[00:00:01]
WE'LL CALL THE MEETING TO ORDER. PLEASE CALL THE ROLL.
[ CALL TO ORDER AND ROLL CALL]
>> THANK YOU. PLEASE STAND FOR THE PLEDGE AND A MOMENT OF SILENCE.
PLEASE BE SEATED. APPROVAL OF AGENDA.
[ APPROVAL OF AGENDA]
>> OPPOSE. MOTION APPROVED. CALL TO THE PUBLIC.
[ CALL TO THE PUBLIC At this time any member of the public is allowed to address the Town Council on any issue within the jurisdiction of the Town Council, except for items scheduled for a Public Hearing at this meeting. The speaker may have up to three minutes to speak. Any persons wishing to address the Council must complete a speaker card located outside the Council Chambers and deliver it to the Town Clerk prior to the commencement of the meeting. Individuals addressing a meeting at the Call to the Public will not be provided with electronic technology capabilities beyond the existing voice amplification and recording capabilities in the facilities. Pursuant to the Arizona Open Meeting Law, at the conclusion of Call to the Public, individual members of the Council may respond to criticism made by those who have addressed the Council, and may ask staff to review the matter, or may ask that the matter be placed on a future agenda.]
AT THIS TIME, ANY MEMBER OF THE PUBLIC MAY ADDRESS THE TOWN COUNCIL.>> I DO, MR. MAYOR. MR. DAVID MORALES IS PRESENT AND WISHES TO ADDRESS THE COUNCIL.
>> MR. MAYOR, COUNCIL, STAFF, AUDIENCE.
IN 2004, I GRADUATED FROM ELLER COLLEGE OF MANAGEMENT WITH A DEGREE IN PUBLIC AND MANAGEMENT AND POLICY.
MY MINOR WAS IN HISTORY, AND IT WAS VERY EDUCATIONAL FOR ME.
EXPRESSLY WHERE WE'RE LOCATED IN MARANA AND ARIZONA, THIS USED TO BE PART OF MEXICO ONCE UPON A TIME.
MEXICO, IT FELT THREATENED, SO IT MADE FOUR INCLURGENTS INTO THE UNITED STATES.
THE FIRST WAS SAN DIEGO, THE ALAMO, THE SECOND ONE WAS SANTA FE IN NEW MEXICO, THE THIRD ONE WAS TUCSON, AND THE FOURTH ONE WAS A 21 MISSIONS IN CALIFORNIA.
THOSE MISSIONS ARE SEPARATED BY IN THE MORNING, THE PRIEST WOULD TAKE OFF, AT DARKNESS, HE WOULD REACH THE OTHER MISSION.
IT WAS JUST A ONE HORSE DRIVE, 21 MISSIONS ALL THE WAY UP TO SAN FRANCISCO.
THE REASON I SAY THIS IS THERE'S A LOT OF SPANISH WORDS IN THE UNITED STATES, A LOT OF THEM, AND IT'S GOOD TO GET THEM RIGHT.
LIKE MARANA, YOU CAN'T SAY ANYE IN ENGLISH, SO YOU JUST SAY MARANA, BUT THE WORD IS MARAÑA.
THERE'S A STREET IN MARANA, A MAIN STREET, SANDARIO.
THAT'S NOT THE CORRECT SPELLING.
THE CORRECT SPELLING IS S-A-N SEPARATION D-A-R-I-A.
IT'S NO DIFFERENT THAN SAN DIEGO, SAN FRANCISCO.
YOU HAVE TO SEPARATE THE WORD SAN S-A-N D-A-R-I-A.
YOU DON'T HAVE TO WORRY ABOUT THE POST OFFICE, YOU DON'T HAVE TO WORRY ABOUT NOBODY.
ALL YOU GOT TO DO IS SEPARATE THOSE TWO, AND YOU'VE GOT THE CORRECT SPELLING.
SANDARIO OR SANDARIO, HOWEVER YOU WANT TO PRONOUNCE IT.
YOU SHOULD HAVE YOUR SIGNS SAY IT RIGHT.
THE SECOND THING IS WHERE MARANA EXIT AND MARANA ROAD MEET.
THAT IS A VERY DANGEROUS INTERSECTION WITHOUT LIGHT.
IN THE DAYTIME THERE'S NO PROBLEM, BUT AT NIGHT, YOU GOT A CURVE COMING IN AND YOU'VE GOT ANOTHER CURVE COMING IN.
YOU GOT TWO WATER RETENTION PONDS, AND YOU'RE WAITING FOR AN ACCIDENT TO HAPPEN THERE.
YOU NEED TO PUT A LIGHT THERE AND THE WAY YOU DID IT GOING TO THE HIGH SCHOOL, JUST PUT A SOLAR THING.
IN OTHER WORDS, USE THE SUN TO LUMINATE THAT AREA.
IF YOU DON'T DO SOMETHING, IT'S JUST A MATTER OF TIME FOR THERE TO BE A MAJOR ACCIDENT, AND I GUARANTEE IT'S GOING TO BE AT NIGHT.
DURING THE DAY, IT'S NOT A PROBLEM, BUT AT NIGHT,
[00:05:02]
YOU GOT TWO CURVES COMING IN, NO LIGHT, NO NOTHING.PLEASE TAKE CARE OF IT BEFORE AN ACCIDENT HAPPENS. THANK YOU FOR YOUR TIME.
>> THANK YOU. I WILL TELL YOU, DAVID, AS YOU MIGHT KNOW, WE'VE WORKED ON, MY LATE WIFE WHEN SHE WAS AT THE CHAMBER, WANTED US TO CHANGE IT TO [FOREIGN], AND IT'S SO HARD TO DO IT ANYMORE BECAUSE WITH COMPUTERS AND STUFF, I UNDERSTAND THE ANYE AND THE DOUBLE L AND DIFFERENT LETTERS IN SPANISH AND MARANA'S THICKET OR BOSQUE, WHICH IS WHAT WE WERE NAMED AFTER AND SANDARIO.
GEORGE LAMIE USED TO TALK TO ME ALL THE TIME ABOUT THAT.
>> WELL, IT'S UP TO YOU GUYS, BUT IF YOU WANT TO CORRECT SPELLING, YOU GOT TO SEPARATE THE WORDS.
IT'S UP TO YOU AND LIKE I SAY, ANYTIME YOU USED TO CHANGE THE NAME, YOU'RE WORRIED ABOUT THE POST OFFICE, ALL THE RESIDENTS CHANGING THEIR ADDRESS, YOU DON'T CHANGE NOTHING.
ALL YOU DO IS CORRECT THE SPELLING.
THE REASON THAT HAPPENED IS LIKE I SAID, THIS WHOLE SOUTHERN AREA, IT WAS SPANISH.
>> IN FACT, WE WERE UNDER THE GADSDEN PURCHASE IS WHERE WE BECAME PART OF THE UNITED STATES.
[ Proclamation Recognizing Drowning Impact Prevention Month (David L. Udall)]
>> ITEM PR 1. PROCLAMATION RECOGNIZING DROWNING IMPACT PREVENTION MONTH.
>> WE DO. YES, MR. MAYOR, THE AQUATICS TEAM IS HERE TO RECEIVE THE PROCLAMATION. [BACKGROUND]
>> YOU MOVE AS A GROUP? [OVERLAPPING]
>> THANK YOU MR. MAYOR. WHEREAS ARIZONA'S FUTURE PROSPERITY DEPENDS UPON THE LONG TERM HEALTH, SAFETY, AND WELL BEING OF THE NEARLY TWO MILLION CHILDREN AND TEENS IN OUR STATE.
AND WHEREAS DROWNING IS A TOP CAUSE OF INJURY AND DEATH FOR CHILDREN AND TEENS IN ARIZONA, AFFECTING NOT ONLY VICTIMS, BUT ALSO FAMILIES, EMERGENCY PERSONNEL, AND OUR SOCIETY AS A WHOLE.
AND WHEREAS CHILD DROWNINGS ARE NEARLY 100% PREVENTABLE, AND WHEREAS RESEARCH PROVEN STRATEGIES CAN SAVE LIVES, INCLUDING CONSTANT AND CAPABLE SUPERVISION, RESTRICTING ACCESS TO WATER, USE OF LIFE JACKETS, SWIMMING LESSONS FOR ADULTS AND CHILDREN AT THE APPROPRIATE AGE, AND RAPID EMERGENCY RESPONSE, INCLUDING CPR.
AND WHEREAS AWARENESS OF THE PROBLEM IS JUST THE FIRST STEP, EVIDENCE-BASED PROGRAMS TO BRING THESE STRATEGIES TO FAMILIES IS THE BEST WAY TO SAVE LIVES.
AND WHEREAS, DURING THE MONTH OF AUGUST, DROWNING PREVENTION COALITION OF ARIZONA, IN COLLABORATION WITH STATE AND LOCAL GOVERNMENTS, THE TOWN OF MARANA, COMMUNITY ORGANIZATIONS, AND PRIVATE CITIZENS, WILL BE ENGAGING COMMUNITIES THROUGHOUT ARIZONA IN A COORDINATED AND COMPREHENSIVE RESPONSE.
