Direct staff to either discuss/negotiate a revised development agreement, or to notify developer that the Council has no desire to change to the existing development agreement.

The owner of Crestview Subdivision, Capstone Homes, has proposed modifications to the existing development agreement (DA).  The changes focus on:
1) Affordable housing, and
2) Traditional construction instead of modular home construction. 

The Developer's position is that the DA was negotiated at a time when the incentives and financing for affordable housing were immature when compared to today's practices, and the modifications to the agreement are appropriate.  The Developer also believes that current site built construction methods provide a better product at a competitive price when compared to modular construction.  The existing Development Agreement requires a Manufactured Home Subdivision be constructed as indicated in Paragraph 7.a.

Please see the attached Crestview Development Agreement for the Vicinity and Site maps. 

The initial developer of Crestview, Voyager Flagstaff 54 Investors, processed several applications.  Voyager was operating under a Certificate of Purchase with the Arizona State Land Department.  This Certificate of Purchase gave Voyager the right to proceed with entitlement and development while they purchased the property from the State Land Department over a period of years.

Flagstaff’s City Council at their meeting of December 23, 2008, approved Resolution 2008-071 amending the Flagstaff Area Regional Land Use and Transportation Plan changing 31.9 acres of Parks category land to MR, Medium Density Residential category.  Subsequently, at their meeting of January 6, 2009, Council approved Ordinance 2009-005 rezoning the same property from RR - Rural Residential to MH - Manufactured Home zoning district (conditional) and Ordinance 2009-004 approving a development agreement between the City of Flagstaff and Voyager Flagstaff 54 Investors, LLC and Bothhands, Inc.  Finally, the Council approved the preliminary plat for Crestview Subdivision.

During the recent economic downturn, Voyager stopped paying on the Certificate of Purchase and turned the land back to the State Land Department.

After several years, the State Land Department brought the property to auction, where the current owner, Capstone Homes, purchased the property and the subdivision plat.  On August 15, 2017, Capstone recorded the final plat for Crestview and initiated construction of the public improvements for the subdivision.