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HomeMy WebLinkAbout170316Pz:\council packets\2017\r170316\170316a.docx Last Printed: 3/8/2017 1:58 PM Page 1 of 3 NOTICE OF THE EXECUTIVE AND REGULAR SESSIONS OF THE FOUNTAIN HILLS TOWN COUNCIL TIME: 5:00 P.M. – EXECUTIVE SESSION (Executive Session will be held in the Fountain Conference Room - 2nd floor) 6:30 P.M. – REGULAR SESSION WHEN: THURSDAY, MARCH 16, 2017 WHERE: FOUNTAIN HILLS COUNCIL CHAMBERS 16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ Councilmembers of the Town of Fountain Hills will attend either in person or by telephone conference call; a quorum of the Town’s various Commission, Committee or Board members may be in attendance at the Council meeting. Notice is hereby given that pursuant to A.R.S. § 1-602.A.9, subject to certain specified statutory exceptions, parents have a right to consent before the State or any of its political subdivisions make a video or audio recording of a minor child. Meetings of the Town Council are audio and/or video recorded and, as a result, proceedings in which children are present may be subject to such recording. Parents, in order to exercise their rights may either file written consent with the Town Clerk to such recording, or take personal action to ensure that their child or children are not present when a recording may be made. If a child is present at the time a recording is made, the Town will assume that the rights afforded parents pursuant to A.R.S. § 1-602.A.9 have been waived. PROCEDURE FOR ADDRESSING THE COUNCIL Anyone wishing to speak before the Council must fill out a speaker’s card and submit it to the Town Clerk prior to Council discussion of that Agenda item. Speaker Cards are located in the Council Chamber Lobby and near the Clerk’s position on the dais. Speakers will be called in the order in which the speaker cards were received either by the Clerk or the Mayor. At that time, speakers should stand and approach the podium. Speakers are asked to state their name and whether or not they reside in Fountain Hills (do not provide a home address) prior to commenting and to direct their comments to the Presiding Officer and not to individual Councilmembers. Speakers’ statements should not be repetitive. If a speaker chooses not to speak when called, the speaker will be deemed to have waived his or her opportunity to speak on the matter. Speakers may not (i) reserve a portion of their time for a later time or (ii) transfer any portion of their time to another speaker. If there is a Public Hearing, please submit the speaker card to speak to that issue during the Public Hearing. Individual speakers will be allowed three contiguous minutes to address the Council. Time limits may be waived by (i) discretion of the Town Manager upon request by the speaker not less than 24 hours prior to a Meeting, (ii) consensus of the Council at Meeting or (iii) the Mayor either prior to or during a Meeting. Please be respectful when making your comments. If you do not comply with these rules, you will be asked to leave. Mayor Linda M. Kavanagh Councilmember Dennis Brown Councilmember Alan Magazine Vice Mayor Nick DePorter Councilmember Art Tolis Councilmember Henry Leger Councilmember Cecil A. Yates z:\council packets\2017\r170316\170316a.docx Last Printed: 3/8/2017 1:58 PM Page 2 of 3 EXECUTIVE SESSION AGENDA  CALL TO ORDER – Mayor Linda M. Kavanagh 1. ROLL CALL AND VOTE TO GO INTO EXECUTIVE SESSION: Pursuant to: A.R.S. § 38-431.03(A)(4), discussion or consultation with the attorneys of the public body in order to consider its position and instruct its attorneys regarding the public body’s position regarding contracts that are the subject of negotiations, impending or contemplated litigation or in settlement discussions conducted in order to avoid or resolve litigation (specifically (i) the proposed Copperwynd Development Agreement and Planned Area Development Zoning and (ii) (Palatial Estates Lots 17 & 18). 2. ADJOURNMENT. REGULAR SESSION AGENDA  CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Linda M. Kavanagh  INVOCATION - Pastor Bill Good, Fountain Hills Presbyterian Church  ROLL CALL – Mayor Linda M. Kavanagh  MAYOR’S REPORT i) None.  SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS i) The Mayor and/or Council may review RECENT EVENTS attended relating to Economic Development. CALL TO THE PUBLIC Pursuant to A.R.S. §38-431-01(H), public comment is permitted (not required) on matters not listed on the agenda. Any such comment (i) must be within the jurisdiction of the Council and (ii) is subject to reasonable time, place, and manner restrictions. The Council will not discuss or take legal action on matters raised during “Call to the Public” unless the matters are properly noticed for discussion and legal action. At the conclusion of the call to the public, individual Councilmembers may (i) respond to criticism, (ii) ask staff to review a matter or (iii) ask that the matter be placed on a future Council agenda. CONSENT AGENDA ITEMS All items listed on the Consent Agenda are considered to be routine, non-controversial matters and will be enacted by one motion and one roll call vote of the Council. All motions and subsequent approvals of consent items will include all recommended staff stipulations unless otherwise stated. There will be no separate discussion of these items unless a Councilmember or member of the public so requests. If a Councilmember or member of the public wishes to discuss an item on the consent agenda, he/she may request so prior to the motion to accept the Consent Agenda or with notification to the Town Manager or Mayor prior to the date of the meeting for which the item was scheduled. The items will be removed from the Consent Agenda and considered in its normal sequence on the Agenda. 1. CONSIDERATION of approving the TOWN COUNCIL MEETING MINUTES from February 21, 2017. 2. CONSIDERATION of approving the 4th amendment to the COOPERATIVE PURCHASING AGREEMENT (C2016-182) with Vincon Engineering Construction, LLC, in an amount not to exceed $50,000.00, for Town-wide Concrete repair and replacement. z:\council packets\2017\r170316\170316a.docx Last Printed: 3/8/2017 1:58 PM Page 3 of 3 REGULAR AGENDA 3. DISCUSSION WITH POSSIBLE DIRECTION TO STAFF regarding the DARK SKY DESIGNATION APPLICATION. 4. CONSIDERATION of RESOLUTION 2017-07, a DEVELOPMENT AGREEMENT between the Town of Fountain Hills and Palisades Resorts, LLC to allow the development of the Copperwynd Resort with a 300 room hotel, conference facility, restaurant, and additional ancillary uses on approximately 16.5 acres located at 13225 N. Eagle Ridge Drive, Fountain Hills, AZ. (Case #DA 2017-01) 5. PUBLIC HEARING to receive comments on ORDINANCE 17-04, a text amendment to the Town of Fountain Hills Zoning Ordinance and Map. If adopted, the amendment would rezone approximately 16.5 acres at 13225 N. Eagle Ridge Drive (Copperwynd Resort), from “R-5 PUD” to the “Copperwynd PAD” zoning district. (Case # Z 2017-02) 6. CONSIDERATION of ORDINANCE 17-04, a text amendment to the Town of Fountain Hills Zoning Ordinance and Map. If adopted, the amendment would rezone approximately 16.5 acres at 13225 N. Eagle Ridge Drive (Copperwynd Resort), from “R-5 PUD” to the “Copperwynd PAD” zoning district. (Case # Z 2017-02) 7. DISCUSSION WITH POSSIBLE DIRECTION TO STAFF relating to any item included in the League of Arizona Cities and Towns weekly LEGISLATIVE BULLETIN or relating to any ACTION PROPOSED OR PENDING BEFORE THE STATE LEGISLATURE. a. League of Cities and Towns Bulletin(s) 8. COUNCIL DISCUSSION/DIRECTION to the Town Manager. Item(s) listed below are related only to the propriety of (i) placing such item(s) on a future agenda for action or (ii) directing staff to conduct further research and report back to the Council: i.) None. 9. SUMMARY OF COUNCIL REQUESTS and REPORT ON RECENT ACTIVITIES by the Mayor, Individual Councilmembers, and the Town Manager. 10. ADJOURNMENT. DATED this 9th day of March, 2017. Bevelyn J. Bender, Town Clerk The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 480-816-5100 (voice) or 1-800-367-8939 (TDD) 48 hours prior to the meeting to request a reasonable accommodation to participate in this meeting or to obtain agenda information in large print format. Supporting documentation and staff reports furnished the Council with this agenda are available for review in the Clerk’s office. z:\council packets\2017\r170316\170316a.docx Last Printed: 3/8/2017 1:58 PM Page 1 of 3 NOTICE OF THE EXECUTIVE AND REGULAR SESSIONS OF THE FOUNTAIN HILLS TOWN COUNCIL TIME: 5:00 P.M. – EXECUTIVE SESSION (Executive Session will be held in the Fountain Conference Room - 2nd floor) 6:30 P.M. – REGULAR SESSION WHEN: THURSDAY, MARCH 16, 2017 WHERE: FOUNTAIN HILLS COUNCIL CHAMBERS 16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ Councilmembers of the Town of Fountain Hills will attend either in person or by telephone conference call; a quorum of the Town’s various Commission, Committee or Board members may be in attendance at the Council meeting. Notice is hereby given that pursuant to A.R.S. § 1-602.A.9, subject to certain specified statutory exceptions, parents have a right to consent before the State or any of its political subdivisions make a video or audio recording of a minor child. Meetings of the Town Council are audio and/or video recorded and, as a result, proceedings in which children are present may be subject to such recording. Parents, in order to exercise their rights may either file written consent with the Town Clerk to such recording, or take personal action to ensure that their child or children are not present when a recording may be made. If a child is present at the time a recording is made, the Town will assume that the rights afforded parents pursuant to A.R.S. § 1-602.A.9 have been waived. PROCEDURE FOR ADDRESSING THE COUNCIL Anyone wishing to speak before the Council must fill out a speaker’s card and submit it to the Town Clerk prior to Council discussion of that Agenda item. Speaker Cards are located in the Council Chamber Lobby and near the Clerk’s position on the dais. Speakers will be called in the order in which the speaker cards were received either by the Clerk or the Mayor. At that time, speakers should stand and approach the podium. Speakers are asked to state their name and whether or not they reside in Fountain Hills (do not provide a home address) prior to commenting and to direct their comments to the Presiding Officer and not to individual Councilmembers. Speakers’ statements should not be repetitive. If a speaker chooses not to speak when called, the speaker will be deemed to have waived his or her opportunity to speak on the matter. Speakers may not (i) reserve a portion of their time for a later time or (ii) transfer any portion of their time to another speaker. If there is a Public Hearing, please submit the speaker card to speak to that issue during the Public Hearing. Individual speakers will be allowed three contiguous minutes to address the Council. Time limits may be waived by (i) discretion of the Town Manager upon request by the speaker not less than 24 hours prior to a Meeting, (ii) consensus of the Council at Meeting or (iii) the Mayor either prior to or during a Meeting. Please be respectful when making your comments. If you do not comply with these rules, you will be asked to leave. Mayor Linda M. Kavanagh Councilmember Dennis Brown Councilmember Alan Magazine Vice Mayor Nick DePorter Councilmember Art Tolis Councilmember Henry Leger Councilmember Cecil A. Yates z:\council packets\2017\r170316\170316a.docx Last Printed: 3/8/2017 1:58 PM Page 2 of 3 EXECUTIVE SESSION AGENDA  CALL TO ORDER – Mayor Linda M. Kavanagh 1. ROLL CALL AND VOTE TO GO INTO EXECUTIVE SESSION: Pursuant to: A.R.S. § 38-431.03(A)(4), discussion or consultation with the attorneys of the public body in order to consider its position and instruct its attorneys regarding the public body’s position regarding contracts that are the subject of negotiations, impending or contemplated litigation or in settlement discussions conducted in order to avoid or resolve litigation (specifically (i) the proposed Copperwynd Development Agreement and Planned Area Development Zoning and (ii) (Palatial Estates Lots 17 & 18). 2. ADJOURNMENT. REGULAR SESSION AGENDA  CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Linda M. Kavanagh  INVOCATION - Pastor Bill Good, Fountain Hills Presbyterian Church  ROLL CALL – Mayor Linda M. Kavanagh  MAYOR’S REPORT i) None.  SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS i) The Mayor and/or Council may review RECENT EVENTS attended relating to Economic Development. CALL TO THE PUBLIC Pursuant to A.R.S. §38-431-01(H), public comment is permitted (not required) on matters not listed on the agenda. Any such comment (i) must be within the jurisdiction of the Council and (ii) is subject to reasonable time, place, and manner restrictions. The Council will not discuss or take legal action on matters raised during “Call to the Public” unless the matters are properly noticed for discussion and legal action. At the conclusion of the call to the public, individual Councilmembers may (i) respond to criticism, (ii) ask staff to review a matter or (iii) ask that the matter be placed on a future Council agenda. CONSENT AGENDA ITEMS All items listed on the Consent Agenda are considered to be routine, non-controversial matters and will be enacted by one motion and one roll call vote of the Council. All motions and subsequent approvals of consent items will include all recommended staff stipulations unless otherwise stated. There will be no separate discussion of these items unless a Councilmember or member of the public so requests. If a Councilmember or member of the public wishes to discuss an item on the consent agenda, he/she may request so prior to the motion to accept the Consent Agenda or with notification to the Town Manager or Mayor prior to the date of the meeting for which the item was scheduled. The items will be removed from the Consent Agenda and considered in its normal sequence on the Agenda. 1. CONSIDERATION of approving the TOWN COUNCIL MEETING MINUTES from February 21, 2017. 2. CONSIDERATION of approving the 4th amendment to the COOPERATIVE PURCHASING AGREEMENT (C2016-182) with Vincon Engineering Construction, LLC, in an amount not to exceed $50,000.00, for Town-wide Concrete repair and replacement. z:\council packets\2017\r170316\170316a.docx Last Printed: 3/8/2017 1:58 PM Page 3 of 3 REGULAR AGENDA 3. DISCUSSION WITH POSSIBLE DIRECTION TO STAFF regarding the DARK SKY DESIGNATION APPLICATION. 4. CONSIDERATION of RESOLUTION 2017-07, a DEVELOPMENT AGREEMENT between the Town of Fountain Hills and Palisades Resorts, LLC to allow the development of the Copperwynd Resort with a 300 room hotel, conference facility, restaurant, and additional ancillary uses on approximately 16.5 acres located at 13225 N. Eagle Ridge Drive, Fountain Hills, AZ. (Case #DA 2017-01) 5. PUBLIC HEARING to receive comments on ORDINANCE 17-04, a text amendment to the Town of Fountain Hills Zoning Ordinance and Map. If adopted, the amendment would rezone approximately 16.5 acres at 13225 N. Eagle Ridge Drive (Copperwynd Resort), from “R-5 PUD” to the “Copperwynd PAD” zoning district. (Case # Z 2017-02) 6. CONSIDERATION of ORDINANCE 17-04, a text amendment to the Town of Fountain Hills Zoning Ordinance and Map. If adopted, the amendment would rezone approximately 16.5 acres at 13225 N. Eagle Ridge Drive (Copperwynd Resort), from “R-5 PUD” to the “Copperwynd PAD” zoning district. (Case # Z 2017-02) 7. DISCUSSION WITH POSSIBLE DIRECTION TO STAFF relating to any item included in the League of Arizona Cities and Towns weekly LEGISLATIVE BULLETIN or relating to any ACTION PROPOSED OR PENDING BEFORE THE STATE LEGISLATURE. a. League of Cities and Towns Bulletin(s) 8. COUNCIL DISCUSSION/DIRECTION to the Town Manager. Item(s) listed below are related only to the propriety of (i) placing such item(s) on a future agenda for action or (ii) directing staff to conduct further research and report back to the Council: i.) None. 9. SUMMARY OF COUNCIL REQUESTS and REPORT ON RECENT ACTIVITIES by the Mayor, Individual Councilmembers, and the Town Manager. 10. ADJOURNMENT. DATED this 9th day of March, 2017. Bevelyn J. Bender, Town Clerk The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 480-816-5100 (voice) or 1-800-367-8939 (TDD) 48 hours prior to the meeting to request a reasonable accommodation to participate in this meeting or to obtain agenda information in large print format. Supporting documentation and staff reports furnished the Council with this agenda are available for review in the Clerk’s office. TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date: 3/16/2017 Meeting Type:Regular Session Agenda Type:Consent Submitting Department:Administration Staff Contact Information:BevelynJ. Bender, Town Clerk;480-816-5115;bbender@fh.az.gov Council Goal: Strategic Values:CivicResponsibility C3 Solicit feedback in decision-making REQUEST TO COUNCIL (Agenda Language):CONSIDERATION of approving the TOWN COUNCIL MEETING MINUTES from February 21, 27, and March 2,2017. Applicant:NA Applicant Contact Information: Property Location: Related Ordinance,Policy or Guiding Principle:A.R.S.§38-431.01 Staff Summary (background):The intent of approving previous meeting minutes is to ensure an accurate account of the discussion and action that took place at that meeting for archival purposes.Approved minutes are placed on the Town's website in compliance with state law. Risk Analysis (options or alternatives with implications): Fiscal Impact (initial and ongoing costs;budget status): Budget Reference (page number): Funding Source:NA If Multiple Funds utilized,list here: Budgeted;if No,attach Budget Adjustment Form:NA Recommendation(s)by Board(s)or Commission(s): Staff Recommendation(s):Approve List Attachment(s):None SUGGESTED MOTION (for Council use):Move to approve the consent agenda as listed Prepared by:Approved: l~.\yW^-g Bevelyn Bender, Town Clerk ~3/6/2017 Grady E.MillerTTovAManager 3/7/2017 Page 1 of 1 TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date:3/16/2017 Meeting Type:Regular Session Agenda Type:Regular Submitting Department:Development Services Staff Contact Information:Robert Rodgers,Development Services Director,rrodgers@fh.az.gov REQUEST TO COUNCIL (Agenda Language): CONSIDERATION of RESOLUTION #2017-07,a DEVELOPMENT AGREEMENT between the Town of Fountain Hills and Palisades Resorts,LLC to allow the development of the Copperwynd Resort with a 300 room hotel,conference facility,restaurant,and additional ancillary uses on approximately 16.5 acres located at 13225 N. Eagle Ridge Drive,Fountain Hills,AZ.[Case #DA 2017-01) PUBLIC HEARING to receive comments on ORDINANCE #17-04,a text amendment to the Town of Fountain Hills Zoning Ordinance and Map. If adopted,the amendment would rezone approximately 16.5 acres at 13225 N.Eagle Ridge Drive [Copperwynd Resort),from "R-5 PUD"to the "Copperwynd PAD"zoning district.[Case #Z 2017-02) CONSIDERATION of ORDINANCE #17-04,a text amendment to the Town of Fountain Hills Zoning Map. If adopted, the amendment would rezone approximately 16.5 acres at 13225 N. Eagle Ridge Drive [Copperwynd Resort),from "R-5 PUD"to the "Copperwynd PAD"zoning district.(Case #Z 2017-02) Applicant: Applicant Contact Information: Owner: Property Location: Jordan Rose,Rose Law Group PC 7144 E.Stetson Drive,Ste 300 Scottsdale,AZ 85251 (480)505-3939 Bill Hinz,Palisades Resort,LLC 13225 N.Eagle Ridge Drive Fountain Hills,AZ 85268 Related Ordinance,Policy or Guiding Principle: 2010 General Plan Zoning Ordinance Zoning Ordinance Zoning Ordinance Zoning Ordinance Chapter 3 -Land Use Map -(Figure 11) Chapter 2 -Procedures Chapter 16 -Lodging Zoning Districts Chapter 19 -Architectural Review Guidelines Chapter 23 -Planned Area Development Page 1 of 4 Copperwynd PAD Modified L-3 – Lodging Zoning District 19 rooms per acre - maximum of 300 rooms Customary ancillary uses by right Building heights up to 50’ 25% lot coverage Minimum building separation = 7’ All building setbacks = 20’ Allow for outdoor entertainment, music or speakers if compliant with the Town’s noise ordinance. Internal wayfinding signage and monument signs Shared parking model. Includes an off-site parking if within 1,500’. 15% open space Development Agreement Vests the Copperwynd PAD zoning for 10 years Approves the Phasing Plan Approves the Conceptual Site Plan Outlines the required Traffic Mitigation measures Outlines the total Parking Requirements per phase Establishes the timeline for completion Phase 1 = 3 years Phase 2 = 6 years Phase 3 = 10 years Requires a minimum 4-Star quality Hotel Requires a Public Art contribution Planning & Zoning Commission: Approve Staff : Approve Subject to the regulations outlined in the Copperwynd PAD Subject to the requirements and conditions outlined in the Development Agreement. Copperwynd Resort Existing Conditions COPPERWYND RESORT &CLUB Conceptual Planning Package JienHfiBus 2908587.1 RESOLUTION 2017-07 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, APPROVING A DEVELOPMENT AGREEMENT BETWEEN THE TOWN AND PALISADES RESORTS, LLC. BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. The Development Agreement between the Town of Fountain Hills and Palisades Resorts, LLC is hereby approved in substantially the form and substance attached hereto as Exhibit A and incorporated herein by reference. SECTION 2. The Mayor, the Town Manager, the Town Clerk and the Town Attorney are hereby authorized and directed to execute all documents and take all steps necessary to carry out the purpose and intent of this Resolution. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona, March 16, 2017. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: Linda M. Kavanagh, Mayor Bevelyn J. Bender, Town Clerk REVIEWED BY: APPROVED AS TO FORM: Grady E. Miller, Town Manager Andrew J. McGuire, Town Attorney 2908587.1 EXHIBIT A TO RESOLUTION 2017-07 [Development Agreement] See following pages. Copperwynd Resort Expansion Development Agreement – Fountain Hills - 2017 2896602.12 WHEN RECORDED RETURN TO: Town of Fountain Hills ATTENTION: TOWN CLERK 16705 East Avenue of the Fountains Fountain Hills, AZ 85268 ================================================================== DEVELOPMENT AGREEMENT FOR COPPERWYND RESORT EXPANSION ================================================================== TOWN OF FOUNTAIN HILLS, ARIZONA, An Arizona municipal corporation AND PALISADES RESORTS, LLC A Delaware limited liability company Copperwynd Resort Expansion 1 Development Agreement – Fountain Hills - 2017 2896602.12 DEVELOPMENT AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND PALISADES RESORTS, LLC (COPPERWYND RESORT EXPANSION) This Development Agreement (the “Agreement”) is entered into as of March 16, 2017 (the “Effective Date”), by PALISADES RESORTS, LLC, a Delaware limited liability company (“Palisades”), and the TOWN OF FOUNTAIN HILLS, an Arizona municipal corporation (“Town”), which are referred to collectively herein as the “Parties” or individually as a “Party.” RECITALS A. Arizona Revised Statutes § 9-500.05 authorizes Town to enter into a development agreement with a landowner or other person having an interest in real property located in the Town. B. Palisades owns that certain resort property located at 13225 N. Eagle Ridge Drive, Fountain Hills, Arizona, upon which it operates a resort with 32 guest rooms, a restaurant, tennis facilities and a fitness club (the “Existing Resort”). The Existing Resort consists of approximately 16.5 acres and is more particularly described in attached Exhibit A (the “Property”). C. Palisades acquired the Property in February 2015, and currently operates the Existing Resort on the Property. D. Palisades intends to further develop and expand the Existing Resort on the Property to include up to a total of approximately 300 additional rooms to be operated as a branded hotel of a quality consistent with hotels bearing the Mobil Four-Star rating (the “New Hotel”), a pool pavilion, a casual dining restaurant, revisions to tennis courts, a spa expansion, and additional meeting and event space (collectively, the “Project”). The architectural design of the buildings and the quality of the construction will be consistent with the Town’s standards and the Conceptual Site Plan, as described below. E. The Town desires that the Existing Resort be expanded on the Property, and has determined that encouraging the expansion of the Existing Resort pursuant to this Agreement will result in significant planning, economic and other public purpose benefits to the Town and its residents by, among other things (i) the expansion of the Existing Resort in a manner consistent with the Town’s General Plan, (ii) an increase in sales tax revenues to the Town arising from or relating to the expansion of the Existing Resort; and (iii) the creation of new jobs and otherwise enhancing the economic welfare of the residents of the Town. F. In the furtherance of the contemplated expansion of the Existing Resort, the Parties desire for the Town to approve a rezoning of the Property from its current R-5 PUD zoning to Planned Area Development (the “PAD Rezoning”), pursuant to Chapter 23 of the Zoning Ordinance of the Town of Fountain Hills (the “Zoning Ordinance”). G. The Parties understand and acknowledge that the ultimate development of the Project on the Property is an undertaking of such magnitude that Palisades requires assurances from the Town that Palisades will have the ability to complete the development of the Project as contemplated by this Agreement. The Parties further understand and acknowledge that the Copperwynd Resort Expansion 2 Development Agreement – Fountain Hills - 2017 2896602.12 Town seeks assurances from Palisades that Palisades will complete the Project with the New Hotel on the Property in accordance with this Agreement, including the conceptual site plan attached hereto as Exhibit B-1 and incorporated herein by reference (the “Conceptual Site Plan”), in compliance with the PAD Rezoning for the Property, and in accordance with the Town’s ordinances and codes. H. The Parties understand and acknowledge that Palisades contemplates