HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 11/2/2004 *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
November 2, 2004
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; Pam Kavanaugh, Assistant City
Manager; Craig Tindall, Acting City Attorney; and Pamela Hanna,
City Clerk
1. REDEVELOPMENT IMPLEMENTATION STRATEGY
CITY STAFF PRESENTING THIS ITEM: Mr. lain Vasey, Economic Development
Director; Mr. Jon Froke, Planning Director and Ms. Jennifer Reichelt, Business and
Redevelopment Special Projects
This is a request for the City Council to provide direction on the proposed strategies to
encourage developers to partner with the city on redevelopment projects within the
city's Redevelopment Area.
The strategies being presented will encourage economic development through
reinvestment in the community and increase financial stability through generation of
new sales and property tax opportunities.
The Redevelopment Area designated by the Council in 2002 is bounded by 43ro, 67th,
Orangewood and Maryland Avenues, as identified in the City Center Master Plan
(CCMP). The CCMP outlines the city's vision for the redevelopment area for the next
five to twenty-five years.
A number of development trends have emerged in the Valley since the CCMP was
adopted in 2002. Some of these recent trends are:
• Auto dealers have relocated to freeway locations.
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• There is increased interest from developers in urban sites and redeveloping
areas for mixed-use retail, office, and residential loft projects. Investments in
"urban villages" are popular among a number of demographic groups.
• Currently there are over 40 acres of vacant commercial land available within the
CCMP area that could be redeveloped into mixed-use projects. Most of the
vacant former auto dealer properties are zoned C-2 or C-3.
Creation of a redevelopment implementation strategy with an outline for use of
incentives may entice developers and encourage investment in the area and, thus, aid
in implementation of goals adopted in the CCMP.
Over the past several years Glendale has seen several auto dealers leave their current
locations along Glendale Avenue to relocate along freeways, where they can increase
accessibility and high visibility. This situation is not unique to Glendale; it is industry
driven and is happening across the country.
The City Council approved the City Center Master Plan on July 23, 2002.
The major emphasis of the redevelopment strategy will be to encourage reinvestment in
the community in the form of neighborhood revitalization, including development of
residential, retail, office, and entertainment uses. This may also include the
development of additional public and parking amenities, and improved
transportation/circulation links.
Although initially the plan targets redevelopment within the CCMP area, it is a plan that
could potentially be used citywide for redevelopment of areas that have not seen recent
investment in properties.
The proposed incentive plan utilizes a tiered approach, with each tier addressing
different stages of the development process. Costs range from nominal staff time in
Tier 1 to potentially millions of dollars for land acquisition in Tier 3. A tiered incentive
plan allows for flexibility in working with individual developers and provides the city with
the ability to tailor the incentives to meet the specific needs of each project.
The Arizona constitution caps the amount of General Obligation bonds spent in
different categories of capital projects (often called "bond capacity"). Economic
development capital projects are in the same category as public safety, libraries, streets
and parking, transit, and cultural/historic capital projects. The city has limited remaining
bond capacity for these types of capital projects based on the Fiscal Year 2005 to
Fiscal Year 2014 capital improvement program. General Fund monies likely will be
needed for redevelopment projects.
The following options were considered:
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• Tier 1 — Customer Service Enhancements
The city will create a Redevelopment Project Team to assist potential developers
in the city's development process. The critical importance of this approach is
that it further enhances the city's customer service and can save a developer
time by assisting the applicant in the process. Creation of project ombudsmen to
provide direct assistance to developers working in the redevelopment area will
also enhance customer service.
• Tier 2 — Development Flexibility
Tier 2 allows the city to modify some of its development standards/guidelines in
cases where the developer's concept or idea for the site meets the city's vision
for the site. Staff proposes updating traditional land use and zoning categories
to permit a mix of uses on a specific site. While these actions may not be
traditional financial incentives, they do allow potential developers more flexibility
and options for development. The city can utilize Planned Area Development
(PAD) zoning with approval of the Council. PAD zoning would allow a mixed-use
project with retail on the ground floor, offices located on the second floor, and
residential lofts above that. In addition to using PADs, the city would look to
cooperatively work with property owners to re-zone C-2 and C-3 properties
where particularly intense uses could otherwise exist. In general terms, there are
a number of development trends being seen across the Valley, where a number
of different uses such as mixed-use loft/retail/office/restaurant projects are built
together forming an urban village. Typical, traditional zoning categories may not
permit such mixes of uses. However, a negotiated development agreement with
implementation through a PAD or other area-specific zoning could permit such a
mix of uses.
