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4.
City Council Combined Special Meeting/Work Session
Meeting Date:
11/12/2013
Co-Submitter:
David McIntire, Asst. to City Manager - Real Estate
From:
McKenzie Jones, Sustainability Specialist

TITLE:

Consideration and Possible Adoption of Ordinance No. 2013-25:  Authorizing the purchase of approximately 2,251 acres known as Observatory Mesa.

RECOMMENDED ACTION:

1) Read Ordinance No.2013-25 for the final time by title only
2) City Clerk reads Ordinance No. 2013-25 by title only for the final time (if approved above)
3) Adopt Ordinance No. 2013-25

Policy Decision or Reason for Action:

Subsidiary Decisions Points: In June 2013, Council passed Resolution 2013-12 approving the submission of a grant application to Arizona State Parks for the Growing Smarter State Trust Land Acquisition Program to acquire land at Observatory Mesa. The City has been awarded a $6 million grant through Arizona State Parks Growing Smarter Program to be used towards the acquisition of Observatory Mesa. 
 
This acquisition will be through a live auction process which will be held on December 13, 2013 on the Coconino County Courthouse steps. Staff is requesting a final read at the November 12 Special Council meeting to meet the Public Auction purchasing requirements.

Financial Impact:

This purchase will be funded with a $6,000,000 grant from Arizona State Parks and $6,416,000 of voter-approved open space bond money including $5,500,000 from the Observatory Mesa bond and $916,000 from the Open Space bond.  Through the auction process, the City will be required to meet the terms of the sale which include a deposit or initial fee of $1,462,947.10 that will be credited towards the total purchase. Within 30 days, the City will be required to pay the full balance, including administrative fees.

Connection to Council Goal:

Fund existing and consider expanded recreational services/Retain, expand, and diversify economic base.

Over the years, Observatory Mesa has emerged as an important resource for recreation and tourism. Observatory Mesa hosts a segment of the Flagstaff Loop Trail and Flagstaff Urban Trail System that promote connectivity for non-motorized transportation and recreation. Arizona Game & Fish has identified Observatory Mesa as important wildlife habitat and wildlife movement corridor. According to the National Survey of Fishing, Hunting, and Wildlife Associated Recreation, 1.3 million wildlife viewing participants spend $838 million in Arizona annually. Sites like Observatory Mesa significantly contribute to the local tourism economy. Eco-tourism and its related service sector are important components of Flagstaff's economic base. As such, the natural environment and outdoor recreation opportunities are extremely important to the tourism trade in Flagstaff.

Has There Been Previous Council Decision on This:

Yes, on June 4, 2013 Council passed Resolution 2013-12 approving the submission of a grant application to Arizona State Parks for the Growing Smarter State Trust Land Acquisition Program to acquire land at Observatory Mesa. At the November 5, 2013, Regular Council Meeting the City Council formally accepted the grant, read Ordinance No. 2013-25 for the first time by title only, and adopted Resolution No. 2013-27 (reimbursement resolution).

Options and Alternatives:

Option A –  Read for the second time by title only and adopt at the Special Council meeting on November 12, 2013.
Option B – Not authorize the purchase of Observatory Mesa.

Background/History:

Efforts to protect Observatory Mesa began decades ago and continue today. In 2004, City staff submitted an Arizona Preserve Initiative petition to reclassify State Trust land on Observatory Mesa for conservation purposes and voters approved a $5.5 million bond to acquire this land. As critical wildlife habitat, a popular recreation corridor, and protection for dark skies, Observatory Mesa is a natural amenity for northern Arizona.  

Key Considerations:

In the event of a successful acquisition, the City will be required to allow Arizona State Parks to hold a conservation easement over the property.  

Expanded Financial Considerations:

This purchase will be funded with a $6,000,000 grant from Arizona State Parks and $6,416,000 of voter-approved open space bond money including $5,500,000 from the Observatory Mesa bond and $916,000 from the Open Space bond.  Through the auction process, the City will be required to meet the terms of the sale which include a deposit or initial fee of $1,462,947.10 that will be credited towards the total purchase. Within 30 days, the City will be required to pay the full balance, including administrative fees.

Community Benefits and Considerations:

Acquiring Observatory Mesa as open space will provide a natural place within city limits for members of the Flagstaff community to learn about ecology, geology, and astronomy while participating in outdoor recreation. Preserving the mesa will protect important view sheds for Flagstaff residents and visitors to the region. Preserving Observatory Mesa positively impacts the observatories, provides protection from further light pollution, and strengthens the astrogeological sector of economy. Additionally, ownership of these sections would give the City great access and control in forest and watershed health initiatives, providing increased community protection from fire threats.






Community Involvement:

Involve - In 2004, Flagstaff voters approved a $5.5 million bond to acquire State Trust lands on Observatory Mesa as open space. On February 12, 2013, approximately 100 community members attended the State Land Public Comment Hearing and spoke out in unanimous support for the reclassification of Observatory Mesa as suitable for conservation purposes. The City of Flagstaff received 28 letters of support for the preservation process from community members and groups.

Expanded Options and Alternatives:

Option A –  Read for the first time by title only on November 5, 2013, and read for the second time by title only and adopt at the Special Council meeting on November 12, 2013.
Option B – Not authorize the purchase of Observatory Mesa.

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