Consideration and Adoption of Resolution No. 2026-28: A resolution of the Flagstaff City Council, approving the Second Amendment to the Canyon Del Rio Development Agreement.
 

1. Read Resolution No. 2026-28 by title only
2. City Clerk reads Resolution No. 2026-28 by title only (if approved above)
3. Adopt Resolution No. 2026-28 

The proposed Second Amendment to the Canyon Del Rio Development Agreement facilitates continued development of Canyon Del Rio (CDR) by detailing the obligations of the City and CDR related to infrastructure improvements and dedication of right-of-way required for construction of the John Wesley Powell (JWP) extension across CDR. Pursuant to the First Amendment to the CDR Development Agreement, the City is obligated to compensate CDR for the right-of-way across CDR needed for the JWP extension, including the value of any loss of lot sizes and lot premiums within CDR as a result of the right-of-way dedications and initial buildout of the JWP extension. The parties obtained right-of-way appraisals and relied on those appraisals to conduct good faith negotiations and reached agreement that the City will pay CDR $6,105,107.26 for said property interests.   

If approved by Council, Resolution 2026-28 authorizes and directs the Mayor, the City Manager, the City Clerk and the City Attorney to take all steps necessary to cause the execution of the Second Amendment to CDR Development Agreement and its related documents, including all documents required for the City’s acquisition of the right-of-way dedications, and to take all steps necessary to carry out the purpose and intent of this Resolution. Accordingly, acquisition of the right-of-way dedications across CDR, pursuant to the terms of the Second Amendment, will be finalized by staff through documents executed by the City Manager.
 

In November 2018, voters approved Proposition 419, which allocated a proportional share of funding for roadway, bike, and pedestrian improvements along the future John Wesley Powell extension. The City has reached agreement with the owners of the property on which the JWP extension will be constructed, as well as the owners of the Juniper Point development which will require the JWP extension for secondary access, for the dedication and purchase of right-of-way and road construction obligations. The identified funding from Proposition 419 will pay for the City's proportionate share of the cost of the JWP extension. JWP extension project is budgeted in account 048-10-117-3369-6 with FY2025-26 budget of $8,950,000 and FY2026-27 budget of $25,780,000

There are no policy impacts identified as part of this request.

City staff have presented to City Council and the public on multiple occasions regarding the JWP extension. 

The City Council may approve the Development Agreement as presented.
The City Council may approve the Development Agreement with additional, modified, or deleted terms.
The City Council may remand the Development Agreement back to staff for additional negotiations with the applicant.
The City Council may deny the Development Agreement.

On February 20, 2018, City Council approved the contract with Peak Engineering, Inc. for the John Wesley Powell Area Specific Plan Study to develop a Specific Plan to guide the future private development of public infrastructure, utilities, and public facilities (schools, fire/police stations, libraries, parks, etc.) in the area surrounding the John Wesley Powell extension. In November 2018, voters approved Proposition 419 which allocated a proportional share of funding for roadway, bike, and pedestrian improvements along the future John Wesley Powell extension. On October 27, 2020, City Staff and the JW Powell Design Team presented an update to City Council regarding the current design work and the Land Use Framework. On January 28, 2021, the JW Powell Design Team conducted a meeting with the property owners along the original John Wesley Powell extension alignment to discuss the impacts on their respective parcels. Starting in May 2021, the JW Powell Design Team began to meet with the large-parcel property owners regarding a revised alignment through their parcels. On June 28 and July 7, 2022, City Council, along with copious community input, selected the final alignment for the new JWP extension. The final alignment shifts the alignment to the west and out of the South Fourth Street corridor. On December 3, 2024, Council approved the first amendment to the CDR DA. 

Livable Community: Actively support attainable and affordable housing through the City’s 10-Year Housing plan as well as other projects and opportunities. 

The JWP extension provides a key transportation connection between the south part of Flagstaff to the South Fourth Street corridor. 

HA-1: Create housing options for households at all income levels and family sizes occupied by local residents. 

Create 2.2: Identify suburban areas to support greater density and intensity of development.

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