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HomeMy WebLinkAbout10/08/2019 Study Session MinutesMARANA AZ ESTABLISHED 1977 MARANA TOWN COUNCIL STUDY SESSION 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers, October 8, 2019, at or after 6:00 PM 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 CALL TO ORDER AND ROLL CALL Mayor Honea called the meeting to order at 6:02 PM and directed the Clerk to call the roll. Vice Mayor Jon Post (Excused), Council Members Dave Bowen, Patti Comerford, Herb Kai, Roxanne Ziegler and John Officer were present. There was a quorum of council members present constituting a quorum. Mayor Honea stated he will provide the public to make comments on Item D as there were several individuals attending who wanted to provide comments on the item. PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE: Led by Mayor Honea. APPROVAL OF AGENDA Council Member Ziegler moved and Council Member Kai second the motion approving the agenda. Motion passes, 6-0. DISCUSSION/DIRECTION/POSSIBLE ACTION October 8, 2019 Study Session Meeting Summary Minutes 1 D1 Relating to the Police Department; Presentation regarding the Marana Police Department's award of full accreditation through the Arizona Association of the Chiefs of Police (AACOP) Arizona Law Enforcement Accreditation Program (ALEAP) (Terry S. Rozema) Chief Terry Rozema introduced Deputy Chief Rubin Nunez and provided an overview of the requirements of achieving full accreditation through the Arizona Association of the Chiefs of Police (AACOP). Mayor Honea and Council praised Chief Rozema and his staff for their work within the community as well as congratulated him on achieving full accreditation. D2 Relating to Development; discussion and direction concerning a proposed draft intergovernmental agreement with the State of Arizona, by and through the Arizona State Land Department, addressing the proposed rezoning of an approximately 8,032 - acre area of State Land along the Tangerine Road Corridor and the proposed auction of an approximately 2,766 -acre Reconfigured Tortolita Preserve (Frank Cassidy) Town Attorney Frank Cassidy provided a PowerPoint Presentation (On file in the Tozun Clerk's Office) on the proposed draft intergovernmental agreement with the State of Arizona. Below are the highlights from the presentation. Existing Tortolita Preserve Lease • 2,399 acres • 99 Year Lease • Began 10/25/2000 • Ends 10/24/2099 • Year 1: $432,000 • At least 10% increase every five (5) years • 2019: $574,992 • Year 99: At least $2,642,073 Overview of discussion over the years • Since 2011: Marana seeks to buy out the Tortolita Preserve lease • 2016 -present: ASLD will only auction the Tortolita Preserve if other surrounding ASLD land benefits from the sale Town of Marana Strategic Goals include: • Implementing a viable financial solution for Tortolita Preserve o Strategic Plan Four, Community Principle Statement 1, Goal 5 • Development of the Tangerine Road Corridor o Strategic Plan Four, Commerce Principle Statement 2, Goal 1 o Economic Development Strategic Plan October 8, 2019 Study Session Meeting Summary Minutes 2 ® Identify and Protect areas with significant wildlife habitat o 2010 Marana General Plan Goals, Policies, and Actions, Goal 1.b. Key Steps • New IGA o Spells out rezoning and auction process o Waives rezoning fees o Sets the minimum bid for auction of the Reconfigured Tortolita Preserve at the higher of: ■ The fair market value of the Reconfigured Tortolita Preserve ■ The net present value of the leased fee interest in the existing Tortolita Preserve based on scheduled rents under the 99 - year lease. • ASLD Tangerine Rezoning o ±8,032 acres along the Tangerine Road Corridor from Agricultural (AG) and Zone C - Large Lot Zone to Specific Plan: ■ ±2,766 acres of open space zoning, including areas bordering Dove Mountain and habitat -rich wildlife corridors —the "Reconfigured Tortolita Preserve" ■ Zoning entitlements on the balance of the property —the specifics to be included in the specific plan to be submitted by ASLD after approval of the IGA • Auction of the Reconfigured Tortolita Preserve o Auction occurs after completion of the ASLD Tangerine Rezoning o Establishes a permanent Reconfigured Tortolita Preserve with wildlife corridors extending all the way through and to the edges of State Land • ASLD Rezoning (white border, ±8,032 ac) • Existing Tortolita Preserve (green cross -hatch, ±2400 ac) • & Reconfigured Tortolita Preserve (solid green, ±2766 ac) Mayor Honea stated he had wished Marana would be in a position to purchase the state land outright. We started out trying to determine how best to purchase the state land, and it morphed into rezoning 8,000 acres of Arizona State Land. Some of this looks good until you get into the details, and some is not so good. The state wants Marana to have 2,700 acres of mitigation land, none of which is