HomeMy WebLinkAbout2003.0220.TCRM.Minutes TOWN OF FOUNTAIN HILLS
Cor MINUTES OF THE REGULAR SESSION OF THE
FOUNTAIN HILLS TOWN COUNCIL
February 20,2003
Mayor Beydler called the meeting to order at 6:30 p.m. Following the invocation by Councilman Kavanagh,
roll call was taken.
ROLL CALL - Present for roll call were the following members of the Fountain Hills Town Council: Mayor
Jon Beydler, Vice Mayor Susan Ralphe, Councilmembers Rick Melendez, Leesa Stevens, Kathleen Nicola,.
Michael Archambault, and John Kavanagh. Town Attorney Andrew McGuire, Town Manager Tom Pickering,
Public Works Director Tom Ward, Senior Planners Dana Burkhardt and Denise Ruhling and Bevelyn Bender,
Town Clerk, were also present.
STATE OF THE TOWN PRESENTATION - Mayor Beydler delivered the State of the Town address and
expressed appreciation to the Fountain Hills Chamber of Commerce for their sponsorship of and support for this
worthwhile event (presentation was also made at the Chamber Breakfast that morning). He also thanked Frank
Ferrara, the Board of Directors, Chamber members and everyone else associated with the address. The Mayor
provided a brief overview of the accomplishments of Fountain Hills' elected representatives and Town Staff so
far this year and outlined a number of goals and priorities that had been identified for the future.
Mayor Beydler stated that rather than review at this time an extensive list of statistics, as had been done in the
past. He noted that Town Manager Tim Pickering had compiled a report entitled "Fountain Hills - a Year in
Review"that contained all of the important and interesting details. He said that a copy of that report would be
available to the members of the audience at the end of the meeting and encouraged citizens to review the report
and familiarize themselves with the Town's progress.
Mayor Beydler commented on the unprecedented changes that occurred in Fountain Hills during 2002, the
challenges that those changes presented, the solutions and goals that were pursued and identified efforts to meet
and address those challenges and the positive achievements that had occurred to date thanks to the cooperative
efforts of the members of the Council, Town Staff and everyone else who provided support during this time. He
thanked the members of the Council, Staff and citizens for their hard work, cooperation and ongoing support.
(Copy of the Mayor's address is on file in the Clerk's office)
AGENDA ITEM #1 - CONSIDERATION OF THE PRELIMINARY AND FINAL PLAT FOR THE
EDGEWORTH TWINS CONDOMINIUMS, LOCATED AT 14028 EDGEWORTH DRIVE, AKA LOT
32,BLOCK 5,FINAL PLAT 104.
AGENDA ITEM #2 - CONSIDERATION OF THE PRELIMINARY AND FINAL PLAT FOR THE
ATTIA CONDOMINIUMS, LOCATED AT 12211 N. FOUNTAIN HILLS BOULEVARD, AKA LOT 4,
BLOCK 8,FINAL PLAT 206.
AGENDA ITEM #3 - CONSIDERATION OF RESOLUTION 2003-06 REGARDING AN
AMENDMENT TO THE CURRENT CONTRACT BETWEEN THE TOWN OF FOUNTAIN HILLS
AND THE MARICOPA COUNTY SHERIFFS' DEPARTMENT TO REDUCE PRESENT CONTRACT
LEVELS AND COSTS TO THE TOWN.
AGENDA ITEM #4 - CONSIDERATION OF A CITIZEN TO FILL THE VACANCY ON THE
MCDOWELL MOUNTAIN PRESERVATION COMMISSION.
AGENDA ITEM #5 - COUNCIL APPOINTMENT OF A CITIZEN TO SERVE ON THE MUNICIPAL
PROPERTY CORPORATION.
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AGENDA ITEM#6- CONSIDERATION OF A REPLAT OF FINAL PLAT 202,BLOCK 2,LOTS 9, 11
AND 12, TRACT "B," LOCATED AT THE NORTHWEST CORNER OF SAGUARO BLVD. AND 40)
AMHURST DRIVE; CASE#52002-56.
Councilman Archambault MOVED to approve the consent agenda as read (Items 1-6) and Councilwoman
Stevens SECONDED the motion.
A roll call vote was taken with the following results:
Vice Mayor Ralphe Aye
Mayor Beydler Aye
Councilman Melendez Aye
Councilwoman Nicola Aye
Councilwoman Stevens Aye
Councilman Archambault Aye
Councilman Kavanagh Aye
The motion CARRIED UNANIMOUSLY.
AGENDA ITEM #7 - CONSIDERATION OF A DEVELOPMENT AGREEMENT BETWEEN THE
TOWN OF FOUNTAIN HILLS AND FOUNTAIN VISTA PROPERTIES L.L.C. REGARDING
DEVELOPMENT CONSIDERATIONS FOR A PORTION OF FINAL PLAT "FOUNTAIN HILLS
RESORT" LOT 1.
Town Attorney Andrew McGuire referred to a memo he forwarded to the Council dated February 14, 2003,
requesting that the Council consider continuing this item to their first Council meeting in March. He explained
that at the time he wrote the memo, Staff had not had any direct conversations with the developer relative to
their thoughts regarding the numerous revisions to the Development Agreement that had been recommended by
Staff. He said that since that time, Staff had held discussions with the developer and determined that a majority
of the changes included in the Agreement would most likely be acceptable to the developer. He added that a
few outstanding items remained to be addressed and the actual text of the Agreement must be presented to the
Council for their review prior to consideration.
Mr. McGuire also discussed a meeting that was held yesterday with some of the affected neighbors and stated
that they had prepared an additional list of items they would like the developer to include and agree to regarding
the project. He added that another HPE carve-out needed to be worked into the site plan and said it would be
unfair to the developer to ask him to present a fixed site plan when only one day's notice was provided. Mr.
McGuire stated that in addition, Staff had not yet obtained the legal description and text. He stressed the
importance of ensuring that all of the parts were in place prior to proceeding. He emphasized that the
Development Agreement was a necessary precursor to the General Plan Amendment and the rezoning (Agenda
Items 8 and 9). He pointed out that if the Agreement was not in place, it didn't make any sense to proceed with
the other two.
Mr. McGuire commented that based on his experience, this represented a different approach in proceeding with
a Development Agreement, General Plan Amendment and rezoning. He stated the opinion that he should not
have allowed Planning and Zoning to hear the General Plan amendment and rezoning until a consensus had been
reached relative to the terms of the Development Agreement. He explained the issue had been "double noticed"
and a Public Hearing was scheduled for this evening. Otherwise, he would have requested that this item be
removed from this agenda and placed on the agenda of the Council's first meeting in March. He reiterated the
importance of providing the Council an opportunity to closely review the contents of the proposed Development
Agreement before casting their votes.
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Mr. McGuire noted that should the Council members approve his request for the continuance, they would also
L have to decide whether to open up the two scheduled Public Hearings, allow the citizens to present their remarks
tonight and then continue the two Public Hearings or allow the citizens to decide whether they would like to
come back and present their comments at the next meeting when the Council would vote on this matter.
In response to a question from Mayor Beydler relative to the delays that occurred regarding the Agreement, Mr.
McGuire explained that his first contact from the developer's attorney, the typical first step in proceeding with a
Development Agreement, occurred only one week ago. He explained that although a draft Development
Agreement was submitted prior to Christmas, discussion regarding the Agreement was not able to commence
until contact was made between Town Staff and the developer's attorney. He also pointed out that during that
time span, the General Plan Amendment and rezoning moved forward and expressed the opinion that an
extensive amount of time had not lapsed considering all of the issues involved. He added that Staff was
requesting two more weeks in which to tie up all of the loose ends and stated that the Council would then be
presented an extensive,thorough,and professional document for their review and consideration.
Councilwoman Stevens asked whether the applicant agreed with the need for the continuance and Mr. McGuire
responded that Staff had not yet discussed the request for a continuance with him.
Councilman Archambault expressed concern relative to the possibility of future delays and asked whether they
could continue the Development Agreement at this time but proceed with the other items. Mr. McGuire said
that he would not recommend that the Council move forward with the General Plan Amendment and rezoning
until an approved Development Agreement was in place. He added that what the Council had before them at
this time was the old Development Agreement prior to amendment. He commented on the extensive revisions
that had been made to the document.
Councilman Kavanagh stated that the issue was a controversial one, based on the number and frequency of e-
mail messages he had received, as well as the large audience turnout. He stated the opinion that based on his
conversation with Ms. Ruhling yesterday and Mr. McGuire's comments tonight, it was his understanding that a
great deal of activity had occurred within the last 48-hours between Staff and the developer and between the
developer and community residents. He added that a significant amount of positive changes had occurred and
all parties were close to reaching a consensus on all of the issues. He noted that although additional discussions
had taken place, nothing had been finalized. He stated the opinion that it would be counter-productive to
comment on this matter at the present time. Councilman Kavanagh said that he would prefer to continue
Agenda Items 7 through 11 to the next meeting of the City Council, as recommended by Staff, but said that he
would welcome input from citizens at the meeting relative to this agenda item.
Vice Mayor Ralphe stated that by mid-afternoon yesterday, it became apparent that progress was being made on
several issues. She added that today, in an attempt to keep abreast of what was transpiring, she participated in a
conference call with two Staff members, another call with the Town Attorney, and had a phone conversation
with the developer. She reported that the result of all those conversations was that she was convinced that things
were changing fast and that the changes were significant and warranted the additional time that had been
requested by Staff. She commented on the long-term impacts this important document would have on the entire
community and said that it had become apparent to her that Staffs request was appropriate and deserving of
Council approval. Vice Mayor Ralphe also agreed with Councilman's Kavanagh's comments relative to
allowing members of the audience who wished to speak to present their comments at this meeting and
encouraged additional citizen comments once the final Development Agreement had been presented.
Mayor Beydler expressed concern relative to continuing the item and allowing a long discussion about the
merits of the project to take place at the same time. He commented on the fact that negotiations were continuing
and said that the Development Agreement itself actually had an impact on a number of the concerns that the
community had regarding the document. He stated the opinion that they would be placing the applicant and the
attorney in an extremely awkward position. He expressed the opinion that when the Development Agreement
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was presented on the 19th of December, the applicant was not aware of the fact that it was incumbent upon him
to have his attorney contact the Town Attorney, Mr. McGuire, in order for discussions to commence. He said
that the developer was instead awaiting a response from the Town as to their initial offering and expressed
concerns relative to the costs associated with delays and the importance of proceeding as efficiently and
professionally as possible in matters such as this.
Councilman Melendez asked whether Planning and Zoning had received a copy of the amended Agreement and
Mr. McGuire advised that the .Agreement would not go before that body. Mr. McGuire explained that
significant changes to the Agreement recently took place.
In response to comments from Mayor Beydler, Mr. McGuire advised that if he had gotten back to the
developer's attorney within two-to-three weeks of receiving the proposed Agreement from the developer's
attorney, excluding Christmas, that the General Plan Amendment and rezoning issue would not have been
placed on Planning and Zoning's January agenda. He added that the schedule had actually been accelerated as a
result of the fact that all of these issues were "combined" and went forward at one time. He noted that the item
would have been placed on Planning and Zoning's March agenda. He expressed the opinion that in this
particular case, his earlier involvement would have resulted in more delays. He added that opinion that a two-
month time frame was an incredibly short time frame in which to accomplish all of the issues that had been
brought forward. He also emphasized that it was not Staffs intent to delay action on this matter but rather to
ensure that the final product was thorough, accurate, and positively impacted the Town now and in the future.
Mr. McGuire stated the opinion that the additional two-week extension would provide Staff sufficient time in
which to prepare a final document for the Council to review.
Councilman Melendez recommended that, based on the importance of the issues and the significant interest they
had generated, that a larger room be reserved (at the Community Center) for the next meeting when this issue, if
continued by the Council, would be discussed.
Town Manager Tim Pickering stated that the meeting could certainly be moved to a larger room as
recommended by Councilman Melendez but noted that the next agenda would be comparatively short.
