Consideration and Adoption of Resolution No. 2021-12:  A resolution of the City Council of the City of Flagstaff, Arizona, authorizing the execution of a Development Agreement between Auza Flagstaff, LLC and Trinsic Acquisition Company, LLC, and the City of Flagstaff related to the development of approximately 11 acres of real property generally located at 151 West High Country Trail, APNs 112-05-001W and 112-05-011 in Flagstaff, Arizona and establishing an effective date. (Aura Flagstaff Development Agreement)

State law allows the City to enter into development agreements by resolution of the City Council. The Aura Flagstaff Development Agreement will be between Auza Flagstaff, LLC (the “Owner”) and Trinsic Acquisition Company, LLC (the “Developer”), and the City of Flagstaff. The proposed agreement sets out roles and responsibilities in regard to the construction and maintenance of the FUTS, Affordable Housing, construction of four on-site pickleball courts, and a resource protection easement for the portion of the property north of High Country Trail, among other items.

No financial impacts are anticipated with this development agreement.

There are no policy impacts affiliated with this development agreement.

Priority Based Budget Key Community Priorities and Objectives
Safe & Healthy Community 

• Support social services, community partners, and housing opportunities

Sustainable, Innovative Infrastructure 

• Facilitate and develop carbon-neutral energy opportunities

Robust Resilient Economy 

• Support and strengthen a more robust, diverse, and sustainable economy in ways that reflect community values and provides for affordable housing opportunities

Livable Community 

• Create a welcoming community through partnerships, resilient neighborhoods, and civic engagement
• Provide amenities and activities that support a healthy lifestyle
• Actively support attainable and affordable housing through City projects and opportunities with developers

Regional Plan
A complete analysis of the Regional Plan goals and policies can be found in the Planning & Zoning Commission Direct to Ordinance Zoning Map Amendment staff report dated April 9, 2019.

There has not been previous Council decision on this item.

1. Approve the Aura Flagstaff Development Agreement as presented.
2. Approve the Aura Flagstaff Development Agreement with additional, modified, or deleted terms.
3. Remand the Aura Flagstaff Development Agreement back to staff for additional negotiations with Auza Flagstaff, LLC, and Trinsic Acquisition Company, LLC.
4. Deny the Aura Flagstaff Development Agreement.

Auza Flagstaff, LLC, and Trinsic Acquisition Company, LLC. are requesting a zoning map amendment to rezone 11 acres of property generally located at 151 West High Country Trail from Estate Residential (ER) to Medium Density Residential (MR).  This would allow the development of a 160 unit multifamily residential development.   The Development Agreement helps to ensure that the development of the property complies with City Standards for development and engineering improvements, Regional Plan goals and policies, and City Council goals.

A draft development agreement, attached to this report, has been prepared.  The primary purpose of this agreement is to set out roles and responsibilities regarding the following (not limited to): 

• Require the property to be maintained as a single parcel
• Construction and maintenance of the FUTS
• Administration of the Affordable Housing units
• Resource Protection easement for the portion of the parcel north of High Country Trail
• Sustainability density bonus requirements
• Inclusion of four Pickleball Courts on-site for public use
• Installation of one dual-port electric vehicle charging station
• Commitment to provide recycling collection services
• Bicycle Storage and Amenities
• Limit Lease terms: No less than thirty (30) days

Staff is requiring an easement over the portion of the property located north of High Country Trail to ensure that the required tree resources located on the property are not removed and to prohibit further development, as any additional development rights/density have been utilized on the southern portion of the parcel.

Community benefits and considerations related to this request are addressed in more detail in the Planning & Zoning Staff Report, dated November 24, 2020, and attached to the Zoning Map Amendment staff summary.

Public hearings before the Planning and Zoning Commission and City Council are conducted in conjunction with requests for Direct to Ordinance Zoning Map Amendments. In accordance with State Statute, a notice of the public hearing was provided by placing an ad in the Daily Sun, posting notices on the property, and mailing a notice to all property owners within 1,000 feet (exceeding the minimum of 300 feet) of the site excluding rights-of-way.

The developer held two neighborhood meetings in regard to this case on March 23, 2020, and July 1, 2020. Both meetings were held virtually due to the pandemic. Per the meeting sign-in, approximately thirty-five (35) individuals attended both meetings. Citizen Participation summaries were prepared in response to the questions, comments and concerns presented and are attached to the Zoning Map Amendment staff report. The meetings included a presentation from the developer and a question-and-answer session where questions could be typed into the chat. Comments on the project included the following topics: the area north of the road, open space requirements, traffic impacts, stormwater, views, and tree resources. 
Two emails from the public have been received as of the initial writing of the Zoning Map Amendment staff report.  The emails are from neighbors opposed to the development. Staff also received a letter from the president of the Ponderosa Trails HOA informing staff that a poll of the property owners was conducted and resulted in 88% of respondents opposing the rezoning, 11% in favor, and 1.5% did not have an opinion either way. Copies of the correspondence are attached to the Zoning Map Amendment staff report.

Additional emails have been forwarded by staff or sent directly to the Mayor and Councilmembers.