Apache Junction approves 209-unit Goldfield Estates townhomes, secures double-A credit rating

Apache Junction Council Greenlights Goldfield Estates Townhomes and Pension Bond; New Council Members Appointed After Contentious Vote

The Apache Junction City Council approved three major items on May 18, 2022: a 209-unit townhome subdivision at the northwest corner of Goldfield Road and US-60, a revenue bond to address unfunded pension liability (which earned the city a double-A credit rating), and two new council members to fill recent vacancies. While the development and bond sailed through unanimously, the council appointment of Bambi Johnson encountered resistance, passing only 3-2 after two earlier nominees failed to secure a second or majority support.

The meeting, held at City Hall, drew eight public commenters who raised concerns spanning water scarcity, marijuana dispensary traffic impacts, property values, and the wisdom of locating a drug-and-alcohol detox center next to a marijuana store.

Key Speeches

"We are as we've gone through the process as staff indicated we've had relatively low interaction with neighbors and we're appreciative of staff's recommendation and appreciative of the planning commission's unanimous recommendation." — Brennan Ray, attorney for BFG Group LLC (applicant)

"Apache Junction is part of the Maricopa Water District and not the Pinal County Water District. It's one of the few things that we're a part of Maricopa County with that. The Pinal County Water District is the one that's in the greatest need right now so we've done a lot of work to make sure that we've got plenty of water for years to come." — Mayor Chip Wilson, addressing water supply concerns

"The city of Apache Junction has what's called a 100-year water supply assured water supply. We are a part of the Phoenix Active Management Area and worked very closely with ADWR and are very concerned about the conservation efforts." — Chip Wilson

"Congratulations to you and to the city and staff for the very exciting outcome" of the double-A credit rating process. "The credit rating is like a credit score for you individually and so the higher your credit score the higher your credit rating the lower the interest rate is when you go to borrow money." — Nick Dodd, Piper Sandler, city financial advisor

"The extensive work with our veterans not only locally but statewide really tipped the scales for me" in supporting Bambi Johnson appointment. — Councilmember (name stated in motion but not attributed in transcript)

Timeline

Goldfield Estates Project (Items 7–11):

• Applicant presentation: Nick Leftich (Development Services Director) explained the project's three-case structure: (1) planned development major amendment to Ordinance 1132 (the 5.14-acre B1 PD parcel); (2) rezoning of 7.5 acres from residential to commercial PD; (3) preliminary plat subdividing all 12.64 acres into 209 townhome lots with amenities including clubhouse, pool, pickleball courts, ramadas, pathways, and guest parking. Units feature two-car garages with patio fronts. Brennan Ray (Ray Law Firm), counsel for applicant BFG Group LLC, offered full presentation if desired but deferred to council's preference given staff and Planning & Zoning support.

• Staff recommendation: Planning & Zoning Commission unanimously (7-0) recommended approval on April 26, 2022. Staff also recommended approval; four calls/emails received from neighbors—some in support (citing relief that land would be developed rather than used for ATV riding, noise, vagrants, trash), others expressing concerns about traffic and noise. Staff emphasized architectural enhancement conditions and cooperation with applicant.

• Public comment: Four speakers during public hearing. Donna Carr (resident) expressed support for housing development over industrial use; Pamela Xele (175 South Stardust Lane) raised concerns about Arizona's water scarcity; Ari Callan (244 West 18th Ave) questioned whether units would be rentals or for-sale single-family homes; Western Country Horse Community representative (2304 North Cortes Road) suggested city beautification elements (horse statues) modeled after Wickenburg for community entries.

• Council discussion: Chip Wilson stated he had no concerns and reviewed the packet. Vice Mayor Rizzi noted he had a meeting with Nick Leftich the previous day and had questions answered. Brennan Ray clarified that the preliminary plat on the agenda subdivides lots, allowing ownership and sale (not a corporate rental model). Nick Leftich added that townhomes require private ownership. Chip Wilson clarified Apache Junction's membership in Maricopa Water District (not Pinal County) and noted 100-year assured water supply under Phoenix AMA; staff emphasized desert landscaping requirements and responsible planning balancing housing and conservation.

