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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 3/5/2002 * 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 March 5, 2002 1:30 p.m. PRESENT: Mayor Elaine M. Scruggs, Vice Mayor Thomas R. Eggleston, and Councilmembers Joyce V. Clark, Steven E. Frate, David M. Goulet, H. Phillip Lieberman, and Manuel D. Martinez ALSO PRESENT: Ed Beasley, City Manager; Terry Zerkle, Assistant City Manager; Rick Flaaen, City Attorney; and Pamela Oliveira, City Clerk 1 . COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT PARTNERSHIPS PROGRAM FUNDING RECOMMENDATIONS CITY STAFF PRESENTING THIS ITEM: Ms. Gloria Santiago-Espino, Director of Community Housing & Revitalization; and Mr. Gilbert Lopez, Neighborhood Revitalization Manager OTHER PRESENTERS: Ms. Lasca Beck, Chair of the Community Development Advisory Committee The Community Development Advisory Committee (CDAC) recently concluded an extensive public application process for the Fiscal Year 2002/2003 Community Development Block Grant (CDBG) and Home Investment Partnerships Program (HOME). The Committee reviewed 32 applications for CDBG funds and 2 applications for HOME funds. CDBG In Fiscal Year 2002/2003, the City will receive $2,097,000 in CDBG funds from the U.S. Department of Housing and Urban Development (HUD). These funds are allocated to the City to meet the following national objectives: activities that benefit low and moderate income individuals, activities that eliminate slum and blight, and/or activities that address an urgent community need. To properly administer the CDBG grant, $356,490 of the $2,097,000 entitlement (17%) will be reserved for administration. Administrative functions include coordinating the application process, preparing performance plans, providing sub-recipient contract administration, and complying with federal regulations and CDBG program guidelines. 1 For housing rehabilitation and demolition activities administered by the Neighborhood Revitalization Division, $660,000 will be reserved out of the $2,097,000 entitlement (32%). These programs include the Single-Family Housing Rehabilitation Program, Roof Repair/Replacement Program, and related lead-based paint testing and hazard reduction. The CDBG funding requests have been separated into two categories: Public Services and Physical Improvement Projects. A maximum of 15% of the $2,097,000 entitlement ($314,550) may be allocated to Public Services. Glendale allocates the full 15% to services that benefit seniors, youth, and victims of domestic violence, employment programs, and programs to prevent homelessness. The funds available for allocation to Physical Improvement projects will be $899,762. This includes $133,802 in unspent CDBG funds from activities completed in prior years. The following table provides a summary of the requests. Fiscal Year 2002/2003 Entitlement $2,097,000 Public Services Physical Improvements Number of Applications 22 10 Total FundingRequests $523,052 $840,548 Amount Available $314,550 *$899,762 *Includes $133,802 of prior year funds approved for redistribution by the Committee. For Fiscal Year 2002/2003, the CDBG funds available for Physical Improvement Projects ($899,762) exceeded the total funding requests. The CDAC has recommended that two applicants receive CDBG funds in excess of the amounts requested and that any remaining CDBG funds be allocated to the Neighborhood Revitalization Division for contingencies. HOME For Fiscal Year 2002/2003, the City will receive $552,308 in HOME funds from the Maricopa HOME Consortium. The Consortium is comprised of Maricopa County and all of the Valley's cities, with the exception of the City of Phoenix. Maricopa County is the lead agency of the Consortium. The purpose of the Consortium is to oversee the administration of the HOME funds. To properly administer the HOME program, $33,139 of the $552,308 allocation (6%) will be reserved for administration. The administrative functions for the HOME Program are similar to the CDBG program. The amount of HOME funds available for allocation to activities will be $519,169. HOME funds may only be used for housing-related activities such as first-time homebuyer programs and housing rehabilitation. The following table provides a summary of the requests: 2 Fiscal Year 2002/2003 Allocation $552,308 Number of Applications 2 Total Funding Requests $430,000 Amount Available $519,169 For Fiscal Year 2002/2003, the HOME funds available for distribution ($519,169) exceeded the total funding requests. The CDAC has recommended that the two applicants receive HOME funds in excess of the amounts requested and that any remaining HOME funds be allocated to the Neighborhood Revitalization Division for its housing rehabilitation programs. Since Fiscal Year 1977/78, the City of Glendale has received over $32,893,000 in CDBG funds. In addition, since 1992, the City has received over $5,053,596 in HOME funds. These funds have supported numerous activities that have benefited thousands of residents. In late October and early November of 2001, the Neighborhood Revitalization Division held an orientation meeting and a series of mini-workshops for prospective grant applicants. The workshops focused on agency responsibilities and financial accountability. Mr. Ray Weinstein, the Vice Chair of the CDAC, met with the Glendale City Council on November 20, 2001. At that meeting, the Council requested that the CDAC consider funding housing projects, programs for seniors and youth, demolition activities, employment services, and meal programs. The CDAC recommended funding for the types of activities suggested by the City Council. On December 19, 2001, the Committee reviewed the City Council's direction and received the grant applications. At this meeting, the CDAC also recommended that CDBG funds be pre-allocated to the City's housing rehabilitation programs and demolition activities. On January 23 and 24, 2002, the CDAC held public hearings