Apache Junction advances 11,000-home Superstition Vistas annexation with $400 million infrastructure bonds

the city of apache junction council work session to order roll call mayor wilson yes vice mayor president council member biggs yes council member evans here council member gremle here council member nesser here council member schroeder here you have a quorum your honor thank you i'd like to combine and the presentations for items number one and two ordinance number 1508 and resolution number 21-30 related to non-residential use regulations and non-residential bulk regulations nick thank you mayor wilson good union council so tonight i just want to review the text amendment case 1-21 the revisions to the commercial land use table so we met regarding this last month and in reviewing the amendments there were some there were a few items that we wanted to look into further as we discussed with our stakeholders and interested property owners so because of that we continued it till now of course so the three main items that we identified and there's smaller items within such is reevaluating some of the b3 downtown land uses clarifying some language especially regarding one of the footnotes and there's some questions about outdoor amplified music and condition news permits and we just wanted to touch on the research and the findings that we've had since then so first regarding the reevaluation of v3 land uses um looking at it all the uses that were identified within the meeting we we went into further a lot of them were those that were brought up by one of the big stakeholders as carl hughes got up and he gave a presentation he spoke about um what what they especially because they're a significant landowner they spoke about what they believed would fit and uh out of respect we reincorporated and we we we worked and tried to figure out what would work best and in some senses our our staff recommendation still stands uh and in others they're like okay i think that this is a better way to do that some things that for example print printing shops like a fedex or kinkos or or or offices in general whether it's a physician's office or like a lawyer's office i have been amended to be just permitted by wright that's kind of how they originally were and as we were trying to figure out originally it was going to be like a yes with certain conditions and it kind of seemed a little bit too burdensome as we discussed in when we had our discussion and so generally we changed that yes with a footnote to just yes by right auto part sales and appliance repair they are permitted when incidental to a permitted primary use like for example take an apple store where you have that that is primary retail of like a cell phone but they do appliances and it wasn't that they were never meant to be prohibited but just in order to clarify the language these things were were given the yes in this instance and uh with this condition just just be clear and i'll talk more about that in the next slide as we get into the footnote itself staff recommendation regarding car washes auto repair shops nurseries and greenhouses and antique stores have not changed so right now those those are a no for various reasons and i can go into them as much as we might want to talk about um and vehicle showrooms were something that we had a brief discussion on which is the idea was like the tesla showrooms that they have in the mall the and we try to consider all the different ways that it could be done there was a proposal to limit it maybe to a certain square footage or to have all these different stipulations but as we further researched and we discussed it with other municipalities and it kind of became clear that even when these malls have these showrooms essentially they still have a lot maybe behind the mall or something because people wanted to test drive it and the line just kind of became more and more gray into what what the difference was between these vehicle showrooms and a standard motor vehicle dealership other than the amount of cars uh and and there was news articles and reports that said that tesla's they they don't think it's really working for them they're they're going for parking lots again and so in general with this kind of discouraging news about this whole retail experiment we believe staff believes that it's best to just keep that motor vehicle showroom category within the broader motor vehicle dealer category which is a no in the b3 downtown district and again that only refers to this kind of crimson area right here as for the clarification on the language footnote 6 which was the footnote regarding accessory uses has been changed to read noted uses sean well as written right there so the new text clarifies more that this is specifically about when retailer services are an accessory used to a permitted primary use mayor wilson you talked about for example a feed store a feed store or and feed and fertilizer store is like one category right there and while we don't necessarily want like a a fertilizer depot things like feed and fertilizer are commonly sold within like a larger retail development such as fry's or or walmart and we reworked this text as well as where this footnote is used just to be clear that a lot of these retail uses and services uh when they are part of this kind of broader retail use are permitted they are allowed we're not trying to say fries you can only sell this this and this it's more about the primary uses which the that the use table is concerned with and so we believe that by working this text in this way it's more clear about the intent these things are still within the zoning administrator's interpretation but essentially we are not trying to kind of go through a retail center's inventory and say this or this or this or this so in in some places things have changed just to reflect it's like a yes with a six just to show that this uh that type whether it's like bottled gas is permitted like a fries will sell propane tanks but the like a propane tank store in and of itself is not a allowed use as a standalone so that's what that text has been reworked to incorporate another third item uh council member biggs had talked about that and talked about the concern that maybe we were over regulating or over harsh when with how we use the conditional use permits and this was something that the code currently has currently in place and as he suggested to to maybe modify that we we did a little bit more research and a bit more digging and so we we looked into it and staff still recommends keeping this the conditional use permit requirement for outdoor amplified music checking with other municipalities one of which was gilbert talking about whiskey road specific they they brought up whiskey row actually and