
Show Low Council Approves $60 Million Sports and Events Center Financing on Rare 4-3 Split, Passing Apartment Zoning Amendment Unanimously
Show Low City Council approved a 66-unit apartment zoning amendment (Ordinance 2026-06) and authorized $60 million Sports and Events Center financing via excise tax obligations, with the latter passing on a controversial 4-3 split vote amid public and council concerns about debt levels.
Show Low Council Approves $60 Million Sports and Events Center Financing on Rare 4-3 Split, Passing Apartment Zoning Amendment Unanimously
Show Low City Council held a contentious meeting on October 28, 2026, approving an eight-unit apartment density increase on North Worth Avenue and authorizing $60 million in excise tax revenue obligations for a Sports and Events Center—the latter decision fracturing the council 4-3 and prompting public concern that debt would triple the city's long-term financial burden without voter input.
The split vote on Resolution R-2026-25 marked a departure from Show Low's consensus-driven recent history and underscored genuine apprehension among at least one council member about legal risk and the city's process for committing to major long-term debt.
Key Speeches
"I'm worried that we just created a significant liability for the city with not getting legal advice and I think that it's very irresponsible that we move forward without vetting out there. I don't see the urgency and so I don't understand why we would move forward with this type of expenditure without consulting our attorneys when there's significant risks." — Unnamed Council Member, voting against Resolution R-2026-25
"I want to first thank you, Mayor, for the last time I spoke here a couple of months ago to work with Justin and Morgan on the context and the background of this particular project...The scope of it is $60 million. It's a lot of money for this community...it essentially triples the debt, you know, for what this city has lived under for over two decades...even though it's not legally required...I would suggest for community support and political support a special election in order to get the city's citizen support for this project." — Peter Wolf, resident, 2040 East Bluff Ridge Road
Timeline
Apartment Zoning Amendment (Ordinance 2026-06):
- Planning and Zoning Commission action: October 13, 2026; voted 4-0 to approve zone change from 58 units to 66 units (Commissioners McGregor, Schneff, and Derik Whipple absent).
- Applicant presentation: Staff (identified as "Mr. Turgascus") reviewed project history: originally proposed as 58 units in nine buildings; Phase 1 complete with four buildings and 32 units; Phase 2 requests eight-unit increase and reduction from five to four buildings by merging two northern buildings into single 16-unit structure. Buildings setback 50 feet west, 22 feet south, 27 feet east, 115 feet north. Neighborhood meeting September 9, 2026 had zero attendance.
- Public comment: None during public hearing.
- Council discussion: Councilmember Brandt Clark noted he was on Planning & Zoning when project was originally proposed and praised the updated design. Another council member voiced support for one-bedroom apartments as meeting community need.
- Vote: Unanimous approval of Ordinance 2026-06.
Sports and Events Center Financing (Resolution R-2026-25):
- Staff presentation: CFO and representatives from Stiefel and bond counsel Paul Gales (Greenberg-Trorig) reviewed 20-year financing term (facility estimated 30-year useful life). Financing structured via 4th Excise Tax Purchase Agreement and 4th Excise Tax Trust Agreement, secured by excise tax revenues and state shared revenues. Underwriter: Stiefel-Nicholas Company, Inc.
- Council questioning: At least one council member requested executive session with legal counsel to address unspecified legal concerns but noted such session could not occur the same night.
- Public comment: Peter Wolf expressed concern about $60 million scope, risk of cost overruns, and warned financing would triple city's existing debt from 20-year obligations. Recommended special election for voter support, despite noting it is not legally required. Acknowledged city's strong balance sheet but urged caution.
- Council discussion: Motion presented without executive session. One council member again raised objection, citing failure to obtain legal counsel and describing the approach as irresponsible.
- Vote: Passed 4-3 (specific names of voting members not stated in transcript). One council member stated opposition on record afterward, citing legal and fiscal risk concerns.
Water Main Replacement (Flores and North Drive Project):
- Staff recommendation: Mr. Hampson (or Chris's proxy) presented bid tabulation for approximately 7,800 linear feet of 8-inch PVC water main, fire hydrants, pavement replacement. Engineer estimate: $1,023,100. Four bids received.
- Vote: Unanimously approved award to Apache Underground and Excavating LLC for $899,223.
Opposition
Resolution R-2026-25 (Sports and Events Center Financing):
- Number of speakers against: 1 public commenter (Peter Wolf); at least 1 council member opposed.
- Main concerns:
- $60 million scope represents significant financial burden for the community.
- Risk of cost overruns and unforeseen circumstances driving project costs higher.
- Financing triples city's debt from existing obligations accumulated over 20-year period.
- Lack of voter approval despite recommendation for special election.
- Absence of legal counsel review prior to authorization; described as irresponsible.
- No urgency justifying commitment without legal vetting of potential liabilities.
- Opportunity cost relative to competing community interests.
- Most compelling arguments: Peter Wolf's framing of debt tripling as a structural shift in city's financial obligation profile, coupled with council member's assertion that signing $60 million commitment without attorney review creates unexamined legal liability.
- Organized groups: None identified.
Support
Ordinance 2026-06 (Apartment Zoning Amendment):
- Number of speakers in favor: 0 public speakers; 2 council members volunteered remarks.
- Main points:
- Councilmember clarified he was present during original Planning & Zoning review and praised final design.
- One-bedroom apartments identified as filling community housing need.
- Project consolidation (two buildings merged into one) viewed as cleanup/improvement over original proposal.
- Council unanimity: All council members present voted yes; no opposition recorded.
Resolution R-2026-25 (Sports and Events Center Financing):
- Number of speakers in favor: 0 public speakers; 4 council members voted yes (names not differentiated in transcript).
- Rationale for approval: Not articulated in transcript; council simply moved to adopt resolution and voted.
Project Details
Ordinance 2026-06: North Worth Avenue Apartment Density Increase
- Case number: Ordinance 2026-06
- Applicant / developer: Michael Raymond Kafer Jr., Ashley Nicole Dickinson, and Michael Dallas Dickinson (listed as applicants; developer name not separately stated in zoning discussion)
- Attorney: Not stated in transcript
- Location / address: 700 and 760 North Worth Avenue, Show Low, Arizona
- APN: 2104-031-033-042-044-032A, 037A, 039A, 045A, 046A, 049A, 050A
- Current zoning → Proposed zoning: 58 units → 66 units (8-unit increase); other zoning conditions from Ordinance 2021-07 unchanged
- Density / units / square footage: 66 total units (Phase 1: 32 units in 4 buildings, complete; Phase 2: 34 units in 4 buildings, including single merged 16-unit building)
- Changes from previous version: Two northern buildings merged into single 16-unit structure; reduction from five buildings to four buildings in Phase 2; building setbacks: 50 feet west, 22 feet south, 27 feet east, 115 feet north.
Resolution R-2026-25: Show Low Sports and Events Center Excise Tax Financing
- Resolution number: R-2026-25
- Financing amount: $60 million
- Financing term: 20 years (building estimated useful life 30 years, allowing 10-year buffer for repairs and maintenance before retirement of debt)
- Financing structure: 4th Excise Tax Purchase Agreement and 4th Excise Tax Trust Agreement
- Revenue pledged: City excise tax revenues and state shared revenues
- Underwriter: Stiefel-Nicholas Company, Inc.
- Bond counsel: Paul Gales, Greenberg-Trorig
- Additional debt representatives mentioned: Reeder and Jack Leeper (Stiefel representatives)
Water Main Replacement: Flores and North Drive Project
- City project number: 7602670
- Scope: Approximately 7,800 linear feet of 8-inch PVC water main, fire hydrants, pavement replacement, and related improvements
- Budget: $1.4 million (FY2027 carryover CIP)
- Engineer estimate: $1,023,100
- Award recipient: Apache Underground and Excavating LLC
- Award amount: $899,223 (not to exceed)
- Competing bids: Central Arizona Civil Construction, $1,161,571; BW Construction LLC, $1,189,872.40; Pronghorn Services LLC, $1,484,449
- Contract type: City standard contract
Vote Breakdown
Ordinance 2026-06 (North Worth Avenue Apartment Zoning):
- Final: Unanimous
- Yes: All council members present
- No: None
- Abstentions / absences: None noted
Resolution R-2026-25 (Sports and Events Center Financing):
- Final: 4-3
- Yes: 4 council members (names not stated in transcript)
- No: 1 council member (name not stated; member subsequently stated opposition on record)
- Abstentions / absences: None noted
- Note: One council member voted against; another appears to have abstained or been absent (total council membership not explicitly stated, though at least 7 present based on context)
Water Main Replacement (Flores and North Drive Project):
- Final: Unanimous
- Yes: All council members present
- No: None
- Abstentions / absences: None noted
Outcome & Next Steps
Ordinance 2026-06: Adopted unanimously. Zoning amendment increasing apartment units from 58 to 66 on North Worth Avenue properties now approved. Phase 2 will proceed with merged 16-unit building and updated setbacks. No conditions or continuances noted.
