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HomeMy WebLinkAbout12/20/1994 Regular Council Meeting MinutesMARANA TOWN OF MARANA PLACE ./~ND DATE Marana Town Hall, December 20, 1994. I. CALL TO ORDER By Mayor Ora Harn. Time: 7:29 P.M. II. PLEDGE OF ALLEGIANCE Led by Mayor Ora Harm IlL INVOCATION/MOMENT OF SILENCE Led by Mayor Ora Harm IV. ROLL CALL .COUNCIL Ora M. Harn Sharon Price Tom Clark Ed ttonea Betty Horrigan tterb Helen Key Mayor Vice-Mayor Council Member (excused) Council Member Council Member Council Member (absent} Council Member STAFF: Hul~ie Davis Dan Hochuli Joe Lizardi Marcia King Michelle P. Hailer David Smith Sandra Groseclose 22 Members of the Public. Town Manager Town Attorney Town Engineer Assistant to the Manager Receptionist/Clerk Chief of Police Town Clerk (excused} V. APPROVAL OF AGENDA A motion was made by Ed ltonea, seconded by Sharon Price and carried unanimously to approve the agenda as read. VI. APPROVAL OF MINUTES A motion was made by Betty Horrigan, seconded by Helen Key and carried unanimously to approve the minutes of Regular Council Meeting of December 6, 1994. 1 MINUTES OF REGULAR COUNCIL MEETING MARANA TOWN COUNCIL DECEMBER 20, 1994 VII. PETITIONS AND COMMENTS None VIII. ANNOUNCEMENTS A. Mayor Ora Ham presented a Certificate of Accomplishment to Sherry Potter, a Marana resident, for her achievements in Rodeo activities. IX. STAFF REPORTS On file at the Marana Town Hall. X. GENERAL ORDER OF BUSINESS A. GRANT REi~U'EST - The Marana Police Department is requesting authorization to submit a grant to hire three additional officers for three years under the Violent Crime Control and Law Enforcement Act of 1994. Chief David R. Smith addressed the Council on this issue, requesting permission to apply for the funding for three additional officers under the COPS FAST program. The pro~ram will fund 75% of the officers salaries, the Town picks up the other 25%. A motion was made by Helen Key, seconded by Sharon Price and carried unanimously to authorize Chief David R. Smith to submit an application to request funds for three additional officers. Ed Honea: After the three years, will the town be required to retain those officers. Chief Smith: Does not believe so, there is nothing in the literature about having to retain the officers. But it cannot be use it for existing officers. Hurvie Davis, Town Manager: This is just the authorization to file the application. If the application is approved, it will come back to the Council for actual approval. At which time ,we will budget for the costs the Town will incur. B. EXECUTIVE SESSION Pursuant to A.R.S. Section 38-431.03 (A) (3) for discussion, consultation and legal advice with the Town Attorney regarding development agree- ments and community facilities districts to the property within the Tortolita Mountain Properties Specific Pizn. Westinghouse and US Homes and also Pursuant to A.R.S. Section 38-431.03 (aJ (4) for discussion with the Town Attorney and to instruct it's Attorney regarding the City of Tucson vs. Town of Marana lawsuit. A motion was made by Ed Honea, seconded by Betty Horrigan and carried unanimously to enter into Executive Session- Pursuant to A.R.S. Section 38-431.03 for discussion, consultation and legal advice with the Town Attorney regarding development a~reements and community facilities districts to the property within the Tortolita Mountain Properties Specific Plan. Westinghouse and US Homes and also Pursuant to A.R.S. Section 38-401.03 (a) (4) for discussion with the Town Attorney and to instruct it's Attorney regarding the City of Tucson vs. Town of Marana lawsuit. Time: 7:45 P.M. 2 Return from Executive Session. All Council Members present except Tom Clark and Herb Kai. Time: 9:20 P.M. C. CFD - WESTINGHOUSE/US HOMES - Discussion and action regarding the Westinghouse Properties and US Homes Corp. plans for development of a retire- ment community and other development within the Tortolita Mountain Properties Specific Plant near La Choila North of Tangerine Road~ this discussion will include the planned development agreements~ communities facilities district(s)t past and future development agreements, financing of the pro|ects~ infrastructure to be constructed~ and ail other issues relating to the development. The Council will also considert discuss and take action on adoption of new development agree- ments and community facilities districts in the area. (During this agenda ttem~ the Council may, from time to time~ adjourn into Executive Session pursuant to A.R.S. Section 38-431 (A) (3~ for discussion~ consultation and legal advice with the Town Attorney regarding these issues.) Dan Hochuli~ Town Attorney: The staff has discussed this matter at numerous meetings with Westinghouse and US Homes to work out a number of issues, regarding CFD 1 and CFD 2 and the amendments to the development agreement or adoption of a new development