Consideration and Approval of Agreement:  Consideration of Amendment Two to the Fourth Amended and Restated Development Agreement and Waiver ("Amendment") between the City of Flagstaff and Flagstaff Aspen Place, LLC, and Alliance Bank of Arizona, for Aspen Place at the Sawmill Commercial Parcels.

Approve the proposed Amendment to the Development Agreement between the City of Flagstaff and Flagstaff Aspen Place, LLC, and Alliance Bank of Arizona as recommended by city staff and authorize the Mayor to sign the agreement.

• This request is the first of two related items; the second item is the second reading and adoption of the rezoning ordinance.  Approval of the Amendment will clarify matters regarding development of the commercial parcels located at the southeast corner of Butler Avenue and Lone Tree Road within the Aspen Place at the Sawmill subdivision. 
• On October 15, 2013, the City Council conducted a Public Hearing concerning the rezoning request for the Village at Aspen Place mixed use proposal.  On October 15, the City Council approved the rezoning for the first time with stipulations.
• Subsidiary Decisions Points: A Council action approving this Amendment is included on the Council agenda for the November 19, 2013 meeting to be read and, at the Council's direction, approved prior to the second reading and approval of Rezoning Ordinance 2013-23.

The recommended action would permit the immediate development of 33,000 square feet of commercial and 222 luxury apartments on an infill location with existing infrastructure.  Flagstaff Aspen Place ("Owner") would be responsible for costs associated with abandoning unused public utility stubs for the proposed Village at Aspen Place, constructing a right-turn lane from Butler Avenue onto Windsor Lane, and constructing a temporary southbound left turn access from Lone Tree onto Churchill Drive.Collection of the development fees (Fire and Police related)  is described further under Expanded Financial Considerations.

Retain, expand, and diversify economic base.
Effective governance.

Yes, the City Council approved the zoning map amendment ordinance for the first time at the October 15, 2013 meeting.

• (Recommended Action):  The Council may approve the proposed Amendment as presented.
• The Council may deny the proposed Amendment.
• The Council may modify the proposed Amendment.

See the Zoning Map Amendment report to the Planning and Zoning Commission dated September 3, 2013, attached with the Public Hearing PC REZ 2013-0001 staff summary report.

State law allows the City to enter into development agreements.  The proposed amended Development Agreement, along with the Rezoning Ordinance, would govern the terms and conditions of the zoning and development of The Village at Aspen Place and the commercial parcels within the Aspen Place at the Sawmill subdivision, as defined in Section 1 of the Amendment.  The New Frontiers parcel is not part of this Amendment.

The original development plans for The Village at Aspen Place property planned for only 18 residential apartment units and 46,600 square feet of commercial development.  As such, development fees (Fire and Police related) for only the first 18 residential apartment units and development fees for the commercial portion of the development will be waived consistent with the Fourth Amended development agreement.  Owner also agrees to contribute $25,000.00 to further affordable housing efforts by the City. Owner is in escrow with Alliance Bank of Arizona for a portion of the commercial parcels, and Alliance Bank has consented to and acknowledged this Amendment by their inclusion on the agreement.

Development agreements have the potential to strengthen the planning process, encourage orderly development, facilitate the completion of public improvements, and provide certainty in the review process.

Inform.  In accordance with State statute, notice of the public hearing for the Zoning Map Amendment associated with this development agreement amendment was provided by placing an ad in the Daily Sun, posting notices on the property, and mailing a notice to all property owners within 300 feet of the subdivision.  One e-mail was received by staff before the Planning Commission meeting. Staff also responded to a request for information by a citizen at the Community Development counter.