PRESENT:

Paul Loomis, Mayor Al Kunisch, Vice Mayor Paula Abbott, Council Member K.C. Carter, Council Member Helen Dankwerth, Council Member Barry Gillaspie, Council Member

EXCUSED:

Terry Parish, Council Member

Council Member Gillaspie arrived at 6:25 p.m.

MOTION: A motion was made by Council Member Dankwerth and seconded by Vice Mayor Kunisch to go into Executive Session for the following purpose:
Pursuant to ARS 38-431.03(A)(3) Legal Advice and consultation with Town Attorney for possible negotiation of renewal of Steam Pump Ranch Lease

MOTION carried, 5-0.

Mayor Loomis announced that in addition to the Town Council, the Town Manager, the Assistant Town Manager, the Town Clerk and the Town Attorney, Communication Administrator Mary Davis and Planning and Zoning Director Sarah More would also be present in Executive Session.

MOTION: A motion was made by Council Member Carter and seconded by Vice Mayor Kunisch to go out of Executive Session at 7:00 p.m.

MOTION carried, 6-0.

PRESENT:

Paul Loomis, Mayor Al Kunisch, Vice Mayor Paula Abbott, Council Member K.C. Carter, Council Member Helen Dankwerth, Council Member Barry Gillaspie, Council Member Terry Parish, Council Member

Mayor Loomis led the audience in the Pledge of Allegiance.

Town Manager David Andrews reviewed the upcoming meetings and events.

Council Member Gillaspie announced that Carolyn Campbell will be making a presentation at the Oro Valley Library tomorrow night at 6:00 p.m. regarding the Sonoran Desert Conservation Plan.

Donna Emch, non-Oro Valley resident, addressed the Town’s new crematorium and expressed her concerns regarding possible mercury emissions from the crematorium.

Don Emch, non-Oro Valley resident, addressed the dangers of mercury from possible emissions from crematoria throughout the nation.

Howard Richmond, Oro Valley resident, addressed dog fighting in the country and thanked Council Member Terry Parish for his part in shutting down the dog fighting ring in the Tucson area.  He also addressed the Naranja Town Site and commented on the secondary property tax.  He stated that the Naranja Town Site should have a better name so people will know what the Town is actually talking about.  He asked that the Parks and Recreation Department put together an outline of how this park would be used so voters could better understand the scope of the project.

At the request of Council Member Abbott, Mayor Loomis pulled Consent Agenda Item A for discussion.

MOTION: A motion was made by Council Member Carter and seconded by Council Member Dankwerth to approve the Consent Agenda with the exception of Item A.

MOTION carried, 7-0.

A.	Minutes - January 30, February 6, 20, 27 2008 (PULLED FOR DISCUSSION)

MOTION: A motion was made by Council Member Abbott and seconded by Council Member Gillaspie to approve Consent Agenda Item A.

MOTION carried, 7-0.

B.	Economic Development Division Monthly Report

C.	Transit Monthly Operations Report - February 2008

D.	Cancellation of the August 20, 2008 Town Council meeting due to the Annual League of Arizona Cities and Towns Conference scheduled August 19 - 22, 2008

E.	Resolution No. (R)08-16 Authorizing and approving the Application for the Town of Oro Valley to be designated a Certified Local Government by the Arizona State Historic Preservation Office, thereby making Oro Valley eligible for grant funds available for historic and cultural preservation

F.

Resolution No. (R)08-17 Approving authorization for the Mayor to award a contract for professional engineering services to Kittelson & Associates, Inc. in the amount of $206,425.00 to upgrade 100% design plans (Phase I) for Lambert Lane: La Cholla Boulevard to Autumn Hills Drive, Project No. OV 30 99/00 07 to current conditions

G.	Appointment of Ralph Stein to the Stormwater Utility Commission Board with term effective March 19, 2008 through March 19, 2010

H.	Resolution No. (R)08-20 Canvass of the Votes - Declaring and adopting the results of the Ballot By Mail Primary Election held on March 11, 2008

Matt Michels, Acting Economic Development Administrator, explained that Sanofi- Aventis is currently expanding into a new facility located at Innovation Park.  He then highlighted the following:
~  The project would involve a capital investment of approximately $60 million.
~  It would meet or exceed the Leadership in Environmental Design (LEED) certification and would be the first commercial project to be LEED certified in Innovation Park.
~  Direct job assumption of $7.3 million annually based on 70 new jobs.
~  Total economic impact would be approximately $101 million.
~  The Financial Participation Agreement proposal is for a one-time rebate of 25% of construction taxes (or 1% of the 4% Construction Sales Tax) up to a maximum of $360,000 and would be contingent on the achievement of a LEED certification.
~  Would help create a sustainable development that meets the Town’s goals for environmental responsibility.