• Vote: Item 7 (Ordinance 1524 – PD Major Amendment): 5-0 approval. Item 8 (Resolution 22-20 – Legal Descriptions): 5-0 approval. Item 9 (Ordinance 1525 – Rezoning): 5-0 approval. Item 10 (Resolution 22-21 – Legal Descriptions): 5-0 approval. Item 11 (Resolution 22-18 – Preliminary Plat): 5-0 approval.

Pension Revenue Bond (Item 13):

• Applicant presentation: Leslie Duresh (Finance Director) introduced the resolution to issue a revenue bond to pay off unfunded Public Safety Personnel Retirement System liability. Nick Dodd (Piper Sandler, financial advisor) reported that Standard & Poor's and Fitch Ratings had concluded a credit rating process, awarding the city a double-A rating—matching Casa Grande and one notch below Queen Creek (double-A plus) and Mesa (double-A plus). Dodd noted the rating reflects Apache Junction's conservative financial practices, minimal debt, and city growth. Zach Zaka (bond counsel, Sherman Greenberg Targ) was available for questions on legal documentation.

• Council discussion: Chip Wilson asked about interest rates. Dodd replied rates are "in the mid-four range right now," down from earlier projections of around 5%, and staff monitors daily with weekly updates. Chip Wilson indicated satisfaction with the outlook.

• Vote: Resolution 22-13: 5-0 approval.

Council Appointments (Items 14 & 15):

• Applicant presentations: Chip Wilson thanked all 15 applicants, acknowledging the nervousness of coming forward and the difficulty of the selection process. He encouraged unsuccessful candidates to remain involved with city boards and future elections.

• Council discussion: Chip Wilson reiterated gratitude for qualified candidates and noted the community's willingness to serve. An unnamed council member cited extensive veterans work (local and statewide) as the deciding factor for one appointment.

• First appointment (Kelly Gremel vacancy): Robert Schroeder moved Peter Heck appointment through January 7, 2025. Motion seconded. Roll call: 5-0 approval.

• Second appointment (Braden Biggs vacancy): First motion: Bambi Johnson. Result: Evans yes, Rizzi no, Tess Nesser yes, Robert Schroeder no, Chip Wilson no (stated he wanted to see other nominees). Motion failed (2-3). Second motion: Frank Shaneback. Motion died without a second. Third motion: Charles Beale. Result: Rizzi yes, Tess Nesser no, Evans no, Robert Schroeder yes, Chip Wilson no. Motion failed (2-3). Fourth motion: Bambi Johnson (renewed). Result: Robert Schroeder no, Rizzi no, Tess Nesser yes, Evans yes, Chip Wilson yes. Motion passed (3-2). Both appointees sworn in by City Clerk Jennifer (last name not stated in transcript).

• Oath of office: Peter Heck and Bambi Johnson raised right hands and swore to support U.S. and Arizona constitutions and city ordinances, discharge duties faithfully, and defend against foreign and domestic enemies.

Opposition

Goldfield Estates:

• Number of speakers against: None directly opposed; all public comment either supported or raised tangential concerns.

Marijuana Dispensary (separate from Goldfield vote but raised during public comment):

• Number of speakers: 1 (Marilyn Evans, Sunny Lane Estates HOA)
• Main concerns:
  1. Marijuana store at Palo Verde and Apache Trail creates traffic problems; customers ignore speed limits and no-trespassing signs in adjacent private neighborhood.
  2. On 420 Day (April 20), customers parked in Sunny Lane Estates, blocking driveways on narrow streets; emergency personnel access would be compromised.
  3. Corner lot is small, hosting five or six businesses with insufficient parking; one restaurant would not allow use of handicapped spaces and threatened towing.
  4. Poor site planning and layout; request that Planning & Zoning reconsider location.
  5. Adjacent alleyways overrun with vegetation and trash from neighbors; city needs to clarify maintenance responsibility.

Water Supply and Property Values:

• Donna Carr expressed concerns about Arizona's water future; city responded with assured supply information.
• George Shorter referenced John Kyle (water expert) and warned that Mesa could force Apache Junction to relinquish water rights under federal compact pressure.

Property Value Depreciation / Drug/Alcohol Detox Center:

• Donna Carr stated that claims that a nearby drug/alcohol detox center would not depreciate property values are "not true" and criticized Planning & Zoning's 7-0 approval as not considering community impact; she requested help filing a petition/deferment form (approximately 1,700 signatures required from registered voters) to reverse the council decision.