Mr.McGuire stated that at this point the Council could move to continue the Development Agreement and move
on to the Public Hearings, knowing that it was the Council's intent to continue those hearings when they got to
that point in the agenda. He clarified that the Council could allow citizens to provide input at this meeting and
then continue the hearings as well.
Councilman Stevens commented that prior to hearing from the public, she would like to hear from the applicant.
Vladimir Hulpach, President of Fountain Vista Properties, L.L.C., the applicant in this case, addressed the
members of the Council and confirmed that a Development Agreement had been presented to the Town of
Fountain Hills on December 19, 2002. He said that they had worked closely with Staff, particularly Planning
and Zoning, since early September. He reiterated previous comments made by the Mayor relative to the fact
that his attorney had not been in contact with the Town's Attorney because they were not made aware of the fact
that this was the proper manner in which they were expected to proceed. He commented on efforts that were
expended to comply with all of the Town's expectations and requirements as they pertained to this matter. Mr.
Hulpach stated that he was not aware of any instances where they failed to meet a Town deadline. He added
that as far as the Development Agreement itself, he believed that his attorney received the revised draft today
and said that he received a copy at 2:00 p.m. this afternoon. He informed the members of the Council that he
did not consider the proposed changes to be major (pertained more to the legal language than to significant
issues)and added that they were prepared to agree with them as presented. He stated that speaking on behalf of
the developer he would like to state that the Agreement, as proposed and received this date, was acceptable to
the developer in its entirety, with the exception of the compensation that was being sought for the HPE trespass.
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Mr. Hulpach added that the appearance of so many citizens at the meeting, in addition to guests of the applicant
who had traveled extensively to provide input, attested to the importance of the issue and requested that they be
allowed to present their comments to the Council at this time.
In response to a question from the Mayor, Mr. Hulpach confirmed that the only outstanding issues remaining at
this time to be addressed in the Development Agreement, was the dollar amount of compensation for the
trespass of the HPE.
Mr. McGuire, responding to a request for input from the Mayor, stated that until the Council provided input to
Staff regarding the document, they did not know what remaining issues might exist. He also commented on the
fact that as late as this afternoon, the developer had issues relative to the additional "carve-out" of an area that
was going to be dedicated to non-development. He explained that this would change the site plan and it would
take Mr. Hulpach time to develop a new site plan. Mr. McGuire added that a review of the amended site plan
would need to occur and additional discussions would need to take place relative to language contained in the
document.
Mr. Hulpach concurred with Mr. McGuire's comments regarding the fact that additional language might need to
be included based on additional discussions and meetings that had taken place within the last two days. He
noted that reasonable compromises had been reached between all parties concerned, including the Homeowners'
Association, and said that he had faith in Town Staffs ability to craft appropriate legal language relating to the
issues that would be acceptable to everyone involved.
Councilman Kavanagh stated that he would certainly like to hear from people present at the meeting who had
traveled great distances to be here and who might not be able to attend the next meeting of the Council when
this issue would be further discussed. He asked whether the Homeowners' Association and the developer had
been able to reach a final agreement. Mr. McGuire advised that he learned of the discussions between the
,. developer and the Association late this afternoon and said he was unable to confirm at this time whether all of
the parties had reached an agreement. He added that Denise Ruhling could report on what took place at that
meeting.
Senior Planner Denise Ruhling commented on the fact that she had attended several meetings between the
developer and the Homeowners' Association and reported that although several conclusions had been reached
that represented a compromise, the legal description and map were still in draft form and the language was not
yet in draft form. She agreed that Mr. Hulpach had gone to great lengths to accommodate the residents and the
residents, in turn, had made significant strides as well. She agreed with Mr. McGuire's comments and said that
additional work needed to be done and added that she would be unwilling to commit to language that she had
not had the opportunity to review.
Councilman Kavanagh recommended that the out-of-town speakers be allowed to present their remarks.
Mayor Beydler stated that the members of the Council concurred with Councilman Kavanagh's recommendation
and requested that Mr. Hulpach introduce his guests at this time.
Mr. Hulpach announced that there were a number of organizations represented at the meeting this evening and
those representatives would like to speak in favor of the project. He commented on recent newspaper articles
and rumors that had circulated relative to the Hilton's involvement in the project and said that he would like Mr.
Greg Francois,the Director of the Franchise Division for the Western Region of the Hilton Corporation based in
Beverly Hills,California,to address the Council.
Mr. Francois, Vice President of the Western Region of Hilton Hotels Corporation, said that he had had the
Li,, opportunity to work with Mr. Hulpach and his entire group for over three years. He discussed challenges
associated with projects such as the one currently under discussion and noted the extensive time and effort they
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required. Mr. Francois reported that his company currently had over 40 hotels in Arizona and wanted the hotel
in Fountain Hills to serve as a "flagship," the company's newest and best resort in the State. He also commented
on difficulties associated with financing, particularly during difficult economic times, and said that issues such
as this were what would be addressed in the Development Agreement that would be voted on by the Council at
their next meeting.
Mr. Francois urged the Council to support the additional units that were being requested in order to ensure that
the project could be equitably financed and moved forward. He also commented on Hilton Corporation's
involvement in the project and said that they had entered into a signed agreement with Hulpach and his
organization and they intended to stand behind that agreement. He stated that Hilton Hotels felt privileged to be
in the position currently in regarding this project and they hoped to bring a lot of prosperity and serve as a
synergy in the community for many years to come. He indicated his intent to attend the groundbreaking
ceremony for the project as well as the grand opening, and to be in attendance many times thereafter. He
thanked the Council for allowing him the opportunity to address them. He added that he would try to adjust his
schedule so that he could be present at the next meeting when the Council would vote on this matter.
Councilman Archambault asked whether the hotel as well as the casitas would be built within the same
approximate time frame. Mr. Francois confirmed that the effort would be a concurrent one and emphasized the
importance of having the casitas, the villas, etc. in place to work hand-in-hand with the hotel and generate
revenue.
Mr. Francois noted for the record that the Hilton Hotels Corporation included a former sister company
headquartered out of London, their international branch, and said that the organization encompassed 2600 hotels
in 64 countries. He explained that everyone connected with the hotels and/or checking into their worldwide
reservation/computer system, would know where Fountain Hills was and, by reviewing the Corporation's web
pages, would be able to view images of the hotel.
Mayor Beydler thanked Mr. Francois for his input and asked Mr. Hulpach if he had any other out-of-town guests
who would like to speak at this time.
Mr. Hulpach said that he would like to add that the license agreement with Hilton Hotels also provided for
territorial exclusivity for a defined area for similar Hilton products, i.e. full service Hilton hotels and resorts. He
asked for confirmation that Staffs request was to postpone action on this item until March 6th and the Mayor
affirmed that this was in fact the correct date. Mr. Hulpach said that he would leave it up to the others present at
the meeting to decide whether they would like to present their remarks at this time or wait until the March 6th
meeting, if they were in fact able to attend that session.
Councilwoman Stevens said that although it appeared this issue would be continued to the next meeting and
citizens'comments might be more pointed and appropriate at that time, she would still like to allow any member
of the public who would like to speak to do so at this time if they had filled out a speaker card.
Mayor Beydler said that when the speakers' names were called out, those citizens who would rather speak at the
March 6th meeting could state that they would "pass" at this time.
Michael Downes, 16616 East Palisades
Mr. Downes stated the opinion that 90% of the citizens of Fountain Hills wanted to see the resort built and were
willing to "bend over backwards" to accomplish this feat. He said that the only remaining question was the
amount of "tribute" that would have to be paid to Mr. Hulpach in order for the hotel to come to fruition. He
advised that he had the opportunity to review the original Development Agreement in his capacity as Chairman
of the Planning Commission and stated that he made several comments regarding the proposal at that time. He
stated the opinion that Mr. Francoise did his best to address concerns and rumors that had been expressed, but
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emphasized that the key question in everyone's mind is "how were they going to guarantee that there was
Lie actually going to be a Hilton Resort?"
Mr. Downes said that citizens were not particularly worried about whether there was another row of R-4s or not,
but did want a guarantee that the resort would be developed. He questioned whether or not Mr. Hulpach would
be back before the Council requesting approval for more R-4s in another portion of the project if the hospitality
industry did not turn around within two years. He also pointed out that in the original Agreement that he
reviewed, the Concept Plan that was presented by Mr. Hulpach was supposed to be approved, and that plan
included an additional 35 units in the L-3 zone, where corporate casitas, or suites, would be located. He noted
that this would have resulted in too many units being located in the L-3 zone and would have violated the
ordinance. He also discussed the fact that in accordance with the original Agreement, cut and fill waivers were
to be granted as well as land disturbance and said the question became what if the Engineering Department said
"you need more retaining walls and more cut and fill so take some of the units out in order to do this." He asked
whether they were "locked in."
Mr. Downes stated the opinion that there were a number of areas that still needed to be reviewed including the
loss of the hill side, and the question of the monetary amount to be agreed upon, and said that he would like to
suggest that Mr. Hulpach be given an abatement on bed tax, sales tax, and property tax over the next two years
(amounting to a total abatement in the amount of$3 million). He asked the Council to consider his points and
thanked them for allowing him the opportunity to present his remarks.
Alice Sudal, 16420 Bainbridge Avenue -
Ms. Sudal addressed the members of the Council and said she was here to show her support for the Hilton
Resort and stressed the importance of creating and supporting all new tax revenue bases within the Town. She
commented on the fact that small businesses were currently struggling and urged the Council to "embrace" this
proposal. She added that she understood the importance of ensuring that everything was carried out in an
accurate, thorough and professional manner, but said that as far as comments and remarks relative to this
perhaps being a "shady deal" were both inaccurate and uncalled for. She said that she personally knew Mr.
Hulpach as he was her landlord, and added that he was a visionary who was creating businesses in the Town,
and his efforts positively impacted the entire community. She called upon everyone to "look at the big picture"
and avoid making negative and inaccurate remarks. She thanked the Council for allowing her to speak.
Edward Carpenito, 16740 East Bayfield Drive
Mr. Carpenito addressed the members of the Council and stated that he was a Chefs Specialist with U.S. Food
Service and that he has had the privilege of working with the Hilton Group in Scottsdale, Boston, Dallas and
elsewhere. He stated the opinion that the overall benefit of having a hotel like the Hilton establish itself in
Fountain Hills was almost too extensive and far-reaching to describe. He said that he had just finished working
with the owners of an Italian restaurant based in Fountain Hills and added that the small business was
struggling. He noted that there were not,a lot of new people coming into the community at this time and stated
that the hotel would provide a lot more jobs and attract people to the area, which would benefit other businesses
throughout the community. He commented on the "classy" atmosphere that was created as a result of smaller,
clustered specialty stores, but added that these businesses depended on a seasonal rather than annual clientele in
order to survive. He also stated the opinion that once the Hotel was open and proven successful, other major
hotels and businesses would want to locate in Fountain Hills as well. He commented on the anticipated revenue
that would be generated as a result of the hotel and requested that the Council proceed with the proposal as
quickly as possible.
In response to a request for clarification as to the Agenda Items speakers might present remarks on at this time,
itiv Mayor Beydler stated that it was his understanding the Council was considering continuing to the next meeting
all of the Agenda Items related to this issue, Items 7 through 11. Therefore any speakers who would not be able
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to attend the March 6th meeting could present remarks on any of these items at this time. The Council
concurred with the Mayor's statement.
Allan Bluestone, 15331 Hillside
Mr. Bluestone addressed the members of the Council and agreed that they could not discuss and consider an
issue when the most up to date information had not been made available for review. He said that at some point,
he would like to know how the homeowners in the affected area could obtain a copy of the revised Agreement.
He stated that when he purchased his home in Westridge Village four years ago, he knew about the Hilton Hotel
and mentally welcomed it, picturing a resort similar to the Camelback Inn. He added, however, that all of a
sudden there were extra houses, casitas, and high-density and increased traffic going in on the HPE and unless
that had changed,that was a concern.
