12.F.
City Council Meeting - FINAL
- Meeting Date:
- 04/04/2023
- From:
- Bryce Doty, Real Estate Manager
Information
TITLE:
Consideration and Adoption of Ordinance No. 2023-10: An ordinance of the Flagstaff City Council authorizing the acquisition of real property interests for the Milton Road and University Avenue right-of-way project; providing for delegation of authority, repeal of conflicting ordinances, severability, clerical corrections, and establishing an effective date
STAFF RECOMMENDED ACTION:
1) Read Ordinance No. 2023-10 by title only for the first time
2) City Clerk reads Ordinance No. 2023-10 by title only (if approved above)
3) Read Ordinance No. 2023-10 by title only for the final time (requires unanimous vote)
4) City Clerk reads Ordinance No. 2023-10 by title only (if unanimously approved above)
5) Adopt Ordinance No. 2023-10 (requires unanimous vote)
2) City Clerk reads Ordinance No. 2023-10 by title only (if approved above)
3) Read Ordinance No. 2023-10 by title only for the final time (requires unanimous vote)
4) City Clerk reads Ordinance No. 2023-10 by title only (if unanimously approved above)
5) Adopt Ordinance No. 2023-10 (requires unanimous vote)
Executive Summary:
On December 6th, 2022, City Council approved Ordinance No. 2022-24 which authorized property acquisitions required for the Milton Road and University Avenue right-of-way project. Further design efforts have identified modified property acquisitions not originally authorized by Ordinance No. 2022-24, resulting in ten modified legal descriptions capturing the following design changes:
Due to the construction timeline of the project and the urgent need for property rights, this ordinance is presented as a 1st and 2nd read at the same council meeting.
- Revised ROW (BU-10) for reduction from ultimate ROW for Woodlands Village property from 11,178 sq. ft. to 3,545 sq. ft.
- New underground infrastructure easements on APNs 103-21-021B (Burger King, BU-46B) and 103-22-005A (Target, BU-78) for the pedestrian underpass
- Revised public utility easement on APN 103-21-021B (Burger King, BU-47/66) to shift fire hydrant and water service away from underpass construction limits
- New temporary construction easement (BU-79) for driveway improvements for Woodlands Village property
- Revised drainage easement (BU-09) limits to new ROW for Woodlands Village property
- Revised ROW (BU-22) for reduction from ultimate ROW on University Square Apartments (University Ave).
Due to the construction timeline of the project and the urgent need for property rights, this ordinance is presented as a 1st and 2nd read at the same council meeting.
Financial Impact:
In May 2000, the Flagstaff voters approved Proposition 403 which provided funding for improvements to Traffic Flow and Safety. As part of this proposition, two of those projects apply to the Project. These two projects were the University Avenue Realignment and Beulah Boulevard Extension.
City Staff completed a preliminary realignment plan and programmed $7.4 million in the FY2015 Capital Improvement Program Summary. In FY2023, an additional $9.2M was budgeted for the Project from the 419 Transportation Tax. These two allocations provided a combined total $16.6M for the Project.
Vintage Partners, LLC, will also contribute $1.65M for the pedestrian underpass commitment. It should be noted that Vintage Partners is responsible for all costs associated with the pedestrian underpass and per Amendment One to the Development Agreement, those costs must be repaid to the City within five (5) years.
As a result of changing the project design to reduce the scope of the taking, City staff anticipates that property acquisition costs will be reduced by more than $300,000.
City Staff completed a preliminary realignment plan and programmed $7.4 million in the FY2015 Capital Improvement Program Summary. In FY2023, an additional $9.2M was budgeted for the Project from the 419 Transportation Tax. These two allocations provided a combined total $16.6M for the Project.
Vintage Partners, LLC, will also contribute $1.65M for the pedestrian underpass commitment. It should be noted that Vintage Partners is responsible for all costs associated with the pedestrian underpass and per Amendment One to the Development Agreement, those costs must be repaid to the City within five (5) years.
As a result of changing the project design to reduce the scope of the taking, City staff anticipates that property acquisition costs will be reduced by more than $300,000.
