Consideration and Possible Adoption of Resolution No. 2018-37:  A resolution authorizing the execution of an Amended and Restated Development Agreement between Crestview 31, LLC and the City of Flagstaff related to the development of approximately 31.9 acres of real property known as the Crestview subdivision generally located along the north side of Old Route 66, north and west of the Railroad Springs subdivision.

State law allows the City to enter into development agreements by resolution of the City Council.  The proposed agreement governs the terms and conditions of the development of the Crestview subdivision.

The developer's predecessor and the City entered into a Development Agreement that was recorded on February 24, 2009.  Since the time of the original agreement, the ownership of the property has changed.  As a result, the developer and the City wish to enter into a new agreement to clarify the terms for the development of the Crestview subdivision.

There are no financial obligations affiliated with this request.

Council Goals
Affordable Housing - Support development and increase the inventory of public and private affordable housing for renters and home-owners throughout the community.

Regional Plan
A full regional plan analysis was completed at the time the rezoning for this property was completed.

Team Flagstaff Strategic Plan
Strategic priority #4 - Work in partnership to enhance a safe and livable-community.

Flagstaff's City Council at their meeting of December 23, 2008, approved Resolution No. 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 No. 2009-005 rezoning the same property from the Rural Residential (RR) zone to the Manufactured Home (MH) zone conditionally and Ordinance No. 2009-004 approving the development agreement between the City of Flagstaff and Voyager Flagstaff 54 Investors, LLC and Bothhands, Inc.  Lastly, the Council also approved the preliminary plat for the Crestview subdivision.

1. Approve the Amended and Restated Development Agreement as presented.
2. Approve the Amended and Restated Development Agreement with added, modified, or deleted terms.
3. Remand the Amended and Restated Development Agreement back to staff for additional negotiations with the owner.
4. Deny the Amended and Restated Development Agreement.

The initial developer of the Crestview subdivision, Voyager Flagstaff 54 Investors, LLC, processed applications for a Regional Plan Amendment, Zoning Map Amendment, Preliminary Plat and a Development Agreement in order to complete the required entitlements.  Voyager was operating under a Certificate of Purchase with the Arizona State Land Department over a period of years.  During the economic downturn, Voyager stopped paying on the Certificate of Purchase and turned the land back to the Arizona State Land Department.  After several years, the Arizona 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 the Crestview subdivision and initiated construction of the public improvements for the subdivision.

The Amended and Restated Development Agreement retains the requirement from the original development agreement that the developer construct twelve (12) permanently affordable homes and the fifteen (15) accessory dwelling units.  The revisions to the development agreement provide additional detail surrounding the development of the affordable units and updates the delivery method from deed restrictions to the City's land trust program.  Staff believes these changes will provide a greater opportunity for the successful delivery of affordable housing to the community.

This Amended and Restated Development Agreement also eliminates the requirement to provide modular construction units, providing the opportunity for site-built construction.
 

Inform
The subject property's existing zoning allows for the proposed subdivision.  No public hearing or public outreach is required as part of the City Council's review of an amended development agreement.