ORDINANCE O2026.30.DOCX
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1 Ordinance No. O2026.30 ORDINANCE NO. O2026.30 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMPE, ARIZONA AUTHORIZING THE TRANSFER AND/OR ABANDONMENT OF VARIOUS PROPERTY INTERESTS AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDED DEVELOPMENT AGREEMENT AND ADDITIONAL DOCUMENTS ASSOCIATED WITH 1ST & FARMER, LLCAND THE PROJECT LOCATED AT THE NORTHEAST CORNER OF 1ST STREET AND FARMER AVENUE AND AUTHORIZING THE WAIVER OF ANY REVERSIONARY CONSIDERATIONS WITH RESPECT TO ZONING AND DEVELOPMENT CASE NO. DS230661 / PL230127 / ZON230008 / PAD230010. WHEREAS, City and 1st & Farmer, LLC (“Developer”) are parties to that certain Development and Disposition Agreement (First and Farmer) dated July 28, 2023 (C2023-190) and recorded on August 1, 2023 as Document No. 2023-0400502, Official Records of Maricopa County, Arizona (the “DDA”); WHEREAS, after the execution and recordation of the DDA, City and Developer entered into that certain Memorandum of Understanding (Gonzales-Martinez House) dated September, 2023 (the “MOU”). The MOU further described the “Rehabilitation” work to be performed under the DDA and provided for certain costs incurred by Developer under the MOU to be credited against the Purchase Price to be paid by Developer to City under the DDA; and WHEREAS the DDA contemplates, among other things, an exchange of property interests between City and Developer in order to accomplish a replat and development/redevelopment of the area; and WHEREAS, City and Developer desire to amend and update the DDA within the meaning of A.R.S. §9-500.05 to set forth their agreements regarding development of the Property, which will include the City’s abandonment of a segment of Farmer Avenue, located north of 1st Street, City accepting a Special Warranty Deed and Deeds of Trust, and such related matters as they deem appropriate; WHEREAS, Section 6-304(E) of the Tempe Zoning and Development Code (“ZDC”) requires that, if a building permit application is not submitted within two years of rezoning approval, the Council consider whether the zoning should revert to its previous classification; and 2 Ordinance No. O2026.30 WHEREAS, the Applicant has appeared before this Council and the Council has determined that a completed building permit application is not feasible within two years of the approval of Case No. DS230661 / PL230127 / ZON230008 / PAD230010, but it remains in the best interests of the City, the Developer and the general public that the rezoning remain applicable and any reversionary considerations be removed; and WHEREAS, Section 2.11(g) of the Tempe City Charter requires an ordinance to convey or authorize the conveyance or lease of any interest in City-owned lands; and WHEREAS, the City has determined that it is in the best interests of the City of Tempe to enter into all documents referenced herein. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF TEMPE, ARIZONA, as follows: Section 1: That the City Manager (or designee) is authorized to execute an amended Development Agreement as necessary to develop the Property in substantially the form on file with the City Clerk’s Office and to execute all other documents reasonably necessary or appropriate to effectuate the transactions contemplated in the DDA as amended or this Ordinance, including without limitation those documents referenced in or attached as exhibits to the DDA as amended. Section 2. That any reversionary zoning considerations for Case No. . DS230661 / PL230127 / ZON230008 / PAD230010, as set forth in Tempe ZDC 6-304(E) are hereby removed; Section 3. That the Community Development Director is hereby authorized to take such actions as are necessary, to abandon, relinquish and vacate any Right of Way identified in the DDA. Such abandonment shall be completed in accordance with the usual and customary procedures of the Community Development Department, including, without limitation, satisfactory relocation of any facilities located within the easement areas to be abandoned, the granting of new easements for such facilities, notification of affected utilities and payment by the applicant of all applicable costs, fees, and expenses associated with the relocation or abandonment of any existing facilities located within said easement area. Section 4. Any abandonment authorized by this Ordinance shall not be effective until the Community Development Director or designee executes and records a document indicating that all requirements of Section 3 of this Ordinance have been satisfied. Once effective, all rights of the City with regard to the portion of the public right-of-way abandoned shall vest in the record owner(s) of the property and shall be subject to the same encumbrances, liens, limitations, restrictions, easements, and estates as exist on the land of which the public easement is a part. Section 5: Pursuant to City Charter, Section 2.12, this ordinance will be effective thirty (30) days after adoption. 3 Ordinance No. O2026.30 PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF TEMPE, ARIZONA, this 11th day of June, 2026. Corey D. Woods, Mayor ATTEST: Kara A. DeArrastia, City Clerk APPROVED AS TO FORM: Eric C. Anderson, City Attorney