MEMORANDUM

TO: Cochise County Board of Supervisors
Through: Michael J. Ortega, County Administrator
FROM: Beverly Wilson, Interim Planning Manager
For: Michael Turisk, Interim Planning Director
SUBJECT: Docket S-11-01 (Kings Ranch at Coronado)
DATE: February 3, 2012 for the February 14, 2012 Meeting

I. NATURE OF THE REQUEST
This request, from the Owner, is to amend the approved Kings Ranch Estates subdivision Final Plat to change the name to Kings Ranch at Coronado, to dedicate the roadways to the Public, and to reconfigure various lots, roadways, conservation areas and easements. While the history of this Subdivision follows, current economic conditions have resulted in a change of ownership through a foreclosure action during the past two years. K Ranch, LLC is the new Owner of the property.

The Kings Ranch at Coronado Subdivision is located on the northeast side of Highway 92, north and west of Valley View School in Palominas. This subdivision was the first Conservation Subdivision approved in Cochise County. There were 281 lots ranging in size from 0.86-acre to over 6.5 acres in an RU-4 Zoning District. The internal roads were private, to be maintained by a Homeowners Association. This will be the fourth amended Final Plat filed for this project (See attachment A).

The Department has worked with the new Owners, K Ranch, LLC, to amend the Final Plat, the Covenants, Conditions, and Restrictions (CCRs), and to replace the Assurance Agreement to reflect this change in ownership. The Owner has presented several options for the ongoing development of this Subdivision, based on the current economic reality for Developers. They have proposed a new business plan for the project to include changing the streets from private to public, removing the planned gates for the community, and creating a denser development. Discussion also included the potential for Cochise County to establish a stormwater recharge system within this development.

On February 8, 2012, the Planning and Zoning Commission will be considering a waive request.  Staff is recommending approval for a Waiver per Section 207 of the Subdivision Regulations, which states in item B:

“The Commission shall provide a recommendation to the Board of Supervisors on all waivers.”

The waiver was requested to allow the Kings Ranch at Coronado Subdivision Amended Final Plat to be recorded with a larger density bonus than the 34% defined in Section 603.02 of the subdivision regulations. Section 603.02 defines the specific conditions in which density bonuses are granted to Developers who can meet the following conditions: 50% of the site must be set aside as a Conservation area; the proposed subdivision must comply with the design and improvement requirements of the Subdivision Regulations; and the individual lots must conform to requirements for sewage disposal, water distribution systems, and fire protection as described in the Subdivision Regulations. The Regulations allow a density bonus of 34% to 50%, depending upon the level of improvements offered by the Developer.

The proposed amended Final Plat will dedicate 4.14 acres to Cochise County as a “Stormwater and Recharge Tract” for the County’s recharge effort. An additional 3.6 acres for the recharge project will be shown on the plat as a 30’ wide easement along the entire east boundary of the parcel. The Owner has also agreed to deed to the County three additional lots comprising of 3.13 acres, also for potential recharge sites. In exchange for the approximately 10.87 acres of potential recharge sites, Staff recommended approval for a modified density bonus, which will allow an additional 22 lots on this plat, including the 3 lots that will be set aside for future recharge use by Cochise County. Allowing the Developer to plat the 19 additional lots would equate to a density bonus of 42%, a net increase of 8% above the 34% allowed under the Subdivision Regulations, while increasing the open space set aside to 51.17%.

Per the Subdivision regulations, lot sizes in a conservation subdivision may be smaller than otherwise allowed in a given Zoning District, provided all the previously mentioned requirements are met. If this parcel was platted under the Conventional subdivision rules, each lot would remain at a minimum 4.0 acres, and the maximum number of lots would depend upon how many acres are used for the roads, public utility easements, and sidewalks, if required. The lot sizes of the current recorded plat for Kings Ranch Estates vary from 0.86 to 6.74 acres. It is important to note that the all of the 19 newly created lots will be a minimum of 1.0 acre to a maximum of 2.97 acres in the proposed amended plat.

II. HISTORY OF THE SUBDIVISON
The original Final Plat was approved by the Board of Supervisors on May 11, 2006 and recorded on May 24, 2006 in Book 15 of Plats, Pages 57 – 57Q (Fee No. 060519936), along with the Assurance Agreement under Fee No. 060519937. The Conservation Easement Management Plan was recorded on that date under Fee No. 060519938 and the CC&Rs document related to all lots and easements except Lot 6 (the ranch house) was recorded on that date under Fee No. 060519939. The Developer was Darrell Dunafon of Dunafon Development LLC, and the Project Engineer was Blaine Reely of Monsoon Consultants.

