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            NEWS

Public Information Office

For Immediate Release:

Tuesday, April 10, 2007

Goodyear and University of Incarnate Word

Execute Letter of Intent for 20-acre Campus

 

 

 

 

(GOODYEAR) – The City of Goodyear has taken a major step toward becoming the home of a private institute of higher learning by agreeing to lease 20 acres of City-owned land to the University of the Incarnate Word (UIW) at a cost of $1/year for 30 years.  The site is within a 100-acre park site adjacent to Goodyear’s future City Center.

At last night’s Regular Council Meeting, City Council approved a Letter of Intent (LOI) that provides the foundation for a more comprehensive agreement in the future concerning the details of the land lease and establishment and operation of an institution of higher education.  Terms laid out in the LOI provide the City-owned land to UIW with two additional 10-year rolling options and also reserves an additional 10 acres of adjacent land for future UIW lease and expansion. Having the LOI allows UIW to proceed with the necessary steps needed to apply for state licensure through the Arizona State Licensing Board in preparation of offering classes.

 

A key element in the LOI establishes that any development of land by UIW must be financed through independent funding sources. The intent is that UIW is not expected to provide any capital contribution for the development of land and development of a functional and operational campus, nor is the Goodyear expected to provide any capital contributions toward the development of land and/or the operational campus.  Failure by UIW to obtain this necessary funding through independent funding sources will result in a cancellation of the Letter of Intent.  In the coming months, UIW will work to secure that funding, and will provide quarterly reports to the City on its progress.

 

The Letter of Intent defines a functional and operational campus as one that “consistently offers

college classes and programs throughout the typical academic year” with a core of classes to be taught on the UIW campus facilities located on the property being leased from Goodyear.  The LOI also calls for UIW, in consultation with Goodyear, to develop the concept for student residential facilities which are not required to be located on the dedicated academic site, but must be within adequate proximity to effectively serve the proposed campus.

 

As a benefit to Goodyear residents, the LOI directs UIW to offer a 15% tuition discount to all Goodyear residents and City of Goodyear employees and their families for all classes and programs offered. Both UIW and the City of Goodyear agree to actively seek partnerships and joint-use facility opportunities to maximize the efficient use of the site. Goodyear, in partnership with the Maricopa County Library District, agreed in the LOI to use its best efforts to cause the development of a functional and operational library in the City Center within five years of the lease agreement being signed so that the library could serve as a possible shared-use facility.

 

The detailed Letter of Intent is attached.


Letter of Intent

 

This Letter of Intent ("LOI") reflects the mutual intention and understanding of the University of the Incarnate Word, a non-profit corporation ("UIW") and the City of Goodyear, Arizona, a municipal corporation ("Goodyear") to provide for the lease of land by Goodyear for the establishment and operation of an institution of higher education campus by UIW to be located in the City of Goodyear, Arizona. 

 

 

RECITALS

 

  1. The City of Goodyear owns approximately one hundred acres of undeveloped land near Estrella Avenue and Yuma Road in the City of Goodyear

 

  1. In 2006, the City of Goodyear conducted an open public process to attract institutes of higher education to the City of Goodyear

 

  1. In response to that public process, UIW expressed interest in locating a campus in the City of Goodyear

 

  1. A cordial relationship exists between UIW and Goodyear. 

 

  1. The Mayor and City Council find that the recruitment and retention of an institute of higher education will provide a public benefit to the citizens of the City of Goodyear.

 

  1. The location of an institute of higher education within the City of Goodyear will provide direct and indirect economic benefits to the City of Goodyear that surpass any direct or indirect financial support provided by the City to UIW.

 

  1. Goodyear and UIW have discussed mutual goals regarding higher educational and academic opportunities for Goodyear residents. 

 

  1. UIW and Goodyear desire to establish an institution of higher learning to be located in Goodyear, Arizona and enter into a long-term land lease agreement and/or other agreement to be formalized at a later date for the benefit of Goodyear residents and UIW. 

 

  1. The UIW campus will provide facilities and resources that the Parties anticipate will provide for shared use opportunities that will benefit both Parties as well as the general public.  

 

Now, therefore, the parties enter into this Letter of Intent in order to memorialize fundamental concepts regarding the establishment of UIW in Goodyear.

 

 

 

UNDERSTANDING OF THE PARTIES

 

  1. General Agreements

 

·         UIW and Goodyear understand and acknowledge that this Letter of Intent will provide the foundation for a more comprehensive agreement concerning the details of the long-term land lease and establishment and operation of an institution of higher education.

·         The UIW campus will maintain a readily identifiable academic presence and serve as a scholastic hub for higher education functions in Arizona including classes, programs, events, research, instructor and administrative offices and other such pursuits typically associated with higher education.

·         For the purposes of this Letter of Intent, a functional and operational campus shall be defined as one that that consistently offers college classes and programs throughout the typical academic year. 

·         Each party agrees that it shall support actions of the other party that are consistent with this Letter of Intent, and upon request of another party shall state such support in writing.

·         The parties understand that this agreement must support the mission of UIW to provide institute of higher education of the highest quality to the City of Goodyear.

