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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 8/30/2002 MINUTES OF THE SPECIAL MEETING OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, HELD AT THE GLENDALE CIVIC CENTER - 5750 W. GLENN DRIVE FRIDAY, AUGUST 30, 2002, AT 11:30 A.M. The meeting was called to order by Mayor Scruggs, with Vice Mayor Eggleston and the following Councilmembers present: Clark, Frate, Goulet, Lieberman, and Martinez. Also present were Ed Beasley, City Manager; Terry Zerkle, Assistant City Manager; Rick Flaaen, City Attorney; and Pamela Oliveira, City Clerk. 1. CALL FOR VOTE TO ENTER INTO AN EXECUTIVE SESSION It was moved by Eggleston, and seconded by Frate, to go into Executive Session to receive legal advice and provide direction to the City Attorney and City staff regarding negotiations with the Tourism and Sports Authority concerning the development of a multi-purpose facility. The motion carried unanimously. The Special Council meeting reconvened at 12:50 p.m. RESOLUTIONS 2. APPROVAL OF AGREEMENTS WITH B&B HOLDINGS Mr. Jim Colson, Economic Development Director, presented this request for Council approval of a development agreement with B&B Holdings Inc. (doing business as (d.b.a.) Arizona Cardinals). Staff presented an overview of negotiations with the Arizona Cardinals regarding the development agreement, setting forth the rights and obligations of the parties regarding the Tourism and Sports Authority's (TSA) multi- purpose facility. The recommendation was to waive reading beyond the title and adopt a resolution authorizing the approval of the development agreement with B&B Holdings, Inc. (d.b.a. Arizona Cardinals). Mr. Colson introduced members of the project team. He stated that their objective was to create a deal that would provide significant benefits to the City, while protecting the public trust. He said, through this project, they will create a sports and entertainment destination. He said the size and configuration of the site allows for full- site planning and meets all TSA requirements and the intent of the voters. He noted that the site will boast some of the finest youth sports facilities in the region and will have excellent traffic flow and parking. Mr. Colson discussed the significant regional 1 and economic impacts of the project. He stated that it will generate regional, national and international exposure for the City of Glendale and the greater Phoenix region. He assured the Council that the project will significantly stimulate economic development in terms of increased land values and interest in the area. Mr. Art Lynch, Finance Director, stated that the financing approach they took was similar to the one used for the Arrowhead Town Center development. He explained that the Community Facilities District (CFD) financing structure which was utilized allows the City to proceed with projects without incurring any liability or using their bonding capacity. He recommended that a Community Facilities District be established, which would have the ability to sell bonds to pay for parking and other infrastructure needs. He pointed out the fact that the projections and analyses were all based on the assumption that the revenue stream would include the parking revenue fee and the sales tax generated by the project. He stated that the Arizona Cardinals will guarantee the bonds and fund a reserve fund to protect all bond holders who invest in the project. He explained that the CFD bonds would cover basic infrastructure amenities, including a storm water drainage facility, utility connections, street and traffic elements, and a contingency fund. He said other amenities could be provided after development of the stadium to enhance streets and traffic approaching the facility. Mr. Lynch stated that the estimated revenue sources for the facility include sales taxes from stadium and retail activities within the project. He said the parking surcharge will generate revenue from stadium events, other parking uses, special event parking, and tailgating opportunities. He explained that offsite parking revenue would also help pay for the cost of the facility. He emphasized that no other taxes will be increased or assessed on the general citizenry. He discussed the process by which money flows through a Community Facilities District. He said stadium sales taxes, parking revenue, the facility use fee, Glendale Capital Improvement Program funds set aside to provide infrastructure to the area, money associated with youth sports, and joint projects with the Arizona Department of Transportation (ADOT) are all of the revenue sources projected in the project. He explained that the total amount of the principal bond issued by the Community Facilities District would be approximately $37 to $38 million, with the total cost of the issuance totaling about $48 million. He said the project's revenues are anticipated to exceed expenditures, with the additional money going towards operating and maintenance costs, offsite improvements, a debt service reserve account, reimbursing the Cardinals for their upfront expenditures, and a Facilities Renovation Fund. Mr. Rick Flaaen, City Attorney, presented the development agreement between the City of Glendale and B&B Holdings, Inc., d.b.a. Arizona Cardinals. He stated that the document protects the City of Glendale's interests in the project and recommended approval of the agreement. 