that the Project will be constructed in three phases pursuant to the Phasing Plan attached hereto as Exhibit B-2 and incorporated herein by reference (the “Phasing Plan”). Phase 1 detail, Phase 2 detail and Phase 3 detail are set forth in Exhibit B-3, Exhibit B-4 and Exhibit B-5, respectively, each of which is incorporated herein by reference. Additionally, conceptual elevation details for Phase 1, Phase 2 and Phase 3 are set forth in Exhibit B-6, Exhibit B-7 and Exhibit B-8, respectively, each of which is incorporated herein by reference. I. The Parties understand and acknowledge that this Agreement is a “Development Agreement” within the meaning of and entered into pursuant to the terms of ARIZ. REV. STAT. § 9-500.05, in order to facilitate the property development of the Property by providing for, among other things (i) conditions, terms, restrictions and requirements for the Property by the Town and (ii) other matters related to the Project. The terms of this Agreement will constitute covenants running with the Property as more fully described herein. AGREEMENT NOW THEREFORE, in consideration of the foregoing introduction and recitals, the promises contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which the Parties hereby acknowledge, the Parties hereto agree as follows: 1. Effective Date and Term. This Agreement shall be effective only upon the execution by both Parties and upon approval of the PAD Rezoning by the Town Council of the Town of Fountain Hills (the “Town Council”). Notwithstanding the date upon which this Agreement is executed and the date the Town Council approves the PAD Rezoning, for the purposes of calculating the Term (as defined below) of this Agreement, the Effective Date set forth above shall be deemed the first day of this Agreement. Palisades, its successors and assigns, shall have the right to implement development on the Property in accordance with this Agreement for a period of 10 years from the Effective Date. However, unless terminated by the Town pursuant to Section 9 hereof prior to the expiration of such initial 10-year period, this Agreement may be extended for an additional period of 10 years in the Town Council’s sole direction, at the end of which time (which shall, in the aggregate, be 20 years), this Agreement shall automatically terminate as to the Property without the necessity of any notice, agreement or recording by or between the Parties (the “Term”); provided, however, that provisions of this Agreement that specifically survive the termination of this Agreement shall remain in full force and effect, subject only to the termination provisions herein specifically related thereto; provided further, however, that if Palisades fails to materially fulfill any portion of its obligations as set forth in Section 8 below by the deadline for performance associated with each such obligation, this Agreement shall immediately terminate upon expiration of the applicable cure period without further act by the Town Council. Copperwynd Resort Expansion 3 Development Agreement – Fountain Hills - 2017 2896602.12 2. PAD Rezoning; Conceptual Site Plan. 2.1 PAD Rezoning. Pursuant to the PAD Rezoning, dated March 16, 2017, and for the duration of this Agreement, the Town shall be restricted from changing, restricting or limiting the rights of Palisades or its successors in interest and assigns to develop the Property in accordance with this Agreement and the PAD Rezoning. The Parties acknowledge and agree that approval of the PAD Rezoning by the Town Council shall be a condition precedent to the effectiveness of this Agreement and to the Parties’ respective rights and obligations hereunder. Nothing in this Section 2.1 or in this Agreement shall affect the Town Council’s absolute discretion to approve or deny the proposed PAD Rezoning or any future amendments thereto. 2.2 Conceptual Site Plan. The Town hereby approves the Conceptual Site Plan attached hereto as Exhibit B-1. Palisades acknowledges and agrees that such Conceptual Site Plan is intended to convey the overall land-use plan for the Project for the purposes of this Agreement. The Conceptual Site Plan includes, at a minimum: the layout, height, and percentage mix of uses for all buildings on the Project site; the locations and number of spaces, loading areas and basic site circulation of all Project parking areas; and architectural renderings showing general color pallets and conceptual building design. 2.3 Phasing Plan. Palisades intends to construct the Project in three phases, as shown on Exhibit B-2. Specifically, Palisades intends that Phase 1 shall include design and construction of approximately the first 128 additional rooms and approximately 9,800 square feet of convention space, as shown on Exhibit B-3; Phase 2 shall include design and construction of up to 60 additional rooms, as shown on Exhibit B-4; and Phase 3 shall include design and construction of up to 112 additional rooms, as shown on Exhibit B-5. Uses for the additional supporting areas to be added include a pool pavilion, a casual dining restaurant, possible tennis courts, a possible spa expansion, and additional meeting and event space. The Parties agree that such additional supporting areas shall be included in Phase 1, Phase 2 or Phase 3 substantially as depicted on Exhibit B-3, Exhibit B-4 and Exhibit B-5, respectively. Palisades shall seek approval of the Town Council for any “substantial alteration” of the phasing as appropriate to support the build-out of the additional guest rooms and as set forth in Exhibit B-3, Exhibit B-4 and Exhibit B-5, which approval of such substantial alterations may be withheld for any reason. For purposes of this Section 2.3, a “substantial alteration” means (A) a deviation of more than 20% of the number of guest rooms for any phase or (B) a change in phase or a change in size of more than 20% of total square feet for the convention space. The Parties agree that Palisades shall not be required to submit for approval of the Town Council any alteration to the phasing depicted herein that is not a substantial alteration, but such changes shall be reflected on revised exhibits to this Agreement. Any modifications to the phasing plan shall be attached hereto as substitute exhibits. The Town hereby approves: (A) the Phasing Plan attached hereto as Exhibit B-2, and (B) the phasing detail for Phase 1, Phase 2 and Phase 3, as set forth in Exhibit B-3, Exhibit B-4 and Exhibit B-5, respectively. 2.4 Consistency with Exhibits. The Town hereby approves the Conceptual Elevation Detail for Phase 1, Phase 2 and Phase 3, attached hereto as Exhibit B-6, Exhibit B-7 and Exhibit B-8 respectively. Palisades’ development of the Project must be consistent with the conceptual elevations in Exhibit B-6, Exhibit B-7 and Exhibit B-8. Any substantial change to the elevation details in Exhibit B-6, Exhibit B-7 and Exhibit B-8 must have prior Town Council approval. Copperwynd Resort Expansion 4 Development Agreement – Fountain Hills - 2017 2896602.12 2.5 New Hotel Requirements. The New Hotel shall be of a quality equivalent to a rating of not less than four stars by the Mobil Travel Guide with a quality of materials and finishes consistent with the renderings included in Exhibit B-6, Exhibit B-7 and Exhibit B-8, including conference facilities, on-site food service, 24-hour room service, high-speed internet services and other amenities typically offered by hotels bearing the Mobil Four-Star rating (the “Hotel Quality Requirements”). Palisades has specifically committed to the Town that the New Hotel shall meet the Hotel Quality Requirements. If, at any time during the Term, the New Hotel ceases operation entirely or ceases operating under its then-current brand (such date is referred to herein as a “Cessation Date”), Palisades, its successors and assigns, shall (i) immediately notify the Town of such discontinued operation, (ii) immediately commence securing a replacement hotel meeting the Hotel Quality Requirements (the “Replacement Hotel”), and (iii) shall secure such Replacement Hotel and such Replacement Hotel operator shall open the Replacement Hotel (under the name of such hotel chain as shall be acceptable to the Town) for business within 90 days from the Cessation Date. 3. Height Requirements. The PAD Rezoning is intended to modify the requirements of Section 16.11 of the Zoning Ordinance to allow for a portion of the buildings in the Project, as depicted in greater detail in the Phase 1 Conceptual Elevation Detail in Exhibit B-6, the Phase 2 Conceptual Elevation Detail in Exhibit B-7, and the Phase 3 Conceptual Elevation Detail in Exhibit B-8, to exceed the height limitation set forth in Section 16.11, but in no event shall any portion of any of the buildings in the Project exceed 50’ in height as measured from existing grade. Except as specifically modified in the PAD Rezoning, all height requirements of Section 16.11 of the Zoning Ordinance shall apply. 4. Shared Parking. Parking shall be provided on the basis of that certain Copperwynd Resort Expansion Parking Study date stamped March 5, 2017, by Kelly S. Fletcher of CivTech, Inc., as commissioned by Palisades (the “Parking Demand Study”) and attached hereto as Exhibit C. The Parties acknowledge and agree that parking will be provided according to Section 18.11(B) of the Town’s Zoning Ordinance on a Project-wide basis; provided that such requirements shall take into account shared parking throughout the Resort, as identified in the Parking Demand Study. Because trends in vehicle trips are changing rapidly and will likely continue to do so, the Parties further acknowledge and agree that Palisades shall have the right to commission, and submit for approval of the Town Council, revised parking studies for future phases of the Project; the Town Council may approve or deny such revised parking studies in its sole discretion. Palisades shall provide not less than 199 parking spaces for Phase 1 of the Project, 251 parking spaces for Phase 2 of the Project, and 347 parking spaces for Phase 3 of the Project (all figures cumulative), pursuant to the Parking Demand Study attached hereto as Exhibit C. The Town’s approval of the modified parking requirements is conditioned upon Palisades implementing the interim parking improvements shown with each phase. 5. Traffic. Palisades engaged CivTech, Inc. to undertake a traffic impact analysis to assess (i) the Project’s anticipated impacts on traffic circulation in the area surrounding the Project, and particularly Eagle Ridge Drive, and (ii) Palisades’ proposed mitigation of those impacts (the “Traffic Study”), which Traffic Study is attached hereto as Exhibit D. Because trends in vehicle trips are changing rapidly and will likely continue to do so, the Parties further acknowledge and agree that Palisades shall have the right to commission, and submit for approval of the Town, revised traffic studies for future phases of the Project; the Town Council may approve or deny such revised traffic studies in its sole discretion. The Parties acknowledge and agree that the mitigation proposed in the Traffic Study for each phase of the Project is necessary and shall be completed according to the Traffic Study. Palisades agrees that its mitigation shall include, prior to issuance of a building permit for any Phase 3 improvements, (i) Copperwynd Resort Expansion 5 Development Agreement – Fountain Hills - 2017 2896602.12 construction of turn pockets and traffic signal conduit as deemed necessary by the Town Engineer for the intersection of Palisades Boulevard and Eagle Ridge Drive, and (ii) contribution to the Town of Palisades’ pro-rata share of the cost of the traffic signal for the intersection of Palisades Boulevard and Eagle Ridge Drive. 6. Public Art Requirement. Palisades shall provide the required contribution to the public art required for the Project as set forth in Subsection 19.05(I) of the Zoning Ordinance (the “Public Art Requirement”). If Palisades intends to provide publicly-accessible art on the Project site that conforms to the Public Art Requirement, such public art proposal must be submitted to the Town for confirmation of value by the Town. 7. Conditions to Town’s Obligations. The Town shall be required to take actions contemplated by this Agreement only during such time as Palisades is fully performing its obligations as set forth in Sections 8.1 – 8.9 below. 8. Palisades Responsibilities. Palisades shall perform all of its duties as set forth in this Section 8 and according to the “Schedule of Performance” attached hereto as Exhibit E and incorporated herein by reference. 8.1 Zoning. Palisades agrees to develop the Project in accordance with the PAD Rezoning, dated March 16, 2017, and applicable to the Property. 8.2 Construction Documents. Palisades shall prepare and submit to the Town for review and approval the construction documents for the Project, in substantial conformity to (A) the approved PAD Rezoning, (B) the Conceptual Site Plan set forth in Exhibit B-1, (C) the Phasing Plan and Phasing Detail set forth in Exhibit B-2, Exhibit B-3, Exhibit B-4 and Exhibit B-5, (D) the Conceptual Elevation Detail for each phase set forth in Exhibit B-6, Exhibit B-7 and Exhibit B-8, (E) the Parking Demand Study set forth in Exhibit C, and (F) the Town ordinances and codes. 