useable land. It is not land that has any real value. In return, Marana will give to the state approximately 60% of mitigated land which meets the criteria for building homes and commercial development. Marana would be trading some good land for non -useable land; however, the problem for him is the cost. Council was looking to save money for the citizens of the Town of Marana as that is what the Council is working towards. If the Town finances $16 to 17 million as a October 8, 2019 Study Session Meeting Summary Minutes 3 minimum to borrow money to pay the state for the Town to own those washes, it would cost the Town approximately $1.1 million dollars a year in debt service. At present, the Town is paying $574,000 per year. That is $550,000 more than what we are currently paying today. In five (5) years that amount will increase by 10% percent; actually it will increase by 10% in one year. With an additional $57,000 that puts the Town at approximately $620,000. In borrowing the funds to purchase the state land that is still $1.1 million; thereby, paying $4 million. He continued stating if this payment is extended over 20 to 30 years, it would take a long to get even. It is possible to save someone in the future from having to pay $1.1 million. With inflation and the valuation of money, in 50 years from today, those dollars may equal today's dollar. It is a big win for the state and a loss for Marana. Council Member Ziegler thanked Mayor Honea for opening the meeting to allow for public comment on Item D2. She had been complaining about this for 10 years from the dais. She commented on the annual payment of $574,000 to the State; the Town could do so much more with those funds. She recalled when Mr. Cassidy brought forward this item nearly six months ago. Mr. Cassidy clarified stating the Town has met individually with Council Members to inform of the ongoing conversations with the state. This is the Town's first presentation of this matter before Council in a meeting. She needs to understand Mayor Honea comments as she has concerns with Marana being put in a worse situation though with parameters. Her concerns are the state is attempting to tell Marana how to zone its community. On the positive side, Town staff has done a great job. She will need additional information related to the financials on this matter. If we have to pay more to get less, she is not for that practice. Mr. Cassidy clarified some of the comments made by Council during its discussion stating the Council is not obligated to approve any particular zoning as it is just like any other zoning situation. It is entirely up to the Council discretion. It is true that should the state not like what Council has approved. At the end of the day if they do not like what Council has done, they will auction the property. The provisions of the lease prohibits a golf course being developed. Mayor Honea stated the Town could build a park. Mr. Cassidy stated it is a very restrictive park. The Town could have walking paths, but no golf course. Council Member Kai stated Marana needs to have a drainage study conducted on this state land property. The drainage study will impact what they can do and the number of acres there are, not 8,000 acres. That gives the Town a better handle on what the rezoning would entail. He acknowledged the cost involved and stated he is not sure whether the Town could take a snapshot at the overhead —big picture to determine the developability of the land. Mr. Cassidy replied stating that was the Town's reaction a couple of years ago. State land did in fact pay to have a drainage study performed as October 8, 2019 Study Session Meeting Summary Minutes 4 the Town initial reaction was not positive. He believe it was CMG Drainage performed the study. Those corridors that are there came out of that study. Council Member Bowen referencing the drainage areas within the map as indicated by Carolyn Campbell did not feel sufficient stating they did followed the drainage path. He agrees with Mayor Honea it is too costly. He asked why the state restricted the Town from selling. Is that constitutional or case law whereby Marana cannot recoup those cost? If the state recoup all of those costs, future cash flows that the state would have received from that by auctioning off the land, and minimum prices are set through all cost, what is problem with Marana recouping its costs? Mr. Cassidy replied stating it is totally in State Land Department and in particular the Commissioners discretion to decide whether to auction property. One of the practical arguments the Commission ends up getting when there is an existing lease that there is more liberal use available for lease money in than from money from a sale of state land. When the beneficiaries receives money, those funds are used for operation and maintenance purposes among other things. Whereas when state land is sold, those