[Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] so [Music] so [Music] [Music] [Music] so [Music] [Music] [Music] do [Music] [Music] [Music] [Applause] [Music] [Music] everybody ready to go all right let's get started huh all right good afternoon welcome to glendale city council workshop session of august 11th 2020. meeting is called order uh we're missing one person so far uh council member el donna president thank you councilmember clark here council member hugh here council member tom chop here house member turner here vice mayor president and uh i'm present everyone is accounted for we do have a quorum we uh can go ahead and just go right into it ms bauer would you introduce item number one please information and discussion on the formation of revitalization districts and improvement districts good afternoon mayor members of the council here today to talk to item number one the discussion will be led by vicki rios our assistant city manager thank you mr phelps good afternoon mayor members of the council uh this item as uh the clerk read is about revitalization districts and improvement districts and we have the presentation laid out as sort of as follows so at the beginning ms camacho is going to give you some background and understanding that the way this is set up is the background information is information that is in common to both revitalization districts and improvement districts so we start out with the things that are in common and then i'm going to take it from there and talk specifically about revitalization districts and improvement districts and then some some differences between the two and sort of how they function and then i'm going to talk with you about some of the specific things in a couple of draft policies which were attached to this item and then ask for your feedback and and next steps i did want to say before we begin and even before miss camacho begins that this is intended to be a a very high level overview of revitalization districts and improvement districts there may be questions today that we cannot answer and also some of those questions will be may be specific to once we actually go to form a district so these are the high level these are the policies that this is not the formation of a specific district so some of your questions if if we sound like we're saying we'll have to get back to you on that is because this is meant to be high level and also we don't it's not the it is not intended to be the formation of the districts it's supposed to be the formation of a policy about districts so i want to lay it out that way and with that i'm going to turn it over to ms camacho good afternoon mayor members of the council the next two slides are background information on improvement districts and revitalization districts that they have in common the districts are governed under arizona revised statutes title 48 the improvement districts are covered under chapter four article two of the statute and the revitalization districts are in chapter 39 of the statute the creation of improvement districts and revitalization districts is a tool that the city can use for developments their purpose is to finance infrastructure within the districts and the bonds that are issued are usually in most cases issued at municipal tax exempt rates the infrastructure can be built or acquired meaning that the bond proceeds can be used to construct the infrastructure or also do the acquisition of the infrastructure the public infrastructures are usually owned and dedicated to the city and the city must maintain those infrastructures the process for the creation of an improvement district and revitalization district is very similar there will be an application process they need to submit an application along with an application fee the application will be reviewed by the city spawn council which is currently greenberg traurig the city's financial advisor which is currently rbc capital and also city departments like the budget and finance department and any departments involved in the negotiation or the process for the development usually the improvement districts or and revitalization districts will be accompanied by development agreement that city staff will review for council consideration the districts are formed by an action of the council and the districts assess the properties within the district to create a dedicated source of revenue to pay for the bonds that the districts have issued and with that i'll turn it over to ms rios for the details and the policy itself okay so taking a little bit a deeper look i'm going to talk first about revitalization districts so if the city forms a revitalization district by taking that council action it becomes a legally separate government entity so it's kind of like an independent government with some limited powers that is within the city's boundaries uh because it's legally separate it would have its own board of directors and that board of directors consists of the property owners in the district and in that case because it's legally separate again the the rd i'll just refer to it as an rd issues its own debt the debts in the name of the rd and then the rd is responsible for assessing all of the properties within the district collecting all of the ta all of the payments of those assessments and then paying the bondholders and they're also responsible for handling any defaults so if there's a non-payment by one of the properties in the district then they have remedies including foreclosure and other things like that to handle those defaulted payments one of the things that's a little bit unique about revitalization districts is that in the language of other districts in title 48 and in the language of municipal improvement districts it if it refers to infrastructure that is public but in the revitalization districts it drops the word public so it contemplates the ability to build infrastructure that is not public and again because it's separate from the city this debt would then not appear anywhere on the city's financial statements would not be part of our balance sheet and it's not a debt that we're legally obligated to pay next slide although as i said it contemplates building infrastructure that is not public any public infrastructure that it does build city infrastructure would be dedicated back to the city and again that would be laid out as part of a development agreement because it's separated the rd has the authority to establish the amount of debt that they issue and then they are responsible for responsible for determining how the debt is going to be assessed and paid back proportionately to all of the properties within the district and it should be based on the benefit that those parcels each receive from the from the infrastructure but that's not up to the city that's up to the rd to determine that and work through all of that now there are some risks also associated with the formation of a district some of these it doesn't mean that they're listed here but it doesn't mean all of them are are real or likely to happen but they're things that in looking at the policy we have to understand those items so the first one again is because it's completely legally separate there could be some type of wrong act of the district or its board that comes up and and someone alleges that they've done something wrong because we have an application process and we're looking at the council would be looking at vet sort of vetting out the people that are establishing this district again that may be somewhat unlikely but it is something that we have to consider there's also a risk that the rd forms or the council forms the rd and the rd goes to do its business but it never builds the infrastructure or it just has some level of non-performance again through the application process we'd vet that through and make an informed decision about whether this is the right thing to do for the city and of course once they issue a debt there is some risk that they would not pay the debt back um and i'll talk again in a minute about some other things that we would do to mitigate that risk and then in the long run there can be complaints by the property owners within the district because as you realize then they're paying a different assessment that other properties around them are not playing paying so you do you may get complaints by the property owners that are saying why am i paying this when my neighbor property next door is not paying that and again all of those questions would go back to the district that's their business to let their property owners know what their obligations are when they're buying and selling properties within the district so because of that and because there is some risk albeit may be mitigated in many ways we recommend the city put things in place to help protect itself against those risks the first is indemnification by the property owners so they would indemnify the city against anything that is not covered by their assurance insurance excuse me and they would provide we we anticipate some type of collateral acceptable to the city to set aside for that purpose so that in the event there is something that comes up and it's likely that even though it's separate someone suing the rd would would probably enjoin us into that suit and this would be set aside they'd be indemnifying us against that and then you'd have a set aside to help the city defend itself if if in fact that happened and in addition to that we would as part of the policy require that the district have insurance against anything that could happen and name the city and its agents and the council and everyone else as additional insureds again these are things done to just mitigate any risk to the city from this entity that is then operating i'm going to move on to re excuse me improvement districts and again they have a lot of similarities with revitalization districts but these are the key differences an improvement district acts as an agency of the city and is not a separate legal entity it doesn't have its own board of directors and so the council takes any and all legal actions on behalf of the district in the case of of an improvement district the city is the entity that actually issues the debt to purchase the infrastructure or to build it and um it can have an impact on the city's credit rating although um because you have a dedicated revenue source that's coming from the assessment on the properties it's it's reasonable that you could explain that to the credit rating agencies and as long as they felt comfortable that that that that revenue source was sufficient to pay the debt it shouldn't impact the city's credit rating much however you don't want to just go again you have an application process you don't want to do a lot of them in a lot of high debt and so we would be looking at that any time that we wanted to form one this debt does appear on the city's financial statements but as i said it appears on the financial statements with a dedicated revenue source to pay for it from the assessments on the properties the city then becomes responsible for assessing the properties and again based on the benefit they receive from the corresponding infrastructure there's an engineer that helps with the analysis of that and determines what the benef the proportionate benefit is to each property the city collects the payments and would pay the bondholders on behalf of the improvement district and again what is unique about an improvement district is if you have a default by one of the members uh or owners within the improvement district then the city has to pick up and begin paying those assessments until they can um sell the property so that a new owner takes over or until they could foreclose on that delinquent property and sell it um for the uh to make up for the assessment payment mayor well who would foreclose i mean would the city do this in second position on a piece of property that was already encumbered mayor members of the council um in most cases the mortgage lender again because this property is going to be an improved property they'll step in and pay off the assessment and then foreclose themselves the city has the ability to do it but