2 Resolution No. 3603 New Series was read by number and title only, it being A RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AUTHORIZING AND DIRECTING THE EXECUTION AND DELIVERY OF A DEVELOPMENT AGREEMENT WITH B&B HOLDINGS, INC., DBA ARIZONA CARDINALS, SETTING FORTH THE PARTIES RESPECTIVE RIGHTS AND OBLIGATIONS REGARDING THE DEVELOPMENT OF A MULTI-PURPOSE FACILITY AND RELATED PARKING; AND DIRECTING THAT THE DEVELOPMENT AGREEMENT BE RECORDED. It was moved by Clark, and seconded by Lieberman, pass, adopt, and approve Resolution No. 3603 New Series. Councilmember Clark pointed out the fact that the project will impact many of the residents in her district. She welcomed the Cardinals and the Fiesta Bowl to Glendale and thanked City staff for all of their efforts on behalf of the City of Glendale and its citizens. She said she was initially opposed to the facility even though she realized locating two major sports complexes next to each other made good economic sense. She explained that she was concerned about residents in her district, specifically those living in close proximity to the site. She said she ultimately decided to support the project because of the principals' willingness to recognize the issue and their commitment to mitigating the impacts of the project on residents in the area. She noted that a citizens group would be established to ensure that reasonable mitigation measures are taken. Councilmember Lieberman said his initial questions were satisfactorily answered by staff and he had been assured that there will be no increase in either sales taxes or personal property taxes as a result of the project. He welcomed the Cardinals to Glendale and thanked all those involved in the process. Councilmember Martinez stated that he was proud of the members of the project team and staff who brought the project to fruition. He thanked them for all of their hard work. Councilmember Goulet stated that everyone present today was part of another chapter in the City's changing history. He welcomed everyone to the newest and best National Football League (NFL) city in the country. Vice Mayor Eggleston stated that the Council had voiced unanimous approval of the project. He welcomed the Cardinals and the facility to the City of Glendale. Councilmember Frate said the project reflects a coming together of the community. He welcomed Mr. Bidwell to the community. Upon a call for the question, the motion carried unanimously. 3 3. APPROVAL OF AGREEMENTS WITH THE TOURISM AND SPORTS AUTHORITY Mr. Rick Flaaen, City Attorney, presented this request for Council approval of four development agreements with the Tourism and Sports Authority (TSA). Staff presented an overview of negotiations with the TSA regarding the following agreements: the Development Agreement, the Parking Agreement, the Construction Staging Agreement, and the Event Staging Agreement. The recommendation was to waive reading beyond the title and adopt a resolution authorizing the approval of the Development Agreement, the Parking Agreement, the Construction Staging Agreement, and the Event Staging Agreement with the Tourism and Sports Authority. Resolution No. 3604 New Series was read by number and title only, it being A RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AUTHORIZING AND DIRECTING THE EXECUTION AND DELIVERY OF (1) A DEVELOPMENT AND DISPOSITION AND INTER- GOVERNMENTAL AGREEMENT, (2) AN EVENT STAGING LICENSE AGREEMENT, AND (3) A CONSTRUCTION STAGING AREA LICENSE AGREEMENT WITH THE ARIZONA TOURISM AND SPORTS AUTHORITY FOR THE DEVELOPMENT OF A MULTI-PURPOSE FACILITY; DIRECTING THAT THE DEVELOPMENT AND DISPOSITION AND INTERGOVERNMENTAL AGREEMENT BE RECORDED; AND DIRECTING THE CITY MANAGER AND CITY ATTORNEY TO TAKE ALL REASONABLE AND NECESSARY STEPS TO ACQUIRE NECESSARY LANDS. It was moved by Goulet, and seconded by Frate, pass, adopt, and approve Resolution No. 3604 New Series. The motion carried unanimously. COUNCIL COMMENTS AND SUGGESTIONS No comments were made. ADJOURNMENT There being no further business, the meeting was adjourned at 1:30 p.m. 1111r 4111P ....i.., 0 i ., ....., -" Pame a Oliveira - City Clerk 4