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ITEM #: 4.
DATE: 12/16/2024
AI #:2394

CITY COUNCIL ACTION REPORT

SUBJECT:

LOT 8A PROPERTY ACQUISITION FOR CIVIC SQUARE

STAFF PRESENTER(S):

Roric Massey, City Attorney

SUMMARY

Approve the purchase and acquisition of Lot 8A for Goodyear Civic Square and authorize the execution of associated infrastructure and development agreements necessary for the acquisition.

STRATEGIC PLAN ALIGNMENT

RECOMMENDATION

ADOPT RESOLUTION NO. 2024-2439 APPROVING THE PROPERTY ACQUISITION OF LOT 8A OF GOODYEAR CIVIC SQUARE AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE PURCHASE AGREEMENT, THE DEVELOPMENT AGREEMENT, THE SIXTH AMENDMENT TO THE DEVELOPMENT AGREEMENT, AND OTHER SUCH DOCUMENTS NECESSARY TO EFFECTUATE THE PURCHASE OF THE PARCEL AND AUTHORIZING THE EXPENDITURE OF FUNDS AND ALL ASSOCIATED BUDGET TRANSFERS NECESSARY FOR THE ACQUISITION . (Roric Massey, City Attorney)

FISCAL IMPACT

The purchase price for the approximate 13-acre parcel is $8,453,685 plus customary closing costs. The current estimate for the City’s share of the cost of constructing the Civic Square roadway is approximately $2,500,000. A budget amendment will allow for the purchase in fiscal year 2025. The costs associated with Civic Square roadway construction will be included in future fiscal years as appropriate.

BACKGROUND AND PREVIOUS ACTIONS

This Resolution authorizes the purchase of approximately 13 acres of vacant land directly to the north of the existing City Hall, south of Monte Vista Drive, east of the Bullard Wash, and west of the future extension of the Civic Square roadway alignment.

While there are currently no pending or planned city CIP projects for the site, it will allow for future expansion of the City Hall campus or related city-developed projects. The site will also allow for needed overflow parking in the intervening period to support programming at Civic Square Park.

The purchase price for the parcel is approximately $15/square foot for the approximate 13-acre parcel. The City had the parcel appraised in May 2024, and the appraised valuation of the site is $18/square foot.

Through the related development agreement, the City agrees to fund one-half of the construction cost for the extension of the Civic Square roadway from the existing cul-de-sac, north to Monte Vista Drive. The Development Agreement provides that either the planned multi-family development on the adjacent Lot 8B, or the City may undertake the roadway extension, with the other party responsible for the reimbursement of one-half of the construction cost. The roadway must be constructed within a ten-year period and the construction project must follow an established public procurement process, with both parties collaborating on the construction project.

The Resolution also authorizes an amendment to the existing development agreement related to the entirety of the GSQ project. The amendment will remove Parcel 8A from the sales tax reimbursement obligations between the City and Globe Corporation, related to the existing Improvement District and other public infrastructure to be developed within GSQ.

Other miscellaneous terms include the recognition that current sign plans have a monument sign located at the corner of Monte Vista Avenue and the future Civic Square roadway. Rather than relocate the future sign location, the City will grant an easement for the sign, and Globe will be responsible for future maintenance of the sign. In return, the City will receive the right to utilize one sign panel on the monument sign. There is also a use restriction on the entire GSQ development regarding medical users other than the upcoming Banner facility. Banner and Globe have agreed to modify the restrictive covenant to clarify that the City may locate a medical clinic on its property for non-commercial purposes to serve its employees and dependents.

STAFF ANALYSIS

The Resolution included as attachment A will authorize the execution of the Purchase Agreement, Development Agreement and Sixth Amendment to the Development Agreement needed to effectuate the purchase of Lot 8A aerial exhibit included as attachment B.

Attachments

Attachment A - Resolution w-Exhibits

Attachment B - Aerial Photo