Title
Request to Enter into the Development Agreement with Honor Health for a Wastewater Main Project (Ordinance S-51247)
Description
Request authorization for the City Manager, or his designee, to enter into the Wastewater Main Development Agreement with Honor Health, an Arizona Corporation ("Developer").
Report
Summary
This council action is to enter into a development agreement with developer. Developer has obtained the approvals necessary to develop additional hospital and medical office facilities (“Development”) on the property located at 27th Avenue and Beardsley Road, in accordance with a.) Planned Unit Development Z-44-22-1 adopted by the City Council on January 4, 2023; b.) the Kimley-Horn Wastewater Master Plan report dated October 26, 2023 (“Wastewater Master Plan”) and c.) KIVA No. 99-4837 / WSPR 2300041 and RVSN 2300041-1. Developer has agreed to pay for all wastewater lines and appurtenant facilities.
At full build-out the total peak wastewater flows for the project will be 449.33 gallons per minute (“Approved Discharge”).
The parties agree for the duration of the agreement and subject to the following conditions, the City will not impose additional wastewater infrastructure capacity requirements or infrastructure charges or fees if:
- The development on the property conforms to the Planned Unit Development and Wastewater Master Plan.
- Improvements do not generate and are not projected to generate peak flows in excess of the approved discharges.
If peak flows from the development or projected peak flows from improvements exceed the approved discharges, the developer shall be responsible for any additional wastewater infrastructure capacity requirements, charges, and fees, as determined by the then-current design manual and city requirements as would requires of a developer of a similarly situated property.
Contract Term
The term of the agreement from the effective date upon approval to 20 years post acceptance of the improvements.
Financial Impact
Developer is solely responsible for the cost of all other wastewater infrastructure located on the property and all infrastructure necessary to connect any facility on the property to the improvements or the City’s existing wastewater system infrastructure.
Developer warrants its construction and installation of the improvements against any and all defects for a period of two years after acceptance by the Water Services Department. Developer is responsible for all costs incurred by Phoenix in repairing defective facilities subject to such warranty. Developer must pay such costs within 30 days of Phoenix’s billing.
Location
Council District: 1
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Water Services Department.