Council Response:

• Chip Wilson and Robert Schroeder clarified that council members cannot legally assist citizens in filling out petition or legal forms, as doing so would constitute unauthorized legal advice. (The detox center decision was not on this agenda and was not revisited.)

Support

Goldfield Estates:

• Number of speakers in favor: 2 (Donna Carr, Western Country Horse Community representative)
• Main arguments:
  1. Housing development preferable to industrial/commercial uses in this location.
  2. Residential development appropriate north of Old West Highway and north of the trail.
  3. Developer should consider beautification measures (e.g., horse statues) at community entry, similar to Wickenburg.

Pension Revenue Bond:

• No public opposition; council noted it will save the city considerable money.

Council Appointments:

• No organized support or opposition; focus was on individual qualifications and veterans service credentials.

Project Details

Goldfield Estates (Items 7–11):

• Case numbers: P-21-94-PZ (PD Major Amendment), P-21-95-PZ (Rezoning), P-21-96-SD (Preliminary Plat)
• Applicant / developer: BFG Group LLC
• Attorney: Brennan Ray, Ray Law Firm (1850 North Central Avenue, Phoenix)
• Location / address: Northwest corner of Goldfield Road and US-60 Highway, Apache Junction, Arizona
• APN (Assessor Parcel Number): Not stated in transcript
• Current zoning → Proposed zoning: Mixed: 5.14 acres B1 PD (General Commercial by Planned Development, bound by Ordinance 1132 from 2000); 7.5 acres RSGR (General Rural Low Density Single-Family Residential) → All 12.64 acres to be rezoned as B1 PD (General Commercial by Planned Development) with minor general plan amendment from Medium Density Residential to Commercial
• Units / density / square footage: 209 townhome lots on 12.64 acres
• Amenities: Clubhouse, pool, pickleball courts, ramadas, community pathways, two-car garage per unit with patio fronts, guest parking throughout
• Access: Primary access via 28th Avenue; secondary egress via Star Road
• Changes from previous version: Original 2000 PD Ordinance 1132 (for a gas station and undefined rear commercial use) required major amendment to accommodate townhome development; current plan represents substantial deviation from 2000 concept.

Pension Revenue Bond (Item 13):

• Issued for: Paying off unfunded pension liability for City of Apache Junction Public Safety Personnel Retirement System
• Credit rating: Double-A from Standard & Poor's and Fitch Ratings (equivalent to Casa Grande, one notch below Queen Creek and Mesa)
• Interest rate range: Mid-four percent (down from initial projections of ~5%)
• Authority granted: Delegation to staff for market timing decision on bond sale; authority to implement within parameters established in Resolution 22-13
• Expected benefit: Significant cost savings to city

Vote Breakdown

Goldfield Estates Items (7–11):

• Ordinance 1524 (PD Major Amendment): 5-0

  • Yes: Council Members Evans, Vice Mayor Rizzi, Tess Nesser, Robert Schroeder, Chip Wilson
  • No: None
  • Abstentions: None

• Resolution 22-20 (Legal Descriptions): 5-0

  • Yes: Evans, Rizzi, Tess Nesser, Robert Schroeder, Chip Wilson
  • No: None

• Ordinance 1525 (Rezoning): 5-0

  • Yes: Tess Nesser, Robert Schroeder, Evans, Rizzi, Chip Wilson
  • No: None

• Resolution 22-21 (Legal Descriptions): 5-0

  • Yes: Robert Schroeder, Rizzi, Tess Nesser, Evans, Chip Wilson
  • No: None

• Resolution 22-18 (Preliminary Plat): 5-0

  • Yes: Tess Nesser, Evans, Robert Schroeder, Rizzi, Chip Wilson
  • No: None

Pension Revenue Bond (Resolution 22-13):

• Final: 5-0
• Yes: Robert Schroeder, Tess Nesser, Evans, Rizzi, Chip Wilson
• No: None

Council Appointments:

• Peter Heck (Kelly Gremel vacancy): 5-0

  • Yes: Robert Schroeder, Rizzi, Tess Nesser, Evans, Chip Wilson

• Bambi Johnson (Braden Biggs vacancy, final vote): 3-2

  • Yes: Tess Nesser, Evans, Chip Wilson
  • No: Robert Schroeder, Rizzi

Outcome & Next Steps

Goldfield Estates: Approved unanimously in all five votes (5-0 per item). Project moves to implementation phase. Developer to continue architectural enhancements as outlined in conditions. Preliminary plat subdivides 12.64 acres into 209 townhome lots; individual lot sales and construction timeline not specified in transcript.

