Consideration and Adoption of Resolution No. 2020-50:  A resolution authorizing the execution of a Development Agreement between Flagstaff at Fourth, LLC and the City of Flagstaff related to the development of approximately 13.65 acres of real property (APN 106-08-005J) located at 1002 N Fourth Street. (Flagstaff at Fourth Development Agreement) 

State law allows the City to enter into development agreements by resolution of the City Council. The Flagstaff at Fourth Development Agreement will be between Flagstaff at Fourth, LLC, and the City of Flagstaff. The proposed agreement governs the terms and conditions of the entitlements, on-site improvements, in-lieu fees for required frontage improvements, a proportional payment for a permanent stoplight at N Fourth Street and Butler Ave, a proportional share of the JW Powell Improvement District 20” Water Transmission Main, the extent of the commercial shell building finishes and systems installation, Affordable Housing, multi-family dwelling unit mix, and the quantity and locations of on-site bicycle parking and electric vehicle charging stations and infrastructure installation.

There are no financial impacts associated with the Development Agreement.

There are no policy impacts affiliated with the Development Agreement.

PBB Key Community Priorities/Objectives

Livable Community: Support the development of attainable and accessible housing.

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 July 1, 2020.

There has not been previous Council decision on this item.

The City Council may:
1. Approve the Flagstaff at Fourth Development Agreement as presented.
2. Approve the Flagstaff at Fourth Development Agreement with additional, modified, or deleted terms.
3. Remand the Flagstaff at Fourth Development Agreement back to staff for additional negotiations with Flagstaff at Fourth, LLC.
4. Deny the Flagstaff at Fourth Development Agreement.

The applicant, Flagstaff at Fourth, LLC, is requesting a zoning map amendment to rezone approximately 13.65 acres of property located at 1002 N Fourth Street (APN 106-08-005J) from Medium Density Residential (MR) to Highway Commercial (HC), for purposes of a horizontal mixed-use development composed of a single-story 6,000 SF detached commercial retail building, four (4) 62,680 SF, 4-story apartment buildings mixing studio, one and two-bedroom units (224 units total), and a 4,756 SF clubhouse and leasing office with pool and grilling area. Required on site resource protection, parking, common public and private open space, and civic spaces are included in the proposal.

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. Staff believes that development of the property pursuant to this agreement will result in planning, safety, and other benefits to the City and its residents.

Summary of Flagstaff at Fourth Development Agreement Points:

• Records unit mix indicated in approved Site Plan with maximum 10% variation allowed without Council review.
• Defines scope of commercial suites interior and systems construction finish.
• Frontage improvement in-lieu fees for completion by City as part of “Butler Widening” capital improvement plan
• Proportional share cost of a permanent stop light at the intersection of N Fourth St and Butler Ave
• Proportional share cost of the John Wesley Powell Improvement District Waterline main
• Administration of the Affordable Housing units; developer proposes 10% of units for Affordable Housing
• Commercial space(s) not leased for a specified period of time will require the Developer to work with City staff to place non-profit businesses in tenant spaces at a reduced or no cost lease agreement.
• Includes general location, infrastructure and, as required, equipment for up to 12 electric vehicle charging spaces on-site.
• Project will provide 190 on-site bicycle parking spaces per approved Site Plan: 6 commercial, 24 exterior residential, and 160 secured resident bicycle parking spaces within the four residential structures.

The project includes 22 affordable housing units serving an average of 80% area median income (AMI) and will accept HUD Housing Choice Vouchers and Veterans Affairs Supportive Housing (“VASH”) Vouchers.  The project contributes to the growth and stability of a number of surrounding preexisting suburban neighborhoods and provides a missing commercial use to the Regional Suburban Activity Center. The required civic spaces provide an amenity to the development and surrounding community and take advantage of preserved existing ponderosa pines on-site.

Per requirements of the Flagstaff Zoning Code, the applicant held two neighborhood meetings to discuss the proposed Zoning Map Amendment with the surrounding community. The first meeting was held on October 29, 2019 at 5:30 pm. at the Sinagua Middle School Auditorium and the second meeting was held on December 19, 2019 at 6:00 pm. at the Flagstaff Aquaplex. There have been no specific public meetings conducted on the Flagstaff at Fourth Development Agreement.