7.I.
City Council Draft Agenda
- Meeting Date:
- 06/16/2026
- From:
- Kevin Fincel, Deputy City Attorney
TITLE:
Consideration and Approval of Agreement: Partial Satisfaction of Reimbursement Agreement with CBAR 19 Flagstaff, LLC in the amount of $112,486.43 related to the City's proportional share of the construction costs of Kitty Hawk Lane.
STAFF RECOMMENDED ACTION:
Approve the Partial Satisfaction of Reimbursement Agreement with CBAR 19 Flagstaff, LLC in the amount of $112,486.43.
Executive Summary:
The City and CBAR 19 Flagstaff, LLC (“CBAR”) entered in a lease agreement dated April 13, 2005, for the development of 1.27 acres of real property situated within a portion of Tract 7B of the Pulliam Airport Airpark Unit 1, Amended Subdivision adjacent to Pulliam Airport in Flagstaff, Arizona (“Development”). As part of the Development approval, the City required that CBAR construct and dedicate to the City an access road generally located on Tract 7B and now named Kitty Hawk Lane. The total cost of constructing Kitty Hawk Lane was $337,493.04.
Through a separate reimbursement agreement dated May 28, 2009 (the “Reimbursement Agreement”), the City agreed to require future lessees and purchasers of property that abuts and accesses Kitty Hawk Lane to reimburse CBAR for their proportionate shares of the road construction costs. The Reimbursement Agreement provides that the City and CBAR agree to use an allocation mechanism of 33.33% for CBAR’s proportionate share and 66.67% for the remaining proportionate share to future lessees and purchasers, with CBAR’s proportionate cost being $112,486.43 and CBAR’s reimbursement amount being $225,006.61. The City further agreed to collect the applicable proportionate development costs from future land purchasers and lessees and reimburse the same to CBAR.
The City has constructed a parking lot that abuts and accesses Kitty Hawk Lane, and CBAR and the City agree that this construction triggers the reimbursement obligation under the Reimbursement Agreement. The City parking lot abuts approximately half of the vacant frontage that remained after construction of the Development. Accordingly, the City and CBAR agree that City’s reimbursement obligation will be 33.33% of the total cost of constructing Kitty Hawk Lane, which amounts to $112,486.43.
The Partial Satisfaction of Reimbursement Agreement, which is still being reviewed by CBAR and will be attached to the Final Agenda, memorializes the City’s payment and reimbursement to CBAR for the City’s proportional share of the construction costs of Kitty Hawk Lane.
Through a separate reimbursement agreement dated May 28, 2009 (the “Reimbursement Agreement”), the City agreed to require future lessees and purchasers of property that abuts and accesses Kitty Hawk Lane to reimburse CBAR for their proportionate shares of the road construction costs. The Reimbursement Agreement provides that the City and CBAR agree to use an allocation mechanism of 33.33% for CBAR’s proportionate share and 66.67% for the remaining proportionate share to future lessees and purchasers, with CBAR’s proportionate cost being $112,486.43 and CBAR’s reimbursement amount being $225,006.61. The City further agreed to collect the applicable proportionate development costs from future land purchasers and lessees and reimburse the same to CBAR.
The City has constructed a parking lot that abuts and accesses Kitty Hawk Lane, and CBAR and the City agree that this construction triggers the reimbursement obligation under the Reimbursement Agreement. The City parking lot abuts approximately half of the vacant frontage that remained after construction of the Development. Accordingly, the City and CBAR agree that City’s reimbursement obligation will be 33.33% of the total cost of constructing Kitty Hawk Lane, which amounts to $112,486.43.
The Partial Satisfaction of Reimbursement Agreement, which is still being reviewed by CBAR and will be attached to the Final Agenda, memorializes the City’s payment and reimbursement to CBAR for the City’s proportional share of the construction costs of Kitty Hawk Lane.
Financial Impact:
If approved, the City will pay $112,486.43 to CBAR for the City’s proportional share of the construction costs of Kitty Hawk Lane. The reimbursement is budgeted in account 221-07-221-0880-0-4290 for $112,486 and funded via General Fund transfer.
Policy Impact:
None.
Previous Council Decision or Community Discussion:
The City and CBAR entered into the lease agreement on April 13, 2005, which provided for the reimbursement obligation.
Options and Alternatives to Recommended Action:
Not approve the Partial Satisfaction of Reimbursement Agreement and direct staff to accordingly.
Connection to PBB Priorities and Objectives:
N/A
Connection to Regional Plan:
N/A
Connection to Carbon Neutrality Plan:
N/A
Connection to 10-Year Housing Plan:
N/A