Resolution R-2026-25: Adopted 4-3. City authorized to issue $60 million in excise tax revenue obligations for Sports and Events Center. Stiefel-Nicholas Company, Inc. designated as underwriter. Bond counsel Paul Gales (Greenberg-Trorig) to finalize documentation. Mayor, City Manager, Deputy City Manager, and designated representatives authorized to execute necessary documents. One council member voted against, citing lack of legal counsel review. Council later voted unanimously to move to executive session at future date (implicit: to address legal concerns), but specific session date not stated in transcript.
Water Main Replacement: Contract awarded to Apache Underground and Excavating LLC for $899,223 (not to exceed). Project to furnish labor, materials, traffic control for installation of approximately 7,800 linear feet of 8-inch PVC water main, fire hydrants, and pavement replacement on Flores and North Drive corridors. Completion timeline not stated in transcript.
Controversies & Context
The Sports and Events Center financing vote represents a historically rare council split for Show Low. Over the preceding 20+ years, the city has accumulated debt through excise tax obligations; the $60 million commitment would triple that existing burden. Peter Wolf, a resident and apparent advocate for fiscal transparency, publicly recommended a special election to secure voter input, emphasizing that while the city's balance sheet is currently strong, the magnitude of the commitment—and the risk of cost overruns—warranted explicit community endorsement. Wolf explicitly noted that such an election is not legally required, but framed it as a matter of political and community support.
One council member (name withheld in transcript) voted against the resolution and subsequently voiced concern on the record that the council had "created a significant liability for the city with not getting legal advice" and described proceeding without attorney vetting as "very irresponsible" given "significant risks." This council member requested an executive session with the county attorney or city legal counsel to address unspecified legal aspects of the financing but noted such a session could not occur the same night. The council proceeded to vote without delaying or moving to executive session, resulting in the 4-3 split. The council later voted unanimously to go into executive session at a future date—a procedural move that implicitly acknowledged unresolved legal questions but deferred their resolution.
The absence of a named legal opinion or formal attorney sign-off before authorizing a $60 million debt instrument stands in contrast to standard municipal finance practice and likely contributed to the council member's stated concerns. The narrative arc suggests internal governance friction over process—specifically whether a commitment of this magnitude should be vetted by legal counsel before a vote—rather than disagreement on the Sports and Events Center project itself.
Duration
- Ordinance 2026-06 discussion: ~10–15 minutes (estimated; formal timing not stated)
- Resolution R-2026-25 discussion and vote: ~20–25 minutes (including public comment by Peter Wolf and council dialogue)
- Water Main Replacement discussion and vote: ~5 minutes
- Total meeting: Approximately 90–120 minutes (full timestamp data not provided in transcript; meeting included opening ceremonies, retirement recognition, Chamber of Commerce presentation, consent calendar, and other items not detailed here)
Other Notable Items
Misfits Bar No. 6 Liquor License: City Council unanimously approved liquor license application for Misfits Bar (480 West Dusa Clubs), submitted by Michael Raymond Kafer Jr., Ashley Nicole Dickinson, and Michael Dallas Dickinson. Show Low Police Department background check found nothing amiss; Arizona Department of Liquor Licenses and Control to conduct final review.
Kat Salazar Retirement Recognition: Retired communications manager for Show Low Regional Communications Center (five years of service, June 2021–August 2026; 26 years total in dispatch). Presented with quincentennial dispatch badge per law enforcement tradition. Mayor and Chief Westover praised her mentorship and advocacy; Salazar thanked the city and council for support.
Show Low Chamber of Commerce Report: Executive Director reported 400+ members (up from 150 four years prior), 11% operating margin (vs. typical nonprofit 0–5%), $250–$1,000 tiered membership model introduced January 1, 2026 (25% of members upgraded). Relocation packet requests up 44% (45 relocations prior year, 69 this year); website traffic 28,000+ visits through August, 1 million social media impressions. Upcoming events: annual awards gala, Sweetheart Soiree (February 13), Rockin' the Rim 2027. Goal: reach 500 members by 2027.
View source transcript ▼
Source: Show Low City Council Special Meeting for 10-28-26 2026-10-28 14:05 — October 28, 2026. Auto-generated YouTube transcript; may contain transcription errors.
This is a production of the network director of the year of 2016 and 2017 of 2002. This is a production of Iowa Public Television. By the year 2000 and 2015, the city council督cs are closed. Include a lot of that! The BPA is part of the network and it is very powerful. This will work with the region of Iowa Public Television. The City council meeting, Arizona. Proprietary. Yeah. I'd like to call this meeting to order. Show that all council members are present.