Mr. Bluestone said that Mr. Francoise, representing Hilton Hotels, provided a number of assurances but pointed
out that when the question was asked, "will things be done concurrently, the casitas and the hotel?" that Mr.
Francoise had responded, "we need the casitas to furnish the money to build the hotel." Mr. Bluestone also
questioned whether two years down the road they would be back saying to the Council that the hotel could not
succeed unless more high-density units were developed. He stressed the importance of receiving assurances that
the hotel was going to be built. He thanked the Council for allowing him to address them.
Councilman Kavanagh stated the opinion that Mr. Francoise was the person who used the word "concurrently"
and asked for confirmation that the developer intended to build the hotel, the casitas and the homes at the same
time.
Mr. Hulpach confirmed that it was their intent to complete the two developments simultaneously and said that it
was a matter of timing and a matter of financing. He said that the financing, as Mr. Francoise attempted to
explain, was contingent upon some of the revenues generated from the deposit, etc. and particularly that the
unencumbered portion of the residential component became available for the development of the resort. He
added that it was a financing contingency and pointed out that more importantly there was a timing issue
because they were working under a number of stringent deadlines handed down by Hilton Corporation.
Mr. Hulpach noted that a large number of plans, already approved by the Town's Engineering Department,
which would require very minimal modifications in order to accommodate the current plans, were in place and
added that he did not anticipate that plan approval would be a lengthy process. He indicated his intention, as
soon as plan approval had been received, to obtain a grading permit and begin working on the off-site
improvements as early as the summer of this year. He said that in the meantime, work would continue on the
construction plans for both projects and stated the opinion that the construction documents for the resort would
most likely take a little more time to prepare and review. He estimated that they would break ground on the
residential component before they began construction on the actual resort.
Mr. Hulpach stated the opinion that sufficient guarantees had been given in response to stated concerns. He
added that when he had the opportunity to present his remarks, there was one additional option he would like to
discuss. He said that since the issues being discussed mainly related to the matter of the Development
Agreement, and because he believed that a framework of consensus existed between the Town, the developer
and the Homeowners' Association, Westridge Village, he believed that this might be appropriately discussed at
an Executive Session of the Council. He added that he was not familiar with the rules and regulations, but if
there was any chance this could occur, he would like the Council to consider this matter.
Tim McWeeney, 12835 North Ryan Way
Mr. McWeeney addressed the members of the Council and stated that he did not agree that the item should be
tabled and asked the members to examine the fact that a lot of people, both pro and con, were present because
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they believed this issue would be discussed this evening in accordance with the newspaper published meeting
agenda. He stated the opinion that an error on the part of the Town Attorney should not result in tabling this
issue and that it should move forward at this time. He added that an historic opportunity existed to do
something for the Town that would place it on the international map and positively impact the community for
years to come. He urged the Council not to delay action on this matter.
Mr. McWeeney expressed the opinion that questions challenging the project's relationship with Hilton
Corporation and financing had been addressed. He commented that the time had come to seize the initiative and
vote for change and requested that the members of the Council vote "Yes" for the future of Fountain Hills and
vote "Yes" to bring international visitors and their tourist dollars to Fountain Hills. He thanked the Council for
allowing him to present his views.
Frank Ferrara, 16411 East Glenbrook
Mr. Ferrara, speaking on behalf of the Fountain Hills Chamber of Commerce, addressed the members of the
Council regarding this issue. He stated the opinion that this evening the developer has come forward with a
solution rather than simply presenting a problem and had stated on the record that he agreed with everything that
had been presented to him. He said that except for the one issue dealing with the monetary obligation, it would
appear that an agreement had been reached and based upon everything that has been said, Mr. Ferrara did not
believe a two-week delay was necessary. He commented on Staffs ability and recommended for the record that
this particular issue be "posted" on Monday and that a Special Council Meeting be held on either Tuesday or
Wednesday for the purpose of finalizing this issue. He reiterated the opinion that a two-week delay was not
necessary. He said he intended to be present when the Special Council Meeting took place to present additional
comments to the Council and thanked them for allowing him to present his opinions.
Doug Davis, 15407 East Hillside Drive
Mr. Davis addressed the members of the Council regarding this issue and said that he too would like to see the
hotel/resort be built but he had concerns regarding the nine acres of high-density, multi-family development
included in the proposal. He said that originally the property was not zoned for this use and when he purchased
his property, he was aware of plans for the Hilton to go in there and was comfortable with that taking place. He
added, however, that he had not planned on high-density development in that area where the lowest home value
was $300,000 and with$1 million dollar plus homes located in close proximity. He commented on the fact that
the plan called for high-density condominiums to be constructed right in the middle of that property and agreed
with Staffs opinion that not only would the proposed development impact the current designated hillside
protection easement, the development and site in such close proximity to the open space recreation zone could
impact surrounding properties, i.e. Westridge Village.
Mr. Davis said that he moved from Scottsdale to Fountain Hills because the Town had great stewardship of the
community. He stated that Fountain Hills was the most beautiful place in Maricopa County and commented on
the wide-open spaces and small town atmosphere that existed.. He added that building high-density
condominiums behind Westridge Village and in the center of very expensive homes would diminish property
values considerably. He agreed that the resort itself would increase property values and commented on the
excellent reputation that Hilton Hotels enjoys. He was not opposed to the casitas and emphasized that his
objection was directed towards the nine acres that was not properly zoned for high-density development. He
also expressed concerns relative to the "rush" to put this matter to rest this evening and stressed the importance
of having sufficient time to review all of the legal documents associated with this proposal, which would impact
the Town for years to come.
Roxanne Boryczki, 16114 East Glen Eagle Drive
Le Ms. Boryczki, speaking on behalf of the Fountain Hills Tourism Council, addressed the members of the Council
regarding this issue. She stated that she was speaking on behalf of all twelve other members of the Tourism
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Council when she said that they 100% whole-heartedly supported this project and asked for the Council's
support as well. She had talked with Mr. Hulpach to review the plan and the requested changes. She added that ,44)
she as a citizen who supported maintaining the Town's desert surroundings, but added that as a business person
and a realist, she understood that growth and development are inevitable but added that the two could be
accomplished responsibly together. She added that she had the utmost faith that Mr. Hulpach would act
responsibly and be sensitive to the neighbors in the surrounding community.
Ms. Boryczki commented on the significant costs of the proposed condominiums and said that they would in no
way diminish the value of the surrounding properties. She added that from a tourism viewpoint, the project
would provide significant exposure and said that Hilton Corporation would help advertise Fountain Hills and
would further what everyone had been trying to accomplish for some time. She reported that the hospitality
industry was projecting that 2004 would be the year of recovery and improvements had already begun. She
emphasized the Tourism Council's belief that the project would succeed and reiterated that Mr. Hulpach was
committed to the project and its success. She thanked the Council for allowing her to address them.
Ronald Lockie, 15111 East Palomino Boulevard
Mr. Lockie addressed the members of the Council and urged them to proceed tonight with this resolution. He
said it was his understanding that the project would result in the creation of 200 jobs and for someone who was
looking for work; a two-week time period could be a long time. He also commented on the importance of
proceeding so that tax dollars would not be lost. Mr. Lockie said that he has known Mr.Hulpach since 1980 and
held him in the highest regard. He commented on his professionalism, expertise, integrity and personal
background. He said that he was extremely confident that Mr. Hulpach wanted only the best for the Town of
Fountain Hills and wanted to share the beauty of the Town with world travelers. He commented on the fact that
Mr. Hulpach at one time managed all of the hotels in Czechoslovakia and stated the opinion that if that
government placed that type of faith in him and his ability, he felt confident in recommending him as the right
person at the right time to develop the right project for Fountain Hills. He thanked the Council for the
opportunity to address them.
Don Maurer, 15110 East Vista Drive
Mr. Maurer,a resident of Westridge Village, addressed the members of the Council regarding this issue and said
that although he had heard a lot of comments from business people and organizations in support of the project,
he had not heard statements of support being expressed by the residents of Westridge Village, the subdivision
that would be the most impacted by the project. He stated that everyone in that area bought their homes
knowing that Hilton Lodge was going to be built, but said that the proposed high-density, multi-housing
component, the HPE, was inappropriate for the area and should not be allowed to proceed. He said that at a
minimum, steps should be taken at this time to ensure that some guarantees were in place regarding the
development of the resort and emphasized that penalties should be imposed if this does not occur. He thanked
the Council for the opportunity to present his opinions.
Phyliss Kern, 15848 East Centipede Drive
Ms. Kern addressed the members of the Council regarding this agenda item and recalled a conversation that took
place last October regarding the General Plan. She noted that all of the issues were resolved without incident
and stated although this matter was more complicated, she urged the Council to proceed with this issue tonight
and not continue it to the March 6th meeting. She said that she was also a member of the Tourism Council and
she also spoke in strong support of the project. She commented on the importance of creating new jobs and
asked the Council to continue to move forward.
Jerry Fundytis, 12004 North Sundown, Scottsdale
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Mr. Fundytis addressed the members of the Council. He said that he was the owner of an adjacent 30-acre
parcel located just down the road from the project site. He expressed disappointment over the fact that he was
liar not "brought into the loop" regarding this situation and spoke in support of the project and its positive impacts
on the entire community. He noted that he was not involved in any of the negotiations that took place regarding
what was in the best interest of the area and added that he was forced to have all of his homes "clumped up" on
the top of his hill. He said that it appeared that the developer was being required to place all of his high-density
at a certain location. He added that there were then nine to ten acres between that were not being used and
questioned whether it would make more sense to spread the project out more. He requested that the Council
consider allowing more of the unused land to be used to spread the project out and expressed the opinion that
this would result in a more aesthetically pleasing development.
The Mayor thanked all of the speakers for their comments.
Mayor Beydler addressed Mr.McGuire. In accordance with Mr. McGuire's earlier comments,it appeared that it
was his opinion that all of the other agenda items flowed from the Development Agreement. He asked him to
comment on whether he would advise the Council to consider Agenda Items 8 through 11 without benefit of
having a final Development Agreement in place. He commented on the recommendation that was made relative
to completing the agreement within a few days and scheduling a Special Meeting and asked for input and
guidance from the Town Attorney.
Mr. McGuire reiterated that he believed that the deal was in the Development Agreement itself but said that if
the Council chose to move forward without benefit of reviewing the final contents of that important agreement,
they could of course do so. He noted that timing issues were in effect anyway since the Agreement must be
pretty much completed by the end of next week in order for the Council to receive and review the information
prior to the March 6th meeting. He stated the opinion that scheduling a Special Meeting would not solve the
problem and added the opinion that everyone's desire was to turn this matter around as quickly as possible. He
added that he believed that the matter would progress rapidly and that allowing the Council to review the final
Agreement prior to rendering a final decision was an important component of the overall process.
Councilman Kavanagh said that he believed that the project was a good one that would be even better as all
parties came together. He added that based on comments from the Town Attorney as well as the Town's lead
Staff member relative to the importance of having a final Agreement in hand prior to proceeding, he was
prepared to make a motion at this time.
Councilman Kavanagh MOVED TO CONTINUE ITEMS 7 THROUGH 11 to the March 6, 2003 Council
Meeting. Councilwoman Stevens SECONDED the motion.
Councilman Archambault said that he had hoped that the revised verbiage contained in the Development
Agreement was not all that critical but stated that apparently it was very important, as stated by the Town
Attorney, that the Council have an opportunity to actually review for themselves the changes that would be
made. He added that for this reason he would reluctantly support the motion for a continuance and encouraged
everyone to move this matter along as quickly as possible.
Councilman Melendez stated that much of what we do in life was about "presentation" and said that he had a
very positive feeling about this project. He referred to an article that appeared in the Arizona Republic about the
project, the developer, and Fountain Hills and said that the story presented the Town in the highest regard. He
spoke in support of continuing to generate positive advertising and said that he supported the continuance. He
agreed with Councilman Archambault's comments relative to proceeding as quickly as possible.
Mayor Beydler agreed that the residents of Westridge Village should have their issues adequately addressed and
stated the opinion that a willingness existed on the part of the Council, the applicant, and Staff to do their very
best to accomplish this. He said that as a former homeowner in that area, he was aware of the subdivision's
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uniqueness and quality of life and stressed the importance of maintaining those high standards. He added that
he hoped that the final agreement was one that everyone could live with and one that positively impacted the
Town of Fountain Hills for many,many years to come. He commented that he would support the motion.
The Vice Mayor thanked Staff for their diligence and attention to detail and also thanked everyone present for
their patience and input.
The motion CARRIED UNANIMOUSLY.
(Mayor Beydler declared a five-minute recess at 8:25 p.m. and the meeting reconvened at 8:35 p.m.)
AGENDA ITEM #12 - PUBLIC HEARING TO RECEIVE COMMENTS ON ORDINANCE 03-06 TO
ALLOW REZONING FROM RI-43 TO C-2 ON LOTS 5 AND 6, FINAL PLAT 412 B, LOCATED AT
19000 EAST SHEA BOULEVARD INCLUDING A REQUEST FOR THE ABANDONMENT OF THE
NON-VEHICULAR ACCESS EASEMENT ON THE SHEA BOULEVARD FRONTAGE AND THE
DEDICATION OF A NEW NON-VEHICULAR ACCESS EASEMENT ON FIREBRICK DRIVE.
CASE NUMBER Z2002-12.
Mayor Beydler recessed the Regular Session and opened the Public Hearing at 8:36 p.m.
Senior Planner Denise Ruhling addressed the Council regarding this agenda item and provided an overview of
Staffs report. She also discussed the history of this case and stated that similar submittals for this area had been
presented in the past (1998, 1999, and 2001). For a variety of reasons, the Council had decided not to move
forward with those requests. She noted that in the beginning, one of the reasons for not proceeding was the need
for a General Plan Amendment, which did pass in 2001. She noted that they were talking about Lots 5 and 6
only, not Lots 4 or 7. Ms. Ruhling referred to slides displayed depicting the site's location and surrounding
zoning and said that the applicant was proposing a mix of office, retail, and restaurants. She added that access Nod
would be allowed from Shea Boulevard, with a proposed emergency access still to be negotiated off Firebrick
Drive.
Discussion ensued relative to proposed landscaping that would serve as a "buffer;" the fact that a C-2 Zoning
District represented intermediate commercial zoning and would allow up to 40-feet in height, the fact that the
developer had proposed a maximum height of 25-feet on his building and had stated his willingness to agree to a
deed restriction relative to this condition; the fact that Planning and Zoning reviewed this particular project on
January 23rd at a Public Hearing and input was received from two speakers, both opposed to the rezoning
request; the fact that their concerns were based on anticipated negative impacts (such as lighting, noise,
buffering, etc.) on downtown development and adjacent residential properties, as well as the possibility that a
less intensive commercial zoning district could be installed on this site or a multi-family development, and the
fact that Planning and Zoning voted to recommend denial of the request based on those concerns.
Ms. Ruhling informed the members of the Council that Staff recommended approval of the requested rezoning
from R1-43 to C-2 with the stipulation that Staff and the developer work to address the concerns set forth in the
Engineer's memo, a copy of which was provided to the members of the Council. She noted that the applicant
was present and willing to respond to questions.
Councilwoman Nicola referred to an interoffice memo dated January 8th from Jesse Drake to Town Engineer
Randy Harrel, and asked for Staff input regarding this correspondence. Ms. Ruhling advised that the memo
represented the stipulations referred to by Staff and said that the stipulations were ones that the Town Engineer
would like to see attached to this rezoning. She clarified that most of the stipulations were based upon site
design and would be addressed during the process of building permit or conceptual plan approval. She added vin)
that there were some items that definitely applied to this site as well as some items that might not apply to this
site but said that discussions regarding these issues needed to occur between Staff and the developer. She
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commented on the developer's willingness to work with Staff and the Town Engineer's willingness to work with
the developer. Ms. Ruhling explained that the handwritten notes on the report were hers and represented
11615. questions she wanted to raise with Mr. Harrell.
Mayor Beydler thanked Ms. Ruhling for her comments.
Mayor Beydler advised that this was is a Public Hearing and citizens were encouraged to provide input
regarding this issue. He requested that those citizens wishing to address the Council and who had not already
submitted speaker cards do so at this time.
Arvid Dennis, 16644 Last Trail Drive
Mr. Dennis addressed the members of the Council relative to this agenda item. He stated the opinion that there
was one matter that had not yet been raised by Staff, which should be addressed before this issue continued. He
commented on the fact that on February 5, 2003, petitions to enforce Super Majority Rule were submitted to the
Town. He said that he had thoroughly investigated this issue and believed that the petitions contained a
sufficient number of signatures and letters of protest to enforce this Rule. He stated the opinion that this Rule
had been in effect on this project since it was first brought up for consideration in 1998 and said that at that time
advice was received from an attorney who was now the Town Attorney relative to proceeding in this manner.
He said that this had been the case every year since. He requested input from Staff relative to why this issue had
not been raised and enforced this year. Mr. Dennis explained that the Super Majority Rule simply meant that
20% of the citizens who lived within a certain distance of the project could sign in protest to the proposal and
reported that in this particular case it took six out of the seven Council persons to approve the matter.
In response to a request from the Mayor to provide input, Mr. McGuire advised that over the past few days, he
and Ms. Ruhling had discussed the interpretation of that provision. He stated that the Town's Zoning Ordinance
perfectly mimicked the statutes and said that although people had gone in both directions regarding this issue,
for the purpose of consistency, he believed that an interpretation existed that supported the Super Majority Rule
in this particular instance. He explained that he was basing this opinion on the fact that the statute was left wide
open to that interpretation. He added that he did not see any reason to change it at this point in time and stated
the opinion that the Super Majority Rule should be imposed in this case.
Mr. Dennis thanked the Council for the opportunity to address them.
David Kipnis, 5401 East Van Buren Street,Phoenix
Mr. Kipnis said that he was privileged to serve on the Economic Development Council with the Mayor and
commented that the main thrust appeared to be the need to create more jobs in order to allow Fountain Hills to
grow. He added that unfortunately the reality of the downtown area was that the market for the businesses there
was limited to those who lived here. He said that in order to create new jobs, new revenues must come into play
and stated the opinion that the proposed project represented a unique opportunity for new growth, sales tax
generation and job creation. He added the opinion that businesses on Shea would create a "gateway" into the
Town and said that he believed this project might represent the best possible use for this site. He thanked the
Council for allowing him to present his remarks.
Marcia Shiner, 16406 East Heather Drive
Ms. Shiner addressed the members of the Council. She said that she has been a resident of Fountain Hills for
several years and had witnessed a lot of changes. She commented on her involvement in the real estate
community based on the fact that she operates a local title company, and said she would not like to live on this
property as the owner of a single-family residence and would not want her children to play out in a yard that was
located off of Shea Boulevard. She expressed the opinion that the proposed office complex would minimally
impact the area and was appropriate for that particular location. She added that she felt very strongly that the
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project was needed and should proceed. Ms. Shiner said that she could vouch for the applicant and was his first
tenant in a building he built on Shea. She noted that he did what he said he was going to do within the time
frame he said he would do it in and urged the Council to approve this request.
Wayne Wicklund, 15453 East Golden Eagle Boulevard
Mr. Wicklund asked why past City Councils had approved every single zoning request for MCO-owned
properties and had turned down this zoning request three times. He added that the only property on Shea
Boulevard that was not owned by MCO at the time of the zoning request was this particular parcel. He said that
he was the owner of commercial land located on this site and had plans to acquire more, but had concerns
regarding the long process smaller developers seemed to have to go through versus larger developers, such as
MCO. He thanked the Council for allowing him to present his comments.
Peter Bilyke, 15724 East Sunflower
Mr. Bilyke said that he was an 18-year resident of Fountain Hills and had seen the Town grow. He stressed the
importance of developing a stronger tax base in order to ensure that residential taxes did not increase and stated
the opinion that the way to accomplish this was to attract more businesses. He said that he would prefer to shop
in Fountain Hills rather than travel into Scottsdale and recommended that anyone willing to build on Shea or on
any of the major corridors receive preferential treatment in order to encourage this much needed development.
He commented on the fact that quality commercial projects enhance overall area values and recommended that
the Town increase its tax base with any businesses that were willing to build and promote a business in those
buildings at that locale.
Deanne Durkee, 15034 North Greenhurst
Ms. Durkee addressed the Council and stated that she commutes on a fairly regular basis in and out via Shea NJ
Boulevard and the Beeline Highway and said that it had been a welcome change to finally have the ability to
purchase products to meet her needs at businesses within her own community. She stated the opinion that Shea
Boulevard was a natural business/commercial corridor and added that although at the time the Town was
established many years ago it was with the thought that Shea Boulevard would remain a nice, simple little street,
she noted that it had become a major thoroughfare and not an appropriate location for residential development.
She added the opinion that the land should be rezoned to commercial and commented on the benefits that would
be received as a result of additional businesses at that location. Ms. Durkee said that she personally knew the
developer and he was responsible and would do everything in his power to make sure that the project was
acceptable to everyone involved, particularly the homeowners in that area. She thanked the Council for the
opportunity to present her views.
John Parezanin, 11811 Zgave, S.W., Seattle, Washington
Mr. Parezanin addressed the Council and said that he had been looking to relocate to Fountain Hills and
commended them on the most beautiful community he had ever seen throughout his extensive travels. He
expressed concerns relative to the lengthy amount of time development required and noted that time equals
money. He stated the opinion that this case is a "no brainer" and the property should without question be
rezoned commercial. He noted the benefits that would be realized as a result of the rezoning and urged the
Council to move forward without delay on this matter. He added that three homes at most would be impacted
by the project and emphasized that the benefits far outweigh any negatives. He expressed appreciation to the
Council for allowing him to comment on this matter.
Jack Cranmer, 9064 N. Firebrick Drive
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Mr. Cranmer addressed the Council and said that he was the owner of the top house that looks down on this site.
tilbe He was opposed to the project unless he could be provided assurances that appropriate buffers would be put in
place to eliminate the impact of lighting and other negatives that would occur as a result of the project. He
added that he moved into his home only six months ago and this issue was of great concern to him. He thanked
the Council for considering his remarks.
Stewart Rider,the applicant in this case, addressed the members of the Council and said that he was speaking on
behalf of the property owners and had done so for the past four years. He said he was interested in hearing Mr.
Cranmer's comments since he was an adjacent neighbor and stated that he might be unaware of plans to buffer
the development in addition to lowering the profiles to 25-feet with a row of full-grown trees in the right-of-
way, which would eventually block the view of the project from his property. He added that to describe the
proposed buildings as "low profile" would be an understatement and noted that in the project that they
completed across the street, absolutely no lighting escapes from that site at all at any time, day or night. He said
that his projects contained the least impact lighting of any projects built in Fountain Hills.
Mr. Rider provided a brief overview of efforts to rezone this property, which had been ongoing since 1998, and
said that at the current time Fountain Hills was a small town and the people who shopped here at the moment
lived in Fountain Hills, Rio Verde and on the Indian Reservation. He commented on the lack of out-of-town
people coming to Fountain Hills and said that this would be one of the major issues and challenges facing the
Town in the future, the importance of bringing economic well being to the Town. He said that his company
believed in the future of Fountain Hills and is committed to doing everything in their power to promote the
Town as well as the downtown. He added, however, that in the meantime the Town needs revenue and noted
that Shea Boulevard was a 40,000 cars a day commuter arterial and businesses located along that route would
slow the cars down,entice them to stop and spend money, and benefit the entire Town.