for verbal presentations by public service applicants. On January 30, 2002, the CDAC held a public hearing for verbal presentations by physical improvement and HOME applicants. On February 6, 2002, the CDAC met to formulate their recommendations for Council review. On October 11, 2001, notices of the upcoming grant cycle and orientation meeting were mailed to prospective CDBG and HOME applicants. In addition, a public notice was published in The Glendale Star on October 18, 2001, notifying interested parties of the availability of funds and the orientation meeting. On January 10 and 17, 2002, public notices were published in The Glendale Star, advertising the public hearings. Notices were also published in the Arizona Republic on January 9 and 16, 2002. The CDBG and HOME programs are federally funded. The HOME program requires a 25% match from non-federal funds. For those HOME projects that are administered by the City, an annual match allocation of $25,000 is provided in the General Fund budget. The CDBG program does not have a match requirement. 3 This item was presented for review of the funding recommendations from the Community Development Advisory Committee and to provide staff with direction. Councilmember Clark questioned Ms. Beck regarding several requests which were recommended for complete funding. One of those requests was from the Children's Center for Neuro-Developmental Studies. She did not see how providing additional parking for this facility would directly benefit the community. She suggested that those funds be utilized for other requests that provide a direct benefit. Ms. Beck explained the Committee's evaluation of the benefit of providing the additional parking. She also noted that the recommended amount for two of the HOME requests was over the requested amount. Ms. Beck responded that the Committee chose to allocate the requested amount, plus the remaining unallocated balance in the fund. Councilmember Clark asked why those unallocated funds were not allocated to neighborhood revitalization. Mayor Scruggs questioned Ms. Beck regarding the use of unallocated funds. Ms. Beck responded that the Committee faced some tough decisions and they felt that their recommendations were appropriate. The two HOME requests from Community Services of Arizona, Inc. and Los Vecinos Housing Development, Inc. focused on first- time home buyers and acquiring vacant lots to construct new homes. Councilmember Goulet explained that the additional parking at the Neuro- Developmental Studies facility would address a traffic safety issue. He said he supported the recommendation to fund the request. Councilmember Lieberman noted that the Committee had recommended funding in full the request of the West Valley Child Crisis Center. He said he supported this funding. Councilmember Martinez noted that this was the first time additional funds were available in a funding category. He inquired about funding from other agencies for these project/services. Ms. Beck responded that entities requesting funds do receive funding from other agencies. The Committee includes other funding sources in its evaluation criteria. Mayor Scruggs expressed the City Council's appreciation for the Committee's efforts and she directed that the recommendations be brought to a Regular City Council Meeting. 2. REQUEST BY ORANGEWOOD WEST FOR INCLUSION IN THE SEWER MAIN EXTENSION PROGRAM CITY STAFF PRESENTING THIS ITEM: Mr. Tim Ernster, Deputy City Manager; Mr. Larry Broyles, City Engineer; and Mr. Glenn Compton, Senior Civil Engineer. As a result of the Bond Election passage in November of 1999, the Glendale City Council adopted a formal process for requests received from neighborhoods for the installation of main line sewers to serve areas within Glendale currently using septic systems. 4 The City of Glendale will construct main line sewers and the service taps up to the dedicated right-of-way at no cost to the property owner, subject to meeting the proper application requirements. The property owner will still be responsible for paying the sewer impact fee, obtaining permits, and installing the service line from the house to the new system, and abandoning their septic system. Mr. Brian K. Mathias, a homeowner in the Orangewood West subdivision, submitted a request to participate in the sewer main extension program for the area on either side of 79 Lane from Orangewoog to Myrtle Avenues. Mr. Mathias petitioned 18 of the 19 homes on either side of 79 Lane that would potentially be served by the sewer main extension in this area. Sixteen of the properly owners are in favor of the program and would be willing to enter into an agreement with the City to connect to the sewer and pay the sewer impact fee in advance of the design of the sewer. All of the 18 homeowner§ signed a petition saying they would not object to the construction of a sewer in 79t" Lane. Engineering staff verified that the signatures on the petitions matched the ownership shown on the tax assessor's records. Orangewood West is not in competition with any other neighborhoods for inclusion in the Sewer Main Extension program at this time. When more than one application for inclusion in the Sewer Main Extension Program is received, priority is given to the applicant who meets the most criteria of the program. Although Orangewood West is the only applicant for the program at this time, staff did complete an evaluation to determine how they meet the criteria of the program. The following is a summary of how Orangewood West fits the evaluation criteria for the program and is provided for information only. Orangewood West has not provided any documentation that shows any of the properties to be a high potential for a public safety concern, such as ground water or surface contamination from a failing septic system. However, they have noted concern over the age of their septic systems and the increased frequency of pumping to maintain their systems. There are no properties