As a 100% Affordable Housing Project, the San Francisco Square is a proposed 146 unit affordable housing apartment building to be developed by the Foundation for Senior Living.  The project has received Low Income Housing Tax Credit (LIHTC) and will serve eligible households with an income of 80% Area Median Income or less.  The project will be constructed in two phases.  The second phase will include a parking structure that will include 97 public parking spaces to support the Flagstaff Courthouse operations and the community's historic downtown.  

The project presents a great parking partnership opportunity.  There is an existing and intended partnership between the Foundation for Senior Living (FSL) and the City of Flagstaff.  Currently, the City licenses the southern half of the parcel from FSL for $1,250 per month for use as a surface parking lot.  This lot serves the Municipal Court's staff and customers as well as the general public.  The lot today is managed by ParkFlag.  In the future, the intention is to generate permanent parking for the Municipal Court and for the public through finished spaces in the development within a parking garage and purchased by the City for the cost of its development.  This future parking structure will also be managed by ParkFlag and will generate ongoing revenues.

The City Council approved a new Affordable Housing Incentive in March, 2021.  The incentive allows City Council to approve modifications from the zoning code for projects that provide 100% affordable units that serve 80% Area Median Income (AMI) or less.  The purpose of the subject item is to introduce the project to the City Council and community in preparation for consideration of the modifications at a future meeting.  The modification incentive requires notification to interested parties and surrounding property owners and the property will be posted with a meeting notice.  Staff anticipates the request will be heard in December, 2021. 

The site plan for the San Francisco Square was approved in October, 2021 with a condition that City Council approve the requested modifications. 
  
Partnership Opportunities –
As mentioned above, there is an existing and another intended partnership between FSL and the City.
 
Currently, the use of their property through a license has provided the first substantial amount of new public parking for the downtown area in many years.  The parking lot, with 90 parking spaces, was built on the licensed land to serve Municipal Court staff and customers as well as the public, patrons, and employees of the downtown.  After FSL provided the license, the Capital Improvements Team prepared the surface lot and ParkFlag now manages it.  Revenues from the pay-to-park use of the lot are intended to pay for any ongoing maintenance required.
 
Additionally, there is an intention of both parties to generate a public parking facility as a part of the overall project. This parking garage is anticipated to be built by FSL as a part of their second phase, and the City will acquire finished spaces within the structure by paying the verified cost of construction.  The garage spaces, like the current surface lot, will serve the Municipal Court staff and customers as well as patrons and employees of the downtown itself.  It is currently planned to be 97 spaces and will likely be acquired by the City after being developed.
 
The negotiations and planning on this deal have been paused until the FSL team has accomplished the lot split between their two phases.  Once that has been accomplished the intention is to reach a mutually beneficial agreement for the project and to finalize costs and other variable items, and then bring the agreement to Council for consideration.
 
Based on current estimates for construction and soft costs, along with the proportionate purchase of the land, the City’s purchase price for the completed parking garage is $4,832,410 or approximately $48,819 per space.