8.3 Building Permits. Palisades shall secure all grading, building and construction permits that may be required by the Town and any other governmental agency prior to starting any site grading or construction activities on the Property. The Town acknowledges and agrees that if Palisades’ submittals for building permits meet the substantial conformity requirement set forth in Section 8.2 hereof and all Town codes, then the Development Services Director shall grant administrative zoning approval of the submittal, and the permits for the construction of the Project pursuant to the submittal will be issued in accordance with the Town’s codes. 8.4 Construction on Property. Developer shall submit complete Construction Documents for the phases of the Project, receive building permits for vertical construction of the phases of the Project according to such construction documents and commence construction on the Project in accordance with the Schedule of Performance. For the purposes of this subsection, “commencement of construction” shall mean the mobilization of sufficient construction resources to the Property to complete the phases of the Project according to the Schedule of Performance and the Town’s codes and ordinances. 8.5 Third Party Inspection. Palisades acknowledges and agrees and understands that the Town’s resources may prevent plan review and inspection services to occur within the review time period desired by Palisades in connection with the Project, in which case the Town shall retain an outside consultant to perform such tasks on the Town’s behalf. In Copperwynd Resort Expansion 6 Development Agreement – Fountain Hills - 2017 2896602.12 such event, Palisades agrees to pay the direct costs incurred by the Town resulting from its contract for the services of an outside firm to provide plan review and inspection in connection with the Project; provided that the Town shall perform all plan review and inspections related to fire safety and planning and zoning; the Fountain Hills Sanitary District will perform all plan review and inspections related to sanitary sewer; and EPCOR will perform all plan review and inspections related to the Project’s potable water supply. If a third-party plan review and inspection firm is retained, Palisades shall only be responsible to pay the Town 10% of the Town’s then-current building permit fee to cover the cost of the Town’s planning and zoning/landscape plan review and inspection; the balance of the building permit fee is deemed paid when Palisades fulfills its obligations to pay the third-party plan review and inspection fees. Palisades shall pay the Town 100% of the cost of the plan review and inspection fees related to fire safety. 8.6 Phased Development. The Town acknowledges that Palisades plans to develop the Property in three phases generally set forth in Exhibit B-3, Exhibit B-4 and Exhibit B-5. The Town will review and approve the additional public infrastructure needs of each phase, beyond what currently exists on the Property (the “Public Infrastructure Improvements”) as part of its approval of the site plan and construction documents of each phase, and as recommended based on applicable infrastructure studies commissioned in connection therewith (such studies, which shall include without limitation the Traffic Study, are referred to herein as the “Infrastructure Studies”). Palisades shall construct or cause to be constructed and installed any and all portions of the Public Infrastructure Improvements. The Town may require that Palisades construct portions of the Public Infrastructure Improvements not directly related to the phase being constructed by Palisades only if the Town Engineer reasonably concludes such Public Infrastructure Improvements are required to protect public health, safety or welfare. 8.7 Infrastructure Assurance. Palisades shall provide the Town with an irrevocable letter of credit in such form and amount as required by the Town Attorney to ensure that the installation of the Public Infrastructure Improvements necessary for development of the Property or other Public Infrastructure Improvements directly related to any building permit or permits will be completed (the “Public Infrastructure Assurances”). The Public Infrastructure Assurances will be required for a phase of the Project at the time permits are requested for any construction on that phase of the Project. 8.8 Dedication and Acceptance. Upon completion by Palisades of any Public Infrastructure Improvements, Palisades shall promptly (A) notify the Town in writing of the presumptive completion of such Public Infrastructure Improvement, and (B) dedicate to the Town, at no cost to the Town, such Infrastructure Improvements free and clear of all liens and encumbrances and in accordance with Town standards applicable to such dedication and acceptance. So long as such Public Infrastructure Improvements are constructed in accordance with Town standards, as verified by the inspection of the completed Public Infrastructure Improvements by the Town, all punch list items have been completed and the Public Infrastructure Improvements are free of any liens and encumbrances, the Town shall accept the Public Infrastructure Improvements. The Town shall notify Palisades, in writing, of the Town’s acceptance of the Public Infrastructure Improvements. Acceptance of any Public Infrastructure Improvement is expressly conditioned upon Palisades providing a warranty for such Public Infrastructure Improvement consistent with the Town standards and as provided in Section 8.9 below. Subject to the limitation set forth in Section 8.9 below, after acceptance of any Public Infrastructure Improvements, the Town thereafter shall maintain, repair and operate such Public Infrastructure Improvements at its own cost, which obligation shall survive any termination of this Agreement. Palisades, at no cost to the Town, shall dedicate, convey or obtain, as Copperwynd Resort Expansion 7 Development Agreement – Fountain Hills - 2017 2896602.12 applicable, all rights-of-way, rights of entry, easements and/or other use rights, wherever located, as useful or necessary for the operation and maintenance of the Public Infrastructure Improvements as required by the Town. 8.9 Warranty. Palisades or its assignee shall give to the Town a one-year warranty for all Public Infrastructure Improvements or other such warranty as required by the Town Engineer, such warranty shall begin on the date that the Town accepts the Public Infrastructure Improvements as provided in this Section 8.9. Any material deficiencies in material or workmanship identified by Town staff during the one-year warranty period shall be brought to the attention of Palisades or its assignee that provided the warranty, which shall promptly remedy or cause to be remedied such deficiencies to the reasonable satisfaction of the Town. Continuing material deficiencies in a particular portion of the Public Infrastructure Improvements shall be sufficient grounds for the Town to require (A) an extension of the warranty for an additional one-year period, and (B) the proper repair of or the removal and reinstallation of, that portion of the Public Infrastructure Improvements that is subject to such continuing deficiencies. Regardless of whether the applicable warranty period has expired, Palisades agrees to repair any damage to the Public Infrastructure Improvements caused by Palisades’ construction activities on the Property in respect of the Project. Nothing contained herein shall prevent the Town or Palisades from seeking recourse against any other third party for damage to the Public Infrastructure Improvements caused by such third party. 9. Default. If either Party fails to perform any obligation, and such Party fails to cure its nonperformance within 60 days after notice of nonperformance is given by the non- defaulting Party (the “Cure Period”), such Party will be in default. In the event of such default, the non-defaulting Party may terminate this Agreement and will have all remedies that are available to it at law or in equity including, without limitation, the remedy of specific performance. If the nature of the defaulting Party’s nonperformance is such that it cannot reasonably be cured within 60 days, then the defaulting Party will have such additional periods of time as part of the Cure Period as may be reasonably necessary under the circumstances, provided the defaulting Party immediately commences to cure its nonperformance and thereafter diligently continues to completion the cure of its nonperformance. In no event shall any such Cure Period exceed 120 days. 10. General. 10.1 Notices and Requests. Any notice or other communication required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given if: (A) delivered to the Party at the addresses set forth below; (B) deposited in the U.S. Mail, registered or certified, return receipt requested, to the address set forth below; or (C) given to a recognized and reputable overnight delivery service, to the address set forth below: If to Town: Town of Fountain Hills 16705 East Avenue of the Fountains. Fountain Hills, Arizona 85268 Attn: Town Manager With a copy to: GUST ROSENFELD, P.L.C. One East Washington, Suite 1600 Phoenix, Arizona 85004-2553 Attn: Andrew J. McGuire Copperwynd Resort Expansion 8 Development Agreement – Fountain Hills - 2017 2896602.12 If to Palisades: Palisades Resorts, LLC 13225 N. Eagle Ridge Drive Fountain Hills, Arizona 85268 Attn: William D. Hinz II With a copy to: ROSE LAW GROUP PC 7144 E. Stetson Drive, Suite 300 Scottsdale, Arizona 85251 Attn: Jordan R. Rose or at such other address, and to the attention of such other person or officer, as any Party may designate in writing by notice duly given pursuant to this Section. Notices shall be deemed received: (A) when delivered to the Party; (B) three business days after being placed in the U.S. Mail, properly addressed, with sufficient postage; or (C) the following business day after being given to a recognized overnight delivery service, with the person giving the notice paying all required charges and instructing the delivery service to deliver on the following business day. If a copy of a notice is also given to a Party’s counsel or other recipient, the provisions above governing the date on which a notice is deemed to have been received by a Party shall mean and refer to the date on which the Party, and not its counsel or other recipient to which a copy of the notice may be sent, is deemed to have received the notice. 10.2 Amendment. No amendment or waiver of any provision in this Agreement will be binding (A) on the Town unless and until it has been approved by the Town Council and has become effective or (B) on Palisades unless and until it has been executed by an authorized representative. 10.3 Headings; References. The headings herein are inserted only as a matter of convenience and for reference and in no way define, limit or describe the meaning of any provision or the scope or intent of this Agreement nor in any way affect the terms and provisions hereof. 10.4 Time of the Essence. Time is of the essence with regard to performance under the terms and provisions of this Agreement, and any amendment, modification or revision thereof, with respect to the actions and obligations of each person bound by the terms hereof. 10.5 Attorney’s Fees. If either Party commences an action against the other to interpret or enforce any of the terms of this Agreement or because of the breach by the other Party of any of the terms hereof, the losing Party shall pay to the prevailing Party reasonable attorney’s fees, costs and expenses, including expert witness fees, incurred in connection with the prosecution or defense of such action. For the purpose of this Agreement, the terms “attorney’s fees, costs and expenses” shall mean the fees and expenses of counsel to the Parties hereto, which may include printing, duplicating and other expenses, air freight charges, and fees billed for law clerks, paralegals, librarians and others not admitted to the bar but performing services under the supervision of an attorney. The term “attorneys’ fees, costs and expenses” shall also include, without limitation, all such fees and expenses incurred with respect to appeals, arbitrations and bankruptcy proceedings, and whether or not any action or proceeding is brought with respect to the matter for which said fees and expenses were incurred. Copperwynd Resort Expansion 9 Development Agreement – Fountain Hills - 2017 2896602.12 10.6 Recordation. This Agreement shall be recorded in its entirety in the Maricopa County Recorder’s Office not later than 10 days after it is fully executed by Palisades and the Town. 10.7 Choice of Law, Venue and Attorneys’ Fees. The laws of the State of Arizona shall govern any dispute, controversy, claim or cause of action arising out of or related to this Agreement. The venue for any such dispute shall be Maricopa County, Arizona, and each Party waives the right to object to venue in Maricopa County for any reason. Neither Party shall be entitled to recover any of its attorneys’ fees or other costs from the other Party incurred in any such dispute, controversy, claim, or cause of action, but each Party shall bear its own attorneys’ fees and costs, whether the same is resolved through arbitration, litigation in a court, or otherwise. 