they said that while they do have noise ordnance like we do to kind of try and control these things what they ran into actually and this is something that might bear discussion later on is that the biggest problem was actually base levels which are different from the decibel levels that our ordinance regulates death spell just being like the volume of like the the standard music but the base levels which can go undetected by by the decimal readers that we use are the is the the force of music that will end up shaking someone's house in the neighborhood around it and so in that sense until we kind of come up with a proper solution to kind of deal with that issue we believe that it would be better to keep the conditional use perm requirement that we already have just so that there's that extra level of protection so that the planning and zoning commission and the council if it appealed to would have the opportunity to put conditions on there to just make sure that if if loud amplified outdoor music is going on that there's some sort of remedy or some sort of solution that we can work out with conditions so in that sense we suggest it stays or recommend i should say with that tomorrow we will be going over both the resolution number 21-30 which will adopt the amendments as a public record and the ordinance number 1508 which will use that document and to replace the current article 1-5-3 in article 1-5-4 and that's what we're looking at tomorrow within the public hearing okay we got any questions i do urinal we'll go ahead um so regarding the amplified noise and i understand base levels aren't covered um so then what would happen if if we left it as staff recommends and we get a business like a whiskey row who has a cup has to follow the noise ordinances all that um but then has issues like base that fall outside of the noise ordinance outside of the decimal readings outside of their cup even are they in jeopardy of potentially having their cup ripped from them or or taken back to the the authorizing body uh so with the way the law is currently written no uh and i say that because this is probably something we'll have to look more into the future as these ordinances have developed uh this is a kind of legal gray area that hasn't been addressed by the current ordinance so there is no current remedy to say no because our ordinance does not does not calculate base levels so with that in mind i think moving forward until we might address this within the noise ordinance it might be wise to include as a condition within a conditional use permit to to regulate the base levels and not just the decibel levels so let's say like a restaurant it already exists and none of that language is there the way it is right now we would probably just try and work with them to find a solution because the because the noise ordinance and our conditional use permits regarding this up until now have not addressed base levels um and those are the conditions where on like a a permit would be revoked or not since that's not one of the items that can like that's not one of the things that they could be revoked on right now uh it would just be something we would work out so we could still then potentially set a condition to regulate the base levels even though we have the noise ordinance so that there's that added layer of protection for both sides really but yeah that's correct okay thank you yes um i just had one question on the original letter with the uses that the landowners were asking for the one thing it said was appliance sales well when you think about it like a spencer's why would we wouldn't object to a spencer's but on the letter from august 9th it addresses appliance repair but do we really want to have just a repl appliance repair as a standalone no i i believe it's been a yes with the six so that it's only as an accessory accessory okay i just want to make sure oh i understand it's for the same reason you address that we considered okay robert yes i do have a question and this is just for clarification yes so staff recommended cup for an outdoor um events like the risky role for concerts and things councilmember biggs says why do we need the cup just have them fall under our noise ordinance which brings us back to today and staff answers to that is no we still recommend cup because of a different kind of noise um there's more reasons to it than that the use of the conditional use permit is to to allow well well the question was do we just leave it to the noise ordinance itself to regulate or or are there other factors to consider with the use of condition ease permit with use of condition news permit the planning and zoning commission has a little bit more influence in being able to determine like let's say for example with whiskey row this was something that was brought up previously they worked with the city in order to make sure before they realized that the base levels were even a problem they had the the whiskey row open up to the street because all the residences are facing are on the east side and this opening is on the west side and so as part of the city process they were able to work with them in order to kind of create a form that was more amenable to the area and the surrounding it just happened to be that they discovered other problems later but the use of conditional use permit allows us to kind of have that that compromise to be able to work with them if there's other conditions necessary sometimes sometimes it could be something specific about the way it operates or hours of operation uh things that aren't necessarily noise based the the conditioners permit addresses and allows for uh planning and zoning into yeah and the way people run their business to an extent okay the only thought i have on that now i don't have any questions this whole thing about the nori's ordinance we already have one i'm not certain we should be treating these restaurants the ones that would have outdoor music any different than any other restaurant i agree i mean at this point right now the cup is making an assumption that there's something wrong and we don't know that there's anything wrong because you yourself have said we don't know how to measure we don't have the equipment or whatever to measure decibel levels of what's too loud or whatever with bass or sounds or or whatever so there's an assumption that something's wrong that we don't know what it even is so why are we placing an extra burden on these businesses why doesn't cups apply to all business all restaurants that you know or either have a cup for all of them or none of them i agree i agree well if i could uh offer some input the the difference is it's not specifically restaurants that have like an opening like this for instance it it they could come in without