agree- ment. US Homes wants to move as quickly as possible. What concerns the Council and what issues they would like to address so the documents can be finalized. It is the opinion of the Legal Department the documents are not acceptable. They do not offer sufficient assurances and protections to the Town, or it's present and future citizens in the area. He recommends that tonight's meeting be used to hone and discuss the issues and give directions to the involved parties. He has had time to review almost everything but has not had enough time to cross reference and compare, information came to fast. Needs to do comparison between the original development agreement and new development agreement. Hurvie Davis: The Town Manager's objective is to see the community grow and provide viable housing for present and future citizens. And doing what he can to see this project move forward, at the same time protect the interests of the Town. The major concerns will be covered tonight, so all parties can be in agreement, and move forward with a viable project that is going to be an asset to the community. Mayor Ora Ham: We need to address whatever concerns we have with Westinghouse and US Homes, and leave it open for discussion. Make as plain as possible, what are real concerns are and what we want to see happen with this agreement so this issue can be resolved. Ed Honea: Wanted clarification on the time limit of CFD 1, wants it in the agreement. Steve Betts: The time period depends on the term of the bonds, once paid off it will go away. Doug 8eeley: They will be ten year bonds issued. Ed Honea: Are they willing to put that in the agreement? DECEMBER 20, 1994 Doug Seeley: The terms of the bond issued depends upon the market condkions at the time. As an outside date, fifteen years would be the maximum. Ed Honea: He wants a maximum bond time per/od. Doesn't want bonds over- lapping each other and going on forever. It takes the Town out of the possibility of ever having a tax market for property, because there are already so many taxes. He doesn't want to give anybody an endless taxing authority, ls fifteen years a maximum? Doug Seeley: He feels comfort with fifteen years today, yes. Scott Ruby: With respect to District 1, any general obligation bond is supported by ad valorem taxes, which would require the consent of the Council. With District 2~ any tax supported bond, if it increases the rate by over $3,00 would require Council approval. Ed Honea: Wants to discuss one district at a time, is to confusing to discuss both at once. Scott Ruby: District 1 will have to come back before the Council for the general obligation tax. Dan Hochuli: The Council is concerned about the type of bond and over the bond going away, wants clarification as to when it will go away. Ed Honea: CFD i by US Homes guarantees that the golf course will be completed without regard to the market falling out and houses not being feasible because of not a very lucrative market. When will golf course be finished, put a date on it? Craig Johnson, US Homes: He answered that the completion of the golf course is dependent on how fast the off site improvements can get it. Water must be on the site first. Golf course is part of the first phase, along with the houses. He is agreeable to putting in an outside date, maybe two to two and a half years from the start of the initial improvements. Ed Honea: Is US Homes wifiing to put that in the agreement, with a firm date in writing? Craig Johnson: Yes. Ed Honea: Assessment bonds on CFD 1, what ratio can US Homes live with, what ratio will the bonds be secured at. If 3:3 is unreasonable, are we talking 1:1 or less, what rate are you looking at selling these bonds at? Doug Seeley: The real answer is what the market determines, some are 1:1, others 2:1, going in to this project we will be about 1:1, by the time the golf course is completed and the public infrastructure in, probably closer to 2:1 to start with. The market determines whether that is acceptable. Selling to sophisticated institutions who deal with these type of bonds ail the time and are probably more sophisticated then we are in their holdings, and this is the type of risk they want to assume. The bonds are not in the public, retail or individual markets. Institutional investors understand the risk involved. To answer the question, we will be somewhere between 1:1 and 2:1 at the time of the actual bond issue. With the idea that there is going to be a golf course put in, once public infrastructure is in the value of the property goes up. The market usually tells, if it's wrong they don't buy the bonds. DF-A~EMBER 20, 1994 Ed Houea: What would be the minimum security, a 1:1 ratio?. Doug 8eeley: I would say r~mimum 1:1. Ed Honea: Would you be willing to put that in the agreement? Doug Seeley: Yes, Dan Hochuli: There has not had an appraisal done on the property. How close