in my experience it's unlikely to get to that because the value of the property itself and the and the other improvements on it make the fir the mortgage holder want to step in pay and get the city out of the way mayor so is this like a tax lien where it's in first position or it's in second position i'm going to defer that to michael bailey mayor council my understanding is it's not a primary lien you'll have it's not the equivalent of that but it'd be a secondary um okay and with regards to whether or not there's any sort of deed of trust or any other kind of investment element on that that would be subject to how that was arranged so in terms of whether it's primary or secondary to a mortgage um it would all be dependent upon how that was structured but i my understanding is that we it would be a secondary but understanding so the most important holder doesn't have to do anything if they don't want to then but to vicky's point understanding that it is improved property and what as a matter of practice what happens is that the mortgage hold is that the bank actually steps in and they foreclose at the same time from a matter of practice standpoint but the so mayor i'm sorry i'll go through the chair but there's no obligation by anybody in first position to do anything other than foreclose i'm i'm i'm asking if there is or there is pursuant to the policy there's not but that would be something that we would work through with the individual where we would establish rights of priority um when we would work with him to form the district okay that's what that was my question though so this isn't like a tax lien where it's it gets paid first it's not going to be like attack okay no all right thank you mr milner yeah that was the kind of follow-up i want to do so does the county assessor not assess this this particular tax mayor members of the council i can answer that question so you have the option um as a city of asking the county assessors office to do the assessments for you but technically they're still your assessment or you can do them yourself so the city can can can send out the assessments and collect on them or we can do it through the county assessor's office either or just a follow-up to that so then if we do have the accounting assessor and that would be my recommendation then it would simply be part of the tax bill that they receive each year and if they fail to pay their taxes then those liens are sold and then the people to buy those liens have the opportunity to foreclose to collect those liens but we get our money either way mayor members of the council that that's that is effectively how it works correct thank you uh let me see in the case of an improvement district um all the infrastructure that is built or acquired must be public infrastructure again um there are um some risks associated with them some of them you've already named in terms of properties that may default and other matters so in this case also we would have indemnification from the property owners to the city for all of the matters related to the improvement district just to protect the city from any um any problems within the the district this one okay sorry so in any case i'm going to go back a little bit now to the specific policies for ids and rds that as i said were in draft form attached here and as i talked about a little bit earlier the formation of an rd or an id is always at the council's discretion so while you may have a policy in place each time there's a proposal for one of these districts it would come back to the council to decide if that's what they want to do mayor thank you mayor uh in rega with regard to the rd revitalization district um if that someone applied for that and was successful went through the council would would they have to follow our general plan or create a new general plan i'm going to have to defer that also to mr bailey mayor and council they would they would follow our general plan is what the intent would be and understand some of the questions that you would have would be addressed in the formation documents but for the most part they would follow our general plan but to your point if there is something that the council would require with regards to some sort of land use that would be addressed in the formation documents so if if we were to adopt this would we have to put in language as such that mayor councilman that'd be a case-by-case basis thank you okay so um in the policies again now i'm going to kind of tell you back and forth the differences between the two policies i've already talked the differences the main differences are the differences i already talked about but here are a few more so each type would have application criteria and for the rd we put that policy up that it would be for substantial commercial and industrial development that is beneficial to the city but for the id we expanded that in the policy or the recommended policy to include potential for multi-family neither the rd policy or the id policy at this point contemplate using it for single-family residential types of homes there is a fee for the application again in the draft we've set that at forty thousand dollars and then we've required within the policies that the applicant paid the cost of uh all of the city's costs for financial legal and economic experts did we have a question mayor yes we do knock into your microphone or turn it on one or the other uh i can turn it on sure um where and where under the rd does it say that what the fee is because i'm looking for it and i can't find it and does it matter i mean is it does it have anything to do with the size and the scope of the district or is it just a flat forty thousand dollar fee no matter what uh thank you for the question mayor the um the application fee is on the bottom of page 4 article 3 section 3.4 and the answer to your other question it is a flat fee however the complexity of the rd or the id and how much staff time and that that it takes to do proper analysis and make a good recommendation to the council would be covered under this second item that i started to talk about i hadn't quite finished regarding paying for financial legal and economic experts so the way this would work is that the applicant would be required to put down twenty five thousand dollars towards our costs um for things like engineering estimates which are required by an rd that analysis i talked about earlier of the each parcel's relative share of the debt and the costs and um and um and that type of thing and any other costs associated we have even informing these policies we have used our financial advisors our bond council to help us with this and so those types of costs would be covered in that portion it's a twenty five thousand dollar deposit that we continue to draw down against and the our id or rd is required to replenish until we get to the formation so hopefully did that kind of answer your question or kind of mayor if i could um so now i switched over to the id there's uh there's no basically the id's needs to be managed by it's managed by the city essentially right mayor members of the council that's correct is there a management fee mayor members of council that's the last item on this bullet point which is we can add something to this assessment to cover the cost of billing and managing it and also we made a put a provision in the policy for one-time cost so for example if we were to decide to bill it ourselves and we needed a billing system we have a provision in there for one-time costs of putting in a new billing system if we were to do as the vice mayor talked about earlier and pay the county assessor to make those assessments for us there's probably a fee associated with that and so we can then build that into those assessments is anybody from rbc here mayor membership council uh mr freune was supposed to be here with me but he had another uh conflict he is not available okay mayor i i can somebody tell me what the urgency is because this is on the voting agenda tonight so um and rbc is not even here for us to ask any questions now and i have quite a few questions um but what what is the urgency why are we first seeing this right now and being asked to vote on it in a few hours this evening mayor members of council i did want to say i i believe that um i have michael caffiso from greenberg trowering here but i haven't seen him so lisette went to go find him he's supposed to be here okay i'd rather like to know what the urgency is i can i can answer that so uh we have the the part 303 development is um they have they have they're going to be requesting of the council to consider a formation of an rd at the at the next uh business meeting they're they're already wanting to go vertical and getting construction so their time is of the essence for that project and so what we want to do is to hopefully accomplish getting the the tool there together uh tonight and then in two weeks we'll we'll have the framework uh for the actual rd uh that we would have for the council for consideration so mayor members with council as i said we do have michael cafiso here he can help uh i think most of the legal questions michael bailey answered but if you have additional legal questions mr caviso is here to help assist me in answering those there's several questions for you councilmember thomas shaw thank you thank you michael um so where how many of these are in use in arizona and who's because the the staff reports said we basically used uh combined policies being used in other cities in the state i'm not familiar with this anywhere in the state so what other cities are using this um and how and how is it working in those cities uh mayor members of the council i apologize i was sitting in the other room didn't even know you guys needed me in here so i'm michael caficio with greenberg charred glad to be here uh even under these circumstances um let me let me try to clarify one thing this stuff is really technical and staff's done a great job pulling all this together trying to figure it all out and everything else under you know the current pressures but i want to make clear that and this is i'll answer your question as well but on an unrelated issue that came up earlier and it wasn't clear to me uh that it was made clear the the liens for the assessments are our first liens on the property they're super statutory liens they step in front of everything including mortgages anything else on the property they're co-equal with property taxes but property taxes get paid first so if i own if i'm my property is assessed with a with an improvement district assessment or a revitalization district assessment and i don't make the payment foreclosure occurs with regard to both property taxes and assessments um but property taxes get paid from first monies in and then assessment get point payments get paid with second monies coming in so i wanted to make sure that that yeah i appreciate i appreciate knowing that because the more the mortgage has no responsibility if you're not in first position to do anything so yeah but i think the point that michael bailey made and i think vicky made as well as a good one which is typically in these situations especially on larger assessments you've even on smaller ones where you've got homeowners for instance you've got a lender in in second position and the lender as is required by statute to be notified anybody that has an interest in the property is required to be notified of the amount of the of the foreclosure of the assessment so typically the assessment lien is going to be a smaller portion of the total amount that's been borrowed against the property so the lender lender's going to step in inevitably and make the payment because they don't want to see their position wiped out for the sake of a much smaller lien so so again i think that's that's the important point here um to your question um there there's only been one revitalization district that's actually been formed and done in financing in arizona um that was for a kind of an unusual project up in cave creek um i could go into details of that project if you're interested um there are there several have been formed in the city of benson for a very