Pension Revenue Bond: Approved 5-0. Staff granted authority to proceed with bond sale subject to market conditions; Piper Sandler financial advisor and Sherman Greenberg Targ bond counsel to conduct due diligence conference call on May 19, 2022. Sale could occur within one to two weeks, pending market monitoring (inflation, supply chain, geopolitical concerns noted as current volatility factors). Expected to close at mid-four-percent interest rate, saving the city significant money versus current unfunded liability obligations.

Council Appointments: Peter Heck (5-0) and Bambi Johnson (3-2, after two failed motions and one renewed motion) sworn in immediately. Peter Heck serves through January 7, 2025. Bambi Johnson serves until seat filled at August 2022 primary election or, if no outright winner, through January 7, 2025 at next regularly scheduled election. Both took oath of office administered by City Clerk Jennifer before taking seats at the dais.

Marijuana Dispensary / Sunny Lane Estates: Council offered to work with HOA President Marilyn Evans on trash and parking enforcement issues; no motion to revisit marijuana store location or zoning. Chip Wilson or council agreed to follow up directly with Evans.

Water Supply Clarification: City reiterated 100-year assured water supply through Phoenix AMA (Maricopa Water District); no action taken on public concerns about Arizona's long-term drought or Mesa's potential leverage. Chip Wilson noted water board meetings are videotaped and available on city website for public review.

Drug/Alcohol Detox Center / Petition Effort: Donna Carr asked for help filing a petition to reverse council's prior decision on detox center location. Chip Wilson and Robert Schroeder clarified that council cannot provide legal assistance for petition forms (approximately 1,700 registered-voter signatures required for referral/deferment); citizens must consult attorneys. No council action taken to revisit the detox center decision itself.

Controversies & Context

Marijuana Dispensary Parking and Traffic: Sunny Lane Estates HOA President Marilyn Evans raised concerns about the marijuana dispensary at Palo Verde and Apache Trail. She reported that on 420 Day (April 20), customers from the store parked illegally in her private neighborhood (Sunny Lane Estates), blocking driveways on a narrow street where emergency vehicle access could be compromised. Evans criticized the site plan for the corner lot, which she said hosts five or six businesses with insufficient parking. She requested Planning & Zoning reconsider the location. Underlying tension: poor site planning and failure of enforcement of private property no-trespassing and speed-limit signs.

Property Values and Drug/Alcohol Detox Center: Donna Carr stated that a nearby drug/alcohol detox center (decision made in a prior council meeting, not on this agenda) would depreciate property values despite Planning & Zoning's 7-0 approval stating otherwise. She expressed intent to gather approximately 1,700 signatures from registered voters to file a petition/deferment form to reverse the council's decision. Chip Wilson and Robert Schroeder declined to assist her in filling out legal paperwork, citing prohibition against providing unauthorized legal advice. This suggests a prior council approval of the detox center has generated ongoing community pushback.

Council Appointment Divisions: The second appointment (Bambi Johnson to Braden Biggs' seat) required three separate motions and two failed votes before passing 3-2 on the third attempt. The first nominee, Bambi Johnson, failed 2-3 (with Chip Wilson, Robert Schroeder and Rizzi voting no). A second nominee, Frank Shaneback, received a motion but no second. A third nominee, Charles Beale, also failed 2-3. Bambi Johnson was then renominated and passed 3-2 (Tess Nesser, Evans, Chip Wilson yes; Robert Schroeder, Rizzi no). The contentious nature of the vote (splitting 3-2 vs. the unanimous 5-0 approval of Peter Heck for the Gremel seat) suggests internal council disagreement, though the transcript does not record detailed debate on Johnson's qualifications. An unnamed councilmember cited Johnson's "extensive work with our veterans not only locally but statewide" as the deciding factor.

