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City Council Date: August 27, 2026 To: City Council Through: Scott Butler, City Manager Marc Heirshberg Assistant City Manager Brent Stoddard, Assistant City Manager From: Heather Basford, Development Services Deputy Director Subject: Adopting a notice of intent to enter into a retail development tax incentive agreement pursuant to A.R.S. § 9-500.11 (Version 2) related to a project generally located west and south of State Route 24, east of South Ellsworth Road, north of East Williams Field Road, south of a portion of East Williams Field Road, and west of the future South Crismon Road Alignment. (District 6) Purpose and Recommendation To consider adopting a notice of intent to enter into a retail development tax incentive agreement pursuant to A.R.S. § 9-500.11 (Version 2) related to the development of certain improvements for a project generally located west and south of State Route 24, east of South Ellsworth Road, north of East Williams Field Road, south of a portion of East Williams Field Road, and west of the future South Crismon Road Alignment (“Project Area”). Staff recommends the City Council approve the Resolution adopting the notice of intent. Background The project consists of the developments commonly referred to as the “Legacy Park and Gateway Crossing Project” (“Project”). The Legacy Park portion of the Project is a proposed 209 +/- gross-acre high-end, mixed-use development within a portion of the Project Area adjacent to Gateway Crossing. Legacy Park is proposed to include a luxury hotel, upscale retail and restaurant users, type A office space, and a multifamily residential component, all centered around a public recreation area within a pedestrian- oriented environment. The Gateway Crossing portion of the Project is a proposed 37 +/- gross-acre mixed use development within a portion of the Project Area adjacent to Legacy Park. Gateway Crossing is proposed to be a commercial retail development consisting of not less than two midscale hotels, a large-scale “big box” retailer, not fewer than two food service restaurants, and additional retail facilities. The Project requires significant investment in public infrastructure by the developer/owner, without which the Project Area would not be suitable for commercial development as planned. City staff are recommending that City Council consider the approval of a development agreement to, in pertinent part, reimburse a portion of the construction sales tax, retail sales tax, and transient lodging tax generated by the Project for certain public infrastructure (“Development Agreement”). Discussion A.R.S. § 9-500.11 (V.2) requires a city or town to adopt a notice of intent to enter into a “retail development tax incentive agreement” at least fourteen days before approving such an agreement. The adoption of the notice of intent is required for City Council to consider the approval of the Development Agreement because the agreement meets the definition of a “retail development tax incentive agreement”. The approval of the Resolution for the notice does not constitute approval of the Development Agreement by City Council; it only allows the Development Agreement to be placed on a City Council agenda for future consideration in accordance with A.R.S. § 9-500.11 (V.2). If the Resolution is approved, City staff intends to place the Development Agreement on the agenda for the September 14, 2026, City Council meeting at 5:45 p.m. for consideration for approval, or on an agenda for a later City Council meeting. Alternatives The following alternatives are presented for consideration: APPROVAL OF THE RESOLUTION City staff recommends the City Council approve the Resolution adopting a notice of intent to enter into a retail development tax incentive agreement pursuant to A.R.S. § 9-500.11 (V.2). NO ACTION OR NOT APPROVING OF THE RESOLUTION If the City Council chooses not to approve the Resolution or take no action, the Development Agreement cannot be placed on a City Council agenda for consideration as proposed without a future notice resolution being approved. Fiscal Impact There is no fiscal impact to the City in the adoption of the notice. Coordinated With The City Manager’s Office has closely coordinated with the City Attorney’s Office, Development Services, the Office of Economic Development, Engineering, Water Resources, and Transportation throughout this project.