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City Council Report
Date:
January 26, 2025
To:
City Council
Through:
Scott Butler, City Manager
Marc Heirshberg, Assistant City Manager
From:
Nana Appiah, Development Services Director
Ashley Scott, Management Assistant II
Subject:
DA25-00036 Amended and Restated DA
Council District 5
Purpose and Recommendation
The purpose of this report is to discuss and consider approving an Amended and
Restated Development Agreement (“DA”) with Germaine RV, LLC, and Arizona
limited liability corporation (“Germaine RV”), Monty R. Germaine and Debora L.
Germaine Trust (the “Germaine Trust”), and Arizona trust (individually an “Owner and
collectively, “Owners”). The Development Agreement included approximately 16.3
acres of land located on the southwest corner of East Main Street and the Loop 202
Red Mountain Freeway. The proposed Amended and Restated Development
Agreement would supersede and replace the original Development Agreement,
continue to prohibit certain uses on the property, defer sewer improvements, and
update the trigger that requires the property owners to connect to the City’s sewer
system.
Staff recommends that the City Council approve the Resolution.
Background
In 2018, the City Council approved a Development Agreement in conjunction with a
rezoning from General Commercial (GC) and Single Residential- 43 (RS-43)
to GC-Planned Area Development Overlay (PAD) to allow for the development of an
RV dealership and storage facility. The Development Agreement limited certain
landed uses and deferred the extension of sewer infrastructure based on special
conditions associated with the property, including minimal wastewater demand and
the distance to the nearest available sewer main, approximately 3,200 feet away.
Since the original approval, the property has been subdivided into phases under
separate ownership. The RV storage facility in Phase 1 and the office and RV
service building in Phase 2 were constructed consistently with original approvals.
The property owners have submitted a rezoning application to rezone the Property
from GC-PAD to GC with a new Planned Area Development overlay to
accommodate a 27,000-square-foot storage building with 11 toilets on the Phase 3
Property, as shown on the 2024 site plan (see Exhibit C), which is consistent with the
previously approved 2018 site plan.
Discussion
The purpose of the proposed Amended and Restated Development Agreement is to
reaffirm and update the requirements associated with the approved zoning and site
plan, reflect the current ownership, and allow the Phase 2 office and the Phase 3
building to be served by septic. It continues to defer sewer improvements and
updates the triggers requiring the property owners to connect to the City’s sewer
system.
The Development Agreement includes, among other provisions, the following:
1.1.
Prohibited Uses. The uses listed below (as set forth in the Mesa
Zoning Ordinance) shall be prohibited on any portion of the Property that is located six
hundred feet or more from the Main Street right-of-way.
Group Housing
Automobile Rentals
Automobile/Vehicle Sales and Leasing
Automobile/Vehicle Repair, Major
Automobile/Vehicle Service and Repair, Minor
Large Vehicle and Equipment Sales, Services, and Rental
Banquet and Conference Center
Building Materials and Services
Commercial Recreation Small-Scale
Commercial Recreation Large-Scale
Restaurants with Drive-Thru Facilities
Restaurants with Live Entertainment
Maintenance and Repair Services
Funeral Parlors and Mortuaries (including Accessory Crematorium)
Hotels and Motels
Light Fleet-Based Services
Handicraft/Custom Manufacturing
Light Assembly/Cabinetry
Research and Development
Reverse Vending Machine
Small Indoor Collection Facility
Transportation Passenger Terminals
Utilities, Minor
Heliports
1.3. On-Site Wastewater Treatment. In lieu of extending lines and
connecting to the City system, Owner may install, and their portion of the Property
may be served by, a fully contained on-site wastewater treatment system (“Septic”)
as follows:
A.
Septic to Serve the Office on the Phase 2 Property.
Owner of the Phase 2 Property may install Septic on the
Phase 2 Property to serve the Office.
B.
Septic to Serve the Building on the Phase 3 Property.
Owner of the Phase 3 Property may install Septic on the
Phase 3 Property to serve the Building.