large project that you may have read about in the newspaper called vignetta there's a lot of controversy about the revitalization districts down there that project has been slowed down by a lot of environmental and other sort of issues those revitalization districts have been mothballed um i think it's fair to say that a lot of cities are looking at using revitalization districts i think staff's aware that the city of buckeye has a policy in place for use of them very limited use of them it coincidentally i had a call from a client of mine this morning a city up in yavapai county asking about use of revitalization districts it's a city that's used community facilities districts in the past okay thank you uh let's see um the indemnity i'm particularly interested in the indemnity because it's not specific at all at least what this draft policy says it just says that there there will be but who's and the city determines it but who determines it and if you end up you know in a litigious situation um uh you know we could end up how much did uh michael how much did we did fiesta cost us three million dollars somewhere in the mayor and council with regard to vs it was approximately three million dollars and if i can i guess lead to your question with regard to indemnification i think that's we recognize that that will be something that's required to form one of these districts the amount of that would be most likely dependent upon what is being proposed in terms of the infrastructure how it's going to be financed there's elements of that the details will need to be hashed out probably in greater detail with the specific development but i think the greater issue that exists is recognizing that we will need an indemnification and some set aside as part of your policy mayor so basically it'd be arbitrary essentially i mean unless we have a policy that says whatever the um the percentage or whatever the value or whatever that we're basing what the indemnity would need to be then how is it not arbitrary mayor and councilman it it is arbitrary but it's also it it's it's not arbitrary to have the indemnification or arbitrary action i'm talking about the amount though but the amounts would be dependent upon it would be very project based because when you start to get into the circumstances of what is going to be the project um how is it going to be financed those are questions that will come forward noting that your po well noting that your policy and i guess one of the examples would be is if you're only working to put in infrastructure of a small amount of a small area that would be different than something that's larger more money more risk and so that's where the arbitrariness of it comes in i think the critical component of it is is that we would be asking for indemnification to protect the city in that regard yeah thank you mayor i understand that but who who who would determine what amount would be appropriate marin council would come to the council in the formation documents so the council so they would that be part of the application they'd say this is the indemnity that we're offering or mayor and council you would see that in the formation documents it's not what we they'd be offering it would be the negotiated amount that the council would agree to believing that that's sufficient to protect the city okay mayor members of council can i maybe if i could maybe add on to what michael has said each rd or id will be unique to itself so to predetermine in the formation legislation that allows the city to use this tool would be the inappropriate place to set a limit because you might have an rd that's just maybe only just roads really really simple very really low risk to the city and so you would have an identification and insurance requirements specific to that project you may have an rd district that is significantly more risky has more elements to it so part of what the staff would do in either those two cases low risk versus high risk they would come to the council with a proposed identification and insurance requirement relative the risk council then would would look at that and make the ultimate decision as to as to whether or not they feel the city has been protected mayor so who does the risk assessment would would our bond council i mean who's conducting the risk assessment the mayor members of council in the current uh as i mentioned to you we have the uh the park 303 going through there we have been we've have a a series of uh consultants and attorneys that are working with us when you see that draft uh formation that we'll be bringing for consideration of the council it will have been formed by our consultant team um to to make those kind of recommendations and to vet it out so we've mayor i'm sorry we've we form it and or do they they we work together with this park 303 to come up with their i mean don't get frustrated with me i mean you're asking us to vote on this tonight i've never done one of these before i don't know how it works and you're acting annoyed because i'm asking questions i don't really want to understand what we're i'm going to have zero time to digest this and understand it you're in council member i'm going to try and take you through like the practical process of sorts and michael correct me which he's the expert but i'll try and break it down a little bit the policy really talks about the process to apply where we'll use the experts we'll analyze what the request is we'll process our recommendation for the council it then comes to the council this could entail everything from the formation document to possibly a development agreement and any other document that we may believe necessary to protect the interests of the city but that comes to the council and the council is the one that forms the district so some of these questions that you have on specifics yes they're arbitrary in terms of the resolution but that question is going to be answered by you the council what we're saying though is that that's a question that's going that you're going to be facing when these applications come through so with regards to indemnification you're going to be facing the question of do we want indemnification and the policy recommends yes we require it and then the second question is is well what would be the appropriate amount and when the council if they agree on what the recommended amount is is that would be most likely set forth in a development agreement or the formation document which would be required then of the applicant to provide before or in parallel with the creation of the district so so it's it's what we're really talking about here today with regards to these policies are these are the steps if you if you if you developer a want a district these are the steps you're going to need to fill these are the questions we're asking of you and these are the questions that the council are going to be making a determination on when they form your district and we'll establish the answer to those questions when the district is formed did i miss anything michael no mayor members of council that that's a good explanation of how the policies and procedures work one of the requirements in the policies and procedures as part of the application process is a fully negotiated development agreement a component of that development agreement will be the indemnification it might be helpful if i give an example for the council person so so we can understand this um the the peculiarity but from district to district for instance we have some special districts where the major developer is say uh dmv the bennett doran companies if you know them at all or or shea homes or marital companies that have big balance sheets robust balance sheets long-term history of being around taking care of their their liabilities we have others for instance where the developer land owner may be a single purpose limited liability company we look at those two very very differently if it's dmb or shea we're likely to say we'll rely on the indemnification just from them as a personal obligation because we know they're not going to step away from a multi-million dollar liability because they're a public company they've got a lot of assets you know they've got a long track record on the other hand if you've got a single purpose llc with just the ownership of the land you're going to say okay that's not enough we're going to need something else and in those cases we'll look at getting cash deposits or letters of credit and to the manager's point we'll look at the project we'll look at the complications of the project we'll look at potential risk everyone is is a little different um you know sometimes it's just a simple um and you're not allowing this in this case but in other cases it might be just a simple residential project where there isn't a lot of risk other cases it may be a more complicated you know mixed-use master plan community with all kinds of issues so each one will stand on its own the landowner developers are going to have to defend what staff believes is the appropriate amount of indemnification thank you mayor so um can so in a re uh the rd you can do private basically private infrastructure you can use that to do private development basically members of the council i i'll take that question if if staff wants me to um there is a little bit of controversy on that issue um there are there are recognized law firms like mine that are willing to give unqualified opinions that yes that's the case and we have included in the policy as part of the requirements that if quote unquote and that's the problem there's not a clear delineation in the in the statutes about what's public and what's private uh but we're requiring that bond council that uh assists in the financing provide an unqualified opinion uh with this city being an addressee uh that any infrastructure that's financed is legally uh legally able to be financed okay mayor i have one more question and then all um so at some point i guess and according to the city manager in two weeks you're going to be we're going to be bringing us a proposal for a rd are we going to have the benefit of having our bond council to directly advise the council in the public meeting on the agreement we're going to be asked to vote on because i don't know how much time we're going to even have to review it before we're asked to vote on it but i would like i think it's only fair to have our bond council directly advise the council who has to make the decision um on the on the specific agreement that they put in front of us i don't i'm no expert in this and i don't know that any of the rest of us are either so mayor members of the council yes that's why we have mr caffiso here and um we we again as michael kind of mentioned we were putting policies in place today and those policies contemplate an application we actually do not at this time have a an application that matches these policies so it is the intent to bring a project forward as soon as possible but with the policy in place then we'll get all of those things that are required by the policy and work through that process that that could be taking place within the next couple of weeks it could take a little bit longer i can't say for sure but in any case yes when it comes forward we are working extremely closely with um with mr caffiso our bond council and also with mr freune from rbc to look at all of those elements and work through them and they'll be here to advise you okay okay i mean specifically mayor on the on the at any meeting we're being presented with with one of these for approval we're going to have bond council here to advise us in the in the meeting where we're being asked to make a decision on and i mean that's that's part of how this works is that right yeah mayor mayor and council um to reiterate what mr kadiso said and and i'll be the first to say this i'm not an expert in these and that's one reason why our policy requires the application um the individual applying to provide a deposit for the use of outside resources on behalf of the city so we will use outside bond council we will utilize an outside financial assistance and assistance and to the extent we need any other expertise