Title
Development Agreement Between City of Phoenix and 43rd - Buckeye LP, for Installation of Water Main in Magnolia Street Frontage (Ordinance S-45807)
Description
Request to authorize the City Manager, or his designee, to enter into a Development Agreement between the City of Phoenix and 43rd - Buckeye LP (“Developer”) to allow the Developer to pay the City an amount of $57,940 in lieu of the requirements to extend an 8-inch main and perform associated street pavement repairs through the remaining 100-foot segment of Magnolia Street fronting this development. Further request to authorize the City Treasurer to accept all funds, and the City Controller to disburse all funds, related to this item.
Report
Summary
The Developer owns approximately 4.86 acres of property on the west side of 43rd Avenue between Lower Buckeye Road and Magnolia Street. To facilitate this development, an 8-inch water main extension is required within Magnolia Street of approximately 100 feet of 8-inch water main, which will connect to a water main in 43rd Avenue. Due to the difficult installation of the water main extension across an existing high-pressure gas line and the associated permitting of the construction, the Developer will promptly pay $57,940 to the City to satisfy the Developer’s obligations for water main installation and street pavement repair. The City will complete the construction of the water main extension.
The Development Agreement will commence when both parties have signed the Development Agreement and will require the Developer to deposit the $57,940 into an interest-bearing deposit account which will be maintained as a money market account or its equivalent. The City will withdraw funds from the account as it incurs costs for the water line installation and will not require any additional funds from the Developer beyond what is deposited in the escrow account. The City will take all necessary measures to close the account and return any remaining funds to the Developer after completion of the water main installation or the tenth anniversary of the Development Agreement, whichever comes first.
Financial Impact
The Developer will pay the City a one-time payment of $57,940.
Location
On the west side of 43rd Avenue between Lower Buckeye Road and Magnolia Street.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and Water Services Department.