• Tier 3 — Public-Private Partnerships
Items within Tier 3 are financial incentives in the form of rebates that may
eliminate some of the costs associated with developing sites and may make
development in the area more attractive and affordable. The city would provide
financial assistance for improvements that will make sites easier to develop,
streamline the development process and reduce the financial burdens of the
developer. The city would be working in partnership with the property owner(s)
to make the land more marketable or more affordable for potential developers.
The most direct way the city can promote redevelopment would be through the
acquisition and assembly of redevelopment sites. If several small sites containing
obsolete buildings are bought, structures removed, and any environmental issues
corrected, the city could then market the sites to developers for desired projects. The
acquisition of property by the city would be through negotiated purchase prices from
willing sellers. Sites would be marketed to potential buyers through an RFP process.
The city would be repaid, in whole, in part, or over time, by the redeveloper. A revolving
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fund could be created to support continued land acquisition for redevelopment
purposes.
An example of a successful public/private partnership redevelopment project is
Northern Crossing wherein an obsolete retail area was redeveloped into a thriving
center.
Staff is seeking direction from the Council regarding the strategy to encourage
redevelopment within the city's Redevelopment Area. Staff is seeking direction from the
Council regarding the strategy to encourage redevelopment within the city's
Redevelopment Area.
Mr. Vasey said the city has had a number of successes, including almost $100 million in
investments over a four-year period since 2000. He stated some of the notable projects
include the 990 Only store on Glendale Avenue and a number of residential projects.
He stated Grace Lutheran Church is implementing a campus master plan that reflects a
significant amount of redevelopment and Catlin Court has seen a number of new
alleyway and streetscape improvements. He said there have also been over 100
residential improvement projects, including rehabilitation of certain areas and 18 Habitat
for Humanity homes. He stated the area is moving forward very quickly, but there are a
number of development challenges. He said there continue to be a number of vacant
and underperforming properties in the area, noting some of the car dealers east of
downtown have relocated. He said the area also faces zoning challenges, explaining
C-3 Zoning is a very intense commercial zoning category that has very few regulations
with regard to the types of businesses allowed. He stated, furthermore, traditional
zoning might not allow a mix of uses like an urban village. He said staff would be
proposing an implementation strategy that will address some of these concerns.
Mr. Vasey discussed current development trends, including the urban village concept,
which has a high density and multi-level buildings with a mix of uses. He said it is
characterized by high quality developments within walking distance to grocery stores,
convenience stores and offices. He stated the concept of an urban village could be
done straight out as in the case of Westgate or through incremental change and
progressive redevelopment. He said the city is beginning to see interest in urban living
from empty nesters and young professionals.
Mr. Vasey stated staff is recommending a three-tiered approach to implementing the
city's redevelopment strategy. He explained the first tier will be to implement customer
service enhancements, including the creation of a staff team to manage projects,
assigning a project manager to work as an ombudsman on specific projects, and
expedited construction reviews.
Mr. Froke explained Tier 2 focuses on how the city will make some of the projects work.
He said some of the necessary tools already exist, such as a provision in the zoning
ordinance that allows auto dealers and other commercial retailers to deal with non-
conforming signage. He noted, to date, two auto dealers on Glendale Avenue have
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used the Conditional Use Permit provision to remove and update existing non-
conforming signs. He stated the city has been using PADs for about 15 years, noting
the Catlin Court Historic area is a PAD in the CCMP area. He said the city has also
successfully used the variance process for infill housing, pointing out a number of
vacant lots have been acquired and variances have been approved by the Board of
Adjustment to allow reduced building setbacks to accommodate infill housing. He
stated there is also the opportunity for Planning Commission or City Council initiated
rezoning requests, noting five of the six voluntary rezoning requests processed earlier
this year were in the CCMP area.
Councilmember Goulet asked if staff has looked at creating an industrial park where
existing downtown businesses can relocate if they no longer fit into the downtown area
once it has been redeveloped. He also asked what the city is doing with regard to
development projects that start but then get stalled, specifically the Eckerd's store at
51st Avenue and Northern. Mr. Vasey said the third tier includes performance based
incentives and private/public partnerships. He agreed the establishment of an industrial
park would give businesses that no longer fit in with the downtown area an alternative
location. He noted his department is actively working with the brokerage community
and the owners of the 515 Avenue and Northern property, helping to market the site to
other users. Councilmember Goulet asked if there are ways the city can help jump start
progress on the 51st Avenue and Northern property, noting the city has received several
calls asking when the store will open and when something will be done with the
building.
