Public Meeting Minutes

Joint Review Committee STUDY SESSION September 2, 2015

HARRY E. MITCHELL GOVERNMENT CENTER TEMPE CITY HALL – CITY COUNCIL CHAMBERS 31 EAST 5TH STREET 5:30 p.m.

The Joint Review Committee reserves this time to discuss informally any item(s) appearing on the Public Hearing/Meeting Agenda (including questions/answers), Rules and Procedures of the Committee, and other matters pertinent to the Committee to perform its purpose. Only procedural decisions will be made in the Study Session.

Members Present Staff Present Pam Goronkin, Chair – Joint Representative Ryan Levesque, Deputy Comm. Dev. Director Rudy Bellavia, ASU Representative Alex Smith, Real Estate Development Supervisor Dominique Laroche, ASU Representative (Alternate) Neil Calfee, ASU University Real Estate Dev. Lisa Roach, Tempe Representative Julie Stennerson, Executive Assistant Dr. Kim Charrier, Tempe Representative Ross Robb, Tempe Representative Guests Jason Comer, Tempe Representative (Alternate) John Creer, ASU, Assistant Vice President for Real Estate Development Members Absent Brian Kearney, Catellus Development Corp., Senior Ed Soltero, ASU Representative Development Manager Anne Gazzaniga, ASU Representative (Alternate) Brittney Kaufmann, Tempe Representative (Alternate)

Chair Goronkin called the meeting to order at 5:30 p.m.

1. Arizona State University Athletic Facilities District

John Creer and Brian Kearney gave a presentation regarding the land use plan for the future development of the ASU Athletic Facilities District. The Facilities District is a 20+ year development. The parcel of land includes 330 acres. The Stadium, Wells Fargo, and the parking structure will not be moved during the land development. The golf program will be relocated up north at Papago Park. The baseball program will be relocated to Phoenix Municipal Stadium. All of the other facilities will be relocated throughout the district. The facilities will be improved and will add community benefit. The venues will be opened and available to the community. The physical attributes of the land have been studied and a robust study has been completed of the market, to develop a land use plan. The land use plan will change over time to respond to the market.

The following highlights are from the PowerPoint presentation.

What is the District and why was it created?  University Athletics Facility District (State Law – 2010)

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 Finance renovation and construction of new athletic facilities without use of taxpayer money  Create world-class urban community  Produce financial returns for the university and significant, tangible economic and urban development benefits for city

Building on the long history of support from the Sun Devil community  Critical for ASU to upgrade facilities to remain competitive in PAC-12  Improved revenue generation but still have further to go  Sun Devil Stadium 2nd oldest in PAC-12 and only one not renovated  District creates opportunity to leverage prior support  Minimum $750 million endowment required to match return to be generated from district

What has been accomplished?  Selected Catellus Development Corporation as master developer  Conducted site assessment and due diligence analyses  Completed market study and analyses  Developed Preliminary Master Plan  Conducted stakeholder/public outreach  Initiated first phase activities

Catellus  Master Development Experience – 30 Years  Nationwide – 27 Cities  Projects – 12,000 Acres  Military and Government Redevelopments – 10 Sites

Guiding principles for district planning and development  Urban character  Sustainability  Walkability  Live/Work/Play  Discipline  Quality  Best-in-class developers

Preliminary Master Plan - Land Use Allocation  District runs from the west side of Sun Devil Stadium to McClintock Drive, as far north as the Tempe Town Lake and as far south as University Drive  The 330 acres includes all of the athletic venues with about 140-150 acres of private development opportunity within the area  Develop land use plan, market the plan to the commercial market, long term ground lease individual parcels to developers, majority of the projects will be built by others, serve as ASU’s agent in negotiating long term ground leases  Land Uses  Low (4 stories or less) to Mid-Rise Office (5 – 9 stories)  Mid (5 – 9 stories) to High-Rise Office (10 stories or more)  Hotel  Urban Density Multi-Family  Commercial Mixed Use

