Tempe delays Tempe Market Station 310-unit luxury apartments to November 12 after 262-resident petition
TEMPE, ARIZONA — October 30, 2020

Tempe delays Tempe Market Station 310-unit luxury apartments to November 12 after 262-resident petition

Tempe City Council continued the controversial Tempe Market Station 310-unit luxury apartment development to November 12 after 262 residents petitioned against it, citing inadequate affordable housing and misalignment with Smith Industrial Innovation Hub vision, despite developer's last-minute $125,000 contribution offer.


Council Splits 4–3 on Tempe Market Station, Deferring 310-Unit Luxury Complex to November 12 Amid Rare Flood of Public Opposition

Tempe City Council narrowly voted to continue the second and final hearing on Tempe Market Station—a five-story, 310-unit luxury apartment development proposed for Rio Salado Parkway—to November 12, 2020, after facing the most organized and numerically significant public opposition to a land-use proposal in recent council memory. The 4–3 vote split the council along lines of affordable housing policy and governance process, with Council Members Kuby and Jennifer Adams arguing for continuance to allow legal staff time to review a voluntary contribution agreement presented just 45 minutes before the meeting, and Randy Keating and Council Member Navarro urging acceptance of the developer's offer to lock in nearly $325,000 in contributions to affordable housing funds.

At the center of the dispute lay not a straightforward yes-or-no on the project, but rather competing visions of how the city should exercise leverage over private development to advance affordable housing goals, whether governance processes had collapsed when material agreements landed on council desks minutes before votes, and whether a market-rate luxury complex aligned with the Smith Industrial Innovation Hub's recently adopted vision for design-led, community-oriented development.

Key Speeches

"I feel like it's been really little time for us to digest what is being proposed and also to hear reactions from the community because as we heard from carla tonight sorry carla but um i just thought it was important to hear those names i think it's important in interested transparency that we uh that we get more reactions from the community this has been a very quick process he just presented to us two weeks ago so i want to call for a continuance to wait until november 12th." — Councilmember Kuby, initiating the continuance motion.

"We gave that contribution voluntarily so we could get this matter approved tonight so i am somewhat disadvantaged of course because tremble crow isn't sitting with me here in the room but my instructions from them headed into this hearing were very clear that is what we were hoping to accomplish with this again voluntary contribution." — Wendy Riddell, attorney for Barry Riddell LLC, after the executive session, warning that the $125,000 offer was contingent on tonight's approval.

"I will be voting no on the continuance and here's the reason why is you know at the very least we're walking away from a stipulation that would increase our affordable housing trust fund uh by three almost three times and as much as we talk about affordable housing and you know for years we've barely had a trust fund whatsoever um you know that's that in of itself is a significant improvement on what we currently have." — Vice Mayor Randy Keating, defending his opposition to the continuance.

"I don't understand the haste and the rush again if i were representing the developer i'd want there to be haze in a rush but you know we need to take a step back and i want our attorneys to be able to look at this carefully." — Councilmember Kuby, echoing concerns about process.

"We have a vision for this area it's called the smith industrial innovation hub lost opportunities affordable workforce housing developers have been awarded much and have given back little awards of tax relief meager contributions to the affordable housing trust fund and minimal public art amenities have been at the expense of tempe taxpayers particularly those struggling with limited finances." — Ron Tapscott (read from written statement), summarizing the 262-resident petition's core arguments.

Timeline

Opposition

Support

Project Details

Vote Breakdown

Outcome & Next Steps

The council voted 4–3 to continue Item 6c2 (the second and final public hearing and vote on Tempe Market Station) to the next regular scheduled council meeting, which is Thursday, November 12, 2020.

The continuance motion did not approve or reject the project; it deferred the hearing. When the council reconvenes on November 12, a full second reading and public hearing will be held again, and a vote will be taken.

Conditions and expectations for November 12:

Controversies & Context

Smith Industrial Innovation Hub and "grit" vision: The Smith Hub general plan amendment was adopted just two weeks before this hearing (October 15, 2020). The planning documents that accompanied it, prepared with input from consultants (Cushman Wakefield, ISL, and others), emphasized design principles of "grit"—an industrial-chic aesthetic using exposed brick, metal, and concrete—pocket parks, public art, and mixed-use activation meant to attract creative workers and entrepreneurs. The vision was deliberately crafted to differentiate the Smith Hub from typical suburban commercial corridors.

Deborah Zajac testified that the Tempe Market Station project, while not "ugly," did not embody these principles. She characterized it as indistinguishable from "stucco developments you've seen built everywhere around the valley." Councilmember Arredondo Savage, in her closing remarks, echoed this concern: "I could find that anywhere in the city of Tempe it doesn't scream or shout to me that this is something unique and different and innovative." She stated: "I have to take some responsibility the city does that developer does I think to um not take into consideration the smith innovation hub and what our vision is you know a mistake."

This suggests that future applicants for the Smith Hub may face pressure to adopt more distinctive design languages—a policy clarification that could emerge from the November 12 reconsideration.

Affordable housing trust fund depletion and policy conflict: The city's affordable housing trust fund had a balance of zero dollars, while the Tempe Coalition for Affordable Housing (a separate nonprofit partner) had approximately $50,000. This critical shortfall animated Randy Keating opposition to the continuance: accepting $125,000 in voluntary funds, even from a market-rate project, would allow the city to begin purchasing land or properties under its own control, rather than relying on negotiated percentages and deed restrictions on private projects.

However, Councilmember Kuby and others raised a policy concern: if the city is to systematically reallocate development fees (normally general fund revenue) into the affordable housing fund, that decision should be made through a broader council discussion and community input process, not embedded in project-specific negotiations. They worried that allowing development fee reallocation to appear as a "developer concession" when it is actually city revenue creates an illusion of private-sector generosity while depleting funds available for other city services (police, public works, parks, etc.).

Pattern of minimal affordable housing contributions: Ron Tapscott's letter documented a pattern dating back at least to April 2019:

Tapscott proposed a 10% affordability formula (mirroring Phoenix's approach) and did detailed math: 31 units (10% of 310) at market rate rents ($1,500/month for studios) would gross $540,000/year—far exceeding the $125,000 offer. He suggested the city establish a mathematical formula to avoid what he called "paltry and subjective inputs" to date.

Governance and transparency: The fact that a material agreement was presented 45 minutes before the meeting troubled multiple council members, regardless of whether they ultimately voted for or against the continuance. This raised questions about:

Corey D Woods' framing—that accepting the $125,000 offer represented "real money" to begin building the city's own affordable housing portfolio—implicitly acknowledged that prior negotiations had yielded nearly nothing, raising a question about why the developer's offer appeared "generous" when it was substantially below market-rate project contributions in peer cities like Phoenix.

State preemption concerns (implicit): No speakers explicitly invoked Arizona state preemption law (A.R.S. § 34-226, which limits cities' ability to impose affordable housing requirements on private projects), but the undercurrent of the debate suggested awareness that the city's leverage over market-rate projects is limited. Councilmember Navarro stated bluntly: "It's a tough deal when we're talking on private property and we're talking about property that's not asking for the city for anything."

Community impact: The 262-resident petition signaled that Tempe residents—particularly service workers, fixed-income earners, and ASU students—perceive the city's residential market as increasingly out of reach. The ZIP code income data cited by Chapman and Tapscott ($35,682–$53,475 median household income) starkly illustrated that a $1,500–$1,700/month studio is accessible only to households in the top quartile or higher of local income distribution. For a city that has invested heavily in branding itself as a college town and a hub for young professionals, the sight of luxury market-rate housing—especially in a symbolically important hub like Smith—was read as a sign that the city was choosing density over affordability.

Duration

Other Notable Items

Tempe Fire Medical Rescue Cancer Screening Grant (Item 5b2): Unanimously approved 7–0. Council awarded a one-year contract (with four one-year renewal options) to Vincere Cancer Center for cancer screening of firefighters. Fire Chief Greg Reese testified that firefighters face a 9% increased cancer incidence and 14% increased cancer mortality compared to the general population, due to exposure to carcinogens including benzene, diesel exhaust, asbestos, and formaldehyde. The grant was dedicated to fallen firefighter Tommy Arriaga. Councilmember Kuby pulled the item to highlight occupational health risks and to amplify the fire department's message about cancer prevention.