is that to being done? Ed Honea: Do you have to have an appraisal to sell the bonds? Doug Seeley: Plans to have an appraisal available. Ed Honea: If a 1:1 ratio is set up, you need a basis to get this 1: 1, if you have no assessment, you have no way to base what your factor is. Doug Seeley: If you issue 10 to 15 million dollars in bonds, and you put in the public infrastructure, roads, water, sewer, landscaping along with the golf course, you have at least 1:1 and probably much more than that, probably closer to 2:1. Ed Honea: Do you have a figure for setting a maximum cap on the amount of bonds to be sold? Doug Seeley: Based on current interest rates, based on engineering reports on hand to date, the estimate for CFD 1 would not exceed approximately $15 million dollars today. Again, with inflation, by the time the bonds hit the market, interests rates may be different. Based on numbers supplied to staff, it came in at $15.1 million. Ed Honea: Does not want vague figure, if $15 million is approximate now, would $18 million be a cap, wants a hard figure. Doug Seeley: He cannot imagine $15 million going to $18 nfdlion in three months. Ed Honea: Asked if preliminary bids have been done on infrastructure. Craig Johnson: Engineers have done estimates, and water system was actually publicly bid. Ed Honea: Have any contracts been secured yet? Craig Johnson: Just estimates. Ed Honea: Regarding the Board, both CFDs offer the same individuals for the board. Who will fill the fifth slot? 5 Ron Dillon: He talked with Larry Shonne from Trico Electric. He would be pleased to accept the position. Rd Honea: He is farrfdiar with four of the individuals, all very credible with direct ties to the community, either monetary or business. Not familiar with the fifth. His personal opinion that that person should be removed and someone with a vested interest in the Marana Avra Valley area be put on that Board. Ron Dillon: He does not have a problem with replacing Duff Hearon. Believes the Mayor knows Mr, Hearon. Rd Hones: Most of the Council Members know the other four individuals and respect them, the fifth, they do not. He wants someone with a vested interest in our community, not Tucson. Ron Dillon: He does not have a fifth name in mind. Ed Honea: Does any one have a problem changing that person for another Marana Avra Valley vested person. Ron Dillon: No, as long as that person is unbiased and take the time and effort and pays attention at the meetings. Ed Honea: On disclosure in CFD 1, would there be disclosure to home buyers? Craig Johnson: He is not sure, but believes that since the debt will be retired, no disclosure is required. Some disclosure made be made in the Homeowners Association documents. There would be no hen on an individual's property when they take title, so no disclosure is planned unless required by law. Ed Hones: As soon as the homeowner makes the purchase, US Homes would retire that portion of the debt? Craig Johnson: It will be retired before the title is transferred to the homeowner, the lien will not be on the title. Craig Johnson: People over 55 work very hard to get out of debt. We are not trying to use this as a vehicle to create more debt for them, that is why the assessment has been structured this way. Mike Grassinger: Arizona Department of Real Estate regulates these offerings, a public report must be signed. They highly regulate any transfer of real estate. Ed Hones: Do you intend to transfer any debt from CFD 1 to CFD 2? Craig Johnson: There will be no debt transferred from District 1 to District 2. There will be an agreement between District 1 and District 2 for the maintenance of roads and landscaping. 6 That will be shared between the homeowner's association in District 1. We will be able to dissolve District 1 totally, even as it relates to maintenance, The maintenance will then become the obligation of the homeowner's association. Ed Honea: You are talking about the .30 cents per $100.00 to maintain the property? Craig Johnson: Yes, that will be handled by the homeowner's association in District 1. Ed Honea: How do you intend to bind the homeowner's association, will that be part of the deeding of the property the owner will assume? Craig Johnson: Yes. Ed Hones: It is some what va~ue as to what the bond revenue will and can be used for. Craig Johnson: That can be clarified with no problem. The proceeds from the bonds can only be used for specific public improvements. So in the agreement it can be put in exactly what those dollars will be used for. For instance, the money cannot be used for the clubhouse. Ed Hones: Do you know going in exactly what infrastructure you want? Craig Johnson: That is correct. Ed Honea: Could you could give us a narrower scope of infrastructure you intend to do, so it's not so va~ue. Craig Johnson: Yes, we can address that issue, assuming we are still talking on District 1. Ed Hones: