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HomeMy WebLinkAbout12/11/2007 Special Council Meeting MinutesMINUTES OF SPECIAL SESSION COUNCIL MEETING MARANA MUNICIPAL COMPLEX DATE: December 11, 2007 PLACE AND DATE Marana Municipal Complex A. CALL TO ORDER AND ROLL CALL By Mayor Honea at 6:00 p.m. COUNCIL Ed Honea Mayor Herb Kai Vice Mayor Russell Clanagan Council Member Patti Comerford Council Member Tim Escobedo Council Member Carol McGorray Council Member Roxanne Ziegler Council Member STAFF Mike Reuwsaat Town Manager Gilbert Davidson Deputy Town Manager Deb Thalasitis Assistant Town Manager Frank Cassidy Town Attorney Jocelyn Bronson Town Clerk Present Present Present Present Excused Present (arrived at 6:15 pm) Present Present Present Present Present Present B. PLEDGE OF ALLEGIANCE AND INVOCATIONIMOMENT OF SILENCE Mayor Honea gave the invocation. C. APPROVAL OF AGENDA Motion: Approve, Moved by Council Member Roxanne Ziegler, Seconded by rice Mayor Herb Kai. D. CALL TO THE PUBLIC David Morales addressed Council regarding tax value and increasing Council salaries. E. PRESENTATIONS ANNOUNCEMENTS/UPDATES - PROCLAMATIONS - F. MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS G. MANAGER'S REPORT: SUMMARY OF CURRENT EVENTS H. STAFF REPORTS I MINUTES OF SPECIAL SESSION COUNCIL MEETING MARANA MUNICIPAL COMPLEX DATE: December 11, 2007 GENERAL ORDER OF BUSINESS 1. CONSENT AGENDA J. COUNCIL ACTION 1. Resolution No. 2007-221: Ordering and declaring formation of the Gladden Farms (Phase 11) Community Facilities District; approving and authorizing the execution and delivery of a District Development, Financing Participation and Intergovernmental Agreement (Gladden Farms (Phase 11) Community Facilities District) Erik Montague addressed Council regarding Gladden Farms CFD 11 recommending approval and authorization of the execution and delivery of the district development financing participation and intergovernmental agreement. He stated that this particular facilities district is for the second facilities district within Gladden, which will be a legally separate entity. By separate Resolution, Mr. Montague stated that the CFD Board if it is so established will set or call the formal election to authorize up to a total of $60 million in general obligation debt to be issued over the life of the CFD. He stated that within these formation documents it is anticipated, consistent with other CFD's within the Town, that there will be a maximum secondary assessed rate of $2.80, which comprise $2.50 for debt service and $0.30 for 0 & M. The developer has submitted the fully executed petition as required within statute as well as contributing all appropriate fees within the application submittal phase. Motion: Approve, Moved by flice Mayor Herb Kai, Seconded by Council Member Roxanne Ziegler. 2. Resolution No. 2007-222: Relating to Development; support of the relocation of the existing Tangerine Road Interchange Gilbert Davidson discussed the relocation of the existing Tangerine Road Interchange over a two year period of time. Mr. Davidson stated that this will not be a new interchange but a relocation of the existing interchange. Motion: Approve, Moved by Council Member Russell Clanagan, Seconded by Council Member Roxanne Ziegler. 3. Relating to Development; discussion and direction concerning entering into a proposed retail tax incentive development agreement regarding the Marana Spectrum project Frank Cassidy spoke regarding a retail tax incentive development agreement for the Marana Spectrum project. He stated that the draft incentive agreement provides for a retail tax incentive of $30 million over twenty years from the day of the agreement or fifteen years from the opening of the interchange. Mr. Cassidy stated that it covers a little over $17 million in public improvements and mitigation funding as well as interest on that. Modifications to the agreement include making the $30 million a cap and to put in a requirement that the finance director would do a calculation of interest based on the $17 million from the time those costs are incurred until the repayment occurs, not to exceed 2 MINUTES OF SPECIAL SESSION COUNCIL MEETING MARANA MUNICIPAL COMPLEX DATE: December 11, 2007 $30 million. He also spoke of a discussion that may be considered which consists of including a provision that states that if a business within Marana Spectrum has more than one location in the Town of Marana, they have to separately account for the taxes paid from the Marana Spectrum site. Mayor Honea asked that someone from the development interest to give an overview of the actual infrastructure improvements. Michael Racy, 535 W. Urton Drive, addressed Council regarding the Spectrum project. He stated that it is a 170 acre project and over 1.3 million square feet of retail space. This will be the first full-scale lifestyle center to be developed in southern Arizona. It is a combination of a fully integrated series of retail shops, restaurants, entertainment facilities, movie theatre, hotel, large shaded walking areas, promenades, and more. He stated that leasing for the site at this point is going very well, as they already have letters of intent to sign. (Council Member McGorray arrived; 6:15 pm.) Mr. Racy stated that the development agreement proposes to reimburse approximately $16 million in offsite infrastructure. This infrastructure is made up of four general components, the largest being drainage. This site needs to deal with off-site drainage from approximately a 2000- acre watershed located to