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Home My WebLink AboutPacket, Development Agreement with HB Land Development Company II TOWN COUNCIL MEETING INFORMATION MEETING DATE: TOWN OF MARANA July 5, 2005 AGENDA ITEM: IX.A.4 TO: MAYOR AND COUNCIL FROM: James DeGrood, Assistant Town Manager SUBJECT: Resolution No. 2005-78: Relating to Development; authorizing the execution of a development agreement with HB Land Development Company II relating to the Ironwood Reserve Development Project DISCUSSION The Ironwood Reserve project has been developed by HB Land Development Company II, and has included the dedication of a trailhead and parking area to the Town of Mar ana. On AprilS, 2005, the Town adopted a Development Impact Fee for Parks in the amount of $2,884 per dwelling unit (or equivalent). The impact fee ordinance includes provision for the granting of credit for any improvements or land dedicated to the Town for parks, as required by statute. The trailhead dedicated to the Town is 4.48 acres in size, and is not proposed to be developed at this time. Based upon the Town's impact fee credit formula, the impact fee amount for future residential construction in the Ironwood Reserve development shall be $2,430 per dwelling unit. RECOMMENDATION Staff recommends authorizing the execution of the Development Agreement with HB Land Development Company II relating to the Ironwood Reserve development project. SUGGESTED MOTION I move to approve Resolution No. 2005-78. BLU difocreditslronwood reserve DA.doc Page I of 1 6/28/2005 MARANA RESOLUTION NO. 2005-78 RELATING TO DEVELOPMENT; AUTHORIZING THE EXECUTION OF A DEVELOPMENT AGREEMENT WITH HB LAND DEVELOPMENT COMPANY II RELATING TO THE IRONWOOD RESERVE DEVELOPMENT PROJECT WHEREAS, the growing population of the Town of Maran a places increasing demand upon the existing public infrastructure and parks in the region; and WHEREAS, the Town desires to develop new public infrastructure and parks to meet the demands that are placed upon the Town's roadway, utility and park facilities as a consequence of increasing population and the proportionate increase in usage brought about by new growth; and WHEREAS, the Town and the residents of the Ironwood Reserve development will jointly benefit from the development of the park facilities projects; and WHEREAS, it is in the best interest of the citizens of the Town of Marana to improve the capacity ofthe Town's existing public park facilities by encouraging the development of additional public parks at the time of new development; and, WHEREAS, HB Land Development Company II has conveyed to the Town an unimproved public park of 4.48 acres in size; and, WHEREAS, Arizona Revised Statutes, S 9-463.05 requires that developer dedications and improvements shall be considered for credit against applicable impact fees. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Maran a, Arizona, that the Mayor is authorized to execute a Development Agreement with HB Land Development Company II, for the purposes of establishing a revised park impact fee schedule for new development in the Ironwood Reserve development. Marana. Arizona Resolution No. 2005-78 Page I of 2 PASSED AND ADOPTED by the Mayor and Council of the Town of Maran a, Arizona, this 5th day ofJuly, 2005. Mayor ED HONEA ATTEST: Jocelyn C. Bronson Town Clerk APPROVED AS TO FORM: Frank Cassidy, Town Attorney Marana, Arizona Resolution No. 2005-78 Page 2 of2 TOWN OF MARANA DEVELOPMENT AGREEMENT REGARDING DEVELOPMENT IMPACT FEE CREDITS FOR IRONWOOD RESERVE THIS AGREEMENT (this "Agreement") is entered into by and between the TOWN OF MARANA, an Arizona municipal corporation (the "Town"), and HB LAND DEVELOPMENT COMPANY II, an Ari- zona Corporation (the "Developer"). The Town and the Developer are sometimes collectively re- ferred to as the "Parties," each of which is sometimes individually referred to as a "Party." RECITALS A. This Agreement is entered into and authorized pursuant to A.R.S. S 9-500.05. B. The Town has adopted certain development impact fees for roads and regional parks pursuant to A.R.S. S 9-463.05. C. The Developer is developing the land described and depicted on the subdivision plat recorded in the Pima County Recorder's office at Book 58 of Maps and Plats, Page 78-81 ("Ironwood Reserve, Blocks 1,2,3,4"). D. The Developer is entitled to credit pursuant to A.R.S. S 9-463.05(B)(3) toward the payment of the Town's adopted development impact fees based on the required dedication of public sites and improvements provided or to be provided by the Developer in connection with the development ofIronwood Reserve, Blocks 1,2,3,4. E. The Parties desire to memorialize their agreement concerning the amount of the devel- opment impact fee credit applicable to Ironwood Reserve, Blocks 1,2,3,4. AGREEMENT Now, THEREFORE, in consideration of the foregoing premises and the mutual covenants set forth in this Agreement, the Parties hereby agree as follows: 1. Credit toward regional park development impact fees. 1.1. Total value. The total value ofregional parks provided by the Developer to the Town in connection with the development of Ironwood Reserve, Blocks I, 2, 3, 4, including the value of any and all regional park lands conveyed to the Town and any and all allowable regional park construction costs, is $134,400.00. 1.2. Total lots. The total number of residential lots anticipated to be constructed in connec- tion with the development ofIronwood Reserve, Blocks 1,2,3,4 is 296. {OOOO0926.DOC I} -1- 1.3. Credit per lot. The credit against regional park development impact fees is $454.00 per lot. 1.4. Current fee. As of the date of this Agreement, the Town's regional park development impact fee that would apply to Ironwood Reserve, Blocks 1, 2, 3, 4 before the credit is $2,884.00. Subtracting the $454.00 credit, the current regional park development impact fee for Ironwood Reserve, Blocks 1,2,3,4 is $2,430.00 per lot. 1.5. Futurefee revisions. If the Town amends its arterial roadway development fee applica- ble to Ironwood Reserve, Blocks 1,2,3,4, the fee per lot shall be the then-applicable fee minus $454.00. 1.6. Actual construction and dedication as condition of credit. The credit against regional park development impact fees calculated in accordance with this paragraph I shall apply only to the extent the regional park construction and dedication has been completed or is in progress to the reasonable satisfaction of the Town. 2. Miscellaneous 2.1. Binding effect. This agreement shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of the Parties. 2.2. Cancellation for conflict of interest. This agreement is subject to A.R.S. S 38-511, which provides for cancellation in certain instances involving conflict of interest. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the last date set forth below their respective signatures. TOWN: DEVELOPER: THE TOWN OF MARANA, an Arizona municipal corporation HB LAND DEVELOPMENT COMPANY II, an Arizona corporation By: Ed Honea, Mayor By: David Goldstein, President and Managing Partner - Diamond Ventures Date: Date: A TrEST: Jocelyn C. Bronson, Clerk ApPROVED AS TO FORM: Frank Cassidy, Town Attorney {00000926.DOC I) - 2- STATE OF ARIZONA) ss County ofPima ) The foregoing instrument was acknowledged before me on by David Goldstein, President and Managing Partner of Diamond Ventures, on behalf of HB Land Devel- opment Company II, an Arizona corporation. My commission expires: Notary Public {00000926.DOC I) 3 Credit Analysis for Development Impact Fees. Project Name: Ironwood Reserve Roadways: per South Marana Transportation Benefit Area Parks: Park land conveyed to Town: 4.48acres, undeveloped Dedication only, no improvements made to trailhead. Credit for land only at $30,000 I acre. Value: $134,400, or $454 per lot for 296 lots. Credit applied against impact fee liability. Impact fee amount, after credits $2430