10.8 Good Standing; Authority. Each Party represents and warrants that it is duly formed and validly existing under the laws of the State of Arizona with respect to Palisades, or a municipal corporation within Arizona with respect to the Town and that the individuals executing this Agreement on behalf of their respective Party are authorized and empowered to bind the Party on whose behalf each such individual is signing. 10.9 Assignment. The provisions of this Agreement are binding upon and shall inure to the benefit of the Parties, and all of their successors in interest and assigns. The rights and obligations of Palisades under this Agreement may be transferred or assigned, in whole or in part, by written instrument, to any subsequent owner of all or any portion of the Property, without consent from the Town. Notice of any transfer or assignment in accordance with this paragraph shall be provided to the Town within 10 days of such transfer or assignment. If any such transfer occurs within 90 days after the Effective Date, and following such transfer Palisades’ successor or assign requests substantial modifications to this Agreement, Palisades agrees its successor or assign shall be responsible to pay the Town’s legal fees related to the requested changes to this Agreement. 10.10 Third Parties. No term or provision of this Agreement is intended to, or shall be for the benefit of any person or entity not a Party hereto, and no such other person or entity shall have any right or cause of action hereunder. 10.11 No Partnership. None of the terms or provisions of this Agreement shall be deemed to create a partnership between or among the Parties hereto in their respective businesses or otherwise, nor shall it cause them to be considered joint ventures or members of any joint enterprise. Each Party hereto shall be considered a separate owner, and no Party hereto shall have the right to act as an agent for another Party hereto, unless expressly authorized to do so herein or by separate written instrument signed by the Party to be charged. 10.12 Waiver. No delay in exercising any right or remedy shall constitute a waiver thereof, and no waiver of any breach shall be construed as a waiver of any preceding or succeeding breach of the same or any other covenant, or condition of this Agreement. No waiver shall be effective unless it is in writing and is signed by the Party asserted to have granted such waiver. Copperwynd Resort Expansion 10 Development Agreement – Fountain Hills - 2017 2896602.12 10.13 Further Documentation. The Parties agree in good faith to execute such further or additional instruments and documents and to take such further acts as may be necessary or appropriate to fully carry out the intent and purpose of this Agreement. 10.14 Fair Interpretation. The Parties have been represented by counsel in the negotiation and drafting of this Agreement and this Agreement shall be construed according to the fair meaning of its language. The rule of construction that ambiguities shall be resolved against the Party who drafted a provision shall not be employed in interpreting this Agreement. 10.15 Counterparts. This Agreement may be executed in counterparts, each of which shall be an original but all of which shall constitute one and the same instrument. 10.16 Computation of Time. In computing any period of time under this Agreement, the date of the act or event from which the designated period of time begins to run shall not be included. The last date of the period so completed shall be included unless it is a Saturday, Sunday or legal holiday, in which event the period shall run until the end of the next day which is not a Saturday, Sunday or legal holiday. The time for performance of any obligation or taking any action under this Agreement shall be deemed to expire at 5:00 p.m. (local time, Phoenix, Arizona) on the last day of the applicable time period provided herein. 10.17 Conflict of Interest. Pursuant to ARIZ. REV. STAT. §§ 38-503 and 38-511, no member, official or employee of the Town shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official or employee participate in any decision relating to this Agreement which affects his or her personal interest or the interest of any corporation, partnership or association in which he or she is, directly or indirectly, interested. This Agreement is subject to cancellation pursuant to the terms of ARIZ. REV. STAT. § 38-511. 10.18 Severability. Every provision of this Agreement is and will be construed to be a separate and independent covenant. If any provision in this Agreement or the application of the same is, to any extent, found to be invalid or unenforceable, the remainder of this Agreement or the application of that provision to circumstances other than those to which it is invalid or unenforceable will not be affected by that invalidity or unenforceability. Each provision in this Agreement will be valid and will be enforced to the extent permitted by law and the Parties will negotiate in good faith for such amendments of this Agreement as may be necessary to achieve its intent, notwithstanding such invalidity or unenforceability. 10.19 Covenant of Good Faith. In exercising their rights and in performing their obligations pursuant to this Agreement, the Parties will cooperate with one another in good faith to ensure the intent of this Agreement can be attained. 10.20 Estoppel Certificate. Upon Palisades’ written request, the Town will execute, acknowledge and deliver to Palisades and all parties identified by Palisades, including without limitation assignees, transferees, tenants, purchasers, investors, lenders, and mortgagees, a written statement certifying (A) that this Agreement is unmodified and in full force and effect (or, if there have been modifications , that this Agreement is in full force and effect, as modified, and stating modifications) and (B) whether there are any existing breaches or defaults by Palisades then known to the Town under this Agreement, and if so, specifying the same. The Town will deliver the statement to Palisades or such requesting party within 15 days after request. The Town acknowledges that any such assignee, transferee, tenant, purchaser, investor, lender, or mortgagee may rely upon such statement as true and correct. Copperwynd Resort Expansion 11 Development Agreement – Fountain Hills - 2017 2896602.12 10.21 Runs with the Land. The covenants, conditions and restrictions in this Agreement create equitable servitudes upon every portion of the Property in favor of the Town. These covenants, conditions and restrictions run with the land and shall be prior, superior and non-subordinated to any and all encumbrances placed against the Property after this Agreement is recorded. 10.22 Exhibits. All exhibits attached hereto are incorporated herein by this reference as though fully set forth herein. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. TOWN: THE TOWN OF FOUNTAIN HILLS, an Arizona municipal corporation Linda M. Kavanagh, Mayor ATTEST: Bevelyn J. Bender. Town Clerk ACKNOWLEDGEMENT STATE OF ARIZONA ) ) ss. County of Maricopa ) On ________________________, 2017, before me personally appeared Linda M. Kavanagh, the Mayor of the TOWN OF FOUNTAIN HILLS, an Arizona municipal corporation, whose identity was proven to me on the basis of satisfactory evidence to be the person who she claims to be, and acknowledged that she signed the above document on behalf of the Town of Fountain Hills. Notary Public (Affix notary seal here) [SIGNATURES CONTINUE ON FOLLOWING PAGE] Copperwynd Resort Expansion 12 Development Agreement – Fountain Hills - 2017 2896602.12 Palisades: PALISADES RESORTS, LLC, a Delaware limited liability company By: Crown Rock Ventures LLC, an Arizona limited liability company By: William D. Hinz II, Manager ACKNOWLEDGEMENT STATE OF ARIZONA ) ) ss. County of Maricopa ) On ________________________, 2017, before me personally appeared William D. Hinz II, the Manager of Crown Rock Ventures, LLC, an Arizona limited liability company, as Manager of PALISADES RESORTS, LLC, a Delaware limited liability company, whose identity was proven to me on the basis of satisfactory evidence to be the person who he claims to be, and acknowledged that he signed the above document on behalf of Palisades Resorts, LLC. Notary Public (Affix notary seal here) Copperwynd Resort Expansion Development Agreement – Fountain Hills - 2017 2896602.12 EXHIBIT A TO DEVELOPMENT AGREEMENT FOR COPPERWYND RESORT EXPANSION BETWEEN THE TOWN OF FOUNTAIN HILLS AND PALISADES RESORTS, LLC [Legal Description of the Property] See following pages. 7154 East Stetson Drive | 4th Floor | Scottsdale, AZ 85251 | 480.990.2800 | allenphilp.com Copperwynd Resort Project Address: Project Number: Issue Date: 13225 N. Eagle Ridge Dr. Fountain Hills, AZ AP1618 02/16/2017 Conceptual Planning Package Existing Conditions 160’80’40’20’0’ Location Plan Copperwynd Resort Expansion Development Agreement – Fountain Hills - 2017 2896602.12 EXHIBIT B-1 TO DEVELOPMENT AGREEMENT FOR COPPERWYND RESORT EXPANSION BETWEEN THE TOWN OF FOUNTAIN HILLS AND PALISADES RESORTS, LLC [Conceptual Site Plan for the Property] See following pages. East Stetson Drive | 4th Floor | Scottsdale, AZ 85251 | 480.990.2800 | allenphilp.com Copperwynd Resort Project Address: Project Number: Issue Date: 13225 N. Eagle Ridge Dr. Fountain Hills, AZ AP1618 02/16/2017 Conceptual Planning Package Overall Site Plan | Phases 1, 2 & 3 160’80’40’20’0’ Room Wing +/-100 keys New Pool Area Casual Dining Tennis Parking Structure Event Arrival Service Entrance Tennis Room Wing North 128 keys Existing Clubhouse To Remain +/- 60 keys Membership Expansion Facilities Existing Function Lawn Arrival Arroyo Garden Member Parking Member Entry Access Drive Existing Pool Bike Outfitter / Valet Enhanced Landscape Amenities Parking Data On Site Parking: 26 spaces Located throughout the site Garage: 321 spaces (+ 40 valet) Level B1 104 spaces Level 1 85 spaces + 6 valet Level 2 104 spaces + 6 valet Top (Plaza Deck): 16 spaces (+ large event tennis parking = 40 additional spaces) Overall Site Total : 347 spaces (+40 valet on tennis available) Meeting / Banquet Space 9,000 sf +/- of behind door meeting space Copperwynd Resort Expansion Development Agreement – Fountain Hills - 2017 2896602.12 EXHIBIT B-2 TO DEVELOPMENT AGREEMENT FOR COPPERWYND RESORT EXPANSION BETWEEN THE TOWN OF FOUNTAIN HILLS AND PALISADES RESORTS, LLC [Phasing Plan for the Property] See following pages. 7154 East Stetson Drive | 4th Floor | Scottsdale, AZ 85251 | 480.990.2800 | allenphilp.com Copperwynd Resort Project Address: Project Number: Issue Date: 13225 N. Eagle Ridge Dr. Fountain Hills, AZ AP1618 02/16/2017 Conceptual Planning Package Phasing Plan Phase 1 Room Wing 128 keys and site amenities Existing Clubhouse To Remain Phase 1 Convention Space Phase 3 Room Wing +/-100 keys Parking Garage & Pool Area Phase 2 +/-60 keys Membership Expansion Facilities 160’80’40’20’0’ Copperwynd Resort Expansion Development Agreement – Fountain Hills - 2017 2896602.12 EXHIBIT B-3 TO DEVELOPMENT AGREEMENT FOR COPPERWYND RESORT EXPANSION BETWEEN THE TOWN OF FOUNTAIN HILLS AND PALISADES RESORTS, LLC [Phase 1 Detail for the Property] See following pages. Copperwynd Resort Expansion Development Agreement – Fountain Hills - 2017 2896602.12 EXHIBIT B-4 TO DEVELOPMENT AGREEMENT FOR COPPERWYND RESORT EXPANSION BETWEEN THE TOWN OF FOUNTAIN HILLS AND PALISADES RESORTS, LLC [Phase 2 Detail for the Property] See following pages. 7154 East Stetson Drive | 4th Floor | Scottsdale, AZ 85251 | 480.990.2800 | allenphilp.com Copperwynd Resort Project Address: Project Number: Issue Date: 13225 N. Eagle Ridge Dr. Fountain Hills, AZ AP1618 02/28/2017 Conceptual Planning Package Phase Two Site Plan Parking Yield: 211 spaces on Grade +40 valet spaces special event parking Total Parking Provided: 251 spaces 160’80’40’20’0’ Convention Space 9,000 sf +/- of behind door meeting space Tennis Phase 1 Room Wing 128 keys and site amenities Existing Clubhouse To Remain Phase 1 Phase 2 +/-60 keys Membership Expansion Facilities Expansion & Workforce Parking Guest Parking Guest Parking Bike Outfitter / Valet Member Entry Chapel Valet Copperwynd Resort Expansion Development Agreement – Fountain Hills - 2017 2896602.12 EXHIBIT B-5 TO DEVELOPMENT AGREEMENT FOR COPPERWYND RESORT EXPANSION BETWEEN THE TOWN OF FOUNTAIN HILLS AND PALISADES RESORTS, LLC [Phase 3 Detail for the Property] See following pages. 