Dr. Shireen Lerner Appointed to Arizona Independent Redistricting Commission: Councilmember Kuby announced that Dr. Lerner, a longtime Tempe resident, volunteer, and current vice chair of the Parks and Recreation Committee, chair of the Desert Conservation Commission, and member of the Public Safety Task Force and Citizens Review Commission, had been appointed to the Arizona Independent Redistricting Commission by House Speaker Charlene Fernandez. Multiple council members congratulated her; Randy Keating noted her role on the Public Safety Task Force and other commissions.

Preserve Ordinance Amendment (Item 6c3): Unanimously approved 7–0. Technical amendment to the city code relating to preserve management, adding civil penalty provisions and enforcement procedures (Sections 23-110 through 23-134).

CARES Act Funding Amendment (Item 6c4): Unanimously approved 7–0. Amendment to the fiscal year 2019–2020 annual action plan to allocate $1.085 million in Community Development Block Grant coronavirus funds, $1.791 million in Emergency Solutions Grant Round 2 funds, and $1.902 million in Community Development Block Grant Round 3 funds. Additional reallocation of $442,000 in 2019 HOME funds and 2020 HOME program income to tenant-based rental assistance to address urgent need for rental housing assistance.

View source transcript ▼

Source: Council Regular Meeting October 30 — October 30, 2020. Auto-generated YouTube transcript; may contain transcription errors.

all right welcome to the tempe city council regular council meeting uh for thursday october 29th the time is now 602 pm due to cons concerns about covet 19 exposure the city has implemented measures to protect our community including the closing of council chambers and limiting public attendance to electronic means only members of the public may view the live meeting proceedings on tempe channel 11 or attend the meeting virtually through cisco webex events by visiting www.tempe.gov clerk for more information item number one of the agenda is moment of silence we're going to take just a quick moment and have a moment of silence thank you very much next up item number two pledge of allegiance i'm gonna go ahead and begin i pledge allegiance to the flag of the united states of america america and to the republic for which it stands one nation under god indivisible with physical with liberty and justice for all all right next up we have item number three meeting minutes i'm going to be assisted tonight by councilmember garland uh first of all item number 3a meeting minutes approval of city council meeting minutes we don't have any uh which next up leads us to item 3b councilmember garland thank you mayor i would like to make a motion to accept the meeting minutes from our boards and commissions and committees items three b one through nine randy we're too fast all right all right it's it's been moved to the acceptance of board commission and committee many minutes items three b one through nine moved by council member garland and seconded by vice mayor keating uh any comments or questions all right all this favor please say hi hi hi actually i'll go wrong talk this is for virtual uh councilmember navarro hi councilmember cubie aye councilmember garland aye vice ver keating yes councilmember arredondo savage hi councilmember adams and i vote i as well thank you very much item 3b passes unanimously next up we've got item 4 reports and announcements mayor's reports and announcements i do not have any uh mr city manager do you have any announcements thank you mr mayor members of council uh just very briefly i wanted to congratulate frank fuerte from our municipal utilities department for his almost 31-year career with the city of tempe frank retired today had the pleasure of attending his retirement ceremony he has worked uh successfully and has the respect of his of his co-workers uh throughout the city and all who have known him and we are going to miss him but we wish him all the best in retirement thank you mr mayor that's all i have thank you mr city manager all right next up item five is the consent agenda all items listed on the consent agenda will be considered as a group and will be enacted with one motion by the city council unless an item is removed for separate consideration members of the public may remove public hearing items for separate consideration public hearing items are designated by an asterisk council members may remove any item for separate consideration or to declare a conflict of interest if a council member would like to declare a conflict at this time the city clerk will provide the council member with the disclosure form the consent agenda as written here is miscellaneous items a one through five a seven awards of business contracts items five b one through five b seven and resolutions item five c one through five c eight any agenda item that's marked with an asterisk is a public hearing item and can be removed by a member of the public for separate consideration council also if you've got any items uh please let me know and i can remove those right now mr mayor i'd like to remove 5b2 is that one of the ones yes uh councilmember qb pi b2 thank you uh any other member of council any other items they'd like removed for separate consideration okay hearing none i'm going to go ahead and ask for a motion to approve the consent agenda with the exception of item 5v2 which has been pulled for separate consideration so let's go ahead and ask for a motion second thank you very much all right uh vice president has moved uh kepler's second i'm gonna go with the roll call vote uh counselor tomorrow hi councilmember cubie hi sorry no problem uh councilmember garland bye mayor vice player keating yes council member arredondo savage hi councilmember adams hi and i vote i as well so the consent agenda with the exception of 5b2 passes unanimously uh next up then we have item number 5b2 that is to award a one co a one year contract with four one year renewal options to vincere cancer center for a cancer screening program for the tempe fire medical rescue department uh councilmember qb you have this item pulled thank you mr mayor and um i reached through my counselling christian gwen to uh chief reese and i believe he's ready to to discuss this issue a little i am fully supportive of it and really delighted for the unmatching funds and uh and this is so important but i thought it was a good opportunity to talk to the council and the public about some of the risks that we face um that are count that our firefighters face and protecting us and um and also ask you know about further risks that that are out there that aren't as known or quantifiable as some of the risks that ek is bringing our attention to so i just thought it was an opportunity to hear more from chief reece if he's available to talk about um you know we've suffered losses in our tempe family um over chemical exposure and cancer as a result so i just wanted to hear a little more that sounds good councilmember qb uh chief reece are you available i am mr mayor but thank you councilmember qb for that and for pulling this and giving me an opportunity to speak mr mayor members of council greg reese fire medical rescue chief again thank you for giving me the opportunity to say a few words about this item as councilmember qv alluded to this is extremely near and dear to me firefighters are continuously exposed to various toxins and carcinogens as a result of this exposure firefighters have significantly increased cancer incidence and mortality rates including cancers of the lung colon prostate breast and skin although personal protective equipment and decontamination protocols are in place to minimize exposure to the contaminants and toxins firefighters are still exposed to many compounds designated as carcinogens by the international agency of research on cancer just a few of those examples are benzene diesel engine exhaust asbestos chloroform soot styrene and formaldehyde these substances can be inhaled and absorbed through the skin and it can occur both at a fire scene and in the firehouse where idling fire trucks produce diesel exhaust which was addressed in previous cip in a previous cip as part of our cancer reduction program the national institute for occupational safety and hazard and health reports that firefighters have a nine percent increase in cancer diagnosis and 14 increase in cancer related deaths compared to the general population even though most firefighters are concerned about work-related exposures and cancer only a small percentage received some form of screening over the past year with the acceptance of this grant one hundred percent of our tempe firefighters will be screened by a physician our firefighters work in an inherently dangerous occupation daily daily and protective measures that will ensure they are not at an increased cancer risk are continuously being implemented these measures could not be implemented without your support in honor of fallen tempe fire medical rescue firefighter tommy arriaga and on behalf of the firemen medical rescue family members i want to thank you mr mayor members of the council for your continued support of our cancer reduction program i'd also like to thank city manager andrew andrew ching and deputy city manager ken jones for their support as we wrote this grant this grant was offered by deputy chief kyle carman who was tommy area august captain and tonight is an honor for me to speak on behalf of both kyle and the ariata family thank you mr mayor for giving me opportunity to speak she really appreciated uh councilmember cubing thank you chief reece i really appreciate hearing from you on this really important issue and i would move to approve great it's been item 5v2 has been moved uh by councilmember cubie do i have a second second seconded by councilmember adams uh i'll go ahead then and take a roll call vote uh councilmember navarro i think i heard an eye there um uh councilmember adams hi councilmember arredondo savage yes i all right perfect uh that motion 5v2 passes seven to zero all right next up here is item number six which is the non-consent agenda all items listed on the non-consent agenda will be considered separately agenda items scheduled for introduction and first hearing will not will be heard but will not be voted upon at this meeting agenda items scheduled for second public hearing and final adoption will be voted upon tonight council members who may have a conflict of interest may abstain from voting on a matter and the city clerk will provide the council members with a disclosure form at this time first up items five six six a miscellaneous items bids contracts and resolutions first item under the section is 6a1 which is to adopt a resolution authorizing the mayor to execute the sub-grant award agreement between the arizona department of public safety victims of crime act victim assistance grant program and the city of tempe to accept and disburse a federal grant for the provision of care 7 victim services council is are there any comments or discussions all right hearing none i'm gonna go ahead and ask for a motion mayor moved by council member arrow down to savage you have a second second seconded by vice mayor keating i'll take a roll call vote councilmember navarro hi councilmember cubie hi councilmember garland i vice mayor keating yes council member arredondo savage councilmember adams i and i vote i as well item 6a1 passes 7-0 next item under the section is 682 which is to approve the utilization of a seven year source well cooperative contract with axon enterprise incorporated for the purchase of a body-worn camera and digital evidence storage solution for the police department counsel any comments or discussion all right hearing none uh do i have a motion for item 682 removed second there moved by council member adams and seconded by council member arredondo savage all right can we go for a roll call vote council member navarro hi councilmember councilmember garland aye vice mayor keating yes council member arredondo savage sorry councilman adams hi and i vote i as well item 682 passes seven to zero next item under the section is 683 which is to approve the utilization of a one year renewal to utilize the state of arizona cooperative contract with motorola solutions incorporated for two-way radios parts and related repair and maintenance services for the city's public safety radio systems council any comments or discussion move to approve moved by vice mayor keating do i have a i'll second seconded by councilmember adams i'm going to go for a roll call vote council member navarro i council member garland i vice mayor keating yes council member arredondo savage hi councilmember adams i and i vote i as well item 6a 3 passes 7-0 the last item under the section is 684 which is to award a two-year contract with two two-year renewal options to western environmental equipment company to provide wastewater sampling services and flow monitoring equipment for the municipal utilities department council any comments or discussion i would just look for a motion on 684 move to approve here second seconded by vice mayor keating okay uh roll call vote council member navarro hi counselor qb i council member garland i vice mayor keating yes council member arredondo savage aye councilmember adams hi and i vote i as well item 6a4 passes seven to zero next up item six b ordinances and items for introduction and first hearing there are none so next up we've got uh items number six c uh the following agenda items are scheduled for second public hearing and final adoption were read and introduced on october 15 2020 with the exception of item 64 and votes will be taken tonight so here we go the first item under section 61 is to hold the second and final public hearing to adopt an ordinance authorizing the abandonment of a water line easement located at 1935 east apache boulevard west of martin lane and south of apache boulevard the first public hearing was held on october 15 2020.