with regards to the formation of this we will utilize it noting that the applicant will be the one paying for it mayor just so like but i want to clarify because there's been multiple times where we've engaged a consultant and the council never had the benefit of hearing directly from the consultant and i want to know that's what i want to know is that the that the outside counsel will be available to the council not just the staff to advise us directly that's what i want to know mayor and councilmember i will commit to you that i will make sure assuming his calendar is available that mr caffiso will be available to the council before during and after consideration of these items thank you yeah one just one question jamie that'll go to you so we would workshop this before we would take it to a vote anyways so we have a really good chance to everybody understand it i think all of us would want that mayor members of council that's the intent correct perfect mr aldon thank you mayor um i heard you earlier say miss rios correct me if i'm wrong that with regard to an rd if if approved it becomes a government entity of its own am i correct or incorrect well since we have mr caffiso here i'm gonna let him answer that question too uh mayor members of council that's that's correct it becomes a separate political subdivision separate existence just like the city the school district that covers the city the the county it's a separate political subdivision yesterday thank you for that and that was my concern so with that said within an approved district then can that new government enact its own zoning and could they complete an intimate domain on private property within that district mayor members of council that's a great question no they do not have eminent domain powers they don't have police powers um they all they the only essential governmental powers is the taxing power okay and then the question for the zoning they don't enact zoning orders no they're subject to cities only thank you thank you mayor thank you okay i think it's back to me let me get to my correct slide here sorry um let's see i left off i think on the id does allow for the city to recover its cost of billing and managing the assessments and i think we had already answered that also as a question um the uh the other difference in um in the id and the rd and in the policies um because the rd is independent the amount of debt that it issues it will determine the amount of debt that it that it issues in the id policy we recommend that we put a limit on the amount of debt by putting in a four to one value to assessment ratio um so that kind of works like if the parcels if a particular parcel share of the assessment is and i'll just use a number that's easy because math you know um is a million dollars then the value of that would have that parcel would have to be four million dollars that's to protect the city again so that if something happens we can uh recover that uh investment and all of these things so that's in the policy um but as again as michael um well both michael's talked about the specifics to any improvement district would come forward when you form the actual did i district that i turned it off again um on what you just where you just talked about the one to four on the improvement districts on 1.8 it says work must be on property owned by the city mayor members of the council that's correct it's public infrastructure so we would when we uh build it or acquire it we would be obtaining both the infrastructure and the underlying land the same way we would if we had a developer dedicate a street to us then it would become ours thank you um council member tom truffle asked a question about this earlier but these policies we did work with mr caffiso from greenberg traureg our own staff the city attorney's office budget and finance economic development and the city manager's office to draft them and as we talked about earlier they are on the voting meeting for uh tonight now there is one item that i wanted to um oh and they can be while they're uh being adopted or they can be adopted or they're contemplating being adopted this evening they can be revised at any time um if something comes up through over time that we want to or that you want to revise about the policy they can just be revised with direction of counsel there is one other item on it in the policy for revitalization districts on the first page item 1.7 said an rd shall not levy a property or excise tax we did hear back from the development community once these policies were out there and they um have a concern about their own operating costs the same way in an id we would have some costs associated uh with the administration of it and the the statutes allow for them to levy a property tax limited to cover recovering their uh operations costs so we're recommending actually changing that item 1.7 to say an rd shall not levy a property tax except as specifically authorized pursuant to arizona revised statutes 48 68 17 which is in that portion of the statute it talks about the limited ability for them to levy a property tax but it and then an rd shall not levy an excise tax and so we're recommending that change to the policy and i do have an amendment to it available for um mr melner has agreed to potentially bring that forward uh this evening as an amendment to the policy thank you i have two questions that might be for our council actually um they're a little more technical one is um so an improvement district i've seen improv like i've seen street improvement just improvement districts that are specific for a specific thing not just so would would every other would this basically is this like a catch-all for any type of an improvement district or would like if we wanted to do a street improvement district at some point for some something that was happening would that have to be another another improvement district that we would have to form mayor and council there are other districts that are available in state statute so these are just specifically directed at an improvement district in a revitalization district but there's other districts including street lighting districts community facilities districts they're all delineated i know i wouldn't be the expert in all them but there's there's other special purpose districts that are allowable in state statute but we're not talking about those here today i understand that but what i'm asking is because this is an improvement district why then i guess what what is eligible under just a general improvement district then could you use this for a street improvement or would you have to do a street improvement district uh mayor members of the council uh there is a definition of the statute of what's defined as work which an improvement district can um can undertake um it includes pretty much anything you could think of in in the context of publicly owned public infrastructure okay so water sewer roads uh you know street and gutter sidewalks um you know we've we use them pretty much for any that sort of stuff it's not a real broad statute it dates back to the teams it hasn't been updated very much so it doesn't cover things like you know public buildings and municipal comp or sports arenas not that you need another one of those but those sorts of things so it really is it really is it really is uh you know real public infrastructure sort of projects uh we used we've used them for some flood mitigation uh that sort of stuff all right so essentially a catch-all then sort of yeah but it's they're not as counsel they're not as broad improvement districts are not as broad by any stretch of the imagination as a rule as a revitalization district or cfd revitalization districts and cfds have a concept of infrastructure that includes a lot more than what an improvement district does so they can do public buildings for instance um there they can do multi-purpose sort of uh facilities they can do parking you can do parking with an improvement district it's a little trickier so but in the in the spectrum of things if you want to think about it this way improvement districts are over here and revitalization districts and see if these are over here this being a little bit more conservative in terms of the different kinds of uses that you can use whereas in cfds community facilities districts for those who are not aware of the acronyms and and revitalization districts can do quite a bit more in terms of infrastructure okay thank you um i'm sorry i had one more question maybe one more question um so do you do you believe this is the best type of a tool to accomplish this type of thing or are there other mechanisms available to to end with the same or similar result uh yeah mayor members of council um this certainly uh that's a tough question between cfds and revitalization districts but i think staff has taken a really hard look at this and i think this is the direction they think is best especially given the nature of projects that are uh are being suggested as as as potential uses for for these kinds of districts so um so that's not a it's really hard to evaluate again it's kind of like what you asked me about indemnification it's really kind of a case-by-case basis what what makes the most sense you know we'll look at some projects and say that's an improvement district project because the city gets more benefit out of it and the city's willing to put that debt on its balance sheet because maybe it's going to get sales taxes i can give you some examples of that there may be another project that is not so much one that you're willing to take any risk on you don't want it on your balance sheet so you use one of the alternative districts like a revitalization district or a cfd um cfds have been very successfully used for instance for mixed-use master plan communities you're familiar with a lot of them out here in in this part yeah so so they're more commonly used with that sort of uh with that sort of a project again revitalization districts are are relatively um the statutes been around for for a lot fewer years um and they're just starting to be uh of interest to developers and and that's why this one is that's being suggested here mayor if i may add to that um i just i think we started out by saying this but i'll just say it again this is a tool for the council to have in its pocket whether we end up or whether you end up using it or not then becomes at your discretion upon the formation of a district but the policy is just there to create the to create the tool and the process and the procedure for then for you to then contemplate it sometime in the future so mayor i have i'd lied i had one more question so if it would how what about procurement then because if it's if it's basically public then does any of that come into play anywhere or are any rules about how um the property owner puts together their infrastructure do they have to follow any specific set of rules for that mayor members of council these are governmental entities they're subject to the same procurement that any other governmental entity would be subject to um and that's an issue that we will look to the the bond council firm which won't be us in the case of for instance park 303 to give opinions about to make sure that any infrastructure that's either required or finance is properly procured okay how does that work if the project's already underway which i think is the case here the mayor members of council we've had discussions with i don't know how far we should go into this given the subject of the of this work study i don't want to get out of line with open meetings um well just really quick if i may we to to vicki's point we don't have an application before us if an application comes before us that's a question that we would probably dive deeper into uh at that time so okay if if you could just reserve that until then that'd be right public procurement policies uh are in play that is correct all right thank you mr milner uh thank you mayor uh i just want just a couple points of clarifications earlier it was stated that there aren't very many revitalization districts that been formed is that true of the uh improvement district as well uh members