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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. 1 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. 2 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. 3 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. 4 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. 5 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. 6