proceeds can only be used for capital purposes, as he understands. Therefore the beneficiaries prefers to have lease revenues. The beneficiaries may begin to pressure the Commissioners to leave the lease in place as that is a stream of income. There is nothing in state law to force the Commissioner to auction land. Council Member Bowen asked how the mitigation land that the Town has been forced to buy cannot itself be pieced -meal by being tacked on to now developable property for repayment to the Town. He asked whether this is state law. Mr. Cassidy replied stating this is not state law that would make those requirements. There are state land representatives that hears the Council, and he believes suggestion should be that they rethink its position. However the negotiating position of the state land up until this point, they do not want to double -dip with open space. That is, obtain a rezoning, have a developer to say to the state that you have to give up more open space, or pay the Town for its open space. The state want to take care of the open space one time and be done. He understands Council viewpoint on this matter. Council Member Bowen stated it would be a benefit to the Town to be compensated for the outlay of cost the Town would have to assume for the mitigated land; however under the current circumstances he agrees with the Mayor that this is not feasible. Mayor Honea stated at this point, the state would not buy the land, they would buy the right to the mitigation acreage. Marana could keep the land or put it in a trust; it would be government open space of the land. Marana would buy a portion of the rights to it. With state land, lease funds can be spent immediately upon receipt by the state. If you purchase property from the state like the $17 million, those funds goes into the investment pool at Arizona State Land. He stated there are two big problems for him, 1) Marana expense would almost double for its annual payment upwardly for the next October 8, 2019 Study Session Meeting Summary Minutes 5 15 years; and 2) Marana is not able to use that mitigation space to help recoup some of the capital debt that belongs to our citizens. If the Council agrees to have this brought back for further consideration, it would be best to have numbers assigned so that Council is able to look at the dollar amount in its review. Public Comment Mayor Honea open the meeting to receive public comments on this item. Torn Hannagan commented on state land stating the residents at Dove Mountain have gotten use to looking at the Tortolita Preserve and it is use quite a bit. It is a multi -use facility and is a pristine Sonoran Dessert. The residents like and would like to keep it. If it is going to change, it is something that they will need to watch and be a part of. He wanted to let Council know that the residents like the open space up there. If Marana does continue to have discussions with the state, he ask that Council take advantage of Carolyn Campbell services as she is someone who knows the area and the topic matter. Carolyn Campbell Coalition for Sonoran Desert Protection commented on the email, letter and map that was sent to Council. She thanked Council for its past efforts in conservation and indicated that they had been involved in the early days of trying to purchase the lease, and Council should be applauded for its efforts. She continued to cite those efforts of the Council including the cost savings to the Town; the endangered species what inhabit the open land. She would like to respond to the issue related to the proposal at hand, but stated they would definitely support any efforts to purchase the current configuration of the preserve. This is not acceptable to wildlife. She explained the email and attachments that were sent to Council. Mayor Honea stated the Town needed to put dollar figures to the transactions presented and perhaps speak with the state about allowing Marana to recoup some of its taxpayers' dollars investments on the mitigation land if Marana were to do a program similar to what was presented by Ms. Campbell. It does not have to be all, maybe one or something and try to work together. Council Member Ziegler stated years ago the Town spoke of mitigation land, we were mitigating Pinckney Owls years ago. She ask what the Town is looking to mitigate at this time. Mayor Honea stated the Town told the state that years ago. When the Town signed the contract with the state, it made one error. Marana did not tie it to the mitigation land for the Pinckney Owl. The Council talked about it being mitigated land for the Pinckney Owls; however, the contact with the state does not mention the owl. Council Member Ziegler reiterated her question asking what is being mitigated, because the land cannot be used. Mayor Honea stated when the Town purchased the mitigation land the Town did not tie it legally to the Pinckney