NOW, THEREFORE, I, ED HONEA, MAYOR OF THE TOWN OF MARANA, DO HEREBY PROCLAIM AUGUST 2024 AS DROWNING IMPACT AWARENESS MONTH, AND URGE ALL COMMUNITIES AND CITIZENS OF ARIZONA TO PARTICIPATE IN EFFORTS TO REDUCE DROWNING RISK, STRENGTHEN FAMILIES, AND PROTECT CHILDREN AND TEENS. [LAUGHTER]
>> MAYOR AND TOWN COUNCIL, WE JUST APPRECIATE EVERY YEAR YOUR SUPPORT FROM THE DROWNING PREVENTION COALITION OF THIS INCREDIBLY IMPORTANT ISSUE.
JUST FOR YOUR INFORMATION FOR THE SUMMER, PIMA COUNTY THROUGH THE BEGINNING OF AUGUST, HAD THREE WATER RELATED INCIDENTS.
BUT ARIZONA AS A WHOLE, HAS HAD A VERY ROUGH SUMMER.
THE NUMBERS HAVE BEEN VERY HIGH.
KEEPING THIS MESSAGE OUT AND IN FRONT OF EVERYBODY, ALL OF US, WHENEVER WE'RE AROUND WATER WITH FRIENDS, AT POOLS, LAKES, WHATEVER, ALL WE CAN DO TO MAKE SURE THAT WE'RE KEEPING EYES ON THE KIDS IS WE WOULD APPRECIATE EVERYBODY'S HELP AND VIGILANCE ON IT. THANK YOU SO MUCH.
>> THANK YOU FOR WHAT YOU DO AS WELL.
[ Proclamation Recognizing Child Support Awareness Month (David L. Udall)]
>> ITEM PR 2, PROCLAMATION RECOGNIZING CHILD SUPPORT AWARENESS MONTH.
[00:10:01]
>> YOU'RE GETTING STEPS.[BACKGROUND] [LAUGHTER]
>> WHEREAS THE TOWN OF MARANA JOINS THE NATION IN RECOGNIZING AUGUST AS CHILD SUPPORT AWARENESS MONTH AND REAFFIRMS ITS COMMITMENT TO STRENGTHENING ARIZONA'S FAMILIES BY PROVIDING CHILD SUPPORT SERVICES TO IMPROVE THE ECONOMIC STABILITY AND WELL BEING OF CHILDREN.
AND WHEREAS THE STATE OF ARIZONA IS A COMMITTED ADVOCATE FOR OUR CHILDREN WHOSE SAFETY AND SECURITY REMAINS TOP OF MIND.
AND WHEREAS A CHILD WHO RECEIVES EMOTIONAL AND FINANCIAL SUPPORT IS MORE LIKELY TO FEEL SAFE AND SECURE AND IS BETTER EQUIPPED WITH THE COURAGE TO BE THEIR VERY BEST IN LIFE.
AND WHEREAS THE DEPARTMENT OF ECONOMIC SECURITY DIVISION OF CHILD SUPPORT SERVICES OR DCSS IS ROBUSTLY COMMITTED TO PUTTING ARIZONA'S CHILDREN FIRST AND TO HUMBLY SERVE ARIZONANS WITH EXCELLENCE, RESPECT, INTEGRITY, AND KINDNESS, IN ADDITION TO BEING AN OVERALL CHAMPION FOR ECONOMIC GROWTH AND OPPORTUNITY.
AND WHEREAS DCSS IS A STRONG ADVOCATE FOR SHARED PARENTING RESPONSIBILITIES BECAUSE PARENTS AND CHILDREN BENEFIT WHEN BOTH PARENTS ARE ENGAGED WITH THEIR CHILD AT EVERY STAGE, REGARDLESS OF MARITAL STATUS.
AND WHEREAS STRENGTHENING INDIVIDUALS AND FAMILIES WITH AN EMPHASIS ON FISCAL RESPONSIBILITY PROMOTES THE SAFETY AND WELL BEING OF CHILDREN, PROVIDES STABILITY, IMPROVES THE LIVES OF CHILDREN, AND PROVIDES OPPORTUNITIES FOR FAMILIES TO BE ABLE TO ENHANCE THEIR CHILDREN'S FUTURE.
AND WHEREAS CHILD SUPPORT AWARENESS MONTH SALUTES DILIGENT PARENTS WHO SPEND TIME WITH THEIR CHILDREN AND WHO MAKE REGULAR CHILD SUPPORT PAYMENTS TO SAFEGUARD THEIR CHILDREN'S FUTURE.
NOW, THEREFORE, I, ED HONEA, MAYOR OF THE TOWN OF MARANA, DO HEREBY PROCLAIM AUGUST 2024 AS CHILD SUPPORT AWARENESS MONTH.
>> THANK YOU, MAYOR AND COUNCIL MEMBERS.
I DO WANT TO SHARE A FEW BRIEF FACTS.
IN 1995, ON THE 20TH ANNIVERSARY OF THE CHILD SUPPORT ENFORCEMENT PROGRAM, PRESIDENT BILL CLINTON ESTABLISHED AUGUST AS CHILD SUPPORT AWARENESS MONTH IN THE UNITED STATES.
THIS YEAR, GOVERNOR KATIE HOBBS HAS SIGNED A PROCLAMATION RECOGNIZING AUGUST AS CHILD SUPPORT AWARENESS MONTH AS WELL.
ON BEHALF OF THE DES, DIVISION OF CHILD SUPPORT SERVICES, WE WOULD LIKE TO THANK THE MAYOR FOR SIGNING THE MARANA PROCLAMATION THIS YEAR AND RECOGNIZING AUGUST AS AN IMPORTANT TIME TO HIGHLIGHT THE SIGNIFICANCE OF CHILD SUPPORT FOR ARIZONA FAMILIES.
ON AVERAGE, THE DIVISION OF CHILD SUPPORT SERVICES 132,000 CHILDREN EACH YEAR, ASSISTING IN ACCESS TO THE FINANCIAL RESOURCES THEY NEED TO THRIVE.
WE COMMEND DILIGENT PARENTS, INCLUDING THOSE OF THE CITY OF MARANA WHO CONSISTENTLY PROVIDE FINANCIAL SUPPORT FOR THEIR CHILDREN BECAUSE STRONGER FAMILIES
[ MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS]
>> SORRY, I GET A LITTLE BIT ONE.
FIRST, I WASN'T HERE THE FIRST MEETING AFTER OUR LITTLE BIT OF BREAK, BUT THAT WAS NICE.
I'LL BET EVERYBODY IS HAPPY NOT HAVING US AROUND FOR THAT WHOLE MONTH.
ANYWAYS, NOT THAT WE WEREN'T BUSY, MAYOR.
THE THING I WANTED TO REPORT ON WAS, ON JULY 14TH, THE TOWN GOT HIT REALLY HARD WITH THAT STORM.
THE TORNADO THAT EVERYBODY DENIES THAT PEOPLE OVER AT THE PARK SWEAR THEY SAW IT TOUCHDOWN AT CROSSROADS.
WE HAD A LOT OF DAMAGE TO OUR ROOF, AND THE REASON I'M BRINGING THIS UP AT A COUNCIL MEETING IS NOT TO GET SYMPATHY,
[00:15:05]
BUT LOOKING AT WAYS THAT, THIS IS THE FIRST TIME THAT'S HAPPENED IN 30 YEARS.BUT TILE FROM MY ROOF FLEW TO THE BACK OF MY HOUSE, AND THERE WERE PIECES OF TILE EVERYWHERE.
I'M NOT SO SURE TO KNOW THAT THEY DIDN'T END UP IN MY NEIGHBOR'S YARDS, AND I'M GRATEFUL THAT IT DIDN'T HURT ANYBODY BECAUSE THAT WOULD BE THE WORST.
IT DID SMASH ONE OF MY SOLAR PANELS.
I DON'T CARE. ALAS, DIDN'T HURT ANYBODY.
DIDN'T HIT MY CARS CAUSE THEY WERE PARKED IN THE FRONT, BUT WHAT I WANT TO TALK ABOUT IS, AND I KNOW JASON'S NOT HERE, BUT WE NEED TO REALLY THINK ABOUT THE WAY THAT THESE TILES ARE PUT ON THE ROOFS.
SO MANY OF MY TILES WERE NOT EVEN NAILED DOWN.
THEY NAILED DOWN ONE AND EVERY NINE OR SOMETHING. IT'S CRAZY.
I HAD TILES THAT WERE STANDING STRAIGHT UP ON END.
I'VE NEVER SEEN ANYTHING LIKE THAT.
WHERE I CAME FROM, AND I'M NOT GOING TO NAME THE STATE, NOBODY LIKES IT, WE HAD TILES, EVERY SINGLE ONE OF THEM WAS HURRICANE STRAPPED DOWN.
WE HAD SOME VERY WINDY, CLOSE TO 100 MILE AN HOUR WINDS OUT THERE, SO I GET THAT, AND WE ALSO HAD EARTHQUAKE.
THAT'S WHY THEY WERE LIKE THAT, BUT I'M ONLY HERE FOR TWO MORE YEARS, BUT AT ORDINANCE, I'M GOING TO WORK ON THAT LITTLE SUCKER.
