| ITEM #: 10. DATE: 07/06/2026 AI #:3332 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | RESOLUTION APPROVING THE DEVELOPMENT AGREEMENT FOR REIMBURSEMENT OF TRAFFIC SIGNAL IMPROVEMENTS |
| STAFF PRESENTER(S): | Kini Knudson, Deputy City Manager |
OTHER PRESENTER(S):
Andrew D. Yancey, Esq., Bergin, Frakes, Smalley & Oberholtzer, PLLC
SUMMARY
The Development Agreement for Reimbursement of Traffic Signal Improvements (the “Agreement”) between the city of Goodyear (“City”), Estrella North LLC (“Owner”) and CBDG Goodyear LLC (“Developer”) allows for the design, construction and dedication of a traffic signal and related infrastructure to the City and for the reimbursement of up to $1,000,000 by the City for the Traffic Signal Improvements to either the Owner or the Developer as the constructing party after certain conditions are met, included as Attachment A.
STRATEGIC PLAN ALIGNMENT
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RECOMMENDATION
Adopt Resolution No. 2026-2531 approving the Development Agreement for reimbursement of traffic signal improvements. (Kini Knudson, Deputy City Manager)
FISCAL IMPACT
The City’s maximum financial obligation under the Agreement is one million dollars ($1,000,000), which is the maximum reimbursement amount for eligible costs associated with the design and construction of certain traffic signal improvements described in the Agreement.
Up to $500,000 may be reimbursed by the City after either the Developer or Owner obtains building permits and initiates construction of both the “road improvements” and the “minimum retail improvements”, as described in the Agreement. The remaining reimbursement of up to $1,000,000, which is the maximum reimbursement amount, may be reimbursed by the City upon the issuance of a certificate of occupancy of the “grocery building”, and issuance of certificate of completion for the related “shops A” and acceptance of the road improvements by the City Engineer.
All payments will be made only upon verification of complete reimbursement packages submitted to the City and outlining the eligible costs expended and meeting documentation and Arizona Revised Statutes Title 34 requirements. Reimbursement packages may be submitted to the city on a monthly basis.
Up to $500,000 may be reimbursed by the City after either the Developer or Owner obtains building permits and initiates construction of both the “road improvements” and the “minimum retail improvements”, as described in the Agreement. The remaining reimbursement of up to $1,000,000, which is the maximum reimbursement amount, may be reimbursed by the City upon the issuance of a certificate of occupancy of the “grocery building”, and issuance of certificate of completion for the related “shops A” and acceptance of the road improvements by the City Engineer.
All payments will be made only upon verification of complete reimbursement packages submitted to the City and outlining the eligible costs expended and meeting documentation and Arizona Revised Statutes Title 34 requirements. Reimbursement packages may be submitted to the city on a monthly basis.
BACKGROUND AND PREVIOUS ACTIONS
The Owner owns approximately 12.82 acres adjacent to Estrella Parkway and North Lake within the Estrella community (the “Property”), that is currently a dirt lot. The Developer intends to develop an integrated, high-quality mixed-use project on the Property, or a portion thereof, anchored by a specialty grocer and supported by complementary retail uses. Owner intends to convey the Property to Developer within one (1) year of the effective date of the Agreement and Developer will develop the project over two or more phases.
To support the development, the parties to the Agreement acknowledge the need for construction and dedication of road improvements, including; a 3-way traffic signal with Intelligent Transportation Systems (ITS) infrastructure, median reconfiguration, and three deceleration lanes.
To allow the project to move forward, the city agrees to reimburse either Owner or Developer for certain costs related to the design and construction of the traffic signal improvements and ITS infrastructure.
To support the development, the parties to the Agreement acknowledge the need for construction and dedication of road improvements, including; a 3-way traffic signal with Intelligent Transportation Systems (ITS) infrastructure, median reconfiguration, and three deceleration lanes.
To allow the project to move forward, the city agrees to reimburse either Owner or Developer for certain costs related to the design and construction of the traffic signal improvements and ITS infrastructure.
STAFF ANALYSIS
The City has determined that the project will increase and retain jobs, strengthen the City’s tax base, enhance economic welfare and quality of life, stimulate the surrounding development, and result in public infrastructure that benefits the broader community. The proposed Agreement supports the City’s goals by enabling a high-quality specialty grocer retail anchor and related commercial activity. The road improvements address necessary traffic flow and safety enhancements along Estrella Parkway and would not otherwise be constructed without the project.
The Developer will:
The Developer will:
- design and construct the traffic signal improvements on Estrella Parkway pursuant to approved plans;
- dedicate necessary right-of-way at no cost;
- comply with applicable development regulations;
- provide required warranty and procurement documentation;
- follow Arizona Revised Statutes Title 34 related to the design, installation, and/or construction of the traffic signal improvements; and
- submit reimbursement packages containing lien releases and proof of payment to the city for approval to be eligible for reimbursement.
- Developer entering negotiations to acquire the Property and closing on the Property within one (1) year of the effective date of the Agreement;
- Commencement of construction of specific minimum retail improvements and certain road improvements within eighteen (18) months of the effective date of the Agreement, and
- Developer obtaining an executed ten (10) year lease with a “Specialty Grocer” as defined in the Agreement.
- process reimbursement packages within required review timelines stated in the Agreement; and
- reimburse only documented and approved eligible costs related to the traffic signal and related improvements; and
- accept ownership of the road improvements and traffic signal and assume full maintenance and operation responsibility after the applicable warranty period.