1.4 Limited Use of the Property. Each Owner acknowledges and
agrees that the deferment of the requirement to extend and connect to the City’s
sewer system, and the ability to serve the wastewater needs of the Office and the
Building via Septic is contingent on the Office having no more than 10,900 square
feet of office space with no more than three (3) restrooms and the Building having no
more 27,000 square feet with no more than eleven (11) toilets with the remainder of
the Property (the Phase 1 Property), being used as RV Storage not generating
wastewater, all as shown on the 2024 Site Plan.
Each Owner further acknowledges and agrees that City may completely terminate
the deferment and without further notice, require an Owner to extend the sewer line,
connect to City’s sewer system, and serve the wastewater needs of the Property via
City’s wastewater service if that Owner causes any of the following to occur:
The size of the Office or the number of restrooms associated with the
Office increases or expands;
The size of the Building increases or expands and such increase or
expansion requires a major site plan modification under the Zoning
Ordinance;
The number of toilets associated with the Building increases or expands;
The RV Storage expands and substantively increases the wastewater volume;
Any alternative use of the Property or any portion thereof;
Any change in use that is a more intense use of the Property or any
portion thereof; or
Any use that creates a substantive increase in wastewater volume.
1.5 Future Availability of Sewer Service to the Property. Each Owner
further acknowledges and agrees that upon City providing written notice to Owner
that City sewer service is available at the Property, Owner will connect to City’s
wastewater system and stop using Septic within sixty (60) days from the date Owner
receives such notice. If Owner is required to connect their portion of the Property to
City’s sewer system, Owner further acknowledges and agrees that Owner must
comply with Mesa City Code and any other City regulations that apply, including
payment of all applicable fees and charges associated with such connection.
Thereafter, City will provide wastewater service to the Property.
1.6 Additional Obligation Phase 3 Property – Installation of Dry
Service Stub Out. In addition to designing and installing on the Phase 3 Property all
onsite plumbing including, without limitation, the Septic and dry sewer building lines,
in a manner that facilitates the future connection of the Building with City’s sanitary
sewer system once sewer service is available, Owner of the Phase 3 Property must
install a dry service stub out to Main Street. Additionally, in order for City to locate the
service end for future connection of the Building to City’s sanitary sewer, Owner of
the Phase 3 Property acknowledges and agrees that as part of the permitting
process for the Building, Owner will submit to City for City approval the construction
documents for the Building (collectively the “Construction Documents”). Construction
Documents include, but are not limited to, the construction callouts describing the
end of the service line consistent with City of Mesa Engineering Standards
(including, without limitation, the location which must be immediately adjacent to the
right-of-way for the street and compatible with the proposed depth of the sewer
service connection). In addition, the service end must be installed in accordance with
approved Construction Documents and be marked with an electronic marker per
MAG Standard Detail 440-1.
2. City’s Deferral and Notice of Availability of Sewer Service. City
agrees to the deferral of the extension of the wastewater collection system as set
forth herein. City will provide written notice to each Owner if City sewer service
becomes available at the Property.
3. Term/Termination. This Agreement shall become effective on the date
recorded and shall continue in full force and shall automatically terminate upon the
earlier of: (i) termination by the mutual written consent of both Owners and City
pursuant to this Agreement (ii) the effective date of Council approved re-zoning that
is in conflict with this Agreement, or (iii) fifty years from the approval date of this
Agreement.
Alternatives
The following alternatives are presented for consideration:
APPROVAL OF THE DEVELOPMENT AGREEMENT:
Approval will allow the proposed development to proceed while maintaining
land use limitations and ensuring a clear path for future connection to the
City’s sewer system. The agreement provides flexibility, given the current site
conditions, while protecting the City’s long-term infrastructure interests.
NO ACTION:
If the agreement is not approved, the proposed development may not proceed
as planned, and the property owners would be required to comply with the
standard sewer extension requirements.
Staff recommends the City approve the development agreement.
Fiscal Impact
The Development Agreement does not require any additional investment or fiscal
impact from the City.
Coordinated With
The Development Agreement was coordinated with the Development Services
Department, Water Resources Department, and the City Attorney's Office.