Consideration and Adoption of Resolution No. 2018-42 approving Intergovernmental Agreement with ADOT for P3/Mill Town Project: A resolution approving an Intergovernmental Agreement (IGA) between the City of Flagstaff (City) and the Arizona Department of Transportation (ADOT) related to the P3/Mill Town project. (IGA detailing real estate transactions between the parties to facilitate transportation improvements, ADOT relocation, and development of former City and ADOT properties)

P3 is a public/private partnership between the City of Flagstaff, Arizona Department of Transportation and Vintage Partners, LLC which is also commonly known as the Mill Town project. This project will relocate existing ADOT facilities on Milton Road to the former Harkins Theater site on Woodlands Village Boulevard, enable the extension of Beulah Boulevard to University Avenue and the realignment of University Avenue, and will include the redevelopment of the existing ADOT property.

The City purchased the 9.23 acre Fresquez property in 2005 for the purpose of completing the University and Beulah roadway improvements.

On December 2, 2014 the City Council approved the P3 Pre-development Agreement between the City of Flagstaff, Arizona Department of Transportation and Vintage Partners, LLC, which was reinstated and amended on August 21, 2017 to enlarge the timeframes within that agreement. On December 19, 2017 the City Council again approved the amendment of that agreement to enlarge the timelines. That was the preliminary agreement for the City, ADOT and Vintage Partners, LCC to work together toward the extension of Beulah Blvd., realignment of University Ave., the relocation of ADOT facilities, and the development of approximately 18 acres at or near the current ADOT facilities.

On April 17, 2018 the City Council approved the following:

• Ordinance 2018-13, a zoning map amendment that rezoned a roughly 18 acre area at or near the ADOT facility on Milton to Highway Commercial with a Resource Protection Overlay;
• Resolution 2018-13, authorizing the development agreement between Vintage Partners, LLC and the City of Flagstaff for the development of the same 18 acre area;
• A Preliminary Plat that subdivided the same 18 acre area into two lots, two tracts, and public rights-of-way.

Related to this IGA, ADOT and Vintage Partners, LLC will enter a separate Implementation Agreement which will work together with this IGA and the development agreement between the City and Vintage.

Staff now recommends adoption of Resolution 2018-42 approving the IGA between the City and ADOT to facilitate completion of the project elements noted in the first paragraph of this executive summary; including the transportation improvements which will realign University Avenue and extend Beulah Boulevard through to University Avenue. Resolution 2018-42 and the IGA are attached to this staff summary.

The City purchased the 9.23 acre Fresquez property in 2005 and will complete the University/Beulah roadway improvements using voter approved Transportation bond funds. No additional funding is anticipated at this time.

Promote transportation infrastructure and services that enhance the quality of life of the communities within the region.

Deliver quality community assets and continue to advocate and implement a highly performing multi-model transportation system.

Improve mobility and access throughout the region.
Provide a continuous transportation system with convenient transfer from one mode to another.
Coordinate transportation and other public infrastructure investments
efficiently to achieve land use and economic goals.

Improve transportation safety and efficiency for all modes.
Design infrastructure to provide safe and efficient movement of vehicles,
bicycles, and pedestrians.

Promote transportation infrastructure and services that enhance the quality of life of the communities within the region.

There has been no previous City Council action on this specific Resolution and IGA; however, previous City Council action was taken on items related to this project as outlined and set forth in the executive summary above.

1. Adopt Resolution 2018-42 approving the IGA with ADOT.
2. Work independently with ADOT to acquire the necessary right-of-way and relocate their facilities.

In 2005 the City purchased 9.23 acres located west of the existing ADOT facility at 1801 S. Milton Road with the intention of completing Beulah Boulevard to University Avenue and to realign the west leg of University Avenue to connect at the existing traffic signal of Milton Road and east University. City staff completed programed $7.4 million in the FY2015-2019 Capital Improvement Plan for design and construction. Both the acquisition and new roadways are funded by the Transportation Tax. The State of Arizona allows the Arizona Department of Transportation to participate in public/private partnerships (P3) that provide a benefit to the ADOT operations and the public interest. From this the P3 idea for this location was formed and ADOT issued a Request for Proposals for the redevelopment of the site to include the proposed roadway improvements. The successful proposal needed to include a new location ready for occupancy for the ADOT facility.

The selection committee included representatives from the City and ADOT and the RFP resulted in 4 proposals. The successful proposal was prepared by Vintage Partners, LLC. The proposal involved the relocation of ADOT to the existing Harkins Theater on Woodlands Village Boulevard and redevelopment of the existing site with a mixed use project that will dedicate the right-of-way required to construct the University/Beulah improvements. Multiple transactions are required to accomplish the project which are detailed in this IGA including the City's conveyance of the 9.23 acre Fresquez parcel to ADOT in exchange for the ADOT land needed to complete the University realignment. ADOT will then convey the land (less the ROW needed for University and Beulah) to Vintage Partners in exchange for their new facility on Woodlands Village Boulevard.

Council already approved the rezone and development agreement for the project. While the capital funding for the transportation improvements was programmed, obtaining the land needed for right-of-way and relocating ADOT would be significant additional expenses that are not part of the funding programmed for the transportation improvements.

The Beulah Boulevard extension and University Avenue realignment have been and continue to be programmed in the FY 2015-2019 Capital Transportation Plan.

Although the primary benefit of the P3/Mill Town project for the City is the completion of the University/Beulah roadway improvements, the redevelopment of the ADOT site will have an economic benefit to the community. The University/Beulah roadway improvements have been identified as an important project to incrementally address the existing congestion problem on Milton Road.

Inform - The public voiced opinions on the proposed P3/Mill Town project during a public hearing which occurred prior to the rezone and development agreement which were approved by the City Council on April 17, 2018.
Involve - Public participation was included in the rezoning process.
Collaborate - P3/Mill Town is certainly a collaboration between the State, City, and Vintage Partners, LLC, a private company, and the public who commented during the public hearing on the rezoning.
Empower - The voters of Flagstaff approved the 2000 Transportation Tax which funded the Fresquez acquisition and the $7.4 million programed in the Capital program for the University/Beulah roadway improvements.