LET'S MAKE SURE THAT WHEN WE'RE INSPECTING HOMES THAT THINGS LOOK SECURE.
I BOUGHT MY HOME WHEN THERE WAS A BIG RUSH IN DEVELOPMENT AND EQUATED DOWN FOR QUITE A BIT, AND THERE'S BEEN ANOTHER SIGNIFICANT RUSH IN DEVELOPMENT, AND I'M JUST HOPING THAT WE'RE PAYING ATTENTION TO THOSE ROOFS.
>> I'VE NEVER SEEN ANYTHING LIKE THAT.
I KNOW OUR PARKS WERE HIT HARD AND OUR MEDIANS WERE HIT HARD, AND WE ALL SAW TREES DOWN EVERYWHERE, AND I WANT TO THANK BOTH PARKS AND REC AND PUBLIC SERVICES FOR GETTING THE TOWN CLEANED UP AS FAST AS THEY DID AND KEEPING PEOPLE SAFE.
I BELIEVE THAT THERE WAS NO INJURIES.
ALMOST HAD ONE BECAUSE I WENT OUTSIDE LIKE AN IDIOT TO SAY, WHAT CRASHED IN MY BACKYARD, AND I COULD BARELY STAND UP.
WE MUST HAVE GOT HIT BY SOME GOOD WINDS THERE AND I'M NOT A LITTLE GIRL.
ANYWAY, SO THE REASON IS, I AM JUST SO GRATEFUL, THERE'S SO MANY SMALL CHILDREN AND STUFF ON MY STREET THAT NOBODY WAS HURT.
I DON'T KNOW WHAT THE PROCESS IS, BUT YOU KNOW I'M GOING TO LOOK INTO IT.
I WANT OUR TILE ROOFS, IT GOT THEM ALL OVER MARANA TO BE SAFE.
THAT'S ALL I WAS GOING TO SAY ABOUT THAT.
>> THANK YOU. COUNCILMEMBER OFFICER.
>> OKAY. I GOT ABOUT HALF AN HOUR.
I WANT TO TALK ABOUT THE LAST WEEK AND SOME OF THE THINGS HAPPENING IN OUR COMMUNITY.
YOU REALIZE HOW IMPORTANT MILITARY OR POLICING IS IN THE TOWN OF MARANA.
I WAS AT THE VFW WEDNESDAY NIGHT WE HAD PEOPLE THERE FROM CONTINENTAL RANCH, CONTINENTAL RESERVE, SAINT LUCAS, NORTH MARANA, ALL KINDS OF PLACES AND PEOPLE ARE PRETTY HAPPY WITH OUR COMMUNITY, SO I WAS PRETTY HAPPY ABOUT THAT.
ON THURSDAY WENT TO THE CHAMBER ANNUAL LUNCHEON AND JEFF PRITCHETT WAS THE SPEAKER.
HE WAS PHENOMENAL AND REALLY DID A GOOD JOB, JUST REALLY PROUD OF HIM, AND I DON'T KNOW IF IT WAS BECAUSE OF JEFF OR BECAUSE THE CHAMBERS DOING SUCH A GOOD JOB, BUT THEY HAD 180 PEOPLE AT THE LUNCH AND THEY CAN ONLY HANDLE LIKE 200 IN THAT MAIN ROOM THERE WITH TABLES, SO THREW A HUGE CROWD.
[00:20:03]
ON FRIDAY, I WENT TO THE CHANGE OF COMMAND AT WATTS, WESTERN AREA ARMY TRAINING SITE IN PENAL AIR PARK, WHICH I HOPE WILL BE PART OF THE MARANA SOMEDAY.BUT I'M SITTING IN THE FRONT ROW AND COLONEL JEREMY PFEIFFER, WHO A LOT OF US KNOW, HE WAS THE SPEAKER AT STATE OF THE TOWN LAST YEAR OR THE YEAR BEFORE.
THE NEW COMMANDER THERE IS BRETT SNYDER, LIEUTENANT COLONEL SNYDER.
BUT I WAS TALKING TO THIS BLONDHADED LADY WITH A PONYTAIL SITTING NEXT TO ME AT THE EVENT.
I'M TALKING ABOUT COLONEL SNYDER HAD PROMISED TO GIVE ME A HELICOPTER RIDE AND NOW HE'S MOVING ON TO ANOTHER COMMAND AND THE LADY IS SAYING, WELL, MAYBE I COULD HELP YOU OR SOMETHING AND I ASKED HER IF SHE HAD A CARD AND SHE SAID, NO, BUT I'LL GIVE YOU MY ELECTRONIC INFORMATION, SO SHE TRANSFERRED IT TO MY PHONE AND I GET UP AND LEAVE THE EVENT, AND I'M STANDING IN THE HALLWAY AND I ASKED ONE OF THE PEOPLE.
I SAID, WHO IS THAT LADY? MAJOR GENERAL.
KERRIE MULLEN BECK, COMMANDING OFFICER FOR THE ARMY GUARD FOR THE ENTIRE STATE OF ARIZONA AND I'M SITTING THERE ASKING HER FOR HELICOPTER RIDES AND ALL THIS STUFF.
I WENT OVER I SAID, GENERAL COULD I TALK TO YOU? I SAID, I DON'T SEE VERY WELL, AND I DIDN'T REALIZE AND SHE WAS VERY GRACIOUS AND ACTUALLY GAVE ME WHAT SHE CALLED HER COIN, WHICH I SHOWED A FEW PEOPLE JUST A BEAUTIFUL PIECE OF HARDWARE WITH HER NAME AND EVERYTHING ON IT AND I WAS A LITTLE EMBARRASSED, BUT SHE SHOWED ME SOME MERCY.
ON SATURDAY, WE WENT TO THE FUNDRAISER FOR RAISING MONEY FOR MILITARY FLIGHTS BACK TO WASHINGTON, DC FOR WORLD WAR TWO, KOREAN AND SOME VIETNAM VETERANS AND IT WAS A GREAT EVENT.
THEY RAISED $20,000 AND THERE ARE NOT VERY MANY WORLD WAR TWO LEFT AND NOT A LOT OF KOREANS EITHER AND EVEN A LOT OF THE VIETNAM VETS ARE IN THEIR 90S NOW.
IT WAS A GREAT EVENT AND REALLY DID APPRECIATE THAT, IT'S JUST A GREAT FUNCTION.
THERE'S A LOT OF MILITARY STUFF GOING ON IN OUR COMMUNITY, LIKE I SAID, WE HAVE A NEW COMMANDER AND I ALREADY TOLD HIM, WE'RE GOING TO WANT YOU DOWN HERE AT THE TOWN TALKING ABOUT WATTS AND SOME OF THE THINGS WE'RE DOING.
THEN THE OTHER THING AND IT'S TIED TO MILITARY IS PAUL MARSH DIED FRIDAY, HE WAS 93-YEARS-OLD.
THAT MAN IS THE REASON WE HAVE A VETERAN CEMETERY IN MARANA.
NOW, THERE WERE MANY PEOPLE THAT CONTRIBUTED, THE KAY FAMILY, HERB AND JOHN, AND HER NEPHEW JAMES AND THEIR CONTRIBUTION OF LAND FOR THE VETERAN CEMETERY.
BUT PAUL HELPED ORGANIZE A LOT OF THAT.
HE GOT $8 MILLION FROM THE FEDS TO BUILD ON THE PROPERTY, BUILD THE BUILDINGS, AND PUT IN THE SEWER AND WATER AND ALL THAT STUFF.
A CONTRACT WITH THE STATE FOR 250,000 A YEAR, EVEN THOUGH THAT'S A MARANA VETERAN CEMETERY, BECAUSE OF THE GENEROUS OFFER OF THE KAY FAMILY AND BECAUSE OF PAUL MARSH GETTING ALL THAT FUNDING, WE HAVE ONE OF THE NICEST VETERAN CEMETERIES IN THE STATE, AND THERE ARE ONLY THREE IN THE STATE OF ARIZONA BECAUSE THEY HAVE TO BE 75 MILES APART.
PAUL MARSH'S FUNERAL, I THINK I JUST TALKED TO HIS DAUGHTER, BETSY BEFORE I CAME DOWN HERE THIS EVENING.
I THINK IT'S GOING TO BE ON SEPTEMBER 4 AT THE VETERANS CEMETERY.
THIS MAN WAS NOT FROM MARANA, FORMER PIMA COUNTY SUPERVISOR AND KOREAN VETERAN.
BUT HE LEFT HIS MARK ON OUR COMMUNITY, AND PAUL MARSH WAS A GREAT MAN, AND WILL BE SORELY MISSED. MR. ROSEMAN.
[ MANAGER’S REPORT: SUMMARY OF CURRENT EVENTS]
>> MR. MAYOR, VICE MAYOR, AND MEMBERS OF COUNCIL, JUST A COUPLE OF THINGS HERE.
OUR SFRS FOR THE MONTH SO FAR OF AUGUST IS 60,
[00:25:03]
IN AUGUST OF 2023, WE HAD 91, SO WE WILL PROBABLY SURPASS THAT NUMBER AGAIN.THOSE NUMBERS CONTINUE TO LOOK MONTH IN AND MONTH OUT VERY PROMISING FOR US.
