On December 13, 2011 staff presented an update to Council on the status of the 2004 and 2010 bond projects.  At that time staff discussed pursuing the Growing Smart Grant as a means to offset costs of the acquisition of Observatory Mesa.  This is the last grant cycle for the Growing Smarter Grant program.
 
As critical wildlife habitat, a popular recreation corridor, and protection for dark skies, Observatory Mesa is a natural and cultural amenity for northern Arizona. Efforts to protect Observatory Mesa began decades ago and continue today. In 2004, City staff submitted an Arizona Preserve Initiative petition to reclassify 2,260 acres of State Trust land on Observatory Mesa for conservation purposes and voters approved a $5.5 million bond to acquire this land. At this time the bonded amount will not be sufficient to purchase the Observatory Mesa land outright, therefore reliance on grant funding is necessary.
 
The City has the opportunity to use Arizona State Parks Growing Smarter Grant funds in conjunction with the voter-approved bond to acquire conservation land on Observatory Mesa. In order to be considered for the grant funds, the City must successfully petition to have the lands reclassified by the State Land Commissioner as suitable for conservation purposes.
 
As a result, staff has moved forward with the existing Arizona Preserve Initiative Petition to reclassify all 2,260 acres (located within Sections 6, 8, 12, 18 and 19) with the intent to apply for a grant to fund up to 50% of the purchase price by June 28, 2013. The State Land Commissioner reclassified Observatory Mesa as suitable for conservation purposes on March 24, 2013. Arizona State Parks will announce the grant recipients in September 2013. If the City is awarded the grant, the land will be auctioned by the State Land Department by November 2013. If the City is the successful bidder, the City will hold title of the land upon purchase and Arizona State Parks will hold a conservation easement to protect Observatory Mesa in perpetuity.
 
Preserving these Trust Lands at the western edge of the city for conservation purposes and open space has many benefits, including ecological, economical, and recreational. Observatory Mesa is an elongated, flat topped, volcanic feature just west of Flagstaff and southwest of the San Francisco Peaks. The vegetation throughout is primarily Ponderosa Pine and Gambel Oak forest, with open sections atop the mesa supporting extensive grassland tracts and shrub steppe. Observatory Mesa is home to a variety of wildlife including seasonal grazing for elk, deer, mountain lion, and antelope. All the sections of Trust Land on Observatory Mesa individually provide wildlife habitat, but together, with surrounding U.S. Forest Service lands, they would protect the ecological integrity of the area.
 
Protecting State Trust Land on Observatory Mesa positively impacts the observatories, provides protection from further light pollution, and strengthens the astrogeological sector of our economy. Additionally, ownership of the sections would give the City greater access and control in forest and watershed health initiatives, providing increased community protection.
 
After reviewing the developable qualities of the State Land sections on Observatory Mesa, staff have concluded the elevation and shallow soils on thick basalt bedrock would be costly to develop and to provide and maintain services if developed at high densities, thus this area is very suitable for conservation purposes.