Consideration and Possible Adoption of Ordinance No. 2019-20:  An ordinance amending the Flagstaff Zoning Map designation of approximately 14.51 acres of real property located at 825 and 829 E. Butler Avenue on parcel numbers 104-13-002B and 104-03-005B from Light Industrial (LI) and Heavy Industrial (HI) to 2.24 acres of Highway Commercial (HC) and 12.27 acres of High Density Residential (HR), for purposes of developing a multi-family residential and commercial project.
(McGrath Partners Zoning Map Amendment request for property located at 825 and 829 E. Butler Avenue)

McGrath Real Estate Partners, LLC, is requesting a Direct to Ordinance Zoning Map Amendment to permit a development consisting of a minimum of 19,000 square feet of commercial space in conjunction with a 333-unit with 764-bedrooms multi-family project. The proposed north parcel located at the southeast corner of Butler Avenue and Sawmill Road will be 2.24 acres and will be zoned Highway Commercial (HC). The proposed south parcel will be 12.27 acres and will be zoned High-Density Residential (HR). Please see attached vicinity map for the general project location.

The original version of this project was heard by the Flagstaff Planning & Zoning Commission to consider the Direct to Ordinance Zoning Map Amendment on January 9, 2019. The Planning & Zoning Commission voted unanimously by a vote of 5-0  in favor of forwarding a recommendation of approval of the Direct to Ordinance Zoning Map Amendment, subject to conditions, to the City Council. In February 2019, Council declined to read the rezone ordinance for the first time. On May 3, 2019, the applicant submitted a new revised Zoning Map Amendment application with a revised plan. Since the proposed unit number exceeded 300, the application required two new Planning & Zoning Commission public hearings which were held on May 22nd and May 29th, 2019. On May 29, 2019, the Commission voted 5-0 in favor of forwarding the application to the City Council with a recommendation of approval subject to conditions.
 

No financial impacts are anticipated with this request.

There are no policy impacts affiliated with this Direct to Zoning Map Amendment request.

Council Goals:
Economic Development - Grow and strengthen a more equitable and resilient economy.
Affordable Housing - Support development and increase the inventory of public and private affordable housing for renters and home-owners.

Team Flagstaff Goals:
Strategic Priority #3: Foster a resilient and economically prosperous city.

Regional Plan:
A complete analysis of the Regional Plan goals and policies can be found in the attached applicant narrative and in the staff report to the Planning & Zoning Commission.

Council reviewed an earlier version of this application and declined to read the rezoning ordinance for the first time.

The City Council may approve the ordinance as proposed, approve the ordinance with modified conditions, or deny the ordinance.

The subject site is located between the Rio de Flag Business Park to the east and Aspen Place at the Sawmill subdivision to the west. The most recent use of the subject site was as an industrial rental property formerly known as Jeld-Wen of Arizona. According to the Historic Resource Study letter report conducted by Cornerstone Environmental in April 2018, the existing three buildings were constructed in the mid-1970s. The site has an approximate elevation of 6,860 feet and the local topography is generally flat with a gentle slope to the southeast toward Rio de Flag. There are Ponderosa pines in the northeast and southeast corners of the east parcel.

On September 21, 2018, the Inter-Department Staff (IDS) approved a site plan, a copy of which is attached to this report, for the proposed development subject to successfully obtaining a Direct to Ordinance Zoning Map Amendment (rezoning).  Since Council declined to read the rezoning ordinance, the original site plan is not approved. On May 3, 2019, the applicant submitted a new revised application and site plan (attached). The Inter-Division Staff reviewed the revised application on May 9, 2019, and conditionally accepted the application as complete. An official Site Plan Minor Modification application will need to be reviewed and approved following approval of this rezoning request.

The commercial parcel will consist of retail, service and/or office uses. Site access will be from a right-in/right-out only driveway on Butler Ave. and a driveway on Sawmill Rd. The commercial portion of this rezoning is conceptual in nature but must meet several requirements as outlined in the Development Agreement in order to comply with the Urban Activity Center as defined in the Regional Plan. This includes a minimum of 19,000 square feet of commercial space and a minimum building height of 32 feet, in order to have the appearance of a two-story building.  If there are drive-through related uses, the Development Agreement limits the number and placement of any drive-through lanes. The commercial buildings are currently proposed as single-story structures. The current concept plan for this parcel includes two buildings which total 22,300 square feet and cover approximately 23 percent of the parcel (0.23 FAR). The Highway Commercial zone allows a Floor Area Ratio (FAR) of 3.0. A surface lot will provide approximately 99 parking spaces. Development on the commercial parcel will be required to complete Site Plan review and approval prior to submitting for civil plan or building plan review.