Mr. Rider discussed a number of immediate economic benefits that would result if the project went forward and
noted that every single lot along this route had been zoned commercial except these three parcels, the only three
not owned or controlled by MCO Properties. He expressed the opinion that it was time that small developers
received equal treatment and advised that the people had owned the property and paid taxes on it for the last 25
years, knowing at the time they purchased it that houses would never be built on it. He also discussed comments
made by previous Council members relative to the fact that new residential development had taken place on
Shea Boulevard in Scottsdale but pointed out that what they failed to realize was that there was a 100-foot
setback from the right-of-way to the sound barrier of those new houses. He explained that if the same 100-foot
setback were imposed on these properties, you would find yourself on Firebrick Drive.
Mr. Rider informed the Council members that four years ago they had the property pretty well leased, 60%
committed at the time of the rezoning request, and said that it was his first time in conducting business that he
had ever failed in a rezoning effort. He commented on his confusion regarding what took place and stated the
opinion that no justification existed for locating single-family residential property on an arterial of this size. He
reiterated that every other property on this street had commercial buffering residential and noted that housing in
Arizona takes up more land than any other form of development, with commercial properties representing less
than 10%. He noted that commercial property was built to decrease vehicular traffic, reduce carbon emissions
from cars, and to allow people to shop closer to home. He stated that what they were faced with was 40,000
cars a day "going past" Fountain Hills and said that if even 100 or 200 of those cars could be interrupted and
money was spent,this would result in positive impacts on the entire community.
Mr. Rider referred to slides displayed in the Council Chambers depicting the four lots and said that Lot 4 was
located to the west of the site. He explained that the lot was unbuildable and never should have been designated
a legal building lot. He stated that they had agreed to pursue the purchase of the lot and said that if successful
they would donate it to the Town to be preserved as open space. He emphasized that Lot 4 would never be
included as part of the commercial development. He also commented on Lot 7, located to the east, which had
been in escrow and was included in the 1998 application. He noted that they had been unable to hold that
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property in escrow. He reported that an understanding had been reached regarding reciprocal easements,
vehicular access and parking. He stated that as of the start of this meeting, he was informed that the Super
Majority Rule would not apply and indicated concern regarding this reversal.
Mr. Rider said that he had held conversations with Mr. Dennis and his objections were based on the fact that he
was opposed to the rezoning of any residential property for any reason. He stated the opinion that this view was
unrealistic for a community that has grown in population from 750,000 in the metropolitan area since he had
been here to over 3 million. He commented that out of all the properties he had dealt with throughout his career,
this one should certainly be a "slam-dunk" for commercial. He said that they had been asked several times in
the past to consider multi-family uses and said that this type of use was considered a step up from single family.
He added, however, that if he was a neighbor and someone was proposing to develop a high-density multi-
family project at that location, to be accessed by Firebrick Drive, consisting of two-story minimum units 45-feet
in height, he would object strenuously and commented on resulting decreases in property values. He noted that
one of the prime issues surrounding the buffering of residential properties with commercial development was
that it insulated the residential properties from problems that occured in the public venue. He discussed criminal
activities and said that since he developed the property located across the street from the site under discussion,
three break-ins had occurred. He said it would not be unreasonable to think that if there were houses built along
Shea Boulevard, that the activity would continue to take place on up the hill. He said that a commercial project
was completely different in character and created an ideal buffer.
Mr. Rider said that his only concern, should the Council approve the request, had to do with a number of the
stipulations recommended by Staff, but said that most of them he believed they could live and work with. He
summarized by saying approval of this request would present one of the fastest methods of generating revenue
and improving the "gateway" into the Town. He thanked the Council for the opportunity to address them.
In response to a question from Councilman Kavanagh relative to the design of the building, Mr. Rider stated that
his intent was not to build a fast food complex, but rather highway retail and office space, which was the NI)
company's specialty. Councilman Kavanagh, speaking to Staff, said he would like some assurance that the
finished product would be of the caliber described and being presented by Mr. Rider at this time, rather than a
structure that looked more like a 7-Eleven or a Taco Bell.
Mr. McGuire advised that the proposal represented a straight rezone to C-2 and explained that once a C-2 use
had been approved, all of the uses that fell under that category were applicable. He added that the Town was not
permitted, in accordance with State law, to dictate a limited C-2 use for this property and added that all C-2 uses
must be uniform in their application. He said that Ms. Ruhling could list the uses that were available under this
designation but reiterated that they could not discriminate against any C-2 use once that category of zoning had
been approved.
Ms. Ruhling concurred with Mr. McGuire's comments and said that if it were the desire of this applicant to
waive this concept plan and turn around and sell this property tomorrow, then they were open to any use that
could be allowed in C-2. She added that the Town of Fountain Hills had not adopted any type of architectural
control measures.
Councilman Kavanagh asked whether the applicant could voluntarily tie a design like this to the building,
ensuring that a future buyer would have to meet this standard. Mr. McGuire responded that although the
applicant might encumber his property in any manner he chose, the Town of Fountain Hills could not require
this as a stipulation for approval.
Mr. Rider noted that the last three applications on this parcel have been for C-1 zoning and said that the only
reason the Council had an application for C-2 before them this evening was that the Town's Director of Planning
requested that the change be made based on the fact that it would be more advantageous to the Town. He added
that the change from C-1 to C-2 was in response to the Director's request. Ms. Ruhling said that this was her
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understanding as well and advised that C-1 zoning would be limited commercial and would not allow a
co, restaurant per se or outdoor seating. She added that it would allow smaller retail shops.
Mr. Rider commented that one of the major reasons for agreeing to change the application and request C-2
zoning was that under this designation a restaurant could be developed. He stated the opinion that a good
restaurant on Shea Boulevard could be a very viable idea for the Town, particularly in view of the high traffic
counts. He also discussed the fact that the Town did not have any architectural controls in place but said that his
company's taste and ability to deliver a quality project speaks for itself and an example of that was located right
across the street.
Mr. Kavanagh asked whether he would be satisfied if C-1 zoning was approved for the property and Mr. Rider
said he would but did not want to have to go through the lengthy process all over again.
In response to a question from Councilwoman Stevens, Ms. Ruhling advised that should the proposal go
forward, the concept plan would have to be reviewed by Planning and Zoning. Councilwoman Stevens referred
to Page 3 in her backup materials where it stated that Mr. Rider met with the homeowners' association. She
noted that it said that backup letters were attached but said they were not part of the packet materials. Mr. Rider
apologized and explained that the reference to the meeting and copies of the letters were part of the last
application and should not have been included in the current application packet.
Ms. Ruhling clarified the differences between the commercial zoning districts and stated that commercial zoning
districts in C-1, C-C, C-2 and C-3, cover all of the issues that had been talked about so far and would allow
anything from banks to photo studios and included a restaurant. She added that the only difference in the C-1
Zoning District was that you could not serve alcoholic beverages in a restaurant in that District. She confirmed
that professional office uses and public as well as quasi-public uses were allowed. She said that the C-2 Zoning
District uses included car washes, drive-in restaurants,refreshment stands, liquor stores, and hotels and motels.
Councilman Kavanagh asked whether there was any way that the applicant could be approved for C-1 zoning
PP
without causing further delays. Mr. McGuire stated the opinion that a determination would have to be made that
the change in the request for zoning from C-2 to C-1 did not represent a substantial change in the zoning case
because it was a less intense use. He added that he was not sure that he was comfortable with that interpretation
and asked whether the Council believed if the case had been advertised as C-1 instead of C-2, a different group
of people with their individual concerns and comments would have shown up at this meeting. He added that this
was a "gray" area and said that if the Council decided to move in that direction, he would like to reserve the
right to address them on that in a few minutes.
Councilman Kavanagh stated the opinion that the only person who might object to such a proposal would be the
owner or the developer, due to the fact that a certain amount of flexibility would be lost, and added that he did
not believe that local residents would be upset because a small retail shop rather than a car wash would be
developed. Mr. McGuire agreed in concept that it was reasonable to believe that there would not be any
opposition.
Arvid Dennis, 16644 Last Trail Drive
Mr. Dennis addressed the Council and refuted a statement made by the applicant that he was against all
rezoning, whatever and wherever it was. He clarified that what he did say was he was against the rezoning of
single-family residential properties into commercial or retail when it was harmful to the residents' property
around it. He thanked the Council for allowing him to clear this matter up.
Mayor Beydler closed the public hearing at 9:24 p.m.
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AGENDA ITEM #13 - CONSIDERATION OF ORDINANCE 03-06 TO ALLOW REZONING FROM
R1-43 TO C-2 ON LOTS 5 AND 6, FINAL PLAT 412B LOCATED AT 19000 EAST SHEA
BOULEVARD INCLUDING A REQUEST FOR THE ABANDONMENT OF THE NON-VEHICULAR
ACCESS EASEMENT ON THE SHEA BOULEVARD FRONTAGE AND THE DEDICATION OF A
NEW NON-VEHICULAR ACCESS EASEMENT ON FIREBRICK DRIVE. CASE NUMBER Z2002-12.
Mayor Beydler asked whether there was a motion to approve this Ordinance.
Councilman Kavanagh MOVED to approve Ordinance 03-06. Mayor Beydler asked whether the motion was to
approve C-1 or C-2 zoning. Councilman Kavanagh clarified that the motion was to approve the original C-2
zoning. Councilman Archambault SECONDED the motion.
The Mayor stated that there was a motion on the floor to approve C-2 zoning. Councilwoman Stevens indicated
that she has reservations regarding this and added the opinion that the time was not right for this type of project.
She added that she had concerns relative to the C-2 zoning but emphasized that she was not interested in seeing
any more car washes, automotive repair shops, fast-food restaurants, bars or liquor stores. She stated the
opinion that C-1 might be a better use but noted that it was a competing use for the downtown area. She
reported that she recently learned that the proposed theater in the downtown area would not go forward and that
another property had pulled out because of that. She emphasized the importance of "nurturing" what had
already been started in the downtown area and added that office/retail would represent a competing use.
Councilwoman Stevens noted that under C-2 zoning they were proposing a restaurant and pointed out that there
was a restaurant pad at Target's that had not yet been leased. She added that although she would like to see
more tax dollars generated, Fry's and Target's were not yet totally leased and spoke in support of "nurturing"
those properties and ensuring that they were totally leased prior to adding any new competing commercial uses.
Councilman Melendez stated that throughout his business career he had always found that competition brought
out the best in people. He added the opinion that a project such as this was long overdue and said that there was
no way that traffic along Shea Boulevard was going to negatively impact downtown development. He
emphasized the importance of being business development minded.
Councilman Archambault reminded the Council that the General Plan was revised not that long ago to
specifically address this particular area. He noted that it was determined that the area should be commercial and
added that he believed it was prudent and appropriate to move in this direction as quickly as possible.
Vice Mayor Ralphe said that she has been taking notes and had generated a good list of positives, including the
fact that 40,000 cars a day drive along Shea Boulevard. She added that this was no place for a home. She said
that one neighbor wanted to see adequate buffers go in and brought up the issue of lights. She said it was her
understanding that the developer intended to go to great lengths to provide buffering and ensure that lighting
was stringently controlled and did not impact the neighbors. She commented on a statement that was made
relative to the fact that the building would not be very tall, and although 40-feet was a possibility; the applicant
was willing to stipulate the building would be no taller than 25-feet. She also noted that the developer had
indicated he would accept either C-1 or C-2 zoning. In summary, the Vice Mayor stated the opinion that the
proposed use appeared appropriate for this location and indicated support for proceeding.
Councilwoman Nicola agreed that the proposed use was a more appropriate use for the land but added that she
supported C-1 zoning but would vote for C-2 if that were the consensus of the Council. She said that she would
personally like to see office space be developed rather than more restaurants and some of the other approved
uses for that district. She added the opinion that the project would provide jobs, generate revenues and provide
convenient access to needed services, and emphasized that economic development was the name of the game.
She also agreed with Councilman Melendez's statement that the project would not impact downtown
development. Councilwoman Nicola told the residents that she did empathizes with their situation but believed
that the proposal represented the most common sense use for property at that particular location.