council uh actually first i'm going to ask uh madam clerk any comments received from the public on this album none for this item mayor all right i'll go ahead and close the public hearing cancel any comments or discussions i'll make a motion i'll make the motion to approve moved by councilmember adams do i have a second second seconded by vice mayor keating i'm going to go with the roll call vote here council member tomorrow hi councilmember qb aye councilmember garland aye vice mayor keating yes council member arredondo savage hi mayor councilmember adams aye and i vote i as well item 61 passes seven to zero next item under the section is 62 which is to hold the second and final public hearing to adopt an ordinance for a zoning map amendment from pcc2 to mu4 and an amended planned area development overlay and approve a development plan review for a five-story 310 unit multi-family development for tempe market station located at 1953 east rio salado parkway the applicant is barry riddell llc the first public hearing was held on october 2020.

i'm going to ask uh is the applicant wendy riddell available to make a statement yes mayor i am all right great um tridel i just wanted to ask you too i know we've talked during the course of this week whatever about uh you know trying to find some you know additional voluntary contributions to support affordable housing off you know for the city but i wanted to uh turn it over to you to make a full presentation i know the council already heard a full presentation back on october 15th uh but just for the benefit of the public i'd like to have another one this evening uh but then if we can actually discuss uh some of the additional stipulations that we discussed and we can kind of get those ready to the record uh and have some council comment but with that said i'll go ahead and turn this over to you thank you mayor uh and thank you staff for pulling up our presentation uh this is wendy riddell with the law firm barry riddell 6750 east camelback my pleasure to be here this evening i guess here being my conference room to appear virtually on behalf of trammell crowe and their site at smith in rio next slide please if you would so i'm very excited i know there's a lot of excitement too to have high street residential which is a subsidiary of trammel crow here in tempe this will be their first project in tempe tramwro being part of cbre the world's largest real estate service firm it is number 32 on forbes 2020 just 100 list and named one of fortune's most admired companies eight years in a row this gives you just kind of an understanding of the type of awards jump back when that travel crow has been awarded over time for some of their developments next slide if you would thank you so the site that we're talking about here is located at smith and rio salado tempe market station it's part of a larger overall commercial project three point nearly 3.91 nearly four acres of commercial currently planned for hotel retail restaurant and then of course what you see in blue is what we're here this evening to discuss next slide please so we are here requesting we initially were requesting a general plan amendment but that was actually approved as part of the smith industrial innovation hub at the hearing two weeks ago so we are now moving forward with the rezoning that's in conformance with that general plan amendment that the city council recently approved a pid amendment and then a major development plan review approving the plan development plan for the site next slide so as i referenced i think the council is already very well aware that two weeks ago you guys actually adopted already this general plan amendment showing our site specifically as appropriate for high density residential and allowing up to 90 feet in height the star representing our location here on the plan next and that of course is very consistent with your general plan so when you look at the general plan here you this area is called out as a 101 202 interchange hub and that there is a need to support new residential and commercial development within hubs at sufficient densities to support the desired new neighborhood-oriented goods and services and to make these a magnet for neighborhoods next and of course again from the general plan you'll see now part of the smith hub gateway high density residential designation proximity to employment entertainment and pedestrian activity encourage interaction and creates an urban environment that contributes to the hub the site really is ideally situated for increased density to connect in all these various ways and to service the existing very successful employment that you guys have brought to tempe and of course there's this is also part of the apache character area plan where tempe's vision is as a 20-minute city with a complete streets that are safe accessible convenient comfortable and are able to very easily access transportation and support the kind of investment that has been made and will be made in the future into streetcar and into the transportation here in tempe next and of course all of this is part of the smith hub again the policy document that was adopted by council two weeks ago that high density residential should locate where pedestrian improvements are planned to maximize the investment and promote the 20-minute city concept of course here immediately on the streetcar line with pedestrian connectivity going north and south and east and west as well next this just gives you an idea so not only do we have that pedestrian connectivity not only do we have the future street car you have the bus route and you have orbit as well so a very well connected site we think ideally situated as your planning documents suggest for high density residential to benefit the surrounding businesses and commercial and utilize these transportation methods next slide so again part of this industrial innovation this is a document that was adopted two weeks ago that calls for increased building height and new residential density along rio salada parkway extending south to fifth street will help the area meet evolving needs while taking advantage of the hub's well-connected location and so from there we move on to the zoning request our request here is to modify the site from commercial zoning to mixed use to create a horizontally integrated mixed use again to promote the long-range plans for increased height and density within the smith industrial innovation hub you see the site there in white next slide so if you look and i know it's a little bit difficult to read but if you see the underlying site plan you'll see that it was residential initially and it is now being replaced i'm sorry that it was commercial initially with retail and restaurant and that is now being replaced with multi-family proposing 310 units next so you'll see these are the renderings that give you an idea of the 310 units five-story apartments you see rio salado will be the future streetcar you see the the separated sidewalk you see the entrance the primary entrance to the facility in the drive you'll see the number of shade trees and shaded sidewalk for those pedestrians just to give you a couple additional views here from smith and rio salado and seeing how the building is set back which actually the setbacks are a little bit further off rio salado than the previous entitlements and creating that nice pedestrian experience and ultimate utilization of streetcar this is the view from the north looking into the main entry see the different building material types you see the driveway and again ultimately there will be streetcar here this is also this really is a very typical luxury community for tramwell crowd it's got a dog park it's got a pool a spa fitness center clubhouse game room two different interior courtyards there's ample bike storage room outdoor barbecues and then balconies and patios the ground units have the ability to walk right out onto the patio and be kind of a part of that street next so now getting to what we discussed a little bit last time and has been the subject of much discussion over the last two weeks so this really is market rate housing it is intended to support the jobs that are existing in the area that you guys have very successfully brought to the area you've got 4 000 employee in employee business park and a master plan 330 acre redevelopment project when you look at asu's novus innovation corridor and there is we believe a very immediate need to provide housing for the people that are working within this vicinity and to give them the ability to both work and live within tempe i will point out we are not seeking incentives any incentives at all as part of this proposal next we are however as the mayor alluded to we are agreeing to voluntarily contribute 125 000 to tempe's coalition for affordable housing and or the city's art program for use in the smith industrial innovation hub when i was in front of you last time i think one of the questions by councilwoman cooby that i was asked specifically to follow up on was the art we have been talking with rebecca rothman and they have a need for 25 dollars to allow them to do an art asset map of this area specifically for the smith innovation hub to be able to determine how best to you know place art what type of art how best to kind of brand the smith innovation hub so 25 000 of that it's certainly ultimately up to the council how to distribute it but the intent was that 25 would be able to be utilized for art and the ra remaining amount would be available to go to the affordable housing fund we have also if you go back one minute there you go i wanted to point out we also then suggested what we have done with a different project is the ability to take matching funds so as a result of this development there's pretty significant fees that get paid to the city we estimate somewhere around five hundred thousand dollars in fees and talking with staff that a portion of those funds could be reallocated specifically by the council to the affordable housing coalition fund so immediately there would be three hundred and twenty five thousand 000 a contribution made to the coalition for affordable housing and of course a portion to the smith hub art fund next slide so to memorialize this we are specifically asking there is a stipulation that was part of the dpr that required us or asked us to do additional design work with staff we asked that that stipulation respectfully be removed and that in lieu of additional design efforts that this contribution would be accepted that this stipulation here would be added to our pad specifically requiring us to execute voluntarily we are executing an agreement with the city manager to make this 125 thousand dollars available to the tempe coalition for affordable housing and for the city's art program and with that mayor i'm happy to answer any questions that you may have thank you wendy really appreciate it uh i've got one quick question for uh donna kennedy our economic development director good evening mayor it's donna kennedy donna can you once again just for the record talk about the the money whatever the hundred and twenty-five thousand of the two hundred thousand dollars just to make sure that it's completely clear to the public about how that's coming about sure thing so mayor and council members what we have allocated and would like to have allocated the request as wendy wells stated as the developer goes through our process there's certain fees with our community development that are going to be paid for upon completion of different milestones we collect the fees and then instead of allocating them in a general fund where anything could be um justified for those fees we're going to put a specific use for them to be allocated for the housing affiliate and once that affiliate you know starts to have more of a contribution measures to it it allows the city to go ahead and start projects and to go ahead put it towards housing working with our department naomi farrell and her housing team to help the city gain more units and to put it out into use into the community and specifically perhaps on city property right now ours our fund is very limited it's um it's a low fund but having this sort of um model to go by not only now but in the future helps us and helps the city especially council's goals to get affordable housing within our boundaries so this is a unique way it's two hundred thousand up to two hundred thousand i may say and as wendy stated um we do like to offer the twenty five thousand of that be put towards the how the arts program and that asset map we feel that is a very important um need and we need to get the smith hub out and get some marketing and almost a sense of place if you will so that future developers that come in will know and have some guidance and see what we're doing for because we have a map in place with some type of identity identity for the area but the housing yes um the 125 from the client and then we go ahead and get the fees from the cities portion to allocate for this area and the project great thank you donna really appreciate it great okay thank you so much really appreciate it um i'm going to turn to our city clerk right now to ask if there were any comments received from the public regarding this item or if any requests from the public to speak on this item yes sir we do have four requests to speak and three items to be read into the record and our first speaker would be deborah zajac okay great thank you can you hear me i'm just a jacket speaking of you okay name's deborah zajac i'm a 26-year tempe resident at 1711 north macalester and um you know we have a general plan that we have to do every 10 years and then we started doing character areas where we had a lot of engagement and input from the residents and then also this now the strategic plan where we created these innovation hubs that are you know encompassed within various character areas and when the smith innovation hub was first presented um just about a year ago i was really excited about it and then um just this last month mayor woods we got in emails talking about the smith innovation hub and about the community support and then i looked and saw what this tempe market station project was and i was just really surprised and that it didn't fit anything that the gentleman from uh cushman wakefield and um isl or something you know they talked about grit grit is what's going to make things cool they talked about pocket parks they talked about using industrial materials and having artwork and this project nothing it's a bad project it's not ugly or anything but it's just like every other stucco development you've seen built everywhere around around the valley and we could make all these plans and have these designated areas but where the rubber really meets the road is when it comes to meetings like this in front of our leaders who were elected to represent us and i have just seen it over and over again where we get excited about something but then when the projects actually come in front of you all that is just not honored and i talked to randy earlier today because i i wrote all you guys letters and um he also mentioned about this three hundred thousand dollars that and i said well that's better than the 30 000 from camden 2.

