CITY OF PEORIA, ARIZONA PUBLIC SAFETY ADMINISTRATION BUILDING, PEORIA ROOM January 17, 2006 A Study Session Meeting of the City Council of the City of Peoria, Arizona was convened at Public Safety Administration Building (PSAB), Peoria Room, 8351 W. Cinnabar Avenue, in open and public session at 5:01 p.m. Members Present: Vice Mayor Bob Barrett; Councilmembers Cathy Carlat, Patricia Dennis, Joan Evans, Vicki Hunt, and Carlo Leone. Members Absent: Mayor John Keegan Other Municipal Officials Present: Terrence Ellis, City Manager; Susan Thorpe, Deputy City Manager; John Wenderski, Deputy City Manager; Neil Mann, Acting Deputy City Manager; Mary Jo Kief, City Clerk; Constance Copeland, Assistant City Clerk; Steve Kemp, City Attorney; Stephen Bontrager, Dave Moody, David Nakagawara, Bob McKibben, Jeff Tyne, Steve Prokopek, Grady Miller, and J.P. de la Montaigne. Audience: Approximately 10 individuals were present. Subject for Discussion only: Economic Development Work Plan Steve Prokopek, Director of Economic Development, introduced representatives from the Economic Development Advisory Board: Curt Smith, Shelley Bade, Keith Dines and Joe Hull. Curt Smith, Chairman, highlighted some of the accomplishments of the Economic Development Advisory Board including establishing the Small Business Services Center located in the Peoria Library and the passage of the Loop 303 Specific Area Plan providing greater opportunities for economic growth in Peoria. Steve Prokopek presented an overview on the accomplishments of the Economic Development Department for 2005. He described the following projects under construction or completed: * Arrowhead Business Park II – 87th Avenue and Kelton Lane * Thunderbird Office Park – Thunderbird Road and 83 Avenue * Arrowhead Commerce Center – 83rd Avenue and Skunk Creek * Arizona Broadway Dinner Theater – 77th Avenue and Paradise Lane * Cibola Vista Resort and Spa * Reliance Development – 91st Avenue and Olive Avenue * Alter Group Project – 83rd Avenue and Paradise Lane * Olive Avenue Industrial Park – Loop 101 and Olive Avenue * Bell Acura – 92nd Avenue and Loop 101 * Berge Lexus – 92nd Avenue and Bell Road * Parke West – Northern Avenue and Loop 101 In response to questions from Councilmember Dennis regarding the percentage of occupancy, Mr. Prokopek reported sixty percent occupancy at the Arrowhead Commerce Center; the Alter Group Project has reported a majority of commitments. Mr. Prokopek added that activity has been good and strong on most projects. The Olive Avenue Industrial project has made good progress. Bell Acura has just started their construction project and Berge Lexus expects to open next month. Councilmember Leone noted that he had been advised that the Olive Avenue Industrial project is all sold out. Mr. Prokopek continued outlining projects slated to commence in 2006 including: * 90,000 square foot office project – 83rd Avenue and Skunk Creek * Phoenix Motor Company – 92nd Avenue and Bell Road * Chili Davis Premier Baseball – 77th Avenue and Paradise Lane * Peoria Station- Downtown Super Walmart Center Mr. Prokopek advised that Walmart hopes to be under construction within six months and open the beginning of next year. Councilmember Hunt asked Mr. Prokopek to ask the developer to address the trash on the property in order to prevent a fire hazard and to maintain unsightly debris that accumulates on the vacant property. Discussion ensued regarding the value of the Small Business Resource Center as an additional resource to businesses, and how the Center addresses issues individuals may have with City Government. Individuals may also contact the Economic Development office with questions related to where to get information from the City. Outlining other activities of the Economic Development Department, Mr. Prokopek noted: * Completed Loop 303 Specific Area Plan and Marketing Strategies * Implemented Small Business Resource Center * Created New Department Website * Downtown Redevelopment – Bank of America/Exxon Mobile site and facilitated a transfer of the County parcel to a private developer In response to questions from Councilmember Carlat regarding projects in the northern part of the City not included in the update, Shelley Bade, Board Member, explained that this report only included activity in 2005. The Vestar project will not break ground until 2006. Councilmember Carlat asked that future reports include these new projects as they will generate a substantial amount of sales tax revenue for the City. Mr. Prokopek stated the goals and objectives of the Economic Development Advisory Board: * Create economic development policies for Peoria * Develop Annual Economic Development Work Plan * Provide economic development project guidance * Act as a resource