Owl. Even though the Pinckney Owl went away, the Town still had the contract with the state. October 8, 2019 Study Session Meeting Sununary Minutes 6 Mr. Cassidy stated Mayor Honea is correct that the Pinckney Owl is not mentioned in the lease agreement. He provided some historical context to the clarity of the agreement stating the Town was not the negotiator of the agreement. Cottonwood Properties negotiated the lease for the benefit of the hotel. When the property came to be auctioned, Connelly Wolfwrinkle wanted to build a hotel in Oro Valley outbid Cottonwood Properties. The Town then did a series of complicated contracts with Cottonwood under the threat of condemnation acquired the lease. That is how the Town came into the lease. The way that the lease was originally negotiated, the State Land Department was a third party to the species discussion. The species discussion happened between Cottonwood and Fish and Wildlife Service. The Fish and Wildlife Service provided a calculation stating you had to come up with 2400 acres of mitigation land. Separately, Cottonwood met with State Land and identified this particular land and provided this land. Since the state will not sell the land, they will only provide a 99 year lease, will that be sufficient for mitigation purposes. As he understands, Fish and Wildlife agreed. That deal was handled separately. State Land was not involved in the species discussion. When the Town took possession of the lease, there is no language in the lease as to why it was entered into. Due to that, Marana cannot cite Frustration of Purpose as it is not the stated purpose, and he suspects that is one reason why the state never mentions mitigation reasons, as they have a 99 year lease agreement that could not be terminated. Mayor Honea stated Cottonwood Properties initiated the lease, and the Town agreement with Cottonwood was that Marana would not assume the lease until we had gotten to one million in tax receipts. Marana reached that point some four to six years into the system. Council Member Kai, when the Ritz Carlton was built, it was projected to be an 800 room hotel from where the large tax numbers were stated; however, became a much smaller place with 200 room and a reduced sales tax base. Mayor Honea stated the Ritz Carlton does generate enough money to pay the debt Marana incurred because of it. It generates enough to pay the lease, and pay enough sales tax to pay the reimbursement to Cottonwood Properties that will go on for some time for the infrastructure that they built in that area. It is not that Marana is losing money because of the Ritz, Marana is not making money from it as those funds are going to the lease payment and reimbursements to Cottonwood. Council Member Officer stated 2400 acres are what Marana. has. When they came back to Marana, it received 2766. He asked what the payment be if Marana moved to purchase the property. He asked whether it would be on the 2400 or the 2766 acres. Mr. Cassidy stated it is a little of both. The minimum bid for the 2700 has to be either the value of the 2700, or the value of that current the future lease flow of 2400 acres. As part of this, they will be cancelling that lease. The lease payments on the 2400 will come into view as the current deal that is being negotiated, but also the value of the 2700 or more depending on whether there are more wildlife corridors. October 8, 2019 Study Session Meeting Summary Minutes 7 Council Member Ziegler stated one of the options is to stay with what Marana currently have. Mr. Cassidy replied stating that Council Member Ziegler assessment is correct. If Marana does not reach a mutual arrangement to cancel the lease through some arrangement, then the lease stays in place until 2099. Council Member Ziegler stated with the 2400 acres state land will stop the negotiations and Marana will continue with its practice of moving forward. D3 Relating to Development; a presentation and possible direction on comments received in the 60 -day statutory review period of the Make Marana 2040 General Plan (Jason Angell) Development Services Director Jason Angell provided a PowerPoint Presentation (on file in the Town Clerk's Office) on the required 60 day statutory review period of the Town of Marana Draft General Plan. Below is are highlights of the presentation. Agenda 1. Project Overview 2. Public Engagement 3. Plan Organization 4. Public Draft 5. Next Steps / Questions What is a General Plan? Project Overview • The General Plan is: o Long Term o Comprehensive o General • The General Plan Provides: o Vision for the future o Guidance through goals, policies and programs for: o Existing Neighborhoods o New Growth o City Investment • Arizona State Law (Arizona Revised Statutes (ARS) Title 9, Chapter 4, Article 6) o Update every 10 years 0 17 Elements required of cities more than 50,000 people • Proposed General Plan: 19 Elements 0 