but now as i'm listening to the actual presentation that 200 000 is coming out of our general fund we would have received that in fees anyway so we're taking that from other projects we could be doing and it's going into this housing thing i mean we could designate any time 200 000 to go into that so i don't think that's really um a giveaway but also you know this is the inaugural project for this innovation industrial hub and this doesn't reflect that at all they're asking for a lot already you know the just by the rezoning it's increased the property value because at the last meeting uh council member navarro talked about you know they have to build this because you know of what the amount of property cost their investment increased just by the rezoning but they're also asking for greater setbacks or less setbacks um greater lot coverage bye-bye pocket parks um and then reduced parking so somebody who wants to live in these buildings is going to have a car what are they going to have to park in front of the a tool and die shop because they don't have designated parking and they talked about these enclosed courtyards the way the smith industrial hub was presented and council members were excited about it with these pocket parks gathering places for people this is going to be gathering places for people just at that specific development it's not a place that's going to draw people from the whole community and that's the way it was presented and this project doesn't reflect that at all to me so i definitely do not support this project in its current form it's not that it's ugly i don't i wouldn't care if it were taller and you know i wish the rents weren't as high i think they're outrageous i mean for i don't know we're next to a shopping center but it's a shopping center that has target and ross and five below it's not a shopping center that reflects high end so i don't know it's not a project i support i would encourage you to not support this as is or if you choose to support it and or consider it you i ask that you continue it because these last minute concessions that are made i think are part of a tactic that's part of a bigger strategy so that people because what i heard the scuttlebutt was that these developers won't budge and then at the last minute they make concessions and we're supposed to fall over i would ask that it be continued so the concessions could be more thoroughly vetted and evaluated by all the council members because the way it was explained to me by vice mayor keating was not what i heard during this presentation so i'm asking for a continuance or to not support it at all so thank you very much thank you mrs ajax appreciate it um the next speaker carla next speaker will be brad chapman thank you mr chapman you're all set to go uh good evening everyone um mayor and and everyone else um my name is brad chapman and thank you for the opportunity to speak um i've been a resident mentor on east orange street in the escalante neighborhood for just over a year i really like the neighborhood enjoy walking my dog at the escalante park every day the housing issue immediately caught my attention and struck a nerve that this proposed development offers no affordable workforce housing you see last summer i was a week away from living in my car due to the lack of affordable housing in the valley and surrounding areas after a three-month search i learned that rental prices and moving costs were on a steady incline pricing me out of the housing market it was a miracle someone from my church found out about my situation and offered me respectable housing below market rate just stays away from my lease end in moving out of my apartment my previous apartment i really think addressing housing affordable housing issues need to be addressed at the zoning planning meetings and i can see here from a neighborhood standpoint i'm a newbie and i'm standing up for everyone and also um i forgot to preface this it's this is included in a letter from judy and ron tapscott which i don't see anywhere in the attachments or on the agenda and i see that some concessions were made at the final whim and well let me continue um i'm almost done um so addressing this at these meetings for new developments needs emphasis i'm functionally disabled and on a fixed income but i'm able to pay around eight hundred dollars for rent only and that doesn't exist i do not qualify for any kind of local state assistance as i'm just over the qualifying threshold i'm attending that well and could easily face homelessness again if my rent increases so i ask you to consider what would i have to make to afford a studio apartment at tempe market station monthly rent average fifteen hundred dollars after tax monthly income using one third for rent forty five thousand a year that's an annual salary taxable at a twenty five percent rate of sixty 68 000 the hourly rate for that is 35 and 42 cents how many jobs really are so local to those uh and your encouragement for walkability and transportation all that i don't believe it the median house household income in eight five two eight one zip code is thirty five thousand six hundred and eighty two dollars the average household income in zip code eight five two eight one is forty nine thousand eight forty three and that's as of today um i just i wanna thank you and i also um asked what of the letter that nothing was even mentioned in opposition to this proposal and signed by 249 residents uh thank you thank you sir appreciate it um madame clerk uh you have two more speakers mayor we have mark davis listed next thank you go ahead mr davis whatever you're ready mr mayor i'm attempting to find that individual there was a davis in the audience but that individual's no longer here okay do we want to go to the next speaker and then we'll see if the babies come back the next speaker listed was phillip yates and i also am not seeing him in the queue okay so i do have some cards to read into the record let's let's go ahead and do that then okay first card is from richard newhauser he writes i urge the tempe city council to reject the tempe market station proposal as a member of the faculty at asu i know that almost all my students have to work to pay their bills excuse me and most of them work full-time i also know that none of my students could afford to live in what was being planned for the tempe market station our city ought to make it possible for my students to not only work and go to school here but to live in tempe as well we have enough high cost and high density apartments in tempe we do not need more of them instead of the kind of development proposed in the tempe market station i hope the council will support affordable housing for our city next item comes from ron tapscott and it's rather long i'm going to go ahead and read the first five minutes of it and then the rest has already been provided to counsel ahead of time mr tapscott writes mayor and council please find the documentation supported by 249 tempe residents he has since amended that to 262 residents who ask for a no vote on the proposed tempe market station which comes before you for a second reading on thursday october 29th there are two deficiencies in this proposal it number one ignores the long-standing and growing need for affordable and workforce housing in our city number two it is in contradiction to the original vision of the smiths smith industrial innovation hub lost opportunities affordable workforce housing developers have been awarded much and have given back little awards of tax relief meager contributions to the affordable housing trust fund and minimal public art amenities have been at the expense of tempe taxpayers particularly those struggling with limited finances the current economy rising unemployment and wage suppression have aggravated the problem recent projects that have given back little to the community to mention a few are camden to the maker district and the banyan project on the county island the latter's still in formulation camden 2 is a poster child for me or donations to the housing trust fund approved by the council on april 11 2019 camden 2 is a luxury high-end development in one of the poorest areas of tempe it will produce approximately 400 units the developer's attorney charles holmantle offered 30 000 to the housing trust fund rather than allocate 10 percent city of phoenix formula for affordable housing when density and height bonuses are given of the projected units toward workforce or affordable housing the developer camden usa incorporated parent camden property trust generated 957 million dollars in revenue in 2018 total assets of 6.173 billion as of 1231 2017 the company owned interest in 162 apartment communities containing 55 143 apartment units the maker district was passed by council in september 2019.

