Discussion and possible action on any and all matters regarding Resolution No. 2275.  A Resolution of the Mayor and City Council of the City of San Luis, Arizona, adopting a development agreement with Barkley Farms Limited Partnership to allow the widening of Merrill Avenue and other improvements in the Los Oros subdivision; repealing conflicting provisions; and providing for severability.  (Jenny Torres, Assistant City Manager)

The City of San Luis submitted two (2) Community Development Block Grants (CDBG) requesting funding to widen and improve Merrill Avenue from Los Oros Street to County 22nd. Merrill Avenue needs to be widened to provide better and safer traffic access to the entire residential neighborhood in the Valley west of Main Street/Highway 95. Access to this area is restricted to only County 22^nd Street. There are times when traffic from the border backs up at Highway 95, and Merrill Avenue becomes a bottleneck since the current road is a narrow, two-lane street. In order to widen Merrill Avenue, the City needs an additional 3.05 acres of right of way from Barkley Farms. The cost of the ROW is valued at $285,000.00. Barkley is willing to donate this land to the City at no cost. Improving Merrill Avenue will save Barkley Farms the costs of building a half-width of Merrill Avenue in the future if they were to develop their farmland. Barkley Farms has no development plans at this time, and it could be many years before they do develop their farmland. Barkley is also willing to work with the City on improvements on their farm so that the Michael Canal Lateral pipeline can be abandoned. This canal pipeline is about 1,320 feet long, and if not abandoned, it would need to be relocated by the City. The relocation cost savings to the City would be about $400,000.00. The City will need to construct about 660 feet of new field ditch on their farm property and other on-farm improvements to allow the Michael Lateral pipeline to be abandoned. The City would need to address the canal relocation costs associated with the Barkley Canal lateral along County 22^nd Street. The City would need to have a sandbox relocated and part of the now open ditch canal pipelined in order to improve the intersection of Merrill Avenue and County 22^nd Street. This cost is estimated at $176,000. About $34,000 will also be needed to remove the Michael Lateral pipeline once abandoned. Altogether, the development agreement saves the City the land cost of about $285,000 and saves the canal relocation cost of about $400,000, a total cost savings of about $685,000.