14.D.
City Council Meeting - FINAL
- Meeting Date:
- 05/07/2013
- Submitted For:
- Jim Cronk, Planning Director
- From:
- Neil Gullickson, Planning Development Manager
Information
TITLE:
Consideration and Approval of Settlement and Release Agreement: Canyon Del Rio.
RECOMMENDED ACTION:
Approve the Settlement and Release Agreement between the Canyon Del Rio Investors, LLC and the City of Flagstaff, AZ, authorize the City Manager to sign the Agreement and any other necessary and appropriate documents; and authorize staff to take other actions as needed to further the Council direction.
Policy Decision or Reason for Action:
In 2008, CDR filed suit against the City of Flagstaff in Coconino County Superior Court seeking declaratory relief, monetary damages, and injunctive relief relative to CDR property. (This suit relates to the appropriate Zoning Code to be used to allow CDR to proceed to plan & develop their property.)
In 2010, the City of Flagstaff filed suit against CDR in Maricopa County Superior Court seeking monetary damages relating to CDR property and CDR filed counter claims. (This suit relates to CDR reimbursing the City for past improvements to Butler Avenue.)
Both lawsuits remain unresolved and are still pending.
The City and CDR have been negotiating for approximately 2 years under the Rule 408 Confidential Process. The attached Settlement and Release Agreement is a result of those negotiations.
This Agreement sets out the framework on how CDR and the City will move forward on processing a large rezoning request the attached Agreement includes additional details. It also requires CDR to place the remaining $123,781.50 owed to the City for Butler Avenue improvements identified in the Maricopa Co. lawsuit, in escrow within 10 days of this Agreement becoming final.
If the Council approves this Agreement, both CDR and the City will jointly file with the Courts in both, Coconino County Action and the Maricopa County Action, a Notice of Tentative Settlement and Stipulation to Stay Action pending City Council formal action on the Entitlement Documents.
Subsidiary Decisions Points:
There are no additional decision points relating to this Agreement.
In 2010, the City of Flagstaff filed suit against CDR in Maricopa County Superior Court seeking monetary damages relating to CDR property and CDR filed counter claims. (This suit relates to CDR reimbursing the City for past improvements to Butler Avenue.)
Both lawsuits remain unresolved and are still pending.
The City and CDR have been negotiating for approximately 2 years under the Rule 408 Confidential Process. The attached Settlement and Release Agreement is a result of those negotiations.
This Agreement sets out the framework on how CDR and the City will move forward on processing a large rezoning request the attached Agreement includes additional details. It also requires CDR to place the remaining $123,781.50 owed to the City for Butler Avenue improvements identified in the Maricopa Co. lawsuit, in escrow within 10 days of this Agreement becoming final.
If the Council approves this Agreement, both CDR and the City will jointly file with the Courts in both, Coconino County Action and the Maricopa County Action, a Notice of Tentative Settlement and Stipulation to Stay Action pending City Council formal action on the Entitlement Documents.
Subsidiary Decisions Points:
There are no additional decision points relating to this Agreement.
Financial Impact:
This agreement will reduce outside attorney’s fees during the period of the Stay and could reduce them permanently. CDR will also place the remaining funds sought by the City for the Butler Avenue case in escrow as per the Agreement.
Connection to Council Goal:
Effective governance.
Has There Been Previous Council Decision on This:
This will be the Council’s first action on this Settlement and Release Agreement.
Options and Alternatives:
Modify or reject the Agreement.
Community Involvement:
Inform
Council Action:
05/07/13 - APPROVED - SLS