7154 East Stetson Drive | 4th Floor | Scottsdale, AZ 85251 | 480.990.2800 | allenphilp.com Copperwynd Resort Project Address: Project Number: Issue Date: 13225 N. Eagle Ridge Dr. Fountain Hills, AZ AP1618 02/16/2017 Conceptual Planning Package Phasing Plan Phase 1 Room Wing 128 keys and site amenities Existing Clubhouse To Remain Phase 1 Convention Space Phase 3 Room Wing +/-100 keys Parking Garage & Pool Area Phase 2 +/-60 keys Membership Expansion Facilities 160’80’40’20’0’ Copperwynd Resort Expansion Development Agreement – Fountain Hills - 2017 2896602.12 EXHIBIT B-6 TO DEVELOPMENT AGREEMENT FOR COPPERWYND RESORT EXPANSION BETWEEN THE TOWN OF FOUNTAIN HILLS AND PALISADES RESORTS, LLC [Phase 1 Conceptual Elevation Detail] See following pages. East Stetson Drive | 4th Floor | Scottsdale, AZ 85251 | 480.990.2800 | allenphilp.com Copperwynd Resort Project Address: Project Number: Issue Date: 13225 N. Eagle Ridge Dr. Fountain Hills, AZ AP1618 02/16/2017 Conceptual Planning Package Existing Hotel Wing & Clubhouse Proposed Phase 1 Hotel Wing & Clubhouse Hotel Arrival Phase 1 Massing Imagery East Stetson Drive | 4th Floor | Scottsdale, AZ 85251 | 480.990.2800 | allenphilp.com Copperwynd Resort Project Address: Project Number: Issue Date: 13225 N. Eagle Ridge Dr. Fountain Hills, AZ AP1618 02/16/2017 Conceptual Planning Package Phase 1 Massing Imagery Arrival Looking North Convention Space Arrival Guest Wing Looking South East Stetson Drive | 4th Floor | Scottsdale, AZ 85251 | 480.990.2800 | allenphilp.com Copperwynd Resort Project Address: Project Number: Issue Date: 13225 N. Eagle Ridge Dr. Fountain Hills, AZ AP1618 02/16/2017 Conceptual Planning Package Phase 1 Massing Imagery East Facing Rooms West Elevation East Elevation Copperwynd Resort Expansion Development Agreement – Fountain Hills - 2017 2896602.12 EXHIBIT B-7 TO DEVELOPMENT AGREEMENT FOR COPPERWYND RESORT EXPANSION BETWEEN THE TOWN OF FOUNTAIN HILLS AND PALISADES RESORTS, LLC [Phase 2 Conceptual Elevation Detail] East Stetson Drive | 4th Floor | Scottsdale, AZ 85251 | 480.990.2800 | allenphilp.com Copperwynd Resort Project Address: Project Number: Issue Date: 13225 N. Eagle Ridge Dr. Fountain Hills, AZ AP1618 02/16/2017 Conceptual Planning Package Phase 2 Massing Imagery East Side from Lawn West Elevation East Elevation Copperwynd Resort Expansion Development Agreement – Fountain Hills - 2017 2896602.12 EXHIBIT B-8 TO DEVELOPMENT AGREEMENT FOR COPPERWYND RESORT EXPANSION BETWEEN THE TOWN OF FOUNTAIN HILLS AND PALISADES RESORTS, LLC [Phase 3 Conceptual Elevation Detail] East Stetson Drive | 4th Floor | Scottsdale, AZ 85251 | 480.990.2800 | allenphilp.com Copperwynd Resort Project Address: Project Number: Issue Date: 13225 N. Eagle Ridge Dr. Fountain Hills, AZ AP1618 02/16/2017 Conceptual Planning Package Phase 3 Massing Imagery West Elevation Room Wing Above Conference Southwest Site Corner Copperwynd Resort Expansion Development Agreement – Fountain Hills - 2017 2896602.12 EXHIBIT C TO DEVELOPMENT AGREEMENT FOR COPPERWYND RESORT EXPANSION BETWEEN THE TOWN OF FOUNTAIN HILLS AND PALISADES RESORTS, LLC [Parking Study] See following pages. PARKING STUDY ON FILE WITH THE TOWN CLERK Copperwynd Resort Expansion Development Agreement – Fountain Hills - 2017 2896602.12 EXHIBIT D TO DEVELOPMENT AGREEMENT FOR COPPERWYND RESORT EXPANSION BETWEEN THE TOWN OF FOUNTAIN HILLS AND PALISADES RESORTS, LLC [Traffic Study] See following pages. TRAFFIC STUDY ON FILE WITH THE TOWN CLERK Copperwynd Resort Expansion Development Agreement – Fountain Hills - 2017 2896602.12 EXHIBIT E TO DEVELOPMENT AGREEMENT FOR COPPERWYND RESORT EXPANSION BETWEEN THE TOWN OF FOUNTAIN HILLS AND PALISADES RESORTS, LLC [Schedule of Performance] See following page. Copperwynd Resort Expansion Development Agreement – Fountain Hills - 2017 2896602.12 SCHEDULE OF PERFORMANCE Deadline to Perform Task From Effective Date of Agreement Task/Obligation Phase 1 – 128 Room Expansion 12 Months Developer to have submitted Site Plan and Construction Documents for Phase 1 improvements, including Public Infrastructure Improvements. 18 Months Developer to have begun construction of Phase 1 improvements. 36 Months Developer to have completed construction of Phase 1 improvements. Developer to have completed Public Infrastructure Improvements for Phase 1. Phase 2 – 60 Room Expansion 60 Months Developer to have submitted Site Plan and Construction Documents for Phase 2 improvements, including Public Infrastructure Improvements. 72 Months Developer to have completed construction of Phase 2 improvements. Developer to have completed Public Infrastructure Improvements for Phase 2. Phase 3 – 112 Room Expansion 12 Months prior to the expiration of the term of this Agreement Developer to have submitted Site Plan and Construction Documents for Phase 3 improvements, including Public Infrastructure Improvements. On or prior to the expiration of the term of this Agreement Developer to have completed construction of Phase 3 improvements. Developer to have completed Public Infrastructure Improvements for Phase 3. CopperWynd Resort and Club Planned Area Development Town of Fountain Hills March 6,2017 Owner: Palisades Resorts,LLC 13225 North Eagle Ridge Drive Fountain Hills,Arizona 85268 Applicant: Jordan Rose Rose Law Group pc 7144 East Stetson Drive,Suite 300 Scottsdale,Arizona 85251 A P P R O V E D Tovw&a^oimtaki Hills 2911591.1 ORDINANCE 17-04 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, AMENDING THE TOWN OF FOUNTAIN HILLS OFFICIAL ZONING DISTRICT MAP FOR APPROXIMATELY 16.5 ACRES LOCATED AT 13225 NORTH EAGLE RIDGE DRIVE IN FOUNTAIN HILLS, ARIZONA, AS SHOWN IN CASE NO. Z2017-02, FROM R-5 PUD (MULTI-FAMILY RESIDENTIAL) TO PLANNED AREA DEVELOPMENT (COPPERWYND PAD). WHEREAS, the Mayor and Council of the Town of Fountain Hills (the “Town Council”) desires to amend the Town of Fountain Hills Official Zoning District Map (the “Zoning Map”) pursuant to ARIZ. REV. STAT. § 9-462.04, to change the zoning designation for an approximately 16.5 acre parcel of real property at 13225 North Eagle Ridge Drive in Fountain Hills, Arizona, from R-5 PUD (Multi-Family Residential) to Planned Area Development (Copperwynd PAD) (the “Zoning Map Amendment”); and WHEREAS, the Zoning Map Amendment proposed by this Ordinance is consistent with the Fountain Hills General Plan 2010, as amended; and WHEREAS, all due and proper notices of public hearings on the Zoning Map Amendment to be held before the Town of Fountain Hills Planning and Zoning Commission (the “Commission”) and the Town Council were given in the time, form, substance and manner provided by ARIZ. REV. STAT. § 9-462.04; and WHEREAS, the Commission held a public hearing on March 9, 2017, on the Zoning Map Amendment, after which the Commission recommended approval; and WHEREAS, the Town Council held an additional public hearing regarding the Zoning Map Amendment on March 16, 2017; and WHEREAS, in accordance with Article II, Sections 1 and 2 of the Arizona Constitution, the Town Council has considered the individual property rights and personal liberties of the residents of the Town before adopting this Ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. The recitals above are hereby incorporated as if fully set forth herein. SECTION 2. The approximately 16.5 acre parcel of real property generally located at 13225 North Eagle Ridge Drive, Fountain Hills, Arizona, as more particularly described and depicted on Exhibit A, attached hereto and incorporated herein by reference, is hereby rezoned from R-5 PUD (Multi-Family Residential) to PAD (Copperwynd PAD), subject to (i) the Town’s adopted codes, requirements, standards and regulations for property zoned L-3 (Lodging Zoning 2911591.1 2 District), except as specifically modified by the Copperwynd PAD document dated March 6, 2017, as included in Case No. Z2017-02 and (ii) the following stipulation: 1. No site work or construction activities may be undertaken until after this Ordinance becomes effective according to Arizona law. SECTION 3. If any provision of this Ordinance is for any reason held by any court of competent jurisdiction to be unenforceable, such provision or portion hereof shall be deemed separate, distinct and independent of all other provisions and such holding shall not affect the validity of the remaining portions of this Ordinance. SECTION 4. The Mayor, the Town Manager, the Town Clerk and the Town Attorney are hereby authorized and directed to take all steps necessary to carry out the purpose and intent of this Ordinance. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona, March 16, 2017. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: Linda M. Kavanagh, Mayor Bevelyn J. Bender, Town Clerk REVIEWED BY: APPROVED AS TO FORM: Grady E. Miller, Town Manager Andrew J. McGuire, Town Attorney 2911591.1 EXHIBIT A TO ORDINANCE 17-04 [Legal Description and Map of the Property] See following page. 7154 East Stetson Drive | 4th Floor | Scottsdale, AZ 85251 | 480.990.2800 | allenphilp.com Copperwynd Resort Project Address: Project Number: Issue Date: 13225 N. Eagle Ridge Dr. Fountain Hills, AZ AP1618 02/16/2017 Conceptual Planning Package Existing Conditions 160’80’40’20’0’ Location Plan 03-07 •17A10: 18 RCVD March 8,2017 Town of Fountain Hills Planning & Zoning Commission 16705 E.Avenue of the Fountains Fountain Hills,AZ 85268 RE:March 9,2017,Planning &Zoning Commission Agenda-PUBLIC HEARING to receive comments on ORDINANCE #17-04, a text amendment tothe Town of Fountain Hills Zoning Map.If adopted,the amendment would rezone approximately 16.5 acres at 13225 N.Eagle Ridge Drive (Copperwynd Resort),from "R-5 PUD"to the "Copperivynd PAD"zoning district Case Z 2017-02 Dear Chairman Archambau.lt,Vice-Chair Mikolajczyk,Commissioner Hansen, Commissioner Jones, Commissioner Ovvers,Commissioner Dabrowski, Commissioner Dempster: The Board of Directors of the Fountain Hills Chamber of Commerce submits this letterinsupportof the proposed expansion of CoppcrWynd Resort and recommend approval ofa PAD forits development. We agree with the statements of Bill Hinz,Owner/Operator,who believes the S100 million dollar project will support the Town of Fountain Hills through the following: •Additional taxon room revenue above and beyondthe sales tax.Preliminary projections show an increased tax impact to the Town of Fountain Hills from Si60,000 in bed tax revenue for 32 rooms last year to an estimated S1,650,000.00for300 roomsby Phase Three.'This increase in revenue to the Town comes at a critical time to assist with funding projectedbudget shortfalls. •CoppcrWynd Resort on the national and international resort stage will make Fountain Hills a resort town in the same company as Paradise Valley,Scottsdale and Phoenix.Tic Tensof thousandsof additionalannual Guests will shop in the stores,dine in the restaurants and frequent Fountain Hills businesses.Once a guest comes tothe resort,they will want to come back and hopefully,live in this edible community. We encourage youtosupport this project by approving the PAD and allowing it to move forward. Sincerely, Scort Soldat-Valenzuela President/CEO FOUNTAIN HILLS Board of Directors Paul Perreault Jr.,Chair First Financial Equity Corporation Christopher Siino, Vice-Chair Owner,Siino Design Audrie Ouellette,Secretary Owner,A & H Pizza Companies,LLC/dba Little Caesars Jodie Winters,Treasurer Nova Home Loans Colin Homing,Immediate Past Chair UMB Boe James VFW Post 7507 Rosaria Cain Owner,Knoodle Merita Kraya Owner,Euro Pizza Cafe,Inc. Suzanne Nann Sonoran Lifestyle Real Estate Sheri Patton Owner,American Family Insurance Agency LeeAnn Torkelson SRP Stephany Pueschel MidFirst Bank Dr.Nick Schultz Owner,Healthsource Chiropractic Clinic Nathan Watters Owner,Cummings Pest Control Dr. Patrick Sweeney Fountain Hills Unified School District Tait Elkie Owner,Fountain Hills Law Firm 16837 E.Palisades Blvd.,Fountain Hills,Arizona 85268 i www.FountainHillsChamber.com I 480-837-1654 REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACTREDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACTREDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT REDACT Request for Rezoning | Fountain Hills Town Council | March 16, 2017 Bill Hinz purchased property in 2015 History and Improvements Over the last 20 months, he has invested $6 million to renovate CopperWynd But there are currently only 32 rooms… Losing a great opportunity to showcase this beautiful resort… …AND the beauty of Fountain Hills Bill Hinz has worked tirelessly to assemble a world class “Dream Team” of architects, engineers, and designers… …in order to build a revitalized and Gold Medal-winning resort in Fountain Hills! World Class Hotelier Working with world-renowned hotelier that operates largest boutique hotel chain in the United States! Phoenix, Arizona Sedona, Arizona World Class Architects Allen + Philp Partners Architecture & Interior Design Bighorn Golf Club and Spa Palm Desert, CA Allen + Philp Partners Architecture & Interior Design Joya Spa at Montelucia Paradise Valley, AZ World Class Architects World Class Architects Allen + Philp Partners Architecture & Interior Design Mountain Shadows Resort & Golf Club Paradise Valley, AZ World Class Architects Allen + Philp Partners Architecture & Interior Design Hotel Valley Ho Scottsdale, AZ World Class Architects Allen + Philp Partners Architecture & Interior Design Warm Springs Ranch Resort and Spa Ketchum, ID World Class Architects Allen + Philp Partners Architecture & Interior Design Sheraton Salobre Resort and Spa Canary Islands, Spain World Class Architects Award-winning architect AND proud Fountain Hills-ian Mark Philp! Incredible Architectural Design Lot Coverage will be below 25% gross site area allowed by the Zoning Ordinance area allowed by the Zoning Ordinancearea allowed by the Zoning Ordinancearea allowed by the Zoning Ordinancearea allowed by the Zoning Ordinancearea allowed by the Zoning Ordinance •Phase 1 = 9% •Phase 2 = 11.5% •Phase 3 = 18% Lot Coverage Open Space provided will be more than twice the 15% required by the Zoning Ordinance the 15% required by the Zoning Ordinancethe 15% required by the Zoning Ordinancethe 15% required by the Zoning Ordinancethe 15% required by the Zoning Ordinancethe 15% required by the Zoning Ordinance •Open Space at buildout = >30% Open Space Parking Garage will have two floors in-ground and one above. Parking •Level B1 = 104 spaces •Level 1 = 91 spaces •Level 2 = 110 spaces •Top - Plaza Deck = 16 spaces •Tennis Court (overflow) = 40 valet spaces •TOTAL GARAGE PARKING = 361 A surplus of parking is provided in every phase Parking Phase Peak Weekday Demand Peak Weekend Demand Parking Provided Parking Provided (Full Valet)** 1 200 228 239* 269 2 233 261 251* 283 3 311 326 387* 439 *Includes 40 valet spaces on tennis courts **15% increase in parking efficiency with full valet Peak demand accounts for full hotel, restaurant, event center, employees and members. 