located within close proximity to the City's domestic water wells. The closest City well is over 1,980 feet from the closest property, which is well beyond the 300-foot required. Eighty four percent of Orangewood West homeowners have agreed to pay the sewer impact fee and connect to the sewer within one year of completion. This is above the minimum of 40% required for the program. A cost/benefit analysis was done to determine the cost per property to provide the sewer service to the proposed area. Based on the conceptual design of the sewer main, the approximate design and construction cost would be approximately $308,000 to serve 19 properties, which equates to $16,210.53 per properly. The Sewer Main Extension program was presented at the May 30, 2000 Council meeting and the Council adopted a resolution. Since the approval of the program, notification has gone out in newspaper articles and the program has been discussed at various neighborhood meetings. Staff sent out a mailing in August of 2000 to individual property owners that were identified as being on septic systems. Engineering Department staff provided program information and petitions. They also met with neighborhood groups to help various neighborhoods participate in the sewer main extension program. Various areas and subdivisions, including Secluded Acres, Arrowhead Valley and Arrowhead Estates have circulated petitions since the program was introduced. However, this is only the third 5 neighborhood since Hidden Manor and Del Ray Farms to successfully gather the necessary support to meet the program requirements. The cost of $308,000 is available in the Sewer Main Extension Bond Fund for the construction of this project. This item was presented to provide direction to staff. Councilmember Clark said 100% of the owners of currently occupied houses, with the exception of one person who is selling their house, support the request. She said the residents are willing to continue with their current septic system until the City can address the issue. In response to Councilmember Martinez' question, Mr. Compton said the sewer impact fee for a one-inch meter totals $2,800 per lot. Mr. Broyles said Mr. Brian Mathias had indicated that 3/4 inch services would service the lots; therefore the impact fee would be lower. He said property owners are still responsible for abandoning their septic system and extending service from their house to the property line. Councilmember Martinez asked if the cost of connecting to the system was similar for all neighborhoods. Mr. Broyles explained that the cost of sewer line alignment depends on the location of the water mains. Councilmember Lieberman said extending service from the septic systems to the street would be the biggest expense because most of the septic systems are located in the back of properties. Mr. Compton agreed with Councilmember Lieberman. He stated that septic systems are typically, but not always, located in the back. Councilmember Frate asked if they would be able to coordinate this project with any other street improvement projects. Mr. Broyles said there are no street improvement projects currently scheduled for the area. He stated that they typically do some type of resurfacing once the sewer line is installed. Councilmember Martinez asked if it would be less expensive for the homeowners if their septic systems were located in the front. Mr. Broyles responded in the affirmative. He explained that the length of service line needed is the most significant cost factor. Councilmember Martinez questioned whether they could determine the location of the septic systems in Granada Estates to see if it could raise their interest level. Mr. Compton said, while that information could be obtained, it is likely the majority of the septic systems would be located in the back of the property. Vice Mayor Eggleston expressed his opinion that they should go forward with the request. The Council agreed with Vice Mayor Eggleston. 3. GLENDALE GATEWAY AND NORTHERN CROSSINGS DEVELOPMENT UPDATE CITY STAFF PRESENTING THIS ITEM: Mr. Jim Colson, Economic Development Director. 6 OTHER PRESENTERS: Mr. Steve Ellman, Chairman and Chief Executive Officer of The Ellman Companies; and Mr. Jeff Hecht, Director of Public Affairs of The Ellman Companies. The purpose of this item was for City staff and representatives from the Ellman Group to provide an update on the Coyotes - Glendale Gateway and the Northern Crossings development projects. The Ellman Group will provide information regarding the general status of the projects, what has transpired to date, groundbreaking information, and the tentative construction schedule. 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 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. As a result of the action taken by the Council, the City of Glendale will be the home to 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, now called Northern Crossings, 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 Glendale Gateway and Northern Crossings. 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 revenue, which will help 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 for information, discussion and staff direction. 