the northeast of the site, and proposes to channelize that flow around the site. Subsurface channels constitute $7.6 million of the proposed $17 million reimbursement and an additional $5 million in offsite roadways, $2.9 and $1 million in additional regional sewer and water improvements, and $456,000 in an offsite conservation land contribution that the property was making. Mr. Racy stated that by the time the project is opened it will have already paid $4 million in construction sales tax to the Town. He stated that the project pays off $8 million dollars in interest, for a total repayment of $26 million. Vice Mayor Kai asked for clarification on how the amount was calculated. Mr. Racy explained that during the rezoning process the developer was approached and was requested to make an offsite contribution. There was no regulatory requirement for any mitigation contribution on this property but there was a small portion of land that was shown as environmentally sensitive land. Mr. Racy stated that they had a biologist consultant do an analysis based on what that portion would represent in mitigation land in order to try to come up with a rational basis for a conservation land contribution absent of formal regulatory structure. He stated that they took a per rooftop fee and imputed the number of rooftops that could go onto the number of mitigation acres if rooftops were going in. This was the only model that Mr. Racy stated that they used. He also stated that they used a mitigation ratio of 2.3 to I and an imputed number of homes that would go on that and multiplied by the rooftop fee. Mr. Racy also spoke briefly regarding the types of shops that would be going into the project and stated that it looks like the project will open with a high percentage of tenancy, as there are many who have already signed letters of intent. He also stated that the project would not open in phases. No action was taken on this item. 4. PUBLIC HEARING. Resolution No. 2007-219: Relating to Development; approving and authorizing the 2007 Marana General Plan 3 MINUTES OF SPECIAL SESSION COUNCIL MEETING MARANA MUNICIPAL COMPLEX DATE: December 11, 2007 Paul Popelka addressed council regarding the Marana General Plan. He addressed seven basic issues: natural resources map - depicting wildlife corridors, washes and habitat zones; land disturbance - targeting 30% as a land disturbance percentage; HCP language - changing the verbiage from "adopted HCP" to "HCP as adopted"; Avra Valley-l- 10 land use - wildlife corridor connecting with the former underpass at 1- 10 and the proposed industrial land use; Marana Airport land use - use south of the airport which includes some residential areas; and La Osa Development - recommendation that the plan area remain as is proposed. Mr. Popelka stated that the above issues were the issues that were brought up at the previous meeting for discussion. Michele Muench of State Land addressed Council expressing their support of the Marana General Plan. H. Pike Oliver of La Osa property 1121 W. Warner Road, Tempe, AZ, addressed Council regarding two issues of the Marana General Plan. He stated that it is their view that the planning for this large property would best occur under one jurisdiction. They anticipate that there will be a significant open space and preservation area as well as significant development areas in need for trade offs between various portions of the property. He stated that the desire to work on the plan comprehensively would work best under one jurisdiction. The concern of La Osa development is that there be no confusion as far as possible future annexation is concerned. Mr. Oliver then addressed the second issue of the plan - working with military agencies to preserve national defense missions in the area. He stated that this relates not only to the Pinal Air Park but also Air Force activities. He stated that La Osa has executed a memorandum of understanding with the Air National Guard concerning their activities at Pinal Air Park. This will involve restricting development substantially from the portions of the property that are westerly of the Pinal Air Park area. The concern is development designation in the planning area boundary exhibit with the land uses associated with the General Plan. This poses a conflict with the memorandum executed with the Air National Guard. Mr. Oliver stated that their understandings as to the Town's concerns of interest are Pinal Air Park involvement and notification in planning affecting the future operations of that airport, and taking a comprehensive look at future wastewater treatment potential facilities. Mr. Oliver believes that that these two issues can be addressed without the need to expand the Town's planning area. He requested that the Council consider modifying the planning area to be adjacent to their property so as to avoid any confusion to jurisdictional matters in the future. David Morales addressed Council stating that annexations should stay close to I- 10 and avoid flood areas, as well as consider houses versus sales tax. Lori Lustig of SAHBA 2840 N. Country Club Road addressed Council supporting the changes and recommendation that Town staff is proposing to Council. Ryan Hurley of Rose Law Group, 6613 N. Scottsdale Road, addressed Council on behalf of Walton International expressing their support and approval of the General Plan. Carolyn Campbell of the Coalition for Sonoran Desert Protection addressed Council stating that many of their concerns have been addressed since the last meeting but one 