Yes, we are still talking about District 1 only. That is the one that really needs to get going right away, District 2 is further down the road. Vice-Mayor Sharon Price: Addressed the Mayor as to her knowledge on Duff Hearon. Mayor Ora Ham: The Mayor stated she knows Mr. Heston very well. He is a prominent business person. He understands real estate and real estate prices. Thinks someone on the board should be aware of real estate, banking and those kind of things. Helen Key: In favor of US Homes being able to start as soon as possible. Asked if the project depends on both CFDs being initiated at the same time. Or could CFD 1 be initiated and CFD 2 at a later time. Ron Dillon: The intention is to get the whole community going at the same time. The keystone is the US Homes transaction which gets the infrastructure to the property. At the same time, US Homes is out there building, Westinghouse hopes to have other builders doing other things. They need the legal authorization. So basically the districts need to be done at the same time. Helen Key: The additional property of Westinghouse, they can sell off the parcels. Somebody has the ability to bond. Who comes to the Board to bond for that CFD? Ron Dillon: Westinghouse. Helen Key: No matter how many small parcels? Ron Dillon: The small parcels would not ask for bond financing. Only public infrastructure can be done with the funds. Dan Hochuli: Correlation of the two districts, best to establish to CFDs when all landowners have signed, it is less difficult. Craig Johnson: US Homes wants two separate districts, reason being US Homes district is set up to put in the infrastructure on 600 acres, and retire the debt as it relates to all the homeowners. Does not want confusion with prospective buyers of another potential entity. They talked one time of only one district. Came to agreement with Westinghouse that there would be two separate districts and enter into a intergovernmental agreement to work out the maintenance, so debt could be retired. So from US Homes stand point two districts are required. Dan Hoehuli: If US Homes had an agreement with Westinghouse to provide maintenance, just bind Westinghouse to the same thing US Homes wants to bind District 2 to. Westinghouse could agree to pay their share of maintenance and operation of this area until there is a CFD formed. Whether it's Westinghouse giving the money to a CFD or Westinghouse paying it, either way US Homes is assured someone is paying it,. wouldn't that achieve the same thing without the formation of CFD 2? Craig Johnson: He can't speak for Westinghouse, but US Homes biggest concern is that they cannot have a distr/ct out there where there could be further debt issued against homeowners. Then disclosure must be made to the homeowners, which they are trying to avoid. There could be future bond sales made if there was one large district. Doug Seeley: For residents in CFD 1, a guarantee from a unit of local government would give more comfort than a lot of corporate guarantees floating around. Residents would like to make sure there is a unit of local government that can deliver those services. Dan Hochuli: Right answer. Mayor Ora Ham: Any rebuttal Mr. Hochuli. Dan Hochuli: He understood them to say. If the Council passes CFD 1 and CFD 2 does not pass, then US Homes would need to decide whether they were willing to do this as a private deal with Westinghouse versus a CFD. The issue of a possibility of someone going under. If a guarantee from Westinghouse is not sufficient for a home buyer, a corporate guarantee is only as good as the corporation. The Council is acting on a corporate guarantee as well. Helen Key: For CFD 2 be created at this time, understood it as planning to immediately start taking off in the Westinghouse area. Will there be more infrastructure required in that part? Ron Dillon: Yes. Getting water main with US Homes, but we also need distribution lines to parcels to provide water to individual houses on the property. g Helen Key: Having the capability to obtain the funds would facilitate Westinghouse proceeding? Ron Dillon: Yes. Helen Key: And the proceedings would move faster? Ron Dillon: Yes. The key points are Westinghouse needs to be in position in other parts of the property at the same time US Homes is starting with theirs. Needs ability, legally to levy the operating and maintenance taxes or lose the opportunity, which is a valuable tool. And to say as delicately as possible, another real consideration is the Town is facing municipal elections in just a few months, who do they deal with, to convince that the development agreements should still be honored. Mayor Ora Harn: Wasn't terribly delicate. Ron Dillon: Mr. Dillon would very much want to be looking at the same people. Betty Horrigan: Would like to see the two CFDs separated and clarified and more specific on the wording. She likes the