this plan resumed 70 acres of commercial and 488 acres of industrial land to a full 558 acres of mixed-use industrial development the first project in this area broadway roosevelt was offered by the development attorney promising the housing would be workforce in fact the entire project is market rate and avoid stipulations that would guarantee stable workforce housing it does provide a youtube link that you can view later next is tempe market station the proposed tempi market station continues this unfortunate trend the developer kim model partners and attorney wendy r riddell law firm of barry riddell are proposing a 310 unit luxury apartment complex the proposed complex is dense for a five-story building 79 percent of the units are one bedroom or less 53 units 17 are studios and 193 62 are one bedroom proposed rents are studio 1450 to 1500 a month one bedroom 1 650 to 1700 a month 2 bedroom 2 250 to 2 350 per month 3 bedroom 3 750 to 3850 per month the reality is on the ground and he provides an income by zip code link and tempe zip code 85281 medium household income is 35682 and 10p zip code 85282 median household income is 53 475.

developers may hesitate to follow as they do in phoenix a 10 rule of holding units off the market rate designation the affordable housing trust fund offers an alternative once established with reasonable collections the fund would allow the city to purchase parcels units and projects under their control the city could ensure that these developments would be dedicated to financially challenged and poorer residents but this should be spelled out in a mathematical formula to avoid the paltry and subjective inputs to date this proposed project offers an opportunity to begin and codify the process a potential formula as applied to tempe market station the developer would not need to make a one-time contribution the contribution could be spread over two to five years in this way they would then realize income from the project while they contribute in addition the contribution would be tax deductible tempe market station proposes to construct 310 luxury units 30 units approximately 10 percent could be designated as workforce affordable phoenix uses a 10 percent rule for developer contributions 31 bedroom studio units would rent for fifteen hundred dollars each the current average for luxury apartments in tempe those thirty units would gross forty five thousand dollars a month the forty five thousand dollars a month times twelve months would gross five hundred forty thousand dollars per year my timer is going off mayor so i've hit the five minute mark but i do encourage you to go ahead and read the full letter and the attached 262 names that have been submitted last item announcements so you know if this were a typical council meeting and someone were reading it you know giving a statement we'd be able to ask a question so i wanted to ask if the names could be read because it is an extraordinary number of names i don't think in response to development since so this first time i've ever had that request be made but whatever madam clerk what what's the protocol hello can you hear me now sorry about that yes okay so i can read the names in support let me pull those up momentarily it's just going to take me a little while to finish them all so first it first is catherine mancini kathy walters tom walters deborah zajac neal michelle brown gail majors christine kimball joan westlake kevin brown marie provine karen gitlis phil amarosi justin stewart shannon dutton gayle shanks jeannie frieden victor arenau bob summer noreen hurd susan waters-carlson bill carlson patricia valles gretchen reinhardt sid fridy barbara cuomo carolyn martens bill churchill selena canty jerome beerwegen miriam ephram fred samuelson sarah samuelson hugh mcdowell larry conway marsha patton hillary nelson george love paulette pullman sue ringler stephen klug mirian durham jim durham thigh may stan sorensen lisa berksen steve bockenkamp melissa samuelson laurie wells alicia thompson chris deaton barbara mcnally laura dalbo gina dalbo mary weiss trevor wood ken bond aaron thacker francine bard doreen kelly hoyt tillman sue lofgren harriet smith andrew smith julie buffkin keegan allen deborah carpenter janet horvath julie varghol alice frondfelder diane bottomley rebecca green melanie sprout nancy fee richard fee carol bowling ron webster alice brimrose tamyra burns rosemary castellanos sandy roperstruck bob rapper struck larry barkin robin nelson ben duguay jan dowdy debbie roberts suzanne ecker william banks janet norman barbara crisp dennis ederer juliet gomez linda croft brian perkins ellen carpenter scott siebel monica wadsworth-steeble kristen countryman jim delton bill lettow tim tact meyer richard newhauser jonathan kellman peter crank dr dawn pinish thacker linda martin timothy cook marsha spencer ronnie alexander chip eckles zoe stein gary brennan kevin wright sue lofgren ruth kearns charles redmond linda redman danny green william green marianne rosnick georges rajneck iii beth lange jennifer mcva kent mcvaugh shireen lerner dr raquel gutierrez lucas cabrera ron pies kim balman peterson lisa martin ronnie soo lee john johnson shoshanna starzinski veronica gonzalez john linda linda schilling christina chilvers ross cater lisa brock susan soroka tobias a feltus ted raper carolyn raper gene ratliff sally clements ronald mcnamee linda fisher philip burnick rhonda still arthur glenberg kathleen clark deidra simmons chet myers elizabeth hill wrigley brown laura mcguire kimberly schmidt mark nemschaff and fan barbara grady maria harris anne hart susan o'donnell jennifer waters donna hall darlene payney rebecca bond tom brown diane hughes angela edwards lisa bain gary crandall brian gratton mark hackney jc nachny diane shook lucy anaya mitchell sharon crook alejandra gutierrez ryan guzy lisa hobson bradford chapman linda omarosi ellen welty eric cucino linda cabrera matt trink noreen herring vince bimani majeed akavan terry ekman adriana puente martinez ron tapscott judy tapscott grace wagner david gragner phillip brown ellie veloson daryl r stern betsy rosenmiller escalante neighborhood association deborah moninger dave palmer kendon young kim gaffney loza linda artac marcia iole jay iolay lucy logan virginia stahl kimberly king sandy hopped paul hubbell jeff clark bonnie willard annie faux victor grijalva aylin valdez well gloria askin toewitz mg harris christopher lovermee sahar dick natalie bustamante nancy vigram stephanie clark jessica binkley edward clark marsha clark jerry cursages for doran nancy jameson lynette guck sandra aragon candace toller rabbi dean shapiro hannah moulton beck arabella eric bellick jamie peckins richard hervig mark schlossman dennis lemon susan conclu robert deakin kim kliber joseph gibbs donald johnson ann perkins aaron moser alice valenzuela dave nevelsberger tony ramsey mark mulligan gene ruth debra sanders betty ann garcia pendley randall pendley mamie ann barr todd springer chris rogers stan sipinski and april sipinski if i mispronounce anyone's name i apologize profusely i have one more card okay this one comes from akhtar ramen and he writes i am in support of the tempe market station development my property neighbors the proposed development my property address is 1817 east rio salado parkway this development would greatly improve the area and would give housing for employees and students of the adjoining industrial area the mayor that closes out our public comment mr mayor our speaker mark davis has returned into the audience mr davis whatever you're ready yeah mayor can you hear me yes i can okay uh mr mayor i um i have a property 1803 east rio salado and and the comment card you just heard is from my neighboring property owner uh my neighboring property um i'm in support of this zoning case the smith industrial hub is an area that is in transformation um my neighbor uh aki who you just heard from myself we've invested um potential amounts of money into this area and we want to see the future and the area to be transformed we unders i understand that tempe has a craving and a need and inspire aspiration for affordable housing and that's critical and key but this area the smith innovation hub is in a transformative state where this site really is going to invigorate more strong good development that perhaps will include affordable housing elements and workforce housing elements in the future my tenant one of my tenants is a comic store and i just think about all of the uh residents that may benefit from in my my tent that might benefit from uh you know 300 new units in in this corridor tempe marketplace when that was designed it was just designed you know to feed off the parking lots on the interior rather than from from the exterior along rio salado this is a transformative project that is going to let rio salado become the connective tissue in the corridor to the to this area this is really good for smith innovation hub i'm excited to see this uh my adaptive reuse project completed it's called circa 78 and um it completed in february just in time for uh coronavirus and i'm really excited because i know that this will help even with my project to maybe get a restaurant in there that can connect with all the new tenants and in the area so this is a this is a very positive element for the area i've toured the developers other project in midtown phoenix i was extremely impressed um and i really hope the council does not lose sight on on the affordable housing and workforce housing needs in the community i just don't i really sincerely feel like this is not the project to kind of die to kind of found a sword on for that um maybe the other ones that are listed i don't know them but but this is a transformative area that is gonna really benefit tremendously from this one project mr mayor thank you for your time great thank you mr davis all right uh any other comments comment cards speakers none mayor all right great all right hold on one second here all right well with that said i'm going to go ahead and close the public hearing i'm going to turn to the council any comments or discussions mr mayor i have my herons oh yes for cubie yeah so um the proposed development agreement is a development agreement it came to us 45 minutes before the start of our meeting tonight i just happened to see it because i was busy preparing um and so i know there's been a lot of negotiations going on behind the scenes and so but i feel like it's been really little time for us to digest what is being proposed and also to hear reactions from the community because as we heard from carla tonight sorry carla but um i just thought it was important to hear those names i think it's important in interested transparency that we uh that we get more reactions from the community this has been a very quick process he just presented to us two weeks ago so i want to call for a continuance to wait until november 12th to to delay the second reading essentially to delay the vote so i want to make a motion to call for a continuance till november 12.