Beth Koch, representing Sanofi-Aventis, presented an overview of the Sanofi-Aventis organization.  She then highlighted the following:
~ Sanofi-Aventis is a sustainable development with commitments to protecting the environment, corporate citizenship and access to healthcare.
~  LEED certification for new buildings- Requires 26-32 points - $400,000 - $550,000
    - Silver LEEDS - Requires 33-38 points - $800,000 - $1,400,000 
~ Economic Development Plan -
  -Seeking an agreement with the Town.
  -Share the cost of the local construction sales tax.
  -Oro Valley will receive 4% local construction sales tax (approx. $1.1 million).
  -Sanofi-Aventis is seeking a one time tax relief (1% of the 4% or $276,000 (capped at $360,000).
  -Additional fees
   - Impact and permit fees of $600,000
   - Public Art of $360,000
~ Sanofi-Aventis would use the monies realized from the Financial Participation Agreement towards LEED certification and LEED Silver certification if possible.

Discussion followed regarding the following:
~  Why does Sanofi-Aventis need tax relief since they have already decided to build to LEED certification?  (Goal is to become LEED certified, but tax relief could help them move towards the Silver level). 
~ If Sanofi-Aventis does not achieve LEED certification, then the Town would not provide the requested tax relief.
~ Monies coming from construction sales tax are earmarked to make road improvements in the Town.  Would any projects be delayed? (No).
~ To get an industry of this caliber in the Town, financial participation between public/private sectors is often used to achieve economic sustainability.
~ No policy for high-tech industry in place.  (Community Economic Development Strategy (CEDS) needs to be updated.  The Town currently addresses each item on a case by case basis.  Find a way to provide incentives/reward creation of jobs and attraction of industry that achieves Town’s goals as outlined in the Strategic Plan).

Mayor Loomis opened the floor for public comment.

The following people spoke "in opposition or expressed concerns" regarding a financial participation agreement with Sanofi-Aventis citing such reasons as: the Town should not be giving away its tax dollars, this is a great company but the Town should not be subsidizing them, this company is the third largest pharmaceutical company in the world and should not need incentives, Sanofi-Aventis is already located in here so we are not trying to bring them into the Town:
John Musolf, Oro Valley resident
Geri Oltoboni, Oro Valley resident
Naida Carlson, Oro Valley resident
Sandra Hoy-Johnson, Oro Valley resident
Art Segal, Oro Valley resident

The following people spoke "in support" of the financial participation agreement citing such reasons as: the Town has officially targeted high-tech and bio-tech industry, the Town has targeted Green Building, to encourage businesses to follow the Town’s path is not a bad thing, the benefit of LEED certification can be a condition added to the agreement, this will promote business in Oro Valley, sales tax relief is minimal, presence of Sanofi-Aventis at Innovation Park will help attract other desirable employers, provides a push for them to achieve the Silver LEED certification, scientists at Sanofi-Aventis support the Critical Path Institute’s mission, and the community, region and State will benefit from the expansion of this industry in Oro Valley:
Bill Adler, Oro Valley resident
Lyra Done, Oro Valley resident and representing the Northern Pima County Chamber of Commerce
Neil Simon, non-Oro Valley resident and representing Venture West
Joe Hornat, Oro Valley resident
Ray Woosley, non-Oro Valley resident and representing Critical Path Institute
David Welsh, Oro Valley resident and representing Tucson Regional Economic Organization (TREO)

Council discussion followed regarding the proposed agreement, the Town’s desire to be environmentally sensitive, the LEED certification, the Town’s General Plan encourages environmental sustainability, continuing the item to allow the new Council Members to state their positions on this important matter, need to have a policy in place and if the Town offers incentives the monies need to be identified in the budget.

MOTION: A motion was made by Council Member Parish and seconded by Council Member Gillaspie to continue consideration of the Financial Participation agreement with Sanofi- Aventis to the second meeting in June (June 18).

MOTION carried, 7-0.

Mayor Loomis recessed the meeting at 8:50 p.m.  The meeting resumed at 9:00p.m.

Town Engineer Craig Civalier reviewed the Council Communication explaining that this neighborhood was annexed into Oro Valley in May 2003.  He explained that during pre-annexation discussions with the Homeowner’s Association (HOA), an agreement was reached with Town officials that the Town would accept the maintenance of the streets if the HOA presented clear and marketable title.  He then noted that:
   - Only some portions of the streets were platted and constructed on areas belonging to the HOA.
   - Some portions of the streets were constructed on common areas not dedicated as streets by the final plats.
  - Other portions of the private streets were constructed on portions of individually owned lots.
  - Dedication documents do not include the portions of private streets that have been constructed on privately owned lots and common areas.