Policy Impact:
None
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan:
Priority Based Budget Key Community Priorities and Objectives
Safe and Healthy Community -
Safe and Healthy Community -
- Foster a safe, secure, and healthy community.
- Ensure the built environment is safe through the use of consistent standards, rules and regulations, and land use practices.
- Advance social equity and social justice in Flagstaff.
- Deliver outstanding services to residents through a healthy, well maintained infrastructure system.
- Utilize existing long-range plans that identify the community's future infrastructure needs and all associated costs.
- Identify smart traffic management, multi modal transportation, and alternative energy opportunities.
- Implement sustainable building practices and alternative energy and transportation options.
- Implement, maintain and further the Climate Action and Adaptation Plan.
- Improve transportation safety and efficiency for all modes.
Has There Been Previous Council Decision on This:
City Council previously authorized real property acquisitions for the project on October 19, 2021 and again on December 6, 2022 as the project design changed.
Background and History:
On May 16, 2000, the voters of Flagstaff passed Proposition 403 which established a local transportation tax rate to provide funding for a variety of transportation system improvements including the arterial and collector street system, and multi-modal elements. The information pamphlet for this proposition specifically identified the Beulah Boulevard extension and the University Avenue realignment as “missing links” within the overall transportation network. The publicity pamphlet for Proposition 403 showed an alignment for these roadways like the current proposal. A total of $7.375 million has been collected and allocated for these transportation improvements. These funds became 100% available as of July 1, 2017; however, many years of work have been spent on moving this project forward.
In 2005, the City of Flagstaff acquired APN 103-21-002, a 9.58-acre site known as the “Fresquez Parcel” for approximately $2.7 million. This purchase was the first step in moving this transportation project to fruition and provides the majority of right-of-way necessary to accomplish the Beulah Boulevard extension. In order to accomplish the University Avenue/Drive realignment, the ADOT District Offices and Regional Laboratory need to be relocated.
Following the acquisition of the Fresquez parcel, the City and ADOT began to explore options for partnerships in order to relocate the ADOT facilities. In July 2009, the Arizona P3 (Public-Private-Partnership) Legislation was passed, allowing for partnerships between a public agency (in this case two public agencies) and a private-sector entity to allow greater participation in the delivery of a transportation project. Typically, the public agency assumes all the risks and responsibilities for a transportation project, but under the P3 the private partner takes on some of those risks and responsibilities. The Flagstaff P3 is the first time this initiative has been used to acquire new facilities for ADOT, which will free up land for roadway improvements and redevelopment. A Memorandum of Understanding was executed on March 28, 2012 and set out the parameters for how this P3 project would function. The City and ADOT would combine the remainders of their parcels after right-of-way dedication to be used for redevelopment. The redevelopment parcel would then be traded from ADOT to the developer for relocated ADOT facilities.
ADOT issued a Request for Qualifications in March 2012 to solicit a private partner who could relocate the ADOT facilities allowing for the construction of the road improvement project. The selected private sector partner was Vintage Partners, who proposed to relocate the ADOT facilities to the former Harkins Theater on Woodlands Village Boulevard. The P3 project was formalized through a Pre-Development Agreement (PDA) between Vintage, the City, and ADOT in December 2014. The PDA provides an overview of the various transactions, authorizes Vintage Partners to prepare and submit required materials for a Site Plan and Rezoning application for ADOT and City property located between Milton Parkway and Beulah Avenue, provides an anticipated schedule, requires an implementation agreement between ADOT and Vintage Partners, provides the term of the agreement, provides remedies for disputes and includes miscellaneous provisions required for an ADOT P3 project.
On August 21, 2017, the City Council approved the Reinstatement of, and First Amendment to the P3 Pre-Development Agreement extending the term to December 31, 2017; on December 19, 2017, a Second Amendment was approved that extended the term to March 31, 2018; on March 20, 2018, a Third Amendment was approved that extended the term to June 30, 2018.