concept, and the CFDs are a good idea, but to confusing., this way. Ed Honea: On CFD 2, the responsible party on CFD 2, Westinghouse is the responsible party for enacting what is going on? Ron Dillon: Yes. Ed Honea: Once all land holdings in that CFD are sold, is Westinghouse still the responsible party, or is Westinghouse released from responsibility? Ron Dillon: Responsible for what? Ed Honea: Concerned about CFD 2, could go on forever. After all parcels are sold and the infrastructure is all in, Westinghouse no longer has a vested interest. Is Westinghouse as a corporation still tied? Or is the debt transferred to other people and Westinghouse out of the picture? Ron Dillon: There two provisions, one like US Homes that says when the home buyer buys, the assessment is retired. The other is when the home buyer buys with the appropriate disclosure to tell them the assessment is there, that there is an on going annual assessment that the home buyer would have to pay. An assessment of XX dollars per year, for so many years. When those years are past and the money is paid, the bonds are satisfied and the debt goes away, there is no way for the CFD without the consent of the people who live there to put any more debt on that property. Ed Honea: Westinghouse's name is going on the dotted l/ne for borrowing money for the bond for CFD 2. If all property is sold and Westinghouse no longer owns any property in the project, Westinghouse is still responsible because they borrowed on the bond or is the debt transferred? 9 Ron Dillon: The debt runs with the land. Once infrastructure is in and another builder comes in, there is an assessment against each lot. Once title transfers to the homeowner, they are responsible for the assessment. It shows up in title reports and how you sell the property. Will Westinghouse eventually get off the hook? If they are taxed as a property owner, if they don't own any property, they are off the hook. Ed Hones: Basically, Westinghouse as a major corporation can guarantee that these bonds are going to be retired. But once Westinghouse sells all the real property, they have no vested interest. Doug Seeley: Westinghouse can't guarantee to pay back the bonds. The securities laws won't let us do that. You can't have a corporate guarantee. Ed Honea: But they would basically be released and transferred to the owners? Ron Dillon: Exactly. Ed Honea: CFD 2 could last forever. Ron Dillon: As long as there is maintenance obligations to undertake, yes. Unless someone else assumes the maintenance obligations. At some point there may be a way that the residents no longer want to do that tax. Ed Honea: He does not want to create so many tax entities. The Town may want to be a ta~ng entity down the line. Is there was a way on CFD 2, even long range, to transfer the main- tenance obligation over to a homeowner's association or something, similar to CFD 17 Ron Dillon: If the Town is willing to assume the maintenance obligations of that district, the CFD can be put out of business. You can not go back and create a homeowner's association after everybody lives there without their consenting to the assessments they would have to pay. Ed Hones: Will the ratio be the same for CFD 2, 1:1 to 1 1/2:17 Ron Dillon: We can put a limitation in the agreement and have a cap on the general obligation bonds. Scott Ruby: The amount of bonds would not result in an ad valorem tax greater than $3.00 per $100.00 of assessment. Ed Honea: As it's retired, more money could be borrowed to bring that back up? Ron Dillon: Yes, but the homeowners would have to vote and agree on that. 8cott Ruby: Through the issuance of general Obligation bonds, with one resident and every resident after that time must be ff~ven the chance to vote on whether new bonds will be issued. 10 Ed Honea: CFD 2 would be assessment and general obligation bonds? Ron Dillon: The ability to do general obligation bonds. Ed Hones: Not revenue bonds? Ron Dillon: We would have to get additional authorization from the Town. Ed Hones: You would have to get authorization to do any revenue bonds, but you could do up to $3.00 per $100.00 and maintain that for however long on the general obligation bonds without having to come back to the Council or the Board of Directors. Ron Dillon: The Board of Directors would have to approve any bond financing at all. Ed Hones: On CFD 2 you want to start doing something else, you can keep adding projects, as long as they fit into the scope of the infrastructure. Would you be able to narrow that down to only doing this? Scott Ruby: What sort of public improvements can be made are right out of the statutes. Westinghouse intends to build roads, put in water and sewer lines, sidewalks and landscaping. We intend to do the basic types of public infrastructure. Ed Hones: The two districts are very different projects. One is fairly defined, Two is more vague. People involved in this project are Marana citizens. Ron Dillon: Mr. Dillon went over the list of infrastructure to be done. 1. sanitary sewage systems. 