Consideration and Possible Adoption of Resolution No. 2019-20: A resolution authorizing the execution of a Development Agreement between Canyon del Rio Investors, LLC and the City of Flagstaff related to the development of approximately 262 acres of real property generally located at 3200 East Butler Avenue. (Canyon del Rio Development Agreement)

1. Read Resolution No. 2019-20 by title only
2. City Clerk reads Resolution No. 2019-20 by title only (if approved)
3. Adopt Resolution No. 2019-20

State law allows the City to enter into development agreements by resolution.  The proposed agreement governs the terms and conditions of the proposed concept zoning and phasing of the development.

City obligations will include reimbursement for upsizing off-site water lines and providing public roadway improvements with proportional share cash payments from the developer.  Owner obligations will include the provision of on-site and off-site water and sewer improvements in accordance with the approved Water and Sewer Impact Analysis, cash-in-lieu payments for off-site improvements, and a contribution to the City for affordable housing.

At the May 21 City Council Meeting, the Council directed staff to work with the developer on a series of proposed amendments to the Development Agreement and additional conditions for the Rezone Ordinance. The revised Development Agreement and Ordinance will be considered by Council at the June 4 Council Meeting. Staff has started working with the developer on those items but does not envision having a revised Development Agreement and Ordinance completed for Council consideration prior to posting of the draft agenda on May 24. The revised Development Agreement and Ordinance will be attached to the final agenda, which will be posted on May 31. However, because most of the Development Agreement will remain unchanged, the most recent version of the Agreement is still attached to this item.  

***An updated Development Agreement and new PowerPoint presentation has been attached***

Financial impacts to the City are discussed in the accompanying Concept Zoning Map Amendment and Preliminary Subdivision Plat reports for Canyon del Rio.

Connections to Council Goals, the Regional Plan and Team Flagstaff Strategic Plan have been addressed in the accompanying Concept Zoning Map Amendment and Preliminary Subdivision Plat reports for Canyon del Rio.

A Settlement Agreement, as approved by City Council, was executed on May 13, 2013, and amended on January 29, 2015. The Settlement Agreement outlines how the Zoning Map Amendment will be processed, sets specific development density and intensities, and settles the two pending lawsuits.  If the Zoning Map Amendment is approved, the pending lawsuits will be resolved.  In response to the Settlement Agreement, Canyon del Rio Investors made an application for a Concept Zoning Map Amendment in November of 2014.

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

A detailed background of this project was included with the Concept Zoning Map Amendment report.

City Obligations:
 

• The City has agreed to accept cash-in-lieu payments for off-site roadway and water line infrastructure.  The improvements include the following:

• Butler Avenue corridor improvements
• Fourth Street corridor improvements (I-40 south to Butler Avenue)
• Fourth Street bridges over I-40

• City will accept cash-in-lieu payment of $667,943 for 428,000 gallons of water storage.  City will fund and build the balance of a 1-million-gallon storage facility.

Developer Obligations:
 

• Workforce Housing: The Developer has agreed to make a cash contribution to the City's affordable housing program. The City will grant a 5% credit towards incentives if applied at future developments.
• New Well Site: Developer will provide land dedication and access easements for two well sites on the property.
• Water Storage: Developer will provide cash-in-lieu payment towards a 1-million-gallon water storage tank.
• Secondary Water Supply: Developer will provide $1.3 million for secondary water supply infrastructure.
• Roadway Improvements: Developer will provide $2,461,730 in cash-in-lieu payments for frontage and off-site improvements for Butler Avenue, Fourth Street, and the I-40/Butler Avenue intersection.
• All on-site public and private improvements.