14 State required elements 0 2 Elective or non -required elements October 8, 2019 Study Session Meeting Summary Minutes 8 • Map Atlas (Existing Conditions) o Project Deliverables 2 - Documents: ■ Map Atlas (Existing Conditions) ■ General Plan o Assessment of Marana's existing conditions o Illustrative book of maps and data o Background information for the General Plan General Plan Organization: Public Engagement • Five Sections o Introduction o Built Environment o People and Community o Resources and Sustainability o Implementation • Built Environment Elements o Land Use o Housing o Circulation o Bicycling o Growth o Cost of Development o Public Services and Facilities o Public Buildings • People and Community Elements o Economic Vitality* o Public Safety o Recreation o Arts & Culture* o Neighborhood Preservation and Revitalization o Conservation, Rehabilitation, and Redevelopment o Elective Elements • Resource and Sustainability Elements o Open Space o Water Resources o Environmental Planning o Conservation o Energy • Engagement Events o Over 60 Events ■ Interviews ■ Focus Groups ■ Community Groups (Chamber, SAHBA) October S, 2019 Study Session Meeting Summary Minutes 9 ■ Workshops • Community Events ■ Community Forum ■ Advisory Committee Meetings ■ Commission Updates ■ Council Updates o Public Comment (60 day Review) ■ 77 unique commenters ■ 6 agency comments • Eloy, Oro Valley, PAG, Pima County, Coalition for Sonoran Desert Protection, SAHBA Council Member Ziegler inquired of the type of comments from Oro Valley. Mr. Angell replied stating much of the comments were related to the actual plan submitted by State Land as it relates to the plan that was presented to Oro Valley. Oro Valley was considering as part of the annexation. Some comments referenced the high density that was being proposed or the buffers that it would have provided. In the General Plan, Marana is referring to it as a Special Planning Area. It was more along the lines of a zoning request or application that had been presented to Oro Valley. ■ By Topic • 82 (43%) comments on ASLD • 17 (9%) comments not applicable to the General Plan • 15 (8%) Technical edits • 13 (7%) Conservation • 12 (6%) Water • 10 (5%) Roadways and secondary connection to Dove Mountain ■ ASLD Breakdown (82 comments) • 38 (46%) General • 27 (24%) Oro Valley property �heme 17 (21 %) Tortolita property • By • 104 (55 %) on Built Environment Theme • 45 (24%) on Resources and Sustainability • 18(10%) on People and Community o State Land Discussion ■ Arizona State Land • 17 (21 %) comments on Tortolita property • Prefer property remain "undisturbed" • Oppose use of special planning requirements for future development October 8, 2019 Study Session Meeting Summary Minutes 10 • "Town of Marana is(not) qualified to alter the ... Tortolita Plan" • State Land in Marana • 98 square miles • 20 (20%) designated SPA • Special Planning Area • Offers MORE PROTECTION with definitive requirements • Now requires Specific Plan with detailed planning, engineering, and site design, including: • Detailed plan for conservation, preservation, natural vegetation, drainage, and wildlife corridors Council Member Ziegler asked whether it was at that time that the state had indicated that they do not have enough people here to talk about it and left. The state said that they could not do that at this time, and could not continue to negotiate with Oro Valley. State officials did not provide any further explanation nor timelines of any sort. It is her understanding that at this time it is a deferred matter which can be deferred for some time. o Northern MPA Discussion ■ Municipal Planning Area • Proposed 6 -Mile extension north • Includes: o Picacho Peak o Future Red Rock rail facility o Eloy Planning Area established in 201.0 Eloy response: o Request revision back to common boundary of 2010 o Will continue to plan and annex area as part of Eloy Mr. Angell stated he is seeking direction from Council related to the comments provided by the Eloy. The Town and Council had a discussion related to the planning boundaries. With the Council direction, the Town looked at expanding the boundaries of the Town to the north. Eloy's comments within the summary were, requesting of the Town to pull back its boundary to stay in line with the existing 2010 boundary. Eloy states that they will continue to plan and the area as part of Eloy. The Town has had numerous friendly conversations with Eloy. He pointed out a few points for the Council including, (referring to the Northern MPA Discussion slide) Marana sever the east planning boundary of Eloy (purple shaded area) to the eastside and create a separation there. The Town's existing planning boundary as we continue where we are currently, follows up to the CAP Canal. October 8, 2019 Study Session Meeting Summary Minutes 11 He stated the Town took that same methodology as they follow along