IF YOU HADN'T NOTICED OVER AT THE AQUATIC CENTER, THEY GET A LOT OF NEW STUFF GOING UP.
THEY'VE GOT ALL THE SOLAR PANELS AND ALL OF THE SHADE STRUCTURES FOR THE COMMUNITY POOL AND THE COMPETITION POOL AND THAT THING CAN'T OPEN QUICK ENOUGH BECAUSE WE JUST ENDED UP WITH A LITTLE OVER 10,000 GUEST AT THE OURA MAHORN POOL FOR THE SUMMER, SO WE CAN'T GET THAT COMMUNITY POOL OPEN QUICK ENOUGH.
I DID MENTION TO COUNCIL VIA EMAIL COMMUNICATION THE ISSUES THAT WE HAD WITH THE SPLASH PAD AT HERITAGE PARK, AND WE DID HAVE TO CLOSE THAT A LITTLE BIT EARLY THIS YEAR.
VERY DISAPPOINTING, I KNOW FOR A LOT OF OUR RESIDENTS, BUT DUE TO SAFETY CONCERNS AND OTHER ISSUES, WE DID HAVE TO CLOSE THAT AND A LOT OF VERY SAD PEOPLE IN THE PARKS AND REC DEPARTMENT, BECAUSE WE CERTAINLY DIDN'T WANT TO DO THAT, BUT THEY WORKED REALLY HARD TO KEEP IT OPEN UNTIL SCHOOL STARTED BACK UP AGAIN.
THEN LAST THING, I JUST WANT TO REMIND EVERYBODY.
I KNOW MANY OF YOU ARE GOING TO BE THERE ON THE COUNCIL FOR CONGRESSMAN CISCOMANI'S VISIT TOMORROW.
HE'S GOING TO BE VISITING ONE OF OUR WATER TREATMENT PLANTS.
HE HAS BEEN VERY GOOD TO THE TOWN OF MARANA IN SECURING ADDITIONAL FUNDING FOR SOME OF OUR WATER PROJECTS $2.25 MILLION, I BELIEVE IT IS FOR THE NRDS PROJECT AND ANOTHER 1.5 MILLION FOR OUR PPOS TREATMENT.
IT'LL BE NICE TO HAVE HIM HERE AND GIVE HIM A LITTLE TOUR OF ONE OF OUR FACILITIES AND THAT CONCLUDES MY REPORT, MR. MAYOR.
[ CONSENT AGENDA The Consent Agenda contains items requiring action by the Council which are generally routine items not requiring Council discussion. A single motion and affirmative vote will approve all items on the Consent Agenda, including any resolutions or ordinances. Prior to a motion to approve the Consent Agenda, any Council member may remove any item from the Consent Agenda and that item will be discussed and voted upon separately.]
CONSENT AGENDA, COUNCIL PLESHA?>> OPPOSE? CARRY UNANIMOUSLY. ITEM A1.
[ Resolution No. 2024-081: Relating to Community Facility Districts; Consideration and possible adoption of a resolution approving and authorizing the execution and delivery of a district development, financing participation and intergovernmental agreement (Mandarina Community Facilities District) (Yiannis Kalaitzidis)]
>> ITEM A 1. RESOLUTION NUMBER 2024-081, RELATING TO COMMUNITY FACILITIES DISTRICTS.
CONSIDERATION AND POSSIBLE ADOPTION OF A RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF A DISTRICT DEVELOPMENT, FINANCING PARTICIPATION, AND INTERGOVERNMENTAL AGREEMENT, MANDARINA COMMUNITY FACILITIES DISTRICT.
>> THANK YOU, MR. MAYOR, VICE MAYOR, COUNCIL MEMBERS.
BEFORE I START WITH THIS ITEM, I WOULD LIKE TO POINT OUT THAT STIFLE, OUR FINANCIAL ADVISOR HAS PREPARED THIS PRESENTATION FOR US FROM A DRAFT APPLICATION OBTAINED BY MANDARINA HOLDINGS.
I WOULD LIKE TO SAY THANKS TO THEM, EVEN THOUGH THEY WILL NOT BE HERE PRESENTING IT, I WILL BE PRESENTING IT.
ALSO, I WOULD LIKE TO POINT OUT THAT WE HAVE WITH US TODAY, MR. PAUL GALLS OF GREENBERG TORI, WHO IS ADVISING US AS LEGAL COUNSEL ON THIS ITEM, AND ALSO WE HAVE MR. CARL HUISH OF MANDARINA HOLDINGS AND BELLA FLOOR, WHO CAN ALSO ADDRESS ANY QUESTIONS THAT YOU MIGHT HAVE TONIGHT.
WITH THAT, I WILL GO AHEAD AND I WILL KICK OFF THE PRESENTATION.
I WOULD LIKE TO POINT OUT A COUPLE OF THINGS.
ONE IS, WE HAVE BEEN WORKING WITH MANDARINA HOLDINGS FOR A WHILE NOW, AND WE HAVE RECEIVED AN APPLICATION FOR THE FORMATION OF THE MANDARINA COMMUNITY FACILITIES DISTRICT.
WE ARE HERE TONIGHT TO ASK OF SOME THINGS AND ALSO TO POINT OUT WHAT WE'RE NOT ASKING OF COUNCIL TONIGHT.
WHAT WE ARE REALLY ASKING COUNCIL TONIGHT IS TO CHECK THE FIRST BOX.
THAT FIRST BOX BEING A CFD AGREEMENT THAT WE NORMALLY ENTER WITH ALL CFDS INTO.
BUT THIS TIME WE'RE PRESENTING IT IN FRONT OF COUNCIL FIRST BEFORE COMING TO YOU TO ASK FOR A FORMATION OF A DISTRICT, SIMPLY SO WE CAN POINT OUT TO YOU WHAT A LOT OF THE AGREEMENT POINTS ARE, AND THAT GIVES US AN OPPORTUNITY TO GET FEEDBACK FROM COUNCIL IN CASE THERE IS ANY BEFORE WE ACTUALLY EXECUTE THE AGREEMENT AND GO INTO THE FORMATION STAGE OF THE CFD.
THAT IS SOMETHING WE'RE NOT ASKING TONIGHT, WE'RE NOT ASKING FOR THE FORMATION OF A CFD.
THAT WILL HAPPEN ONCE WE HAVE RECEIVED A FINAL APPLICATION FROM MANDARINA HOLDINGS AT THAT TIME, IN A FUTURE MEETING, PROBABLY SOMETIME IN OCTOBER, OR SOON AFTER, WE'LL BE COMING BACK TO YOU FOR YOUR CONSIDERATION OF THAT.
WHAT WE ARE ASKING YOU TO CONSIDER TONIGHT IS REALLY THIS DRAFT CFD AGREEMENT, WHICH WE'RE ONLY ASKING YOU THROUGH THE RESOLUTION YOU HAVE IN FRONT OF YOU TONIGHT TO AUTHORIZE EXECUTION OF THIS AGREEMENT AT A FUTURE DATE.
IF THAT ALL MADE PERFECT SENSE,
[00:30:04]
I'M SURE, I DIDN'T CONFUSE YOU AT ALL.I WILL CONTINUE WITH THE REST OF THE PRESENTATION.
THE AGREEMENT ITSELF REALLY IS A ROAD MAP OF HOW THE DISTRICT, IF FORMED IN THE FUTURE, AND ALSO TO MAKE CLEAR.
>> BEFORE YOU START YOUR PRESENTATION, CAN YOU LET US KNOW WHY ALL OF A SUDDEN, THEY'RE DECIDED TO DO A CFD? THIS IS THE FIRST THAT I'VE HEARD THAT MANDARINA WAS GOING TO POSSIBLY DO A CFD.
IS THAT NOT THE CASE? OR ARE HAVE THEY ALWAYS BEEN GOING TO DO A CFD?
MY UNDERSTANDING IS THAT THE DEVELOPER HAD ALWAYS WANTED TO DO A CFD FOR MANDARINA.
>> MY NEXT QUESTION AND I ASKED THIS NOT TO JUMP AHEAD IN YOUR PRESENTATION, BUT IT'S RIGHT HERE IN FRONT OF ME.
WHY ARE WE IMMEDIATELY GOING TO THE 380 INSTEAD OF THE 250 PLUS MAINTENANCE 280?
>> THE AMOUNT THAT WE HAVE HERE IS A TARGET RATE IS SOMETHING THAT WAS CALCULATED BASED ON THE LEVEL OF INFRASTRUCTURE AND THE ANTICIPATED AMOUNT OF DEBT THAT IS EXPECTED TO BE REQUESTED UPON FORMATIONS ON CFD TO BE ISSUED..
>> I THOUGHT THAT THE TOWN HAD ALREADY SET SOME GUIDELINES AS TO WHAT OUR EXPECTATIONS OF WHAT CFDS WOULD COME IN AT.
THAT AT A NORMAL AND AN EXTRAORDINARY?
>> EXTRAORDINARY WE DESCRIBED AS FULL BUILD INTERCHANGES, NOT BAND AID BUT FULL BUILD.
