View Agenda Item

7.D.

City Council Meeting - FINAL

Meeting Date:: 10/17/2017
Co-Submitter:: David McIntire
From:: Anja Wendel, Senior Assistant City Attorney AW

Information

TITLE:

Consideration and Approval of Contract: Fourth Amendment to Declaration of Covenants, Conditions, Restrictions and Easements for Flagstaff Auto Park (to allow auto body shop on Lot 8)

STAFF RECOMMENDED ACTION:

Approve the proposed Fourth Amendment and authorize the Mayor to sign the document.

Executive Summary:

The City helped develop the Flagstaff Auto Park. As such, the City retains a role related to the Declaration of Covenants, Conditions, Restrictions and Easements for the Flagstaff Auto Park ("CC&Rs"). Per the CC&Rs Section 13.02, City approval is required in the event there is a desire to amend the CC&Rs, Section 10.1, Permitted Operations and Uses. The proposed Fourth Amendment to the CC&Rs would allow an auto body shop use on Lot 8 in the Auto Park.

Financial Impact:

A buyer seeks to purchase Lot 8 for operation of an auto body shop from the owner, Flagstaff Auto Mall Development, LLC. Per a separate Development Agreement, City will receive net proceeds from the sale (estimated $680,000) that will be returned to the Highway User Revenue Fund ("HURF") for Sunnyside Improvements.

Policy Impact:

None.

Connection to Council Goal, Regional Plan and/or Team Flagstaff Strategic Plan:

COUNCIL GOALS
Economic Development - Grow and strengthen a more equitable and resilient economy. Complete the sale of auto mall properties.

FLAGSTAFF REGIONAL PLAN 2030
Auto Park is identified in the Regional Plan for development.

Has There Been Previous Council Decision on This:

No.

Options and Alternatives:

1. Approve Fourth Amendment (enables auto body use on Lot 8 desired by prospective purchaser)
2. Do not approve Fourth Amendment (sale of Lot 8 will not go through, and property will continue to be marketed)

Background and History:

The Auto Park is located in a redevelopment area near the Flagstaff Mall in east Flagstaff. The City and several developers were involved with development of the Auto Park. There are only a few undeveloped lots left within the Auto Park.

Key Considerations:

At least 2/3 of the Auto Park property owners support allowing an auto body use on Lot 8. An auto body shop would only be allowed on Lot 8, not other lots.

Community Benefits and Considerations: