Pre-annexation agreement amended with Banner Health

An amendment to the pre-annexation development agreement between the town and Banner Health accommodating third-party contractors doing work on behalf of Banner was approved in a 4-2 vote of the Queen Creek Town Council on March 7.

Voting yes on resolution No. 1187-18 were Mayor Gail Barney and council members Robin Benning, Jeff Brown and Julia Wheatley. Voting no were Vice Mayor Emilena Turley and council member Jake Hoffman. Council member Dawn Oliphant was absent.

Council members filed back into the chambers and were unavailable for comment after the meeting.

Vice Mayor Turley and Councilman Hoffman did not respond to e-mails seeking why they voted no.

The council approved a pre-annexation development agreement with Banner Health on March 1, 2017, Doreen Cott, economic development director, said in a memo to the council.

Banner Ironwood Medical Center is at 37000 N. Gantzel Road in Queen Creek.

In the agreement, the town agreed that it would provide a development fee credit to Banner in an amount not to exceed $4 million to be applied against development fees otherwise required to be paid, she said.

Banner will be credited the amount of the town-adopted fees that are in place when they pull permits, until the $4 million development fee credit is reached, Ms. Cott said.

Banner is working on a new building that will be developed under a ground lease. It includes a three-story, 60,000-square-foot medical office building, she said.

“In the pre-annexation development agreement Section 10.19 dealing with assignment, the language did not specifically address a ground-lease scenario,” Ms. Cott said.

She wrote that it should be changed to state “Banner may assign this agreement in part or whole at any time … with the town’s prior written approval, a lessee or developer of the Banner property, so long as the lessee or developer agrees to be bound by the pre-annexation development agreement.”

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