HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 7/3/2001 * PLEASE NOTE: Since the Glendale City Council does not take formal action at
the Workshops, Workshop minutes are not approved by the City Council.
MINUTES
CITY OF GLENDALE
CITY COUNCIL WORKSHOP
July 3, 2001
1:30 p.m.
PRESENT: Mayor Scruggs, Vice Mayor Eggleston, and Councilmembers Clark,
Frate, Goulet, Lieberman, and Martinez.
ALSO PRESENT: Martin Vanacour, City Manager; Ed Beasley, Assistant City
Manager; Rick Flaaen, City Attorney; and Pamela Oliveira, City
Clerk.
1. GLENDALE GATEWAY/MANISTEE TOWN CENTER (COYOTES)
DEVELOPMENT UPDATE
CITY STAFF PRESENTING THIS ITEM: Mr. Jim Colson, Economic Development
Director; Mr. Jon Froke, Planning Director; and Ms. Molly Hood, Planning Project
Manager.
OTHER PRESENTERS: Mr. Grant Woods, Counsel for The Ellman Companies; Mr.
Shawn Hunter, President of the Phoenix Coyotes; and Mr. Tim Cosentino, Vice
President - Business Development for The Ellman Companies.
City staff and the Coyotes representatives presented an update on the Coyotes -
Glendale Gateway/Manistee Town Center development projects. Specific items
discussed included a review of pertinent planning and zoning issues, a briefing
regarding the financial structure, and an overview of the marketing plan.
In April of 2001, the Council unanimously approved a memorandum of agreement with
the Coyotes and The Ellman Companies to develop the Glendale Gateway
Arena/Mixed-Use Project and redevelop the Manistee Town Center.
Council directed staff to negotiate development agreements for two development
projects that met the mutual objectives of the Coyotes/Ellman Companies and the City
of Glendale. Staff has been working with the Coyotes/Ellman Companies to structure
the agreement in such a manner as to ensure a positive, long-term working relationship
between all parties.
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As a result of the action taken by the Council, the City of Glendale will be the home of
the National Hockey League (NHL) Coyotes and a mixed-use development, consisting
of at least 1.6 million square feet of diverse retail, entertainment, dining, office, and
residential development. In addition, the Ellman Companies have agreed to redevelop
the Manistee Town Center site, which will result in a major improvement to the City
Center area and provide a new amenity to the City.
Staff is working with the Mayor and Council, as well as various other community groups,
to discuss the project and answer questions. The City of Glendale has dedicated a
portion of its web site to these projects and has also established a special telephone
hotline for those without Internet access.
The City has entered into a memorandum of agreement with The Ellman Companies to
develop the Glendale Gateway Arena/Mixed-Use Project and redevelop the Manistee
Town Center. The City's financial commitment is to provide funding of up to $180
million, over a thirty-year period, in exchange for a specific amount of development (at
least 1.6 million square feet of diverse retail, entertainment, dining, office, and
residential development) according to the terms and conditions, which will be outlined in
the development agreement.
The planned development will result in increased sales tax to support general services,
pay the debt service on the $180 million, and provide additional police and fire service
throughout the City. This project will also accelerate development in the Glendale
Gateway Area, resulting in increased amenities, job opportunities, and tax base; and
significantly increase property values and assessed valuation.
This item was presented to the Council for information, discussion and staff direction.
Ms. Hood confirmed for Councilmember Clark that the text amendment would become
effective August 23, 2001, after which date construction of the arena could commence.
Councilmember Goulet asked if allowing construction to begin prior to the rezoning
action would open the City up to other projects looking for development ahead of
rezoning. Mr. Froke stated that they were comfortable with the text amendment and did
not believe it opens the door to any other developer wishing to circumvent the City's
processes.
Councilmember Goulet asked if the arena would be below grade. Mr. Cosentino
explained that the area around the building would be raised, bringing people in at the
main concourse level, while the event floor would be placed 25 to 30 feet below grade.
He clarified for Councilmember Goulet that the northwest corner would be comprised of
four office buildings and retail. He said it was their intent to use that complex's parking
lot as a joint parking lot for the arena.