Mr. Civalier stated that Town staff has recommended that acceptance of the streets be conditioned on the Town receiving additional documentation to secure clear and marketable title for these private streets.

Discussion followed regarding obtaining road maintenance easements and/or right-of-way easements, assisting the residents and/or the HOA to get easements to the property where necessary, the Town’s Street Standards and the annexation policy and approval of these types of items.

Mayor Loomis opened the public hearing.  There being no speakers, the public hearing was closed.

MOTION: A motion was made by Council Member Carter and seconded by Vice Mayor Kunisch to adopt Resolution (R)08-19 accepting those streets within the Verde Catalina II Town Houses as public streets.  (At the request of Council Member Parish, the following friendly amendment was accepted): The Town Engineer and the Town Attorney will assist and facilitate the Homeowner's Association and the individual homeowners with the additional documentation that is requested (on page 1 of the Resolution and on the first page of the Council Communication).

MOTION carried, 7-0.

Rodger Ford, President of Anthem Equity Group, stated that they are requesting approval of the development plan/preliminary plat for Innovation Commerce Campus.  He explained that they intend to build four buildings of 20,000 sq. ft. each built to a height of 36 feet (maximum height allowed by the Rancho Vistoso Planned Area Development (PAD) and another 10 buildings of 8,000 each at lower heights.  These buildings would be offered to high-tech businesses.

Kim Acorn, Acorn Associates Architecture, stated that they have gone through 16 months of processes, submittals, contacts and meetings with neighbors, working to meet requirements and rules and PAD requirements, Rancho Vistoso Design Guidelines, Oracle Road Scenic Corridor and the Town Code.  He further reviewed the placement of poles that were placed on the property representing the heights of the proposed buildings as was requested by the Town Council.  He then noted that these types of projects are necessary for economic development in the Town and comply with the Town’s General Plan. 

Discussion followed regarding:
 ~ The possibility of reversing the buildings on the property and best use of the land in the way that it is designed.
~ Height of buildings includes screening of mechanical equipment.  Interior height is 26 feet. (Mr. Acorn reviewed screening, parapets, etc.)
~ Compatibility with the neighborhood insured through the Rancho Vistoso PAD (CCR’s and architectural design guidelines), Town Code and Zoning Code.
~ Development Review Board addressed design and architecture.
~ Rip rap, drainage and landscaping in sloped areas.  (Applicant will work with staff to help screen loading zone behind Building 14).
~ Oracle Road Scenic Corridor Overlay District (ORSCOD) (View Shed Analysis conducted). 
~ Campus Park Industrial (CPI) - building heights will be 36 feet.

Planning and Zoning Director Sarah More presented the Council Communication and referred to the viewshed analysis that was performed.  She explained that that ORSCOD protects views from Oracle Road.  She reported that the zoning is Campus Park Industrial (CPI) and the site is approximately 15.23 acres and will be used for professional office and industrial uses.  Ms. More further explained that this project conforms to the General Plan and to the Rancho Vistoso zoning and has gone through all regulatory reviews and approvals.

In response to a question from Council Member Gillaspie regarding ORSCOD and the view corridors, Ms. More explained that ORSCOD protects views along the Oracle Road scenic corridor.  She further reviewed portions of the Zoning Code Revised as they would relate to view corridors.

Mayor Loomis opened the floor for public comment.

The following people expressed concerns regarding the size of the proposed buildings, obstruction of views, large buildings should be built along front of property (Commerce Loop Drive), noises associated with loading docks, semi trucks, two different presentations of plans were not consistent, strategic placement of buildings so there is less impact, devaluation of properties/homes, personal investments, improper addressing of notifications, opposition to design plans and placement of buildings not to the actual development, and Council needs to put themselves into the place of residents affected by the project:
Shirley Barrett, Oro Valley resident
Naida Carlson, Oro Valley resident
Camille McKeaver, Oro Valley resident
Michelle Saxer, Oro Valley resident
Carol Wheeler, Oro Valley resident
Dorothy Bowers, Oro Valley resident (read comments for James Lomas, Oro Valley resident and also commented for herself).
Art Segal, Oro Valley resident

David Welsh, Oro Valley resident, representing TREO, stated that there is a scarcity of this type of project in the region and it is direly needed to continue efforts to bring these types jobs to the area.  He encouraged the Council to approve the project.