I DON'T FEEL LIKE THIS ONE IS IN THAT FINANCIAL AREA, AS IN FOR INSTANCE, AN EXAMPLE, VILLAGES OF TORTDA.
>> I'M GOING TO JUMP AHEAD A LITTLE BIT OF THE SLIDE.
THIS IS AN ITEM THAT IS PRELIMINARY, BUT THIS IS SOMETHING THAT HAS GONE INTO THE PROJECTS.
AS YOU POINTED OUT, WE WOULD CONSIDER HIGHER, POTENTIALLY.
>> RATES? IF THERE WERE REGIONAL PROJECT, SOMETHING THAT AFFECTS MORE THAN JUST THE PARTICULAR AREA.
YOU WILL NOTICE HERE THAT PART OF THE PROJECTS THAT HAVE ALREADY BEEN COMPLETED INCLUDE SOME REGIONAL DRAINAGE.
>> ON THAT NOTE, WE GAVE THEM A PROTECTED FACILITY ON THAT DRAINAGE.
DOES THAT MEAN THEY'RE GOING TO WAIVE THAT? THEY DOUBLE DIPPING? FOR SURE, THAT'S A DOUBLE DIP.
>> WE ARE MAKING SURE AND MISS FARRELL IS NOT HERE TONIGHT, BUT WE ARE MAKING SURE THROUGH THIS AGREEMENT, AND IT'S STATED WITHIN THE AGREEMENT THAT THERE WILL BE NO DOUBLE DIPPING.
WHERE THERE IS A SPECIFIC BENEFIT TO THE DISTRICT ITSELF, THAT IS WHERE THE CFD WOULD BE ALLOWED TO REIMBURSE.
HOWEVER, IF A BENEFIT FROM ANY OF THESE REGIONAL PROJECTS IS TO BE PART OF, LET'S SAY, WHAT STONEGATE IS HAVING AS DRAINAGE, AND THEY'RE BENEFITING ON THE DEVELOPMENT RIGHT ADJACENT TO THEM, THAT'S WHERE THE PROTECTED AGREEMENT WOULD BE ENTERED INTO.
IT COULD BE A COMBINATION TO REIMBURSE THE AMOUNT OF THE PROJECT, AND THAT'S WHAT'S SEEN AS THE SOURCE HERE.
YOU SEE THAT AS THE SOURCE IN THE LAST COLUMN, THERE IS GO/DA.
THAT'S WHERE YOU MIGHT HAVE FOR SOME OF THESE PROBS.
>> WELL, I DON'T REMEMBER IN PREVIOUS DISCUSSIONS OF CFD OF THE COUNCIL ASSURING DEVELOPERS THAT WE WERE GOING TO ALLOW THEM TO SET THEIR RATE SO THAT THEY GOT ALL THEIR MONEY BACK.
THAT'S THAT'S NOT OUR PROBLEM.
I'M ASSUMING THEY'RE PRETTY PROUD OF THAT THEY'VE SOLD ALL OF THEIR LOTS IN THIS.
I'M PRETTY SURE THEY PRICED THOSE BASED ON THE INVESTMENT THEY HAD IN THAT PROPERTY.
>> I BELIEVE YOU ARE CORRECT, THAT THERE IS NEVER A GUARANTEE THAT THE FULL INVESTMENT WILL BE RECOUPED, ESPECIALLY 750.
>> BESIDES $3,000,000, THAT'S WHAT THEY'RE SAYING.
THAT'S WHAT THEY SET THE 380 AT.
>> MR. MAYOR, VICE MAYOR, MEMBERS OF COUNCIL, PROBABLY TIME FOR ME TO JUMP IN.
TWO THINGS, ONE HAVING TO DO WITH THE COMMUNITY FACILITIES DISTRICT AS FAR AS ITS ESTABLISHMENT.
THE CFD HAS, IN FACT, BEEN CONTEMPLATED FOR SOME PERIOD OF TIME, EVEN GOING ALL THE WAY BACK TO, AS I UNDERSTAND, PART OF THE SETTLEMENT AGREEMENT BETWEEN US AND MARK PAKICH, THE MSP PROPERTIES.
I WAS CONTEMPLATED WITHIN THOSE SETTLEMENT AGREEMENT, AS I UNDERSTAND IT.
[00:35:01]
THE CFD THAT IS THE CFDDA THAT IS BEFORE YOU FOR FEEDBACK AND CONSIDERATION, DOES, WE BELIEVE, FROM A STAFF PERSPECTIVE, CONFORM TO THE COUNCIL'S POLICY DIRECTION WITH RESPECT TO EXTRAORDINARY INFRASTRUCTURE.IN CASES WHERE THERE'S EXTRA INFRASTRUCTURE THAT'S REQUIRED BEYOND THE NORMAL NEEDS OF THE DISTRICT, WE MAY CONSIDER A RATE HIGHER THAN THE $2.50 PER $100 OF ASSESSED VALUATION.
BASED ON THE CRITERIA AS DEFINED WITHIN THE COUNCIL APPROVED POLICY, AS WELL AS THE REGIONAL BENEFITS OF THIS INFRASTRUCTURE.
STAFF BELIEVES THAT IT IS CONSISTENT WITH POLICY FOR THAT TO BE CONSIDERED FOR A DIFFERENTIAL TAX RATE TO BE CONSIDERED.
AGAIN, AS MR. ELICITS MENTIONED THIS EVENING, PART OF TONIGHT IS GETTING FEEDBACK, RELATED TO SIGNIFICANT PORTIONS OF THE DEAL POINTS.
IF IT'S HIGHER THAN 280,250 AND 30 CENTS FOR US, I WILL BE A DOVO.
THIS DIRECTLY IMPACTS THE COST OF HOUSING AND A HOUSE PAYMENT FOR THE PEOPLE THAT LIVE IN OUR COMMUNITY.
WE'VE HAD PROBLEMS. WE HAD PROBLEMS IN SARO BLOOM IN DIFFERENT PLACES.
PEOPLE WERE REALLY UNHAPPY WITH WHAT IT ADDS TO THE PRICE.
I DON'T SEE THIS AS REALLY, THEY'RE NOT BUILDING AN INTERCHANGE.
IF THEY WANT TO GO 380, I'LL TELL YOU RIGHT NOW, I WILL BE NO.
THERE'S SIX OTHER PEOPLE ON THIS BOARD, BUT I WILL NOT GO THERE.
>> MAYOR. I JUST HAVE A CONCERN, WHEN YOU FORM A CFD, PEOPLE BUYING HOMES IN THAT SUBDIVISION KNOW THAT THEY'RE GOING TO HAVE AN EXTRA TAX TO PAY, AND THEY LOOK AROUND AND LOOK FOR, SUBDIVISIONS THAT DON'T HAVE THAT CFD, AND THEY'RE NOT RESPONSIBLE FOR IT.
IT'S A TWO EDGED SWORD, I GUESS, THAT DEVELOPER NEEDS IT, AND HOMEOWNERS DON'T WANT TO, FACE THAT ANYWAY,.
>> THANK YOU. THANK YOU FOR YOUR FEEDBACK.
SOME ADDITIONAL POINTS ON WHAT IS INCLUDED IN THE AGREEMENT TONIGHT FOR YOUR FEEDBACK IS BOND AUTHORIZATION.
VERY OFTEN, WE ISSUE THROUGHOUT ALL THE CFTS THAT WE'VE DONE AN AMOUNT THAT IS ABOVE WHAT WE END UP REIMBURSING.
WE ANTICIPATE THIS WILL BE THE CASE FOR THIS ONE, TOO, SO BOND AUTHORIZATION FOR THIS IS SET AT $50,000,000.
WE DO NOT ANTICIPATE FOR THE DEVELOPER TO ASK FOR THAT FULL AMOUNT.
IT WILL LIKELY BE HALF OF THAT OR EVEN LESS.
AS WE MOVE FORWARD WITH THIS, WE ALSO HAVE PUT SOME FINANCIAL OBLIGATIONS THAT THE DEVELOPER WILL HAVE, SO IT CAN PROTECT THE DISTRICT ITSELF.
THE FIRST ONE, THE MAIN ONE IS IN ADDITION TO INDEMNIFICATION PROVISIONS WITHIN THIS AGREEMENT.
WE'VE ALSO ASKED FOR A $350,000 LETTER OF CREDIT.
SPECIFIC TO THE CREATION AND DUE UPON THE FORMATION OF THE DISTRICT, THE AMOUNT WOULD BE AVAILABLE TO TAKE CARE OF ANY POTENTIAL FUTURE RISKS THAT THE DISTRICT MIGHT FACE BEFORE IT COLLECTS ADEQUATE FUNDING THROUGH THE $0.30 OPERATIONS AND MAINTENANCE LEVY.
THERE ARE PROVISIONS WITHIN THE AGREEMENT.
AS THE DISTRICT OVER THE COURSE OF MANY YEARS ACCUMULATES SIMILAR FUNDING AND HAS IT AVAILABLE TO BE ABLE TO TAKE CARE OF SAID OPERATING AND OTHER EXPENSES.
THERE'S PROVISIONS FOR US TO RELEASE SOME OF THAT LETTER OF CREDIT OR EVENTUALLY POTENTIALLY ALL OF IT.