use of a cup it is for the outdoor activity and outdoor amplified music that aspect of it requires this condition use permit so why you don't know that there's a problem so why place an extra burden on them other than any other restaurant because we don't know that there's a problem your honor and i would add to that same point if we're really talking about outdoor it's without with amplified outdoor music so to say that the addition of a cup is is beyond amplified music is contradictory to what's in the co it to what you're proposing it specifically says restaurants bars clubs with amplified outdoor music that amplified outdoor music falls under our noise ordinance which stops that music at 10 o'clock now i understand base levels and there are certain things that that we may need to eventually go back and look at from a policy standpoint to our noise ordinance but we cannot treat businesses differently and i think that uh whiskey row is a great example you said it yourself and and i heard it when i talked to gilbert as well they worked with the business to say hey we've got residential to the east let's put you westward facing so noise is going west out onto the street that's going to be busy and have noise versus going east i think there are things that we can do to be more business friendly work with that on a staff level than like robert said putting undue regulation or burden on a business owner who's just trying to open up and run their business so the plan commission just approved a a wedding venue that has outdoor music and we worked with them we actually had a recess during the middle of the plan commission meeting to work with them but they are in a residential area because it's outdoor activity who thought well you're going to have a wedding it's going to be inside mostly but it's going to be a nice day someday it's not going to be 118 and maybe you want to have outdoor music amplified or not and so we worked with that person during the conditional use permit process to focus on what the neighbor concern is so that is in an area that's on old west highway that has more rsgr lots those will be the people that will get the calls from so i think we have a lot of experience with noise whether it's phillies whether it's hitching post outdoor amplified music whether there's bass or not can create a problem in neighborhood in neighborhood downtown revitalization tempe is having this problem so downtown is going to change we're adding right now on the books about over a thousand residential units which is a good thing all this has to live in harmony so we think the conditional use permit is a good way to balance the city interests the neighborhood interest and the entrepreneur's interest but then wouldn't we want to say because we're talking about the business district b1 through b5 shouldn't we be addressing that then to saying that that would only apply when they're within a certain distance of residences that are in those areas because if there's no residences in there why should they need a cup to have an outdoor music in a in a business district if there's no residences anywhere within a mile away or whatever i agree they're coming though residences are going to be there so again it's your policy decision it's how you want to write the ordinance right now all outdoor activities require a cup so again us reaching out to other cities our experience shows that when you have these entertainment areas outdoor restaurant amplified music you end up having conflicts with adjacent residential uses so you have to balance that hours of operation those are the things you can do with a cup you can figure out whether it's you know sunday night no music those are things you can work with a restaurant owner as to whether they're they're going to have outdoor amplified music certain days a week or they're going to cut it off at a certain time let's just ban daniel so it basically just allows us to ask the questions of the business owner so we can say you know what is your intent in terms of music or or anything else right under that cup could it be lighting could it be yeah this under the cup process this planning commission has to have findings of facts so you go you go back to our ordinance and you look at our ordinance there are i think a through f where the plan commission goes through findings of facts to make sure that a proposed activity fits in the neighborhood whatever that neighborhood is whether it's a rural neighborhood or whether it's a downtown neighborhood then why don't we ask it just put all restaurants have to have a cup because they don't have outdoor amplified music but there's other things you just said it could be other things besides music hours of so the activity that we're trying to get after is the outdoor amplified music the fact that they have doors that open that's not a big deal not every single use requires a cup in the city some are permitted uses so historically the city has said outdoor uses whatever they may be need a cup if you want to change that that's fine i'm just saying that normally what we have done here is if you have an outdoor activity that we think there's going to be neighborhood conflict then it's a cup and that there's a process for that and there's an appeal process for that yeah but this cup for the amplified music doesn't it entail more than just the sound itself like a fenced area separate from the parking lot the lighting the exits there's more to it than just the sound correct yes it's the direction of the sound it's what sound attenuation you can use we hear all the time noise about car washes about speakers from fast food restaurants right next to residential areas a lot of cities you have to have uh special use permits just to have a squawk box next to your whatever fast food so we know they're we're trying to avoid these neighborhood conflicts and so what i'm saying if they want to have outdoor music it's not that we're targeting them because they're having outdoor music there's other factors like the fence the lighting the direction there's more to it than just i want to play music outside that's what i'm yes outdoor activity if you yes not just the limiting because of the music it's because they're outside and there's other safety factors involved the wedding venue for example is an outdoor activity there's no restaurant there there's a chapel for the service but they could have the service outside there is a entertainment venue but maybe they want to have music outside but just for the fact that they had outdoor activity triggers it triggers it whether there was amplified music or not for that particular use right it predicates it based off the fact of amplified outdoor whatever now the comparing the situation with the the recently approved wedding