thank you councilmember qb okay so the chapter cube has called for a motion for a continuance is there a second i'll second okay seconded by council member adams are any further comment any comments regarding the motion and i guess mr mayor um i could say in support of the motion uh you know typically development agreements get discussed also in e-session so there should be an e-session set up or we could have one tonight um but i'm you know concerned about there's some really good things about the proposed um development agreement i'm i'm concerned about just moving our funds especially from the general fund into the housing trust fund i mean i think it's a good rule to do all around but um for this particular agreement i don't know i can go into all the reasons about the development later um if that's appropriate but i think we have to have some time to digest this development agreements typically come with a few more few more requests out of the developer for example related to recycling related to um apprentice workers we have the boyer language that we use as a model that goes along with development agreements that's why i feel like 45 minutes before is not enough time to digest and i don't think that's a good public policy i you know to just decide on this tonight with very little advanced warning and very little public input a lot of people because the covet aren't watching aren't at the meeting or able to participate so i think it's important we continue mr mayor if i can add a few comments yes councilman i really feel like you know we need to reevaluate how we're doing it all these processes because you know it's not really fair at the end to move the goal posts for the developers and it's not fair to not have significant input from the neighborhoods and the community that this will affect so that's why i'm supportive with the continuance and trying to talk out some more issues and see if we can come to a win-win for both the developer and the neighborhoods thank you thank you councilmember adams any other comments or questions regarding the continuance motion all right sorry with that said i'm going to go ahead and call for a vote on the motion mayor i'm sorry this is this is robin yes i'm sorry about that i was trying to find my hand raising but i just can't seem to locate that i i was wondering could we possibly hear um from mrs rydell in regards to what impact a continuance may have on the project moving forward would that be possible we we can we can do that i would always say the only thing is based on the fact that there's already a motion on the table it would need to be withdrawn uh by councilmember qb to uh to give uh to give ms riddell a chance to answer that question casper kiwi would you mind withdrawing just so um of course that's fine with me okay thank you all right uh wendy i'll go ahead and turn to you then to answer the question that councilman redondo savage asked thank you mayor and thank you councilwoman savage yes we would not be in support of the continuance we have been working for a very long time on this project you know more than five iterations with staff working with the immediate surrounding of budding property owners who are in support of this project i'd also like to clarify that we are not suggesting a development agreement here there was early discussions and perhaps that's what councilmember cooby is referring to or saw what we are suggesting here is very different which is we are standing up and voluntarily agreeing to give 125 000 four times more than any previous contribution to the trust fund to the trust fund we will execute an agreement with the city manager but it is not a development agreement this is a voluntary contribution on behalf of trammel crow i guess i would also point out that this willingness to do this in large part is to give us the opportunity to move forward with the project now to get into construction drawings it's with anticipation of being able to do that so i very much appreciate the opportunity to speak happy to answer any questions you may have thank you wendy casper or donna savage any follow-up questions no i i just i i thought it was just respectful to um check in with check in with the developer and see what their perspective is just to get the whole picture so thank you mayor thank you councilmember uh any other comments or questions for wendy while she's like i'd like to say something but i don't need to interact and ask her a question um okay uh cancel the cube go ahead yeah i mean i'm not sure you know the two weeks that we're talking about it really hasn't been explained that it would be such a hardship and it you may have been working on this project since march but it's the first time that we've seen it i mean two weeks ago was the first time that we've seen it october what was that october around 15.

and i you know where it's pressure to hurry up and make a decision right now and i was told by city staff that uh this would be a development agreement so there's a lot of that sort of proves my point there's a lot of rumors gossip or whatever going around and we don't really know this really hasn't been discussed as a body um in with any session perhaps um i feel really insecure moving ahead when we haven't had a thorough vetting of this i would actually actually then counselor for cubie to that point um i appreciate you raising that uh i can't make the motion because i'm the chair of the meeting but i wonder if anyone actually wants to talk about an executive session because we do have that we do have that opportunity as council members right now to have that discussion if no one does that's totally fine that's totally fine we just can we vote on the motion and then we could talk about the e-session after well the only thing i would i would say about that though is that is that i mean we can we can go counselor qb we can go to your motion first um whatever but i think we could also but it seems to me just and just from what i'm thinking it would make more sense to talk about doing the executive session now to talk about the details of the deal that it would devote the continuance first i get that just by perspective so right now i'm happy to follow your your lead mr mayor um but i would just point out the one of my reasons for asking for the continuance is the extraordinary amount of of public engagement on this and going to each session while it's be helpful for all of us to better understand the proposed agreement it doesn't really help with the transparency aspect of my motion but i understand what you're saying and i i would then want to go ask to um go to an executive session okay is is is that a motion counselor qb yes okay so the motions made by councilmember qb to adjourn to executive session is there a second second seconded by councillor navarro okay i'm going to go ahead and take a roll call vote uh i killed people all right councilmember cubie aye councilmember garland aye vice mayor keating no councilmember donald savage hi councilmember adams councilmember adams i i can you hear me okay then i and i will vote i as well so that's uh six to one to go into executive session we're gonna go ahead and adjourn and we will return great thank you alex all right we're going to re-adjourn the meeting here at 8 23 p.m uh we are still just to remind the public on item 62 which is to hold the second and final public hearing to adopt an ordinance for a zoning map amendment from pcc two to mu4 and an amended planned area development overlay an approved development plan review for a five-story 310 unit multi-family development for tempe market station located at 1953 east rio salado parkway the applicant is barry riddell llc the first public hearing was held on october 2020.

