Consideration and Adoption of Ordinance No. 2026-29: An ordinance of the City Council of the City of Flagstaff, authorizing the disposition of real property located at Beaver St and Aspen Ave; providing for delegation of authority, providing for severability, authority for clerical corrections, and establishing an effective date. 
 

Article III, Section 5 of the City Charter requires an Ordinance for the sale of public real property. On April 12, 2024, the City issued an RFP for development proposals for the former City Courthouse site, located at the corner of Aspen Ave. and Beaver St. and totaling 0.71 acres (the "Property"). The RFP contemplated the sale of the Property as part of the development. One development proposal was received from Sierra Trigo Partners, LLC ("Sierra Trigo"). A work session was held on October 22, 2024, to obtain direction from council on key considerations of the Sierra Trigo development proposal. Council provided further direction at an executive session on October 27, 2026. The proposed Ordinance is required to move forward with the purchase and sale agreement ("PSA") and development agreement ("DA") with Sierra Trigo, which will be presented to council on December 1, 2026. The PSA conveys the City parcels to Sierra Trigo with the following key conditions:

1. Sierra Trigo will construct a mixed-use project with at least sixty-five residential units, at least 125 hotel guest rooms, and retail space on the first floor. Any deviation will require further City Council approval. 
2. License for thirty-five spaces of public parking at rates equal to Park Flag rates for a term of up to 50 years.
3. Due diligence period of four years with a one-year extension.
4. A sales price of $2,850,000 if closed within twenty-four months from the start of due diligence, with a price escalator for every additional year of due diligence.

The DA incorporates these key conditions, thereby requiring an amendment to the DA for any deviation from the key conditions. 

The sale price of the Property subject to the Ordinance is $2,850,000 if closed within two years. The sale price increases at annual intervals during the remainder of the due diligence period in the PSA. Council previously committed the sale proceeds towards the purchase of the 320 North Humphreys St. block for $6,300,000, completed on June 30, 2026. If the Ordinance is not adopted, the PSA and the DA will not move forward, and the City will look at providing an interfund loan from another City fund until the Property is sold, or until other resources are identified to fund the purchase commitment.

None

• Council provided input on the request for proposals during a work session on March 12, 2024.
• Council provided direction on the development proposal submitted by Sierra Trigo on October 22, 2024. The input provided during this meeting formed the basis for the negotiations with Sierra Trigo Partners, LLC.
• Council provided additional direction on the development proposal on October 27, 2026.

Failure to approve the Ordinance would lead to cancellation of the current RFP proposal.  The City could solicit a new RFP for the sale and development of the Property, or retain the Property pending further direction.

In January 2024, Flagstaff City Council supported the Downtown Action and Vision Plan completed by the Flagstaff Downtown Business Association in partnership with the City, Coconino County, and Mountain Line. The plan identified several catalytic sites, including the entire block housing the former Courthouse site and called for the City to put out a Request for Proposals (RFP) for the redevelopment of the property. Prior to issuing the RFP, staff provided an update to Council on what would be included in the RFP and sought their feedback prior to finalizing the proposal. The issued RFP placed the highest scoring weight on the concept to redevelop the site, with 50 of the total 100 points along with a description of the desired project:

1. Create a mixed-used, high quality, development project that capitalizes on the Site’s prominent downtown location and provides a mix of compatible and complementary land uses that facilitate urban living contribute to the economic and social diversity and vitality, and may include retail, restaurant, residential, live/work, lodging, civic space, or other compatible urban uses. Ground floor amenities should be active, community-focused uses open to the public and may include soft goods, grocery, hardware, etc. Retain and enhance the established downtown building pattern which includes natural breaks in the block with pedestrian and bicycle connectivity by utilizing existing public alleyways.

2. Public parking is required in the proposal. Protected bicycle parking is highly desired to be included within the project.

3. The development should be in general alignment with adopted city goals and policies, including the City’s 10-Year Housing Plan, Carbon Neutrality Plan, the Flagstaff Regional Plan 2030, and the Downtown Flagstaff Vision and Action Plan.

An RFP was issued and originally ran from April 12, 2024, through June 11, 2024. A two-week extension was granted based on questions and comments received from interested parties and the response period ultimately closed June 25, 2024. There were three firms that showed interest in the project, only one response was received which included many of attributes identified in the Downtown Action and Vision Plan and addressed the City’s housing and carbon neutrality priorities.

Council provided direction on the development proposal submitted by Sierra Trigo Partners, LLC on October 22, 2024. The input provided during this meeting formed the basis for the negotiations with Sierra Trigo Partners, LLC. Key considerations discussed included the dynamic between scale and massing and the ability to provide parking, housing, and retail on the site. Council gave direction to preserve the ability to deliver housing and retail on the site. 

• Sustainable and Innovative Infrastructure: Provide, manage, and maintain effective infrastructure for multimodal and active transportation
• Robust and Resilient Economy: Maintain and enhance an equitable and effective business, retention, and expansion program throughout the community

Policy LU.10.2. Support on-street parking, shared lots, and parking structures.
Goal LU.12. Accommodate pedestrians, bicyclists, transit riders, and private cars to supplement downtown’s status as the best-served and most accessible location in the region.
Policy LU.12.3. Locate public and private parking facilities, lots, and garages carefully, screening parking from streets, squares, and plazas.

DD-1 - Encourage vibrancy, appropriate density, and attainability in existing neighborhoods, so that more residents live
within walking distance of their daily needs.

Create housing options for households at all income levels and family sizes occupied by local residents.