for implementation economic development policies and projects * Assist with marketing Peoria * Act as an advocate for the Business community Mr. Prokopek stated the mission statement of the Board and highlighted the following 2006 12-month priorities: * Existing Employment Centers – Shift from a developer focus along the Loop 101 to a user focus * Future Employment Centers – Implement Northern Peoria marketing strategies that includes a large campus corporate headquarters component and explore the potential for speculative large floor plate space * Business Advocacy – Continue to work with City Departments to facilitate projects and initiate incident management discussion * Develop Regional Retail Locations – Parke West, Lake Pleasant Road corridor, Loop 303 corridor * Develop Auto Dealerships – complete Bell Road corridor, Loop 303 corridor * Resort Development * Downtown Development/Redevelopment – Assist key projects through design and review * Small Business Resource Program – Enhance services In response to questions from Council, Mr. Prokopek reported that the Greater Phoenix Economic Council (GPEC) is able to focus business attention both regionally and internationally for our City. GPEC’s marketing of Peoria is very cost effective for the City. Mr. Prokopek advised that the Business Resource Program also assists businesses to understand City requirements. The Economic Development Department will also work with the Emergency Management Staff to match equipment and critical services in the event of a disaster. In response to questions from Council, Mr. Prokopek noted that the Economic Development Department will work with the Chamber of Commerce to identify businesses and services that may be able to provide additional assistance to the City in the event of a disaster. Vice Mayor Barrett noted that most major businesses have a disaster recovery business plan in place. Vice Mayor Barrett asked staff to send him an email and he would give them a list of large employers who may be able to provide assistance. Discussion ensued about the 10-mile distance that auto dealerships need to maintain between dealerships. Mr. Prokopek noted that the Vistancia area may be a new auto dealership location and fits the 10-mile rule between dealerships. Mr. Prokopek added that there is interest from the cities of Phoenix, Surprise, Glendale, and Peoria for new dealerships. He added that we are not sure what dealerships have commitments in new areas. Mr. Prokopek discussed the opportunity of the Resort Development along Loop 303 business corridor. He also explained that the Economic Development Department would put on seminars and also work on the disaster plan this year. Discussion ensued about the development of the area at 75th Avenue and Paradise Lane. In response to questions from Councilmember Evans, Mr. Prokopek reported that there are two parcels that have been discussed. One parcel includes a large depression area and there are also issues with the existing bridge. The last developer to look at the property did pass on the purchase because of the potential site costs. Mr. Prokopek noted that the property will more likely be developed as Business Office. Councilmember Dennis asked about the branding proposals developed by Skunk Works for marketing areas in both the north and south regions of the City. Councilmember Dennis also questioned the development of the area at Grand Avenue and Peoria Avenue. Terry Ellis, City Manager, responded that further discussion of the Peoria branding proposed by the Skunk Works Committee was planned for a future Council meeting. Discussion ensued about the importance of branding by drawing redevelopment interest through GPEC and the City web site. Mr. Prokopek advised that the City was continuing to focus on the web site by identifying clients and building our City’s image. He added that corporate executives have advised the City that they are most interested in the hard facts so they can take that information to their respective boards. The City continually asks for input about what is most useful information to provide to prospective clients. Vice Mayor Barrett declared a short recess at 5:45 p.m. Vice Mayor Barrett reconvened the meeting at 5:55 p.m. Schematic Design – Development Services Building Neil Mann, Acting Deputy City Manager and Public Works Director, introduced Staci Sever and Bob Smith of the Design Build Team of Haydon Building Corporation and Dick & Fritsche Design Group. Mr. Mann reported that the Design Team has been working on the project for five months. Bob Smith outlined the four main design goals: * Promoting community service with a welcoming design * Creating a functional and enjoyable work environment * Thinking of the future with