HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 5/14/2001 MINUTES OF THE SPECIAL MEETING OF THE COUNCIL
OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA,
HELD TUESDAY, MAY 14, 2001, AT 7:00 P.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 Martin Vanacour, City Manager; Ed Beasley, Assistant City
Manager; Rick Flaaen, City Attorney; and Pamela Oliveira, City Clerk.
A statement was filed by the City Clerk that the one ordinance to be considered
at the meeting was available for public examination and the title posted at City Hall
more than 72 hours in advance of the meeting.
ORDINANCE
1. PURCHASE OF MANISTEE TOWN CENTER
Mr. Jim Colson, Economic Development Director, presented this item. The
Manistee Town Center site has been in a blighted condition for several years and this
condition is adversely effecting the City and the adjoining neighborhoods and
community. In order to protect the adjoining neighborhoods and community, prevent
the spread of slum and blight conditions to those areas, and preserve the peace, safety,
health, and welfare of the City, the City of Glendale has determined the best interest of
the City will be served by the City's purchase of the Manistee Town Center site for the
purpose of redevelopment. The property was appraised at $12,200,000; however, staff
was able to negotiate with the owner, Manistee Town Center, L.L.C., an agreed
purchase price of $11,000,000, plus up to $200,000 of associated transaction costs,
i.e., escrow fees, extended title insurance and environmental fees, to be paid from the
General Fund.
The property will be transferred to the City free of any liens or encumbrances,
but will be subject to existing leases in place. The City will hire NAI Horizon, a
commercial real estate service company, which will provide tenant services for the
remaining length of time of the leases.
The City of Glendale is currently negotiating a development agreement with the
Ellman Companies, which will require the Ellman Companies to redevelop the Manistee
Town Center site. The development agreement will require the City to convey the
Manistee site to the Ellman Companies and require them to reimburse the City the
purchase amount of the property (based on the terms negotiated in the development
agreement). Also, the development agreement would contain information on the length
of time to reimburse the City of Glendale and the scheduled rate at which
redevelopment would occur. The Ellman Companies will remove the existing structures
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and redevelop the site to the mutual benefit of the City and the Ellman Companies.
The redevelopment project will remove a long-term under-performing property; bring
additional employment, shopping and dining to the area; and increase revenue to the
City.
The final payment for the purchase, including the associated transaction costs,
shall be paid from the General Fund. The actual expenditure will only be made from
the General Fund, and will subsequently be reimbursed through financing proceeds.
The budget authority for this purchase will be transferred from various contingency
appropriations in the funds set forth below. No money will change hands. Only legal
authority is being transferred as required by law.
Non-Cash
Fund Number Fund Name Contingency Transfer
01 General Fund $ 5,604,746
14 Development Impact Fee 1,395,254
62 Streets, G.O. Bonds 4,200,000
TOTAL $ 11,200,000
The City intends to reimburse the payment of the purchase and associated costs
through the use of debt financing. An account has been set up to pay for the purchase
and the associated costs in Manistee Land Acquisition Project Account Number
01-8058-8100 within the General Fund. The Chief Financial Officer will file a
"Declaration of Intent to Reimburse" with the City Clerk to show the dollar amount that
will be reimbursed.
The recommendation was to waive reading beyond the title and adopt an
ordinance authorizing the purchase of the property and further authorizing the City
Manager to sign all documents associated with the purchase of the Manistee Town
Center, and to authorize the appropriation transfer of $11,200,000 to Account Number
01-8058-8100 in the General Fund.
Ordinance No. 2192 New Series was read by number and title only, it being AN
ORDINANCE OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA
COUNTY, ARIZONA, AUTHORIZING AND DIRECTING THE ACQUISITION OF
CERTAIN REAL PROPERTY (MANISTEE TOWN CENTER) LOCATED AT THE
SOUTHEAST CORNER OF 59TH AND NORTHERN AVENUES IN GLENDALE,
MARICOPA COUNTY, ARIZONA, AND DIRECTING THE EXECUTION OF A
PURCHASE AGREEMENT AND ESCROW INSTRUCTIONS.
It was moved by Goulet, and seconded by Clark, to approve Ordinance
No. 2192 New Series. Motion carried on a roll call vote, with the following
members voting "aye": Clark, Goulet, Lieberman, Eggleston, Martinez, Frate, and
Scruggs. Members voting "nay": none.
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CALL FOR FUTURE WORKSHOPS
It was moved by Eggleston, and seconded by Councilmember Martinez to
vacate the regularly scheduled Tuesday, May 22, 2001 Council meeting and hold
a special Council meeting on Tuesday, May 29, 2001 at 7:00 p.m. in Room B-3 of
the City Council Chambers, pursuant to A.R.S. 38-431.01. The motion carried
unanimously.
COUNCIL COMMENTS AND SUGGESTIONS
Councilmember Goulet encouraged everyone to vote.
Councilmember Lieberman stated that he was delighted with the City's decision
to purchase the Manistee Town Center.
ADJOURNMENT
There being no further business, the meeting was adjourned at 7:15 p.m.
Pamel?Oliveira - City Clerk
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