14.B.
City Council Draft Agenda
- Meeting Date:
- 12/17/2019
- From:
- Charity Lee, Real Estate Manager
TITLE:
Consideration and Adoption of Ordinance No. 2019-37: An Ordinance of the City Council of the City of Flagstaff, abandoning approximately .37 acres of City right-of-way located on West University Drive subject to reservations and conditions; providing for delegation of authority and severability, recordation; repeal of conflicting ordinances; and establishing an effective date.
STAFF RECOMMENDED ACTION:
At the December 17, 2019 Council Meeting:
1) Read Ordinance No. 2019-37 by title only for the first time
2) City Clerk reads Ordinance No. 2019-37 by title only (if approved above)
3) Read Ordinance No.2019-37 by title only for the final time (requires a unanimous vote)
4) City Clerk reads Ordinance No. 2019-37 by title only (if approved above)
5) Adopt Ordinance No. 2019-37
1) Read Ordinance No. 2019-37 by title only for the first time
2) City Clerk reads Ordinance No. 2019-37 by title only (if approved above)
3) Read Ordinance No.2019-37 by title only for the final time (requires a unanimous vote)
4) City Clerk reads Ordinance No. 2019-37 by title only (if approved above)
5) Adopt Ordinance No. 2019-37
Executive Summary:
As part of the public/private partnership between the City, ADOT, and Vintage Partners, the City entered into a Development Agreement with Vintage Partners. In this agreement, the City agreed to transfer the future remnant right-of-way located at existing University Avenue, subject to the reservation of a right-of-way and public utility easements which will remain in place until the University realignment is completed and accepted by the City Engineer and the utilities are relocated.
Financial Impact:
Approval of the Ordinance will not result in any new costs. The University realignment project is fully funded in the current FY2019-20 Capital Improvement Plan.
Policy Impact:
None
Connection to Council Goal, Regional Plan and/or Team Flagstaff Strategic Plan:
Council Goals
Transportation and Other Public Infrastructure - Deliver quality community assets and continue to advocate and implement a highly performing multi-modal transportation system.
Transportation and Other Public Infrastructure - Deliver quality community assets and continue to advocate and implement a highly performing multi-modal transportation system.
Has There Been Previous Council Decision on This:
On April 17, 2018, the City Council passed and adopted Resolution No. 2018-13, authorizing the execution of the Mill Town Development Agreement (DA) between the City of Flagstaff and Vintage Partners in order to facilitate the development of the Mill Town Property and related transportation improvements.
On August 28, 2018, the City Council passed and adopted Resolution No. 2018-42 approving the Intergovernmental Agreement between the City of Flagstaff and the Arizona Department of Transportation related to the P3/Mill Town project for transportation improvements to Beulah Boulevard and University Drive.
December 3rd, 2019 the City Council approved the final plat for the Mill Town Development.
On August 28, 2018, the City Council passed and adopted Resolution No. 2018-42 approving the Intergovernmental Agreement between the City of Flagstaff and the Arizona Department of Transportation related to the P3/Mill Town project for transportation improvements to Beulah Boulevard and University Drive.
December 3rd, 2019 the City Council approved the final plat for the Mill Town Development.
Background and History:
On May 16, 2000, the voters of Flagstaff passed proposition 403 which established the local transportation tax 2000 to provide funding for a variety of transportation system improvements including the arterial and collector street system, and multi-modal elements. The information pamphlet for this proposition specifically identified the Beulah Boulevard extension and the University Drive realignment as “missing links” within the overall transportation network. The exhibit for proposition 403 showed an alignment for these roadways similar to the current proposal. The transportation tax has been collected on a pay-as-you-go basis with a total of $8.175 million allocated for these transportation improvements. These funds became 100% available as of July 1, 2017; however, many years of work have been spent on moving this project forward.
In 2005, the City of Flagstaff acquired APN 103-21-002, a 9.58-acre site known as the “Fresquez Parcel” for approximately $2.7 million. This purchase was the first step in moving this transportation project to fruition and provides the majority of right-of-way necessary to accomplish the Beulah Boulevard extension. In order to accomplish the University Avenue/Drive realignment, the ADOT District Offices and Regional Laboratory need to be relocated.
