Consideration and Adoption of Resolution No. 2024-46:  A resolution of the City Council of the City of Flagstaff, Arizona, authorizing the execution of the Lake Mary Housing Development Agreement between the City of Flagstaff and Flagstaff OZ Ventures, LLC. related to the development of approximately 13.96 acres of real property generally located at 4631 South Lake Mary Road and establishing an effective date.
 

1. Read Resolution No. 2024-46 by title only
2. City Clerk reads Resolution No.2024-46 by title only (if approved above)
3. Adopt Resolution No. 2024-46

State law allows the City to enter into development agreements by resolution.  The proposed agreement governs the terms and conditions for the development of the real property generally located at 4631 South Lake Mary Road, including affordable housing and required infrastructure improvements (water, sewer).

There are no financial impacts identified as part of this request.

There are no policy impacts identified as part of this request.

City Council voted unanimously (7-0) in support at the first read of the rezoning request associated with this request. Council amended the conditions of the rezone to require the construction of the Flagstaff Urban Trails System section proposed by the developer.

1. The City Council may approve the Development Agreement as presented.
2. The City Council may approve the Development Agreement with additional, modified, or deleted terms.
3. The City Council may remand the Development Agreement back to staff for additional negotiations with the applicant.
4. The City Council may deny the Development Agreement.

The request for a Development Agreement accompanies the Direct to Ordinance Zoning Map Amendment (PZ-21-00213-01) filed by Snell and Wilmer, LLP on behalf of the applicant Atlantic Development & Investments, LLC, to rezone approximately 13.96 acres from the ER zone with the RPO to the HR zone with the RPO located at 4631 S Lake Mary Road.
 
The subject property is vacant land located along S Lake Mary Road and is part of a collection of parcels surrounded by Coconino National Forest land.  The site is accessed by S Lake Mary Road. The applicant proposes a multi-family development, with 202 units within 23 structures ranging from 2-3 story townhome-style and apartment-style buildings. The developer proposes to provide 20% of the planned number of units as Category 1 Affordable units (currently 40 affordable units proposed).  There is no bus service to this area.

The area is currently not served by City Sewer.  The project's sewer design requires a portion of the system to be pressurized.  The City's Water Services Division will be proposing an amendment to the City Code to allow public pressurized systems.  If the amendment is not approved, the pressurized portion of the system will be private, pursuant to 13-09-002-0012.  The sewer and water lines will run adjacent to Lake Mary Road and lie within Forest Service property, which will require an amendment to the City's Special Use Permit.

Key Considerations:
Affordable Housing

• The development will include no less than 40 affordable housing units
• The development will allow the use of vouchers in addition to required affordable units: HUD Housing Choice and Veterans Affairs Supportive Housing (VASH)
• The maximum household income for new affordable lease is 80% AMI
• Permanent affordability is defined as 30 years
• Minimum lease terms are 30 days for market-rate, 60 days for affordable units (12 months initial lease term for affordable units), except as part of an emergency rental assistance program 

Utilities

• A pressurized sewer system to a high point will be privately held unless adopted by the City, a gravity system from the high point to existing infrastructure will be adopted by the City.
• The sewer system is to be designed and constructed to handle anticipated discharges beyond what is required for this project, any reimbursement will be in conformance with Code Section 7-08.
• A portion of the required utilities is with United States Forest Service land, United States Forest Service approval is required prior to construction of utilities.

Livable Community:

• Actively support attainable and affordable housing through the City’s 10-Year Housing plan as well as other projects and opportunities
• Provide amenities and activities that support a healthy lifestyle

A complete analysis of the Regional Plan goals and policies are included in the attached Planning and Zoning Commission staff report.

HA-1: Create housing options for households at all income levels and family sizes occupied by local residents.
FS-2: Encourage new buildings to rely on the electric grid as their main energy source.

Create 2.2: Identify suburban areas to support greater density and intensity of development