Council Study Session

MINUTES OF THE GILBERT TOWN COUNCIL, IN SPECIAL MEETING FOR A STUDY SESSION, OF TUESDAY, AUGUST 6, 2024, AT 5:00 PM, MUNICIPAL BUILDING I, COUNCIL CHAMBERS, 50 E. CIVIC CENTER DRIVE, GILBERT, ARIZONA COUNCIL PRESENT: Mayor Brigette Peterson, Vice Mayor Scott Anderson, Councilmembers Chuck Bongiovanni, Bobbi Buchli (attended virtually), Yung Koprowski, Kathy Tilque, and Jim Torgeson COUNCIL ABSENT: STAFF PRESENT: Town Manager Patrick Banger, Town Attorney Chris Payne, Town Clerk Chaveli Herrera, Economic Development Director Dan Henderson, Intergovernmental Relations Director Rob Bohr, Principal Planner Ashlee MacDonald, Principal Planner Veronica Gonzalez, Planning Manager Eva Cutro, Development Services Director Kyle Mieras CALL TO ORDER OF SPECIAL MEETING Mayor Peterson called the meeting to order at 5:06 p.m. ROLL CALL Town Clerk Herrera confirmed a quorum was present. AGENDA ITEM 1. Presentation and discussion on Government Property Lease Excise Tax (GPLET). Economic Development Director Henderson stated during the adoption of the Northwest Gilbert Redevelopment Area, citizen concern and outreach indicated that the community’s preference was to not use Government Property Lease Excise Tax (GPLET) on any Town- owned parcels. He said of specific concern was the provision to which the excise tax rate could be abated for the first eight years after a Certificate of Occupancy on the building, if located within a Central Business District (CBD) and Redevelopment Area. He said Gilbert had never used, nor did it plan to use, GPLET abatement tools. He added that in order to address concerns and clarify intent, staff was requesting the Council’s support in removing any potential use of GPLET or tax abatement, pursuant to statute. He added given the requirement for a designation as a CBD in relation to House Bill (HB) 2721, they were recommending adoption of a resolution restricting the use of GPLET tax abatement on government-owned properties. He provided information from Arizona Revised Statute (ARS) § 42-6209 that authorized and incentivized use of GPLET, then provided an example of how a government may use the provision. He noted arguments in favor and against the use of GPLET, then restated with clarity that it was not the way Gilbert wished to use GPLET. He noted the Town had approved establishing a new Redevelopment Area in June 2024, now one of two, the Heritage District Redevelopment Area and the Northwest Redevelopment Area. Director Henderson said there was new legislation proposed with HB2721 that required that municipalities with a population of $75,000 or above adopt regulations related to Middle Housing such as duplexes, triplexes, quadplexes, and townhomes. He said as a first step to the implementation of the new statute, the Town was also seeking to adopt a CBD to identify the area that Middle Housing would be authorized by-right on properties zoned for Single Family (SF). He said the Heritage District was being proposed as the CBD under the new legislation. He provided examples of what HB2721 would allow under ARS § 9-462.10, noting it was defined very differently than ARS § 42-6209 and could not be used for tax abatement of any kind, including GPLET. He restated the recommendation was to restrict the use of GPLET tax abatement on government-owned properties. Councilmember Tilque said she was under the impression that passing the resolution would prohibit it, not restrict it; Director Henderson answered they were attempting to pass a resolution that would restrict it. Councilmember Tilque asked to confirm that if they did intend to enter an agreement using GPLET, it would require to first change the resolution. Town Attorney Payne stated that, per the resolution, the Council shall not pass any resolution or ordinance approving any agreement with GPLET; if a future Council wished to do so, they would have to rescind the resolution and could proceed as they chose to after. Councilmember Tilque confirmed if it became the decision of a future Council, it would include public discussion. Town Attorney Payne confirmed it would be done in a public meeting with discussion. Mayor Peterson stated the current Council could not lock a future Council into such decisions, but the proposed resolution could be passed stating the current Council did not have any plans to use GPLET in the future. She restated that a future Council would have to reverse that resolution before moving forward with something different in a public discussion. 2. Presentation and discussion on legislation relating to the Central Business District. Intergovernmental Relations Director Bohr discussed the Central Business District (CBD) component of House Bill (HB) 2721. He said it was unique because it was related to one specific provision within HB2721, the designation of a CBD, that fell under a separate section of the bill that was under the general effective date of September 14, 2024, but the totality of HB2721 would take effect January 2026. He said the Town was required to pass an ordinance prior to that to establish parameters around the legislation. He added the establishment of a CBD was one component that would factor into a future ordinance. He continued with an explanation that HB2721 provided for duplexes, triplexes, and quadplexes within certain Single Family (SF) zones under specific circumstances, which would be outlined by a future Gilbert ordinance. He discussed that housing availability and affordability were priority issues of both parties, both chambers, legislature, and the Governor’s Office, then discussed staff’s work with legislators and stakeholders to seek compromise that would not impact the Town negatively. He noted other housing-related bills including HB 2297, Adaptive Reuse, and HB 2720, Accessory Dwelling Unit (ADU), with effective dates of January 2025. Principal Planner MacDonald said the request at the current meeting would be to designate a Central Business District (CBD) within the Town, then adopt a subsequent General Plan and Land Development Code amendment on the August 20, 2024. She highlighted HB2721 requirements due by January 1, 2026, stating a municipality must authorize by ordinance regulations