2. drainage and flood control. 3. water system for distribution. 4. streets, walkways, landscaping. 5. not necessarily funds for public buildings, would be nice to build a fire station with CFD funds and 6. traffic control systems. Scott Ruby: The item in general plan referring to equipment, vehicles and other personal property. Ron just mentioned that could be taken out. Ed Honea: What's being said is that it is very difficult to nail down what needs to be done. Ron Dillon: Talking about a project that will evolve over the next ten years, we need the ability to use this mechanism to do it. Ed Honea: Will there be weighted voting in the CFD districts? Scott Ruby: No. Ed Honea: One lot, one vote. How does it work? Scott Ruby: Each qualified voter gets one vote. Each land owner gets one vote. One vote, one acre. 11 l~d I-lonea: Continental Ranch's problems with weighted voting. This is an issue he is very interested in. Ron Dillon: Each homeowner gets one vote and Westinghouse would get one vote for each acre it owns. Ed Honea: So until fifty percent of the land is sold, Westinghouse still has control? Ron Dillon: When you have more than one house on an acre. Scott R~by: Basically two elections are held, A landowner's election which must pass and a resident's election, which must also pass. Ed Honea: It has been a valid problem at Continental Ranch. There is weighted voting. The homeowners have no say because the developer still owns most of the property. Ron Dillon: If it is the way Scott is describing it, the homeowners and the landowners must affirmatively vote for it, There is no way we can put an assessment on land the homeowners are living on unless the majority agrees to it. Scott Ruby: Maybe Westinghouse would agree not to tilt the tables like that, and not do financing unless it was approved by the majority of the qualified voters in the area. Ed Honea: Will that be in the CFD agreement? ~cott Ruby: Yes. Ron Dillon: If it is not in the statute we will put that in the agreement. Helen Key: If Westinghouse owns all this land, they have the vote? Ron Dillon: The homeowners would have to agree to the finance. Ed Honea: You can assess within the CFD, you can assess partial parts of the CFD. You can assess one section of the CFD, for improvements in that section without assessing the others? Scott Ruby: For assessment districts, yes. For general obligation bonds that is not the case, the entire district is assessed. Ed Honea: You could actually have one person in a CFD paying more than another? Scott Ruby: Yes. Every city does a lot of little neighborhood improvement districts. Mayor Ora Harn: What is being said is the people are voting the improvements and taking care themselves, actually. Scott Ruby: That is correct, That is exactly the scenario behind both the general obligation bonds and the assessment bonds. The assessment process, if there are residents there requires 12 that the majority of the residents be in favor of the assessment, cast their vote in favor. If not in favor, the proceedings stop and you cannot continue on. Dan Hochuli: CFD 1 dealt with the 3:1 ratio and protections, and we got a few questions answered. Is the Council comfortable with the issue of assurance? Is the Council comfortable with that on the property, being secured by the vacant property with a golf course? Guess a 1:1 ratio, never heard anybody else say 2:1, as Mr. Seeley said tonight. Would like him to put it in writing. Has heard maybe 1:1 after the golf course and the infrastructure are in. We do not know what the numbers are without the appraisal. Does anyone know when the Town will receive an appraisal? Scott Ruby: The appraisal is in the process and as we stated in the letter, an appraisal will be prepared for every bond issue and provided to every potential purchaser. Mike Orassinger: A little more than two months for an appraisal from US Homes. Scott Ruby: It's important to remember when it comes to ratios what they mean in real terms. Basically says, you have a lien against property who's value is equal to the bond issue, on a 1:1 ratio. Ed Honea: There is no way for the Board to approve bonds without the appraisal? Bonds can't be sold for a couple of months anywise, until appraisal received? Scott Ruby: Correct. Ed Honea: Is the 1:1 ratio based on the land before or after the improvements? Scott Ruby: After. Improvements are guaranteed because it is a publicly bid job. You have payment and performance bonds issued by bonding companies that insure that the im- provements will be put in, totally unrelated to the developer. Ed Hones: Do you tell the person doing the appraisal what type of infrastructure you are putting in and they appraise it, land and infrastructure all at once? Scott Ruby: That