Councilmember Clark expressed concern about using residential development as a
buffer for the existing neighborhood. Mr. Woods explained that they do not own that
portion of the property. He said they were contractually obligated to present it as
residential for Council's consideration.
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Councilmember Frate noted that he had participated in the Coyotes' blood drive event
which was held at 1:he Arrowhead Towne Center the previous Sunday.
Councilmember Martinez thanked the Coyotes' representatives for their presentation.
Councilmember Goulet also thanked the representatives for their presentation. He
stated that he was especially pleased to hear their emphasis on the development of the
Manistee Town Center.
Mayor Scruggs thanked the Ellman Group and City staff for their presentations. She
noted that all of the information presented was subject to change.
The meeting recessed for a short break.
2. UPDATE ON LUKE AIR FORCE BASE ACTIVITIES BY S'RELLI
CONSULTING
CITY STAFF PRESENTING THIS ITEM: Ms. Amy Rudibaugh Duffy, Intergovernmental
Relations Director.
OTHER PRESENTER: Lieutenant General Eugene Santarelli, President of S'Relli
Consulting, LLC.
Over the past several years, the City of Glendale has developed a legislative agenda to
support Luke Air Force Base in its current and future missions. In preparing for these
legislative efforts, the Intergovernmental Relations Department researched the most
successful actions taken by states to protect their military installations. The result of
this research was a better understanding of what concepts have been successfully
implemented.
The Intergovernmental Relations Department, in conjunction with other interested
parties, developed two bills [Senate Bill (SB) 1514 (Appropriations; Teacher
Preparation) during the 2000 Legislative Session and SB 1525 (Military Airports/
Preservation) during the 2001 Legislative Session] that defined compatible land uses
around a military airport and established an open line of communication between the
base, developers and surrounding communities. The enactment of these laws place
Arizona as a national leader with regard to explicit statutory procedures for
development around a military airport.
After the successful passage of SB 1514 and SB 1525, the Intergovernmental Relations
Department's focus shifted to a more thorough analysis of the other non-legislative
options available to further advance the cause of supporting Luke Air Force Base.
From their national research, the Intergovernmental Relations Department staff has
learned that other states have developed innovative programs, such as the
establishment of statewide defense alliances and grant programs to assist local
communities in their efforts to protect their military bases. Clearly, the states of Florida,
Texas, and California have taken the most proactive paths and have emerged as
national leaders in protecting their military installations.
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To assist with the research and development of these efforts, the City of Glendale hired
Lieutenant General Eugene Santarelli on March 13, 2001. Lieutenant General Eugene
Santarelli is President of S'Relli Consulting, LLC, a Tucson based consulting firm.
General Santarelli began his consulting company in 1998, after serving in the United
States Air Force for 32 years and achieving the rank of Three-Star General.
The first element of General Santarelli's work was to familiarize himself with the issues
facing Luke Air Force Base and its operations. As part of that process, General
Santarelli met with base officials and spent the past several months meeting with more
than 30 West Valley Mayors, members of the County Board of Supervisors,
representatives from West Valley Associations, developers, and individual property
owners in the vicinity of Luke Air Force Base. During his presentation, General
Santarelli presented to the Council the common themes expressed throughout these
meetings.
Based upon the research from other states and the common themes expressed during
his series of meetings, General Santarelli developed a list of recommended concepts
that could be implemented in Arizona. These concepts include a statewide economic
impact study of Arizona's military installations, a West Valley area land use plan, and
the creation of a statewide commission or alliance to develop a master plan for the
future of Arizona's defense community. General Santarelli provided the Council with a
thorough presentation on each of these recommendations.
On February 27, 2001, Senators Carl Levin (D-Michigan) and John McCain (R-Arizona)
introduced Senate Bill 397, the Base Realignment and Closure Bill. This bill calls for
the Defense Base Closure and Realignment Commission to conduct two rounds of
base closures, one in 2003 and one in 2005. General Santarelli updated the Council on
the current status of this legislation and explained its potential impact on Luke Air Force
Base. General Santarelli also discussed other current issues relating to Luke.
This was General Santarelli's first update to the Council.
On March 13, 2001, the City of Glendale entered into a one-year contract with General
Santarelli for a cost not to exceed $50,000.