4 MINUTES OF SPECIAL SESSION COUNCIL MEETING MARANA MUNICIPAL COMPLEX DATE: December 11, 2007 issue still remains: the wash network and what is portrayed in the General Plan. She stated that the coalition had proposed and still argues that it is better for the General Plan and planning document to have less washes with the riparian vegetation. Ms. Campbell believes protecting the riparian vegetation is more important than having every wash on the plan as development moves forward. She stated that it is their belief that it will be more difficult to move forward with development and protect the washes if the wash network is adopted as opposed to the riparian vegetation. Mike Reuwsaat recommended an annual review of the General Plan amendments. The Town is proposing a planning boundary which meets the Town of Eloy's planning boundary. The Town's greatest concern is that it is in the process of looking at Pinal Air Park in that area from a job-based standpoint. He stated that Pinal County has asked the Town to consider extending its boundaries to include all of La Osa, not just a portion of it. Mr. Reuwsaat recommended that the current map configuration be approved, with the understanding that the Town needs to work with Pinal County, La Osa, and The Town of Eloy to firm up what the boundary lines will be based upon who will actually look at and annex that area and who will be reviewing and making the regulatory decisions. He also stated that he believes that Mr. Oliver and La Osa's long term intent is the same as the Town's. Mr. Reuwsaat also spoke regarding the proposed interchange at Linda Vista, as well as projects with the Regional Transportation Authority with regards to the General Plan. Mr. Oliver again addressed Council again suggesting changing the planning boundary to exclude La Osa property until discussions with Eloy are under way. Mayor Honea stated that La Osa has a much greater impact on Marana as it is only a couple of miles from Town limits, whereas it is at least eighteen miles from Eloy's limits. Mr. Oliver responded that the property is of interest to both jurisdictions. Motion: Moved by Council Member Roxanne Ziegler, Seconded by Vice Mayor Herb KaL Vote: Motion failed (summary: Yes = 2, No = 4, Abstain = 0). Vote: Motion failed (summary: Yes = 2, No = 4, Abstain = 0). Yes: Council Member Roxanne Ziegler, Vice Mayor Herb KaL No: Council Member Carol McGorray, Council Member Patti Comerford, Council Member Russell Clanagan, Mayor Ed Honea. Absent. Council Member Tim Escobedo. Second Motion: Approve, Moved by Council Member Patti Comerford, Seconded by Council Member Carol McGorray. Vote: Motion passed (summary: Yes = 4, No = 2, Abstain = 0). Yes: Council Member Carol McGorray, Council Member Patti Comerford, Council Member Russell Clanagan, Mayor Ed Honea. No: Council Member Roxanne Ziegler, Vice Mayor Herb KaL Absent: Council Member Tim Escobedo K. BOARDS, COMMISSIONS AND COMMITTEES L. ITEMS FOR DISCUSSION/POSSIBLE ACTION M. EXECUTIVE SESSIONS Motion to go into executive session: Motion: Enter Closed Session, Moved by Council Member Roxanne Ziegler, Seconded by Council Member Carol McGorray. Time 7.48 p.m 5 MINUTES OF SPECIAL SESSION COUNCIL MEETING MARANA MUNICIPAL COMPLEX DATE: December 11, 2007 1. Executive Session pursuant to A.R.S. §38-431.03 (A)(3), Council may ask for discussion or consultation for legal advice with the Town Attorney concerning any matter listed on this agenda. 2. Executive Session pursuant to A.R.S. §38-431.03 (A)(4) and (7) to consider the Town's position and instruct its representatives regarding negotiations for the purchase of property rights needed for the Twin Peaks interchange project, CIP number 2001-44, from the parcels of property generally identified as Pima County Assessor's parcel numbers 226-15-010A, 226-08-0140, and 226-15-0130, and to instruct the Town's attorneys in settlement negotiations and contemplated condemnation proceedings relating to the same property rights. 3. Executive Session pursuant to A.R.S. §38-431.03(A)(3),(4),(6) and (7) for legal advice with the Town Attorney concerning water rights issues and to consult with and instruct the Town Attorney and the Town Manager concerning the 1979 intergovernmental agreement between the Town of Marana and Pima County relating to sewer service within the Marana town limits and to direct the Town Manager and Town Attorney with respect to that agreement (Frank Cassidy) 4. Executive session pursuant to A.R.S. § 38-431.03(A)(1) and (3) for discussion and consultation with the Town's attorneys regarding legal implications and procedures relating to the December 10, 2007 resignation of Marana Town Council member Tim Escobedo (at the Council's option, all or part of the discussion and legal advice relating to this item may occur in public session) Council returned to the dais at 9:02 p.m. Motion: Approve, Moved by Council Member Russell Clanagan, Seconded by Council Member Roxanne Ziegler to direct the Town Clerk to advertisefor the vacancy on the Council byposting an advertisement on the website and in the Marana Weekly News. The application period will end January 18, 2008 at 5:00pm. N. FUTURE AGENDA ITEMS 0. ADJOURNMENT Motion: Adjourn, Moved by Council Member Patti Comerford, Seconded by Council Member Russell Clanagan CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council meeting held on December 11, 2007. 1 further certify that a quq?%%111%pjesent. ,rvr Jocelyn C. Bronson, Town Clerk 6 1%1** - hk OF: M-405*z 'i ?, NWE SEAL 1% 00 - 7 4 I?A 14*14 1 ** 720