I-10. In that area is Picacho State Park, as well as surrounding state land. There are also individual property owners in that area as well. In speaking with Eloy, they see Picacho as a landmark for their community as a way to identify with visitors who come to Eloy. He would like direction from Council on these comments as to the north boundary. Mayor Honea stated we arrived at this from discussions in a previous meeting whereby staff spoke about going east and west. Most of the Council expressed disinterest or view it in smaller portions. Council was interested in going north. He recalled Vice Mayor Post commenting that Marana go up to Picacho Peak. That is where those conversations ended, that Council did not pick up the discussion from that point. Mayor Honea stated he is interested in our existing northern boundary that would take in Pinal Airpark, and Red Rock as that would take in our planning boundary, up pass Sascal Road. He is not interested in annexing the east and west, but going north there is value in those areas. He does not have a problem with staying were we currently are. Council Member Kai stated he has had conversations with some of the people in Eloy about the cross -hatch pattern that Marana travelled another six miles, and it appears that the Town should pull back the boundary to the original 2010 boundary. The City of Eloy expressed concern that Marana was encroaching upon its boundary area. He stated the Town should pull back the boundary to the 2010 boundary. Council Member Comerford agreed. Council Member Ziegler commented on the City of Eloy's remarks that they were not pleased with the proposal by the Town. She asked Mayor Honea to remind of her of the areas where Marana would extend its boundary. She is in favor of keeping the boundary at the 2010 boundary line. That Council Member Comerford was very clear in a past meeting discussion that Marana was not interested in annexing into Eloy, and Eloy does not want Marana encroaching its city. Council Member Comerford stated her intentions were always up to Picacho Peak not beyond that point. Her major concern was east and west, and not I-11 at this time as there is no money to build road at this time or perhaps into the future. Marana needs to look at the next 20 years for this community and the needs of it. Red Rock is more willing to be adopted eventually, as they do not like having to wait two hours for the police to respond. Next Steps: Project Overview • Project Schedule Mr. Angell discussed the next steps in the process with Council stating with the comments that were received, Town staff is working to provide a response to each of the individuals who took the time to offer comments to the Town. October 30 will be October 8, 2019 Study Session Meeting Summary Minutes 12 the first public hearing before the Planning Commission that will be held at the Wheeler Taft Library. The second public hearing will be held November 20 before the Planning Commission in the Council Chambers. On December 10 before the Council a public hearing has been scheduled in the Council Chambers, with a request for action. Upon the Council's action that evening, the Town would then need to have a voter ratification during the August 4, 2020 Primary Elections. This is still a draft plan, and will continue to be up until the Council takes formal action to adopt the plan. During this time, the Town will continue to accept all forms of comments and feedback, and will evaluate those as the Town goes through the public hearing process. EXECUTIVE SESSIONS Pursuant to A.R.S. § 38-431.03, the Town Council may vote to go into executive session, which will not be open to the public, to discuss certain matters. E1 Executive Session pursuant to A.R.S. §38-431.03 (A), Council may ask for discussion or consideration, or consultation with designated Town representatives, or consultation for legal advice with the Town Attorney, concerning any matter listed on this agenda for any of the reasons listed in A.R.S. X38-431.03 (A). FUTURE AGENDA ITEMS Notwithstanding the mayor's discretion regarding the items to be placed on the agenda, if three or more Council members request that an item be placed on the agenda, it must be placed on the agenda for the second regular Town Council meeting after the date of the request, pursuant to Marana Town Code Section 2-4-2(B). ADJOURNMENT Mayor Honea asked for a motion to adjourn the meeting. Council Member Bowen moved and Council Member Comerford second the motion to adjourn the meeting. Motion passes, 6-0. Meeting adjourned at 7:46 P.M. CERTIFICATION: I hereby certify that the foregoing are the true and correct minutes for the Study Session Meeting of the Marana Town Council meeting held on October 8, 2019. 1 further certify that a quo�was present. 0�/fti Cherry L. La son, Town Clerk MARANA AZ ESTABLISHED 1977 October 8, 2019 Study Session Meeting Summary Minutes 13