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 Mixed Use Retail  Athletics Facilities  The core of the district is east of Sun Devil Stadium to the eastern side of the lots on Rural Road  Rural Road – north/south core of the district, anticipate having the greatest intensity and mix of uses  Rio Salado/Rural and University/Rural – intensive commercial corners  Urban density, multi-family along Rural Road with ground level retail, restaurant and entertainment space  Low to Mid-Rise office development south of Rio Salado Parkway  Mixed-Use community north of Rio Salado Parkway, west of McClintock Drive  Athletic Venues east of Rural – track, tennis, practice fields  An events venue, small arena may be located east of the Wells Fargo Arena for smaller indoor sports  New local streets will be added throughout the district for internal circulation to remove some of the pressure off of the arterial streets as well as intersection improvements  Working with the City on a downtown traffic analysis

First Phase  North West corner of Rural Road and University Drive  Attractive to the market as an office prospective, multi-family, and retailers  Issue a Request-for-Proposals this fall to the multi-family development community  First office project, secure office tenants and a retail component  Parking - multi-family will have its own parking, office buildings/retail will have shared parking

The meeting was opened for questions from the Committee.

Ross Robb asked for clarification on the process the Joint Review Committee would be going through regarding this project as it relates to the master developer and the component projects.

Chair Goronkin stated the intergovernmental agreement creating the MU-Ed (Mixed-Use Educational) Zoning District was designed in 2004 to create an opportunity for the City to participate in design decisions of the University whenever a commercial use abutted the public rights-of-way. The agreement to have representatives from the citizens of Tempe as well as members of the University community and a joint appointee to be approved by both the University President and the Mayor was designed to create a consensus around the approval of design. The Joint Review Committee is the decision making body.

Ryan Levesque explained that around 2006-2007 as a result of the intergovernmental agreement certain properties were rezoned MU-Ed (Mixed-Use Educational). When a project comes forward for non-public university purposes, on ASU land, the project would come forward to the Joint Review Committee. There are certain areas outside of the boundary of the designated zoning district within the Stadium District plan and process. The City of Tempe as well as ASU still needs to meet and confer on the appropriate process for these projects.

Chair Goronkin stated the Marina Heights, State Farm Development fell into an area that did not come to this committee due to ownership and various other reasons. The City of Tempe has great stake and interest in this area. The citizens of Tempe have invested heavily in the Tempe Town Lake. The lake has greatly enhanced property values and has created the opportunity to enhance development.

Ross Robb asked about the infrastructure costs regarding the overhead power lines, the Val Vista water line, the Community Facility District for the property that fronts on the lake, street improvements, and traffic improvements.

John Creer stated they were working with APS for the most economical way to make some of the overhead power lines more attractive, there are places where the lines will need to go underground. ASU will be meeting with the City of Tempe to complete a traffic study. The traffic and parking will increase due to the urbanization but it is important to

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minimize the traffic delays. There are two pinch points to infrastructure; one is getting waste water across the lake, which caps the amount of vertical development that can be done. The other is getting the traffic across the bridge. Dedicated bike and pedestrian paths will be created throughout the district as well as small pocket parks to provide places to rest. ASU will be working with the City to plan the open space throughout the area.

Brian Kearney stated the cost responsibility for the new streets, intersection improvements, as well as water and sewer lines will be repaid through project revenues as the individual projects are developed.

Chair Goronkin stated the Community Facilities District is reimbursed by tenants that front the lake side. The District includes two properties near the lake.

John Creer stated they were viewing the relocation of athletic venues as infrastructure costs.

Dominique Laroche asked if the schools in Tempe would be able accommodate the additional students from the new multi-family projects.

Brian Kearney indicated there would probably be very few school aged kids generated by this particular environment at this location. The projects are not typically built with play grounds or the types of things that are family supportive. Typically families with children do not live in urban type environment areas.

Dominique Laroche asked how solar and sustainability would be incorporated into this program.

Brian Kearney stated discussion has taken place regarding the relocation of the existing solar arrays that sit on top of the surface parking between Packard and the football stadium. The solar arrays will be maintained; however the location has not been determined yet. There will be other opportunities for solar power within the district, possibly on top of parking structures. Other sustainability efforts are to be determined. Catellus plans to work closely with ASU and the Institute of Global Sustainability.

Dr. Kim Charrier expressed her concern regarding a sustainability standard for projects in the district to be brought before the Committee. She asked if ASU students would be involved in the planning process for the development of the district.

