Title
Development Agreement with Taylor Morrison Communities and Laveen Elementary School District for Park Construction in Tierra Montana (Ordinance S-44539)
Description
Request to authorize the City Manager, or his designee, to enter into a Development Agreement with Taylor Morrison Communities and Laveen Elementary School District for Park Construction.
Report
Summary
The proposed ordinance authorizes the City Manager to execute a three-party development agreement between the City of Phoenix (COP), Taylor Morrison Communities (TM), and Laveen Elementary School District (LESD) related to a joint school/park site at Tierra Montana, a subdivision in Laveen Village. COP and LESD have executed an Intergovernmental Agreement that established use and maintenance responsibilities for the site. A Development Agreement would establish the terms for constructing the park site and sharing the cost of park improvements. Staff has worked with TM and LESD to identify the following items for inclusion in the proposed Development Agreement that incorporates the following:
- Parties: Tri-party Development Agreement between TM, LESD, and COP.
- Land Dedication: TM will dedicate approximately 17.8 acres to LESD to be used as a joint elementary school/public park site. This is a condition precedent to all other development agreement obligations.
- Deed Restriction: Upon completion of park construction, LESD will record a deed restriction that limits future use of the park portion (estimated to be 8.5 acres) of the school/park site to a neighborhood park.
- Park Construction: LESD, with rights by TM to takeover construction, will cause park amenities and improvements to be constructed to City Standards consistent with the park site/design plan and schedule agreed to by COP, TM and LESD. Park Construction anticipated to occur simultaneously with construction by LESD of a school on the school/park site, unless TM exercises takeover rights to construct park amenities and improvements prior to construction of the school. TM or LESD will comply with Title 34 requirements for all expenses reimburseable by COP.
- Park Costs: TM will contribute a maximum of $1,505,187 towards the park amenities and improvements. Costs of park amenities and improvements that exceed contributions will be reimbursed by COP up to $1 million of actual costs incurred by TM. COP may reimburse TM up to an an additional $1 million (up to $2 million total) for eligible costs exceeding $2,505,187 with prior written approval by the Parks and Recreation Department Director. Reimbursement by COP will occur within 60 days after the presentation of invoices and/or payment receipts by TM or LESD. Reimbursement may be requested as costs are incurred.
- Park Impact Fee Credit: TM will be eligible to receive Park impact fee credit for eligible costs incurred toward park amenities and improvements, not including costs otherwise reimbursed by COP, up to TM's maximum contribution of $1,505,187. Credit can be used to reduce park impact fees within the Southwest Impact Fee area. Upon completion of the park amenities and improvements, TM and COP will enter into a Final Credit Agreement pursuant to Phoenix City Code Ch. 29. The Final Credit Agreement will address impact fees paid and credits to be issued for permits pulled prior to completion of the park amenities and improvements.
- Intergovernmental Agreement: LESD and COP entered into an Intergovernmental Agreement that establishes use and maintenance requirements for the park amenities and improvements.
- Future Maintenance and Improvements: TM will have no responsibility towards the maintenance or additional improvements to the park amenities and improvements once TM's maximum contribution of $1,505,187 has been made.
Financial Impact
Under the proposed terms, the City would provide Park Impact Fee Credit for eligible park construction costs incurred by TM up to $1,505,187. The City would reimburse TM up to $1 million for eligible construction costs exceeding $1,505,187. The Parks and Recreation Director would have the option to reimburse TM up to an additional $1 million (total $2 million) for eligible costs exceeding $2,505,187. Any City financial contributions would come from available Park Impact Fee revenues that can only be used within the Southwest Park Impact Fee Area.
Location
Laveen Village, Southwest Park Impact Fee Area
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Managers Mario Paniagua and Deanna Jonovich, and the Parks Recreation and Planning and Development departments.