 |
AGENDA ITEM REVIEW FORM |
7.I.
Regular City Council Meeting
- Meeting Date:
- 11/12/2025
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Motion
Resolution
Resolution
ITEM:
Discussion and possible action on any and all matters regarding Resolution No. 2384. A resolution of the Mayor and City Council of the City of San Luis, Arizona, declaring that the City Council deems the sale of the real and personal property of the San Luis facility Development Corporation for the San Luis Regional Detention and Support Center beneficial for the City of San Luis; ordering and calling a special election to be held on May 19, 2026, to submit to the qualified electors of the City of San Luis the question as to whether or not said property should be sold within 5 years starting June 1, 2026. (Kay Marion Macuil, City Attorney and Sonia Cornelio, City Clerk)
SUMMARY:
Background
The City of San Luis created the San Luis Facility Development Corporation ("SLFDC") in 2005. It is a non-profit with an unpaid board. The purpose of SLFDC is to issue bonds for financing and owning public projects in the City of San Luis, Arizona, that affect economic development in the city. It has only one project. It issued bonds and sold bonds for the purchase of the land and the building and the building's expansion for the San Luis Regional Detention and Support Center. The bonds are paid from the revenue that federal government agencies pay to house detainees. The project has provided over 100 good-paying jobs.
Under Arizona State Statute (A.R.S. § 9-403(C)), the voters must authorize the sale of a city's real property valued at $15,000,000 or more. Since the City of San Luis created the corporation, SLFDC, and the City Council appoints its board, SLFDC must also abide by this statute.
On May 14, 2025, at its Board Meeting, the SLFDC Board voted to recommend to the City Council that it call an election to sell the real and personal property of the San Luis Regional Detention and Support Center. An election was held on November 4, 2025, for the approval to sell, but the ballot did not pass. There was another matter on the ballot in November. For the May election, it will be the only issue.
If the Detention Center is sold, the Federal Contracts and a Contract with the Operator would remain with SLFDC, and the proceeds from the sale would be used to support the project by paying down the bond debt and possibly other public purposes.
What This Resolution Does
If approved, the resolution authorizes the city to hold a Special Election to answer the question on the ballot about whether to sell the SLFDC's real and personal property, known as the San Luis Regional Detention and Support Center. It informs the public that the election will take place on Tuesday, May 19, 2026, and related deadlines.
The City of San Luis created the San Luis Facility Development Corporation ("SLFDC") in 2005. It is a non-profit with an unpaid board. The purpose of SLFDC is to issue bonds for financing and owning public projects in the City of San Luis, Arizona, that affect economic development in the city. It has only one project. It issued bonds and sold bonds for the purchase of the land and the building and the building's expansion for the San Luis Regional Detention and Support Center. The bonds are paid from the revenue that federal government agencies pay to house detainees. The project has provided over 100 good-paying jobs.
Under Arizona State Statute (A.R.S. § 9-403(C)), the voters must authorize the sale of a city's real property valued at $15,000,000 or more. Since the City of San Luis created the corporation, SLFDC, and the City Council appoints its board, SLFDC must also abide by this statute.
On May 14, 2025, at its Board Meeting, the SLFDC Board voted to recommend to the City Council that it call an election to sell the real and personal property of the San Luis Regional Detention and Support Center. An election was held on November 4, 2025, for the approval to sell, but the ballot did not pass. There was another matter on the ballot in November. For the May election, it will be the only issue.
If the Detention Center is sold, the Federal Contracts and a Contract with the Operator would remain with SLFDC, and the proceeds from the sale would be used to support the project by paying down the bond debt and possibly other public purposes.
What This Resolution Does
If approved, the resolution authorizes the city to hold a Special Election to answer the question on the ballot about whether to sell the SLFDC's real and personal property, known as the San Luis Regional Detention and Support Center. It informs the public that the election will take place on Tuesday, May 19, 2026, and related deadlines.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE AND ADOPT RESOLUTION NO. 2384 CALLING A MAY 19, 2026, SPECIAL ELECTION.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- Yuma County will Invoice the City after the Election
- BUDGETED AMOUNT:
- The Clerk Budgets for Elections
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- To be determined once Yuma County invoices the City
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
After the election is held, Yuma County will bill the city for its services. Under the Elections Intergovernmental Agreement with Yuma County (the city's Order No. 2023-13), the city is responsible for the costs of printing and a certified translator for publicity pamphlet, publishing legal notices, and mailing. The San Luis Facility Development Corporation negotiated for some money from the proceeds of the Detention Center Project to be used to help defray the cost of the election.