On May 3, 2007, an administratively approved minor revision to the Final Plat was recorded in Book 15 of Plats, Pages 76 – 76K; this was done without any amendments to or re-recording of the Assurance Agreement, Conservation Easement Management Plan or CC&Rs.

On May 29, 2007, a second administratively approved minor revision to the Final Plat was recorded in Book 15 of Plats, pages 78 – 78K; again, this was done without any amendments to the Assurance Agreement, Conservation Easement Management Plan or CC&R document.

On May 17, 2008, a Substitute Assurance Agreement was recorded for the subdivision under Fee No. 080306954 for assurances for the improvements associated with Lots 1 through 34 and 36 through 183. This Substitute Assurance Agreement reflected the purchase of Kinjockity Ranch by the Kinjockity Ranch Limited Liability Corporation (LLC), represented by Kenneth Komenda.

On December 11, 2009, the third Amended Plat was approved by the Board of Supervisors and recorded for the Kings Ranch Estates subdivision, in Book 16 of Plats, pages 6 – 6K. Also recorded on December 11, 2009, was an amended Conservation Easement Management Plan.

On April 28, 2010, a Substitute Assurance Agreement was recorded under fee 2010-09276, naming Pioneer Title Agency as the new Trustee for Trust No, 3208271.

The improvements specified by the Assurances were completed for 97 of the lots, which were released by Cochise County on June 5, 2007. These improvements included installation of the private roads, underground utilities, and substantial off-site mitigation to South Highway 92 including turn lanes and deceleration lanes at both entrances. In addition, Lot 35 was released October 28, 2010.

On June 29, 2010, a notice of foreclosure was recorded and the property sold on September 30, 2010 to K Ranch, LLC. An amended subdivision final plat was submitted on January 20, 2012, changing the name to Kings Ranch at Coronado. The revised plan reflects the construction of proposed stormwater recharge easements and additional lots dedicated to Cochise County.

III. PROPOSED AMENDMENTS TO THE FINAL PLAT

Lot Changes and Stormwater Recharge Easements:
Recently, the Cochise County Community Development Department was awarded a $1,693,265.00 grant to design, construct and monitor the performance of a stormwater recharge system. The grant will be used to develop a pilot recharge project in the unincorporated County area in the Upper San Pedro watershed in an effort to capture and recharge excess storm water runoff. Development, even at a rural scale, creates increased runoff due to increased impervious surfaces: roofs, roads, and cleared areas. This project will analyze and design facilities meant to capture this excess runoff (which creates flooding problems downstream) and recharge it for the benefit of the aquifer and/or the San Pedro River. The County identified an area in Palominas that was close to the San Pedro River, already suffering from flooding problems, and included a newly developing area in the upper watershed. These factors made the area a good candidate for the location of the pilot project. K Ranch, LLC, the current owner of the Kings Ranch Estates Subdivision, is that developing area in the upper watershed. They have worked closely with County staff to cooperate in the grant project and to identify potential stormwater recharge sites on the subdivision property. This partnership is crucial to the success of the grant and the new owners have been very cooperative and enthusiastic about participating and assisting County with this project.

The proposed Kings Ranch at Coronado Amended Plat will meet the condition to set aside a minimum of 50% of the site as Conservation Area. There are 840.26 platted acres, of which 426.72 acres are included in the Conservation Easement, which is held by the Arizona Conservation Easement Stewards, Inc., as described in attachment E. A Memorandum of Understanding has been signed by all parties, legitimizing the County’s use of this open space in their stormwater recharge project. When the additional three lots are deeded to Cochise County, the land set-aside as open space will increase to 51.17% of the total subdivision, which fulfills the requirement to qualify for a density bonus.
The purpose of the Conservation Subdivision is to provide incentives, in the form of additional lots, for large subdivisions to conserve 50% of the land's natural resources in undeveloped open space, retaining natural stormwater recharge areas, wildlife corridors and existing drought-tolerant vegetation for erosion control, screening and visual amenities. The site is traversed by several washes, one of which is identified by the Upper San Pedro Partnership Open Space Subcommittee Hydrologic Protection Areas Final Report as important for preserving natural stormwater recharge areas. This wash and its tributaries are all included within the Conservation Easement of the subdivision, along with the ridges that traverse the site. The lands within the original Conservation Easement of the Kinjockity Ranch subdivision remain.