venue they're going into an already established residential neighborhood the residents were there first we're talking about undeveloped land where the business could be first and in a mixed use zone you have to know what you're moving into that's buyers due diligence if you live above a bar or restaurant you have to know that you moved in above a bar or restaurant the same thing as we've said all across the city that you buy a house across the street from a vacant commercial zone and all of a sudden a commercial zone comes in it was there you should have known that basing this off of off of that i don't feel sympathy in in in what goes in down there because people are going to be aware of the zoning that's there they know what they're moving into they know how they're going in be it in that in that square parcel or over in on the grand hotel site they know what's going on over there exactly right we're basing this strictly off of amplified noise outside and it's more than parking those things we can already already talk about the noise ordinance you got to knock it off at 10 you got to lower it down if certain things aren't covered that's a different policy conversation we can open that noise ordinance backup there's other policy conversations that we can have there this is specifically targeting businesses and making it harder for them to operate i do not believe that at all that we do not target any business we got to make it compatible for the entire city but and i understand what you're saying about the noise don't get me wrong but there's more to it than that and even if they open up on the south 40 and there is absolutely nothing around it depending on the venue that they want to have outside we have to know that this is separate from the parking lot and all of those are the issues that the cup takes care of one of the points i wanted to make is that we have nearly 500 units proposed that they're waiting for this ordinance to be approved hopefully tomorrow night they can move forward with their roughly 450 units they also have acquired this property which they'll will do residential so it may not be the case that the commercial comes first it may be that the residential comes first so this 17-acre parcel this 17-acre parcel about five or six will be commercial this has been slated for several hundred units so it may not be the case that the commercial comes first larry the zoning is there i'm sorry if you move into a downtown district and you don't know that there's going to be loud noise or or what that's like moving into downtown phoenix across the street from the stadium and not knowing that there's sports games every weekend i mean come on your honor yes tonight is a policy discussion it's not any decisions it's your policy how you all want to do it remember a few years back when superstition harley came in the original owner decided to have events and decided to have outdoor music this room was filled this is only a tool that staff is recommending it doesn't have to have it just just wanting you to know i don't know how what we would have ever done if the new owner superstition harley wanted to continue to do all the all the events but i don't know if everybody remembers that time so this is just an opportunity to have that cpcp's done at the pnc level but it's staff recommendation i i don't know what else to say about it but you guys can it's your policy if you change it tomorrow we're great too so and it would not necessarily be that the noise ordinance it or the noise itself would trigger the cup there could be other issues involved as well correct but gail if that's depending so if you're opening a brand new venue versus in an existing building say where it's already happened just say what is the pterodittles okay they had music before did they have to go through a lot of hoops i mean i don't believe they've had outdoor music but if they want to turn their patio and have outdoor music they would that's an outdoor activity that would require a cup your honor yes i'm just going to call on you i totally agree with everything that brayden and tess have said and using tara diddles as an example um i mean at what point do we support the businesses i i understand the neighbors but exactly what braden said looking down south people have got to know we have this issue all the time moving in next to horse property and then complaining about the flies and the smells um i i just want to i absolutely agree with what tess and braden said um and i'll leave it at that okay any other comments no still i'm going back if you look here on this uh [Music] chart it's got bars breweries brew pubs and tasting rooms yes yes and yes for b1 b2 and b3 but if they add amplified music and it doesn't say anything else gail it just says amplified music now all of a sudden they have to have a cup so we're not that it's saying here they're not talking about anything else but amplified music outdoors outdoors right outdoors but other issues so regular restaurants can do all kinds of stuff outside if it's not amplified music and they don't need a cup because that's what this says olive garden they can have an outdoor sitting area it's like an outdoor smoking area to accommodate the smoking law change we have all sorts of outdoor sitting areas did we need a cop for dutch brothers they have outdoor music that plays because i can hear it from my friend's house who lives with an eyesight do they complain about it they do they do they're not that's not considered outdoor amplified music that's like live music is the way we've but we so if there's a complaint we'll act on it so something on a speaker just that's just music piped through that might be outside is not considered amplified that is i don't know the answer to that question right off the top of my head here but it's not what we're considering tonight we're talking about live music outside or a dj or something that but that's not what this says no yes outdoor amplified music is what yeah but that doesn't mean it's live it could be a it could be a radio yes true so then any business that has music outside we should really start like sonic you mean sonic i mean olive garden plays music outside around there right that we've got it as soon as we get an olive garden we'll make them get a soupy or we can just not so you're honest that's all at this point so i just have one one question so like let's just take an average we'll take terry diddles for example they decided to throw a cornhole tournament outside with with just the jukebox playing that's no cause for cup they can have so many outdoor events as special events i think it's for that they just get a special event permit throughout so and if they're going to serve alcohol in the parking lot then obviously they would