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AGENDA ITEM REVIEW FORM |
6.D.
Regular City Council Meeting
- Meeting Date:
- 06/24/2020
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Motion
Order
Order
ITEM:
Discussion and possible action on any and all matters regarding Order No. 2020-15. An order of the Mayor and City Council of the City of San Luis, Arizona approving and adopting an amendment to the February 26, 2020, Development Agreement with Comite de Bien Estar, Inc. to create a lot split and to share responsibility for the construction of a street. (Kay Marion Macuil, City Attorney)
SUMMARY:
Need for Park
The East Mesa area of San Luis is growing with many residential subdivisions. Although there are retention basins that serve as the open space requirements under the subdivision and zoning regulations, there is now a need for a park.
Development Agreement
The Comite de Bien Estar, Inc. ("Comite") wishes to exercise its option on 40 acres in the East Mesa, on the south side of County 24th Street between Avenue E and Avenue F. The 40 acres currently belong to Border Ranches, L.L.C. under Joshua J. Meyer's management. It was proposed that the City of San Luis (city) purchase approximately 20 of those 40 acres at Comite's discounted option price. On February 26, 2020, City Council adopted a Development Agreement with Comite to that the city and Comite will be simultaneously entered into a separate agreement of escrow instructions for the purchase of the land. The city will be purchasing approximately 20 acres of the northern half for a park and Comite the remaining acres for housing development.
June 3rd Work Session on the street Between the Parcels
The East Mesa area of San Luis is growing with many residential subdivisions. Although there are retention basins that serve as the open space requirements under the subdivision and zoning regulations, there is now a need for a park.
Development Agreement
The Comite de Bien Estar, Inc. ("Comite") wishes to exercise its option on 40 acres in the East Mesa, on the south side of County 24th Street between Avenue E and Avenue F. The 40 acres currently belong to Border Ranches, L.L.C. under Joshua J. Meyer's management. It was proposed that the City of San Luis (city) purchase approximately 20 of those 40 acres at Comite's discounted option price. On February 26, 2020, City Council adopted a Development Agreement with Comite to that the city and Comite will be simultaneously entered into a separate agreement of escrow instructions for the purchase of the land. The city will be purchasing approximately 20 acres of the northern half for a park and Comite the remaining acres for housing development.
June 3rd Work Session on the street Between the Parcels
Comite informed the city that to build the full width of the street running east-west on the south side of the park (tentatively to be named San Antonio Street), Comite would need to build another row of houses to pay for it, reducing the land available for the park. Discussion landed on the idea not to reduce the park, but the city would build 1/2 of the street, but at a time convenient to the city.
Suggested Order and Amendment
The attached Order and Amendment creates a lot split, which puts 1/2 of the street into the purchase by the city. The Amendment creates shared responsibility between the parties for building the full width of the street, with the city having discretion as to when to build the north half of the street.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE AND ADOPT ORDER NO. 2020-15.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- TBD
- BUDGETED AMOUNT:
- No
- AVAILABLE AMOUNT TO TRANSFER:
- TBD
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- TBD
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
The City is estimating this purchase will cost up to $680,000 plus closing costs. This expenditure has been included in our budget for FY 2020-2021. The City is currently negotiating a loan to complete this purchase which will be paid with impact fees funds.