ITEM #: 14.
DATE: 01/27/2025
AI #:2399 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: |
AUTHORIZING THE MODIFICATION OF ASSESSMENT NUMBER 11-01-002 WITHIN THE MCDOWELL ROAD COMMERCIAL CORRIDOR IMPROVEMENT DISTRICT (“MRCCID”)
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| STAFF PRESENTER(S): |
Jared Askelson, Finance Director |
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| SUMMARY |
Approval of this resolution, included as attachment A, would divide a single assessment within the MRCCID into nine assessments, based on the replatting of the property comprising the assessed area. Modifying the assessment would allocate the unpaid assessment amount among the properties as follows:
Original Assessment No. 11-01-002 - $377,522.47
New Assessment No. 11-03-001 (Lot 2A) - $60,412.80
New Assessment No. 11-03-002 (Lot 2B) - $16,110.84
New Assessment No. 11-03-003 (Lot 2C) - $33,071.91
New Assessment No. 11-03-004 (Lot 2D) - $52,645.21
New Assessment No. 11-03-005 (Lot 2E) - $63,321.38
New Assessment No. 11-03-006 (Lot 2F) - $103,600.37
New Assessment No. 11-03-007 (Lot 2G) - $30,781.58
New Assessment No. 11-03-008 (Lot 2H) - $17,578.38
New Assessment No. 11-03-009 (ROW) - $0 |
| STRATEGIC PLAN ALIGNMENT |
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| RECOMMENDATION |
| ADOPT RESOLUTION NO. 2025-2440 APPROVING THE MODIFICATION OF ASSESSMENT NUMBER 11-01-002 WITHIN THE MCDOWELL ROAD COMMERCIAL CORRIDOR IMPROVEMENT DISTRICT. (Jared Askelson, Finance Director) |
| FISCAL IMPACT |
| All costs related to the assessment modification process, including the application fee, District Engineer, and legal costs are paid in advance by the applicants. Approval of the requested modification will have no direct fiscal impact upon the City or the MRCCID. No assessment will be placed on the right of way to be owned by the City. Approval of this petition for modification, included as attachment B, will cause the creation of new assessment parcels with the total assessment amount unchanged. |
| BACKGROUND AND PREVIOUS ACTIONS |
The MRCCID was created in 2006 by Resolution 06-1098 to assist with the funding of public infrastructure related to the MRCCID and the development of a regional mall and retail center. Improvement Bonds were issued in 2007 in the principal amount of $47,165,000, with principal and interest to be repaid through assessments apportioned to parcels within the MRCCID. The Improvement Bonds were refinanced at a lower interest rate in 2018 with Refunding Bonds.
The original assessment parcels have previously been modified by City Council in 2010, 2018, 2020, 2022, and 2024 following petitions from the property landowners. These assessments are generally modified as development plans are solidified, and new parcels are created with Maricopa County. As part of the assessment process, the District Engineer reviews and certifies that the modification's effect on the ratio of fair market value between the original and amended parcels complies with the original intent of the assessment model. |
| STAFF ANALYSIS |
Globe Land Investors, LLC, as owner of the property, has petitioned for a modification of a certain assessment of their property within the MRCCID. The petition for modification, included as attachment B, contains one existing parcel that would be split into eight distinct parcels with one right of way and be allocated a fair share of the existing assessment based upon the original intent of the assessment model. The map of assessment modification, included as attachment D, shows how the new assessments will be created in the MRCCID.
If City Council approves the petition for modification, included as attachment B, new assessment numbers and amounts will be assigned as proposed. The new assessments will be recorded in the office of Superintendent of Streets of the McDowell Road Commercial Corridor Improvement District with the modified assessment included as attachment C. The modification of assessments has been reviewed, and it is determined that the modification is in compliance with State law, City policies and the best interest of the City. |
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