HomeMy WebLinkAboutPacket, Development Agreement with BCIF, LLC
MEETING DATE: July 5, 2005
AGENDA ITEM:
IX.A.5
TOWN COUNCIL
MEETING
INFORMATION
TOWN OF MARANA
TO: MAYOR AND COUNCIL
FROM: James DeGrood, Assistant Town Manager
SUBJECT: Resolution No. 2005-79: Relating to Development; authorizing the
Execution of a development agreement with BCIF, LLC relating
to the San Lucas Development Project
DISCUSSION
The San Lucas project has been developed by BCIF, LLC, and has included the dedication and
construction of significant roadway, trail and park infrastructure and right-of-way to the Town of
Marana.
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 public park and trails dedicated to the Town amount to 11.97 acres of usable recreation area.
Improvements include restrooms, play structures, ramadas, parking areas and multi-purpose
fields. Based upon the Town's impact fee credit formula, these improvements more than satisfy
the impact fee amount for future residential construction in the San Lucas development. No
impact fee for parks will be charged.
Also on April 5, 2005, the Town adopted a Development Impact Fee for Northwest Marana
Roadways in the amount of $5,941 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 arterial and collector roads.
This project will dedicate land for Postvale Road, and will dedicate and construct improvements
for Cochie Canyon Trail, Adonis Road, and make improvements to the 1-10 frontage road and
offramp. All of these projects are creditable and have a value of $4,41 0,796. This credit reduces
the Impact Fee for Northwest Marana Roads to $346 per dwelling unit.
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6/28/2005
RECOMMENDATION
Staff recommends authorizing the execution of the development agreement with SCIF, LLC,
relating to the San Lucas development project.
SUGGESTED MOTION
I move to approve Resolution No. 2005-79.
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6/28/2005
MARANA RESOLUTION NO. 2005-79
RELATING TO DEVELOPMENT; AUTHORIZING THE EXECUTION OF A DEVELOPMENT
AGREEMENT WITH BCIF, LLC RELATING TO THE SAN LUCAS 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 San Lucas development will jointly benefit
from the development of the roadway, utility and park facilities projects; and
WHEREAS, it is in the best interest of the citizens of the Town of Marana to improve the
capacity of the Town's existing public roadway, utility and park facilities by encouraging the
development of additional public parks and improvement of arterial and colle'ctor roadways at the
time of new development; 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 ofthe Town of Maran a,
Arizona, that the Mayor is authorized to execute a Development Agreement with BCIF, LLC for the
purposes of establishing an agreement to improve, fund, and convey to the Town public roadway and
park facilities.
Marana, Arizona Resolution No. 2005-79
Page 1 of2
PASSED AND ADOPTED by the Mayor and Council of the Town of Maran a, Arizona, this 5th day
of July, 2005.
Mayor ED HONEA
ATTEST:
Jocelyn C. Bronson
Town Clerk
APPROVED AS TO FORM:
Frank Cassidy
Town Attorney
Marana. Arizona Resolution No. 2005-79
Page 2 of2
TOWN OF MARANA
DEVELOPMENT AGREEMENT REGARDING
DEVELOPMENT IMPACT FEE CREDITS FOR SAN LUCAS
THIS AGREEMENT (this "Agreement") is entered into by and between the TOWN OF MARANA,
an Arizona municipal corporation (the 'Town"), and BCIF GROUP, LLC , an Arizona Limited Li-
ability 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 57 of Maps and Plats, Page 55 ("San
Lucas").
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 of San Lucas.
E. The Parties desire to memorialize their agreement concerning the amount of the devel-
opment impact fee credit applicable to San Lucas.
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 arterial roadway development impact fees.
1.1. Total value. The total value of arterial roads provided by the Developer to the Town in
connection with the development of San Lucas, including the value of any and all arterial road
right-of-way conveyed to the Town and any and all allowable arterial roadway construction
costs, is $4,301,309.00.
1.2. Total lots. The total number of residential lots anticipated to be constructed in connec-
tion with the development of San Lucas is 790.
1.3. Credit per lot. The credit against arterial roadway development impact fees is $5,595.00
per lot.
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1.4. Currentfee. As of the date of this Agreement, the Town's arterial roadway development
impact fee that would apply to San Lucas before the credit is $5,941.00. Subtracting the
$5,595.00 credit, the current arterial roadway development impact fee for San Lucas is $346.00
per lot.
1.5. Future fee revisions. If the Town amends its arterial roadway development fee applica-
ble to San Lucas, the fee per lot shall be the then-applicable fee minus $5,595.00.