The two five-story multi-family buildings and six 2-story townhome-style apartments will include 333 units, ranging from efficiency and studio to four-bedroom units. The residential project will include an integral clubhouse and leasing facility as well as a fitness center. A 2,000 square foot flex building, which will be open to both residents and the public, has been added to the revised site plan. Site access will be provided from two driveways on Sawmill Rd. Approximately 401 surface parking spaces and 318 structured parking spaces, including 16 ADA accessible parking stalls, will be provided along with secure, indoor bike parking areas and exterior bike racks. The two buildings face one another and border an east/west Main Street which is aligned with Kensington Dr. to the west. A pedestrian bridge over the Main Street connects the two buildings at the third-floor level. Each building layout defines outdoor courtyards that will be used as tenant recreation areas. The HR zone permits a maximum building height of 60 feet or 65 feet for areas of pitched roofs (greater than 6:12). The highest ridgeline of the buildings will be 65 feet with a few tower elements that approach 67 feet which are permitted by section 10-50.30.030 of the Zoning Code.  The residential project meets both open space and civic space for the HR zone. The minimum density requirement in the HR zone is 10 units per acre and the maximum density allowed is 29 units per acre (outside the Resource Protection Overlay). The proposed residential gross density for this project is approximately 27 units per acre based on the overall residential site of 12.27 acres.

The site plan includes a new six-foot wide sidewalk along Butler Avenue and new five-foot wide sidewalk along Sawmill Road frontages to accommodate pedestrian trips while existing bike lanes and four near-by transit stops will accommodate other alternative travel mode demands. The FUTS trail connection through the south end of the property provides additional pedestrian and bike connectivity. To help mitigate the anticipated traffic impacts from this development, the City is requiring the developer to contribute $200,000 towards the cost of improvements to the Lone Tree Rd. corridor. In addition, based on City warrants and turn volume estimates, the site’s Butler Avenue driveway will require a right-turn deceleration lane.  

The developer of this proposed project will be contributing to affordable housing by setting aside 10% of the units for income-qualified individuals and providing $500,000 to the city's Housing Section for the purpose of providing affordable housing to the Flagstaff community. For all development agreement points, refer to the attached Development Agreement. 

If the rezoning request is approved and the 14.51-acre site is rezoned to Highway Commercial (HC) and High-Density Residential (HR), the proposed commercial project and multi-family residential project will be considered permitted uses in each zone.

None

Community benefits and considerations related to this request are addressed in more detail in the attached Planning & Zoning Commission Staff Report dated May 7, 2019.

Public hearings before the Planning and Zoning Commission and City Council are conducted in conjunction with requests for Direct to Ordinance Zoning Map Amendments.  In accordance with State Statute, notice of the public hearing was provided by placing an ad in the Daily Sun, posting notices on the property, and mailing a notice to all property owners within 1,000 feet (exceeding the minimum of 300 feet) of the site excluding rights-of-way. 
 
For the revised application, the applicant was required to hold a new neighborhood meeting prior to the Planning & Zoning Commission meetings. The meeting was held on May 16, 2019, at the Aquaplex. The results of the meeting are included with the attached Citizen Participation Report. All of the meetings included an open house period, followed by presentations from the applicant and a question and answer session with scribes recording questions and comments. Comments on the project included the following topics: change of industrial zoning, reason for the Butler driveway design change, increased traffic, retail pad, change in unit mix, pet friendly question, building heights, preserving some of the existing trees, wildlife concerns, parking garage design, affordability, and appreciation of the responsiveness by the developer to the citizen concerns.

With the revised application, as of this writing, staff has received one phone call on May 28th. This individual had questions on the revised project, objected to the proposed multi-family use and height of the project, but complimented the proposed flex building which will be open to the public. At the May 22nd Planning & Zoning Commission meeting, one resident expressed concerns about traffic, removal of trees and the lack of need for student housing or commercial space.  A second speaker expressed general concern about student housing. At the May 29th Planning & Zoning Commission meeting, the same two speakers voiced additional concerns about winter ice and maintenance, training for residents on recycling, the desire to incorporate small park/green spaces into the development, and concerns for deer that currently move through the site from the Rio de Flag corridor and across Butler Avenue.