THAT IS VERY SIMILAR TO WHAT WE'VE DONE WITH OUR OTHER CFDS.
THE AMOUNT HERE IS MORE AS COSTS HAVE INCREASED SINCE THE LAST TIME WE CREATED A CFD.
VERY CONSISTENT WITH WHAT WE'VE DONE ELSEWHERE WITH CFDS.
WE'RE ASKING THE DEVELOPER TO CONTRIBUTE $50,000 DEPOSIT, WHICH WE WOULD USE IN THE FIRST FEW YEARS OF CFDS AS WE SLOWLY BUILD UP THAT 30 CENT TAX LEVY, AND THAT AMOUNT WOULD BE REPLENISHED AFTER THE FIRST 25,000 IS SPENT AND SO OFTEN EVERY YEAR.
THE AMOUNT OF OPERATIONS AND MAINTENANCE COSTS IN ANY GIVEN YEAR IS LIMITED TO 50,000 THAT THE DEVELOPER WOULD CONTRIBUTE FOR ANY 12 MONTH PERIOD.
BUT WHAT WE HAVE DONE WITH OTHER CFDS,
[00:40:01]
WE BELIEVE THIS IS CONSISTENT, AND THIS IS ADEQUATE TO COVER THOSE EXPENSES ALONG WITH THE LETTER OF CREDIT IN CASE THERE IS SOMETHING MORE SERIOUS.THE REST OF IT IS VERY MUCH INFORMATIONAL ON WHAT HAS HAPPENED.
SO PLEASE FEEL FREE TO JUMP IN WITH ANY COMMENTS OR ADDITIONAL FEEDBACK.
MANDARINA IS JUST NORTH OF TANGERINE ROAD ON THE EAST SIDE OF I10, AND IT IS COMPRISED OF ABOUT 342 ACRES.
LOOKING AT THE PROGRESS SO FAR OF WHAT HAS HAPPENED IS THE PROPERTY IS SPLIT REALLY INTO TWO PIECES WITH ADONIS ROAD GOING THROUGH THE I'LL CALL IT THE MIDDLE OF IT.
BUT ON THE EAST SIDE, THERE'S A PIECE OF LAND THAT'S PLATTED FOR JUST OVER 1,000 SFRS.
AS YOU CAN TELL FROM THE PRESENTATION, JUST OVER 600 OF THOSE PARCELS HAVE BEEN SOLD, AND THE HOMEBUILDERS ARE ACTUALLY OUT THERE MOVING DIRT AND GETTING THE WORK STARTED.
THEN IN ADDITION TO THOSE 1,000 UNITS, WHICH THE REMAINDER IS ANTICIPATED TO BE SOLD NEXT CALENDAR YEAR.
THERE'S ALSO ANOTHER THOUSAND UNITS OF MIXED USE THAT IS ANTICIPATED ON THE WEST SIDE OF ADON IS CLOSER TO I 10 AND THE RAILROAD.
THAT IS SUPPOSED TO BE MY UNDERSTANDING IS A LOT OF APARTMENTS THAT WILL GO UP THERE.
MOVING AGAIN TO THE SLIDE THAT WE LOOKED AT EARLIER A MOMENT AGO.
THE MANDARINA HOLDINGS, LLC HAS INVESTED APPROXIMATELY $46,000,000 TO THIS PROJECT SO FAR.
AS WAS POINTED OUT EARLIER, NOT ALL OF THESE ARE ELIGIBLE FOR REIMBURSEMENT.
SOME OF THOSE WILL BE ASKED UPON FORMATION IF SUCH A THING HAPPENS OF A DISTRICT, I BELIEVE THAT THE DEVELOPER WILL COME BACK TO SUCH A FUTURE DISTRICT TO ASK TO HAVE DEBT ISSUED IN THE FORM OF GO BONDS.
AGAIN, THAT WILL ONLY BE FOR ANY EXPENSES THAT BENEFIT THE DISTRICT DIRECTLY.
FINALLY, MOVING TO IDEA OF WHAT WOULD IT COST, AND YOUR COMMENTS HAVE BEEN NOTED, MAYOR, VICE MAYOR, COUNCILMEMBER KAI.
THIS IS SOMETHING THAT WE HAVE FROM THE APPLICANT.
IT'S AN ESTIMATE BASED ON THE $3.80, NOT ON THE 250, BUT FOR A $370,000 SALE OF A HOME, THE AMOUNT TO BE PAID IN TAXES ANNUALLY WOULD BE ABOUT $787 OR ABOUT $66 A MONTH.
WE CAN DEFINITELY REWORK THOSE NUMBERS AND PUT SOMETHING IN FRONT OF YOU IN A FUTURE MEETING THAT SHOWS WHAT THE 250 RATE WOULD LOOK LIKE.
WE HAVE THAT INFORMATION AVAILABLE AS WE COME BACK TO YOU.
I WOULD BE HAPPY TO TAKE ANY QUESTIONS, OR I'M SURE OTHERS MAY ALSO JUMP UP DEPENDING ON THE QUESTIONS AND THE COMMENTS.
>> MR. MAYOR, I HAVE A QUESTION.
>> YANNI, I HAVE TWO GENERAL QUESTIONS BECAUSE I'M NOT AS FAMILIAR WITH CFDS AS EVERYBODY ELSE HERE.
THE TOWN ISSUES THE BONDS, WE ALREADY ARE BORROWING A LOT OF MONEY.
DOES THAT, LIKE, INCREASE OR DECREASE OUR LIKELIHOOD TO BE ABLE TO BORROW MORE MONEY IF WE NEED TO?
>> MR. MAYOR, COUNCILMEMBER CRAIG, THAT IS A GREAT QUESTION.
EVERY CFDS, SIMILAR TO THE ONES THAT EXIST, OPERATE AS A SEPARATE LEGAL ENTITY.
WE DO NOT HAVE AN OBLIGATION OR A TRUE EXPOSURE TO PAY OFF ANY DEBT THAT IS ISSUED BY A DISTRICT.
IN THAT RESPECT, ANY IMPACT ON FROM THAT DEBT WILL BE MINIMAL TO NONE AS IT RELATES TO DEBT ISSUED BY THE TOWN ITSELF AS A LEGAL ENTITY.
>> MY SECOND QUESTION IS, WHAT EXPOSURE DOES THE TOWN HAVE TO DEFAULT ON THE CFDS? BECAUSE I REMEMBER HEARING ABOUT SOMETHING RIGHT AFTER THE RECESSION, THE GREAT RECESSION, WHERE THERE WAS A PERIOD WHERE NOBODY WAS BUYING THE HOUSES, AND IT LOOKED LIKE WE WEREN'T GOING TO GET OUR MONEY BACK.
>> IN THAT PARTICULAR CASE, THERE ARE SOME OPTIONS IN EXISTING CFDS, WE'VE HAD LETTERS OF CREDIT THAT PROTECT US WHILE WE GO THROUGH A PROCESS OF INCREASING THE EXISTING TAX RATE,
[00:45:03]
THE EXISTING TAX RATE THAT WE HAVE IS SET AT A TARGET OF $2.50.HOWEVER, IN ORDER TO AVOID A DEFAULT, WE HAVE THE OPTION, AND SOME MIGHT SAY THE OBLIGATION TO SET THE TAX RATE IN THE NEXT YEAR TO BE ABLE TO COLLECT ENOUGH MONEY TO MAKE THE NEXT DEBT SERVICE PAYMENT.
HOWEVER, BEFORE WE GET TO THAT, WHAT WE HAVE DONE WITH SOME OF OUR EXISTING CFDS IS WE'VE ENTERED INTO AGREEMENTS, STAND BY CONTRIBUTION AGREEMENTS, WHERE IF THERE IS SUCH A SHORTFALL BEFORE WE NEED TO DO ANYTHING OR INCREASE THE TAX RATE FOR THOSE RESIDENTS, WE ASK THE DEVELOPER TO MAKE UP ANY SHORTFALL AND ANY DIFFERENCE.
SO FAR THAT HAS HAPPENED IN THE PAST, THAT THEY DID LIVE UP TO THAT AGREEMENT WHEN THERE WAS A SHORTFALL, AND TO THIS DAY, EVEN WITH SOME OF THE DEBT THAT WE HAVE ISSUED SPECIFICALLY WITH GLADDEN 2, WHEN THERE IS A SHORTFALL AS WE PLANNED IT IN THE DEBT SERVICE, THEY HAVE BEEN STEADILY CONTRIBUTING TO COVER THAT.
>> BUT IN A VERY WORST CASE SCENARIO, AND I'M NOT SAYING THIS IS GOING TO HAPPEN, THE DEVELOPER COULD JUST WALK AWAY, AND ALL WE WOULD HAVE WOULD BE WHAT?
>> IN THE VERY WORST CASE SCENARIO, IF THE DEVELOPER WALKED AWAY AND WE HAD GO BONDS AND THE EXISTING RATE WASN'T ENOUGH TO MAKE UP FOR THE DEBT SERVICE PAYMENT, THEN WORST CASE SCENARIO WOULD BE TO RAISE THE LEVY IN THE NEXT YEAR TO COVER ANY SUCH. FOR THE SHORTFALL.
