Consideration and Adoption of Resolution No. 2019-31 and Ordinance No. 2019-22:  A Resolution of the City Council of the City of Flagstaff, Coconino County, Arizona, declaring as a public record that certain document filed with the City Clerk and entitled “2019 Zoning Code Amendments Industrial Zones and Miscellaneous Revisions (PZ-19-00087 AND PZ-19-00093)”; and, an Ordinance of the City Council of the City of Flagstaff, Coconino County, Arizona, amending the Flagstaff City Code, Title 10, Flagstaff Zoning Code (Ordinance No. 2011-20), Chapters 10-20, 10-40, 10-50, 10-60, and 10-80, as provided in that certain document entitled “2019 Zoning Code Amendments Industrial Zones and Miscellaneous Revisions (PZ-19-00087 and PZ-19-00093)” Declared to be a Public record by Resolution No. 2019-31; providing for repeal of conflicting ordinances, severability, and establishing an effective date.

The proposed amendment contains two parts.  The first part of the proposed amendment is the City’s continued effort to resolve conflicts, make technical corrections, and incorporate clarity into the Zoning Code. The second part (Case No.: PZ-19-00082) is a proposed amendment by the property owner (Pacific Prime Properties) to amend the list of land uses for the Light Industrial (LI) zone to add the Seasonal Amusement/Entertainment and Sales, Indoor (SAESI) land use as an allowed use subject to the approval of a Conditional Use Permit.

On June 12, 2019, the Planning and Zoning Commission recommended approval of the proposed amendment to the City Council with a vote of 4-0.

There are no anticipated financial impacts affiliated with the proposed Zoning Code Text Amendments.

There are no anticipated policy impacts affiliated with the proposed Zoning Code Text Amendments.

Council Goals:
Revise the zoning code to remove ambiguities, and ensure it is consistent with the community values and the Regional Plan.

Team Flagstaff Strategic Plan:
Work in partnership with to enhance a safe and livable community.

Regional Plan:
Please refer to the attached Planning and Zoning Commission staff report.

The Zoning Code was adopted by the City Council on November 1, 2011, to replace the former Land Development Code.  Since its adoption, the code has been amended several times to address procedures, add clarity, resolve conflicts, address planning initiatives (accessory dwelling units), incorporate applicant’s requests (West University Drive Entrance Sign District), and to address changes in state law and U.S. Supreme Court decisions (i.e. Reed vs the Town of Gilbert).

The City Council may adopt, modify, or deny the amendments.

Proposed Amendment
 
Part 1 – City’s Proposed Amendments

Organized primarily by section number and topic, below is a summary of staff’s proposed Zoning Code Text Amendment (Attachment 1 - excluding sections 17, 24, and the SAESI land use of Section 5).  The most significant modification is the correction to the adoption of the Industrial Zones (10-40.30.050), including scriveners and table errors pertaining to the allowed uses and the building form provisions. Even though the codified version of the zoning code includes the intended allowed uses and the building form provisions of the Industrial Zones, the City Council adopted ordinance and resolution (Ordinance No. O2011-20 and Resolution No. R2011-35) references the residential zone provisions in place of the industrial zone provisions.  Incorporated into these changes is the land use term modification from “Lodging” to “Travel Accommodations”. The purpose of this change is to utilize an industry and North American Industry Classification System (NAICS) term for the land use.

To clarify that the proposed land use of Travel Accommodations does not include short term rentals and vacation retails, staff has included the following definition into the proposed amendment:
 
A vast majority of the remainder of the proposed modifications are intended to resolve discrepancies between the originally adopted ordinance, subsequent amendments and the codified version of the zoning code.  In addition to these modifications, the proposed text amendment includes corrections to section cross-references, technical modifications, and table formatting.  Also, the amendment includes a term change from “horse fencing” to “corral fencing”.  The purpose of this modification is to eliminate the need for a decision/interpretation to allow fencing of this type for other animals that are kept in corrals of similar nature.  Finally, a definition for a Fuel Pump Sign has been included.  Currently, this sign type is not defined.  The proposed definition, “A sign mounted above, and integrated into the structure of, an operable fuel dispensing pump” is to eliminate the need for an interpretation of the zoning code as it pertains to what a fuel pump sign is.
 
