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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 9/10/2018 City of Glendale, 5750 West Glenn Drive Glendale, AZ 85301 GIENVE { Meeting Minutes Tuesday, September 10, 2018 10:00 A.M. Special Workshop Meeting Civic Center Annex City Council Mayor Jerry Weiers Vice Mayor Lauren Tolmachoff Councilmember Jamie Aldama Councilmember Joyce Clark Councilmember Ian Hugh Councilmember Ray Malnar Councilmember Bart Turner CALL TO ORDER Mayor Weiers called the meeting to order at 10:01 a.m. ROLL CALL Present: Mayor Jerry Weiers Vice Mayor Lauren Tolmachoff Councilmember Jamie Aldama • Councilmember Joyce Clark Councilmember Ian Hugh Councilmember Ray Malnar Councilmember Bart Turner Also Present: Kevin Phelps, City Manager Tom Duensing, Assistant City Manager Jack Friedline, Assistant City Manager Michael Bailey, City Attorney Julie K. Bower, City Clerk WORKSHOP SESSION 1. COUNCIL POLICY GUIDANCE—SESSION 7 Presented By: Brian Friedman, Economic Development Director Sam McAllen, Development Services Director Sarah Murley, Economist,Applied Economics Ms. Bower read the item by title. Ms. Murley said in looking at the fiscal impacts of residential development, there were three density scenarios: high density(HD) at 20 units per acre; medium density (MD) at 3 units per acre; and low density(LD)at 1 unit per acre. The results represented annual impacts in 2040 with a focus on operating and maintenance (O&M)funds including General Fund, Transportation Sales Tax, Police and Fire Special Revenue and one-time revenues related to construction. Ms. Murley said more housing units and population in the medium density scenario resulted in greater revenues but also greater expenditures. High density was much more efficient on a per housing unit basis. The net impact per housing unit was: HD -$27 MD - ($400) LD - ($818) Councilmember Clark asked if police &fire expenditures included new facilities. Ms. Murley said the expenditures were strictly for operations which included new staff and equipment. Councilmember Turner asked if the personnel costs were apportioned to new residential. Ms. Murley said that was correct. Vice Mayor Tolmachoff said there were more people in the HD, but the costs were lower for police City Council Meeting Minutes-September 10,2018 Page 2 of 5 and fire services. Ms. Murley said the call rate was calculated per acre based on the land use, the cost per call and the number of calls generated. Real data was used to estimate the costs. Councilmember Clark said the least amount of total loss to the City came from HD and the greatest loss from MD. Ms. Murley said that was correct but residential development did not occur in isolation. The basic revenue and expenditure structure for O&M would be the same for infill development versus annexation sites except there would be no significant increase in maintenance for streets and parks and minimal impact on fire for infill. There would also be the potential for economies of scale for public works. Ms. Murley said total household spending ranged from $6 million to$14 million for the three scenarios: HD - $13 million MD - $14.4 million LD -$6.5 million Ms. Murley said for the purpose of the example, medium density became a positive net impact but a mixed-use had to be considered. Higher-valued properties did not offset. Councilmember Clark said even if some residential was incorporated, the costs might be offset because of retail and industrial. Council had to balance tangible data versus its vision for what it wanted west Glendale to look like. Did it want to continue to be a sea of homes or did it want to create enclaves. There were things to think about such as a mixture of all three densities. Mr. Phelps said the questions was, if Council decided to have residential, could it look at it as a job center and create the commercial core. Residential was very inefficient and the layout of the City was challenging for providing municipal services to residential areas. There were no development impact fees (DIF)for residential in the area to pay for infrastructure so residential was not a panacea. Councilmember Clark asked if there were any areas that were entitled to residential. Mr. McAllen said Zanjero Pass was zoned residential and there was residential at Woolf Crossing. Councilmember Turner asked if the Zanjero Pass pre-annexation development agreement (PADA)considered annexation. Mr. McAllen said that was correct, it did consider annexation. Councilmember Turner asked if HD was allowed within the Luke Compatible Land Use Area. Mr. Friedman said it was not but there were special caveats such as if it existed before 2000 but there was very little change for greater than 60 units per acre. Councilmember Malnar asked if they were existing subdivisions or projected subdivisions. Mr. McAllen said there was partial build-out. Mr. Friedman said it was low density housing. City Council Meeting Minutes-September 10,2018 Page 3 of 5 Councilmember Malnar asked if annexation was a possibility. Mr. Bailey said annexation would be at the request of the property owners. It was very unlikely that the City would annex in one lot at a time. Councilmember Clark said Council had to recognize that a developer might want to put in residential where it was allowed. That could be forestalled by indicating what the vision was for the area. Ms. Murley said the undeveloped area totaled 8,662 acres, some of which had been annexed. Regional Mixed Use (RMU), which was 100% commercial, totaled 1,550 acres and the Luke Compatible Land Use (LCLU)was 5,888 acres with 50% agricultural and 50% commercial/industrial. Ms. Murley said the fiscal impact assumed all vacant parcels. The net impact of 100% annexation, with a 2.9% sales tax, was $24 million and 83,000-84,000 jobs and a 2.2% sales tax, was $16 million. The one-time revenues with the 2.9% sales tax was $347.5 million and with a 2.2% sales tax, it was$311.9 million. The net impact with a 75% annexation was $15.7 million and with a 50% annexation, it was $7.4 million. Ms. Murley said a commercial focus yielded the highest net impact based on a share of sales tax-generating uses. A residential focus yielded a moderate net impact with more state-shared revenues but higher service demands. Ms. Murley said undeveloped parcels were more likely to annex than developed.Additional annexation might bring new sales and property tax revenues but would also bring additional O&M costs. Mr. Phelps said direction was needed on what type of policy ranges staff should be working on to develop a framework to adopt a policy for annexation. It was moved by Vice Mayor Tolmachoff&seconded by Councilmember Turner to hold an executive session. Motion carried 7-0 Council entered into executive session at 11:42 a.m. It was moved by Councilmember Clark and seconded by Vice Mayor Tolmachoff to adjourn the executive session. Motion carried 7-0 Mayor Weiers adjourned the executive session at 12:11 p.m. Mayor Weiers reconvened the workshop at 12:15 p.m. Councilmember Clark supported an aggressive annexation policy with retail, commercial and industrial that discouraged residential. Vice Mayor Tolmachoff said the Loop 303 area had the most potential. More information was needed regarding the Luke contour. Councilmember Malnar wanted to know if industrial and commercial was allowed in the contour. City Council Meeting Minutes-September 10,2018 Page 4 of 5 • Mr. McAllen said the information would be provided. Councilmember Aldama supported some residential. He liked the conservative outlook on revenue with the current sales tax and a reduced rate. Councilmember Turner said an agreement existed for the modified Loop 303 area and included the section east of Citrus and Camelback. He was cautious about bringing in developed areas and said LD was the least desirable. ADJOURNMENT A motion was made by Councilmember Bart Turner, seconded by Vice Mayor Lauren Tolmachoff to adjourn the meeting. AYE: Mayor Jerry Weiers Vice Mayor Lauren Tolmachoff Councilmember Jamie Aldama Councilmember Joyce Clark Councilmember Ian Hugh Councilmember Ray Malnar Councilmember Bart Turner Passed Mayor Weiers adjourned the meeting at 12:27 p.m. I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the meeting of the Glendale City Council of Glendale, Arizona, held on the 10th day of September, 2018. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 25th day of September, 2018. Oar(re K. Bower, MMC, City Clerk City Council Meeting Minutes-September 10,2018 Page 5 of 5