7 Glendale Gateway Mr. Ellman said they were working diligently and reviewing various aspects of the site plan. He reported that architectural and engineering firms reviewing the site plan had requested limited changes. He said they were currently running financial models and timetable lines on each of the suggested modifications. Mr. Hecht said one of the first changes they would propose is a name change. He stated that they were currently working with marketing and public relations people to choose a name. He said they were reviewing two potential dates for a groundbreaking: March 29t or April 2nd. He explained that they were attempting to compile a VIP (very important people) attendance list and coordinate a groundbreaking ceremony that coincides with the team's schedule. Mr. Colson stated that the Planned Area Development was currently in the review process and the contract with HOK Architects had been signed. He said the Perini Construction building contract was in negotiation and expected to be signed. He noted that timetables from HOK Architects and Perini Construction identify a 17-to-20-month period to build the arena. He stated that they expected to have a guaranteed maximum price by May 15tH. He said it appeared that the arena would be roughly 601,000 square feet and consist of 67 suites, 12 party suites, 726 corporate seats, 8,428 lower bowl seats, and 5,644 upper bowl seats. Mr. Colson noted that the seating capacity for concerts and family venues would be higher. He said they were in the final stages of signing two national marketing and leasing negotiation contracts, one with an entertainment group and one with specialty retail groups. He stated that they had committed for a space at the International Council of Shopping Centers and were developing a scaled, fully lit, and animated project model. He said they were also starting to design marketing brochures, as well as a web site. Councilmember Lieberman asked if they had considered holding a naming contest. Mr. Ellman responded in the affirmative. Councilmember Lieberman noted that March 29th is Good Friday and a planned budget workshop was scheduled for April 2'. Mr. Ellman explained that the proposed dates were based strictly on the team's schedule. He assured the Council that they would not make a decision on the date withgut the Council's input. Mayor Scruggs suggested that they remove March 29t from consideration. She explained that the Council has, in the past, received very negative feedback when public events were scheduled on days of significance. Mr. Ellman assured the Council that they would work with Mr. Colson to identify a series of possible dates. Councilmember Goulet said a number of people had asked if they were still on track to open at the start of the 2003 season. Mr. Ellman said it was too early to forecast an opening date. He saidit was anticipated that the opening of the hockey season would change to October 15th and it might be possible for the team to play their first 10 to 15 games on the road. He said the National Hockey League (NHL) would have to know the arena's status by next May, when the season schedule is confirmed. He stated that they would push everyone involved to make the season opening. He noted that they would pay a penalty to America West Arena if they had to start the season there. Councilmember Clark asked how groundbreaking could proceed without PAD approval. She said doing so would send the wrong message to residents who have questions about the PAD. Mr. Colson said the development agreement contemplated that there would be a groundbreaking prior to PAD approval. He said any permits received to do the groundbreaking would be at risk and there would be no major funding of the bonds 8 until the PAD was approved. Councilmember Clark asked when the annexation would be completed. Mr. Flaaen clarified that the annexation for the Coyotes project had already been completed. Mayor Scruggs asked how the number of seats would increase for concerts or family events. Mr. Ellman explained that additional seats would be placed on the floor of the arena. Northern Crossing Development (Formerly Manistee Town Center) Mr. Ellman stated that they were in final sales contract negotiations with two major users. He suggested that the City consider holding a groundbreaking ceremony for Northern Crossing as well. He noted that it was an achievement deserving of community recognition. He said they were also negotiating with several pad users and tenants. He noted that they expected to have the financing finalized very soon. In response to a question posed by Mayor Scruggs, Mr. Ellman said they had basic commitments on approximately 400,000 of the 500,000 square feet of space. Vice Mayor Eggleston reported that that residents located north of the site had expressed their desire for nice restaurants. Mr. Ellman said they were talking with representatives of a number of "sit-down" restaurants. Vice Mayor Eggleston said the residents also want the building and landscaping to have a first-class appearance. Mr. Ellman assured Vice Mayor Eggleston that it was their intention to develop a first-class site. Councilmember Goulet agreed that Northern Crossing warrants a groundbreaking. He stated that a number of neighborhoods would welcome the opportunity to attend. He said it is important to note that there will be a number of retail and dining tenants. Councilmember Clark asked if the 400,000 square feet includes major tenants. Mr. Ellman responded in the affirmative. He noted that the two major tenants make up approximately 350,000 square feet. He explained that the ultimate size of each tenant will determine the total number of available tenant spaces. He stated that they were attempting to attract two or three 10,000-15,000 square foot sub-major retail shops. Vice Mayor Eggleston noted that the bite plan also called for stores along 55th Avenue and pad sites along Northern and 59t Avenues. Mr. Ellman agreed with Vice Mayor Eggleston. Councilmember Martinez asked when the cleanup of the site would be completed. Mr. Colson stated that the City was currently in the final stages of cleanup. Mr. Ellman said they would soon have a set of schematic drawings of the arena for review by the Council. Councilmember Frate asked Mr. Ellman how he was able to get Mr. Gary Bettman, National Hockey League Commissioner, to agree to attend the groundbreaking. Mr. Ellman explained that, although Mr. Bettman had offered to come, his attendance would depend on the ultimate date chosen for the ceremony. He said they might recommend that Mr. Bettman come after the groundbreaking so as not to take anything away from the City and Council. 9 ADJOURNMENT The meeting was adjourned at 2:45 p.m. 10