>> FOR THE EXISTING PEOPLE THAT ALREADY BOUGHT?
>> I HAVE SOME MORE COMMENTS ON THIS.
YOU KNOW, ISSUING A CFD IS NOT A GUARANTEE.
I HAVE FRIENDS IN SARITA, THE MAYOR OF SARITA, THE MAYOR OF OLE VALLEY, AND THOSE PLACES DON'T EVEN DO CFDS.
I HAVE TO ANSWER TO THE VOTERS AND TAXPAYERS IN THIS COMMUNITY.
I THOUGHT WE HAD MADE IT CLEAR THAT 250 WAS THE RATE WE WANTED TO DO.
IF YOU BORROW MORE MONEY THAN THAT 250 RATE, WE'LL PAY, SHAME ON YOU, NOT SHAME ON US.
I'M A LITTLE DISAPPOINTED THAT THIS WAS BROUGHT BEFORE US AT A 380 RATE.
LIKE I SAID, I'M ONLY ONE VOTE, BUT I WILL NOT SUPPORT IT IF IT'S OVER 280,250 FOR DEBT SERVICE AND $0.30 FOR THE TOWN.
>> MR. MAYOR, VICE MAYOR, MEMBERS OF COUNCIL, IF I MAY.
I THINK IT MAY BE WORTHY OF AN INITIAL POINT OF CLARIFICATION WITH RESPECT TO THE ADOPTED POLICY OF COUNCIL.
IN THE CASE OF WHERE EXTRAORDINARY PUBLIC INFRASTRUCTURE IS DEEMED TO BE INCLUDED WITHIN THE DISTRICT, THE DIRECTION THAT WE RECEIVED FROM COUNCIL AT THE TIME THAT THIS POLICY WAS APPROVED WAS THAT IN THE CASE OF EXTRAORDINARY INFRASTRUCTURE, THAT WE WOULD CONSIDER A RATE HIGHER THAN $2.50 PER $100 OF ASSESSED VALUATION.
THE RAIL BOARDS ARE THE LIMIT THAT WE STAFF WAS GIVEN OR THE DIRECTION GIVEN TO STAFF WAS IN THE CASE OF EXTRAORDINARY INFRASTRUCTURE FOR IT NOT TO EXCEED $100 PER MONTH OR AN EFFECTIVE $1,200 PER YEAR.
WHAT WE BROUGHT BEFORE YOU, WE BELIEVE TO BE CONSISTENT AGAIN WITH THE COUNCIL APPROVED POLICY WITH RESPECT TO A CFD THAT ANTICIPATES INCLUDING EXTRAORDINARY INFRASTRUCTURE.
>> I'M GOING TO MAKE ANOTHER COMMENT BEFORE THE VICE MAYOR GETS IN HERE.
YOU'RE MAKING THAT COMPARISON ON A $370,000 HOUSE, WHICH WILL BE THE CHEAPEST HOUSE IN THAT NEIGHBORHOOD IF YOU CAN GET ONE FOR 370.
MOST OF THE HOUSES ARE 450, 470.
YOU'RE MAKING A COMPARISON ON A THREE-BEDROOM, STRIPPED DOWN, NO UPGRADE HOUSE IS 66 BUCKS.
I THINK THAT'S DISINGENUOUS, TO BE HONEST WITH YOU.
THOSE HOUSES ARE GOING TO AVERAGE 450 OR MORE, AND IT'LL BE 100 RIGHT NOW.
WE WANT PEOPLE TO COME HERE AND BUILD, BUT THERE'S A LOT OF COMMUNITIES THAT DON'T ALLOW CFDS AT ALL.
YOU JUST GET YOUR FINANCING WHERE YOU CAN GET IT.
WE HAVE TRIED TO BE IN THE FOREFRONT OF THE CFD PROPOSALS.
LIKE I SAID, I THINK THE HOUSES AREN'T GOING TO BE 370.
[00:50:02]
WHAT IF IT'S 110 OR 125? WHAT DO WE DO THEN? LIKE I SAID, IT'S NOT THE BANK OF MARANA, AND I HAVE TO ANSWER TO THOSE CITIZENS AS WELL.>> MR. ED HONEA, I APPRECIATE YOUR COMMENTS, AND I THINK THAT THE ONLY WAY TO RESPOND FOR MYSELF IS TO SAY THAT I PERSONALLY BELIEVE THAT THESE ARE NOT EXTRAORDINARY COSTS.
I THINK THERE'S A FEW THINGS THAT WERE A LITTLE BIT MORE EXPENSIVE FOR THIS PROJECT, BUT I DON'T THINK THEY'RE AN EXTRAORDINARY COST.
I PERSONALLY AM GOING TO STICK WITH THE 250 ON THIS PARTICULAR PROJECT.
I THINK THIS COUNCIL EVEN COUNCILMEMBER CRAIG, I THINK THIS COUNCIL VERY WELL UNDERSTANDS CFDS.
I THINK WE'VE SPENT MANY YEARS DOING THESE, AND I THINK WE ALL FIND THEM VERY DISTASTEFUL AND UNDERSTAND THEIR NECESSITY, BUT I'M GOING TO STICK WITH 250.
>> MAYOR HONEA, I CONCUR WITH COUNCILMEMBER CRAIG.
WE'VE BEEN VERY FORTUNATE IN THE CFD THAT WE'VE FORMED SO FAR.
DEVELOPMENT HAS GONE AS PLANNED, AND THEY ALL PAID OFF.
BUT IF WE GET A HICCUP IN SOMETHING LIKE JACKIE SAID IN 2008 OR WHATEVER, WHEN NOTHING SELLS, THE TOWN HAS SOME LIABILITIES, AND THE TOWN SAYS, WELL, WE'RE NOT GOING TO ALLOW THAT MUCH TO BE BORROWED.
BUT STILL, WE HAVE THE LIABILITY, HOW DO WE SELL IT OR WHATEVER TO GET OUR MONEY BACK? IF EVERYTHING WORKS FINE, CFD ARE GREAT. THANK YOU, MAYOR.
>> ANOTHER THING, IN ORDER TO GET DEBT AT A CFD, THEY HAVE TO COME BEFORE THE CFD BOARD, WHICH WOULD BE US.
BUT I JUST DON'T WANT TO GET TO A POINT, THIS IS NOT PHOENIX.
I KNOW THERE'S SOME 450S IN PHOENIX.
BUT THERE'S A LOT HIGHER INCOME RATIO UP THERE FOR PEOPLE AND DIFFERENT THINGS.
LIKE I SAID, I WOULD HAVE APPRECIATED A HEADS UP ON THIS A LOT EARLIER THAN BEING HERE TONIGHT AS WELL.
>> MAYBE IT'S MY IGNORANCE, BUT THERE'S NOTHING IN HERE ABOUT THE TANGERINE INTERCHANGE AT ALL AND THAT MANY HOMES IS DEFINITELY, WE'RE ALREADY AT.
ARE THEY GOING TO BE PARTICIPATING IN THE TANGERINE INTERCHANGE OR HOW IS THAT GOING TO WORK? I HIT ONE.
>> MR. MAYOR, COUNCILMEMBER COMERFORD, MY UNDERSTANDING IS THAT THE CFD ITSELF IS NOT PARTICIPATING, BUT THROUGH IMPACT FEES THAT ARE COLLECTED FOR THAT PARTICULAR IMPACT FEE FOR STREETS.
EACH OF THESE PROPERTIES WILL BE PARTICIPATING IN THAT RESPECT.
>> HOW ARE WE CALCULATING IMPACT FEES FOR A NEEDED ALREADY IN AN INTERCHANGE?
>> MR. MAYOR, VICE MAYOR, COUNCILMEMBER COMERFORD, WITH RESPECT TO THE TANGERINE INTERCHANGE, YOU MAY RECALL WHAT IS CONTEMPLATED WITHIN THE INFRASTRUCTURE IMPACT FEE IS PART OF THE 2022 FEES.
I BELIEVE THE NUMBER SOMEWHERE IN THE NEIGHBORHOOD OF $6 MILLION THAT WAS CALLED INTERIM IMPROVEMENTS THAT WERE SPLIT BETWEEN-
>> THERE ARE INTERIM IMPROVEMENTS UNTIL SUCH TIME AS WE CAN IDENTIFY A PATH FORWARD ON THE FULL RECONSTRUCTION.
THAT WAS SPLIT BETWEEN THE NORTHEAST TRANSPORTATION IMPACT FEE AND THE NORTHWEST IMPACT FEE AND THAT'S HOW THEY'RE BASICALLY CALCULATED.
>> I COULDN'T REMEMBER, AND I HAVE CURRENT CONCERNS ABOUT HOW WE'RE DOING IT TANGERINE.
I DON'T WANT TO WAIT FOUR YEARS.
I DON'T WANT TO WAIT TWO YEARS.
I WANTED TO START YESTERDAY, BUT I DO UNDERSTAND THE CONSTRAINTS.
