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AGENDA ITEM REVIEW FORM |
3.A.
Special City Council Meeting
- Meeting Date:
- 03/19/2025
- Department Head:
- Jose A. Guzman
- Submitted By:
- Jose A. Guzman, Director of Development Services, Development Services
Action Requested:
Motion
Public Hearing
Public Hearing
ITEM:
Public hearing followed by discussion on any and all matters regarding the Land Use Assumptions and Infrastructure Improvement Plan, part of the process of the Development Fees Update as required by the Arizona Revised Statutes. (Jose A. Guzman, Director of Development Services)
A. Staff presentation
B. Open Public Hearing
C. Call to the public on this item
D. Close Public Hearing
E. Action possible direction to staff
A. Staff presentation
B. Open Public Hearing
C. Call to the public on this item
D. Close Public Hearing
E. Action possible direction to staff
SUMMARY:
Municipalities in Arizona may assess development fees to offset the cost of providing necessary public services to accommodate new development. The development fees are based on the Land Use Assumptions (LUA) and Infrastructure Improvements Plan (IIP), which outline projected growth and the infrastructure required to support it. Development Fees are one-time payments used exclusively for system improvements and may not be used for operations, maintenance, replacement, or correcting existing deficiencies. These fees are paid when a building permit is issued and do not affect current residents.
The City of San Luis contracted with TischlerBise to prepare the LUA, IIP, and update development fees to comply with Arizona law.
LUA and IIP OVERVIEW:
The LUA and IIP are the principal planning documents needed to support changes to development fee assessments. The update to the LUA and IIP includes the following necessary public services: Fire, Parks and Recreation, Police, Street, Water, and Wastewater.
The proposed IIP reflects current growth projections, updated cost estimates for infrastructure improvements, and adjustments to account for inflation. The methodology ensures that new development pays a proportionate share of infrastructure costs, keeping the development fees equitable and in compliance with A.R.S. § 9-463.05.
PUBLIC HEARING:
Pursuant to A.R.S. § 9-463.05(D), this public hearing provides an opportunity for the public to comment on the proposed updates to the Land Use Assumptions and Infrastructure Improvements Plan. These documents form the basis for the city’s development fees, which ensure that new development contributes its proportionate share towards infrastructure costs necessary to serve growth.
In compliance with statutory requirements, the draft LUA and IIP were published on January 17, 2025, at least 60 days before this public hearing. The report has been available on the city’s website for public review, and copies have been on file with the City Clerk for inspection. Notices of this public hearing were published in the local newspaper, posted on city bulletin boards, and distributed via emails to developers and stakeholders in the area.
NEXT STEPS:
Following this public hearing, the City Council will consider adoption of the LUA and IIP at its regular meeting on April 23, 2025. The updated development fee report will then be published for public review, leading to a separate public hearing on May 28, 2025. Adoption of the updated development fees is scheduled for July 9, 2025, with an effective date of September 22, 2025.
Although including the draft fees in the IIP at this stage of the adoption process is not required, the consultant has completed them, and they are included for review. According to the statutory process, this hearing primarily intends to gather input on the LUA and IIP rather than the fees. However, since the draft fees are included, City Council has the opportunity to provide initial feedback. This input will allow the consultant to make any necessary revisions to both the IIP and the fees before presenting them at the next meeting, where the LUA and IIP will be adopted. A separate public hearing on the fees will occur after the LUA and IIP are finalized (see schedule above).
STAFF RECOMMENDATION:
Under A.R.S. § 9-463.05(D)(4), the only action City Council may take at this time is to direct staff to either proceed with the LUA and IIP as proposed or make specific changes.
Staff recommends that the City Council hold this public hearing to receive public comment on the proposed Land Use Assumptions and Infrastructure Improvements Plan.
The City of San Luis contracted with TischlerBise to prepare the LUA, IIP, and update development fees to comply with Arizona law.
LUA and IIP OVERVIEW:
The LUA and IIP are the principal planning documents needed to support changes to development fee assessments. The update to the LUA and IIP includes the following necessary public services: Fire, Parks and Recreation, Police, Street, Water, and Wastewater.
The proposed IIP reflects current growth projections, updated cost estimates for infrastructure improvements, and adjustments to account for inflation. The methodology ensures that new development pays a proportionate share of infrastructure costs, keeping the development fees equitable and in compliance with A.R.S. § 9-463.05.
