Town OKs pre-annexation agreement for property in Pinal County

A rendering of the proposed development area on the northwest corner of Ironwood and Ocotillo roads in Pinal County.

A pre-annexation and development agreement between the town of Queen Creek and CBDG Ironwood LLC for 18.49 acres at the northwest corner of Ironwood and Ocotillo roads was approved earlier this month.

Town officials desire that the property, in unincorporated Pinal County, be annexed into the corporate limits of the town and be developed as an approximately 120,000-square-foot grocery-store-anchored retail center.

The Queen Creek Town Council on Feb. 7 unanimously approved in a consent agenda the agreement with CBDG Ironwood LLC, 4455 E. Camelback Road Suite D-255 in Phoenix, that includes direct reimbursable allowances and credits that, if fully utilized, total $1,350,000 to the benefit of the property owner, according to paperwork with the agenda at

“This agreement will require a budget reallocation from contingency to the Drainage and Transportation Fund for the expenditure authority needed for the reimbursements to be paid to the developer in the amount of $1,350,000,” Chris Anaradian, the town’s development services director, said in a memo to the council that is in the town council’s meeting packet.

The property is within the town’s planning area, according to the packet.

“The annexation of this area will result in one-time and ongoing revenue to the town’s operating budget as development of the site continues,” Mr Anaradian said in the memo. “One-time revenues related to construction sales tax are estimated at approximately $150,000 for later phases of the shopping center. One-time revenues to the town for development impact fees are projected to be $178,000. Ongoing revenues related to the town’s primary property tax and corporate rental tax are estimated to generate $604,000 over the next 10 years. Transaction Privilege Tax collections for the town are estimated to be approximately $8,500,000 over the next 10 years. In addition to these direct fiscal impacts, the center will bring additional temporary construction and full-time employment to the center with planned retail, education and service-oriented uses.”

Some of the provisions in the pre-annexation and development agreement include:

  • Section 1.1 and 1.2 provide the property owner will support the active annexation effort, which includes the subject property.
  • Section 1.4 holds the town harmless from any delays due to challenges to the annexation proceedings.
  • Section 1.5 establishes the duration of this agreement as 10 years.
  • Section 2.1 confirms that the current site plan for the subject property complies with the town of Queen Creek General Plan.
  • Sections 2.2-2.4 provide the town will establish reciprocity with Pinal County’s plan review processes to date on the subject property, and will to the fullest extent possible, minimize additional submittals and reviews as the project develops in the town.
  • Section 2.5 A establishes a cap of $1 million to reimbursable claims for impact fees paid by the property owner to Pinal County for development impact fees related to infrastructure that benefits the town.
  • Section 2.5 C establishes a cap of $300,000 to reimbursable claims for public improvement costs associated with off-site road construction paid by the property as necessary for the completion of the development of the subject property.
  • Section 2.5 D establishes a cap of $50,000 as waivers to administrative fees with the town associated with the completion of the development of the subject property.
  • Section 2.6 provides for the potential inclusion of additional adjacent property to the subject property that may be associated with this agreement’s terms. Does not expand or otherwise change the identified limits on reimbursable claims or fee waivers.
  • Section 4 establishes that the town will not require additional off-site infrastructure to support the planned shopping center as long as the center does not exceed 140,000 square feet in developed area.
  • Section 4.1 establishes use of easements and rights of way. Establishes that the subject properties will avail themselves of Town services for refuse collection, utilities, fire, medical, police and other services provided by the town.

The Queen Creek Independent is mailed each month to 24,000 homes.

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