This time I've asked Councilman Adams to lead us in the invocation followed by the pledge by the vice mayor. If you'd all like to stand and join us, you may do so. Father in heaven, we humbly come before you this beautiful afternoon. We are grateful that we could gather together as a council and citizens. This beautiful community. We pray that I hear it may be here as we over and discuss and topics that will better help our community. We pray that they'll be with us and all that we do.
We're grateful for our staff and we ask you to please be with them and help them and we say these things name our Savior. Jesus Christ, amen. Please join me in the Pledge of Allegiance. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands, one nation, under God, indivisible, with liberty and justice for all. Thank you, Vice Mayor and Councilman Adams. Next item on the agenda is a call to the public. City Attorney.
Any citizen desiring to speak on a matter that is within the jurisdiction of the city council may do so at this time. Comments shall be limited to three minutes in person and shall be addressed to the city council as a whole and not to any individual council member. Issues raised shall be limited to those within the jurisdiction of city council presented to the Arizona Open Meeting Law. The city council cannot discuss any items presented at this time.
At the conclusion of the call to the public, individual city council members may respond to criticism made by those who have spoken, ask staff to review a matter, and ask that a matter be put on a few- We do not have anybody, correct? Okay, next item on the agenda is special events recognition of retired employee, city manager. You doing this one? Chief Westover. Chief. Chief. Somebody. Thank you, Mayor, Vice Mayor, Council.
As you are aware, our communications manager, Kat Salazar, recently retired. I came to Show Low in 2022 and she hadn't quite had a year with us yet. And what I learned, she had over 20 years with Scottsdale's Dispatch Center. City council meeting, Arizona. Proper. I was just super grateful to have her leading our regional communication center. And as you know, we have seven fire departments and four police departments now. So it's a handful.
And the city's blessed us with a beautiful center and amazing technology to effectively communicate with our officers. But Kat was part of the move from our police headquarters over into our communications center. She was part of bringing in new partners into the group. She was a tremendous advocate for us at our ACOP meetings. And do you have 29 years total in dispatch? 26. Okay, sorry. But we're going to miss her. She did a great job mentoring her staff there at the comm center.
And as you know, we've recently named Maria Garvin as our new communications manager at our dispatch center. And we're super grateful to have her.
But we wanted to take a minute to recognize Kat Salazar in her role as our communication manager for five years It says from June 2021 to August 2026 And as part of a law enforcement tradition when somebody actually retires we present them with a badge So we have a quincentennial dispatch badge that we like to give her as well as part of her retirement But congratulations Kat for your service Probably good for us And then I know the mayor going to want you to talk so You don't warn me about that.
Yeah. First of all, I'd like to say thank you for having me here today. I appreciate it. I enjoyed my five years at Xolo immensely. I think I'd get checked up. And I was sorry to leave earlier than I had planned, but some personal obligations that I had to attend to. And whenever I talk to any of my friends who are from other law enforcement agencies, I tell them that Xolo has the absolute best city council.
Mayor, council members, you are so supportive, and I've never seen any agency have as much support as you guys give the the Shiloh Police Department Regional Center, and I wanted to say thank you for that. Thank you for hiring me five years ago. This was an amazing job. I made so many great friends here, and I've loved my time in Shiloh.
We are keeping a house up here, so you'll probably see us around once in a while, but I just want to say thank you so much for having me here, and I appreciate it. I miss you. Yeah, thank you and you know all your all your hard work, Maria has taken over, so she's got some good training, but thank you for everything you've done. You know, when you walked into this position, I thought she's been here forever. I mean she just come right in and took over, so we appreciate everything you've done.
And man, when you retired, you retired. I follow her on social media, she gone and they're going here and there, but congratulations and obviously you're enjoying life and I'm glad you're keeping your house up here because we still need to see your face up here, but thank you for everything you've done for our community. Thank you, Mayor. Thank you. Thank you, Kat. Sure, you get to follow that, sunshine. That's a tough answer.
Next item on the agenda is a presentation by the Scholo Chamber, Executive Director Sunshine. No, I was like, there's no mouse in there. This is going to be weird. All right, Mayor, Council, City staff, thank you for having us. So we are 400 plus members strong now. I started with 150 four years ago on the first.
So these are some of our newest members, Flagstaff Bone & Joint, Apex Electric, Sholo Mattress & More, Mountain Home Health, and we are getting new members every week so we are constantly growing. We've been able to put on some really awesome ribbon cuttings. The turnout's been spectacular with support from the community. We rolled out new membership tiers starting January 1.
We used to just have a flat membership of $250 a year, but we saw that some of our members wanted more social media posts, more access to e-blast, more visibility. So we rolled out tiers January 1st, 2026, ranging from 1,000 all the way down to the regular 250. That way, if anybody wanted to stay at the 250 they've been at for a few years, they can. But if they wanted more visibility, they could go up. Right now we are working on an 11 percent margin, which is incredible.