need a special event liquor license but for occasional activities like we've done with the vfw and the elks they all have those outdoor events that are seasonal periodic several times a year so special events versus every friday saturday sunday nights correct yeah we have a process for special events so if things are like hey we want cornhole tournament every saturday on our back patio correct amplified music cup operate your business cp okay all right thank you so i'm going to uh combine um items number three four and five related to the superstition vista's development south of 60 east of meridian and north of uh sr 24 alignment which includes the master plan community zoning as well as the associated documents related to development agreements financing creation of the community facilities district policy uh brian you're first yes thank your honor i'll kick this one off and then we'll go through the staff here but i'm very excited to introduce this item tonight this has been many many months and many many years of work for many many folks and tonight i'd like to start off with recognizing the teams on the city side and then on the private side and then i'm going to turn it over to sydney to talk about the zoning so many of you may or may not know but rudy's middle name is annexation [Laughter] he is rudy annexation aschevious and uh rudy had my huge heartfelt thanks uh in working through the annexation process with our uh folks from the from the state land department that meeting that took place a couple years ago just to have the opportunity to annex was key and this it was a big chapter in this in this process so um and on the zoning side it's been sydney larry and rudy who have been uh the the core team on helping us through the existing zoning that we we have here versus where we're headed now and sydney has been our project manager from the staff in so air traffic control foreman leader sydney thank you he's taken on a whole bunch and i appreciate all that he's done to help carry this through and keep us moving forward another team that i want to mention is our infrastructure team so when you first start talking about how and how much and how much land and what are we looking at well a lot of it depending on what can we serve and how do we best serve and do it the best way possible darren england at the sewer district mike loggins water district and mike weaver are key key folks who have been instrumental in giving us the expertise and the confidence that's been needed to carry this through thank you gentlemen and emile schmidt our city engineer as well on the transportation and drainage side joel and matt busby thank you so much as well on that key infrastructure team that team was probably the first team that was set up to start working on on this on this on this effort another word that another team is the community facility district team which corresponds with the infrastruc the the infrastructure but the financing of this project a super huge shout out to our finance director leslie um darren mike matt joel and zach who is our our legal counsel we haven't done a cfd like this ever and we appreciate all the expertise um from that end and then when you go kind of the next step of what's going to be down there how are we going to interact from public agency side we started looking at how do we organize a development agreement and how it connects to our development impact fees the team has been working so closely together and so well together pam from our library liz lagerbach from parks and rec chief kelly mike weaver mike loggins leslie again matt larry rudy sidney janine from a city perspective to be able to give the insights to be able to to help the developers and the private side to know what our needs are and what we were looking at and then from my end i want to give a big thanks to the development team the folks from dr horton brookfield mark edelman lisa atkins at the state land department and everyone that's been involved has just been first class project and and with a mind eye towards getting us to the point where we could adopt major items in in in this in this city 10 months ago was the auction but prior to that this community has laid a foundation of a vision and hope of what would be down to their southern boundary and how we would interact with our major regional partners like mesa and queen creek and it's been a really great coordinated effort that our fellow cities have worked so well together um here so at this point your honor i just wanted to say thank you to our teams um like i said it's been a really big effort um our community has supported a match a general plan that supports a master plan community to the south for two decades they voted overwhelmingly yes to help make this happen and so that establishes your general plan or i call master plan for the future so with that sydney are you ready let's get going and have some fun tonight good evening mayor and council my name is sydney rice one of the planners on staff tonight i'm really going to be providing a high level overview of the auction and retain them pcs so a bit of context as brian mentioned the arizona state land department had an auction november 4th of 2020 at that time at auction 2800 acres as a successful bidder of the auction dr horton was tasked to re-zone a larger area approximately 8 100 acres those 8 100 acres are known as the site the site is made up of the original 2800 acres and the remainder of that acreage known as the retained property at the time of the auction and up to now portions of the auction property and the retained property were located in un unincorporated pinal county dr horton has requested annexation of these areas and the annexation process started on december 22 of 2020.