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Councilman Kavanagh advised that Mr. McGuire had indicated that he had reviewed the matter and believed
L. that the Council could vote upon a C-1 amendment.
Councilman Kavanagh MOVED TO AMEND the previous motion to change C-2 zoning to C-1.
Councilwoman Nicola SECONDED the motion.
Mayor Beydler clarified that the Council had an amendment on the floor to change the motion from C-2 to C-1.
He explained that the process that had been followed in the past was that if the Council persons that made the
motion and second agreed with the amendment, the formality of having to vote on the amendment went away.
Discussion ensued among the members of the Council and it was determined that they would vote on the
amendment.
Mayor Beydler asked if there was any additional discussion prior to voting on the amendment.
Councilman Kavanagh stated the opinion that this would lessen the impact on residents in the area and added
that since the developer had indicated that C-1 zoning was his first choice, he believes that it was reasonable and
appropriate to proceed in this manner.
Councilman Stevens commented that because this represented a major change, she would like to open the matter
up once again to the public and allow anyone who would like to present comments relative to C-1 zoning versus
C-2 to do so at this time.
(The Town Clerk indicated that speaker cards had been submitted to speak on this agenda item. She read out the
names in an effort to see whether any of the citizens still wanted to address the Council.)
Phyliss Kern, 15848 E. Centipede Drive
Ms. Kern addressed the Council and said that approximately one month ago, at a Chamber of Commerce
breakfast, she made the comment that the City Council needed a miracle. She added that she believed that
during the last month that miracle had occurred. She said that she was responsible for putting this project
together and added that it had been in escrow for over four years. She said that she owns homes and a business
in the downtown area and had no fears whatsoever that the area would be negatively impacted by the proposed
project. She commended the Mayor, the Vice Mayor and the members of the Council for allowing needed
changes to occur. She reiterated her strong support for the project and asked the Council to vote in support of
this proposal and ensure positive impacts on the Town for years to come.
Marilyn Zubek, 9253 N. Firebrick Drive
Ms. Zubek addressed the Council and said that she is the owner of the condominium that would face this
project. She stated that it was her understanding from the developer that there would not be any development on
Lot 4, that it would remain vacant, and asked for confirmation on this point. She added that she was also
wondering whether anyone knew approximately where the building would start.
Mr. Rider responded to Ms. Zubek's questions, confirmed his intention to purchase Lot 4 and turn it over to the
Town to remain open space in perpetuity. He also referred to a project rendering displayed in the Council
Chambers and provided a brief overview of the project and its location. He also assured Ms. Zubek that the 25-
foot height restriction would be adhered to.
Councilman Kavanagh said that it was his understanding that the developer did not own Lot 4. Mr. Rider
confirmed that statement and said that their intent was to purchase the virtually un-buildable lot from MCO
Properties and deed it over to the Town so that the parcel could be added to its inventory of open space.
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Ms. Ruhling clarified that the C-2 zoning district had a maximum height of 40-feet; however, if the Council
amended the motion and changed the zoning to C-1, the maximum building height allowed would then be 25 411)
-
feet, which was what the applicant had agreed to.
The Mayor thanked the speakers for their comments.
Mayor Beydler said that there was an amendment on the floor to change the zoning to C-1 and asked if there
was any further discussion from the members of the Council. There being none,the Mayor called for the vote.
The amendment CARRIED UNANIMOUSLY.
Mayor Beydler requested that the Council now cast their votes on the main motion.
Councilwoman Stevens said that she had been opposed to C-1 all along but believed that the writing is on the
wall. She stated that to Mr. Rider's credit, he had come a long way with this proposal and had done much to
alleviate both Town and citizen concerns. She discussed the importance of generating additional revenue and
added that she hoped the project would not compete with the downtown area. She stated that she would vote in
support and told Mr. Rider that she was counting on him to develop the best possible project with the least
impact on the residents.
Councilman Archambault questioned whether the motion that was currently on the floor included Staffs
recommended stipulations. The Mayor confirmed that the motion did include all of Staffs recommended
stipulations.
The Mayor called for the vote. The motion CARRIED UNANIMOUSLY.
AGENDA ITEM #14 - CONSIDERATION OF A REQUEST FOR PROPOSAL TO SOLICIT BIDS TO
CREATE AN "AVENUE OF THE FOUNTAIN" CONCEPT PLAN.
Senior Planner Denise Ruhling addressed the Council relative to this agenda item and advised that the Request
for Proposal (RFP) was generated by a request from the Downtown Consensus Team to upper Staff and the City
Council to create a concept plan for the Avenue of the Fountains area. She reported that following extensive
research, meetings,cooperative efforts on the part of varied groups and individuals, Staff developed the proposal
for an RFP that was currently before the Council. She noted that she had received a number of calls from
citizens with questions regarding this proposal and said that she would like to take a few minutes to clarify a
couple of items.
Ms. Ruhling reported that Staff was suggesting that the RFP be sent out by March 1, 2003, with a response
deadline of April 1, 2003. She said she had contacted a couple of companies that had shown interest in this
proposal and they had assured her that they were comfortable meeting the two-week deadline response time.
She emphasized that the dates were merely suggestions from Staff and said that they would like to present an
approved Concept Plan to the Council by July or August. She pointed out that the RFP included a request for
the development of three separate concept plans that should address various issues. She commented on the
extensive research and public meetings that would be held in connection with this plan and noted that members
of the Downtown Consensus Team, members from the Chamber of Commerce, Plat 208 and many others had
been included in the process.
The Mayor asked whether there were any questions for Staff or if any members of the Council wished to
comment on this issue. There being none,the Town Clerk read out the names of citizens who submitted speaker
cards on this Agenda Item. The Mayor said that prior to allowing the speakers to present their comments, he
would ask for a motion on this issue.
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Councilwoman Nicola MOVED to approve proceeding with the Request for Proposal (RFP) and Councilman
(1110, Melendez SECONDED the motion.
Alice Sudal, 16420 Bainbridge Avenue
Ms. Sudal addressed the Council regarding this agenda item and said that she would encourage downtown
economic development. She added that she was not sure what would be presented as far as the Coalition, but
she would like to see a cap placed on this proposal to bid. She expressed the opinion that spending $50,000 on
proposals and getting back only an idea of what it would look like appeared wasteful. She stressed the
importance of taking care of the businesses that were currently operating in the downtown area and allocating
some of these funds to them so that they can obtain some measure of immediate relief. She also requested that
the Council consider using an in-Town source to carry out this proposal and stressed the importance of allowing
those dollars to remain within the Town. She thanked the Council for allowing her to address them.
Walt Franklin, 16937 East Nicholas Drive
Mr. Franklin addressed the Council and spoke on behalf of the Downtown Development Consensus Team to
express appreciation for the efforts of Town Staff, particularly Denise Ruhling, relative to this project. He said
that all of the Team's ideas and concerns had been taken into consideration. He spoke in strong support of the
proposal as it currently existed and thanked the Council in advance for an affirmative vote on this issue.
Jim Heasley, 14842 Mayflower
Mr. Heasley stated the opinion that if ever a project existed that would have a positive, dramatic impact on
Fountain Hills; this is it, economically and culturally. He noted that the downtown area was the Town's focal
point and stressed the importance of proceeding with this project. He commended Staff on their efforts to date
and thanked the Council for their consideration.
Jerry Kirkendoll, 11405 Cameron Court
Mr. Kirkendoll stated that the Town of Fountain Hills has desperately needed a project like this for many years.
He said that he had drawn up a plan that contained a number of ideas and suggestions that could be
accomplished in accordance with the proposed budget. He outlined a number of items included in his plan and
stressed the importance of ensuring that the character of the Town remained unchanged. He thanked the
Council for allowing him to present his comments.
The Mayor thanked the speakers for their comments and asked if any members of the Council wished to
comment at this time.
In response to a request from Councilwoman Nicola, Town Manager Tim Pickering discussed Section 3a
contained in the backup materials, the composition and responsibilities of the in-house Staff Review Committee.
Councilwoman Nicola said that it was her understanding that the Council would make the final selection but
would not have the opportunity to review all of the proposals that were submitted. She indicated concern
regarding this fact.
Mr. Pickering stated that typically when proposals from different companies were reviewed, this was performed
on a Staff level. He emphasized that any member of the Council interested in reviewing all of the proposals that
were received could certainly do so, but explained that Staff endeavored to summarize the positive and negative
aspects of each submittal and then present that information to the Council along with Staffs (in this case the
Staff Review Committee)recommendations. He pointed out that the Council would make the final decision and
ktily they had the ability to either approve or deny the recommendations that were presented to them. He stated that
he had personally found this summary process to be very helpful for Town Councils.
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Mr. Pickering said that he anticipated that Denise Ruhling and Tom Ward or his designee would be members of
the Review Committee.
Councilwoman Nicola said that in her 13 years as a resident, a lot of public hearings had been held on this issue.
She stated that what was being proposed now was to take$25,000 out of a very limited cache of funds to pay for
a design without providing the public an opportunity to review all of them.
Mr. Pickering clarified that he was speaking to the issue and process of selecting the firm that would then go out
and gather the public input. He noted that the selection process by which the firm would be selected and not the
criteria of the plan that was being presented. He referred to Item 5 in the very first section of the materials and
pointed out that it states, "the firm that is selected has to conduct a public meeting as well as meet with the Town
Council." He reiterated that the process was to select the firm that would be contracted with to hold the pubic
meetings,prepare the drawings, and solicit citizen input.
The Mayor asked if there were any other comments from citizens or members of the Council. There being none,
the Mayor called for the vote.
The motion CARRIED UNANIMOUSLY.
AGENDA ITEM #15 - DISCUSSION AND CONSIDERATION OF SECURING A PUBLIC
EDUCATION CONSULTANT FOR THE PROPERTY TAX ISSUE.
Mr. Pickering addressed the Council regarding this agenda item and said that he had worked on this project,
along with Vice Mayor Ralphe and Councilman Melendez. He stated that they were recommending that the
Council select Bliss Marketing as the consultant for the property tax issue at a cost of approximately $7300 to
$8300 per month for the next three months. Mr. Pickering briefly outlined the process that was followed and Noil)
said that the names of three different consulting firms that provide public education and have experience in this
area were obtained, the companies' credentials were reviewed, including the principals of those firms, writing
samples were reviewed, and the firms were asked to submit proposals. He reported that one of the firms was
selected had been forced to back out, but Staff had reviewed and compared the remaining two proposals. Mr.
Pickering said that their analysis determined that Bliss Marketing firm, which had performed work for the Town
of Fountain Hills in the past, had submitted an extremely thorough, extensive and superior proposal and should
be selected for this issue.
Mr. Pickering informed the members of the Council, that the recommendation to hire Bliss Marketing was also
based on the fact that the issue was an extremely confusing and complicated one and a need existed to ensure
that consistent, accurate information and communication between the Town and the citizens of Fountain Hills
takes place. He stated the opinion that Bliss Marketing's expertise and professionalism would ensure that this
was the type of process that took place and added that it was the responsibility of government to provide
information to citizens on issues that would affect them in such a dramatic way, particularly when vital issues
such as public safety were concerned. He reported that funding for this proposal would come out of the Town's
contingency funds and noted that approximately $50,000 was budgeted for this account (unexpected expenses)
at the beginning of the year. Mr. Pickering reiterated the recommendation that the Council approve the proposal
submitted by Bliss Marketing at a cost of$7300 to$8300 per month for the next three months.
Mayor Beydler commented on the fact that his office has received telephone calls from citizens who were irate
about the amount of money that was being proposed for this purpose. He relayed a story about comments he
received from two citizens who questioned why the Town was considering spending funds to hire a public
relations firm when the citizens were intelligent enough to know what the issues at hand were all about. He said
that he was concerned that a large percentage of the public did know and understand what the Council was 411411)
trying to accomplish and that they were going to get the feeling that big government was "talking down" to them
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and hiring a public relations firm in order to convince them to think in a certain way. He stressed the
importance of exercising caution in this very sensitive area.