Part 1 – Summary of the Staff Revisions to Zoning Code
 

1. Temporary Use Permits (Section 10-20.40.150.D): Change the term Temporary Signs to Portable Signs.
2. Industrial Zones – Allowed Uses (Section 10-40.30.050.B):  Delete and adopt the list of land uses allowed in the Industrial Zones to correct the adoption, scrivener's and table errors in Ordinance No. O2011-20 and Resolution No. R2011-35.  In addition, the land use term Lodging has been changed to Travel Accommodations.
3. Industrial Zones – Building Form Standards (Section 10-40.30.050.C):  Delete and adopt the building form standards of the Industrial Zones to correct the adoption, scrivener's and table errors in Ordinance No. O2011-20 and Resolution No. R2011-35.
4. Sustainability Features of All Non–Transect Zones (Section 10-40.30.070.A): Incorporate technical corrections to the Sustainability Features table.
5. T1 Natural (T1) Standards (Section 10-40.40.030): Add Wind Energy Production Facility as an allowed sustainable feature.
6. T3 Neighborhood I (T3N.1) Standards, and T3 Neighborhood 2 (T3N.2) (Sections 10-40.40.050, and 10-40.40.060): Correct the Dormitories and Fraternities/Sororities Land use in the Allowed Uses to require a Conditional Use Permit.
7. T6 Downtown (T6) (Section 10-40.40.100) add Bed and Breakfast as a permitted use
8. Thoroughfare Assemblies (Section 10-60.10.090): Add the provisions of thoroughfare assemblies into this section.
9. Additional Technical and Term (Sections 10-40.30.050, 10-40.40.100, 10-40.60.280, 10-40.60.310, 10-50.50.040, 10-50.100.060, 10-50.100.100, 10-50.110.080): Incorporate various technical modifications and cross references errors.
10. Definitions, “S” (Sections 10-80.20.190) Add the term Sign, Fuel Pump to the list of definitions.
11. Definitions, “T” (Sections 10-80.20.200) Add the term Travel Accommodations to the list of definitions.

Part 2 – Applicant’s Proposed Amendments
 
The applicant’s request is to add a new land use, SAESI, to the Light Industrial (LI) zone.  The proposed amendment defines (Attachment 1 - Section 24) the new land use as:
 
The applicant’s narrative (Attachment 2) includes a summary of the proposed Zoning Code Text Amendment, and a Regional Plan and required Zoning Text Amendment findings analysis. 

Primarily to facilitate the relocation of a local business (the North Pole Experience (NPEX)) to the property owner’s property, the proposed use would supplement the allowed and conditional uses of the zone that this business would utilize (warehousing and office land uses) as part of the functions of its operations.  Therefore, the proposed modification would allow all business activities of the NPEX to operate in one location.  As a larger zone wide benefit, the proposed uses would allow greater flexibility for the existing allowed uses, such as trade schools and a Light Industrial, General uses, to utilize the proposed use for seasonal activities, such as a product and trade fairs, promotional activities, performances, etc.

To ensure compatibility between existing uses on a property and nearby uses on other properties, to utilize the SAESI use, a property owner will be required to obtain the approval of a Conditional Use Permit.  Included in the proposed amendment are use specific criteria and development standards for the SAESI use.  These standards and criteria are intended to mitigate pedestrian and vehicle conflicts, and to preclude locations that have existing businesses on the property or nearby that are functionally inconsistent, or may have the potential of causing undue harm to the SAESI users (Attachment 1, Section 17).

 A Zoning Code Text Amendment shall be evaluated based on the following findings:
 
A.    Finding #1:

• The proposed amendment is consistent with and conforms to the objectives and policies of the General Plan and any applicable specific plan;

The City’s proposed amendments are primarily to resolve conflicts, incorporate technical corrections and add clarity to the zoning code. Clerical in nature, the amendments do not substantively modify the existing provisions of the Zoning Code and maintains consistency and conformance with the objectives and policies of the Regional Plan (General Plan) and applicable specific plans.

The most significant modifications include the adoption of the industrial zone land uses and building form requirements. These zones and related provisions are primarily intended to implement the Regional Plan’s land use designation of Employment Center “Employment.”  Supported by several goals and policies of the Regional Plan, these zones are intended to increase employment, promote new and re-development, establish land use and development flexibility, ensure development of industrial area are compactable with surrounding areas, and protect existing and encourage new business and industrial growth (LU 1.1, LU 1.6, LU 6.2, LU 16.2, LU 16.3, ED3.8, ED 4.5 of the Regional Plan).

The applicant’s proposed amendment is to modify the land use of the Light Industrial (LI) zone. Intended to provide a transitional zone between commercial and heavy industrial land uses, the Light Industrial (LI) zone also assists with the Employment land use’s purpose of providing “… for the continued growth of the existing employment centers and encouraging the reuse of underutilized, vacant or obsolete commercial and industrial spaces…”

The addition of the proposed SAESI use has the potential of assisting to implement the Regional Plan’s Employment and land use policy objectives to encourage the reuse of underutilized, vacant or obsolete commercial and industrial spaces.  As proposed, the use would allow property owners additional flexibility to partner with businesses and tenants to use indoor areas for art festivals, including performances and workshops, fairs, and other holiday and seasonal events (LU 1.6 of the Regional Plan) that require large indoor volumes for a limited time period (A total of 98 days in any one calendar year, and no more than 98 consecutive days.) Also, the use would allow businesses and event operators to co-locate their operations in a single location, adding to the flexibility of the Light Industrial (LI) zone. Some potential uses require the warehousing (an allowed use in the Light Industrial) of operational materials in the off-season and sale merchandise in preparation for an upcoming seasonal event.  Also providing the property owners and tenants greater flexibility (LU 1.6 of the Regional Plan), other uses in the zone, such as trade schools and a Light Industrial, General uses could utilize the proposed use for seasonal activities such as a product and trade fairs, promotional activities, etc. that could occur within or near its operational facilities.

