Town Council Regular and Study Session


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  Item # 1.       
Meeting Date: 07/01/2020  
Submitted By: Mike Standish, Town Clerk's Office
Department: Town Clerk's Office  

SUBJECT:
MATTERS RELATED TO A POSSIBLE AGREEMENT WITH 1) THE CANADA HILLS COMMUNITY ASSOCIATION/CANADA HILLS MASTER COMMUNITY ASSOCIATION AND/OR 2) THE VILLAGES OF LA CANADA MASTER ASSOCIATION GENERALLY ABOUT FINANCIAL CONTRIBUTIONS TO TOWN GOLF OPERATIONS (The HOA  Agreement will be posted prior to the Council meeting)

A. EXECUTIVE SESSION (IF DESIRED OR DEEMED NECESSARY) - PURSUANT TO A.R.S. §38-431.03 (A)(3), (4) FOR LEGAL ADVICE ON THE ABOVE DESCRIBED AGREEMENT AND/OR TO DISCUSS, CONSULT ON, AND CONSIDER ITS POSITION ON THE ABOVE DESCRIBED AGREEMENT

B. DISCUSSION AND POSSIBLE ACTION ON THE ABOVE DESCRIBED AGREEMENT
RECOMMENDATION:
Staff recommends the Town Council approve the agreement with the Canada Hills Community Association/Canada Hills Master Community Association and the Villages of La Canada Master Association as presented.
EXECUTIVE SUMMARY:
In October 2019, the Town Council approved a motion that provided certain conditions and parameters by which the Town would continue to operate and invest in the Town's golf courses. One of the provisions stated:
 
The Canada Hills HOA will contribute up to $100k annually to reduce the tax support necessary for the 36 hole option to include the Conquistador and Canada courses. This will be for a 10 year period limited to 10% of the town’s audited figures for the previous year’s tax support needs. The Villages of La Canada will contribute $25k per year under the same conditions as the Canada Hills HOA. Payments will be made quarterly, beginning July 1, 2020.
 
The Town Manager and Town Attorney negotiated with the representatives of the two HOA's, resulting in the agreement attached.  The agreement provides for a 10-year period with contributions of the $100,000 and $25,000 specified in the motion, but removing the limitations the motion established to no more than 10% of the town's audited figures for the previous year's tax support needs, and instead securing the full contribution for five years with an opportunity to renegotiate additional contributions in year 5 of the agreement.

The agreement further stipulates the Town's commitment to abide by the other provisions of the Council's motions on October 2 and November 6, 2019.  It further provides for the possibility of extending the irrigation investment in the courses one additional year due to the pandemic, should that be necessary.
BACKGROUND OR DETAILED INFORMATION:
N/A
FISCAL IMPACT:
The Town will receive $125,000 per year for five years beginning with FY20/21, which will be placed in the Community Center Fund to be applied toward the tax subsidy of operating the Town's golf courses. 
SUGGESTED MOTION:
I MOVE to (approve or deny) the agreement with the Canada Hills Community Association/Canada Hills Master Community Association and The Villages of La Canada Master Association.
Attachments
No file(s) attached.


    

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