Most nonprofits operate at zero to five percent, so if we can keep this up through the end of the year. And we have one more fundraiser coming up, and that's our annual gala and awards dinner that is sold out. But we should be in pretty good shape for the year. Membership dues being our biggest point of revenue, and that's because about 25 percent of our membership chose to upgrade to the higher tiers. And about 25 percent of new members choose to upgrade to the higher tiers as well.
At the Chamber, we work to promote local business, connect people and resources, support business needs, and bring the community together. I feel like our membership growth is proof that we've been able to do that.
On the tourism side, we've seen less in-person visitors this This year 1 Our website sees about 28 and this is through August of this year Social media is 1 million But we seen a crazy increase in relocation packets about 44 percent So last year about 45 people came in looking to relocate to our community and this year we at about 69 So lots of people moving here We seeing a big surge from the west coast Chicago and Wisconsin One big tool we have on our Chamber of Commerce website that our members actually have access to and can put all their events on there is our event calendar, and it is the number one most visited thing on our website.
And you can see there all the different members have put their events in. And then we attach a flyer to each one so you can learn more about it. So the scarecrow walks on there right now because that's a popular item. Upcoming events for 26 and 27, we have the annual awards gala. We're doing a Sweetheart Soiree February 13th at Torreon, Rockin' the Rim 2027. And then we haven't decided on the date for the Sholo Biz Expo, but those are our four big events coming up here soon.
We have been able to grow and provide businesses with lunch and learns and different opportunities thanks to our partners, SBDC, Arizona at Work, White Mountain Economic Development, the City of Sholo, of course, White Mountain Business Owners Roundtable, Northland Pioneer College. And I've had several of our neighboring chambers reach out looking for help and assistance and guidance. Lots of new EDs out there. So we've been able to help them.
Our goals for 2027 are to reach 500 members, partner with more businesses for growth in the city of Sholo, and then promote Sholo as a destination to visit. And thank you all very much and for the continued support. Any questions for me? So the walk-in is down, you said by a thousand. Did it get increased by social media? Social media is up, but our walk-in traffic is down.
Which we see a correlation between our younger visitors going through the website and then our older visitors want to walk in. They want paper in hand, they want a city of Sholo map, and they want referrals from a local on where they should eat and what they should do. Good one. Thank you. Thank you, Sunshine. Thank you. Okay, next item on the agenda is our consent calendar. We'll do a proclamation by the mayor proclaiming November 15th through the 21st, 2026 as community fast of compassion.
For those in need week, consideration of non-commercial ground lease with James L. Nesbitt and Noreen T. Nesbitt. Consideration acceptance of South Central Avenue sidewalk. Consideration of award of a construction contract for water sewage tank maintenance job number one. Consideration of award of construction contract for manhole replacement job order contract number S-4. 49-24 consideration of the minutes of the Shoal City Council meeting on October 6, 2026. Councilman Adams.
I'll make a motion to prove the consent calendar. Second by Vice Mayor. All those in favor? Those opposed? Motion passed. You want to read the first one? Hey, Clark. Thank you, Mayor. Whereas community service has always been part of America's as well as Show Low's heritage, and whereas the number of those in need in our area seems to be an ever-growing number, and the people of our community have always shown a sincere desire to help those in need, especially during the holiday season.
And whereas a number of faith-based and other organizations approached the city of Xolo in 2013 with a plan to help those in need in our community, and whereas the city of Xolo embraced this concept out of which was born the community fast of compassion for those in need. And whereas the city of Xolo and its citizens have discovered that the community fast is a very worthwhile cause that has had a huge impact in the lives of many in our community. Now therefore John Leach, Jr.
Mayor on behalf of the Sholo City Council does hereby proclaim November 15th through the 21st, 2026 as Community Fast of Compassion for Those in Need week and urges all citizens of Sholo to come together for the annual Community Fast of Compassion for those in need. Join us in setting aside one day during this week to fast and pray for guidance, grace, and protection for our great city and nation as we address the challenges of our time and the concerns of those in need.
Donate the cost of one or two meals or more if possible from this fast to this worthy cause with donations accepted at Shiloh City Hall National Bank of Arizona Chase Bank Washington Federal Bank and online at shilohcommunityfast And join us in a community celebration on Sunday November 26th at 5 p at the Sholo School District Auditorium Thank you. Thank you, and I believe I'm the only one here for that, so I'll accept this proclamation. I don't think there's anybody else on the board.