·         The parties agree that UIW is not expected to provide any capital contribution for the development of land and development of a functional and operational campus, nor is the Goodyear expected to provide any capital contributions toward the development of land and/or the operational campus.  Any development of land by UIW must be financed through independent funding sources.  Failure to obtain the necessary funding through independent funding sources for the development of land and development of a functional and operational campus will result in a cancellation of this Letter of Intent.  UIW will diligently work to securing the necessary financing needed to develop the land and campus, and will provide quarterly reports to the City on its progress. 

·         The parties will actively seek partnerships and joint use facility opportunities to maximize the efficient use of the site.

 

  1. Goodyear agrees as follows:

 

·         Goodyear, in partnership with the Maricopa County Library District, will use its best efforts to cause the development of a functional and operational library in the City Center within five years of the lease agreement being signed.

·         Goodyear will lease UIW 20 acres of land in a mutually agreed upon location within the Goodyear’s 100-Acre Park at a cost of $1/year for 30 years with 2 additional 10-year options.

·         Goodyear will reserve an additional 10 acres of adjacent land for future UIW lease and expansion.  This land will eventually be included as part of and subject to the original lease terms at no additional cost with the same termination date.

·         To assist UIW in the development of its campus, Goodyear agrees to provide a staff contact person as a resource for planning and development related questions.  Goodyear agrees to expedite its review and processing of any PAD proceedings and/or zoning proceedings, plans, specifications, plats, and/or other development approvals and to expedite the issuance of necessary permits.  The provision does not obligate Goodyear to approve UIW’s submissions nor obviate the need for the approval of City Council when such approval is required by law. 

·         Goodyear intends to take a lead role in the formation of a West Valley Education Council.  It is expected that this Council will promote the coordination with the government, business community, universities, and other parties interested in educational institutions in the West Valley.   

·         Goodyear will explore the creation of a special improvement district to act as a funding source for the development of land by UIW.  This LOI shall not commit the City to form a special district for the development of the UIW campus or related infrastructure. 

 

  1. UIW agrees as follows:

 

·         UIW will cause the development of a functional and operational campus (including all necessary infrastructure) within five years of the lease agreement being signed.   If this deadline is not met, the lease rate will escalate to ½ the then-market value in the 6th year and full market value in the 7th year.  The full market value lease rate will continue until the lease ends, is terminated, or until a functional and operational campus is developed. 

·         UIW will complete development of the 10-acre reserved land no later than 12 months after the first Certificate of Occupancy is issued on the 1st building built on the 20 acres site.  The reserved land will be developed as a public passive/active recreation area including park amenities as determined by Goodyear and in accordance with all applicable standards, until such time as the 10 acres is converted to academic use.  Such recreational area will be open to use by the general public and the recreational area

·         UIW will remain functional and operational throughout the length of the lease, after initial startup of campus.  At any time that UIW ceases to actively operate a functional college campus, the lease rate shall escalate to the then-market value.

·         A core of classes will be taught on the UIW campus facilities to be located on the property being leased from Goodyear. 

·         UIW will develop the concept for student residential facilities in consultation with Goodyear.  Facilities are not required to be located on the dedicated academic site but must be within adequate proximity to effectively serve the proposed campus.

·         UIW will offer a 15% tuition discount to all Goodyear residents, Goodyear employees and their families for all classes and programs offered.  Such discount will remain in effect during the duration of the long term lease agreement. 

·         The UIW campus may temporarily cease operations for purposes of repairs, breaks and seasonal closings.  However, these periods will not occur so as to disrupt or impair the overall functionality of the institution, nor will they exceed thirty (30) days in length.   

·         UIW will not sublease any portion of the property without prior written approval from Goodyear.  However UIW may enter into contracts with private companies for outsourcing operations that are generally incidental, and primarily for the benefit of its students, to education, such as a bookstore, cafeteria, and maintenance.

·         UIW agrees to indemnify and fund the legal defense of the City related to any legal challenges raised related to this LOI and/or future superseding agreements.  At its option, UIW may exercise its cancellation provision in place of providing indemnification and legal defense solely for constitutionally based claims. 

 

CANCELLATION

 

  1. Either Party may cancel this Letter of Intent by providing written notice to the other Party within one year of the date of execution of this Letter of Intent.

 

  1. During the term of this LOI, UIW agrees to not seek or pursue other potential locations for a university campus within Arizona outside of the City of Goodyear municipal boundaries.

 

 

This Letter of Intent shall be effective upon execution and shall continue in full force and effect until notice of cancellation or until such time that it is superseded by another agreement.  Notice shall be given in writing by either of the parties to the other.

 

Dated this                                 day of                                                                 2007

University of the Incarnate Word, a non-profit corporation

By______________            ______________    
Name: __________________________            
Title: __________________________   
Date: __________________________  

Business address:

City of Goodyear, Arizona, a municipal corporation

By____________________________    
Name: __________________________
Title: __________________________   
Date: __________________________  

Business address:

 

 

I, ______________________________, Clerk of the City of Goodyear, Arizona, do certify that the above mentioned agreement was regularly adopted by the GOODYEAR COUNCIL at a meeting thereof held on the _______________________day of  ________________,2007, and the COUNCIL authorized the Mayor to sign this agreement on behalf of the said COUNCIL.

Clerk of the City of Goodyear, Arizona

By____________________________                
Name: __________________________
Title: __________________________   
Date: __________________________  

 


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