Mr. Pickering emphasized the importance of making it very clear that this was not about "selling the issue," but
it was 100% about property tax issue education and trying to provide the citizens with informative, detailed.
accurate and direct information on this very complex, often misunderstood issue.
Councilman Archambault commented on the fact that misinformation and inaccurate statements would occur.
just as they do for any major issue, but stressed the importance of making sure that the most accurate, detailed
information was provided to the citizens for their review prior to them exercising their right to vote. He said it
was imperative that the City Council carry out this education process in a very professional, high quality
manner, and added the opinion that the costs associated with this proposal represented a small price to pay in
terms of the overall benefits that could be received.
In response to a question from Councilman Archambault, Mr. Pickering reported that proposed postage
expenses may range anywhere from a low of$500 for hand delivery or up to$1500 to mail the letters. He stated
the opinion that Staff would be able to keep the cost somewhere in the range of$500 to$750, up to a maximum
of$1,000. He added that this would cover the cost of one mailing consisting of approximately 8,000 pieces.
Councilman Archambault said that he supported the proposal.
Councilwoman Nicola asked whether the 8,000-piece mailing represented just registered voters and Mr.
Pickering confirmed that the pieces would only be mailed to registered voters.
Vice Mayor Ralphe indicated her intention to clarify and confirm a number of things that had been said. She
stated that the Town would be hiring a public relations firm to provide one of the many services that those types
of businesses provide, namely public information and education. She added that it was important for citizens to
know up front that this Council had recently voted in unanimous support of three issues: (1) sales tax; (2)
increased property tax; and(3) an "okay"for citizens to go forward with the intent of establishing a Fire District.
She emphasized the importance of education and providing accurate information on important issues such as
these. The Vice Mayor said that the benefits would far outweigh the costs and she believed that the Town of
Fountain Hills could not afford not to proceed in this manner.
In response to a question from the Mayor, Mr. McGuire confirmed that he would review all of the documents
that would be created by the selected firm to be distributed to the members of the community. Mr. McGuire
concurred that the materials would be generated and distributed for public information purposes only.
Councilman Kavanagh said that he was a very vocal opponent the last time the Town hired a consultant to
communicate with citizens on a controversial issue, the mountain issue, and said that being confronted with this
complex issue and all of the misinformation that was going around, he reluctantly supported the hiring of a
consultant. He emphasized the importance of ensuring that the presentations were factual.
Councilwoman Nicola commented on the three month time period and asked whether the time frame could be
reduced to six weeks or two months maximum. Mr. Pickering stated the opinion that the Town was already
"behind" and stressed the importance of allowing adequate time in which to carry out a detailed, thorough and
well planned educational process. He said that if the proposal were approved this evening, Staff would begin
gathering/disseminating information to the consultant tomorrow and would continue these efforts over the next
three months.
Councilman Melendez commented on the fact that during the interview process it became apparent that the
firms had performed their homework and were already aware of issues at hand. He discussed the fact that
adequate time must be allowed in order to conduct the best possible education process possible.
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Councilwoman Stevens indicated support for proceeding in this manner and providing the citizens of Fountain
Hills with accurate information. She questioned the extent of Town Council's involvement in this process and
asked whether they would have an opportunity to review the video and mailer before everyone else. Mr.
Pickering assured Councilwoman Stevens that all final materials related to the education campaign would be
presented to the Council prior to dissemination to the general public. He added that the Town Attorney would
also sign off on all materials prior to their distribution.
In response to a comment from Mayor Beydler relative to exercising caution and avoiding giving citizens the
wrong impression, Mr. Pickering stated that the purpose in hiring the selected firm was to educate the public.
He said that he believed it was the responsibility of government to ensure that the Town's voters became
educated on issues that would affect the financial future of the community. He emphasized that the goal was not
to "sway" the voters or attempt to "win an issue," but rather to educate the public because it was government's
responsibility to do so. He stated that he would feel very comfortable if the Council wanted to assign (as was
done with the selection)Councilman Melendez and Vice Mayor Ralph to assist in the final approval process.
Councilwoman Stevens said that neither the Town nor Staff could try to influence an election but added that the
members of the Council, however, as individuals, could try to influence an election. She asked whether the
selected firm intended to talk to the Council and provide them with any advice relative to the way they
conducted themselves throughout this process. Mr. Pickering expressed the opinion that the selected firm
should not be advising the members of the Council since they were individuals and could do as they so chose as
far as support for or opposition to the issues. He agreed, however, that the firm could provide the Council
members, as individuals, with tips relative to educating the public.
Councilman Kavanagh said that he would like to have the opportunity to review the proofs before anything was
printed. Mr. Pickering recommended that the Council assign delegates and charge them with the responsibility
of "signing off' on the final documents. He commented on difficulties associated with getting all of the
members on the Council to agree on all of the points and said that this would save time and allow the firm to 4410
carry out the duties they were being hired for.
Councilman Kavanagh stated it is not his intention to "micro-manage" but he did want to be kept in the loop.
Mayor Beydler asked the Town Attorney what the "fine line" difference was between public information, i.e.
education, and elected officials actually commenting and making suggestions relative to the educational
materials. Mr. McGuire said that this was an area where he tended to be extremely cautious and added that this
was why retaining the services of a firm to develop informational packets, with legal and managerial review on
the part of Staff, was both appropriate and necessary.
Councilman Melendez said that two issues existed, the first one was timing and the other was that the process
should proceed as quickly as possible with as few interruptions/delays as possible. He spoke in support of
allowing the selected firm to carry out the responsibilities they were hired to carry out.
Hugh Henry, 15731 E. Sycamore
Mr. Henry addressed the members of the Council and said the anticipated mailing costs for the impact statement
by the County was $6600. He stated that he did not understand the scope of this proposal and asked whether the
firm was going to provide education on all three items or just one item. Mr. Pickering responded to Mr. Henry's
question and explained that a majority of the education provided would relate to the issue that the residents were
going to be voting on at the election, the property tax. He added that when the issue was explained, it would be
necessary to explain the issues that the tax would affect, such as the Fire District and the sales tax that was in
place. He said that although those issues would be a part of the education process, they would not be the focus
of the education.
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Mr. Henry asked the Council whether they would require input from the "Citizens to Save Our Community"
group relative to the Fire District. Mayor Beydler said that from an emotional standpoint, his take would be that
160 a reason existed to equally promote all three pieces of the budget recovery plan. He added that it was a "tool"
that was going to be used and there was not a lot of money available for "tools" right now. He said that on the
other hand, since this was a citizens' initiative, he questioned whether the Town could be in a quandary in an
attempt to promote a citizens' initiative to collect petition signatures even if they had an approved impact
statement. He requested that the Town Attorney provide input relative to this issue.
Mr. Henry said that he was still leaning in the direction of the educational aspect of this and what the benefits
were, as opposed to soliciting or any other type of"sales" nature.
Mr. McGuire stated the opinion that direct involvement on the part of the Committee would be more than he
would be comfortable with and added that they should take some comfort in the fact that the only way to
successfully educate everyone as to what this was all about was to explain the "package" and within that
package was the group of resolutions and ordinances that would move forward together. He emphasized that
part of the information that was critical to get out there was the nature of the property tax and if the nature of the
tax was going to be affected by a third issue, then education needed to be provided that would explain that third
issue.
Councilman Archambault asked whether it would be prudent for the public relations firm to interview the
Citizens to Save Our Community group in an effort to determine their focus and to obtain any information that
might be helpful. Mr. Pickering stated the opinion that this might very well take place.
Mr. Henry indicated that his group would be available to answer questions should the need arise.
Mayor Beydler thanked Mr. Henry for his comments.
fkliw
Councilman Archambault MOVED that the Council approve the proposal to secure the services of Bliss
Marketing as a public education consultant for the property tax issue. Councilwoman Stevens SECONDED the
motion.
The motion CARRIED UNANIMOUSLY.
AGENDA ITEM #16 - COUNCIL ASSESSMENT AND REVIEW OF THE MEETING TO IDENTIFY
PROCEDURAL STRENGTHS AND WEAKNESSES AND DISCUSS POSSIBLE IMPROVEMENTS
FOR FUTURE MEETINGS.
Councilwoman Nicola said that she had two items on her list, the first one she had mentioned before but it had
never really been discussed. She stated that she would like to see a one minute "Call to the Public" at the
beginning of the meeting so that citizens who would like to attend and present their views to the Council could
do so without having to remain in attendance at the meeting throughout the entire session. She informed the
members of the Council that at the last meeting, there were three women in attendance who stayed until 10:45
p.m. in order to state their comments. She added that she believed this would be of great benefit to the citizens.
Councilwoman Nicola stated that her second item had to do with the fact that for seven years now she had
watched people bend over into an uncomfortable position in order to speak into the microphone. She asked the
Town Manager to look into purchasing a taller stand for the microphone so that our "taller speakers" did not
have to contort themselves in order to present their views. Mr. Pickering said that Staff would look into this
issue.
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Councilman Melendez said that he had concerns similar to those expressed by Councilwoman Nicola relative to
the fact that oftentimes in order to present their views, speakers, particularly young couples with children who ,41)
had hired babysitters, must be attendance late into the evening hours. He agreed that this was an issue that
should be pursued.
Councilwoman Stevens questioned the appropriateness of limiting the Call to the Public to one minute intervals
and said that although she was not opposed to it, should it go into effect, everyone should be allowed to take
advantage of this and it should not be provided to only a chosen few. She also expressed concern regarding the
length of the Council meetings themselves and pointed out that it was 10:40 p.m. and the Council was just now
"wrapping" up the meeting. She pointed out that one major item was continued or at least another hour would
have been spent on that issue.
Councilwoman Stevens recommended that meetings in the future not be allowed to run later than 10:00 p.m. and
stated that although agendas were under the discretion of Mr. Pickering, she believed Staff had a good idea as to
what agenda items would require a significant amount of time and which ones would not and she asked that he
limit the agendas in an effort to meet this time deadline. She added that should the meetings last until 10:30
p.m. that would be fine as well, but meetings that end at 11:30 p.m. to midnight are meetings that were running
way too long and they became a hardship on the members of the Council, Staff and the public. She stated that if
the developers gave Mr. Pickering a difficult time, it's "first come, first serve," and if the agenda was filled, their
item would just have to be placed on the next meeting agenda.
The Mayor commented on the Call to the Public suggestion and said that he had noticed that some communities
list the Call right up front on their agendas. He asked whether that might be a more appropriate manner in
which to proceed and added that citizens who wanted to speak on issues such as "gopeds" might in fact come to
present their comments if they knew they didn't have to sit through a three or four hour meeting before being
allowed to do so.
Mr. Pickering stated the opinion that the discussion was a good one and recommended that it be explored further
during Council Procedures since that was the forum in which items such as agenda preparation and format were
addressed.
Councilwoman Nicola clarified that her suggestion was for a one minute Call to the Public at the beginning of
the meeting in order to provide those citizens who could not remain in attendance for the remainder of the
meeting to present their comments. She noted, however, that she still anticipated that the three-minute Call to
the Public at the end of the meeting would remain in place. She added that if there were going to be a 10:00 or
10:30 p.m. cutoff time for meetings, she did not think it was fair to allow citizens to sit through an entire
meeting and then, because of time constraints, not be allowed to express their views. She agreed that this issue
required additional discussion and consideration.
Councilman Archambault commented that one of the points that was stressed this evening was the fact that the
election was exactly three months from this evening and said that he would like to see a report from the Citizens
to Save Our Community, since they appeared to be the driving force out collecting petitions, once or twice a
month. He added that the item should be placed on the agenda and the reports should be kept short, but said be
believed that the item was of great importance and the reports would be beneficial.
Councilman Kavanagh said that at the beginning of the meetings, a statement was made that the citizens could
only turn in speaker cards up to the point that discussion starts but said his understanding from the last meeting
was that as long as the discussion was still going on, citizens could turn in speaker cards. He suggested that the
opening statement be revised so that it is more "in sync" with the process that they wanted to follow at the
meetings.