Thank you. Just a reminder, what City Clerk just mentioned on November 22nd at the Sholo High School Auditorium at 5 o'clock. That celebration is amazing with all kinds of churches and choirs. High school will be there. I always call it the kickoff to my holiday season, but I've been celebrating all year, apparently. Anyway, thank you guys, but show up on the 22nd. We appreciate all your support in this community.
I'm not sure the amount of money we've raised to date, but I know it's into the millions. It's pretty amazing how this community comes together for people in need. But I think we've all been here long enough that we know that when people are in need, we come in support. There's something to think about moving forward as there's a celebration over in Overguard next Saturday. If you could go to that and help those people out, I know they'd appreciate it. Anyway, thank you.
Next item on the agenda is under new business public hearing and consideration of applications submitted by Michael Raymond Kafer, Jr., Ashley Nicole Dickinson, and Michael Dallas Dickinson for a number six bar and liquor license on behalf of Miss Fitzbar for its location at 480 West Dusa Clubs, Cholo, Arizona. Mrs. Hall. Thank you, Mayor and Council.
Michael Raymond Kafer, Jr., Ashley Nicole Dickison, and Michael Dallas Dickison, representing Misfits Bar, submitted a liquor application for a No. 6 Bar liquor license for its location at 480 West Use of Clubs. As required by state law, the property was posted and no public input was received. The Show Low Police Department conducted a background check on the applicants and found nothing amiss.
The Department of Liquor Licenses and Control conducts its own internal investigation and background checks. Based on the investigator's findings and the City Council's recommendation, the State Liquor Board will decide whether to approve or deny the application. And just a reminder that if City Council chooses to recommend a denial of the application, a motion must state the reasons for the denial. And the applicants are here if there are any questions for them. Thank you.
Before we do that, before I turn it to council, I'll open up for a public hearing. Anybody want to come and speak on this matter? Seeing nobody spreading up here, I'll close the public meeting and turn it back to council for questions or motions. Any questions? Any motions? I move to approve the application submitted by Michael Raymond K.
Virginia, Ashley Nicole Dickeson, and Michael Dallas Dickeson for a number six bar liquor license on behalf of Misfits Bar for its location at 480 West Dusa Club. I got a motion. I'll go ahead and second it. All those in favor? All those opposed, motion passed unanimously.
Next item on the agenda is another public hearing in consideration of ordinance number 2026-06, amending zoning ordinance of city, amending conditions and ordinance number 202107 to allow the additional eight apartment units on property located at 700 and 760 North Worth Avenue described as APN 2104-031-033-042-044-032A, 037A, 039A, 045A, 0456, 049A, and 050A. Wow. Mr. Turgascus. Thank you, Mayor and members of Council.
At its regular meeting of October 13, 2026, the Planning and Zoning Commission voted 4-0. Commissioners McGregor, Schneff, and Whipple absent to approve zone change from 58 units to 66 units. All other zoning conditions from ordinance number 2021-07 would remain unchanged. Originally, the project was proposed to consist of 58 units and 9 buildings. Phase 1 is complete, consisting of four buildings with 32 units.
For Phase 2, the applicant is requesting an increase of 8 units and a decrease to four buildings instead of five. Essentially, they're taking two buildings and combining them for the reduction. The originally proposed two northern buildings will be merged into a single 16-unit building. These two will contain 34 units in total.
These buildings will be set back 50 feet from the west side property line, 22 feet from the south side, 27 feet from the east side, and approximately 115 feet from the north side. The neighborhood meeting was held by the applicant on September 9, 2026. No neighboring property owners attended. Conceptual site plans and the proposed combined fourth building have been submitted for review. Official building plans have been submitted for the first three buildings of phase two.
With that, staff and the applicant are available for questions. This has been scheduled for a public hearing. This time I'll open it up for a public hearing. Anybody want to speak on this matter? Did nobody run? I'll post a public hearing and turn it back to council. I can make a motion. I have a comment also. I think I was on PNZ when we first got this project years ago, and so I'm glad to see this finally.
It looks great, looks better cleaned up and going forward, so I'm excited that it's going to be this new project. So I can go ahead and make a motion. We'll, before you make that motion, I want to add ditto to that. Also, I love the idea of some one-bedroom apartments in there. I think that's well needed in the community, so I appreciate that as well. Councilman Adams. Mayor, real quick, you can read the ordinance. Oh, I'm sorry. Why don't you read the ordinance first? Thank you.
Sorry, Councilman Adams. No. City of Solow ordinance number 2026-06, an ordinance of the Mayor and Council of the City of Solow, Arizona, amending the zoning conditions of ordinance number 2021-07, on assessor parcel Council numbers 210-04-031-033-042-044-032A-037A-039A-045A-046A-049A and 050A. Thank you. Now I'll turn it back to the council. Move to adopt ordinance number 2026-06. Got a motion. Got a second. Aye. Councilman Jed, all those in favor? All those opposed?
