Title
Mayo Reimbursement Payment Ordinance Correction (Ordinance S-48385)
Description
Request for $4,620,953.50 in payment authority for reimbursement of permit and plan review fees to Mayo Foundation for Educational Research previously authorized by Development Agreement CON 72047. Further request the City Controller to disburse all funds related to this item.
Report
Summary
The Development Agreement (Contract 72047) was executed between City of Phoenix and Mayo Foundation for Educational Research (“Mayo”) on Jan. 3, 1996, with a contract term of 50 years. The Development Agreement describes the reimbursement of construction sales tax for permit/plan review fees paid for Phase I improvements up to the amount of construction sales tax paid. It includes a provision for unused reimbursement credits that carry over if applicable.
The Development Agreement was executed after the associated Ordinance; however, the Development Agreement is inconsistent with the Ordinance with regards to reimbursement amount. Staff does not have records that explain the discrepancy.
- The City Council Report dated Sept. 14, 1995, (GEN81552) refers to the permit fee reimbursements “estimated cost” of $1,045,000.
- The Payment Ordinance dated Sept. 20, 1995, (S-23079) Section 1.f. specifies that the City shall reimburse Mayo in an amount “not to exceed” $1,045,000.
- The Development Agreement (CON 72047) dated Jan. 3, 1996, Section 6 provides for reimbursements limited to the amount of construction sales tax remitted to the city, with no hard cap or maximum amount.
To date, the City has paid Mayo $5,665,953.50 as reimbursement of permit and plan review fees collected by the Development Services/Planning & Development Department for Phase I construction activity provided by the Development Agreement Jan. 3, 1996, to Dec. 31, 2020. Additional payment authority of $4,620,953.50 is requested to correct the discrepancy between the previously approved Ordinance amount ($1,045,000) and the total amount reimbursed to date. Payments to Mayo are made from the Development Repayment Agreement Trust Fund, which is reimbursed from City funds based on construction sales taxes remitted to the City from applicable activity under the Development Agreement.
Future reimbursement requests will be reviewed per the terms of the Development Agreement. Additional payment authority needed to process payment for future reimbursements will be requested on an annual basis.
Financial Impact
All expenditures and fund transfers for reimbursements related to this item were completed in prior years.
Previous Council Action
Authorized Development Agreement (CON 72047) and approved Payment Ordinance (S-23079) on Sept. 20, 1995.
Department
Responsible Department
This item is submitted by Deputy City Manager Alan Stephenson and the Planning and Development Department.