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Home My WebLink About04/26/2019 Special Council Meeting Minutes Ae66. MARANA AZ ESTABLISHED 1977 MARANA TOWN COUNCIL SPECIAL COUNCIL MEETING NOTICE AND AGENDA Marana Municipal Complex Boardroom 11555 W. Civic Center Drive, Marana, Arizona 85653 Friday, April 26, 2019, at or after 9:30 AM Ed Honea, Mayor Jon Post,Vice Mayor David Bowen, Council Member Patti Comerford, Council Member Herb Kai, Council Member John Officer, Council Member Roxanne Ziegler, Council Member SUMMARY MINUTES SPECIAL COUNCIL MEETING (Times are approximate and subject to change) Attendees: Mayor Honea, Council Members: David Bowen,Roxanne Ziegler, Patti Comerford, and John Officer.Vice Mayor Post and Council Member Kai(Excused). Town Manager Jamsheed Mehta, Town Attorney Frank Cassidy,Town Clerk Cherry Lawson, Development Services Director Jason Angell,Planner Steve Cheslak, and Assistant to the Town Manager, Tony Hunter. 9:30 AM Depart Marana Municipal Complex 11555 W. Civic Center Drive Marana, AZ 85653 10:30 AM-- 12:30 PM Eastmark Visitor &Community Center 10100 E. Ray Road Mesa, AZ 1 Marana Special Council Meeting Summary Minutes 04/26/2019 PRESENTATION and LUNCH: Relating to Development; presentation and discussion by representatives from Brookfield Residential Group and Matrix Design Group regarding the Eastmark development project and future Town economic development Brad Chelton, Sr. Vice President, Brookfield Residential provided an overview of the residential areas that Brookfield has developed, its process and entitlements. He reviewed the Eastmark Community stating, it is a 32 acre master plan community. They started the process in 2007 and will likely complete the community within the next five (5-6) to six years. The entire process may likely take approximately 20 years for full completion of the community. He spoke of the critical needs of the municipality as their plans are not for a small acreage area (< 100); rather the type of master plan community that it creates consumes on average >200 acres of land, and involves flexibility of the municipality. Brookfield Residential is a large scale organization that is based in North America having operations in 12 different markets in the U.S. and Canada. They are based out of Calvary with approximately 1,400 employees. Eastmark is a 3200 acre master plan community has approximately 15 units across all markets across North America. Their core business comprises two areas: master plan community developments and homebuilder. They are a homebuilder in every other marketplace except Phoenix. In that capacity of developer and homebuilder, they would typically have a 300 lot phase whereby they may elect to build their own homes or may sell a portion of those lots to other builders such as, Pulte, K-Bee, Lennar, or Morrison type of company. The unique aspect of Eastmark is, they are a 50/50 partner to DMB who is the manager of the project. The type of partner that any municipality would want to have should in its developer of this scale is important. Mr. Chelton reviewed the exhibits highlighting where Eastmark started in 2007 its development process, as well as its progress to date. One of the things that was critical relates to flexibility and entitlements that they had previously secured when the development agreement was signed. At some point in the development phase, the economic recession of 2008 hit and many developments and business went away. However, the entitlements and flexibility within the agreement stayed intact. They went through a process to reinvent itself with respect to this development. From this, Eastmark was able to move forward with modifying its' original development plan administratively as oppose to going back to the Council. The Council provided Brookfield the flexibility within the development agreement to be able to react to market conditions and move in a direction that would still deliver a product in the end. 2 Marana Special Council Meeting Summary Minutes 04/26/2019 Mr. Cassidy commented on many of the big scale changes early on before the many residents now living in the community. He asked whether it affected their ability to move things around, what was the level of difficulty to make this happen. Mr. Chelton replied stating, it was not difficult at all as the changes were within the range of their entitlements, and does not require a public vote by the Council; the entitlements comes with the consultation with staff's approval. Council Member Ziegler commented about the incentive program that Brookfield worked under, stating Marana has not offered many if any incentives though she would not have an issue with them. Mayor Honea stated Marana had