Motion passed sheet animously. Next item on the agenda is consideration of award of a construction contract for Flores and North Drive water replacement project number, City of Shoal project number, 760-2670. Mr. Hampson. Good afternoon, Mayor and Council. I'm here in Chris's place. We didn't think you'd notice with our similar haircuts. The city's physical 2027 budget includes a 26 carryover CIP project labeled Siesta floors waterline replacement with a construction budget of 1.4 million.
The scope The scope of the work includes the furnishing and wall labor, materials, traffic control, and incidentals that may be required to install approximately 7,800 linear feet of 8-inch PVC water main, fire hydrants, fouls, and pavement replacement, and other related improvements. The project was designed by city engineering staff with an engineer's estimate of $1,023,100. The project was advertised for bids.
First, statutory requirements, four bids were received, and the four bids meeting the qualifications were as follows. Apache Underground and Excavating LLC, $899,223. Central Arizona Civil Construction Company, $1,161,571. BW Construction LLC, $1,189,872.40. and Pronghorn Services LLC at $1,484,449.00.
Staff recommends a warning construction contract for the Flores and North Drive Waterline replacement project, City of Cholo project number 7602670 to Apache Underground Excaveteen LLC in that amount not to exceed that $899,223.
The city standard contract will be used for the project, And the bid tabulation and the cover page showing the scope of work and location are attached I here for any questions Sir any questions or comments Motions Councilman Jed Move to award the construction contract to the Flores and North Drive Waterline replacement project, say, of project number 7602670 to Apache Underground and Excavating LLC for the amount not to exceed $899,223. Got a motion. Got a second by Councilman Hatch.
All those in favor? All those opposed? Motion passed unanimously. Okay. Next item on the agenda is consideration of possible adoption of resolution number R-2026-25, approving for sale and execution and delivery of excise tax revenue obligations in one or more series, Proven the form of authorizing the execution and delivery of necessary agreements, instruments, and documents, and delegating authority to determine certain matters with respect to the foregoing. Mr. Johnson.
Thank you, Mayor and Council. Wasn't that fun to read, Mayor? Awesome. Yeah. On September 16, 2026, at a council study session, representatives from Stiefel and city staff reviewed the bond issuance process for the Show Low Sports and Events Center. Staff proposed a 20-year financing term primarily based on the anticipated useful life of the Sports and Events Center.
It was noted that staff estimated the building would have an approximate 30-year useful life and believed a 20-year term would allow the city to retire debt, approximately 10 years before the anticipated end of the building's useful life. This approach would allow the city to focus more heavily on repairs and maintenance as the facility aged. Staff emphasized that the final financing term remained a decision for the city council.
CFO also reviewed the current interest rates, the credit rating process, and estimated debt service schedule. Since the meeting, staff has been working with its legal and financial professionals to establish the financing necessary for the Show Low Sports and Events Center. The proposed financing utilizes excise tax revenue obligations structured through a purchase agreement and a trust agreement.
The proposed obligations will be secured by a pledge of the city's excise tax revenues and state shared revenues, subject to the terms of the financing agreements and the existing parity obligations. Under the proposed arrangement, the city would enter into a fourth excise tax purchase agreement with the trustee, which would facilitate the financing.
The corresponding fourth excise tax trust agreement establishes the framework for issuance and administration of the obligations and the distribution of payments to the obligation holders. Financing documents identify Stiefel-Nicholas Company, Inc. as the proposed underwriter for the negotiated sale of the obligations. The final financing terms will be determined by the City's authorized representatives within the parameters established by the adopted resolution.
Staff recommends that the City Council adopt resolution number R-2026-25, approving the 4th Excise Tax Purchase Agreement, 4th excise tax trust agreement, continuing disclosure undertaking, and related financing documents. Authorizing the sale and issuance of excise tax revenue obligations for the City of Cholo's Sports and Events Center. Delegating authority to the designated City representatives to finalize the financing terms within the parameters established by the resolution.
And authorizing the necessary actions to complete the financing. Staffs available for questions, We also have bond counsel from Greenberg-Trorig, Mr. Paul Gales here, and two representatives from Steve Fullmark Reeder and Jack Leeper. Thanks, sir. Any questions? There, I have a question. So I have a question for our legal counsel, and I think that it would be advantageous to do it in an executive session.
