Acceptance of a Special Warranty Deed required for the intersection improvements at the southeast corner of Citrus and Camelback Roads from Superpharm II, LLC, a Delaware limited liability company (“Superpharm”) and the issuance of an Easement to the Maricopa County Municipal Water Conservation District Number One, a political subdivision of the State of Arizona (“MWD”) for the relocation of their facilities, both of which are needed in conjunction with the Sedella Development.

Approve the acceptance of the Special Warranty Deed from Superpharm for the intersection improvements and issuance of an Easement to MWD required for the relocation of their facilities, as required for the Sedella Development. (Linda Beals, Real Estate Coordinator)

There will be no fiscal impact to the city in fiscal year 2022 or future years related to the acceptance of the deed or the issuance of the easement.
 

Meritage Homes, which is developing a residential planned area development known as Sedella located at the southeast corner of Citrus Road and Camelback Road, is required to construct half-street improvements to the sections of Citrus Road and Camelback Road adjacent to the property (the “Citrus Road Improvements” and (the “Camelback Road Improvements” respectively).  Maricopa County Water District has certain infrastructure improvements located within the Camelback and Citrus Road alignments that need to be relocated before the Citrus Road Improvements and the Camelback Road Improvements can be completed (“MWD Facilities”). 

Meritage Homes will be relocating the MWD Facilities and completing the Citrus Road Improvements and Camelback Road Improvements.  Additional right-of-way at the southeast corner of Citrus Road and Camelback Road is required for the completion of these improvements, the relocation of the MWD Facilities, and the construction of a traffic signal that is going to be needed at some point because of the development of the properties around this intersection, including Sedella. 

Meritage Homes was able to get the owner of the property at the southeast corner of Citrus and Camelback (Superpharm II, LLC) to dedicate the additional right-of-way needed.  However, before MWD will allow its facilities to be relocated, MWD is requiring that the city grant it an easement over a portion of the additional right-of-way being conveyed to the city where certain of the relocated facilities will be located. 
 

The Special Warranty Deed attached hereto conveys to the City the additional right-of-way that engineering staff determined the City needs.  The MWD Easement is an easement that the City will issue to MWD granting it an easement over a portion of the right-of-way being conveyed to the City in the attached Special Warranty Deed.  The special warranty deed, if accepted, will be recorded first, followed by the MWD Easement, if approved. 

The terms of the MWD easement are generally consistent with the MWD’s rights in property where existing MWD facilities are located.  The MWD easement includes terms that provide MWD with prior and superior rights to the property, and includes terms that allow them to place additional equipment within the easement area and to require the City to pay for damage to the City’s improvements that may be damaged by MWD or the contractor’s.  These terms, although not optimum, are non-negotiable items with the MWD. and based upon the limited city improvements in the easement area, are considered to create a nominal risk to the City.  Accordingly, staff is recommending the City accept the conveyance of the property described in the attached Special Warranty Deed and grant MWD and easement attached hereto.