[00:55:01]
COUNCILMEMBER COMERFORD, THOSE INTERIM IMPROVEMENTS ARE CONTEMPLATED.THEY'RE PART OF A FUNDED PLANNED PROJECT AND ARE ANTICIPATED TO BE WORKING EITHER AT THE SAME TIME AS TANGERINE PHASE 2A OR ADJACENT TO THAT PROJECT AND WE'RE NAVIGATING ALL OF THE CHALLENGES THAT WE HAVE WITH THE RAIL A DOUBLE TRACK THERE AS WELL.
>> I KNOW IT'S NOT GOING TO BE A SIMPLE THING, BUT WITH THE SAFETY ISSUES THAT WE HAVE AT THIS POINT, I'M JUST CONCERNED.
>> PLUS THE MAVERICK HAS CHEAPER FUEL.
>> THAT'S WHY THEY ALL GO THERE. SO DOES COSCO.
>> YOU CAN SPEAK IF YOU WANT TO COME UP.
GIVE YOUR NAME AND ADDRESS FOR THE RECORD, PLEASE.
>> MR. MAYOR, VICE MAYOR, AND MEMBERS OF THE COUNCIL.
MY ADDRESS IS 4122 EAST MCCLELLAN ROAD, HOUSE 15, MESA, ARIZONA 85205.
I'M THE OWNER OF MANDARINA HOLDINGS.
I'M HAPPY TO ANSWER ANY QUESTIONS YOU MIGHT HAVE.
I JUST WANTED TO PROVIDE A QUICK COMMENT IN TERMS OF THE INFRASTRUCTURE FOR MANDARINA HOLDINGS.
ARE YOU LOOKING AT THE SAME SLIDE THAT I'M SEEING THERE ON THE SCREENS? ARE YOU ABLE TO SEE THAT ON YOUR MONITORS AS WELL?
>> ON THE EAST SIDE OF I-10, EVERYTHING IS IN A FLOODPLAIN.
ON THE WEST SIDE OF I-10, WHERE ALL OF MARANA HAS DEVELOPED, THERE'S NO FLOODPLAIN AND SO IT'S VERY LESS EXPENSIVE TO DEVELOP.
THE WATER COMES DOWN OFF THE MOUNTAINS AND PAWNS UP AGAINST THE RAILROAD AND CREATES A FLOODPLAIN THERE SO WE'RE IN FLOODPLAIN X.
THERE ARE TWO AREAS OF EXTREME INFRASTRUCTURE IMPROVEMENTS THAT WE HAD TO DO THAT I'VE NEVER HAD TO EXPERIENCE IN ALL OF MY DEVELOPMENT THAT ARE FAR BEYOND ANYTHING FOR A NORMAL DEVELOPMENT.
THE REGIONAL DETENTION BASIN OF OVER $6 MILLION ONLY WAS NECESSARY BECAUSE WE WERE LIFTING THIS ENTIRE 340 ACRES OUT OF THE FLOODPLAIN.
THE REGIONAL DRAINAGE CHANNELS, PARCEL B DRAINAGE CHANNEL, THERE'S MILES OF DRAINAGE CHANNELS THAT WE BUILT SOLELY TO LIFT THIS OUT OF THE FLOODPLAIN, 3.5 MILLION, 2.2 MILLION, 1.7 MILLION.
THE OFFSITE WATER AND SEWER, WE DRILLED UNDERNEATH THE FREEWAY IN THE RAILROAD THREE TIMES TO BRING WATER AND SEWER, AND OTHER UTILITIES UNDERNEATH THE FREEWAY.
WE HAD TO PULL OUT THE BIG DRILLS.
WE HAD TO FIND SOMEONE THAT WAS ABOUT FOUR FEET 8 " TALL THAT WENT AND DID A HAND DIG.
ONE OF OUR TUNNELS UNDER THE FREEWAY WAS DUG BY HAND, LITERALLY, BY A WONDERFUL MAN WHO DID THAT AND IT TOOK A COUPLE EXTRA MONTHS.
WHEN YOU LOOK AT OFFSITE WATER, OFFSITE SEWER, THERE'S A REASON WHY WE HAVEN'T SEEN DEVELOPMENT ON THE EAST SIDE OF I-10 IN MARANA, AND THAT'S BECAUSE OF THE EXTRAORDINARY COSTS TO DEVELOP IT.
WE HAVE NOW DONE THAT AND SO YOU'LL START TO SEE ADDITIONAL DEVELOPMENT THAT WILL TAKE PLACE IN MARANA ON THE EAST SIDE OF I-10.
BUT MOST OF THESE COSTS THAT HAVE BEEN LISTED HERE AND EXPLAINED HERE ON THIS SLIDE THAT WE'RE LOOKING AT, ARE, IN FACT, EXTRAORDINARY COSTS THAT WOULD NOT BE INCURRED IN A TYPICAL SUBDIVISION DEVELOPMENT.
I'M HAPPY TO TAKE ANY OTHER QUESTIONS THAT YOU MIGHT HAVE, BUT IN ALL MY DEVELOPMENT, I'VE NEVER DONE ANYTHING SO EXTRAORDINARY, ACTUALLY, IN TERMS OF COSTS BECAUSE WE LIFTED 340 ACRES OUT OF A FLOODPLAIN, WHICH IS A VERY DIFFICULT AND EXPENSIVE THING TO DO.
THANK YOU FOR ALLOWING ME TO MAKE THAT POINT.
>> THANK YOU. I DON'T SEE ANYBODY RAISING THEIR HAND FOR THE MOTION HERE SO I DON'T THINK WE'RE GOING TO TAKE ANY ACTION ON THIS ISSUE.
>> WE DON'T NEED TO DO ANYTHING?
>> I WILL CALL MR. GALES UP TO ADVISE US ON THE LEGAL SIDE.
>> MR. MAYOR, MEMBERS OF THE COUNSEL PAUL GALES GREENBERG TRAURIG, WE REPRESENT THE TOWN WITH RESPECT TO THIS FORMATION.
THE SHORT ANSWER IS NO, YOU DON'T NEED TO TAKE ANY ACTION.
THERE ARE OTHER OPTIONS I COULD DESCRIBE IF YOU'D LIKE, BUT IF YOU'D PREFER NOT TO TAKE ANY ACTION, WE CAN GO THAT ROUTE.
>> I THOUGHT THIS WAS JUST A PRESENTATION.
YOU WERE THEN GOING TO BRING THIS BACK TO COUNCIL FOR THE FORMATION OF THE CFD.
>> MR. MAYOR, VICE MAYOR, THERE IS ONE ACTION ITEM.
IT WOULD BE APPROVAL OF THE DRAFT CFD DEVELOPMENT AGREEMENT.
FORMATION OF THE DISTRICT WOULD HAPPEN AT A SUBSEQUENT MEETING AGAIN,
[01:00:02]
ALL AT THE COUNCIL'S DISCRETION.>> I THREW MY AGENDA AWAY. HOLD ON.
>> I KNOW. I'D LIKE TO MAKE A MOTION APPROVING RESOLUTION 2024-081 SETTING THE RATE AT 250+30 MAINTENANCE.
MR. YUTO, PLEASE POLL THE COUNCIL.
>> MR. MARK CAN I ASK FOR CLARIFICATION?
>> THIS IS WHAT WE SAW ON PAGE 1, EXCEPT NUMBER 4 HAS CHANGED.
>> COULD I MAKE ONE MORE QUICK POINT?
>> MR. MAYOR, VICE MAYOR, MEMBERS OF THE COUNCIL.
I JUST WANTED TO MAKE A QUICK FACTUAL POINT JUST SO WE'RE CLEAR.
THE LAST CFD THAT WAS DONE ACCORDING TO MY RECORDS IN MARANA, WAS GLADDEN FARMS 2, 17 YEARS AGO IN 2007.
OBVIOUSLY, BONDS GET REISSUED OVER AND OVER, BUT THAT'S WHEN IT WAS FIRST INITIATED 17 YEARS AGO AT $2.50.
LONG TIME AGO, LOT OF INFLATION SINCE THEN.
IT'S A TOTALLY DIFFERENT WORLD, BUT THAT WAS 17 YEARS AGO WHEN THE LAST CFD WAS ISSUED, AT GLADDEN FARMS 2, AGAIN, ON THE WEST SIDE OF THE FREEWAY.
I JUST WANT TO MAKE SURE WE UNDERSTAND THE FACTS IN TERMS OF WHEN THAT WAS ESTABLISHED, DECEMBER 2007 IS THE DATE THAT WE HAVE HERE. THANK YOU.
>> MAYOR, THAT WAS ALSO RIGHT IN THE MIDDLE OF THE RECESSION, WHEN THEY WERE DOING EVERYTHING THEY COULD TO EVEN HANG ONTO THE PROPERTY. AM I RIGHT?
>> WE WERE SELLING HOMES THEN.
>> I JUST DON'T FEEL GOOD ABOUT THIS THING AT ALL.
IT IS 250, BUT HOUSES COST TWICE AS MUCH NOW, TOO, SO YOU GOT MORE MONEY TO SPREAD THE 250 OVER OR MORE EXPENSIVE HOUSING.
>> THE VOTES ARE FOUR AYES, TWO NAYS.
>> FUTURE AGENDA ITEMS COUNCIL.
>> WE ARE ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.