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ITEM 27

City Council Memorandum Public Works & Utilities Memo No. RE24-105

Date:

June 10, 2024

To:

Mayor and Council

Thru:

Joshua H. Wright, City Manager
Andy Bass, Deputy City Manager
John Knudson, Public Works and Utilities Director
Daniel Haskins, Capital Projects Division Manager

From:

Erich Kuntze, Real Estate Administrator

Subject:

Introduction of Ordinance No. 5100 Authorizing a Contract and Grant of Easement with the United States of America for Irrigation Facilities Located at the Northwest Corner of Dobson Road and Pecos Road

Proposed Motion:

Move City Council introduce and tentatively adopt Ordinance No. 5100 authorizing the City of Chandler to enter into a Contract and Grant of Easement with the United States of America for irrigation facilities located at the northwest corner of Dobson Road and Pecos Road in consideration for payment of the market value of the property from CRP/Sparrow Chandler Owner, LLC.

Background:

The city has been working with developer CRP/Sparrow Chandler Owner, LLC ("Sparrow"), for several years on the development of their project located at the northwest corner of Dobson and Pecos roads. During this time, Sparrow learned that the United States Bureau of Reclamation ("United States") owns irrigation facilities along the north side of Pecos Road, and in order to complete their project and receive a final certificate of occupancy, Sparrow would need to relocate the irrigation facilities as well as complete off-site improvements to Pecos Road.

In order to finalize this process, the United States is asking the city to enter into a Contract and Grant of Easement ("Contract") providing for the relocation of the irrigation facilities and granting an easement over approximately 838 square feet of city land to the United States. The Contract also provides for the exchange of some of the existing United States land to the adjacent property owner. Sparrow has agreed to pay the city the market value of the property as consideration for granting the easement to the United States in order to facilitate their development. This amount is based upon the estimated market value of the city’s property.

The city is withholding delivery of the final certificate of occupancy to Sparrow pending completion of off-site improvements by Sparrow pursuant to a deferral agreement entered into by Sparrow and the city in 2023. The easement granted by this ordinance will allow Sparrow to commence construction of its off-site improvements to Pecos Road, which were delayed because of the need to get approval from the United States Bureau of Reclamation.

Staff has reviewed and approved the contract, easement, property valuation, and legal descriptions.

Financial Implications:

The city will receive payment for the easement area based upon market value of the property.

Attachments

Location Map

Ordinance No. 5100

Exhibit B - Contract and Grant of Easement