of council improvement districts there have been around since the teens as i mentioned there have been lots of them and yeah there's a robust history of use of improvement districts in arizona okay thank you um along that same line uh the revitalization district requires an application from an entity or an individual is that correct that's correct according to your policy accordingly according to this draft policy yes it would for an improvement district can that same process be put into is that same process therefore say there's a neighborhood in a in the city that wants to put in curb and gutter for example and they're willing to go through this process is that something they would apply or would we simply they would they would just talk to their council member and say we'd like to do this can you bring it to council how would that work mayor members of the council if it's the formation of one of these districts then then the two policies there's a separate policy for revitalization districts and municipal improvement districts and they both have an application process so if if the district wants to do that then or they want to form a district to do that then they would go through the same application process if the council person wants to help a neighborhood get curbs and gutters that might be a different question than the neighborhood wanting to form an improvement district along that same line if i'm a mayor um so does the can the council initiate that improvement district or does it have to be a citizen entity application process members of council it's always the council that initiates the process based on work that staff would do in advance i i should tell you um because of an unfortunate change in um legislation several years ago it's really not possible anymore to do the kind of improvement districts you're talking about unfortunately so it'd be impossible to go into say a neighborhood with 100 homes and try to provide you know curb and gutter um they were just an unfortunate amendment made to the statute that requires that that any improvement district that we would do would require what's known as a waiver agreement and once you get over say more than half a dozen property owners it really becomes impossible to do that so until we get the statute fixed the ordinary use of improvement districts for say curb and gutter or street chip sealing and that sort of stuff which we used to do a lot of isn't possible any longer that answers that question thank you mayor thank you and first off i'd like to thank councilmember thomas for doing the heavy lifting on the questioning today um i thought those were great questions and i really appreciate you asking him and the answers that we received um as was explained the revitalization districts are legally separate limited governments of their own and self-governed in that respect the improvement district was described as in essence the city agency is there any mechanism under which the members or the affected parties within an improvement district are organized among themselves or speak as a single voice or are they just independent entities consistently uh mayor members council i think i'll answer your question right but um the way the policies and procedures that staff has drafted uh are set up there there would be a single individual who would represent the property owners within the improvement district as the applicant so that there would be one one entity one individual who would basically be responsible for all the applicants or for all the property owners for the improvement district uh mayor well thank you for that and then who would determine who that individual is is it just the most active person up front can that person be changed over time if the district would rather have different spokesperson the way i would read the policies and procedures is that that would be left to the property owners so there you know if there was a half dozen property owners we would we requires part of the application process that they determine who the applicant would be they would all agree that that person was going to represent them as the applicant and if they went to change that while the policies and procedures don't provide for it we would we would suggest to staff that they need to get some written documentation that there was a change in the identity of that person mayor members of the council council member turner are you talking about in the application process are you talking about once the district is formed um i'm more concerned about once the district's formed i assume the application process is fairly short but if um but even really during the application process the property could get sold or a person could pass away or any number of things so we might need a contingency yeah sorry i didn't answer your question then the answer is that the assessment runs with the land so once the assessment is on the property you buy it subject to the assessment unless you pay off the assessment so it would it would be a matter of record and just like taxes you'd step into the to the requirement to pay the assessment and mayor if i could add to that so you're asking about i think specifically about the improvement districts so the improvement district effectively the council becomes the board of that improvement district in the revitalization district it will form its own board and then as properties change hand there's mechanisms for the people to yeah there's actually an election process so the property owners actually elect new board members to run the district it's all property property owner driven okay and mayor if i may so thank you for that and um and i understand how it is for the rds but on the id there's is there simply no need or occasion for the property owners within an improvement district to speak with one voice may remember the council that's a good question um the basically improvements are kind of closed in closed-end vehicles once the project is financed um they really they really don't have any purpose and they they don't exist anymore it's it's really just a it's a mechanism to finance improvements over a specific area the the property owners again because of this unfortunate change in the statute the property owners are required to sign this waiver agreement and once they sign the waiver agreement it gets recorded against the real estate as well and it runs with the land so everything in the waiver agreement just like the assessments follows the follows the the ownership of the property so if if i sell to you and there's an assessment and a development agreement you're now subject to the assessment and the provisions in the development agreement and and um once the project is financed and built the the improvement district really doesn't have any function anymore it's not a it's not necessary it really is just an entity to build or acquire a project thank you and mayor so that then dovetails into my next question is that are these districts strictly for the initial construction of these improvements or is there any duty to the district for maintenance over time uh mayor members of council in the case of an improvement district there are city improvements and so you accept maintenance immediately in the case of revitalization district or community facilities district that'll be the subject of the um development agreement so depending on the nature of the infrastructure if it's if it's say a city street likely the city would would end up with ownership and maintenance responsibility and some of these we do um the the cf the revitalization district or the cfd may pay for enhanced maintenance say of landscaping or something else if they want that on their roadway um in other cases back to a council person's question of earlier if there's quote unquote private infrastructure that's financed that infrastructure may go from the district to the private owner user of that infrastructure very good thank you and mayor if i could continue so it's been mentioned that for the improvement districts the debt is shown on the city books we carry it um and so does that then mean uh does that reduce our ability for go bonding and other bonds that we may have plans for beyond whatever improvement districts we have mayor members of the council it does not impact your geo bonds because they aren't geo bonds they're considered to be uh assessment bonds they're they're completely they have their own dedicated revenue source um and so both the revenue and the debt will appear within the budget um i'm sorry i think i forgot the last part of your question no i think you got it okay so it won't if i'm hearing you it will carry the revenue and the debt and and that these will not restrict our ability um either under statutory limits or under the bond market these wouldn't limit our ability to do other kinds of bondings that we may have planned mayors members of council they do not count against your statutory or constitutional debt limits so again if you have you know a million dollars worth of geoauthorization and two million dollars worth of capacity under the constitution and the statute statutes if you issue a half million dollars worth of improvement district bonds they don't count against any of those three categories to be transparent as to your question though um the the the buyers of geo bonds are going to look at the other debt the city has outstanding um in the again we're getting into a lot of detail here but in the case of improvement district uh bonds if a property owner doesn't pay their assessment um the city's required under state law to step in and make a short-term loan until we find a buyer of that uh that unpaid assessed property and so if you add a lot of assessment bonds theoretically the rating agencies and investors in the city's bonds are going to look and say boy these guys have a lot of assessment upon debt outstanding we're concerned if they had to make the short-term loan how it might affect their their financial creditworthiness but we don't typically see that being a an issue financial advisors are very careful about making sure that there are limitations appropriate limitations on the amount of improvement district debt that can be incurred and that the risk of non-payment is is to the extent it can be is is protected against well thank you so it depends again this is why when when we go through one of these we would work with for example our financial advisor from rbc and mr caffizo and mr um dehaan from greenberg traurig to explain to the council at the time this is the potential impact as he's saying you know we we don't think for um you know a limited number of improvement districts it would or or a smaller dollar amount it would have a big impact but if we started to do a lot of them in high dollar amounts then that's something we would have to explain to the rating agencies and get them comfortable with the facility city's ability to carry um as he said those assessments if there were a default so it is a case-by-case basis and you know we'd have to go through the application look at everything look at the cost benefit in terms of the amount of revenue a potential development brings in and advise the council at that time as to whether we think that that's you know the best in the best interest of the city mayor thank you vicky so what i'm hearing is that it's incumbent upon this council and future councils as well as the staff and future staff to have that discussion on every one of these that comes forward the consideration of how does it impact or does it are the future bonding capability of the city i mean what's the risk level and you know i would hope that that would be you know one of the boxes that gets checked in the presentation of let's have this discussion too um so that we're open about that um the uh my next question has it's okay so my next question is it's been said that well the council would decide what the level of indemnification is that would be required well i'm pretty sure the council won't know so how does you know the council decides it but how is it determined um is there a formula for it is it gut is it a mixture what's somebody's going to make a recommendation to the council