John Creer stated the 19 acres included in the first phase of development has been given to the Masters of Real Estate Development (MRED) Program at ASU as their project this year. ASU is interested in receiving input from the students in the program, but they are not a requirement.

Dr. Kim Charrier agreed the multi-family units probably would not attract many families with small children, but there would probably be dogs. Dog parks or open space would be needed as an amenity.

Brian Kearney stated that was an extremely important issue. Currently they are working on a land use plan. The urban design has not been planned yet. The details for a dog park and pedestrian connectivity are yet to come.

Dr. Kim Charrier stated the transportation, ingress and egress of the city center is going to be really important.

Jason Comer asked if the parking would be self-supportive or if it would be shared.

Brian Kearney stated some of the parking would be determined. The multi-family generally speaking would be self- supportive. There would be a good opportunity to create shared parking for the office and retail buildings. The shared parking could also be used for ASU related activities during off hours. Most of the surface parking would be removed and replaced with structure parking. This will maximize the use of the land.

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John Creer stated the office buildings are being placed as bookends to Rio Salado/Rural and University/Rural. Several thousand parking stalls will be delivered with these projects. This parking could be utilized for events on evenings and weekends. These areas are not the heavy demand parking areas for students on a daily basis.

Dr. Kim Charrier asked if free Wi-Fi would be available in the facilities district area.

John Creer stated the ASU campus has Wi-Fi available. He suspects there will be very generous technological advances in the district.

Lisa Roach asked which phases would be next after the first phase near Rural Road and University Drive.

Brian Kearney stated the next phase would be based on market demand. The Packard Stadium site at Rio Salado Parkway and Rural Road may likely be part of the next phase. The properties near Rio Salado Parkway and Rural Road in general may also be a likely scenario for the next phase of development.

John Creer stated they were trying to get income ahead of costs.

Lisa Roach inquired about the commercial/mixed-use land north of Rio Salado Parkway near the base of A Mountain noted on the preliminary master plan.

Brian Kearney stated this type of development at this location is conceptual at this point in time. This land would not be developed in one of the early phases. It could be supported at a later time.

Ross Robb stated as President of the Kyrene School Board, he would like to know if there would possibly be any benefits to school districts or youth sports for the Tempe Elementary, Kyrene and Tempe Union High School Districts. The school districts, youth sports and youth activities are very important to the City of Tempe.

John Creer stated Ray Anderson is committed to opening up the venues to the community. The district should attract more than just local youth events. They want to attract regional and possibly national events as well.

Pam Goronkin stated at the city level, working with developers if tax breaks are offered it is asked in lieu that support is given to the school districts and so forth. She does not believe this has been addressed in the original agreement but it is something for the University to consider as they look at the intensity of development in a way that they could help the quality of education in the City of Tempe.

John Creer stated they are committed to the quality of education.

Ross Robb asked if the golf course would be maintained as a green belt once it closes.

John Creer stated they are building an urban center from the ground up. This is not an urban redevelopment where built assets are being repurposed. As assets are being taken away and moved around it will be complicated. The nice thing about the golf course is that it gives the luxury of room to accommodate tailgating as well as other activities. The University is committed to the appearance and the aesthetics. He is confident once the golf course is closed it will not become a field of weeds.

Ross Robb stated that it is fantastic that Tempe and the University attracted Catellus. Ross had an economic question about the property. Other projects built in Tempe received property tax abatements, land and other incentives. Those buildings started with a head start of the ability to use richer materials, or to take on infrastructure. How will the property compete, other than its relation to the University and how does Catellus ultimately make money as a master developer on a property like this?

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Brian Kearney stated the structure of the district is set up so the funding stream is created for athletic venues that would otherwise be property taxes. These properties never paid property taxes. The University depends upon the revenue stream. This location has some competitive advantages. This gives businesses the opportunity to develop long term relationships with the University. State Farm at Marina Heights and Parkway are good examples of businesses located on this land.

Pam Goronkin thanked John and Brian for the presentation and the overview of the Arizona State University Athletic Facilities District. This is an exciting project that is taking Tempe and Arizona State University in a new and important direction for our urbanization. The Committee looks forward to hearing the proposals once they are ready to be brought forward.

Meeting adjourned: 6:40 p.m.

______Ryan Levesque, City of Tempe Deputy Community Development Director