Discussion and possible action to adopt RES. 2026-34 approving a Development and Disposition Agreement between the City of Peoria and Newtown Community Development Corporation for the conveyance of City-owned property located at 8490 West Washington Street for the development of long-term affordable housing; authorizing the City Manager, or designee, to execute the Development and Disposition Agreement and related documents; and authorize the City Manager, or designee, to approve administrative and non-material amendments to the Development and Disposition Agreement, including adjustments to the Schedule of Performance.

The City owns the property located at 8490 W. Washington St., a former carwash site within a predominantly residential corridor. The City identified the site as an opportunity to complete an existing residential segment of Washington Street and to advance the City’s affordable housing objectives through the redevelopment of an underutilized parcel.

To evaluate development feasibility, the City engaged Newtown Community Development Corporation (Newtown CDC), a nonprofit affordable housing developer, and awarded American Rescue Plan Act (ARPA) funding to support a feasibility analysis, preliminary site planning, and completion of an Environmental Assessment (EA). The EA evaluated site conditions and the viability of the proposed site plans and confirmed that the property is suitable for residential development with no mitigation required. Final environmental clearance, including Request for Release of Funds/Finding of No Significant Impact (RROF/FONSI) posting and approval by the U.S. Department of Housing and Urban Development, is anticipated by March 31, 2026.

Based on the results of the feasibility work and environmental review, Newtown CDC proposes the development of up to three for-sale affordable housing units utilizing a Community Land Trust (CLT) model. The CLT structure ensures long-term affordability through resale restrictions, shared appreciation provisions, and ongoing stewardship while allowing income-qualified households to achieve homeownership.

The proposed Development and Disposition Agreement establishes the terms and conditions governing the conveyance of the City-owned property, the development of the project, long-term affordability requirements, and compliance with applicable federal funding regulations, including ARPA, HOME, and Community Development Block Grant (CDBG) requirements. The DDA includes a Schedule of Performance identifying key development milestones and incorporates enforcement provisions to protect the City’s interests. Adoption of the Resolution authorizes the City Manager, or designee, to execute the DDA and to approve administrative and non-material amendments, including adjustments to the Schedule of Performance, as necessary to efficiently implement the project while preserving City Council oversight of material changes.

• February 19, 2026 – Maricopa County HOME Consortium awarded Newtown HOME CHDO funding to support development of the carwash site.
• January 26, 2026 – Environmental Review Assessment determined site is viable and no mitigation is required.
• December 28, 2024 – City awarded ARPA funding to Newtown Community Development Corporation for affordable housing feasibility, site planning, and environmental review activities.