Recognizing the purpose of the zone, the Employment land use, and Regional Plan policies to protect existing more intensive businesses and land use operations from uses that may not be appropriate or have conflicting characteristics, the applicant’s request is to allow the SAESI subject to the approval of a Conditional Use Permit.  In addition to the standard Conditional Use Permit findings, the proposed amendment incorporates two additional findings to ensure compatibility with existing uses of development, and the uses on adjacent property ((ED 3.8) of the Regional Plan).  These additional findings are intended to evaluate the proposed and existing uses on the property and on adjacent properties to ensure that there are:

1. no functional conflicts between the uses; and
2. to ensure that there are no undue risks to the proposed use’s customers due to being located near more intensive land uses.

B.    Finding #2

• The proposed amendment will not be detrimental to the public interest, health, safety, convenience or welfare of the City;

The City’s proposed amendments are not anticipated to be detrimental to the public interest, health, safety, convenience or welfare of the City. These amendments are primarily to resolve conflicts, incorporate technical corrections and add clarity to the zoning code.  Incorporated in the proposed amendment are additional allowances for sustainable features (wind energy production, riffle pools, swales, etc.) that could assist with mitigating the adverse impacts that the City’s populous has on the environment.

The applicant’s proposed amendment to add the SAESI land use and related provisions to the Light Industrial (LI) is not anticipated to be detrimental to the public interest, health, safety, convenience or welfare of the City.  To assist with mitigating adverse impacts from adjoining and existing uses, the proposed use is required to obtain a Conditional Use Permit, and comply with specific use criteria.  These criteria are intended to mitigate potential conflicts between the SAESI’s pedestrians and passenger vehicles and large trucks and the operations of loading bays, service areas or truck yard facilities that may occur on a property.  These development standards include requiring the:

1. Access to the building area and customer parking for the use, not be located on the same façade or side of the building that has loading bays, service areas or truck yard facilities;
2. Customer parking for the use is to be clustered together, located nearest to the uses primary public entry/exit, and signed for customer’s exclusive use during the user's operations; and
3. A pedestrian route from the customer parking to the primary public entry/exit that crosses any drive aisle to be signed and marked to notify the pedestrians and vehicle traffic of the crosswalk.

As indicated above in Finding 1, which is also applicable to Finding 2, the proposed amendment incorporates two additional findings to ensure compatibility with existing uses of a development, and the uses on adjacent property.  These additional findings are intended to evaluate the proposed and existing uses on the property and on adjacent properties so that there are:

1. no operational characteristic conflicts between the uses; and
2. to ensure that there are no undue risks to the proposed use’s customers due to being located near more intensive land uses.

C.    Finding #3

• The proposed amendment is internally consistent with other applicable provisions of this Zoning Code.

The City’s proposed amendments enhance the zoning code’s internal consistency by resolving conflicts, incorporating technical corrections and adding clarity.  Furthermore, the proposed amendments are intended to maintain the zoning code’s purpose as a comprehensive contemporary set of land uses and requirements that are straightforward, usable and easily understood.
 
The applicant’s proposed amendment to add the SAESI land use and related provisions to the Light Industrial (LI) zone achieves internal consistency through the zoning code’s intent of encouraging the evolution of zones to include the most appropriate uses that enhance the viability of existing buildings. Furthermore, the proposed use specific criteria assists in maintaining consistency with the zoning code’s intent to protect businesses from adverse impacts of adjoining uses, and protecting the health, safety, and general welfare of the public. Finally, the proposed amendment aids with maintaining a comprehensive contemporary set of requirements that are straightforward, usable and easily understood.

Please refer the key considerations included in this report.

In accordance with State Statute and the Zoning Code, the Planning and Zoning Commission work session for the amendments was advertised in the Arizona Daily Sun on May 4, 2019; and, the Planning and Zoning Commission work session was advertised Arizona Daily Sun on May 25, 2019.  In addition, the City Council held a work session on these amendments on May 28, 2019. Also, persons of interest that are on file with the Planning and Development Services Department were notified of the work sessions and hearings via first class mail. As of the date of this report, staff has not received any comments from the public.