Mayor Scruggs asked Mr. Vasey to comment on the other CVS location in north
Glendale as well. Mr. Vasey said in terms of vacant properties, the city has
performance-based incentives, which could include sales tax rebates over a period of
time. With regard to the CVS store at 55th and Bell Avenues, he said he was informed
yesterday that the property has been sold. He said in situations where the market is not
responding in certain areas, the city can become involved through a public/private
partnership to assemble parcels, clean up the properties, and put them back on the
market through an RFP process. He stated it is rare for anyone in the development
community to carry properties three to four years, but a long range approach could be
adopted if the city were involved.
Councilmember Goulet questioned whether incentive based performance measures will
be enough, pointing out the 59th Avenue and Northern store is in a prime location and
yet nothing has happened.
Mayor Scruggs said the Basha's Store at 51st Avenue and Peoria has been a hot topic
for five or more years. She expressed her opinion there is a better chance that a brand
new store will be taken over than a building that has been vacant for years because for
whatever reason the property owner does not want to do something with the building.
Councilmember Lieberman pointed out a similar situation exists at 59th and Bell, stating
the property owner is being paid monthly rent on the vacant building, giving them no
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incentive to look for new tenants.
Mayor Scruggs said there was a time when the city's desire to bring businesses to the
city was so strong they basically gave the businesses whatever they wanted. She
stated the city then went through a time of increasingly stringent restrictions. She said
there now appears to be a loosening of those restrictions throughout the valley in order
to compete in the marketplace. She said the city's Board of Adjustment and Planning
Commission are still imposing the stringent restrictions, asking how they go about
moving the whole city forward with a new strategy in order to achieve its goals for
redevelopment of the area. Mr. Froke said the bottom-line with the city's Board and
Commission is that the desire for quality is still there. He said they work closely with the
Board and Commission to keep them enlightened on trends, such as signage, in other
communities. He noted the Conditional Use Permit provision previously mentioned has
been available for the past six years, but only used twice. He said Glendale has
reached the point where there needs to be a lot of redevelopment to match new trends
and requirements in development standards.
Mayor Scruggs asked if Council's direction to move forward with the ideas presented
would represent a dramatic change in how development looks in the CCMP as
compared to how the city has been trying to make development look in some of the
outlying areas. She asked if citizens are educated as to the fact that Council gives
direction to proceed in a certain way, explaining it sometimes appears everything is
viewed from an individual standpoint versus as part of a strategy. Mr. Froke stated it is
an educational process that starts at the policy level and works down through the
various commissions. He clarified staffs mention of development flexibility was not
intended to indicate a drop in standards. He stated, ultimately, the person who owns
the land controls what is built on the land and their priorities may differ from those of the
city. He said by having the city become involved in land acquisition and the assembling
of properties, the city could, in turn, set a time frame for development and control the
type of development that occurs.
Vice Mayor Eggleston spoke about a situation when he served on the Planning
Commission where a proposal was made by staff for the area between 43`d and 51st
Avenues on Glendale Avenue to be designated for automotive and auto-related uses.
He said the auto dealers were absolutely opposed to the idea because it could
negatively impact their ability to sell their properties in the future.
Councilmember Clark clarified the questions she will ask should not be inferred as an
attack on the concept, expressing her opinion it is entirely appropriate to develop high
density urban village cores, especially within the downtown area. She referred to page
2 of the Draft Redevelopment Implementation Strategy for the CCMP, asking what is
the value of soliciting citizen input if the direction Council gives today implies they
support the use of the proposed strategy during and after the planning process. Mr.
Vasey explained they are talking about developing a concept document, which the
citizen input would then fine tune. He explained it could take several months to identify,
acquire and clean up a property; stating, during that time, the citizen participation
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process on an update to the CCMP can begin. Councilmember Clark said she can
agree with acquiring the properties prior to receiving citizen input, but she cannot agree
if it is staff's intent to solicit development at that time as well. Mr. Vasey explained the
first phase would be land acquisition and preparation for redevelopment. He said,
however, they may also do a test of the market through an RFP while going through the
citizen participation process.
Councilmember Clark referenced page 3, of the Draft Redevelopment Implementation
Strategy for the CCMP, asking why they are setting the benchmark at two acres if a
large assemblage of parcels is encouraged. She asked if there is even the potential of
assembling two acres in downtown Glendale. Mr. Vasey said there is no correct
answer because every property is different. He explained in some instances it might
require three or four acquisitions to assemble a property of only two acres, while at the
same time a 20-acre parcel could be acquired immediately. Councilmember Clark
asked what could be built on two acres. Mr. Vasey said a number of different
developments could be built, such as a three-story building, with retail on the ground
floor, or a 50 unit residential development with underground parking.