The current Kings Ranch Estates conservation subdivision includes a great deal of the 50% open space set-aside in individual lots. The portion of the Conservation Easement on private property will not allow the owner to fence or in any way preclude access for other subdivision residents. Structures cannot be built in the easement and vegetation must remain natural or be enhanced with drought tolerant vegetation. The only disturbance permitted will be the construction of a leach field for the septic system if necessary which then must be revegetated with drought tolerant vegetation. The portions of individual lots that are part of the Conservation Easement for the subdivision are deemed "Protected Property", pursuant to the Conservation Easement Management Plan. The subdivision Homeowners Association (HOA) will pay a fee to a third-party non-profit conservation management organization to hold the easement in trust and assure its maintenance and integrity in perpetuity. The Amended Kings Ranch at Coronado Subdivision Plat will not change the conservation easements.
The lot numbering schematic for this amended plat has been changed, and is reflected in the Table on Sheet 2 of 12. A new Assurance Agreement will be recorded to cover the entire project, along with a new Lot Release form from Cochise County, to reflect the new lot numbers.

Roads:
The proposed new Kings Ranch at Coronado amended Final Plat reconfigures the roads shown on the previous amended plat to ‘disconnect’ with the proposed “Kings Ranch” subdivision, located on an adjacent parcel to the east. The previously proposed Kings Ranch Estates Unit 2 was not a part of the business transaction of K Ranch, LLC, as they took ownership of Kings Ranch at Coronado. Staff required that two cul-de-sacs be added, one each to E Stillwater Lane and E Presidio Lane to facilitate emergency vehicle ingress and egress. They are shown on the plat on Sheets 6 and 9 of 12.

General Notes Changed: Minor changes were made to the General Notes on Sheet 1 of 12. These changes were made to clarify information for future buyers, to add wording required by the Subdivision Regulations, and to define responsibility for future maintenance for all common areas including stormwater recharge easements.

IV. ASSURANCE AGREEMENT
The County and the Owner will enter into a substitute Assurance Agreement for this amended plat, to ensure that improvements are completed prior to release of the lots for sale. All lots on the proposed Amended Plat have been renumbered to reflect the phasing plan, as shown on the cover sheet of the Amended Plat. The new Assurance Agreement will cover all 303 lots and will be recorded with the Amended Plat. Because some improvements to the roads and utilities were completed, 98 lots were released on June 5, 2007. Another lot was released on October 27, 2008, therefore, immediately after the Assurance Agreement is recorded, the County has prepared a Lot Release document releasing the newly numbered lots 9-68, 70-106, 110, and 206.
Four lots, (lots 69, 134, 148, and 151) are not included in this Amended Final Plat and are held by Pioneer Title Agency Inc. as the Trustee for Trust #320827A. For reasons unknown, the Owner of these four lots has not agreed to the terms of this new Plat. Lot 69 was previously released by the County as improvements were completed, however, lots 134, 148, and 151 will remain secured under the Assurance Agreement recorded on April 10, 2010 and recorded under Fee# 2010-09276. When future improvements are completed, these lots will be released by Cochise County. Lot #206 has been deeded to Cochise County for the stormwater recharge effort, and will be released at this time. The remaining lots that have not been released for sale will remain subject to the revised Assurance Agreement; these are Lots 1 through 8, 107 through 109, 111 through 205, and 207 through 303, plus the Common Areas and well sites.

V. SUMMARY AND RECOMMENDATION

Each of the corrections, additions, and amendments to the Kings Ranch at Coronado Final Plat are in conformance with the Cochise County Subdivision Regulations. The existing roads will be accepted into the County roadway system, and dedicated to the Public. The increased density will comply if the Waiver from Density Bonus requirements is approved. The Assurance Agreement, CC&Rs, and the Conservation Management Easement Agreement are updated to reflect the new owners and new name.
Recommended Motion
Mr. Chairman, I move to approve the Kings Ranch Estates Amended Final Plat, Docket No. S-11-01, the Waiver from Density Bonus, revised Assurance Agreement, and the revised CC&Rs, as recommended in the Staff report.

Attachments (as individual PDF documents in VAN):
A. Proposed Kings Ranch Estates Amended Final Plat, Sheets 1 – 12
B. Proposed revised Assurance Agreement document
C. Proposed revised CC&R document
D. Proposed Conservation Easement Management MOU from ACES
E. Conservation Easement Management Plan
F. Deed to Cochise County for Stormwater Recharge Project

The subdivision will continue to have Private roads and the County's pilot stormwater recharge project may be delayed.

After the Chairman signs the three documents:  the plat, the assurance agreement, and the deed, Planning will record the documents and disburse appropriate copies to Pioneer Title, K Ranch, LLC, the BOS, and to the files.  The Deed will be returned to the BOS for permanent retention.