We have the ability to move into executive session the way this is agendized to get legal counsel from our county attorney. No City council meeting Arizona Proper nouns We can get legal counsel on questions on if we can't go into executive session and get it right now. Does anybody? I'm not moving. I guess I'm saying I think we should. I have genuine concern. It's a legal aspect of this, and so I think that I would need to go and we would need to go into executive session to get that legal.
Does council want to go into executive session later date obviously we can't go into it tonight. You want to table this or you want to move forward? Before I bring it to council, go ahead. I'm comfortable moving into executive session later if need be. Or just table this until we can go into executive session later. That's okay. Before we go any further, before I bring it to the council, I can't read your last name, Peter, so I Wolf, you want to make a comment on this matter?
You have to come to the podium, state your name and address for the record. So hi there, my name is Peter Wolf, I'm a resident at 2040 East Bluff Ridge Road here in Cholo. I want to first thank you, Mayor, for the last time I spoke here a couple of months ago to work with Justin and Morgan on, you know, you know, the context and the background of this particular project. So they were very helpful and transparent in that regard. So, I don't know if we can handle that flow.
Then I understand there's going to be a maximum bid price to be considered in the near future. There's always a risk that, you know, unforeseen circumstances happen where the project will go up. And the scope of it is $60 million. It's a lot of money for this community. So there's an opportunity cost there relative to other competing, you know, community interests and whatnot.
And ultimately, I think what I'd like to suggest is that, you know, this debt, though the balance sheet here appears to be strong and whatnot, and I know Stiefel as a very reputable bank, But it essentially triples the debt, you know, for what this city has lived under for over two decades, 20 years or so.
So even though it's not legally required, and even though today you're in a good financial position, I would suggest as basically for community support and political support that even though, again, not legally required, Hold, you know, swiftly if you're able to, a special election in order to get, you know, the city's citizen support for this project. Thank you. Thank you. I'm not sure we have to get with our legal counsel too, so thank you. Appreciate that.
All right, bring it back to the council for either a motion to extend this to another meeting where we can go on executive session, Or a motion for the item D as presented. We can either go to executive session or we can move to approve this. You can move to make a motion to extend this until we can go to executive session. You can't go on executive session tonight to talk about it. Or you can make a motion to present it as read, as presented. Make the motion presented as red.
Read the motion, please.
Move to adopt resolution R2026-25, approving the financing documents and authorizing issuance and sale of excise tax for new obligations to finance the Show Low Sports and Events Center including the fourth excise tax agreement the fourth excise tax trust agreement and related continuing disclosure documents and authorizing the mayor city manager deputy city manager and other designated representatives to execute necessary documents and take all actions required to complete financing subject to the terms and conditions of the resolution.
Got a motion, I need a second. Got a second by Councilman Adams. All those in favor of the motion? All those opposed? Pass. State my opposition. Real quick, pass 4-3. Go ahead. Okay, the reason why I wanted to go into executive session was because I'm worried that we just created a significant liability for the city with not getting legal advice and I think that it's very irresponsible that we move forward without vetting out there.
I don't see the urgency and so I don't understand why we would move forward with this type of expenditure without consulting our attorneys when there's significant risks Discuss the topics associated with this so that's why I voted against it. Any other comments? Next item on the agenda, summary of current events. Anybody down there? Cougars play Payson Friday, big game. Might determine state, all that. Ready. Cougars clean, Cougar.
The only thing I have is I brought up earlier about the neighboring community got hit with a tornado apparently and they're having an event. This coming, no not this coming Saturday, I'm sorry, I did say this coming Saturday. It's the following Saturday. I'm not sure the location. Does anybody really know? Okay, that's kind of what I thought too. But anyway, if there's anything you want to do to support them, donate anything to them, they'd certainly appreciate it.
I know there's a lot of our people in our community that reached out to them and went over there and supported them. So keep them people in your prayers. I know, I believe our county supervisor went over there and said, And also one of our representative, Black woman over there, to help them out. So, anyway, keep them people in your prayers. We appreciate it. City manager. Thank you, Mayor.
Just a couple things to remind people of this weekend with our Halloween trunk retreat at Toyota this Saturday from 3 to 8. Also on Saturday, the Turn of the Car Community Center is doing an event from 4 to 8 at the Community Center for Families. And then we have our scarecrow walk going on right now, so anybody that wants to check out the scarecrows in the meadow and vote on your favorite one, that would be great. Happy Halloween. Schedule of meetings.
To remind council our next meeting is on November 17th. Anybody need seconds? At this time, I'll look for a motion to go into executive session. Motion by the vice mayor, seconded by Councilman Adam. All those in favor? Opposed? Motion passed. Thank you guys for coming. Executive session. The City council meeting, Arizona. Pricing.