Title
ADD-ON - Enter Into a Sewer Line Agreement with RD Icon Kierland, L.L.C., Phoenix 71st Street, L.L.C., and PHXAZ/Kierland Commons, L.L.C. (Ordinance S-51562) - District 2
Description
Request to authorize the City Manager, or his designee, to enter into a Sewer Line Agreement with RD Icon Kierland, L.L.C., Phoenix 71st Street, L.L.C., and PHXAZ/Kierland Commons, L.L.C.
Report
Summary
The Kierland and Paradise Valley Mall areas of northeastern Phoenix have experienced rapid redevelopment in recent years from a largely commercial/office employment areas with a small amount of multi-family to a much larger amount of multi-family and less retail and office uses. These private property owner driven requests are important to the surrounding property owners in the area, however, they place a much greater demand on the sewer collection system. The system serving that area is currently at capacity and it will need to be expanded for continued redevelopment to occur.
Three developers, RD Icon Kierland, L.L.C., Phoenix 71st Street, L.L.C., and PHXAZ/Kierland Commons, L.L.C., (“Parties”) have been stipulated to construct phase one of these improvements, up sizing approximately 700 linear feet of sewer pipe in Sweetwater Road. Because of their shared obligations, the Parties are separately entering a joint agreement to construct the stipulated improvements. To facilitate this agreement, improve sewer capacity, and allow development to continue the City proposes to enter into a modified sewer line agreement with the Parities. Similar sewer line agreements will be necessary by others developers along with the City to continue addressing the larger sewer capacity issues. This agreement contains the following deal points:
- The Parties will begin construction of the improvements within 12 months of the execution of the agreement. Once construction commences, the Parties will complete construction of the improvements without delay.
- The City will provide wastewater service for wastewater flows of up to 607 multi-family units constructed by the Parties provided the Party obtains the necessary building permit within 10 years of the City’s acceptance of the improvements.
- The Parties will remain subject to any wastewater treatment impact fees that may be charged in the future, subject to the grandfathering provisions typical for all developments.
Financial Impact
This item will have no financial impact on the City.
Location
Council District: 2
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Water Services Department.