Following the acquisition of the Fresquez parcel, the City and ADOT began to explore options for partnerships in order to relocate the ADOT facilities. In July of 2009, the Arizona P3 (Public-Private-Partnership) Legislation was passed, allowing for partnerships between a public agency (in this case two public agencies) and a private-sector entity to allow greater participation in the delivery of a transportation project. Typically, the public agency assumes all the risks and responsibilities for a transportation project, but under the P3 the private partner takes on some of those risks and responsibilities. The Flagstaff P3 is the first time this initiative has been used to acquire new facilities for ADOT, which will free up land for roadway improvements and redevelopment. A Memorandum of Understanding was executed on March 28, 2012, and set out the parameters for how this P3 project would function. The City and ADOT would combine the remainders of their parcels after right-of-way dedication to be used for redevelopment. The redevelopment parcel would then be traded from ADOT to the developer for relocated ADOT facilities.
ADOT issued a Request for Qualifications in March 2012 to solicit a private partner who could relocate the ADOT facilities allowing for the construction of the road improvement project. The selected private sector partner was Vintage Partners, who proposed to relocate the ADOT facilities to the former Harkins Theater on Woodlands Village Boulevard. The P3 project was formalized through a Pre-Development Agreement (PDA) between Vintage, the City, and ADOT in March 2015. This PDA granted Vintage Partners the authority to apply for the required entitlements to pursue the redevelopment of the remaining lands. ADOT and the City agreed to cooperate in good faith with Vintage Partners in order to process these entitlements, recognizing that the Flagstaff City Council retains its full discretion to approve or deny the entitlement applications. The PDA also committed a total of $7.375 million (increased to $8.175) for the extension of Beulah Boulevard and the realignment of University Drive, which would be completed by Vintage Partners in conjunction with their redevelopment project.
Following approval of the PDA, City Council approved a Development Agreement with Vintage Partners and an Intergovernmental Agreement with ADOT. As part of the Development Agreement, the City committed to take steps to abandon the future University Avenue remnant parcel at the time of final plat recordation, currently scheduled for December 20, 2019. This ordinance satisfies the Development Agreement obligation.
In 2005, the City of Flagstaff acquired APN 103-21-002, a 9.58-acre site known as the “Fresquez Parcel” for approximately $2.7 million. This purchase was the first step in moving this transportation project to fruition and provides the majority of right-of-way necessary to accomplish the Beulah Boulevard extension. In order to accomplish the University Avenue/Drive realignment, the ADOT District Offices and Regional Laboratory need to be relocated.
Following the acquisition of the Fresquez parcel, the City and ADOT began to explore options for partnerships in order to relocate the ADOT facilities. In July of 2009, the Arizona P3 (Public-Private-Partnership) Legislation was passed, allowing for partnerships between a public agency (in this case two public agencies) and a private-sector entity to allow greater participation in the delivery of a transportation project. Typically, the public agency assumes all the risks and responsibilities for a transportation project, but under the P3 the private partner takes on some of those risks and responsibilities. The Flagstaff P3 is the first time this initiative has been used to acquire new facilities for ADOT, which will free up land for roadway improvements and redevelopment. A Memorandum of Understanding was executed on March 28, 2012, and set out the parameters for how this P3 project would function. The City and ADOT would combine the remainders of their parcels after right-of-way dedication to be used for redevelopment. The redevelopment parcel would then be traded from ADOT to the developer for relocated ADOT facilities.
ADOT issued a Request for Qualifications in March 2012 to solicit a private partner who could relocate the ADOT facilities allowing for the construction of the road improvement project. The selected private sector partner was Vintage Partners, who proposed to relocate the ADOT facilities to the former Harkins Theater on Woodlands Village Boulevard. The P3 project was formalized through a Pre-Development Agreement (PDA) between Vintage, the City, and ADOT in March 2015. This PDA granted Vintage Partners the authority to apply for the required entitlements to pursue the redevelopment of the remaining lands. ADOT and the City agreed to cooperate in good faith with Vintage Partners in order to process these entitlements, recognizing that the Flagstaff City Council retains its full discretion to approve or deny the entitlement applications. The PDA also committed a total of $7.375 million (increased to $8.175) for the extension of Beulah Boulevard and the realignment of University Drive, which would be completed by Vintage Partners in conjunction with their redevelopment project.
Following approval of the PDA, City Council approved a Development Agreement with Vintage Partners and an Intergovernmental Agreement with ADOT. As part of the Development Agreement, the City committed to take steps to abandon the future University Avenue remnant parcel at the time of final plat recordation, currently scheduled for December 20, 2019. This ordinance satisfies the Development Agreement obligation.
Key Considerations:
1. Approving the Ordinance complies with the obligations as set forth in the Development Agreement.
Community Involvement:
The realignment of University Avenue/Drive and the extension of Beulah Boulevard north to the future intersection of Beulah/Yale/University will streamline and consolidate traffic flow to and from the Northern Arizona University campus across Milton Road.
Expanded Options and Alternatives:
Inform