potential for expansion * Enhancing Peoria’s City Campus identity Mr. Smith showed a layout of the planned park and the parking locations for the new City building. He explained that the parking garage would accommodate 232 cars with walkways leading to the door. The height of the new building would be the same as the Public Safety Administration Building. He showed views from the back of the building, parking lot, parking garage and the neighborhood. Mr. Smith explained the use of complimentary building materials including masonry, colors and roof tiles so that the new building would retain the similar look to the Public Safety Administration Building next door. Both buildings would be situated as book ends to the new park area. The east side of the new building is designed with more glass to overlook the park. Mr. Smith described the large public meeting room available on the first floor for night meetings and public gatherings. Staci Sever outlined the interior layout of the new building. She described the first floor spaces for Community Development, Community Services, and Engineering Departments and emphasized the ease of access to departments and meeting rooms. Ms. Sever also noted that department design has allowed for 20-year growth and optional functions of departments. There is a minimum of columns to allow for reconfiguration of space. Engineering and Community Development would be separated with glass but permit easy access to both departments. Discussion ensued about the use of good signage so that the public can easily access departments. Ms. Sever reported that the second floor would house the Utilities Department, Public Works, and provide additional public space. Planned expansion in the area was designed as Flex Space to allow for additional build out. Shell Space was also planned on the second floor without light and air features to allow the building to be a certain overall size. Mr. Mann explained it is more cost effective to include Shell Space in the original building plan. The second floor lobby also allows for good access to departments. Ms. Sever highlighted the Traffic Management Center for ADOT located on the first floor of the building that will provide an area out of Downtown Phoenix in the event of a local disaster for monitoring traffic flow. The Traffic Management Center includes a large video wall showing traffic patterns throughout the City. Again Mr. Mann emphasized the large meeting room on the first floor that would allow for seating up to 83 occupants in chairs and 50 occupants seated at tables. He explained that the meeting room was not large enough to hold two meetings at the same time, but other meeting rooms were available in City Hall. In response to questions from Council, Mr. Mann advised that the Traffic Management Center was originally planned for Peoria but it was enlarged to accommodate a backup plan for ADOT in the event of a disaster. Mr. Mann reported that having the Builder on board with the project at this time has helped control the budget. He advised that the project budget is $21.5 million for 75,000 square feet of space. The blended rate is $285 per square foot. At the last project review the budget was $19 million but the increase is due to an increase in construction costs and providing 20-year projection in Flex Space. The building is designed to allow for future staff growth over 20 years. Mr. Mann explained that the estimate is up to $21.5 million; the CIP update report will be available soon. The project will be funded from Impact Fees, Enterprise Funds, and bonding. The project will be brought before Council in September 2006 for approval of the Guaranteed Maximum Price. It is estimated that the building will be ready for occupancy in December 2007. Mr. Mann also reported that the City had also planned to make ADA modifications to the Library Parking Garage. The first bid response was not good. The City may bid the two projects together to get a better bid response. This may delay access to the garage for six month. At the end of this project the City Hall remodel is planned. The City will use the modular buildings during construction. Discussion ensured regarding signage of the buildings, security in the parking garage and a canopy on the second level of the parking garage. Mr. Mann noted that there will be greater access for customers to park closer to the front doors. Adjournment: Being no further business to come before the Council, the meeting was duly adjourned at 6:25 p.m. ____ __________________________________ John C. Keegan, Mayor ATTEST: ______________________________________ Mary Jo Kief, City Clerk City Council Study Session Minutes January 17, 2006, 5:00 p.m. Page 7 of 7 Study Session Minutes March 1, 2006 Page