Councilmember Clark asked Mr. Froke to explain the fourth item on page 4, of the Draft
Redevelopment Implementation Strategy for the CCMP. Mr. Froke stated a provision
of today's ordinance allows the Planning Director to administratively ,approve a
variance of up to 10 percent. He said the provision is used quite often, primarily with
residential property owners. He explained the proposed concept would allow a level of
flexibility for commercial developers in the CCMP area without having to go through the
Board of Adjustment, Planning Commission or City Council. Councilmember Clark
asked if the streamlined process would come at the expense of citizen participation.
Mr. Froke said many cities in the valley have a Planning Hearing Officer (PHO)who has
the authority by way of the zoning ordinance to hear certain reductions or changes in
site plans. He stated, in order to provide the level of review Councilmember Clark is
referring to, the PHO's decision is appealable to the Planning Commission or City
Council. He said Glendale Planning staff have discussed the concept as a potential
amendment to the zoning ordinance but have not moved it forward through the
executive management team of the city.
Councilmember Clark asked if the city would still be looking at primarily performance-
based incentives in addition to the assemblage of properties. Mr. Vasey said the first
thing they look at is performance-based incentives, but in some cases that is not
enough to make a project financially feasible. He explained they would look at the
financial proforma of the developer and determine how best the city could help.
Councilmember Clark asked who would be responsible for giving the direction to look
for owner occupied as opposed to rental residential, expressing her opinion rental
residential serves to destabilize an area. Mr. Vasey said the city could put a stipulation
in the Request for Proposal that says the city is actively seeking owner occupied or for-
sale product. He stated, however, it is difficult to apply that type of stipulation if the
property is privately owned and the city is not involved beyond the initial zoning and
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development review.
Councilmember Clark asked how the city can ensure underground parking or parking
garages are constructed so as to maximize the land for residential use. Mr. Froke
stated, again, such requirements can be included in the city's RFP.
Councilmember Clark referenced page 5, of the Draft Redevelopment Implementation
Strategy for the CCMP, stating it appears that Council is being asked to allocate
General Fund money as a means of financing the proposed property acquisition
strategy. She said she supports the concept, but there are a lot of competing interests
for General Fund money. She asked if any other sources of funding are available. Mr.
Vasey explained land acquisition for economic development purposes would come out
of the city's Six Percent category bonding capacity, which is very limited. He said the
CIP does not have the necessary capacity to acquire properties, noting some of the
vacant properties on Glendale Avenue cost between $2 and $3 million each. He stated
the opportunities for federal funding and state financing are limited; therefore, the city is
left with General Fund money.
Councilmember Lieberman noted 2.4 acres equates to one block in the old section of
Glendale, stating a decent sized development could be constructed in that amount of
space. He agreed the urban village concept will work well in Glendale and said he
supports the tiered approach proposed by staff. He pointed out the city already offers a
rebate of development impact fees and participated in the demolition costs at Manistee.
He expressed his opinion it is the city's responsibility to use funding for incentives. He
said many in the development community feel Glendale is too strict, expressing his
opinion the flexibility provided by the three-tiered approach is appropriate and will aid in
the city's development. He stated the funds used to acquire properties could be
replenished from the proceeds of land sales.
Mayor Scruggs said she also supports the proposed three-tiered approach. She stated
it is not an issue of implementing strategies to prevent bad things from happening,
explaining they are now doing life support and efforts to redevelop the downtown area
need to start immediately. She said her only objection to the proposed plan is that it
builds in a long lead-time by calling for six to 12 months for the citizen participation
process. She said it is difficult for people to understand that innovation has to happen
to accomplish true vitality if they are not living the effects of a lack of economic vitality.
She said businesses that continue to be viable know what they need to be saved and
the citizen participation process should be weighted in favor of people who have a
financial investment in the area. She stated the proposed strategy is no different than
what other cities have done, noting it was the key to Tempe's success. She stressed
the importance of involving financial institutions, developers, and existing businesses in
the process to gain an understanding of the types of developments that are desired and
considered feasible. She asked that the city not turn away a potential developer simply
because the citizen participation process has not been completed, pointing out people
with the resources to make things happen are not easy to find. She said there might be
instances where the city needs to buy out a property owner that is just sitting on a
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property waiting to see what might happen in the future. With regard to the Northern
Crossings' development, Mayor Scruggs noted the city felt if it did not recoup all of its
money in ten years it was still a good investment because the project would make the
city more livable and desirable for new businesses. She stated she fully supports
setting aside General Fund money starting with the next budget year, pointing out the
city was able to purchase all of the land and build the Civic Center for cash by setting
money aside each year. She expressed her opinion it is more than the right thing to do,
stating it is an investment in the city's future.