Tom Parsons, attorney for the applicant deferred his comments to Mr. Acorn.  Mr. Acorn stated that all of Rancho Vistoso is in the Oracle Road Scenic Corridor Overlay District.  He stated that the zoning was CPI and the residential homes were built in the established CPI district.  He further reported that 140 addresses were provided by the Town and the list was certified by the Post Office and all notices were delivered as they were not returned.  He stated that the schematic plan presented did not change except a building was moved farther away from the neighbors.  The height was changed as prospective tenants expressed the need for additional height for the types of uses they represent.  Mr. Acorn further presented pictures of the types of buffering and architecture that would be provided at the back of the buildings.

In response to a question from Council Member Parish regarding the original depiction of building heights at 25 feet, Town Attorney Tobin Rosen explained that based on the underlying zoning of the property, the proposal does meet the Town’s Zoning Code requirements.  

At the request of Vice Mayor Kunisch, Town Attorney Tobin Rosen read a letter from the applicant’s attorney, Mr. Thomas Parsons from Stubbs & Schubart P.C. Attorneys and Counselors at Law, dated March 17, 2008 into the record.

Discussion followed regarding the possibility of a lawsuit and liability to Council Members and the Town, Rancho Vistoso PAD standards with regard to buffering as it applies to CPI zoning, setbacks and height conform or exceed the requirements of the Rancho Vistoso PAD, entitlements as stated in the Zoning Code, focus of the Courts would be on entitlements of the developer and the substantive provisions of the Rancho Vistoso PAD, hard zoning is in place, mitigation of the impact to the neighbors, and setbacks, site coverage, etc. are clear in CPI zoning.

MOTION: A motion was made by Vice Mayor Kunisch and seconded by Council Member Carter to approve OV12-07-01, Anthem Equity, represented by Psomas and Acorn Associates, preliminary plat/development plan for Innovation Commerce Campus.   (Friendly amendment proposed by Council Member Gillaspie was accepted): Staff will work with the petitioner to put plantings in the rip-rap areas and that the landscape plan already approved by the Development Review Board (DRB) be returned to the Town Council so they can see if there are any areas that can be enhanced to protect views.

Council Members commented on the Rancho Vistoso PAD approved in 1986, their empathy for the citizens, and the laws that allow owners of property to have certain rights.

MOTION carried, 7-0.

Mayor Loomis recessed the meeting at 10:57 p.m. The meeting resumed at 11:06 p.m.

Mr. William Prokes representing Rockridge Apartments stated that as the Town Council requested on February 6th, the applicants have reduced the quantity and size of directional signs.  He reported that the sign package has been reviewed with Town staff. He stated that the applicant would still like to put the main identification sign on Oracle Road and on both sides of Pusch View Lane.  He explained that they have kept the directory map sign, reduced the size of the prospective resident parking and eliminated the sign over the leasing center.

Planning and Zoning Director Sarah More reviewed the site visibility triangles and explained that the signage is outside the current and future visibility areas along Oracle Road. She stated that a comparison has been made with the Zoning Code Revised and the proposed Master Sign Program and there is consistency between the two.  Further, a comparison with other apartment complex signages has been completed.  Ms. More stated that staff recommends approval.

Mr. Prokes clarified that the Pusch View signs were not moved from the original proposal but the site triangles were clarified.

Discussion followed regarding clearing vegetation and working with the Arizona Department of Transportation (ADOT) and signage being placed along Pusch View Lane into the apartment complex. 

MOTION: A motion was made by Council Member Parish and seconded by Vice Mayor Kunisch to approve OV3-07-04, Master Sign Program for Rockridge Apartments.

MOTION carried, 7-0.

Darren Watson, Kimley-Horn & Associates, explained that an Olive Garden restaurant is to be located in the Oro Valley Marketplace and the overall Development Plan for the Marketplace was approved February 15, 2006.  Mr. Watson reviewed the Site Plan, Landscape Plan and architectural elevations.

Planning and Zoning Director Sarah More stated that this item was brought back to the Council due to a change in the layout.  She explained that the developers needed to adjust the pads as the actual buildings came in and some changes have been administratively approved.  She explained that the Development Review Board (DRB) approved the development plan as submitted and staff recommends approval.

MOTION: A motion was made by and seconded by to

MOTION carried, 7-0.

MOTION: A motion was made by Council Member Parish and seconded by Council Member Dankwerth to allow the lease to expire and give notice of 30 days to the resident.

In response to a question from Council Member Carter, Town Attorney Tobin Rosen stated that if any damage were incurred to the property by the current tenant, the Town would have to seek recovery from the tenant after the fact as there is no damage deposit clause in the current lease.

MOTION carried, 6-1 with Mayor Loomis opposed.

Mayor Loomis opposed the motion stating that he felt that there were other alternatives, opportunities and challenges with the move.

MOTION: A motion was made by Council Member Carter and seconded by Vice Mayor Kunisch to adjourn at 11:25 p.m.

MOTION carried, 7-0.