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Discussion ensued among the members of the Council relative to the fact that as long as the Council was
actually providing input on the issue, and the plaque was up, all citizen comments would be accepted, but once
the Council discussion had ended, the plaque was removed and citizen comments would no longer be accepted.
The Council discussed the fact that what they were trying to avoid was having members of the audience
repeatedly getting up to respond to comments they did not agree with or comments presented by the previous
speaker. The Council noted that this was all part of the effort to ensure that the meetings were conducted in a
professional,respectful and courteous manner.
Mr. McGuire commented on the fact that this evening there were both public hearings and regular agenda items
and speaker cards were submitted for both at times. He recommended that when a citizen turned in a speaker
card on an action item rather than to speak at the public hearing, that the Town Clerk tell them which agenda
item relates to the actual public hearing and ask them whether that was the item they would like to speak under.
He added that during the action item any citizen wishing to submit a speaker card may still do so but at least it
would clarify the public hearing process for those citizens who came to speak under that agenda item. He said
that this would also simplify the order for the speaker cards and limit confusion.
AGENDA ITEM#17- CALL TO THE PUBLIC
Arvid Dennis, 16644 Last Trail Drive
Mr. Dennis addressed the Council and commended them on their actions this evening, particularly for finding a
way to get from C-2 to C-1 zoning.
Hugh Henry, 15731 East Sycamore
Mr. Henry addressed the Council and said he was speaking on behalf of the Chairman of the Committee to Save
Our Community (CSOC). He stated that the document he had in hand (meets and bounds) was unacceptable to
the County and they had advised him that the group was responsible for redoing it. He said that he did not agree
and commented on the fact that the citizens paid taxpayer dollars to remain current and the document should be
up to date. He reported that the Clerk of the County Board had stated that she could not, from this document,
determine where the boundaries of the different communities were and said if this was true, he would like to
know how elections were held and how assessments were determined.
Mr. Henry commented that if this situation could not be cleared up, perhaps he should direct his attorney to file
an injunction that prevented elections and assessments from taking place until such time as the document was
brought up to date. He said that he was willing to forego that in lieu of what Mr. McGuire might have to say
this evening regarding the possibility of correcting this situation but emphasized that this oversight was
preventing the group from moving forward with their impact statement.
Mr. McGuire said that discussions had occurred among the Staff regarding this matter and extensive efforts had
gone into getting the Town's legal description completed. He added that this represented a significant task and
said that potentially they were looking at hundreds of Staff hours in addition to seeking and utilizing the services
of a professional consultant. He reported that the closest they had been able to come to accomplishing this was
a Boundary Survey that was completed approximately a year and a half ago that certified that the boundary of
the Town was as the map reflected. He added, however, that they did not have an official meets and bounds
description of the Town. He commented on the fact that disagreement existed between some of the final plats
that had been platted up against the boundaries between Scottsdale and Fountain Hills as well.
Mr. McGuire commented on the enormity of this task and added that the County uses their own map when
L., determining election districts and assessments and added that the requirement that they were putting forth was
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not one that the Town could easily meet. He estimated that it would cost in the tens of thousands of dollars just
for the services of a professional to assist in this process in addition to hundreds of hours of Staff time.
In response to a question from the Mayor relative to the reasons why this problem existed, Mr. McGuire
explained that the Town had kept up to date on its "volume"but not on its outside boundary and, using a puzzle
as an example, stated that the Town had the pieces that go into the puzzle, they knew which areas were
represented by which pieces, but they had never gone around the outside and confirmed the puzzle's actual
length and width. He explained that the problem was not in necessarily going out and saying "that line runs
from this section to that section so this must be it," they would have to go back to each and every legal
description that had been platted along that one and plot that course to make sure that it matched. He added that
if there were discrepancies,they would have to find out just which way those discrepancies went.
Mayor Beydler asked whether this information was known at the time the Town was involved in a lawsuit over
the Town's boundaries. Mr. McGuire said that the main issue in the lawsuit was "were the boundaries the
same?" He added that then they could take the annexations and the overlay each other and know where they
were. He added that this was where the Boundary Survey came in. He explained that the boundary surveyor
conducting the boundary survey certified that by looking at all of the annexations so that this map accurately
reflects the boundaries of the town. Mr. McGuire indicated his intention to draft a letter for the Council to send
back saying that the Town had in its possession a Boundary Survey that was completed a year and a half ago
and asking whether that will suffice. He added that should the County respond that the survey was unacceptable
and they must have an absolute meets and bounds description, a discussion would have to take place relative to
how Staff should proceed to accomplish this task.
Mr. Henry said that when he spoke with the County Elections people he asked them specifically how they
determined exactly who lives in the Town. He stated that they told him they take the GPS readings in relation to
the assessor's map and determine it from there. He added that if they were willing to accept that, something that "I)
they were already doing, and then this meant it was nothing more than what was in Title 48.
In response to a question from Councilman Archambault, Mr. McGuire stated that a request was received from
Ms. Brown to the Mayor for some assistance on this topic and said he intended to draft a response letter from the
Mayor to Ms. Brown that they could then take down to the County and ask whether what we had in place would
suffice.
The Mayor asked Mr. Pickering whether, if the County accepted the Boundary Survey that was completed over
a year and half ago,he had a plan to bring forward a proposal to address this issue. Mr. Pickering responded not
in the timeframe that they were talking about and commented on the extensive Staff hours. that would be
involved as well as the excessive costs associated with a project of this complexity and size. He indicated that
he would have to have discussions with the Budget Director during the budget season if that was the direction
that the Council would like him to pursue. He added that this project was not one that Staff had planned on
taking place within the next six months that remain in the current fiscal year.
Councilman Kavanagh asked whether the law required that a meets and bounds description be prepared. Mr.
McGuire responded that the law requires an accurate map and legal description of the area. Councilman
Kavanagh asked whether a definition of an accurate legal description existed and he was advised that a meets
and bounds description would suffice but at the current time the Town only had a Boundary Survey. Mr.
McGuire added that there were additional forms of accurate legal descriptions other than meets and bounds
descriptions. He noted that the entire Town of Fountain Hills had not been subdivided and a number of areas
containing un-subdivided land still exists that contain meets and bounds descriptions of their own. He said that
there were meets and bounds descriptions on top of legal descriptions and emphasized the importance of
securing the services of a professional consultant to assist the Town throughout this complicated, extensive
process.
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Mayor Beydler commented on the fact that the process would be "parcel-based," meaning that every parcel that
ran along the boundary would have to be researched and the Town would have to come up with a legal
description for every single parcel. He noted that the City of Scottsdale was in a better position than the Town
of Fountain Hills because they had been involved in a GIS process over the last fifteen(15)years.
Councilman Archambault asked whether the Town of Fountain Hills had ever had a meets and bounds
description done. Mr. Pickering responded that the first one, the original description, was on hand. He noted
that this was done by MCO.
Public Works Director Tom Ward stated that a meets and bounds description was in place when the property
was originally purchased from the rancher who owned the land and commented on the fact that one surveyor
may do things much differently than another.
Mayoi Beydler recommended that Mr. McGuire contact the County himself in an effort to ensure that a meets
and bounds description was an absolute necessity and not simply some obstacle that was being put in place. Mr.
McGuire said that he would be happy to draft a response from the Mayor to Ms. Brown and the citizen
committee for them to forward to the County. He commented that should it become an issue of why this
description was absolutely necessary, he believed that this was the type of situation that the Committee's
attorney should become involved in and that it was not proper for the town to intervene.
Councilman Archambault recalled a conversation he had with County representatives and the fact that they
indicated their willingness to do whatever Fountain Hills wanted in this regard. He added that he could not see
them now putting up a roadblock and said it would be interesting to see if they remained true to their word.
Mr. Henry commented that the Committee had limitations. They did not enter into contracts with anyone, they
did not hire anyone, and statements in yesterday's newspaper were way out of line. He advised that the
L. Committee's purpose was to establish a district and that was their total mission.
Bob Travis, 14218 N. Chinook Plaza
Mr. Travis addressed the members of the Council and stated that the Fire Department had a meets and bounds
for the Fire District. He added that perhaps this could be of use. He stated that he had been a resident of
Fountain Hills for 27 years and served as a member of the Fire Board for 18 years. He read portions of
statements that had recently appeared in a local newspaper, which contained negative references regarding the
past operations of the Fire Board and the establishment of a Fire District. He added that it was time to end the
negativity and move forward.
Rita Brown, 16738 East Nicklaus Drive
Ms. Brown addressed the Council. Speaking on behalf of the Committee to Save Our Community, she thanked
them for their approval of the impact statement that the group had submitted. She indicated the Committee's
intention was to continue holding meetings to educate the residents. She added that they had organized a
committee that would contact every organization and group in Fountain Hills. She noted that by the time the
petitions were ready at the County, everyone would know these two things: First, that those petitions were the
only way to form a Fire District. The Fire District issue would not be on the ballot in May so when citizens
went to the polls in May, they would see only the primary property tax and the Mayoral issue; and second, all
three establishing Commissioners had stated their intention to continue the same service with the same
personnel at the same cost to the taxpayers. She added that the only decision would be which taxing method
guaranteed that tax monies will be used entirely for fire and emergency services.
,, Ms. Brown stated that last fall a public forum was held at which a majority of the residents in the community
had asked for two things, settle the lawsuits and reinstate a Fire District. She noted that in December, the Blue
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Ribbon Commission, which the Council established, recommended the formation of a Fire District as part of a
comprehensive solution to the Town's fiscal problems. She added that this Council had taken a giant step in
response to those citizens. The Council settled two of the three lawsuits and now had cleared the path for the
formation of a new Fountain Hills Fire District. She indicated the Committee's willingness to work tirelessly in
an effort not to disappoint the Council or the taxpayers of Fountain Hills. She thanked the Council for allowing
her to present her remarks.
Mayor Beydler thanked Ms. Brown for her comments.
Vice Mayor Ralphe stated that in response to requests and questions from citizens, she would like to present a
brief report on the Council's plans to improve Channel 11 programming. She said that she and Councilman
Melendez had been charged with the responsibility of serving as catalysts in this effort. She noted that Channel
11 programming included news, commentary, speeches, and more and was the work of many, many Fountain
Hills' individuals and groups from seniors to students. She added that she and Councilman Melendez had
attended many meetings in an effort to develop a structured formation, address technical factors and work
towards achieving high-quality programming concepts. She noted that this structure must be in place before
they could move ahead.
The Vice Mayor said that they hoped that in the not too distant future they would be able to issue an "open
invitation" to everyone in the community to join in, sign on, and participate in this venture. She added that in
the meantime, phone calls and e-mails were still being accepted from anyone interested in volunteering their
services.
Mayor Beydler thanked the Vice Mayor for her update.
Councilman Melendez said that he was very proud to be working with the Council and with Councilwoman
Ralphe. He stated the opinion that they could bring about a number of good, positive changes, both in the area v.
of Channel 11 programming, as well as throughout the community as the concept of working together for the
good of the entire community continued to escalate.
Councilwoman Nicola stated that she had received several e-mails from concerned citizens asking what
happened to the four-way stop signs at El Lago and Fountain Hills Boulevard. She requested that the Town
Manager update the citizens on the status of this issue.
AGENDA ITEM#18 - ADJOURNMENT
Councilman Kavanagh MOVED that the Council adjourn and Councilwoman Nicola SECONDED the motion,
which CARRIED UNANIMOUSLY. The meeting adjourned at 11:11 p.m.
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TOWN OF FOUNTAIN HILLS
By: .�
Jo eydler, ayor
ATTESTED AND
PREPARED BY:
Bevelyn J. Bender,Town Clerk
CERTIFICATION
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular Session held
by the Town Council of Fountain Hills on the 20th day of February 2003. I further certify that the meeting was
duly called and that a quorum was present.
DATED this 6th day of March, 2003.
�t.1 /1, � ? 1 .:ut L •
Bevelyn J. Betlder,'fown Clerk
L
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