Councilmember Martinez said he also believes staff did a good job developing the
proposed strategy. He said the city made an investment at Northern Crossings and he
believes they can do it again in the downtown area. He noted the Council previously
discussed a list of city owned properties with the intent of selling them and using the
proceeds to establish a property acquisition fund.
Councilmember Frate said the proposed strategy shows redevelopment of Glendale
Avenue to be a priority. He stated developers do not want to take the time to assemble
properties; therefore, it is necessary for the city to do so to draw developers to the area.
Councilmember Goulet noted this coming February he will have been in business for
ten years in downtown Glendale. He said the one overriding question when the city
accomplishes a project is "Why did it take so long?" He agreed the six to 12 month
time frame is too long, stating most of the people who support redevelopment of the
downtown area want to move forward at a faster rate. He stated he will meet with 12
developers later this month to ask what they want from the city, expressing his opinion
their first desire will be a faster process. He said development that is occurring
elsewhere in the city is providing a special window of opportunity to get things to
happen in the downtown area as well. He stressed the importance of establishing
private/public partnerships.
Councilmember Clark reiterated her questions should not be interpreted as non-support
for the proposed strategy, explaining her questions were intended solely to solicit
additional information about the policy. She agreed the time is right for the proposed
approach, stating a certain synergy now exists and everyone realizes how critical
redevelopment of the CCMP has become. She expressed her opinion the
improvements to Grand Avenue have helped spur the synergy, as has the fact that
Glendale will host the Super Bowl in a few years. She said she supports the flexibility
and creativity built into the draft proposal, but she is still concerned about the need for
$5 million from the General Fund. She said she would wait to see what is presented
during the next budget cycle before deciding if she could make that type of financial
commitment. She said the city has a lot of underperforming properties on Glendale
Avenue between 67th and 915 Avenues and, while she does not think they should be
appended to the project, they may have to be a focus in the future.
Vice Mayor Eggleston agreed the time has come to stop the debate and move forward
with the proposed strategy.
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Mayor Scruggs recapped the Council's discussion, stating all parts of the proposal have
been accepted. She said two items require immediate action by the Planning Director,
creating the Planned City Center Mixed Use Zoning District and amending the Zoning
Ordinance. Mr. Froke stated he would work with the Deputy City Manager and City
Management to develop a plan.
Mayor Scruggs said the goal of a $5 million set aside in the General Fund would be
discussed during the budget process. Mr. Beasley offered to put a package together,
noting the city has had opportunities in the past to use contingency transfers, the
Utilities contingency, General Obligation Bonds, and CIP funds. Mayor Scruggs
directed staff not to turn away anyone who proposes a project that would contribute to
the city's long-term goal for the area. She asked how the proposed program would be
communicated to existing landowners, business owners and tenants along Glendale
Avenue. Mr. Beasley said Council member meetings and meetings with the downtown
residents and business owners offer a good opportunity to educate the community on
the program. Mayor Scruggs asked what role citizen participation will have in the
process. Mr. Froke explained every land use application requires the citizen
participation process to take place; however, there are ways to streamline the process.
Mayor Scruggs asked if staff anticipates hiring a consultant or doing a citywide search
for people to sit on a committee. Mr. Froke said, after listening to the Council's
discussion, his preference would be to do it at the staff level.
Councilmember Lieberman suggested the city use press releases and the Northwest
Valley Realtor's Association's newsletter to disseminate information to citizens.
With regard to the CVS store at Northern Crossing, Councilmember Martinez asked
how long the city will wait for something to occur and if the city has the option of
purchasing the property. Councilmember Clark expressed her opinion buying the
parcel will result in citizens wanting the city to buy all of the vacant parcels in the city.
Councilmember Martinez explained he offered the idea because he believes the city
should explore any recourse options it may have available to it.
Mayor Scruggs said she is more bothered by the property at 51st and Peoria Avenues.
She stated she would not support purchasing the CVS store. Mr. Vasey announced the
city recently received a VIP application for a supermarket at 51st and Peoria Avenues.
Councilmember Frate stated he is optimistic that someone will purchase the store once
Lowe's opens.
ADJOURNMENT
The meeting was adjourned at 3:10 p.m.
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