Title
Lease Funds Use Restriction (Ordinance S-52229) - District 8
Description
Request City Council to restrict funds from Ground Lease 163765 to be used exclusively for first time capital improvements to the unimproved City property located at South 59th and West Olney avenues.
Report
Summary
Ground Lease 163765 was executed between the City and Laveen Elementary School District No. 59 (District) effective July 1, 2025, for the purpose of constructing, maintaining and operating a public-school facility on a portion of an undeveloped property owned by the Parks and Recreation Department. The leased area is approximately 20 acres of the northern portion of the 40-acre undeveloped park property located on the northeast corner of South 59th and West Olney avenues, identified by APN 300-02-060B. The agreement with the District will allow for public use of recreational opportunities on school fields, athletic courts and playgrounds once the school is open.
The Parks and Recreation Department plans to build a future park on the remaining 20 acres of the undeveloped park property. To aid future efforts to develop the park, all monies collected pursuant to Ground Lease 163765 are considered Development Impact Fee replacement and shall be deposited into a sub-fund within the Southwest Impact Fee Fund to be exclusively used for first time capital improvements to the unimproved City park property located at the northeast corner of South 59th and West Olney avenues. The City will notify the District in advance of any future City Council action that could change the exclusive use of these funds.
The Parks and Recreation Department will proceed with development of the remaining 20 acres when funding for construction and ongoing maintenance and operational costs have been secured.
Concurrence/Previous Council Action
On April 23, 2025, the City Council approved the Request to Enter into a Lease Agreement with Laveen Elementary School District No. 59 to use Unimproved City owned Property located North of the Northeast Corner of South 59th and West Olney avenues for Public School Facilities (Ordinance S-51859).
Location
Northeast corner of South 59th and West Olney avenues.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Managers John Chan and Alan Stephenson and the Parks and Recreation and Planning and Development departments.