New riverfront hotel coming to Yuma
Plans call for 112-room extended stay facility
The Yuma downtown riverfront area will get a new extended stay hotel, according to a newly approved development agreement with the city.
The City Council went into a 30-minute executive session to consult with legal counsel on the terms of the Yuma Pivot Point Phase 3 property sale and development agreement for a proposed 112-room extended stay hotel.
The Home2 Suites by Hilton would cover about 85,736 square feet with an anticipated four-story 21,434-square-feet footprint on the northeast corner of 1st Street and Madison Avenue.
Unlike previous phases, Phase 3 will involve a sale of the property, instead of a lease subject to the government property lease excise tax or abatement, with a sale price of $644,337 at an appraised value of $5.17 per square foot. There are no incentives being provided by the city to the buyer, according to a staff report.
The agreement also includes a contractual 1 percent development surcharge on all activities subject to transaction privilege taxes with the exception of construction of the hotel. The surcharge will be held in a constructive trust for the benefit of and reinvestment in the North End Redevelopment Area.
The city’s riverfront has been the focus of development for more than a decade. In 2004, the council approved a master development agreement for the entire 22-acre downtown riverfront site located north of 1st Street between 4th Avenue and the Ocean to Ocean Bridge.
Since then, the Hilton Garden Inn and Conference Center and the John M. Roll Federal Courthouse have been constructed, representing an investment in the area of more than $60 million dollars.
The report notes that although the council has approved a number of amendments to the master development agreement in response to new circumstances and economic con-
ditions, the basic framework has always envisioned multiple components that include building out the remainder of the riverfront site.
Based on market demand, the proposed Phase 3 agreement shifts the proposed site — about 124,630 square feet located at the northeast corner of 1st Street and Madison Avenue — from parking garage to hotel use.
The agreement includes a partial transfer of the master developer Clark-Lankford’s interest to the component developer, Kesari Putra Hospitality, as part of the development framework.
An amendment to the master development agreement includes a new project site plan, a Phase 3 site plan for the proposed new hotel, a clean-up provision, a schedule of performance and other revisions to accommodate the hotel development.
The changes to the agreement need the consent of the Phase 2 developer, which has been given.
In unanimously approving the agreement, the council also made some changes to the terms, including extending the 15-year term of hotel use to 25 years and the date for the city’s deposit for the first installment payment to Dec. 15, 2019.
In other actions, the council declared the results of the Aug. 29 primary election through the official canvass with a vote of 5-0. Mayor Doug Nicholls and Deputy Mayor Gary Knight both declared a conflict of interest and recused themselves since they were both candidates in the election. Councilman Bill Craft was named mayor pro tem for purpose of discussing and voting on the items.
As part of the Introduction of Ordinances agenda, the council also unanimously approved a code amendment updating the size limitations permitted for accessory structures.
The proposed amendment limits the size of accessory structures to no larger than 50 percent of the size of the principal dwelling.
Examples of accessory structures include storage sheds, workshops, builtin outdoor barbecues and kitchens not attached to the house, and large standalone outdoor fireplaces.
The council also granted a right-of-way easement and line extension to the Arizona Public Service Company for the “construction, installation, reconstruction, replacement, removal, repair, operation and maintenance of a line, or lines of poles or towers, together with appurtenant structures, facilities and fixtures,” to facilitate the relocation of their power lines crossing the city’s new Fleet Services Maintenance Shop site to the perimeter of the property.
In addition, an ordinance authorizing the annexation of property located at the northeast corner of 15th Street and Avenue B was introduced to the council. At the request of a property owner, Ghiotto Family Properties, the city initiated the annexation of five properties (four owners) within a county island on the east side of Avenue B in the 1400 block.
The annexation area totals 6.5 acres and contains one vacant restaurant, three vacant parcels and one retail tire shop.
In conjunction, the council held a public hearing and approved a request to amend the city’s General Plan to change the land use designation from Medium Density Residential to Mixed Use, for properties located at 1401 and 1411 S. Avenue B.