1.6. Actual construction and dedication as condition of credit. The credit against arterial
roadway development impact fees calculated in accordance with this paragraph I shall apply
only to the extent the arterial roadway construction and dedication has been completed or is in
progress to the reasonable satisfaction of the Town.
2. Credit toward regional park development impact fees.
2.1. Total value. The total value of regional parks provided by the Developer to the Town in
connection with the development of San Lucas, including the value of any and all regional park
lands conveyed to the Town and any and all allowable regional park construction costs, is
$2,693,250.00.
2.2. Total lots. The total number of residential lots anticipated to be constructed in connec-
tion with the development of San Lucas is 790.
2.3. Credit per lot. The credit against regional park development impact fees is $3,409.56 per
lot.
2.4. Current fee. As of the date of this Agreement, the Town's regional park development
impact fee that would apply to San Lucas before the credit is $2,884.00. Subtracting the
$3,409.56 credit, the current regional park development impact fee for San Lucas is $0.00 per
lot.
2.5. Future fee revisions. If the Town amends its arterial roadway development fee applica-
ble to San Lucas, the fee per lot shall be the then-applicable fee minus $3,409.56.
2.6. Actual construction and dedication as condition of credit. The credit against regional
park development impact fees calculated in accordance with this paragraph 2 shall apply only to
the extent the regional park construction and dedication has been completed or is in progress to
the reasonable satisfaction ofthe Town.
3. Miscellaneous
3.1. Binding effect. This agreement shall be binding upon and inure to the benefit of the heirs,
executors, administrators, successors and assigns of the Parties.
3.2. Cancellationfor 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.
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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
BCIF GROUP, LLC, an Arizona Limited Liability
Corporation
By:
Ed Honea, Mayor
By:
Robert P. Zammit, Managing Member
Date:
Date:
ATTEST:
Jocelyn C. Bronson, Clerk
ApPROVED AS TO FORM:
Frank Cassidy, Town Attorney
STATE OF ARIZONA)
ss
County ofpima )
The foregoing instrument was acknowledged before me on by Robert P.
Zammit, Managing Member ofBCIF GROUP, LLC , an Arizona Limited Liability Corporation,
on behalf of the corporation.
My commission expires:
Notary Public
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Credit Analysis for Development Impact Fees.
Project Name:
San Lucas
Roadways:
Right of Way conveyed: 22.16 Acres (see note I)
Value: $664,899 or $842 per lot for 790 lots. This is a credit to be applied
against impact fee liability.
Cost of Construction
Construction Cost for:
Cochie Canyon (3Iane):$1,930,819 (Book Value $2.5 M/mile)
Cochie Canyon (varies): $653,770 (see note 4)
Adonis (1/2 of 4 lane divided): $1,064,254 (Book Value $2.25 M/mile)
Turn bay improvements at interchange: $106,054 (see note 5)
Value of$3,754,897 or $4,753 per lot for 790 lots.
Total impact fee credits amount to $5,595 per lot. The remaining impact fee
liability is $346 per lot.
Parks:
Park land conveyed to Town: 11.97 ac (usable)
Value: $359,100, or $454.56 per lot for 790 lots. This is a credit to be applied
against impact fee liability.
Park Improvements Constructed: 11.97 ac. (privately constructed: use $ 195,000/ac)
Value: $2,334,150 or $2,955 per lot for 790 lots. This amount exceeds the
Impact fee liability for the project.
Notes:
1. Right of way conveyed for roads is ordinarily included in the "book value" of the
roadways constructed. Where partial construction is performed, additional credit
must be granted for right of way granted for future expansion. In this project,
additional right of way for Adonis, Cochie Canyon (east of Adonis only) and
Postvale Road is provided, and must be credited.
2. Park land conveyed to the Town has a primary function as a drainage facility.
75% of Block A determined to be usable and 35 sf. per linear foot of Block B
usable for trail and amenities.
3. Ifreimbursement from impact fee receipts for transportation was preferred to the
elimination ofthe impact fee, Proof of actual construction cost must be presented,
and reimbursement up to the amount of the impact fee, less right of way discount.
4. Cochie Canyon west of Adonis has 272' of 4 lane undivided, 535' of taper, and
188' of3 lane undivided. Value of road improvements is: 272' @ $852; 535' @
$639; 188' @$426forasumof $653,770
5. Turn Bay improvements on frontage road and ramps $106,054 per Borderland bid
of 12/14/05