While ground technically hasn't been broken at the site of the future heart of Litchfield Park, Mayor Thomas Schoaf is nevertheless pleased to see the “moving of dirt” at the site of the much-anticipated development project.
Last week, workers began preparing 26 acres at the site of the future City Center, demolishing structures, removing trees and installing sewer systems necessary for the future mixed-use development.
“It’s a very big step for our city to see this development finally start,” said Schoaf during a Wednesday, July 21, council meeting. “It is tremendously fulfilling” he said, to be moving toward the goal “of actually building something in the next year or so.”
The $52 million infrastructure project, which will be built in five construction phases on the east side of Litchfield Road, north of Wigwam Boulevard, will include 400,000 square feet of multilevel buildings containing shops, restaurants, offices and residential spaces surrounding a 2.5 acre park.
The design will mirror the Santa Barbara-style architecture of Litchfield Elementary School, The Wigwam and The Church at Litchfield Park. $26 million will be dedicated to building out the structures, surrounding streets and park.
Another $26 million is expected to go toward three parking decks, which will be built closer to the center’s completion.
“We don’t want to start out building parking garages right off the bat. We want to see and make sure we’re going to be heading toward that 400,000 square feet and phase them in over time,” City Engineer and Project Manager Woody Scoutten said in May.
Scoutten provided an update to the council on Wednesday, stating the initial development phase, which will cost an estimated $3.6 million, is “moving along very quickly, and very well.” He noted one surprising hindrance: the existence of old home foundations on the site that were not discovered during geotechnical analysis.
The council then approved the second phase of construction at an estimated cost of $2.7 million, which Scoutten said will commence “almost immediately” on Aug. 1 and will include the installation of a storm drain system, remaining utilities and the purchase of “long lead time items” like streetlights.
Development to progress in five phases
The five development phases are noted in council agendas and city records as GMP 1 through GMP 5. The city expects buildout to be completed by 2028.
Still up for council approval are construction phases three through five.
Phase three is so far the most expensive part of the plan, at an estimated $8.6 million, though pricing is still being considered by the development’s construction manager at-risk , Chandler-based Achen-Gardner Construction LLC.
Phase three is expected to come before the council at its next meeting in September. It will include construction of streets, landscaping and a $1 million roundabout on Litchfield Road at Village Parkway.
Phase four will come before the council in early 2022, and will construct the remaining streets and park at an estimated cost of $6.1 million.
Aesthetic flourishes, such as the proposed clock tower, specialty paving and a park water feature — amenities Schoaf calls “Cadillac items”— will be deferred to the fifth and final phase of construction, at an estimated cost of $5 million.
“Every item within these first four GMPs (phases of development) have been scrubbed very carefully” to eliminate unnecessary spending, Schoaf assured the council.
City Center financing
Financing for City Center came from a bond — a loan the city of Litchfield Park is expected to start repaying next June and will be carrying for at least three decades.
The following repayment schedule is based on the highest payments per segment of years:
$520,200 annual interest-only payments for the first five years
$580,800 annual payments for the following four years
$912,200 annual payments for the next 21 years
The city’s plan is to start constructing the project and sell off parcels and buildings along the way to generate additional development funds.
When completed, City Center is expected to generate $2 million in annual sales taxes.
City Manager Matthew Williams insisted to the council that even in a worst-case scenario, financing the project is do-able. Though, in such a scenario, the city would need to dip into its capital improvement program funds, which are used to support the city’s infrastructure needs, spending CIP funds only in emergencies.
Litchfield Park does not have property taxes, but voted Wednesday to classify the area as a community facilities district, also called a special taxing district.
While full buildout is years away, Scoutten told the council that residents and real estate brokers are already beginning to take an interest in the project.
“The word’s starting to get out there…the project’s moving ahead and I’m very excited as you are to see it finally get under construction,” Scoutten said.
Madeline Ackley can be reached at mackley@iniusa.org.
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