Consideration and Possible Adoption of Resolution No. 2019-18:  A resolution authorizing the execution of a Development Agreement between Woodshire on Butler, LLC, and the City of Flagstaff related to the development of approximately 4.06 acres of real property generally located at 2989 E. Butler Avenue (APN 106-04-007B) and 3001 E. Butler Avenue (APN 106-04-006C). (Woodshire on Butler Development Agreement)

State law allows the City to enter into development agreements by resolution of the City Council. The Woodshire on Butler Development Agreement will be between Woodshire on Butler, LLC, and the City of Flagstaff. The proposed agreement governs the terms and conditions of the entitlements, on and off-site improvements and contribution requirements, a temporary access easement, off-site water requirements and affordable housing related to the project, which is located at 2989 and 3001 E. Butler Avenue.

**A Powerpoint presentation will be provided prior to the final agenda.**

No financial impacts are anticipated with this development agreement.

There are no policy impacts affiliated with the development agreement.

Council Goals
Economic Development - Grow and strengthen a more equitable and resilient economy.
Affordable Housing - Support development and increase the inventory of public and private affordable housing for renters and home buyers.

Team Flagstaff Goals
Strategic Priority #4 - Work in partnership to enhance a safe and livable community.

Regional Plan
Goal NH.3. Make available a variety of housing types at different price points, to provide housing opportunity for all economic sectors.

No

1. Approve the Woodshire on Butler Development Agreement as presented.
2. Approve the Woodshire on Butler Development Agreement with additional, modified, or deleted terms.
3. Remand the Woodshire on Butler Development Agreement back to staff for additional negotiations with Woodshire on Butler, LLC.
4. Deny the Woodshire on Butler Development Agreement.

Woodshire on Butler, LLC (developer), owns 3.31 acres of real property located at 3001 E. Butler Avenue, parcel number 106-04-006C, and intends to purchase a 0.75-acre portion of City Parcel 106-04-007B located at 2989 E. Butler Avenue. The developer proposes to develop a residential community of approximately 50 detached condominium homes as more specifically described in the Preliminary Plat. The Development Agreement helps to ensure that the development of the property complies with City standards for development and engineering improvements, the Regional Plan's goals and policies, and City Council goals. The City believes that development of the property pursuant to this agreement will result in planning, safety, and other benefits to the City and its residents.

The developer was the sole bidder on the Invitation for Bids which was advertised in January 2019. The minimum bid requirement included that the developer construct and sell at least five (5) affordable units (10% of the total). The affordable housing section of the development agreement outlines the obligations of the developer and the City.

On May 1, 2019, the Inter-Division Staff approved a Site Plan and related Preliminary Plat for the proposed development of 50 residential units. On June 12, 2019, the Planning & Zoning Commission recommended approval (4-0) of a Conditional Use Permit to allow 10 detached residential units, as a Planned Residential Development, to be constructed on the City Parcel which is zoned Highway Commercial (HC).

Summary of Woodshire on Butler Development Agreement Deal Points:

• Developer shall widen Butler Avenue, as shown on the Preliminary Plat, to provide a left-turn lane at the Site driveway. Additionally, Developer shall pay cash-in-lieu for constructing the required roadway frontage improvements and a future right-turn lane at the Butler Avenue driveway, in the amounts shown in Exhibit D.
• The City will grant a temporary access easement across the remaining portion of the City parcel located at 2989 E. Butler Avenue, as defined in Exhibit C.
• Developer will make a cash-in-lieu contribution for the development's portion of the off-site improvement costs of the secondary water source.
• Developer agrees to provide a minimum of five (5) permanently affordable ownership units.

Community benefits and considerations related to this request are addressed in more detail in the Planning & Zoning Commission Preliminary Plat staff report dated June 4, 2019.

For the Conditional Use Permit application for 10 units on the City parcel, the applicant advertised June 12, 2019, Planning & Zoning Commission public hearing as required by the Flagstaff Zoning Code. No public hearings are required for Preliminary Plats, but city staff presented the proposed Preliminary Plat at the June 12th meeting following the Conditional Use Permit request.