we've already had the presentation i just wanted to see uh if this riddle is still there mr mayor we are great thank you um council um any other any questions from mrdell and we appreciate you waiting for uh for us to finish up of course yes mayor i have a question yes vice mayor keating uh thank you mayor uh my question is for miss riddell you know let's um stipulate that this was continued what would be the consequence on the 125 000 contribution if this was pushed back two weeks thank you mayor and councilmember keating we gave that contribution voluntarily so we could get this matter approved tonight so i am somewhat disadvantaged of course because tremble crow isn't sitting with me here in the room but my instructions from them headed into this hearing were very clear that that is what we were hoping to accomplish with this again voluntary contribution i would also add that we're very comfortable stipulating that really an agreement separate agreement is not necessary we're very comfortable agreeing to give the 125 thousand dollars voluntarily as a contribution as a stipulation thank you very much i appreciate that thank you any other members of council have any comments or questions mr mayor i do i'm not sure i'm not sure if he should be following the ray's hand protocol or not i'm always like unsure but anyway um yeah i had a question about uh in lieu of design changes i know that the drc has stipulated design changes and wants to make the facade less look like to offset the stick and stucco construction have it a different kind of facade and is there an estimate of the cost of those design changes which we would lose from this agreement uh thank you yes mr mayor councilwoman kuby so the stipulation was actually much more specific to that it was actually just addressing the corner at smith and rio salado and when we estimated those fees that's actually where we were estimating between 25 and 35 000 dollars what tramwell crow is willing to offer and has voluntarily offered tonight is obviously significantly more than that uh yes i understand and and for the question that vice mayor keating asks i understand you're saying almost like saying this is an offer for tonight but you know in reality as i think about it as a council member uh there are entitlements that are being that would be voted on tonight and those entitlements give you um increased value to your land as seen as the zoning amendment did last last um two weeks ago so i i'm i'm back to where i was before i i feel that we need to have uh staff especially our legal staff to look at this agreement more carefully because it has come up pretty suddenly just today so for that reason i would like to make a motion that we continue this the second hearing of this project to such time where staff feels comfortable that it's ready for a second here mayor i have a question still yes i'd seem to get a second on the motion first before going forward with tommen is there a second if there is one this is jennifer all second uh the motion okay that's based on the fact that what our legal team uh i guess if the legal team wants to comment uh but it sounds like they just got the information so i'm concerned about uh uh not having a thorough process okay thank you councilmember adams uh councilmember navarro yeah just and for clarity with with wendy on the stipulation that there is no with that stipulation there's no uh contractual agreement from the city to uh to to address anything to add to that stipulation are you are you saying that it's just a goodwill uh gesture yes mayor councilman navarro is purely a goodwill gesture and by the way travel crow has made it clear to me that the agreement is on the table for tonight to get the project approved tonight and if we just give the if we turn this simply into a stipulation we're very willing to do that and it would only relate to trammel crow's voluntary contribution of a hundred and twenty-five thousand dollars to be used at the council's discretion for affordable and workforce housing and for the art okay councilmember navarro any other questions no i'm good okay all right anyone else have any comments or questions uh mayor this is robin i gotta i got a couple comments yes sir kevin wrote down awesome thank you very much uh you know i i guess i'm not i'm not really sure how this vote's gonna go i know we have a motion on the table in a second to postpone this and and i certainly don't think that's a bad idea i feel like when we get information kind of at the 11th hour it's really hard for us to digest and make good informed decisions um i will say i think i was a little bit thrown back in regards to utilizing our development fees as any type of i guess i would say commitment to balance our our housing stock because technically i think you know it was who said that deb jack that basically said that comes out of our general fund and that is general fund money so for that to be part of any voluntary document i certainly don't agree with that i think that's something that's very concerning and should be more of a policy discussion and something that the the city council should be able to decide and maybe get some way in from our residents in regards to what a priority of affordable housing is in the future so i certainly don't agree with that if that's something that we are going to continue to talk about and move forward we're also making more limited design changes i think i said it two weeks ago and i'm gonna say it again today this is a really unique area we talked about the smith innovation hub starting back in 2018 so it's not like this wasn't a known factor something that got everybody excited got a resident excited people within that area excited i think economic development did a really good job of making sure that the state on the forefront got feedback we were able to just approve it recently and i understand that and we just approved it recently but at the same time i feel like it's our responsibility to ensure that the projects that come forward have the design and the character that really fit the area and as much as i am happy with this design it's nice it looks great but i could find that anywhere in the city of tempe it doesn't scream or shout to me that this is something unique and different and innovative and however it happened to get to this point i mean i think i have to take some responsibility the city does that developer does i think to um not take into consideration the smith innovation hub and what our vision is is you know a mistake and i'm really disappointed to see that so um i i understand i feel like there's some some work that could be done and um i feel really strongly about certain things and the design is definitely one of them and making sure that we are doing what we can to fulfill our vision this makes me feel like that's something that you know i need to draw a line on and um be firm about what it is we're trying to accomplish as a council as a community and um within the smith innovation hub so i do appreciate everybody's work and hopefully that we can come together and create something that we can all buy into thank you mayor thank you councilmember aridano savage anyone else have any comments or questions mayor can i explain my vote on the continuance motion at that time or go out to make a comment prior um you can explain now and then we'll take the vote um yeah so i will be voting no on the continuance and here's the reason why is you know at the very least we're walking away from a stipulation that would increase our affordable housing trust fund uh by three almost three times and as much as we talk about affordable housing and you know for years we've barely had a trust fund whatsoever um you know that's that in of itself is a significant improvement on what we currently have um and at the very worst we are um walking away from what would be a 6.5 fold increase on the affordable housing trust fund so um as as as is said in these meetings often um there's talking to talk and there's walking the walk um and i i will be disappointed if we turn down was essentially free money in the 125 and not so free money but it's money that we're not going to get if this project fails right we're getting zero if this project fails if it goes forward we're getting 500k 200k of which would go to the affordable housing trust fund um look there's the good and there's the perfect and there's nothing and i'm very much i'll take the good over the perfect every day especially with how much lip service is paid to affordable housing in the city so i'll be able to know on the continuance thank you mayor thank you vice mayor keating uh councilmember navarro yeah thank you mayor um listen i this it's kind of hard um i'm still for this project i think the project's a good project and i understand what the constituents are saying i understand what the other council members are saying i know that um we have questions on some deal points uh on on our end and obviously you know kind of goes in lines of policy decisions that that we should have had some guidance on but at the same time i want to say this even with guidance even with our policy every deal is unique every deal is going to have a twist or turn to it to some degree obviously we want to make sure our developers are aware of the council's wishes um so they're not going into the 11th hour blindly and i understand too that questions do arise from constituents as they do often when we get down to the 11th hour too so it does come down to the council to make a decision on these things um there's there's just those things that i know that the council member has paused on and legal give us some pause on some some items but um even if this goes to a continuance i just want to say this project is still a good project in my mind if we can work out some minor details to that but knowing that there's no guarantees with what is being offered on the table today um if that's going to be offered on the table tomorrow and if the deal points change to something even different i think council member vice mayor keating said you know it very well i mean these are these are these are the things that we are often up against and we have to make decisions on where we're going to go with that those types of money and how we're going to address those might in my opinion i've stated this multiple times over and over we're truly not going to have any good control over affordability unless the city is absolutely involved in it either a tremendous discount on land we own the land however it is in perpetuity which i know that's what we're trying to get to because even if a project comes in with yeah we're gonna go to affordability we're gonna make you guys happy in two to three years that project is now probably a market rate project depending on the circumstances so we don't get guarantees with with just you know begging and pleading and we want this we want that and i know that our physicians want that too it is a tough deal when we're talking on private property and we're talking about property that's not asking for the city for anything so that that's what makes it very hard in this situation i i do hear the concerns um that we addressed and um just just a tough decision right now great thank you councilmember navarro thank you mr mayor yeah i mean you know if i were representing a developer i'd want to say this is the offer tonight and i'm not sure the offer will be available to you in a few weeks i mean that's what you should do wendy that's your interest i understand that but as a council member i we have to we have to think as council members we have to think of the larger interests we have to think about the smith industrial innovation hub and its design guidelines which i know aren't requirements but we need to look at that seriously and to get you know that former mayor hallman sent an agreement today i thought it was just to be development agreement but it's not it's a voluntary agreement and there's discussion about uh that we need to have staff sort weighing in on this more and not just doing something at the very last minute i don't understand the haste and the rush again if i were representing the developer i'd want there to be haze in a rush but you know we need to we need to take a step back and i want our attorneys to be able to look at this carefully and um i so support affordable housing i think you know in contrast to what vice mayor keating was saying yes this is uh the last contributions made to the affordable housing house fund were thirty thousand dollars from the level development the replace mobile home community with 388 thousand dollar town homes and that's the poorest census track in in the um in the city and those that thirty thousand dollars would be about one deposit for a house one deposit so you know that was really minuscule and then banyan two banyan one came in and made the same offer and we accepted it somehow and that was also in a census tract that was uh not not as uh wealthy as other census tracts right so we don't if we're gonna establish policy here that concerns me i really think again that we need to have a continuance and and if i i don't believe that we're going to lose that opportunity because we are by giving away these large entitlements that will go forever with the land we are giving something major to this developer so we do have leverage here and i want us to consider that and get the best possible project for our residents so i continue with emotion as expressed excuse me mayor yes judy thank you i was going to ask if we could clarify the motion for postponement to a date certain the next council meeting would be held on november 12.

so judy do we have to say date certain i just did one a box and staff of things you know were ready the day after you know or so i wanted to does it have to be a date certain it's useful for posting notices that are required for the hearing process so i mean i'm fine with writing november 12th i was the second on the motion i'm fine with november 12th to also okay so uh customer kiwi do you want to read your amended motion then yes um i make a motion that we delay the second reading of the proposed market station project until november 12th and i second that motion council member adams and i guess you should add that the next regular council meeting on november 12.

okay uh i wanna i wanna i wanna make some comments as well here just to make sure that i get these on the record too um i i one of my concerns here with this is i also agree you know with something that that uh that that councilmember navarro said that i do believe that we at some point have to i think we have to at some point make sure that we if people are voluntarily offering contributions uh to help you know get our affordable housing trust fund or the or the housing affiliate uh you know some actual resources in it so we can actually go out and determine our own destiny and purchase property uh i think that's something that you know we should be doing quite honestly when i you know when i got on when i became mayor in july you know looking at the two housing funds that we actually have we've got a housing trust fund that has zero dollars in it we have an affiliate whatever the tempe coalition for affordable housing that basically has a net of fifty thousand dollars i mean so both funds combined have fifty thousand dollars and that that's not enough money frankly to do anything and so i think when we're talking about you know getting you know 125 000 of additional money is a voluntary contribution i don't think that's any kind of a small number and i also believe in a sense with the 200 000 of development fees i think my perspective is if the deal goes away you lose all of it we're not talking about 125 000 we're not talking about 325 000 we're talking about nothing and and and that i don't feel helps us in any way shape or form to fulfill our commitment when it comes to affordable housing um and so that's one of my big concerns um as someone who frankly kind of came in on this you know i would say someone at the 11th hour based on when i started as mayor but i think that's my real that's my really big concern when it comes to this to be quite candid so those are my comments so do we vote now yes yes uh there's no other comments i'm gonna go ahead and call the question so the motion is um to continue uh item 62 until the next regular scheduled council meeting which is let me make sure i think thursday november 12th i believe the date is yes okay uh seeing that i'm going to go ahead and call a roll paul vote here uh councilmember navarro today councilmember cubey hi councilman garland i vice mayor keating no councilmember arredondo savage i'm sorry mayor no problem councilmember adams i okay and i vote no so the motion to uh the motion to continue passes four to three and so this item will be moved to the november 12th regular council meeting all right next up we have item 63 which is to hold the second and final public hearing to turn my camera on i forgot that it was off hold the second and final public hearing to adopt an ordinance amending the city code relating to preserves by amending section 23-110 relating to rules for use criminal penalty by adding section 23-111 relating to rules of use civil penalty by amending section 23-113 relating to authority to establish additional rules and regulations by adding chapter 23 article 5 division relating to administration and enforcement by added section 23-131 commencement of civil action citation contents by adding section 23-132 relating to civil fines and penalties imposed by adding section 23-133 relating to each day separate violations and by adding section 23 uh dash 134 relating to habitual offender the first public hearing was held on october 2020.

does staff need to make a statement on this item okay uh were any comments received from members of the public regarding this none for this item mayor okay said uh none okay i'm gonna go ahead and close the public hearing council are there any comments or questions in item 63 aren't hearing none i'll look for a motion so moved mr mayor moved by councilmember adams seconded by vice mayor keating i'm going to go and take a role called vote here councilman councilmember cuban aye councilmember garland hi vice mayor keating yes councilmember arredondo savage hi councilmember adams i and i vote i as well item 63 passes 7-0 next item is item 64 which is introduced and hold the first and final public hearing to receive public comment on and approve a resolution a resolution authorizing an amendment for the fiscal year 2019-2020 annual action plan the purpose of the amendment is to include the one-time 1 million eighty five thousand two hundred and sixty nine dollars in funding received for the community development block grant coronavirus program the one time one million seven hundred and ninety thousand six hundred eighty six dollars in funding received for the emergency solutions grant carotid virus round two and the one time one million nine hundred and two thousand four hundred and eighty eight dollars in funding received for the community development block grant coronavirus round three as a result of the cares act additionally the amendment will reallocate 442 000 of 2019 home funds and 2020 home program income to tenant-based rental assistance to increase funding to meet the urgent need for rentals for housing assistance is staff available make any statement on this all right any comments for the public on this item no input received for this item mayor okay but go ahead and close the public hearing uh council any comments or questions item 64.

move to approve i'll second okay moved by vice mayor keating seconded by council member adams go for a roll call vote council member [Music] vice mayor keating yes councilmember arredondo savage hi councilmember adams hi and i vote i as well the item passes 60 uh seven to nothing excuse me all right next up is item number seven here which is current events council announcements and future agenda items i'm just going to call on every council member uh councilmember lara uh none mayor thank you for that but just wishing everybody a happy halloween as it's coming up and i know that we have grown a virus so please be safe wear your masks thank you councilmember uh councilmember cubie thank you mr mayor i think we have some graphics to come up yes i just want to give a shout out to our hope outreach team and um nikki stevens for our homeless solutions supervisor because they were doing such amazing work and recently succeeded in housing quite a number of people and we got it uh we got an email from and from sorry i'm sorry from steven method about their success you know sometimes it's the first touch sometimes it's the 30th touch sometimes it happens after a month sometimes it takes 20 years but we succeeded in getting housing and stability for quite a number of homeless folks in the past few months so i really want to thank the hope outreach team for all that they do and second many of you may this is late breaking news so i wanted you to know but dr shireen lerner has been appointed to the arizona independent redistricting commission as of this afternoon she is the appointment made by charlene fernandez of the house and i want to congratulate her you know shireen is well known to the city of tempe she was on her tempe census committee and she still serves on that she was on the parks and recreation committee and is the vice chair currently and she's also the chair of the tempe desert conservation commission she is somebody who's long given to tempe into tempe leadership i'm so proud that someone from tempe you know somebody who is really has an academic grounding and uh and a thorough understanding of equity issues is going to be representing all of arizona on the commission is it's quite it's quite an honor for sharing in quite an honor for tempe so congratulations thank you mr mayor thank you councilworker cubie next up nothing mary thank you thank you so much uh vice mayor keating i didn't have any but i didn't know that dr lerner was appointed to the uh irc i just would like to congratulate her as well she also serves on our public safety task force and is on our um citizens review commission so she's very involved in the city of tempe and i thank her for her service not only to our city but our state thank you vice mayor keaton councilmember arendano savage uh nothing mayor thank you councilmember adams yes thank you mr mayor i'd also like to congratulate uh um dr berner on her acceptance of that very valuable um uh role to play and read redistricting and everything so thank you very much um i would like to also give a shout out to joe forte last week i had the opportunity to meet joe at palmer park where he walks his dog two times a day and he also picks up trash two times a day and that park looks so good as a result i am so proud to get to know all the residents getting involved in our community joe is planning on starting an initiative called keep tempe beautiful it's a non-profit organization and he's looking for residents and volunteers to get involved with his program and will be holding a meeting on november 17th at 5 30 to 7 p.m at kiwanis park so please reach out to joe if you're interested in it and you can go to facebook.com keep tempe beautiful and my second announcement is please vote if you still have a ballot you must drop it off it's too late to mail it so you can go to tempe historical museum and it's the place to drop it off and the address is 809 east southern avenue that's right next to the library easy to find all ballots must be received by 7 pm on tuesday evening you can check on your voting status by going to be ballot ready dot vote so check that out and you can keep track of your ballot which i did and it was really exciting to see it go in and then have my signature verified so thanks and have a good night thank you councilmember adams and just my one quick comment is i wanted to congratulate dr lerner as well for being appointed to the independent redistricting commission it's a great honor uh she's an exceptional tempe resident and i'm very excited for her so congratulations to dr shereen lerner next up item eight is public appearances madam clerk uh any comments for public appearances carla if you're trying to say something your mic is muted alex do you know if we have any uh comments for tonight from on item eight no comments sir okay all right carl i'll do one last check uh eddie anyone scheduled for item a all right well if hearing none uh i'm to go ahead and adjourn the meeting at 8 53 pm thank you very much everyone we'll see you on november 12th goodbye mr mayor