PUBLIC HEARING:
Pursuant to A.R.S. § 9-463.05(D), this public hearing provides an opportunity for the public to comment on the proposed updates to the Land Use Assumptions and Infrastructure Improvements Plan. These documents form the basis for the city’s development fees, which ensure that new development contributes its proportionate share towards infrastructure costs necessary to serve growth.
In compliance with statutory requirements, the draft LUA and IIP were published on January 17, 2025, at least 60 days before this public hearing. The report has been available on the city’s website for public review, and copies have been on file with the City Clerk for inspection. Notices of this public hearing were published in the local newspaper, posted on city bulletin boards, and distributed via emails to developers and stakeholders in the area.
NEXT STEPS:
Following this public hearing, the City Council will consider adoption of the LUA and IIP at its regular meeting on April 23, 2025. The updated development fee report will then be published for public review, leading to a separate public hearing on May 28, 2025. Adoption of the updated development fees is scheduled for July 9, 2025, with an effective date of September 22, 2025.
| DATE | ACTION |
| 01/17/25 | Publish draft LUA & IIP (Minimum 60 days before public hearing) |
| 03/19/25 | Public Hearing – LUA & IIP (Minimum 60 days after publication, 30 days before adoption) |
| 04/23/25 | Adoption of LUA & IIP (Minimum 30 days, Maximum 60 days after public hearing) |
| 04/28/25 | Publish Notice of Intention and updated Draft Development Fee Report (Minimum 30 days before public hearing) |
| 05/28/25 | Public Hearing – Development Fee Report (Minimum 30 days after publication, 30 days before adoption) |
| 07/09/25 | Adoption of Development Fee Report (Minimum 30 days, Maximum 60 days after public hearing) |
| 09/22/25 | Development Fees Become Effective (Minimum 75 days after adoption) |
Although including the draft fees in the IIP at this stage of the adoption process is not required, the consultant has completed them, and they are included for review. According to the statutory process, this hearing primarily intends to gather input on the LUA and IIP rather than the fees. However, since the draft fees are included, City Council has the opportunity to provide initial feedback. This input will allow the consultant to make any necessary revisions to both the IIP and the fees before presenting them at the next meeting, where the LUA and IIP will be adopted. A separate public hearing on the fees will occur after the LUA and IIP are finalized (see schedule above).
STAFF RECOMMENDATION:
Under A.R.S. § 9-463.05(D)(4), the only action City Council may take at this time is to direct staff to either proceed with the LUA and IIP as proposed or make specific changes.
Staff recommends that the City Council hold this public hearing to receive public comment on the proposed Land Use Assumptions and Infrastructure Improvements Plan.
RECOMMENDATION / SUGGESTED MOTION:
A. STAFF PRESENTATION
B. MAYOR NIEVES RIEDEL TO OPEN THE PUBLIC HEARING
C. MAYOR NIEVES RIEDEL TO CALL THE PUBLIC ON THIS ITEM
D. MAYOR NIEVES RIEDEL TO CLOSE THE PUBLIC HEARING
E. I MOVE TO DIRECT STAFF TO PROCEED WITHOUT CHANGE.
or
I MOVE TO DIRECT STAFF TO MAKE THE FOLLOWING CHANGES: _________________________________________________.
B. MAYOR NIEVES RIEDEL TO OPEN THE PUBLIC HEARING
C. MAYOR NIEVES RIEDEL TO CALL THE PUBLIC ON THIS ITEM
D. MAYOR NIEVES RIEDEL TO CLOSE THE PUBLIC HEARING
E. I MOVE TO DIRECT STAFF TO PROCEED WITHOUT CHANGE.
or
I MOVE TO DIRECT STAFF TO MAKE THE FOLLOWING CHANGES: _________________________________________________.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- N/A
- CITY/STATE/FEDERAL FUNDS:
- N/A
- TOTAL:
- N/A
- BUDGETED AMOUNT:
- N/A
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- N/A
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
This item is for City Council to receive public comment on the Land Use Assumptions and Infrastructure Improvement Plan. At this point in the development fee review process, there is no fiscal impact. No final decision on the fees will be made at this public hearing.