Water Supply and Future Capacity: Public commenters Pamela Xele, George Shorter, and Chip Wilson/staff discussed Arizona's water crisis. Xele warned that developers may not be disclosing Arizona's water scarcity to buyers. Shorter referenced John Kyle (noted as Arizona's water expert and federal liaison) and stated that Mesa could force Apache Junction to relinquish water under federal compact pressure. Chip Wilson countered that Apache Junction holds a 100-year assured water supply through the Phoenix AMA (Maricopa Water District), not the Pinal County Water District (which faces greater strain). City clarified that desert landscaping and conservation requirements govern new development approvals. This reflects ongoing tension between growth and long-term resource sustainability in Arizona.

Goldfield Estates — Residential vs. Rental Concerns: Public commenter Ari Callan questioned whether the 209 townhomes would be rentals or for-sale single-family homes, expressing concern that the city is approving too many corporate-owned rental facilities rather than owner-occupied housing. Brennan Ray clarified that the preliminary plat subdivides lots for sale, allowing individual ownership (though owners may choose to rent). This distinction appears to have satisfied the concern, though the comment reflects broader Phoenix metro debate over rental vs. owner-occupied residential development.

Duration

• Goldfield Estates items (7–11): ~45 minutes (applicant presentation, staff detail, six public speakers, council discussion, five separate votes)
• Pension Revenue Bond (Item 13): ~20 minutes (financial advisor presentation, bond counsel availability, minimal council discussion, one vote)
• Council Appointments (Items 14–15): ~30 minutes (council remarks, Peter Heck appointment vote, Bambi Johnson appointment debate and three motions, oath of office)
• Call to the Public (public comment): ~25 minutes (6 speakers: Marilyn Evans on marijuana dispensary, Michelle Thies on motorcycle event, Donna Carr on petition/detox center, George Shorter on noise ordinance/budget/water, 1 additional speaker on marijuana; approximately 3 minutes per speaker)
• Total meeting: ~2 hours 30 minutes (estimated; exact duration not stated in transcript)

Other Notable Items

Intergovernmental Updates / Mesa Gateway Airport: Chip Wilson reported major growth at Mesa Gateway Airport: 1.3 million passengers through March 2022 (up 57% year-over-year); food, beverage, retail, concessions, and car rental revenue of $5.1 million (up 7%). New air traffic control tower opening fall 2022; ticketed gates expanding from four to eight; rental car return lot improvements to reduce off-site maintenance; parking expansion (Christmas 2021 lot overflow prompted expansion). Gulfstream Aircraft Maintenance Facility groundbreaking held: Phase 1 is 130,000 sq ft, $50+ million valuation, 200–250 employees; Phase 2 expansion to 225,000 sq ft, 600+ employees. 40-year lease with two 5-year renewal options (50 years total). Gulfstream hired 60 employees with 60 current openings; partnered with Chandler-Gilbert Community College for training. Facility is West Coast maintenance, repair, and overhaul center. Mayor emphasized this as major employment opportunity adjacent to city.

Land Use Assumptions and Infrastructure Improvement Plan (Item 6, Resolution 22-01): Development Services Director Rudy Esquivious and consultant Ben Griffin (Tishler Bice) presented updated land use assumptions and infrastructure improvement plan (IIP) showing 10-year projections of 13,000 additional housing units (~30,000 residents) and 1.8 million sq ft non-residential floor area. Proposed development fees: single-family home fee increase from $5,932 to $6,736 (increase of ~$804). Fees cover library facilities ($550), parks/recreation ($1,707), police ($1,229), and streets ($3,250). Adoption timeline: advertise fees tonight (May 18); final adoption targeted for August 16, 2022; fees effective October 31, 2022. Resolution 22-01 approved 5-0. Separate adoption process for fees to follow.

Library and Police Awards: Public Information Officer Al Bravo reported library youth area recarpeted this week (one-day project). Police awards ceremony held at Dolce Vita; salute to men and women in public safety. Freeway project weekend closures (Saturday/Sunday overnight, westbound and eastbound) and Ironwood re-striping (Friday night) announced.

Condolences for Former Council Member Aryk: City Manager Brian Powell and Al Bravo offered condolences to friends and family of former Council Member Aryk (served 1997–2011, including as vice mayor). Powell noted Aryk's involvement in water district, sewer district, first capital facilities plan, and city hall dedication 17 years prior.