but how does it actually get done uh mayor members of the council again we'd take a look at the application we would take a look at the things that mr caffiso talked about which is the i guess i'll call it somewhat the credit worthiness of the applicant and whether they're you know a larger company lots of assets smaller companies single purpose llc we'd be taking a look at all of those things and and as well as the size and complexity of the district itself and what's involved and the amount of infrastructure infrastructure we would get advice from our own insurance brokers to see for similar types of development what they recommend in terms of insurance limits we would get advice from people like mr caffiso and kurt freund from rbc and come up with a recommendation for the council based on that information and consultation again with mr bailey um but ultimately as michael said earlier it is up to the council to decide but we would pull together that information we request in the application a lot of economic data for these these entities and then city staff will do their best working with those experts to advise the council and then it'll be up to you thank you and mayor if i can continue i want to make sure that i heard correctly on this that our the proposed policies are in fact modeled under modeled after policies that are in place in other jurisdictions we may have customized them but we have is there so we're doing that is there a standard you know model indemnification or not indemnification industrial or improvement district policy and a model um revitalization policy out there like there's you know model statutes and other things like that may members of council um i think the ones that staff have drafted are the best ones i've seen we took the best of of everybody else's and basically came up with what we believed would be appropriate i'll tell you from 30 years of experience in arizona there are very few cities i frankly can't think of any other cities that have improvement district policies um so i think it's a good idea uh to have them it's just we just don't get a lot of requests for improvement districts the revitalization district policies paired a lot of what we do with community facilities districts the exception is that because you you are not part of the board of a cfd you have limited involvement in what you can do so we tailored the rd policy with that in mind so so so again i i don't think there are um you know standard forms or model forms for these things but but i think a lot of thought was put into what staff did on both of these okay thanks um and then the last one i have at the moment um is it's kind of the overarching question that i don't think we've addressed for our benefit but particularly for the our public's benefit and that's the why why would a city want to have these policies what can be accomplished why would a development or a business district you know business group or anything like that why would they want these policies why would they want to utilize them what's the benefit really in essence to them and then what's the benefit to our taxpayers and residents mr phelps members of council councilman turner it's an excellent question and again it's it is a tool to be used under certain circumstances so you're not likely ever to use an id or an rd for 99 probably the development that's going to be taking place within glendale but it's so it's really well suited on large developments especially large developments where there may be may be multiple owners that are all have contiguous area so when we come back if we do get an application for the 303 group what one of the advantages is instead of having five parcels being developed separately which means each parcel may be doing their half side of the street and their scallop street as required by code one of the advantages is they they will go in self-assess and in that case they're gonna put in all the infrastructure signals lighting landscaping sidewalks all at one time even though there may not be development happening on some of the parcels for two or three years down the road so from if you talk to randy and our econ development team what they'll tell you is to have in this case a 400 acre area that has all the streets put in at the same time has minimal impact to the area around there it can be done to the same standards all the way throughout it also gives them the opportunity to go sell sites that are already you know pad ready and ready to go so it's not it we wouldn't use the rd uh in very many cases um but there but in this case i think there are some unique opportunities so i you would not see a flood of applications in my opinion coming in to do either rd or id but we think that there are we know of at least two large-scale developments where it may be to the advantage of the citizens of glendale to consider doing them mayor mr phelps so under that description it's would mostly be in [Music] developing areas um you know such as our western um uh western region um beyond luke and the 303. what about more internal to the city and is are these tools that can be used um in existing business districts for revitalization or anything you know those sorts of things or is that just kind of a misnomer members of council again there are some limitations in terms of how can be used primarily the rds and the ids are designed for public infrastructure so if you look at our built out areas within the city we you know for the most part there's already water sewer to the sites there's already surrounding street arterial roads kind of coming in and out so my my guess would be is i just i don't anticipate seeing where something would come forward kind of in the built out area it really is as you stated really well ideally situated for an expanding and growing area where there's absolutely no infrastructure in place this allows us to to put significant infrastructure in place without using taxpayer resources to do because they're self-assessing and then they're turning over us uh that's there so i think you know again i think when depending on the example um it would be my anticipation we won't bring an rd forward where we can't clearly articulate the benefit to the you know to our citizens okay and mayor mr phelps so typically in new construction any of these projects individual projects that would be happening out in that area we would already require the developer to do their interior streets and and and the infrastructure that becomes public it gets dedicated to us uh when it's complete but i guess what if i'm understanding the advantage here is that it allows various property owners in the area to put all of that in at one time rather than having it come in in a patchwork fashion so there's economies of scale and there's also a more sellable product after the fact and then i suppose and not that it's my job to defend these but i would also suppose that one of the benefits to the public would be that as they travel to and from in those areas they will have the streets and the lights and all of that at least for some time at a much higher standard than what traffic and development might demand and then in the long run uh that would be adequate or better going forward forever and i noticed i drove past i was coming up el mirage road from indian school or camelback just yesterday and i noticed that you know one side of the street very nicely completed developed and and find the other side of the street it was being used it was a commercial enterprise there but still undeveloped as far as you know the pretty much the half street and certainly curb gutter sidewalk landscaping none of that was there and it was a realizer on that side so if this is a mechanism that helps us prevent that um then i see that as a value mayor members of council council return i think you've really stated very you know very well what some of the benefits are and again but each time an application come in it would be the expectation if i were the council that that the staff be able to present a case as to why you do it and that as i say approving the the the tool uh tonight doesn't mean you're committed to doing it ever doing an rd or an id but it gives you that ability to at least consider and allow staff to engage with the development community uh if we think there is benefit so uh yeah that that the notion of large developments coming together and only doing half street scallops it's not only does it does it have some kind of a uh aesthetic uh uh problem with it but it's it's not the most efficient way uh because you're kind of cutting in and you're putting more seams in place as you expand it out so i think in this case um in talking to brian and randy if the application that's been under consideration were to be approved by the council we think it will create probably the largest built out industrial commercial site in the entire maricopa county because it will everything will already be in water sewer power roads lights signals all in a coordinated fashion and that's a great tool to be able to use as we recruit you know for the next you know large employer to come to town to have it ready to go if you look at what's been taking place out at wolf logistics you know they they annexed in three years ago but it's been a little bit slower play pace putting in all the different infrastructure and things that are there this just allows you to do it all at one time and thank you mr phillips and mayor i have one new last question and uh that's um it was mentioned that the policy is amendable but i trust that it's submittable prospectively not retrospectively uh it once a district's approved you it's locked in you can't change the rules on them mayor members of the council that that would that would be correct but again most of the the finer points about the districts itself will be in those formation documents not in your policy the the policy amendments would be um more in line with what the policies meant to do which is so so for example you could change the amount of the application fee you could require some other information that we didn't include in here and you decided in the future we want to require this information now you could amend it i think at the beginning i said right now we have it we have them set up in draft to say rds for commercial and industrial you may want to consider adding some other type of usage in there sometime in the future or restricting it back so so yes you can't make it retro to one that you've already formed but the policy itself doesn't form the district so you would want to lay those kinds of things out in the actual formation documents okay thank you thank you mayor what else do you have there i do have one more mayor pull your microphone down just a little bit less we'll get less echo that way go ahead okay is that better yeah um okay uh on uh 3.3 of both of the policies it says one paper copy and one electronic copy of the application will be submitted to the city manager i'd i'd like to if there's a consensus to amend that to say be delivered to the city manager the city attorney the cfo and the public works director any discussion on that okay that's all i had okay what else do you have vicki mayor members of the council if if that's something that council has consensus to do then i can write up an amendment for it i think you know obviously if it's submitted to the city manager's office we i think we've contemplated that it's going to be shared around with all of those departments because we'll need our experts in each of those departments but if that is something that you want to amend then i'll have to make sure it's in the um amended language and propose an amendment for it for the policy tonight is there a consensus on that item it appears to be okay thank you that's all i have that's okay so do we have a consensus as uh councilmember thomas chop's recommendation was it was approved okay there you go moving on to item two reems ranch annexation a n-220 lake located south of the southeast corner of reams road and northern avenue excuse me members of the council uh here today to provide the staff report on the reems ranch annexation is george gellert and from planning