Deputy City Manager/Development Engineering staff presented agenda item 23R, a reimbursable-agreement with the Roman Catholic Diocese of Phoenix covering infrastructure to serve two diocesan parcels in the Peoria Innovation Corridors area.

Staff described the project background: the diocese donated two well sites earlier in the project and dedicated easements; the city has proceeded with roadway and utility construction that now abuts diocesan property (including construction of Lake Pleasant Parkway and Amcor Way). Staff explained the city’s proposal to build the public improvements now and obligate reimbursement from the diocese when the diocese pulls permits to develop the property. Staff estimated that the diocese’s half-street construction costs would be roughly $3,000,000 and that a regional lift-station contribution would be in the order of $800,000. The agreement limits reimbursable items to the roadway, sewer and related improvements and excludes water line costs where the city previously committed to provide water from the dedicated wells.

Staff also noted a 10-year shelf life on reimbursement obligations under city code: the diocese’s obligation to reimburse the city for these improvements expires 10 years after substantial completion of the infrastructure. Staff recommended adoption of the resolution to enter the agreement. Council discussed outreach to parishioners and praised staff’s negotiation. The council adopted the resolution 7-0.