Consideration and Adoption of Resolution No. 2025-05:  A resolution of the Flagstaff City Council, authorizing the execution of the Second Amendment to the Mill Town Development Agreement between Vintage Partners, LLC and the City of Flagstaff related to the development of approximately 13 acres of real property generally located at 1801 S Milton Road.
 

1. Read Resolution No. 2025-05 by title only
2. City Clerk reads Resolution No. 2025-05 by title only (if approved above)
3. Adopt Resolution No. 2025-05

State law allows the City to enter into development agreements by resolution of the City Council.  The Second Amendment to the Mill Town Development Agreement will be between Vintage Partners, LLC and the City of Flagstaff.  The development agreement amendment governs the terms and conditions of the entitlements and clarifies which version of the Zoning Code [Title 10 of the Flagstaff City Code] will be used for future development on the site if it is not developed in accordance with the current approved site plan.  If approved, staff will apply the version of the Zoning Code in effect on May 5, 2017 to all new development applications submitted through December 13, 2027, however current standards for outdoor lighting will apply. The proposed Mill Town project consists of a total of 13 acres at 1801 South Milton Road.

There are no financial impacts associated with this amendment to the Mill Town Development Agreement. 

There are no policy impacts affiliated with this amendment to the Development Agreement. 

The City Council approved a Zoning Map Amendment, Preliminary Plat and Development Agreement for the Mill Town project, as part of a public-private-partnership (P3), on April 17, 2018.  The P3 project was formalized through a Pre-Development Agreement between Vintage, the City, and the Arizona Department of Transportation in March 2015.  The First Amendment to the Development Agreement was approved on October 19, 2021 and recorded on October 22, 2021. 

1. Approve the Second Amendment of the Mill Town Development Agreement as presented.
2. Approve the Second  Amendment of the Mill Town Development Agreement with additional, modified, or deleted terms.
3. Remand the Second Amendment of the Mill Town Development Agreement back to staff for additional negotiations with Vintage Partners.
4. Deny the Second Amendment of the Mill Town Development Agreement.

Mill Town was approved on June 4, 2018 and consisted of three separate applications; PZ-16-00239-02 (Direct to Ordinance Zoning Map Amendment), PZ-16-00239-01 (Site Plan), and PZ-16-00239-03 (Preliminary Plat). There was a Development Agreement associated with the Zoning Map Amendment that outlined responsibilities for public-private partnerships and identified that the site was to be developed in accordance with the approved Site Plan. 

On October 22, 2021, an amendment to the development agreement was recorded (Instrument #3937357). This amendment provided for the City to assume the obligation to administer the design and construction of the Combined Roadway Project and extended the Entitlements of the initial Development Agreement for an additional 2 years. It was still assumed, at this time, that the site would be developed in accordance with the approved Site Plan. 

Since its initial approval in 2018, the site has remained undeveloped. While the roadway projects extending University and Beulah, as well as the pedestrian underpass, have been underway there has been no development of the approved Site Plan which contained 3 commercial pads with a multi-family building that contained 340 units and 1,221 bedrooms as well as an associated parking structure. 

The applicant would be allowed to make changes to the site plan under a Minor Modification to Site Plan Approval, which allows for changes up to approximately 10% from what was initially approved. Currently, there has been no submittal that meets the requirements for the Minor Modification. 

The Site Plan was initially approved prior to the adoption of the High Occupancy Housing (HOH) specific plan and subsequent Zoning Code updates. The original site plan would trigger HOH requirements if it were to be submitted today and reviewed under the current zoning code. 

This 2nd Amendment to the Development Agreement is to clarify which version of the Zoning Code to be used to review any future development proposals for the site.  The applicant would not have been able to submit for a Proposition 207 waiver during the valid timeframe due to the fact that they already had existing entitlements on the site. If they change the site plan from what was initially approved, they will lose those entitlements. This Amendment clarifies that the Zoning Code in effect  on May 5, 2017 would be the one used to review any future site plan proposals on the site submitted through December 13, 2027. This will effectively allow the site to be developed without having to adhere to HOH regulations. 

 

Livable Community - Achieve a well-maintained community through comprehensive and equitable code compliance, and development that is compatible with community values. 
Environmental Stewardship - Implement sustainable building practices, enhance waste diversion programs, alternative energy programs and multi-modal transportation options. 
Environmental Stewardship - Strengthen Flagtaff's resilience to climate change impacts on built, natural, economic, health, and social systems. 

Goal E&C.5. Preserve dark skies as an unspoiled natural resource, basis for an important economic sector, and core element of community character. 
Policy CC.4.3. Employ design solutions that balance the interface of the natural and built environments, with the most urbanized core activity areas being the most built, and the most rural areas being the most natural. 
Policy L.U.1.6 Establish greater flexibility in development standards and processes to assist developers in overcoming challenges posed by redevelopment and infill sites. 
Policy LU.3.1.Within the urban, suburban, and rural context, use neighborhoods, activity centers, corridors, public spaces, and connectivity as the structural framework for development.

DD - 1: Encourage vibrancy, appropriate density, and attainability in existing neighborhoods, so that more residents are within walking distance of their daily needs. 
DD - 2: Create inclusive networks for walking and biking that are continuous, attractive, safe, comprehensive, and convenient for people of all ages. 

Create 4.8 - Explore allowing additional flexibility for homeowners and landlords to increase density.