thank you mayor council uh good afternoon for uh lisa collins today who's uh off um the the item before you currently is a discussion regarding the rheem's ranch annexation proposal specifically an220 we're here to get your direction today following the submittal the application on the annexation as to whether you'd like for staff to move forward there's no voting regarding this item at least not currently uh the the annexation property includes about 260 acres it's located along the south um side of northern avenue somewhat east of reems ranch road also kind of sandwiched in between reems ranch road and luke air force base it's about 12 miles west of city hall once again the annex annexation proposal includes about 260 acres south of northern ave uh east of reams road and actually somewhat west of luke air force base part of the annexation proposal is a planetary development that would provide for up to 3.9 million square feet of industrial and manufacturing uses uh the city council last year on august 27 2019 um approved a pre-annexation development agreement to allow property owners to address infrastructure needs as part of the proposal and uh specifically today once again we're here to ask for the council's direction to move forward with the annexation process in your packet is a summary of a report provided to the staff and council by applied economics a third-party firm who routinely reviews these applications for the council identifying likely scenarios revenue scenarios for a variety of different possibilities regarding the use of the property specifically the shell building the warehouse uses manufacturing and kind of a blend of all three this is assuming the blend would be 50 warehousing 50 manufacturing it's identifying an annual net benefit of 870 000 and a one-time revenue source of 15.4 million pretty good boon for the city this may look familiar to you by now this is a slide depicting a variety of other annexation proposals which are occurring or have occurred adjacent to the 303 and luke air force base there's quite a variety of them at this point and again depicted in red is the rims ranch property located again just west and now north and west of luke air force base within the 70 to 80 decimal range noise contour which basically prohibits residential development this is the property once again depicted in the red shape areas north and west are part of maricopa county at this time the property itself is part of the annexation proposal um again east and south of the property is luke air force base the areas to the north and west are primarily agricultural large residential properties and or vacant vacant properties at this time again you've probably seen this before this is the depiction of the general plan on land use map summary depicting the in the pink tone adjacent to luke air force base the luke compatible land use area described by the general plan and again that's largely in response to the noise contour and a proximity to the air base and the flight line just for your information as part of the proposal again outlined in red to the north and west within maricopa county are is the rural residential land use or a zoning designation i should say a minimum 43 000 square foot lot development standard what's being proposed here is a we basically annex the property take it in as a planned area development under the current or under the pad zoning and the current land use proposal as required by statute the blank petition which is filed to initiate the annexation process requires a public hearing that's been scheduled for august the 25th that will be part of your agenda on that evening beyond that point that's where we go get the the owner's signatures we have to wait for the 30-day window to expire when we when you when we file the annexation petition that initiates the 30-day process and once it's closed then we get the signatures and put it back on your agenda city council public hearing is scheduled for the adoption on september the 8th 2020. if the annexation is approved the site would be added to the glendale city limits within 30 days mr mayor that concludes my presentation if you have any questions would be happy to respond questions thank you um i'm a little puzzled that that a pad is the closest zoning we have to ru-43 though i thought we had an obligation to take it in into the closest zoning that we have don't we have a zoning category that's closer to ru-43 than a pad it's my understanding they had a pid proposal um in the works with maricopa county and that's what we're attempting to mirror as part of this annexation or so would we be not doing the well what what what what is the zoning going to be at the time of the annexation [Music] the uh i believe the council is being asked to um as part of the adoption of the annexation to respond to the pad zoning as well that's not before you yet but that will be part of your agenda item on the 25th i believe so it's going to be annexed mayor i'm sorry it's going to be annexed in under and then rezoned so i'm just confused i mean we haven't done a whole lot of these but i thought we had there's some legal obligation to annex it in under the closest zoning uh category that we have to its existing zoning and then if there's a zoning case then we change it to a pad but we don't annex it under ru43 and then do the pad i just haven't seen this members of council so we don't have an exact designation that's exact so that's why we use a pad it'll mimic it but as you know because of the noise contours they'll never be able to develop there because of residential so what we'll in what we're anticipating is it will come back then as a pad that will then uh put it into an industrial commercial manufacturing designation that's why at the beginning the presentation it said we anticipate there'd be approximately 3.9 million square feet of commercial space once they build it out but what we're doing is bringing it in and so the pad is the mechanism to mimic exactly the county designation and then there'll be another process to do the rezoning of the property once it's annexed into the city uh mayor we have a residential acre lot zoning don't we yes we do i think the point that's being made is that because it's located within the contour level um that basically you know i understand that and i understand we're going to change zoning i'm just wondering why we're not annexing it under the closest zoning category that we have and then changing the zoning to a pad that i just trying to understand why we're doing that right because we do have a residential acre zoning classification we have that zoning classification i understand that that it's not suitable for that type of development but that is the closest um it's not like somebody's going to sneak in there in the middle of the night and build and build you know homes on acre lots there we do have a compatible zoning category to the way it's already zoned i just i mean that i thought that's what the rules were on there i do have a question i just want somebody to clarify i think i think i know this i just want to clarify so it's currently registered county that it's for one acre one residential yes but because of luke because of what legislative did to protect luke air force mission you cannot build under that is that correct that's my understanding yes so if that's the case if you cannot i have no problem with bringing it in as a pad personally i have no problem with that it doesn't make sense to bring it in on something we can't use and then change it to something that we can use we can just do it once mayor members council so um i just got an update uh so from brian friedman are who's worked a lot with the loop compatibility because of the loop compatibility it's it's required the zoning that's required is to be a pad so that's that's part of the loop compatibility um requirements okay so is it so we're doing a pad though or because there there is no pad right or are we just taking the case that they had in front of the county and what kind of zoning will it be that mayor yeah hold on well you want to answer that no just my it's it would be brought in as planned area development zoning and the the proposal at hand would be part of it mayor members count again what the intent is is because it cannot be built out as residential is to annex it in and to grant them through a pad the ability to build up to 3.9 million square feet of of industrial manufactured commercial space that's what the intent is and that's that's what the the series of steps will happen to get to the council to accomplish that so mayor so they'll be voted on almost one after the other on the same voting meeting or i guess i'm just trying to understand like what will the zoning be if they're not on the same meeting then what will the zoning be it's p-a-d but i mean there has to if there's no p-a-d then what does that mean we don't have a p-a-d unless we do it at the same time mayor members of the council if you can give me a second um i'm getting input here from lisa who could not be here she'd be obviously the one best to uh to answer these questions so if you can um just give me one second mayor intensify may actually lisa just texted me and indicates and i missed some of the conversation but this is already the property in question is already c2 and industrial too in the county under the military compatibility so noting and i guess then the concern being annexation requiring like zoning to give them like zoning if to give them like zoning we need to create the p80 that's what we're that that's i think what our intent is to okay well it says ru43 and that's certainly not c2 so i'm just basing it on what the staff report staff the staff report said it was ru 43 so i don't i it was my understanding that they had a zoning case in the county that that was incomplete and so i just like i said i just want to understand what we're doing thank you mayor uh it does seem to me like we're skipping a step here that we've always take a step we've always utilized in the past and that's to annex the property in and assign it the closest zoning that we have to it so the staff report says that it's currently zoned ru 43 we have a zoning category in glendale that somewhat matches that but now we're hearing that it's actually zoned commercial and something else so i want to know is it actually zoned commercial in something else or are they trying to get his own commercial and something else in the county and if they can just go ahead and get us to do a pad it skips a step but a p and in my understanding a pad is is non-specific it's within the pad that the users are described as to what's allowable and what's not um i've never seen us or heard of the council doing a you know a blank wide open oh it's a pad and then we'll later figure out what they can what's allowed within the phd because pad by definition is we're making up our own zoning in here so but it's part of the agreement right it's a development agreement a pad is a development agreement yeah so if we're skipping a step we still have to we still have to touch all the bases and you know if that means we need to know at annexation time what the elements are of the pad itself specifically and then i also wonder you know there are some neighbors out there that aren't aren't glendale residents but you know some of this stuff moves pretty fast for people and that you know i just wonder if skipping a step is the right thing to do on this mr phelps yeah so we've asked lisa to call in um hello hi lisa this is kevin you're on live here with the council okay so do you want to go ahead and kind of go back through uh the compatibility issues in the zoning underlying zoning sure just let me know go ahead you're on okay thank you mr mayor and members of the council uh if you can hear me i'm not sure sounds like someone else is talking we can hear you just fine okay great thank you mr mayor yes in the county if there is an ru 43 designation and they have a military compatibility use permit overlay and the the way that works is they the the property owner went through the county and got a zoning classification in the county they overlay it on the ru-43 so that's that's just