41 extra spaces! 41 extra spaces!41 extra spaces! 22 extra spaces! 113 extra spaces! 2 233 261 251*283 3 311 326 387*4393311326326 22 extra spaces!22 extra spaces!22 extra spaces!22 extra spaces!22 extra spaces! 113 extra spaces!113 extra spaces! A surplus of parking is provided in every phase Parking Phase Peak Weekday Demand Peak Weekend Demand Parking Provided Parking Provided (Full Valet)** 1 200 228 239* 269 2 233 261 251* 283 3 311 326 387* 439 *Includes 40 valet spaces on tennis courts **15% increase in parking efficiency with full valet Peak demand accounts for full hotel, restaurant, event center, employees and members. 41 extra spaces! 41 extra spaces!41 extra spaces! 22 extra spaces! 22 extra spaces!22 extra spaces!22 extra spaces! 113 extra spaces! 3 311 326 387*4393311326326 113 extra spaces!113 extra spaces! A surplus of parking is provided in every phase Parking Phase Peak Weekday Demand Peak Weekend Demand Parking Provided Parking Provided (Full Valet)** 1 200 228 239* 269 2 233 261 251* 283 3 311 326 387* 439 3 311 326326 *Includes 40 valet spaces on tennis courts **15% increase in parking efficiency with full valet Peak demand accounts for full hotel, restaurant, event center, employees and members. 41 extra spaces! 22 extra spaces! 113 extra spaces! Phase 1 Expansion to 128 guestrooms 199 Parking spaces provided Can park 269 with full valet Need 228 spaces, have 41 extra spaces! Includes Meeting and Banquet Space Phase 2 Expansion to 188 guestrooms 211 Parking spaces provided Can park 283 with full valet Need 261 spaces, have 22 extra spaces! Expanded facilities for members Phase 3 Expansion to 300 guestrooms 347 Parking spaces provided Can park 439 with full valet Need 326 spaces, have 113 extra spaces! Improvements to amenities and grounds World Class Restaurant Remains No Negative Visual Impact View from Sun Ridge Golf Club Entrance (1/4 mi.) No Negative Visual Impact View from Sun Ridge Golf Club Entrance (1/4 mi.) No Negative Visual Impact Current View Future View No Negative Visual Impact Current View Future View No Negative Visual Impact Current View Future View Huge Economic Benefit •CopperWynd’s revitalization is a major financial benefit to the entire Fountain Hills community •Upon full buildout, total sales tax to increase 10x from: •$160,000 in 2016 to •$1,650,000 at full buildout! Huge Economic Benefit Huge Economic Benefit Increase in sales tax from nearby businesses as more visitors come to enjoy the beauty of Fountain Hills! Widespread Community Support Fountain Hills Chamber of Commerce Votes to Support! Widespread Community Support Widespread Community Support •Nearly 60 signatures in support! redact redact redact redact Widespread Community Support •Nearly 30 support letters submitted in the last three weeks! redact redact redact redact Request for Rezoning | Fountain Hills Town Council | March 16, 2017 THANK YOU Bill Hinz and His Team Thank You for Supporting The Revitalization of the Great CopperWynd Resort & Club! Request for Rezoning | Fountain Hills Town Council | March 16, 2017 League of Arizona Cities and Towns, AZ - March 3, 2017 http://azleague.org/index.aspx?NID=406[3/6/2017 6:53:21 AM] March 3, 2017 Issue 8 - March 3, 2017 Legislative Overview Today is the 54th day of session and this week standing committees in both chambers reconvened to take action on assigned bills from the opposite chamber. In addition to committee action, floor sessions continued to debate and vote on bills that were not heard during crossover week. State Budget To date, the state budget has not been introduced and many of the details being considered remain confidential. However, the League was informed that certain components of the budget that will have a significant impact on local government are under consideration and the conclusion of the legislative session may be delayed due to ongoing negotiations. While the House has reestablished the use of Appropriations subcommittees, the Senate continues to do most of the work on the budget through small group meetings of members only. Even though the House subcommittees are meeting in public sessions, we know much of the actual negotiating occurs out of the public's view. Therefore, it is critical that you continue to communicate our serious concerns about the Arizona Board of Regents' proposal to allow the three state universities to keep the transaction privilege taxes they currently pay, including the shared portion that goes to local governments. This is a dangerous precedent for a variety of reasons. First, it will undoubtedly lead other state-funded entities (K-12 school districts, community colleges, etc.) to seek the same opportunity to keep the taxes they pay. This will undermine the integrity of the shared revenue system. The erosion of the tax base, the violation of the shared revenue formula and the continuation of the shift of state responsibility to local governments are all legitimate reasons to oppose this proposal. It is important to contact your delegation members soon to tell them to reject the taking of local revenue for the university system. CALL TO ACTION In last week's bulletin, we wrote about HB 2212 federal financial assistance; reports, sponsored by Rep. Vince Leach R-Tucson, LD 11. It would require all state agencies and political subdivisions to prepare an annual report detailing all of the federal funds they receive and to submit that information to the Arizona Department of Administration (ADOA). Additionally, it requires each agency or political subdivision to submit a plan for what it would do in the event these funds are reduced. This information would be summarized by ADOA in You are here: Legislative Issues > Legislative Bulletin > March 3, 2017 Engage your community - connect to news, events and information you care about. View more information...Sign In League of Arizona Cities and Towns, AZ - March 3, 2017 http://azleague.org/index.aspx?NID=406[3/6/2017 6:53:21 AM] a report that would be shared with the chairs of the House and Senate Appropriations Committees. These committees could use this information to reduce, eliminate or otherwise adjust future appropriations of state monies. Cities and towns receive most of their shared revenue based on revenue formulas rather than direct appropriation. Local elected officials and their professional staff are in the best position to determine whether to seek federal funding and how to manage their own budgets. This bill unnecessarily intrudes into local decision making and is burdensome in its reporting requirements. The bill will be heard in the Senate Appropriations committee on Tuesday, March 7, 2017. The following are the members of the committee: Senator Debbie Lesko (Chair) Senator John Kavanagh (Vice Chair) Senator Sylvia Allen Senator Steve Montenegro Senator Warren Petersen Senator Steve Smith Senator Olivia Cajero Bedford Senator Steve Farley Senator Katie Hobbs Senator Martin Quezada We would like to amend the bill to remove cities and towns from the requirements of the bill. However, if we are unsuccessful we will oppose it. Please contact members of the committee or members of your delegation to express your concerns about this unnecessary and intrusive proposal. Construction Sales Tax Representative Regina Cobb R-Kingman, LD 5, held another meeting this week on her proposed bill, HB 2521 TPT reform; contractors, to reform construction contracting sales taxes. Earlier, the bill was heavily amended in the House Ways and Means Committee. We had many concerns about the bill as amended and have continued to oppose it. In the meeting this week, Representative Cobb said that she was going to again significantly amend the bill on the floor of the House. While the amendment was not available, she explained that it would include the following provisions: Eliminate the prime contracting tax for state and local governments and imposes retail taxes on construction materials purchased by contractors Create a new excise tax separate from transaction privilege tax (TPT) that would be imposed on 100 percent of a construction project (We believe she intends for this new excise tax to be shared with local governments but cannot be sure until we see the language.) Apply some or all of the existing TPT exemptions to the new excise tax Require all contractors to be licensed and to remit taxes to the Department of Revenue (This includes the contractors who gave up their licenses under the 2013 League of Arizona Cities and Towns, AZ - March 3, 2017 http://azleague.org/index.aspx?NID=406[3/6/2017 6:53:21 AM] changes to construction sales taxes.) Eliminate the authority for cities and towns to impose a prime contracting tax on construction projects other than Highway, Street and Bridge projects (This corrects drafting errors that were in the House Ways and Means committee amendment.) She intends to keep the portion of the underlying bill that establishes the new revenue sharing pool made up of a portion of all retail sales taxes (not just those related to construction) assessed by a city or town. For 2018, the percentage of retail taxes that are to be remitted to the pool is 4% but that would be adjusted semi-annually based on a formula. These retail taxes would then redistributed among cities and towns based on the value of building permits issued by the city or town during the preceding 36 months. Since we have not seen the amendment, it is impossible to analyze how it would impact our local revenues. Until we are able to analyze the proposal, we have no choice but to oppose the bill and the amendment. Additionally, since the first reforms in 2013, the goal has been to simplify our system of taxing construction activity and we do not believe this proposal achieves that goal. The bill did not move forward to the Committee of the Whole this week but we want to remain prepared in the event it moves to the floor of the House next week. Please contact your legislators to register your continued concern on this issue. Vehicle Impounds Several municipalities have shared concerns about HB 2159 vehicle impoundment; release of vehicles, sponsored by Rep. Darin Mitchell R-Glendale, LD 13. The bill would eliminate the statutory 30-day hold on vehicles that have been impounded twice within 1 year due to the driver lacking a valid license or a DUI. The concern is that removing this deterrent will lead to more unsafe/unlicensed drivers on our streets. During the House committee hearing, the sponsor explained that the bill is meant to address a situation in which a commercial vehicle was impounded due to an employee's actions and the owner of the company was required to sign the contract establishing the 30-day hold for a second violation in order to recover the vehicle. The League approached Rep. Mitchell about amending the bill to reinstate the 30-day hold contract for all other vehicles except for commercial vehicles/assets and the sponsor agreed. The bill was held this week but will likely be heard next week, along with the League's proposed amendment sponsored by Sen. Fann R-Prescott, LD 1. Small Cell On Thursday, League staff met with the wireless carriers to continue negotiations on HB 2365 wireless providers; use of rights-of-way, sponsored by Rep. Jeff Weninger R-Chandler, LD 17. The industry provided changes to the bill that address most of the outstanding issues in regard to maintaining the ability of cities and towns to manage rights-of-way for small cell deployment. While some issues remain, League staff and the wireless carriers have agreed to meet again to offer solutions before the bill will be heard in the Senate Commerce and Public Safety Committee on March 13. The changes