at a later date dr horton partnered with brookfield residential properties to to develop approximately half of the auction property and we have an exhibit that will note that split the review of the mpc plans by staff started in april of this year here we have an exhibit that shows the boundaries of the site the boundaries of the auction property noted in gray and our new city limit that will extend down to the 24 and then from east-west it will be from meridian to the cap canal currently our city limits stop at elliott so tonight you have the hard copies of each of the mpc's plans in front of you you may have noticed that the npc plans different size the reason for that is because of the number of documents that are in in each of the mpc plans the the auction npc includes a more of a detailed second layer of of planning which is called the development unit plan the retained parcel does not have a development unit plan when the state land auctions future development units or future land the winner of that auction will provide the city staff to city staff development unit plans at at that time both of those all of those development unit plans will need to be in compliance with the npcs so really what is the mpc you could you could really think of of the npcs as as two new zoning ordinance really that cover a range of topics uh they cover land use budgets uh permitted uses uh street sections uh park standards uh landscape and wall standards it covers really everything within those npc documents it's a really 500 pages of new regulatory language now what do those these npcs really facilitate for the auction property facilitates two development units and approximately 11 new homes and about 450 000 square feet of non-residential development on the auction property for the retained property it's the development of six development units approximately 16 000 new dwelling units on on that portion and about 9.5 million square feet of non-residential development so here we have a pen to paper example uh of that new regulatory language as previously mentioned dr horton and brookfield residential have partnered dr horton is taken to west half and brookfield has taken the east half of the auction property here we have an example of the proposed street networks park locations commercial locations and locations for potential public facilities in terms of public outreach both the development team and city staff has sent out approximately 950 notification letters for owners that reside within 300 feet the development team has also held three in-person neighborhood meetings one on june 14th the second one on june 23rd and the third on august 4th a virtual meeting was also held on on june 16th uh at those meetings approximately 60 people showed up and they were they were generally expressed support of the project questions resided in infrastructure improvements the timing of the sr-24 proposed community amenities and in home prices those were very common questions uh staff has only at this time staff has only received one question one call from a city of mesa residents and they were inquiring when houses will be sold they wanted i think their i think they mentioned their son-in-law to be able to purchase a home near them uh most recently at our planning commission we had four residents at the city of mesa that expressed similar questions and they were answered at that public hearing both of the npcs were heard by the planning commission through two work sessions one in may one in august and most recently last week on 9 14 where the planning commission recommended approval of both npcs tonight is the first of two work sessions the next work session will be on tent four at that work session date the applicant and the development team will provide an overview of the mpc plans and provide a presentation more detailed presentation on on their on their efforts and then we'll be back on 10 5 the next day for consideration of the npcs that concludes my presentation i'm here if you have any questions and so are other members of staff okay i just have one and i just want to clarify uh in regards to the develop uh there was a screen that showed the two the retain property and yes that one this one here uh one back just too far one more um so we're only guess we're talking about the larger scale project but what's being developed by dr horton and brookfield is the auction property not the retained property that has not been sold yet so while that may come in two years ten years whatever that's just more or less saying what is going to be allowed to go down there correct come on comes remember big as that is correct thank you dale no robert uh i just like to say that over the months this whole undertaking i don't think it could have been handled any better i think you guys did a great job yeah thank you councilman and i would agree with um councilmember schroeder a lot of hard work has gone into food thank you christa i reiterate that and and go rudy thank you to all the staff but that's awesome and and i really appreciate that bryant took the time to name all of the individuals that that's great 10 months that's great [Music] and we're looking forward thank you mayor council thank you thank you okay resolutions supporting your honor we we would like to take another minute just to have joel over we won't take to but joel has a little bit you still all right exactly and zach for cfds we just have a couple pieces yeah you thought you were done on this didn't you we were trying to well didn't you cover this in an email that was a long email yeah emails yeah there's uh there's so many pieces in this and it's a it's a big puzzle and the the developer and the city work together to solve these problems it was i think i think i put down excruciating negotiation i think that's the term i used and it was it was pretty intense at times they would probably agree they might have some other words for it but it was it was done very well and also the state land department also the other parts of this and i'll just mention them briefly and then i'm going to turn over to zach he gets the the funnest part because that's the math and i'm an attorney i don't do math well although he's an attorney he does math very well so uh there's the annexation which we've already talked about there's the equivalency ordinance that goes with the annexation we already talked about the mpc there's the ppas that's a procedural um the basically the former development agreement then there's the development agreement then there's the cfd community facilities district papers documents there's a water services and sewer documents and those are service agreements and igas what is a development agreement somebody might ask or maybe you don't want to ask but it's under ars 9-500.05 that authorizes the city to enter into development agreements what does it cover well first it says the document will be effective after annexation you have to pass the annexation first must be consistent with the general plan is uh amendable in writing gets recorded and the the just like zoning it's not good until 30 days later you can't use an emergency class to pass it and also what does it address well the duration so for the auction property 2056 is how long it will go to retain property 2066.