is correct. If it's not a 1:1 ratio, then we would have to put in additional improvements. Dan Hochuli: One way to look at this is to get the ratio as high as possible. Another way to look at this is to get the project moving along at a pace that will assure that no one is going to walk away. To commit the developers to such that they can't afford to walk away. What US Homes is promising is a. public infrastructure, b. golf course, and c. telling us but not in the documents that they are building a development. Is that enough of a commitment for the Council to be comfortable. He asked US Homes early on for the above, the golf course, the clubhouse and the first phase of lots, and it was met with a great deal of resistance. Mayor Ora Harn: That would be about half of the project. That is close to the 3:17 Dan Hochuli: Getting close. 13 Scott Ruby: Everyone in connection with this financing has agreed to put in ,25 cents of equity for every dollar of financing obtained. The timing of the equity investment as Mr. Johnson of US Homes indicated, the golf course will go in once the water line is there to water the grass. So it is very reasonable to say within 2 years of the completion of the improvements the golf course will be there.. Helen Key: Believes the US Homes is a good project for our community. Thinks they will do what they say they will do. The only way our community can provide the infrastructure needed is through a well thought and bought CFD. In favor of moving forward with Westinghouse and US Homes. Mayor Ora Harn: There are no guarantees in life. You proceed with something with good intentions and as much coverage as you can get. If we bind them to certain agreements talked about, the golf course, the infrastructure and some of the other things, the Mayor would feel comfortable with that. Nobody is going to buy bonds unless there is good assurances to the buyers as well. Dan Hochuli: We have not fully gone over the development agreement. He thinks a good job has been done tonight talking about CFDs and in some respect that deals with the development agreement. But, there are changes that are not acceptable to Mr. Hochuli. He is not prepared to address this issue with the Council at this time. Scott Ruby: The big difference between the resolution submitted in September for review and the one before Council tonight, is that the approval of the development code has been taken out of the formation resolutions. US Homes and Westinghouse would request that at this time you have before Council two resolutions. One forms CFD I and the other CFD 2. Unrelated are the development issues, can make approval of resolutions contingent upon receiving or approval of a development a~reement which contains all the provisions talked about tonight. Given the way the resolutions have been drafted, proceed forward with forrr~mg the districts and getting that hurdle out of the way. That allows for going ahead with filing with the various state agencies who need to know about these districts. He requested Council's consideration of those two resolutions. Dan Hochuli: It is a package deal, does not understand why the Council would agree to form the CFDs without a development agreement. Staff recommendation is that all issues are handled at once. A motion was made by Ed Honea, seconded by Helen Key and carried unanimously to continue this item until the next regular Council meeting, January 3, 1995, D. 1995 PROPOSED COMMUNITY DEVELOPMENT BLOCK GRANT (CDBO} PROJECTS - Council will discuss those projects suggested by the public and may add additional pro~ects to the list. The public may also make recommendations. A motion was made by Ed Hones, seconded by Betty Horrigan and carried unanimously to continue this item until next regular Council meeting, January 3, 1995. E. MAYOR'S REPORT Mayor requested to continue report until next regular Council meeting, January 3, 1995. 14 F. TOWN MANAGER'S RRPORT Hurvie Davis, Town Manager spoke of new furnishings the Courts will be receiving. The Thornydale Sub-station is in the final stages and very close to completion. Council Members will be invited down to tour the new sub-station when completed. There is also space available for meetings for Council Members and staff to meet with others. Repairs are also under way at the Marana Center. The Town is also moving forward with the annexation efforts. Also spoke briefly on his vacation. XI. FUTUREAGENDAITEMS None XIII, ADJOURNMENT A motion was made by Ed Honea, seconded by Helen Key and carried unanimously to adjourn. Time: 11:14 P.M. AUDIO TAPES OF THE MEETING ARE AVAILABLE AT THE MARANA TOWN HALL CLERK'S OFFICE CERTIFICATION I hereby certify that the foregoing minutes are the true and correct minutes of the Regular Council Meeting of the Marana Town Council held on December 20, 1994. I further certify that a quorum was present. ..- ~ L. ~ ~$E, TOWN CLERK 15