resolution (Attachment A). A summary of the allocated costs is provided below:
Parcel 1: KR TIC 1 LLC/KR TIC 2 LLC
Opinion of Maximum Probable Cost: $4,845,218.80
Parcel 2: KR TIC 1 LLC/KR TIC 2 LLC
Opinion of Maximum Probable Cost: $917,721.68
Parcel 3: PIONEER 2005 LLC
Opinion of Maximum Probable Cost: $4,703,320.53
Parcel 4: CRE-WPL ESTRELLA OWNER LLC
Opinion of Maximum Probable Cost: $1,661,658.19
Parcel 5: CRE-WPL ESTRELLA OWNER LLC
Opinion of Maximum Probable Cost: $3,470,233.07
Parcel 6: CRE-WPL ESTRELLA OWNER LLC
Opinion of Maximum Probable Cost: $1,257,547.71
Parcel 7: CRE-WPL ESTRELLA OWNER LLC
Opinion of Maximum Probable Cost: $2,269,704.05
Parcel 8: CRE-WPL ESTRELLA OWNER LLC
Opinion of Maximum Probable Cost: $1,719,126.64
City staff began outreach efforts on December 9, 2025, with the three property owners whose properties will receive special benefits from the improvements being constructed. Outreach included written notice briefly describing the need for the project, the project scope, and identifying the need to establish a resolution of intent (ROI) governed by City Ordinance Article 24-1 Public Improvements Cost Recovery. Since staff's initial contact, staff has been actively engaged with representatives of KR TIC 1 LLC/KR TIC 2 LLC and CRE-WPL Estrella Owner LLC, including several meetings and detailed discussions on the project scope, cost allocation for the benefited parcels, and information on the cost recovery process within the City. These discussions included presentations and review of opinions of maximum probable costs, in which staff reviewed and adjusted based on the benefited properties comments. Even with City staff's repeated outreach efforts, representatives of Pioneer 2005 LLC have had minimal responses to staff's outreach and requests to meet to answer any questions or concerns they have made regarding the cost recovery. The following is a summary of the contacts.
KR TIC 1 LLC/KR TIC 2 LLC:
- 12/09/2025: Initial CRO letter sent describing project and informed of the CRO
- 2/11/2026: Meeting held and project costs presented
- 3/14/2026: Comments received of costs associated with each benefitted parcel
- 4/10/2026: City staff provided comment responses and updated cost estimates
- 4/19/2026: Issued 30-day CRO notice which included updated cost estimates
- 5/8/2026: Notified owner that council hearing date was shifting to address concerns on project costs
- 6/18/2026: City staff met with property owned to discuss a requested development agreement associated with cost repayment for Cotton Lane cost recovery and Estrella Parkway cost recovery
- 7/31/2026: Issued updated 30-day CRO notice for Council hearing on 8/31/2026, including updated cost based on contractor pricing
- 12/09/2025: Initial CRO letter sent describing project and informed of the CRO
- 2/19/2026: Meeting held and project costs presented
- 4/03/2026: Meeting held and property owner provided comments on cost estimates
- 4/16/2026: Issued 30-day CRO notice which included updated cost estimates
- 5/8/2026: Notified owner that council hearing date was shifting to address concerns on project costs
- 7/31/2026: Issued updated 30-day CRO notice for Council hearing on 8/31/2026, including updated cost based on contractor pricing
- 12/09/2025: Initial CRO letter sent describing project and informed of the CRO
- 4/13/2026: Issued 30-day CRO notice which included updated cost estimates
- 4/20/2026: Meeting held and property owner provided comments on cost estimates
- 5/01/2026: City staff sent follow-up email asking if property owner would like to meet to discuss costs and CRO process
- 5/06/2026: Received notification for additional contact at Pioneer Board to coordinate with. City staff followed up with an introduction and offered to meet, but did not receive any additional correspondence.
- 5/8/2026: Notified owner that council hearing date was shifting to address concerns on project costs
- 7/30/2026: City staff contacted property owned stating Council hearing date of 8/31/2026 for cost recovery, offering several times and days available to meet and discuss further, no response was received.
- 7/31/2026: Issued updated 30-day CRO notice for Council hearing on 8/31/2026, including updated cost based on contractor pricing
The owners of the specially benefited properties were notified in writing of the city’s intent to seek cost recovery for the improvements benefiting their respective properties, including the formation of a Special Public Improvement Project Area and the hearing before council to consider the cost recovery resolution. The purpose of the public hearing is to provide the benefited property owners opportunity to raise any objections to the cost allocation methodology.
Upon submittal of development proposals for these properties, the city will require reimbursement of the proportionate share of the improvement costs. Reimbursement will be required prior to the recordation of the first final plat subdividing all or any portion of a benefited property, or as a condition of approval of any site plan for development of any portion of a benefited property. The city will be entitled to withhold construction permits until the required reimbursement has been made.
Staff recommends adopting Resolution No. 2026-2538, included as Attachment A, establishing the Special Public Improvement Project Area and requiring the owners of properties receiving special benefits from the Estrella Parkway widening improvements to reimburse the city for their proportionate share of the costs, in an amount not to exceed the maximum probable costs set forth in the estimates attached to the resolution.