State law allows the City to enter into development agreements by resolution.  The existing development agreement governs the terms and conditions of the annexation, zoning and phasing of the preliminary plat improvements.  This amendment adds additional provisions for infrastructure assurances, modifies the provisions for off-site sewer infrastructure upgrades, and clarifies the timing of plan approvals for required infrastructure improvements.

The revised cost for the Westside Sewer Interceptor including the Clay Avenue Wash Extension is estimated at $1,650,000.  The City is agreeing to reimburse the Owner for all costs associated with the completion of this improvement per the following schedule:
 

1. Three hundred thousand dollars ($300,000) to be paid within 30 days of the completion of the Clay Avenue Wash Extension (budgeted in account 203-08-375-3377-0-4463);
2. Five hundred thousand ($500,000) to be paid by August 31, 2018; and
3. The remaining sewer cost balance to be paid by August 31, 2020 or sooner if the funds are accelerated in the City's budget.

Council Goals
Transportation and Other Public Infrastructure - Deliver quality community assets and continue to advocate and implement a highly performing multi-modal transportation system.

Team Flagstaff Strategic Plan
Strategic priority #4 - Work in partnership to enhance a safe and livable-community.
 
Flagstaff Regional Plan
Staff identified the relevant Regional Plan Goals and Policies that could be applied to support or not support the proposed amendment to the existing development agreement in association with the Annexation, Concept Zoning Map Amendment and Preliminary Plat.  A  list of Goals and Polices is attached.

Resolution No. 2016-35 authorizing the execution of a Development Agreement between VP 66 & Woody Mountain, LLC and the City of Flagstaff related to the development of approximately 197.58 acres known as Timber Sky was approved by the City Council on November 15, 2016.

1. Approve the First Amendment to the Timber Sky Annexation and Development Agreement as presented.
2. Approve the First Amendment to the Timber Sky Annexation and Development Agreement with additional, modified, or deleted terms.
3. Remand the First Amendment to the Timber Sky Annexation and Development Agreement back to staff for additional negotiations with the Owner.
4. Deny the First Amendment to the Timber Sky Annexation and Development Agreement.

Timber Sky is a proposed 1,300 residential dwelling unit development.  The development proposes a mixture of high, medium, and single-fmily residential units combined with commercial service and open space on 197.58-acres.  An Annexation, Concept Zoning Map Amendment and Preliminary Block Plat were approved by the Council on November 15, 2016.  Timber Sky will be developed in four phases with both on-site and off-site infrastructure improvements.  The original development agreement for this project was approved in conjunction with the cases referenced above and governs the terms and conditions of the annexation, zoning map amendment and phasing of the preliminary plat improvements.  Topics included in the original agreement include workforce housing, outdoor lighting, Homeowners's Assocation requirements and infrasture improvement plans and phasing.

In the original development agreement the Owner agreed to replace the existing 8" sewer line with an 18" diameter pipe the reach of 3,100 feet along Thomson Street and West Kaibab.  This amendment has the Owner agreeing to replace this section of sewer with a combination of an 18", 21" and 24" diameter pipe as well as the extension of the 24" line in the Clay Aveue Wash.  These improvements are a planned City project and as a result, the City has agreed to reimburse the Owner for the cost of the project.

The original development agreement also required all off-site sewer improvements completed prior to the issuance of the first building permit.  The City has agreed that there is capacity in the current sewer system for 125 single-family dwelling units and the City will issue permits for those units in advance of the completion of the above referenced sewer improvement.  Additional units may be permitted depending upon the completion of the sewer improvement plans.

Inform
The subject propery's existing zoning allows for the proposed subdivision.  No public hearing or public outreach is required as part of the City Council's review of an amended development agreement.