Council Report

City Council Report
Date: October 22, 2026
To: Mayor and Council
Through: Scott Butler, City Manager
From: Jaye O’Donnell, Economic Development Director
Nick Juszczak, Sr. Project Manager Economic Development
Subject: Approving a resolution adopting a notice of intent to enter into a retail
development tax incentive agreement pursuant to A.R.S. § 9-500.11 related to the
development known as “The Craftsman” on approximately 19.25 +/- acres
generally located at the northwest corner of S. Hawes Road and E. Elliot Road.
(District 6)
Purpose and Recommendation
Staff recommends that 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) related to the
development of improvements for the project known as “The Craftsman”.
Background
The Craftsman is an approximately 19.25 +/- acres mixed-use development project located at the
northwest corner of Hawes Road and Elliot Road, with a mix of commercial and residential uses.
(the “Project”).
The Project would include approximately 39,971 RSF of commercial development that includes a
minimum of 10,000 SF of modern, upscale restaurants. A modern, upscale restaurant is defined
as a chef-driven, full-service restaurant offering a distinctive, non-standardized dining concept,
contemporary interior design, premium ingredients, and a curated menu and beverage program,
that must operate with fewer than 100 locations in the United States. Development of the Project
requires significant investment in public infrastructure, including improvements constructed by
Developer to Hawes Road, 82nd Street and Elliot with related utility and drainage infrastructure,
as well as improvements to Elliot Road. Without these improvements, the Project site would not
be suitable for the proposed commercial development.
The proposed development agreement would establish the development and performance
requirements for the Project including establishing an in-lieu payment for Elliot Road, as their
Elliot Road frontage will be completed with the approved Elliot Road Capital Improvement Project
beginning construction in October 2026. Provided the Developer meets the conditions precedent

set forth in the Development Agreement, they are eligible to receive the in-lieu payment back as
a reimbursement for eligible public infrastructure costs from transaction privilege tax revenues
generated by the Project.
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 for the Project because the agreement meets the
definition of a “retail development tax incentive agreement” under A.R.S. § 9-500.11 (V.2).
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 consideration in accordance with the requirements of A.R.S. § 9-500.11 (V.2).
If the notice of intent is approved, Staff intends to place the development agreement on the
November 16, 2026, City Council meeting agenda for approval, or at a later City Council meeting
date.
Alternatives
The following alternatives are presented for consideration:
APPROVAL OF THE RESOLUTION: Approval of the Resolution does not constitute approval of
the development agreement or obligate the City Council to approve the agreement at a
future meeting. It allows the proposed development agreement to be placed on a future City
Council agenda for consideration in accordance with A.R.S. § 9-500.11 (V.2). If the Resolution
is approved, staff intends to place the proposed development agreement on the November
16, 2026 City Council meeting agenda for consideration and possible approval, or at a later
City Council meeting date.
NO ACTION OR DENIAL OF THE RESOLUTION: If the Council takes no action or does not
approve the Resolution, the proposed development agreement cannot be presented for
approval as currently scheduled.
Fiscal Impact
Approval of the Resolution and adoption of the notice of intent have no immediate fiscal impact.
The potential fiscal impact of the proposed development agreement will be addressed when the
agreement is presented to the City Council for consideration.

Coordinated With
The Office of Economic Development has worked closely with the City Attorney's Office,
Development Services, Engineering, and Transportation on the Project.