A
few words about the Granite Dells annexation
Like many people I was surprised at
the sweetheart deal
that our City Council and Mayor gave to the developers of the Granite
Dells annexation, and especially how the Council and Mayor dealt with
the water rights we had acquired with the JWK Ranch
purchase. I was even more astounded when I became aware of
the "smoking gun" aspect. The intention to benefit the developers
at the expense of the taxpayers could not have been more clear as you
will see in the events I next describe.
For reference's sake here is a link to the whole
Agreement.
The relevent part of the Agreement for the "smoking gun" aspect is as
follows: "The City agrees to waive any fees that are in effect at the
time of the annexation." (last sentence of Agreement, item 2, page 2)
This Agreement, a legal binding contract between the City and the
developers, was signed by the Mayor on 12th Day of January, 2004.
A couple weeks later (January 27th, 2004, resolution 3582) the
Council passed, four to three (Simmons, Blair, Roecker and Steward for,
with Suttles, Lamerson and Bell against), a resolution which would
charge the
developers of any large (over 250 acres) annexation a $750 per acre
annexation fee. The
purpose of such a fee is to defray the large costs that the City has to
bear in planning and carrying out its part of the annexation
process. The planning for such a fee had to have been in
existence for some months, and had to be well known in the development
community, to the City staff and to the Mayor and the Council (The
Council Agenda Memo: Consideration of Annexation Fees, was approved by
the Department Head and City Manager on 12/3/03).
Yet, on the eve of enacting this fee (1/12/04), the Mayor signs an
agreement with
the developers, saving them a minimum of $5.25 million dollars! (I say
minimum because City staff actually proposed two fees of
$750/acre, one at the time of the City's signing the development
agreement, and another at the time of actual annexation - it is the
last which was passed.) That's our
money folks, not the developers' and not the Council's or the Mayor's.
Here is a quote from the memo approved 12/3/03, which shows clearly
that the Granite Dells annexation was on the minds of those considering
the issue (paragraph 3 of the "background" section of the memo):
"
For example, the Granite Dells
Ranch, which development agreement was recently brought to Council,
took two years of negotiations to reach that agreement - and there is
yet another agreement (and master plan) which is expected with the next
two years. And Granite Dells Ranch contemplates not having a
complete build-out for possible fifty years! And, because of the
size of the proposed development, Staff will continue to spend an
inordinate amount of time in meetings and negotiations with the
property owner/developer in discussing the fine points of a Master Plan
for the property, another (more definitive) development agreement,
etc. In the case of large annexations, it will be decades or more
before the City sees any revenue from such an annexation."
Please note the exclamation
point at the end of sentence two
above, and the adjective "
inordinate"
in sentence three. Clearly Staff, in recommending a total fee of
$1500/acre, and in the way it phrased the above paragraph, was telling
the City Council and Mayor that the City was incurring large unpaid
cost
servicing private developers, whose projects might well take decades to
return any value to the City.
This is only one of the sweetheart aspects of this Agreement.
Hopefully you will have heard of many more.