Item Coversheet
CITY OF PEORIA, ARIZONA
COUNCIL COMMUNICATION
 
Agenda Item: 30R. 


Date Prepared:  3/27/2025 Council Meeting Date: 4/22/2025

TO:Mike Faust, City Manager 
FROM:  Kevin Burke, Deputy City Manager 
SUBJECT:
First Amendment to the Partial Amendment, Lake Pleasant Heights, Development Agreement 

Purpose:

Discussion and possible action to adopt ORD. 2025-10 amending the Partial Amendment to and Restatement of the Development Agreement between the City of Peoria, Lake Pleasant Heights, Group Three Properties, and Norada Properties.

 

 

Summary:

This development is more commonly known as Mystic, and more formally known as Lake Pleasant Heights.  There are four development entities  operating as three signators to the agreement.  Negotiations were led by Voyager Investment Properties on behalf of those signators.

 

This amendment to the development agreement does three important things, it prohibits vertical construction of the Lake Pleasant Heights residential development north of the CAP canal until the six (6) lane El Mirage Bridge over the CAP canal is constructed; it establishes financial and infrastructure requirements associated with providing Fire Service; and it clarifies the triggers and timeline for the construction and dedication of neighborhood parks.

 

The amendment clarifies the trigger and time period to deliver neighborhood parks within the development.  Lake Pleasant Heights is responsible for the construction and dedication of two (2) neighborhood parks--one south of the CAP canal and one north.  They will set aside approximately 27 acres for the two parks, of which 18 acres must be useable. The amenities of these parks shall be determined by the city of Peoria but have been confirmed to include at least a lighted multi-purpose field, lighted court (basketball or pickleball or volleyball, etc.), playground, bathrooms, and ramadas. The southern park must commence upon the issuance of the 976th building permit and be completed within 18 months.  That trigger is expected to occur in Fiscal Year 2026. Once dedicated (construction completed and turned over to the City), all operation and maintenance becomes the responsibility of the City.

 

The amendment clarifies Lake Pleasant Height's responsibilities for Fire Service in the area.  Under the previous agreement, the developer was responsible for construction of a Fire Station on its property with reimbursement through impact fees.  The City has chosen to place the Fire Station within the Vistancia North Point development as a more central location to dispatching fire-medical services in this area.  This alleviates Lake Pleasant Heights from constructing the fire station, but all impact fees are to be retained by the City. Lake Pleasant Heights must construct a fire grade road to the property line with Vistancia prior to the issuance of any building permit for vertical construction north of the CAP.  Additionally, Lake Pleasant Heights shall purchase the fire engine for this station and pay $2.4 million per year towards the operating costs of the Fire Station (currently known as Fire Station 8) for a period of four (4) years upon the latter of the completion of the station or the acquisition of their first vertical building permit north of the CAP canal.  

 

The last important amendment notes that Lake Pleasant Heights may not acquire any building permits for vertical construction until the six (6) lane El Mirage Bridge over the CAP is constructed consistent with City standards.

Previous Actions/Background:

Lake Pleasant Heights was annexed and a development agreement was approved December 7, 1993.

 

The First Amendment to the Annexation and Development Agreement was approved June 10, 2002.

 

City Council approved the Planned Community District for Lake Pleasant Heights on December 13, 2005.

 

The "Original Development Agreement" was then adopted on December 21, 2005, terminating the 1993 Annexation and Development Agreement and the First Amendment.

 

The Partial Amendment to and Restatement of Development Agreement was adopted December 29, 2016.

Options:

Approve Ordinance 2025-10, adopting the Amendment.

 

Not approve Ordinance 2025-10 and revert to all obligations under the current agreement.

 

Provide direction for alternative terms and conditions for the amended agreement, to then be negotiated between the City and the Lake Pleasant Heights Parties. 

 

 

Staff Recommendation:

Staff recommends approval of Ordinance 2025-10 amending the Partial Amendment to and Restatement of the Development Agreement as to portions of Lake Pleasant Heights in Peoria, Arizona.
Fiscal Analysis:

This agreement is revenue neutral to the City of Peoria.  Many of the financial obligations of the current agreement were uncertain due to timing of the construction of new houses. This proposed amendment provides improved specifics on dollar amounts and timing of infrastructure delivery.
ATTACHMENTS:
Description
Proposed Amendment to Lake Pleasant Heights DA
Contact Name and Number:  
Kevin Burke, Deputy City Manager, 623.773.7395