the uses those are covered in the master plan community as is the density heights lot sizes setbacks bulk uses and other similar accessory items dedication of public right away dedication of public parks police library phasing how long will it take and how long can the developer have to have individual development units the public infrastructure the reimbursements exactly we'll go over that that's the cfd part how the cfds are set up he'll also go over that page two um there are master reports that are referenced so those are documents that are very very important they're they're kind of fluid but they are guiding their governing that's the non-potable water plan the drainage plan the transportation plan the wastewater plan those are the details for the planning the engineering the design the construction the acquisition the installation and the infrastructure improvements and many and many other things there's other things that are covered in these development agreements generally at-risk grading assurances dedication and warranties drainage development fees credits how that all works together for the auction property what's the developer going to do for the city what will the city accept on library police and the parks same with retained property there's certain items for those particular components there's also the usual legal stuff indemnification insurance mediation remedies what happens if there's a dispute between a city department director what's the next step to appeal that that goes to the city manager what happens if there's a default on the agreement what happens if there's another [Music] pandemic and does that slow down construction how's that work uh there's going to be homeowners associations involved uh architectural reviews for the types of housing that and that's all in the mpc assignments so the auction property is essentially dr horton that has purchased the property however there's going to be an assignment for part of it and that's going to go to brookfield and other developers so that that's just a general summary of the auction property and the retained property development agreements are there any questions krista do you have any questions no your honor thank you for asking so now i think uh zach would like to speak a little bit on what a cfd is what will happen how there's reimbursement what the estimated cost of a new homeowner will be over time thank you joel mayor council my name is zach zakis i've had the pleasure of serving as council of the city uh as we have started on this potential formation of two community facilities districts in this exciting development uh happening potentially if the annexation happens potentially happening in apache junction so the on on october 5th mayor and council be asked to consider three resolutions and i'm going to give a high overview of those three resolutions and then hope to make it conversational if you have questions to be available for questions the first one the last time i had the pleasure of seeing you was in february and the city adopted policies and procedures related to the formation of community facilities districts in march some statutory amendments were enacted into law and so the first item related to cfds to be considered on october 5th will relate to updating the city's cfd policies to conform with the statutory amendments the the main uh change that happened with the statutory amendments was a change in the required board of directors or an option excuse me not required but an option and who can serve as board of directors for community facilities district the two additional resolutions will address formation of community facilities district superstition community facilities district number one and superstition vistas community facilities district two i'm going to address formation of both of those because they will be substantially similar and from time to time i'll try to point out the differences between the two districts and just in case i get going too fast a homeowner will only live within the boundaries of one district and only be subject to the property's tax of one district so you will not a potential new apache junction resident will not have a property tax charged by both cfd number one and cfd number two it will be one or the other related to the resolutions that will be presented to mayor and council on october 5th for formation of the two cfds you'll receive additional information or you may have it in front of you the landowners have provided a petition required by statute which says we're asking you mayor and council to consider formation of a community facilities district the llanos or landowners in addition in accordance with the statute provide a general plan which is broad intentionally to list all the types of infrastructure that will be constructed within this development the petitioners have also provided applications those applications include details about the character of development proposed tax impact of the community facilities districts proposed timelines of finishing projects which dovet which will dovetail very nicely with the materials sydney presented on uh earlier finally the the last document included in your packets for october 5th related to approval of the cfds is a cfd development agreement the cfd statutes are intentionally very broad to permit these uh separate political subdivisions right these are not a department of the city they're a separate political subdivision as you're well familiar with with the water utilities district those statutes are broad how do we narrow or constrain the focus of what these community facilities districts will do the city the newly formed district if formed and the developer will enter into this cfd development agreement that specifies kind of the rules of the road and how everything will operate on a going forward basis if the districts are formed those matters include things as joel just mentioned indemnification additional deposits made by the developer to fund district operations before property taxes begin to be collected and things of that nature it also addresses property taxes although the city is familiar with the water utilities district of a cfd operating infrastructure charging rates and user fees these cfds will be a little bit different these cfds will charge property taxes collect those revenues and then use those property tax revenues as security to sell bonds and then use the bond proceeds to reimburse the developer and acquire infrastructure the infrastructure will not be held by these two potential new cfds the infrastructure will either go to the city to the sewer district or to the water district these cities are not these two community facilities districts are not intended to own or operate infrastructure they financing mechanism to facilitate development and help the project move forward see one of the items joel joel kind of built me up to do math in front of you so please uh have some numbers prepared if you'd like me to go through that um if you change the numbers it may take me a moment to recalculate so bear with me um but the general anticipated tax levy there's two types of taxes that the cfds are being asked to levy in the petition the first is an operation and maintenance tax that tax goes towards district