Summary:
Introduction:
The City of Peoria has maintained a sustained interest in the annexation of key Arizona State Land Departments (ASLD) parcels within the City's Planning Area. The Peoria Planning Area is depicted on the General Plan and consists of land within the City and outlying areas that are anticipated to be part of the City someday. The subject area ("North Peoria Gateway") consists of approximately 1,621 acres and is generally located on both sides of Loop 303 between the Calle Lejos alignment and Lone Mountain Parkway. North Peoria Gateway (NPG) is one of several State Land areas that the City has identified as significant in nature given its proximity to existing development or infrastructure limits and/or are located along future strategic economic development corridors, such as the Loop 303.
North Peoria Gateway includes critical freeway frontage for development of the City, and access points for Loop 303 including Happy Valley Parkway, the future Jomax Road exit, and Lone Mountain Parkway. The site also has considerable design constraints including an approximately 990' powerline easement along the southern boundary, an approximately 660' powerline corridor traversing the center of the property from south to north, various washes across the property, as well as the Beardsley Canal which meanders through the center of the property. Working within these limitations, ASLD has proposed the entitlement of the land to provide a range of development opportunities while focusing the intensity along the freeway corridor in alignment with the general plan designations for these areas. The proposed entitlement also seeks to provide boundary conditions that are sensitive to existing developments both within the City and Maricopa County.
The annexation of State Land is distinctly different than private land under the Arizona Revised Statutes. More specifically, pursuant to A.R.S. § 9-471.A.1, the annexation of State Land requires the approval of the State Selection Board and the State Land Commissioner. On July 17, 2019, the State Selection Board authorized the annexation of this parcel and other specified parcels into the City of Peoria. However, concurrent with each final annexation, the State Land Department has required the full entitlement (rezone) of the subject site. Moreover, the State Land Department has requested the approval of a Pre-Annexation Development Agreement ("PADA") to precede each annexation and entitlement application. The annexation, initial zoning, and rezoning efforts are on this council agenda subsequent to this item for discussion and possible action by City Council.
Pre-Annexation Development Agreement (PADA):
The purpose of the agreement is to solidify the understanding between the Arizona State Land Department, and the City of Peoria regarding the steps going forward in processing the accompanying cases (Annexation, Initial Zoning, and Rezoning). The main highlights of the proposed Pre-Annexation Agreement are as follows:
City of Peoria obligations
- The City agrees to annex the 458 acres of State Land located within unincorporated Maricopa County.
- The annexed land will be entitled as the North Peoria Gateway utilizing the Planned Community Development (PCD) mechanism and ASLD as the applicant.
- The final annexation action, initial zoning, and rezone are to be considered on the same agenda;
- If City Council approves the annexation but denies the Rezone, the City must rescind the annexation ordinance upon request by ASLD and prior to the effective date.
- Upon adoption, a future developer will have a vested right to develop the property in line with its zoning and the agreement and said rights will run with the land;
- The City agrees to process development applications in a reasonably prompt manner;
- City cannot enact any ordinance that limits the timing of the development without the consent of the Land Commissioner;
- Regulations, fees, permit requirements and exactions that apply to the property are fixed as of the adoption of the zoning, notwithstanding new legislative requirements or amendments pertaining to the protection of public health and safety.
- City to fund and construct Happy Valley & Vistancia Boulevard intersection improvements (approved as part of the CIP).
Arizona State Land Department obligations
- Advance land planning and sale of properties in this area to catalyze economic development and smart growth.
- Prioritizes certain parcels within the PCD. The PADA places residential restrictions on Parcels C, D and Q. The latter requires the development of 175,000 square feet of retail development within a period of time before residential may be permitted. These restrictions facilitate the development of priority parcels for specified development type within a reasonable period of time prior to residential contemplation.
- Portions of Parcel R located adjacent to the power substation are restricted from residential development to prevent incompatible development.
- ASLD to permit early construction of Westward Skies Drive connecting Five North at Vistancia with Vistancia Boulevard. ASLD successor(s) to reimburse 70% of the cost at the time of subsequent land auctions.
- Acknowledges that property will be served with City water and sewer services within its service area;
Moving Forward:
Prior to development, land held the by Arizona State Land Trust is auctioned off at a public auction in accordance with applicable state statutes, regulations, and noticing requirements. The auction winner would then need to obtain all subsequent development approvals, as appropriate, from the City of Peoria. These would include at a minimum, Preliminary Plat or Site Plan as well as Final Plat approvals and all associated permits.
There is no such auction scheduled or planned at this time. The subject Pre-Annexation Development Agreement would serve to streamline the companion cases and identify expectations for both parties with regards to those efforts while better positioning the property for sale at the highest value possible in alignment with the zoning.