Consideration and Possible Adoption of Resolution No. 2013-12:  Arizona State Parks FY 2013 Growing Smarter Grant Application.

The Arizona State Parks Board (“Board”) requires the applicant to certify by Resolution the approval of applications, signature authorization, the availability of local matching funds, and authorization to sign a Participant Agreement with the Board prior to submission of the Growing Smarter State Trust Land Acquisition Grant Application.

The costs associated with adoption of Resolution No. 2013-12 include staff time to support the submittal of the Growing Smarter Grant application. In the event of a successful grant application, it is anticipated the estimated $7 million in matching funds will come from the $5.5 million Observatory Mesa bond, $750,000 Open Space bond, and potentially $750,000 from Coconino County to purchase approximately 2,260 acres of land on Observatory Mesa. 

Fund existing and consider expanded recreational services / Retain, expand, and diversify economic base.

Over the years, Observatory Mesa has emerged as an important resource for recreation and tourism. Observatory Mesa hosts a segment of the Flagstaff Loop Trail and Flagstaff Urban Trail System that promote connectivity for non-motorized transportation and recreation. Arizona Game & Fish has identified Observatory Mesa as important wildlife habitat and wildlife movement corridor. According to the 2006 National Survey of Fishing, Hunting, and Wildlife-Associated Recreation, 1.3 million wildlife viewing participants spend $838 million in Arizona annually. Sites like Observatory Mesa significantly contribute to the local tourism economy. Eco-tourism and its related service sector are important components of Flagstaff’s economic base. As such, the natural environment and outdoor recreational opportunities are extremely important to the tourism trade in Flagstaff.

Option A – Adopt Resolution No. 2013-12 as submitted and authorize submission of the grant application;
Option B – Not adopt Resolution No.  2013-12 and do not authorize submission of the grant application.

As critical wildlife habitat, a popular recreation corridor, and protection for dark skies, Observatory Mesa is a natural and cultural amenity for the northern Arizona community. Efforts to formally protect Observatory Mesa started decades ago and continue today. A milestone was achieved in August 2012 when the City of Flagstaff Open Spaces Commission approved the application for a Growing Smarter Grant for the acquisition of Observatory Mesa. In April 2013, the State Land Commissioner ordered that Observatory Mesa be reclassified as suitable for conservation purposes. The application to acquire Observatory Mesa for conservation purposes through the Growing Smarter Grant process is dependent upon the adoption of a City resolution approving of the grant application. If directed by Council, staff will submit an up-to-50% matching grant through the Arizona Preserve Initiative’s Growing Smarter State Trust Land Acquisition Program to purchase priority lands at Observatory Mesa.  

Resolution No. 2013-12 requires that the City comply with applicable federal, state, and local laws, regulations, rules, standards, procedures, and guidelines related to the Growing Smarter Grant application. The resolution also certifies that the City will supply at least 50% of the project costs of acquiring State Trust lands at Observatory Mesa. 

The costs associated with adoption of Resolution No. 2013-12 include staff time to support the submittal of the Growing Smarter Grant application. In the event of a successful grant application, it is anticipated the estimated $7 million in matching funds will come from the $5.5 million Observatory Mesa bond and $750,000 of the Open Space bond to purchase approximately 2,260 acres of land on Observatory Mesa. The City has requested the support of Coconino County in providing the remaining $750,000. 

The final project costs will depend on the State Land appraisal and the grant amount. In fall 2013, staff will return to Council for formal approval based on the appraisal and grant amount. In the event of an appraisal value that exceeds the City's bonding authority ($5.5 Observatory Mesa bond and $750,000 Open Space bond) and staff is unable to locate the full match amount, the project acreage will be reduced. 

The City has appropriated $12,250,000 in the Observatory Mesa program (403-2410-691) and $750,000 in the Open Space program (403-2409-691).  The remaining $1,000,000 appropriation would likely come from one of the other capital projects which have appropriation available in FY 2014.  It is not expected that this would delay any project as we would look for the additional authority in FY 2015.  Management will strategize this once appraisals are complete and this will be provided at the time of purchase authorization.

Acquiring Observatory Mesa as open space will provide a natural place for members of the Flagstaff community to learn about geology, ecology, astronomy, and civic engagement while engaging in outdoor recreation. 

Empower
In 2005, Flagstaff voters approved a $5.5 million bond to acquire State Trust land on Observatory Mesa for open space. Additionally, approximately 100 members of the community attended the State Trust Public Comment Hearing in February 2013 to show unanimous support for the preservation of Observatory Mesa. 

Option A – Adopt Resolution No. 2013-12 as submitted and authorize submission of the grant application;
Option B – Not adopt Resolution No.  2013-12 and do not authorize submission of the grant application.