Item Coversheet
CITY OF PEORIA, ARIZONA
COUNCIL COMMUNICATION
 
Agenda Item: 14C. 


Date Prepared:  7/31/2024 Council Meeting Date: 8/20/2024

TO:Mike Faust, City Manager 
THROUGH:
Mike Faust, Deputy City Manager 
FROM:  Jeffrey Curran, Development and Engineering Director 
SUBJECT:
Intergovernmental Agreement, Reimbursement Construction of Butler Drive and 129th Avenue 

Purpose:

Discussion and possible action to approve an Intergovernmental Agreement with the City of El Mirage, Maricopa County and the City of Glendale to identify and define the responsibilities of the Parties related to the Rescindment (C-64-20-123-M-01) and Reimbursement for the improvements associated with the previous construction of the Project Roadways at Butler Drive and 129th Avenue.
Summary:

On December 26, 2008, the Maricopa County Board of Supervisors approved an Intergovernmental Agreement (IGA) (C-91-09-081-M-00) (2008 IGA) between Maricopa County and the Cities of El Mirage, Glendale, and Peoria (City) for improvements to Northern Parkway from State Route 303 (Bob Stump Memorial Parkway) to U.S. 60 (Grand Avenue). The 2008 IGA identified and defined responsibilities for cost sharing, design, construction, construction management, right-of-way acquisition, utility relocation, and maintenance of the full length of the NPP.

 

Dermody Properties (Developer) is developing a project called LogistiCenter at Copperwing. The proposed development is in El Mirage, Arizona on the northeast corner of Dysart Road and Northern Parkway Westbound (WB) Frontage Road.

 

As part of the improvements to the NPP, the Parties constructed the Butler Drive extension and 129th Avenue (Project Roadways) within the Developer’s project area.

 

The Developer requested a change in land use and site access and has also requested the abandonment and removal of the Project Roadways that were previously constructed by the Parties.

 

The County is the lead agency for the NPP and acts on behalf of the Parties, to administer the federal aid reimbursement process.  The Parties have determined that the Project Roadways are no longer necessary for public use as roadways.

 

In exchange for the County’s May 22, 2024, rescindment (C-64-20-123-M-01) (Rescindment) of the County’s roadway declaration for the Project Roadways, the Developer deposited into escrow the sum of eight million dollars ($8,000,000.00) to be used by the County only to reimburse all federal and local matching funds associated with the Project Roadways (Reimbursement). Any excess funds provided by the Developer that are not expended by the Project will be returned to the Developer.

 

It is anticipated the federal funds repaid to the FHWA will be reallocated by MAG to the NPP in accordance with the ALCP.

 

Upon execution of this Agreement and the rescindment of the Board of Supervisors opening and declaring Butler Drive and 129th Avenue as County right-of-way, El Mirage shall be responsible for the operation and maintenance of the right-of-way and easements associated with the Project.

 

The County will:

 

·         On behalf of the NPP, the County shall accept the Reimbursement from the Developer, through a separate Reimbursement Agreement with the Developer. The County shall use the Reimbursement only to pay in full all the Federal Highway Administration and Local Match funds associated with the Project Roadways. If any amount of the $8,000,000.00 remains after the Reimbursement, not later than December 31, 2024, the County shall return to the Developer any amount remaining with the County after all funds have been reimbursed to the Federal Highway Administration and NPP.

 

·         The County shall retain the Local Match funds for use on the future NPP projects identified in the ALCP.

 

The City will:

 

·         Execute all documents and perform any and all tasks necessary to ensure that the Reimbursement is used as provided for in this Agreement and any balance is returned to the Developer.

 

·         In the event any Party notifies any other Party that some action or documentation is necessary to effectuate this IGA, each Party shall perform the required action and/or execute the necessary documents in a reasonable time.

Previous Actions/Background:

August 26, 2008 – The City Council approved the Intergovernmental Agreement, between Maricopa County, the City of El Mirage, the City of Glendale and the City of Peoria, for improvements to Northern Parkway, from State Route 303L to US 60 (Grand Avenue), P-0215, EN00142.
Staff Recommendation:

Staff recommends approving an Intergovernmental Agreement with Maricopa County and the Cities of El Mirage and Glendale to confirm the consent to the Rescindment and Reimbursement of improvements previously constructed as part of the NPP.
Fiscal Analysis:

There are no funds requested from the City under the terms of this agreement
ATTACHMENTS:
Description
Intergovernmental Agreement for the Reimbursement for the Construction of Butler Drive and 129th Avenue
Vicinity Map
Location Map - Easement
Contact Name and Number:  
Jeffrey Curran - 623-773-7249