for Middle Housing on all lots zoned for Single Family within 1 mile of the municipality’s CBD, and on 20% of any new development more than 10 contiguous acres with the Towns (not contained to the CBD or buffer area). She added if a municipality did not adopt the regulations, Middle Housing shall be allowed on lots in the municipality zoned for Single-Family Residential without limitations. She provided visuals and maps of the proposed CBD area, adding legislation did exclude unincorporated areas. She said the purpose of their request was to comply with HB2721, which required regulations that allowed Middle Housing, and to strategically identify locations where Middle Housing would be permitted on Single Family Residential lots by adopting a CBD. She noted CBD in HB2781/ARS Title 9 had a distinct definition that was different from CBD in ARS Title 42; it would not allow for tax abatement through GPLET and would not qualify as a CBD under Title 42. She said the only thing shared with CBD in ARS Titles 9 and 42 was the name “Central Business District” used in both, then restated that the CBD adopted pursuant to HB 2721/Title 9 would not allow the use of GPLET. She summarized the process ahead. Councilmember Tilque asked if when the term allowed was used, was the legislation’s definition that it was by-right without public input and design guidelines. Principal Planner MacDonald said it was allowing use, but that any applications that came forward would still have to comply with factors like building heights, setback requirements, and other considerations yet to be established by Gilbert. Councilmember Tilque wished to ensure there was still a public process for that. Principal Planner MacDonald said it would not be a rezoning application; it would go to the Planning Commission and the Town Council. MacDonald added there was some limiting language in the house bill with restrictions, such as not setting restrictions, permitting, or review processes for Middle Housing that were more restrictive than for Single Family dwellings within the same zone. Councilmember Torgeson asked to clarify that allowed use included townhomes, and anything with 20% of 10 acres or more could effectively be Multi-Family; Principal Planner MacDonald confirmed. Councilmember Torgeson said it would not be something the Town could have a say in, other than design standards. MacDonald read the definition and said there was no limit on the number of those. Councilmember Bongiovanni provided a scenario, asking if he owned 10 properties within the Heritage District, could he knock them down and put up quadplexes. Principal Planner MacDonald said it did allow for redevelopment of those lots. Mayor Peterson said the point of the legislation was to make sure that more housing was being built, and legislators felt it was not being built fast enough and municipalities were the problem. She asked what would happen if a project came in before the Town had set regulations, since the effective date was not until January 2026. Principal Planner MacDonald said her understanding was that it was not until the regulations were adopted and effective that a landowner could utilize that tool. Mayor Peterson clarified that the rules did not go into effect until the Town had created their own guidelines, and all municipalities had until January 2026 to do so. 3. Presentation and discussion on Z24-02 Land Development Text Amendment related to inoperable and abandoned vehicles. This item was not discussed. 4. Presentation and discussion on legislation relating to Fowl Regulations. Principal Planner Gonzalez provided background information stating House Bill (HB) 2325 was passed by the Governor pertaining to backyard fowl on Residential properties, leading to the Planning Commission conducting a citizen review and initiating a text amendment to conform with legislation. She provided an overview of an upcoming proposed text amendment and compared it to the current provisions in the Land Development Code (LDC). She said one of the biggest changes was it would allow up to six fowl on lots one-half acre or less. She noted it also allowed regulation on male fowl, including roosters, as well as enclosures for the keeping of fowl, then said the item would be on the August 20, 2024 Council agenda. Councilmember Bongiovanni asked for the definition of fowl; Principal Planner Gonzalez said HB2325 defined fowl as a male or female chicken. Vice Mayor Anderson and Principal Planner Gonzalez discussed a video on fowl. Councilmember Torgeson asked about rodents in the bill. Principal Planner Gonzalez said the current Code had rodents and fowl linked together in terms of regulations, but they were going to separate the two since HB2325 was specific to fowl and not rodents. Councilmember Tilque asked if current changes for rodents would be coming forward to the Council at a later date; Principal Planner Gonzalez affirmed, then defined rodent as any animal that was a member of the order Rodentia including rabbit or hare, per the Town of Gilbert Code. The Council discussed that it would likely impact rodents kept specifically as pets. Mayor Peterson asked about the provision stating enclosures shall be a minimum of 20 feet from any property line. Principal Planner Gonzalez stated it would impact smaller lots and may be limiting, but confirmed it was part of the state law. Councilmember Koprowski asked if state law would allow for additional language regarding properties that did not have adjacent properties behind them, such as the properties along trails and canals. Principal Planner Gonzalez stated it did not appear there was anything to prohibit that, but staff would review. ADJOURN Mayor Peterson adjourned the meeting at 5:50 p.m. ATTEST: ___________________________ ___________________________________ Brigette Peterson, Mayor Chaveli Herrera, Town Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Study Session of the Town Council of the Town of Gilbert held on the 6th day of August, 2024. I further certify that the meeting was duly called and held and that a quorum was present. Dated this __________ day of ______________, 2024. ___________________________________ Chaveli Herrera, Town Clerk Pfost