Tax shortfall may stall Goodyear City Center project
Posted on 14. Feb, 2010 by dbarnhart in Latest Dirt
A City Center for Goodyear may not be in the near future, as the city weighs the costs of construction against falling home values.
The City Center proposal calls for a four-story, 96,500-square-foot city hall, 27,000-square-foot library and 4-acre-park. That’s a reduction of 16,000 square feet from the original overall project that Goodyear had hoped to open in 2011 northwest of Estrella Parkway and Yuma Road.
But a 3.4 percent decline in assessed valuations on real estate in the city for fiscal 2011 means the city can’t afford construction. At a City Council work session Monday, officials said the amount of assessed valuation fell from $878 million to $848 million and the decline is expected to continue. A decline in assessed valuation leaves a financial gap in the city’s share of property-tax collections.
“The preliminary revised numbers from the (Maricopa) County Assessor’s Office no longer allow the city to proceed with the sale of general-obligation bonds in the amount needed for these projects,” City Manager John Fischbach said.
The city would be unable to pay back future bonds if the fixed tax rate remains the same.
Under Goodyear’s vision, the City Center would boast a performance facility and universities in addition to the city hall, library and park.
Officials at Arizona State University and New Hampshire Institute of Art said they were interested in leasing space for graduate programs. But some council members said startup costs to accommodate the schools were not a priority.
“We have enough budget problems here. I think education is important, but if we have to fund a state school with city money, I’m totally against it,” Councilman Dick Sousa said.
Space for private universities isn’t an option, anyway.
For now, Fischbach said, the council must choose whether to pay for a library and park or for priority projects such as public-safety radios and a city telephone system. Priority projects would cost an estimated $23.1 million, while the library, park and infrastructure would cost about $22.3 million. If council members focus on the projects, the City Hall and library could be on hold until fiscal 2016-17.
Council members don’t have a firm timeline for a decision. They agreed the library is a priority but that the economy will dictate the timing.
“I think all depends on the economy,” Vice Mayor Georgia Lord said. “Every year we have a budget, every year we can see if planning can be moved up. I understand a date has to be set (for a decision), but planning dates can be changed with the economy.”