operations each district will have administrative expenses for example per the statute required to have a website will procure insurance when city staff puts on their district staff hat then they are no longer functioning right for the city they are working for the district at that point and would need to be reimbursed for that time now or the city would need to be remembered for using that city staff person's time likewise the districts will have other additional potential expenses the second type of property tax will be related to bonds issued by the district the district again will have the potential ability to issue general obligation bonds which are backed by property taxes levied by the districts so the two types of tax right operation and maintenance the requested tax rate in the applications is 30 cents per hundred dollars of net assessed limited property value for the general obligation bonds the requested property tax little different in between the two districts district one has requested a a target tax rate of three dollars and thirty cents and district two has requested a target tax rate of three dollars and eighty five cents so the total tax rate uh in district one is projected to be three dollars and sixty cents and the total tax rate in district two projected to be four dollars and fifteen cents now again when the district sells bonds per statute the district is agreeing to levy property taxes at a rate unlimited by rate or amount but what the district the cfd development agreement does is constrain what everybody's expectations are so that the district won't levy or won't issue too many bonds and then have to levy taxes at a rate higher than the target tax the expected uh impact on a potential homeowner in district one is including the both both types of taxes is approximately one thousand five hundred dollars per year and in district two the potential impact is a little bit less than one thousand eight hundred dollars per year both districts have requested uh a potential total general obligation bond authorization of 400 million dollars and in their applications they provide lists of infrastructure and estimates of costs on how that money will be spent at this time i'd like to be available for questions um the the action on october 5th again three resolutions following formation if approved the mayor and council has been is the proposed board of directors of each of these new potential communities facilities districts and so following steps if formed uh the board of directors of these two districts we would schedule a first meeting at some point after to appoint officers call the elections as requested in the applications and get the districts up and running okay any questions braden i was not going to go first this time but i certainly could um i just want to clarify for the public as well um that this that bonding the 400 million dollars for both sides and doing that with the property tax that will happen in this development allows growth to pay for itself so our residents who live in current apache junction do not have a property tax put on by the city now we have county and other things but not by the city um so this new growth is paying for itself that there are going to be different tax rates even in amongst the two districts than there would be in northern apache junction um so really just wanted to more or less clarify that point correct only potential residents living within either of these two districts would have the cfd tax property taxes that i described in addition a potential resident will receive a variety of disclosures in their consideration of purchasing a home that they would sign you know should they so choose to buy a home in either of the districts gail and this is just the typical formation of any annexation is that correct there's really nothing extraordinarily unique about what's happening correct no okay robert no no the only question i ever had was that these new homes they'll in their own area they'll have their own cfds just like we do up here for water and sewer but what we have now won't apply to them correct they won't be involved in our sewer or water that we yeah i'll i'll defer to uh staff so be honest they may not be within the boundaries of water but you want to do it joel now those two cfds that we current that are in the city walk fed and smug flood so superstition mountain community facilities district and water utility community facilities district yes those are the service providers and yes they will have to people that buy houses down there would have to pay fees to both of them for service so yes these are not two new cfds that totally take over that process no no these cfds are financing mechanisms so that the developer recoups certain funds for infrastructure okay krista do you have anything no questions or comments your honor all right well thank you thank you zach thank you thanks for coming in that's it your honor thank you all right so now i'll read the the resolution supporting resolution copper equalization payment use in the superstition full hills area matt and mr mayor members of the council matt busby assistant city manager this item is very simple it's for your consideration tomorrow evening pinal county has already adopted a similar resolution and salt the superstition area land trust has been working on that with them the the resolution is is simply with support to keep the monies that resolution copper has to pay into the national forest service region 3 southwest area to keep that more local instead of that broader bucket of money to keep it here to preserve some of the lands that are currently state land if the opportunity was to come in the future to to auction those lands for uh conservation purposes these are the main areas that salt is proposing this doesn't um hardwire anything in it doesn't guarantee anything but it's showing support for that concept and like i said pinal county adopted it and salt has asked you as the mayor and city council to consider this as well so it kind of leads this it we've we've adopted resolutions in the past in support of resolution copper if there ever was that exchange or land exchange with the federal government this resolution is a support of hey those proceeds let's reinvest those in an area near or around this proposed reserve preserve okay anyone else have any questions on this i will note that we put it on your consent item so for tomorrow evening so if if someone wanted to discuss it more a council member could could do that pull that from the consent item i know it's something that a lot of people have wanted to do for many years and of course this is state land which would still have to be purchased and brought into this protection plan okay i will adjourn our meeting thank you