to the bill offered by the industry, among others, limit deployment of wireless infrastructure to the right-of-way only; reduce the number of applications carriers may submit in a batch from 30 to 25; limit the size of equipment from 50 to 28 cubic feet; allow cities and towns to deny applications for small cell deployment that do not meet objective design standards or ground-mounted equipment spacing requirements; and remove provisions regarding make-ready work for replacement utility poles owned by a municipality. The bill still contains provisions regarding deployment of macro cell sites. After further discussion, Sprint has offered to make changes to the bill that will ensure cities and towns have the ability to manage and limit the placement of these structures in the right-of-way and that they undergo a zoning review and approval process. Oversize/Overweight Vehicles This week the Senate Transportation and Technology Committee unanimously passed HB 2371 oversize commercial vehicles; local authority, sponsored by Rep. Drew John R-Safford, LD 14. The Arizona Trucking Association worked with the League prior to session to craft legislation that will require cities, towns and counties to adopt ordinances for oversize and overweight motor carriers that are substantially identical to the rules adopted by the Arizona League of Arizona Cities and Towns, AZ - March 3, 2017 http://azleague.org/index.aspx?NID=406[3/6/2017 6:53:21 AM] Print Page Email Page Contact Us Accessibility Copyright Notice Powered by CivicPlus Department of Transportation to ensure rules are applied uniformly statewide. Cities and towns will maintain the ability to adopt ordinances for infrastructure, route and time of day restrictions to provide safe travel for these vehicles that will not damage bridges or roads or impede traffic during peak hours. After the bill passed committee, the League was informed of a proposed amendment that would prohibit cities and towns from restricting the number of trips motor carriers may make during a specified period of time. This amendment was drafted to address a specific situation in the Town of Patagonia regarding a proposed ordinance limiting commercial and oversize/overweight truck travel on a residential street to a specified number of trips but included a provision allowing trips to exceed the restriction with a permit from the town. The town ordinance was proposed to address the concerns of citizens regarding the use of a residential street by a nearby mining operation as a route for large mining trucks from the state highway to the mine site. The street is not built to withstand the frequent travel of large vehicles and traverses areas with a high amount of pedestrian traffic, which prompted the town council to seek a solution to the problem. Patagonia subsequently tabled their proposal and is no longer considering adopting this ordinance, but we believe the bill, with this amendment, will likely impact other municipalities. Legislative Bill Monitoring All bills being actively monitored by the League can be found here. Legislative Bulletin is published by the League of Arizona Cities and Towns. Forward your comments or suggestions to league@azleague.org. Issue 9 – March 10, 2017 Legislative Overview Today marks the 61st day of session and this week League staff have been engaged in a number of stakeholder meetings, testifying in committees and meeting with legislators on bills impacting city and town government. Legislative action this week was at a moderate pace with most of the activity occurring in standing committees. Floor and committee activity will increase in the coming weeks as the legislature works to take action on bills before deadlines pass. To date, the introduction of a budget package has yet to occur. The Senate is still meeting in small groups to discuss budget priorities while the House is piloting a subcommittee process where priorities are discussed and vetted in an open meeting prior to submitting recommendations to the Appropriations Committee. The budget process, however, appears to be delayed pending ongoing discussions regarding priorities put forth by the governor that may not have enough support of leadership and rank and file legislators. ABOR Budget Proposal There have been several news stories about this proposal this week with Governor Ducey’s spokesman saying this portion of the state budget is a “high priority” for the governor. As proposed, this would allow universities to avoid paying their share of state TPT—including local shared revenue—and keep it to use for bonding, general operations and student aid. We are strongly opposed to this idea as it would open the door for other public entities to ask to keep their TPT and it breaches the historic shared revenue formula. The proposal would cost cities and towns millions of dollars annually; money that is already budgeted to go to local services. As budget negotiations begin to heat up, we request that you ask legislators to oppose the use of local revenue for university funding. Bonding Legislation A League-supported bill was heard in the Senate Finance Committee on Wednesday. HB 2452 bonding; amortized premium; segregated fund, sponsored by Rep. Jill Norgaard R-Phoenix, LD 18 makes clarifying changes to the general obligation bonds statutes for cities and towns and other political subdivisions. It clarifies that the secondary property tax levy for general obligation bonds that voters approve may only be used for paying principal and interest on the bonds and not for any other purpose. The second change defines how bond premium is amortized for purposes of the constitutional and statutory debt limitations. The legislation unanimously passed out of committee and will proceed to the Rules Committee. We thank Rep. Norgaard for drafting and sponsoring this legislation and for all of her hard work to support local government. Small Cell Bills The stakeholder process with the wireless carriers concluded after an agreement was reached to modify the provisions of HB 2365 wireless providers; use of rights-of-way to address our concerns with the bill. League staff and attorneys spent many hours in negotiations to ensure the deployment of this technology will not impede our ability to manage the right-of-way on behalf of our citizens. The agreed-upon changes to the bill will be offered in a strike-everything amendment in the Senate Commerce and Public Safety Committee on Monday. Among other things, the changes limit deployment of wireless infrastructure to the right-of-way only; require all monopole structures regardless of height to go through a zoning review process and allow for cities and towns to deny these applications; reduce the number of small cell collocation applications carriers may submit in a batch from 30 to 25; limit the size of equipment to 28 cubic feet; allow cities and towns to deny applications for small cell deployment that do not meet objective design standards or ground-mounted equipment spacing requirements; increase the time frame for cities and towns to take action on applications for small cells and related equipment; and increase the prescribed fee caps for certain applications. We are beginning discussions with the cable companies, Cox Communications and Comcast, regarding their intent to merge the provisions of SB 1214 small cell equipment; local governments, sponsored by Sen. Karen Fann R-Prescott, LD 1 into HB 2365. In addition, the cable providers have raised concerns regarding the provisions of HB 2365 and are engaging in discussions with the wireless carriers to reconcile the industry-specific issues in the bill. Cox and Comcast have committed to work with the League to keep us up-to-date on these discussions and will provide amendment language before it is adopted in the bill. CALL TO ACTION HB 2212 federal financial assistance; reports, sponsored by Rep. Vince Leach R-Tucson, LD 11 passed out of the Senate Appropriations Committee this week on a party line vote. As you will recall, it would require all state agencies and political subdivisions to prepare an annual report detailing the federal funds they receive and to submit that information to the Arizona Department of Administration (ADOA). Additionally, each agency or political subdivision would be required to have a plan in the event these funds are reduced. This information would be summarized by ADOA in a report that would be shared with the chairs of the House and Senate Appropriations Committees. These committees could use this information in future funding decisions. We have worked very well with the sponsor, Rep. Vince Leach, on a number of other issues this year. Unfortunately, he has not agreed to amend cities and towns out of the bill so we are going to have to try to defeat this legislation. Since it has not been amended, it will not need to go back to the House for a final vote. Therefore, this will be our last opportunity to stop it. Cities and towns receive most of their share of revenues based on revenue formulas rather than direct appropriation. Local elected officials are in the best position to determine whether to seek federal funding and how to manage their own budgets. This bill unnecessarily intrudes into local decision making and is burdensome in its reporting requirements. Please contact your senator soon to express your opposition to this bill and to ask them to vote NO on HB 2212. HB 2495 consolidated election dates; tax authorization, sponsored by Rep. Kevin Payne R-Peoria, LD 21 will be heard on Thursday morning in the Senate Judiciary Committee. The bill would require any approval or authorization of a TPT assessment by a county, city or town to be held during the fall cycle of even numbered years. This is problematic for a number of reasons. For general law cities and towns, the council is currently authorized to make these decisions. The intent of the bill is to impose a whole new requirement for elections that have not been necessary in the past. Additionally, there may be circumstances when a city or town would not be able to wait two years to go to their electorate on a tax question. The timing of elections is best made at the local level. Additionally, when the legislature tried to dictate when candidate elections would be held, the law was challenged and the authority of charter cities to determine when these elections would occur was upheld. We believe it is likely the Court that would again rule this is a matter of local concern. The following are the members of the Senate Judiciary committee: Senator Judy Burges (Chair) Senator Nancy Barto (Vice Chair) Senator Bob Worsley Senator Frank Pratt Senator Lupe Contreras Senator Andrea Dalessandro Senator Martin Quezada Please contact these members and ask them to OPPOSE HB 2495. Cardiac Presumption This session the League has been working extensively on both of the workers’ compensation “presumption” bills brought forward by the firefighters’ association. The “cardiac” presumption, HB 2410 workers' compensation; firefighters; heart-related cases, sponsored by Rep. T. J. Shope R-Casa Grande, LD 8, expands the list of conditions presumed to be the result of working in the fire service to include all heart, perivascular and pulmonary disease. As drafted the bill would have allowed the dependents of any firefighter that passed away from heart, pulmonary or vascular disease, regardless of the firefighter’s length of service, age at death, or when the last time the firefighter was assigned to hazardous duty, to file for worker’s compensation death benefits. The bill was amended on the House floor to limit the presumption to incidences that occur within 24 hours of a known work-related event. This substantial revision is a major change from the bill as drafted and significantly limits its potential liability relative to the original bill. The League will continue to work on the measure with the firefighters’ associations as the bill moves forward to craft a policy that protects the workers’ compensation system, local taxpayers and our public safety employees' health. Directed Workers’ Comp Care Based on input from our members, the League is supporting SB 1407 workers' compensation; employee definition; notice, sponsored by Sen. Karen Fann R-Prescott, LD 1. The bill would allow public employers to direct the care of their employees in workers’ compensation cases. Under current law a private employer may direct the care of their employees in workers’ compensation cases but a public employer may not. In the private sector directing workers’ compensation care has been an effective way to control costs while maintaining the quality of care and the integrity of the system. Providing public employers access to this tool could prove highly beneficial to both public employees and employers and the League is working to make this option available to our members. The bill will be heard in the House Banking and Insurance Committee on Monday and we encourage you to reach out to your state representatives to ask them to vote YES on the bill. Legislative Bill Monitoring All bills being actively monitored by the League can be found here.