On April 17, 2018, City Council approved the Development Agreement (DA) between The City and Vintage Partners. The DA provides for the sequence of approvals to facilitate the conveyance of the City Property to ADOT, the relocation of ADOT to the former Harkins Site, and the recordation of the final plat. It acknowledges that other agreements, including an Inter-Governmental Agreement between the City and ADOT, and an Implementation Agreement between ADOT and Vintage, will also speak to the timing and conditions for the property transfers from the City to ADOT, and ADOT to Vintage.
On August 18, 2018, City Council approved an IGA between the City and ADOT in order to facilitate the completion of the project.
On December 3, 2019, City Council approved the Mill Town Final Plat.
On September 21, 2021, City Council approved Ordinance No. 2021-18 authorizing property acquisitions for the project.
On December 7th, 2022, City Council approved Ordinance No. 2022-24 authorizing property acquisitions based on final design.
In 2005, the City of Flagstaff acquired APN 103-21-002, a 9.58-acre site known as the “Fresquez Parcel” for approximately $2.7 million. This purchase was the first step in moving this transportation project to fruition and provides the majority of right-of-way necessary to accomplish the Beulah Boulevard extension. In order to accomplish the University Avenue/Drive realignment, the ADOT District Offices and Regional Laboratory need to be relocated.
Following the acquisition of the Fresquez parcel, the City and ADOT began to explore options for partnerships in order to relocate the ADOT facilities. In July 2009, the Arizona P3 (Public-Private-Partnership) Legislation was passed, allowing for partnerships between a public agency (in this case two public agencies) and a private-sector entity to allow greater participation in the delivery of a transportation project. Typically, the public agency assumes all the risks and responsibilities for a transportation project, but under the P3 the private partner takes on some of those risks and responsibilities. The Flagstaff P3 is the first time this initiative has been used to acquire new facilities for ADOT, which will free up land for roadway improvements and redevelopment. A Memorandum of Understanding was executed on March 28, 2012 and set out the parameters for how this P3 project would function. The City and ADOT would combine the remainders of their parcels after right-of-way dedication to be used for redevelopment. The redevelopment parcel would then be traded from ADOT to the developer for relocated ADOT facilities.
ADOT issued a Request for Qualifications in March 2012 to solicit a private partner who could relocate the ADOT facilities allowing for the construction of the road improvement project. The selected private sector partner was Vintage Partners, who proposed to relocate the ADOT facilities to the former Harkins Theater on Woodlands Village Boulevard. The P3 project was formalized through a Pre-Development Agreement (PDA) between Vintage, the City, and ADOT in December 2014. The PDA provides an overview of the various transactions, authorizes Vintage Partners to prepare and submit required materials for a Site Plan and Rezoning application for ADOT and City property located between Milton Parkway and Beulah Avenue, provides an anticipated schedule, requires an implementation agreement between ADOT and Vintage Partners, provides the term of the agreement, provides remedies for disputes and includes miscellaneous provisions required for an ADOT P3 project.
On August 21, 2017, the City Council approved the Reinstatement of, and First Amendment to the P3 Pre-Development Agreement extending the term to December 31, 2017; on December 19, 2017, a Second Amendment was approved that extended the term to March 31, 2018; on March 20, 2018, a Third Amendment was approved that extended the term to June 30, 2018.
On April 17, 2018, City Council approved the Development Agreement (DA) between The City and Vintage Partners. The DA provides for the sequence of approvals to facilitate the conveyance of the City Property to ADOT, the relocation of ADOT to the former Harkins Site, and the recordation of the final plat. It acknowledges that other agreements, including an Inter-Governmental Agreement between the City and ADOT, and an Implementation Agreement between ADOT and Vintage, will also speak to the timing and conditions for the property transfers from the City to ADOT, and ADOT to Vintage.
On August 18, 2018, City Council approved an IGA between the City and ADOT in order to facilitate the completion of the project.
On December 3, 2019, City Council approved the Mill Town Final Plat.
On September 21, 2021, City Council approved Ordinance No. 2021-18 authorizing property acquisitions for the project.
On December 7th, 2022, City Council approved Ordinance No. 2022-24 authorizing property acquisitions based on final design.
Expanded Options and Alternatives:
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.
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.