This item was presented to the Council for information and discussion purposes.
Councilmember Lieberman asked if the House of Representatives (House) had a bill
similar to Senate Bill 397. Mr. Santarelli stated that they did not. He said he did not
believe there was strong support for the bill in the Senate and even less support in the
House.
Councilmember Clark questioned if an Executive Order could be done to reduce
expenditures should Senate Bill 397 not pass. Mr. Santarelli said, while it could be
done, it has not been done in the past and it would be a difficult path to take.
Councilmember Clark asked how they could get Maricopa County and Board of
Supervisors to support protecting Luke Air Force Base. Mr. Santarelli stated that he
had met with the County Supervisors and the County is a big participant in the process.
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Councilmember Martinez asked if they had to conduct a state economic impact study.
Ms. Rudibaugh Duffy stated that it could be done during the administrative effort.
Mayor Scruggs noted that the Luke-West Valley Council has started working directly
with cities and school districts on joint land use planning.
Councilmember Clark asked Mr. Santarelli if he would be registering Glendale's
concerns with the Federal Aviation Administration (FAA). Mr. Santarelli replied that this
was the reason why he wanted to be involved in air space issues. Ms. Rudibaugh Duffy
noted that a consultant is currently reviewing the plan and the consultant's comments
are due on July 25, 2001. Councilmember Clark pointed out that the consultant is
looking at technical aspects of the plan and has failed to address the fact that Luke's
airspace is being encroached upon. Ms. Rudibaugh Duffy stated that the consultant
had contacted Luke to obtain their thoughts on the plan. She offered to provide copies
of the consultant's latest report.
Councilmember Lieberman said increased commercial flights will cause a major
problem in the area. Mr. Santarelli agreed. He stated that encroachment of airspace
issues are just as important as encroachment of land issues.
Vice Mayor Eggleston asked Mr. Santarelli to find out from Luke if their flights were
actually being impacted.
Councilmember Clark stated it would be difficult to convince her that encroachment was
not already occurring.
Councilmember Lieberman asked how many hours of operation Luke has lost due to
commercial flights. Ms. Rudibaugh Duffy explained that the change in flight patterns
was due to weather. She noted that they lost approximately $300,000 in flight
operations in April of 2000.
In response a question posed by Mayor Scruggs, Mr. Santarelli replied that the base
loses training opportunities when commercial flights are rerouted into its airspace. He
said encroachment could impinge on Luke's ability to accomplish its mission. Mayor
Scruggs said airspace encroachment is more serious than land use encroachment.
She asked if they were able to determine that the increase in air traffic over Glendale
was the result of FAA decisions. She stated that the goals and objectives of the FAA
and the Phoenix Air Space Users Working Group (PAUWG) are very different and are
often in conflict with Luke's goals and objectives.
Councilmember Martinez expressed his opinion that the recommendation for a reliable
revenue stream does not seem promising. He questioned why there was not more
interest on a national level. He suggested establishing a program similar to soil banks,
which were created to assist farmers. Mr. Santarelli expressed his opinion that, in the
past, no one perceived that there would be a problem relative to the base's ability to
accomplish its mission. He said they now recognize that a problem is on the horizon
and moving Luke would be a significant expense for American taxpayers.
Councilmember Lieberman noted that the Department of Agriculture established land
banking to take care of crop surpluses, thereby maintaining crop values.
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Councilmember Clark said the military has finally realized that they are large property
owners and make substantial investments in their communities and states. She said
they are definitely stakeholders in terms of land planning. She noted that there are only
four air force bases with similar ranges, and that the Barry M. Goldwater Range suffers
from the least encroachment. Mr. Santarelli stated that this was another reason why
the Air Force is starting to acknowledge the importance of what goes on around Luke
Air Force Base.
Councilmember Frate stated that he was comfortable with Mr. Santarelli's
recommendations.
Mayor Scruggs thanked Mr. Santarelli for his efforts. She stated that his
recommendations were well thought out and will serve as the basis for future
discussions and actions. She stressed the importance of air space issues.
ADJOURNMENT
The meeting was adjourned at 4:00 p.m.
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