offered incentives for commercial development like, Sargent Control. Council Member Ziegler asked how Brookfield Development was able to get the voters to approve an incentive program. Mr. Chelton stated it was a proposal on the ballot as with any other proposition measure on a ballot. Mr. Cassidy stated for the mall, Marana did an incentive program whereby we gave a portion of the sales tax for public infrastructure reimbursement and further explained that anything that deals with a tax issue can be sent to the voters. Council could not decide whether to send a rezoning question. Mr. Angell asked other than the incentives that were directed for that one commercial industrial development entity, was the greatest incentive they received was the timing and flexibility built into that specific development plan. To have the ability to turnaround a rezoning within 30 days to achieve something is great feat. Mr. Chelton stated it was a 50/50 part, but mostly through a CFD. They provided the funds upfront, and installed the improvements. As the homebuilder builds the lot and the home, then they are able to issue bonds against the property tax revenue that is currently in place. They do not issue bonds unless there the tax revenue is in place to support the bonds that did not have sufficient debt service. Council Member Officer asked how is the homeowner notified of the overall plan in the event there are changes to the original plan. Mr. Chelton stated that is accomplished in a couple of ways: the legal way and the developer's way. Each homebuyer signs a developer disclosure which is a detailed document outlining the developer's incentives. From that they hold a community meeting to update the homeowners of everything that is occurring with the property. Also, Brookfield trains some of the residents to become their advocates to filter any information through them related to the development. The other is having an HOA that really looks to build the community. They have an annual program whereby they prepare individuals for 10 to 12 months on all things Eastmark—those individuals are able to better respond to negative comments or address concerns related to the property. 3 Marana Special Council Meeting Summary Minutes 04/26/2019 Mayor Honea asked for the average amount of debt service per SFR on the CFD for a community project. Mr. Chelton stated $75/month. The HOA's are $98/month which is controlled by the developer. The projects that are CFD eligible, they receive approximately $.70 on the dollar returned. There are many projects that are not CFD eligible that they don't recoup from, only the land sales. The burden to the resident is a CFD of$3.85 per$100 assessed value. There is a$.30 O&M charge that is applied on top - in real dollars that we spend at the markets is approximately$75/month. Mr. Mehta asked whether Mr. Chelton has Special Assessments as well. Mr. Chelton replied stating they do that are $3500/house. That is amortized over a 30 year period. Mr. Mehta inquired about the dwelling units stating, there are 9-10 of them, and a separate hotel. He asked whether any or none of them are set to be built, and relating to the minimums and maximums and whether the changes has anything to do with them. Mr. Chelton stated, the county club golf is not being considered. The country club will be built without golf. Mr. Mehta asked whether the resort hotel is no longer being considered at this time. Mr. Chelton stated that is correct. Mr. Mehta inquired about the utilities and planning for the roads. Mr. Chelton stated they knew they were not going to build 21,000 units. They were provided with the flexibility to let the market tell them what the right fit for the project would be, and they would proceed from there. Mr. Chelton further explained the process that Brookfield took in order to bring forward the community of Eastmark. 1:00 -5:00 PM Tour of developments in the Phoenix East Valley Area, including: Eastmark Community 10100 E. Ray Road Mesa, AZ 85212 Mattamy Rhythm 7098 W. Post Road Chandler, AZ 85226 Agritopia 3000 East Ray Road Gilbert, AZ 85296 The Lakes at Annecy 1679 E. Hampton Lane Gilbert, AZ 85295 4 Marana Special Council Meeting Summary Minutes 04/26/2019 5:00 PM Depart Phoenix East Valley Area for Marana Municipal Complex There was no action taken by the Council during this meeting. Council returned to Town Hall at approximately 7:00 PM. CERTIFICATION I hereby certify that the foregoing are the true and correct notes of the Marana Town Council gathering on April 26, 2019. I further certify that a quorum was present. 401111, ( ... 3 Cherry L.,son, Town Clerk .XSOk. Com.• MARANA AZ ESTABLISHED 1977 5 Marana Special Council Meeting Summary Minutes 04/26/2019