the way they classify it so yes indeed it is ru 43 with the military compatibility overlay which has the c2 commercial districts and the industrial districts so if we look at the report and the approval from the county it has those two districts so when we bring this into the city under like zoning we're required to bring in exactly the zoning that they have in the county so if you look at the c2 classification and the i2 which is industrial that is exactly what our pad will reflect as you know in the city of glendale tads are a zoning classification that is established so it can be a lot of different things as you know but it will be a a reflection of exactly what is in the county and that's what we're required to do i know it's confusing that it shows ru-43 but it's not just ru-43 it's got this overlay which in essence wipes out the ru-43 so i hope that um helps to explain it and i'm happy to answer any other questions thank you mayor so it is a little confusing so basically there they have the zoning already that they want the c2 and the and the industrial and that that's all that's going to be in the pad is just that just the zoning that they already have that's correct so and that's absolutely correct so if they once they're annexed in they'll have that zoning and if they uh can't develop under that for some reason they want to make a change then they would come back to you and they would amend their pads so they're going to come in with pad because that's we don't have a district that says c2 and i1 or i2 or you know whatever the county has so we've got to do a pad and they'll be required to develop under that and if they can't or they want different development standards then they'll come back to the council and they'll have an amended pad okay thank you for the explanation it is a little confusing though we haven't done it that way before so you're good all right you good i'm fine thank you mr milner um i just want to say i basically agree with what lisa said that's what i understood is that it was it's zoned one way but it's got an overlay that in essence rezones it to a different classification and that's how we're bringing it in that's what i understood thank you okay what's next direction to move forward we have a consensus to move forward yes you do thank you thank you okay next item city manager report uh yes mayor members of the council it's uh we we've been gone for a month so i've got a number of items here i'd like to brief you on under my report and um i'm going to read some of this only because there's a lot of information here i want to make sure that i communicated clearly but i've got three areas i'm going to cover the first is regarding the um the federal az cares act and it's our intent currently is to come back to the council in a workshop in october to to talk about the council's priorities with what we do with the funding we think october is important because by then we will have um sales tax and and collection revenue all the way up through august so we think we'll have a pretty good indication of any kind of trends uh that might be happening we think that information will be valuable to the council in the meantime as we get as we prepare to have that workshop i want to at least let you know some of the work that's being done by gene moreno and our community services team which they've been doing quite a bit of work since march and this kind of spans a number of different programs our team down in community services helped process nearly 750 applications with a varying level degree of success and we've touched nearly 1 000 and we have roughly a thousand pending requests that are in that they're processing at this point each program has kind of different requirements and purposes so our team works individually with each of those applications uh to help them navigate through the process um for in just the past 23 weeks from march 1st through august 6th across all the different funding sources we've helped secure funding for 295 unduplicated households they've processed and they've provided over 457 different services to that group they've distributed roughly hundred and seventy thousand dollars in rental assistance and another four hundred thousand dollar in utility assistance and so this works out on average we're distributing about thirty three thousand four hundred dollars per week uh to help those here in our community um i've i've got a memo which we'll be distributing today which is going to go into a lot of detail of each individual program so i encourage you to look at that and it will it will highlight all the different programs that we're working on within community services we also in that memo econ development has also been working hard on a number of areas to assist our business community and so we've highlighted those areas uh in in that as well so it'll be both from community services and from economic development just a note because this happened last night the maricopa county board of supervisors has approved the county small business assistance program which all of our glendale businesses are eligible for if you recall the county received a significant amount of money as part of the cares act and so they have put together a business assistance program that is for all businesses even those here in glendale would be eligible to um to go after the program is designed is designed to provide grants up to twenty five thousand dollars uh per qualifying small business for expense reimbursement and then for-profit and not-for-profit businesses are also eligible so proprietorships currently who operate out of homes and mobile businesses are are included in that eligibility as well so the county's really tried to expand out the uses for the different business community the county's application period and we'll promote this be working with our public affairs team to get this information out and we'll work with you to get it out into your with your newsletters and into your districts but the uh the application period will run from august 17th through october 2nd um and so again we'll work not only with you but with our stakeholders including the chamber of commerce to help communicate this out the next thing i want to just talk to you briefly about is the regarding the election this fall for authorization to for city bonds as you know the city is moving forward with the council's approved bond election set for november third and during this time our staff has been crafting the public outreach information so that the community can access all this information that they will need to make a decision and to provide numerous opportunities for the public to be able to ask questions and provide feedback to the city we have finalized a schedule of 15 meetings at various locations with their range of dates and times which we will now begin advertising vicki ross has sent the council a draft schedule a few days ago i want to note we did make one change for the citizens advisory commission from september 9th to september 2nd to avoid a conflict that some members had following this meeting we'll send you the final public outreach schedule the public will will be invited to attend these meetings in person and several the meetings will also be broadcast on facebook live the public meetings are intended to vote provide voters with information regarding the city bond question in accordance with state statutes however city staff cannot provide information or can provide information about the bonds and answer questions but they cannot advocate for a yes or no vote the city's marketing team has also created a dedicated web page infographics videos and social media outreach material for this bond election one example is the infographic that you're seeing on the screen here in front of you and so we request that the council continue to help us get this information into the hands of your residents and citizens the final thing is uh pursuant to our policy here in glendale i want to notify the council that i i am a receipt of a unsolicited offer to purchase a city-owned piece of property and so consistent with the city's policy for the lease sell in exchange of city-owned property our first step will next step will be to analyze it to ensure its credibility and then we'll get back to the council and schedule a time to discuss in more detail and with that um i completed my report thank you our city attorney's report no excuse me mayor council no report just a reminder we do have an executive session thank you say it one more time we do have an executive session thank you okay council item special interest each council member has the opportunity to indicate topics they'd like to have discussed by this council at a future workshop mr aldama thank you mayor i have uh three first one is i want to advise the council that in the month of july i submitted a uh item of interest to uh kevin phelps via email regarding 5g south towers i asked for that because i feel they're running a muck in our community so i'd like to have a further discussion and mr phelps is working with his staff and wanted to make sure that the council was aware of that second one is i'd like to have a report doesn't need to be a workshop just a report of the council and i um where we are in the uh design process for o'neill park uh splash pad i believe and lastly third and lastly is a report doesn't need to be a workshop just to report back to the council and i uh where we are in the uh in the process of implementation of a program for the community centers i i take i get we're in the covet but uh where we are in those steps thank you mayor councilmember clerk turn your speaker on there you go it's on now it's off uh i have nothing but i would like to second or echo council mama council member aldama's request for an update on o'neill splash pad and the community centers thank you mayor councilmember hugh dunmer thank you councilmember tom trump i would like to uh third councilmember odama's uh we've actually discussed it hopefully they are at least putting together a program for the community centers because we've got uh staff that you know the adult centers closed fracs close things are closed hopefully they have a program in place and when they're able to open the doors we're ready to go because the community needs it so i support that um i do want to for my item request a follow-up with citygate we did a citygate study for public safety i want to say i think dick was still here as our interim city manager it's been probably five years ago so i'd like to have citiba citygate come back and do a follow-up and just see i mean they gave us some metrics they gave us some things and i wanted to see where we are and and moving in the in the right direction and make sure that we're you know have an outside look at an evaluation of our public safety both police and fire so i'd like to see i guess i don't know if they'd have to come back to a workshop and see if there's a consensus for them to do a follow-up that's it for me thank you thank you mayor um i'll fourth the community centers uh ciosi so hey we got a consensus already on that one so good good work there i know i certainly think we should be as close to ready to open the doors as soon as the scientific evidence says that it's time and i'll also second on the citygate study that it's certainly time to revisit that as has been suggested by councilmember thomas off and i won't add any of my own to it this week so thank you mayor vice mayor uh nothing else to add mayor uh and i i'm not gonna add anything to the growing list of things that we already have so can i get a motion to go into executive session second i have a motion from councilmember clark second council member tom trump to go into executive session any discussion on motion hearing none please vote i if you're in favor aye aye any opposed vote nay appears you guys have it do have it the council meeting is recessed for exact [Music] so [Music] [Music] [Music] [Applause] [Music] me [Music] so [Music] [Applause] [Music] [Music] so [Music] so [Music] [Music] [Music] [Music] [Music] [Music] [Music] um [Music] [Music] [Music] [Applause] hey [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] you