Discussion and possible action on any and all matters regarding Resolution No. 2292.  A resolution of the Mayor and City Council of the City of San Luis, Arizona authorizing and directing the entering into a development agreement between the City of San Luis, Arizona, and Riedel Holdings LLC, for La Esperanza Estates Subdivision.  (Jose A. Guzman, Director of Planning & Zoning)

This is a resolution to approve a Development Agreement between the City of San Luis, Arizona, and Riedel Holding, AZ LLC, pertaining to Rezoning Case No. 2023-0214 for La Esperanza Estates Subdivision. 

Rezoning Case No. 2021-0693
A request by Edais Engineering, on behalf of Riedel Holdings, LLC, to amend the conditions on Medium-Density Residential (R1-6) zoning, as approved by Ordinance No. 400, for the property located between 6th Avenue and 8th Avenue north of Bienestar Estates No. 5 and south of the East Main Canal in San Luis, Arizona.

BACKGROUND:
Ordinance No. 400 was approved by City Council on August 12, 2020, changing the zoning classification of 15.1 acres of Rural Area Residential (RA-10) to Medium-Density Residential (R1-6). The purpose of the R1-6 zoning district is to provide for detached single-residence development on urban-sized lots in areas where adequate public facilities and services are available.

The approval of Ordinance No. 400 was subject to the following conditions:

1. Rezoning is conditioned upon development of the land in a manner similar to the tentative lot layout submitted for this application. 
2. A full-length street shall be constructed between 6th Avenue and 8th Avenue as part of the development of this property. 
3. A traffic study is required, and the construction of any and all improvements as recommended by the said study, including but not limited to possible contributions to future roadway improvements such as traffic signals and/or canal crossings along 6th Avenue and 8th Avenue. 
4. Owner agrees to sign necessary improvement districts for the subdivisions of the rezoned parcel. Said districts include a street lighting improvement district, a community facilities district, and a parkway district pursuant to A.R.S §48-572.
5. Grading and erosion control shall comply with the International Building Code standards for all aspects of the development, including development of lots and the building of houses or other buildings.

Due to cost constraints and the feasibility of the project, the applicant requested the removal of Condition No. 2, the condition of the street connection. In addition, the applicant is requesting a deviation from the Subdivision Regulation Section 3.30 regarding the number of dwelling units served by a cul-de-sac, requesting a change from 20 to 30 dwelling units. 

On the regular meeting of August 9, 2023, the City Council approved Ordinance No. 443 amending the conditions on the original rezoning as follows:

1. Rezoning is conditioned upon the development of the land in a manner similar to the tentative lot layout submitted for this application. 
2. If the property is developed with public streets, the owner agrees that a full-length street shall be constructed between 6th Avenue and 8th Avenue as part of the development of this property. If developed as a private gated community, the owner agrees to provide a 10” water line and fire hydrants at least 300 feet and provide a 54-foot wide paved private street.
3. A traffic study is required, and the construction of any and all improvements as recommended by the said study, including but not limited to possible contributions to future roadway improvements such as traffic signals and/or canal crossings along 6th Avenue and 8th Avenue. 
4. Owner agrees to sign necessary improvement districts for the subdivisions of the rezoned parcel. Said districts include a street lighting improvement district, a community facilities district, and a parkway district pursuant to A.R.S §48-572.
5. Grading and erosion control shall comply with the International Building Code standards for all aspects of the development, including the development of lots and the building of houses or other buildings.
6. Since this will be a private gated community and the developer will provide additional infrastructure for emergency vehicles, City agrees to the deviation of Subdivision Regulations Section 3.30, allowing a cul-de-sac to serve 30 dwelling units instead of the 20.
7. Owner agrees to provide a gravity system connection for sewer services. 
8. A Development Agreement must be approved in accordance with A.R.S. § 9-500.05, to include the previous conditions of the rezoning and the requested deviations from the Subdivision Regulations, prior to the approval of the subdivision final plat. 

As per the last condition of Ordinance No. 443, the rezoning was conditioned on a development agreement. The proposed Resolution No. 2292 is the proposed development agreement as per said condition. 

DEVELOPMENT AGREEMENT:
A development agreement has been proposed and the draft is attached to this report. The terms and conditions of the agreement (Resolution No. 2292) include the following commitments:

1. Rezoning Case No. 2023-0214 is conditioned upon the development of the land in a manner similar to the conceptual plan, as shown in Exhibit 2. 
2. If the property is developed with public streets, the owner agrees that a full-length street shall be constructed between 6th Avenue and 8th Avenue as part of the development of this property. If the property is developed as a private gated community, the owner agrees to provide a 10” water line and fire hydrants at least every 300 feet and provide a 54-foot paved private street right-of-way for Union Avenue, as shown in Exhibit 2. 
3. The Owner shall have a traffic study conducted at the Owner’s expense in accordance with said Public Works Standards of the City of San Luis and shall construct or provide for the construction and/or development of all improvements required by the said study as a condition for issuance of any permit authorizing construction or development. Improvements include but are not limited to, possible contributions to future roadway improvements such as traffic signals and/or canal crossing along 6th Avenue. Improvements shall also comply with the City’s Ordinance No. 390.
4. The applicant must provide to the City any documentation regarding the Home Owners Association (HOA) including but not limited to Declaration of Covenants, Conditions and Restrictions (CC&Rs), the articles of incorporation, the bylaws, and the rules and regulations. The applicant must provide an acceptable mechanism to generate funds necessary to maintain any private streets, landscape, retention, common areas and amenities associated with the development including the landscape in the adjacent public right-of-way. The applicant agrees to submit a petition to create any applicable improvement district, dedicate easements to the City, and make changes to the plat as deemed necessary by the City. If applicant is not in agreement with any requirement or administrative interpretation, then the appeal process shall be followed in accordance with City Code Section 18.15.060. 
5. Grading and erosion control shall comply with the 2018 International Building Code Appendix J standards for all aspects of the development, including developing lots and building houses or other buildings. The Owner shall provide a system for effective future maintenance of all improvements needed or necessary to maintain grading and erosion control after development of the subdivision. Such future maintenance shall include, but shall not be limited to and as an example only, placing common improvements such as retaining walls in common areas and establishing a homeowner’s association to maintain same.
6. Owner agrees to provide off-site drainage. Water retention/detention areas may be counted towards the 2% Open Space required by the Zoning Regulations (Chapter 18 Table No. 2). The required 2% for La Esperanza Estates Subdivision is 0.302 acres.
7. Owner agrees to obtain ownership of any necessary right-of-way and/or permits for improvements.
8. City agrees to the deviation of Subdivision Regulations Section 3.30 allowing a cul-de-sac to serve 30 dwellings units instead of 20, if the property is developed as a private gated community in accordance with Section 2.2 of this agreement. 
9. Owner agrees to provide a gravity system connection for sewer services.
10. Union Street shall be designed and constructed in accordance with the current City of San Luis Public Works Standards. Statements shall be contained on the plat and in both the CC&Rs and the HOA by-laws that Union Street is declared private, subject to an easement authorizing use by emergency and public service vehicles, and remain the permanent responsibility of the homeowners' association. The City has no responsibility to maintain or repair the surface of the street or easement property other than to restore the street or property to its original condition after cutting the street for installation of a water main or repairs to the main.
11. The terms of this Agreement are in addition to City codes, rules, fees, and regulations that are applicable to this action.

All the conditions have been discussed by the owner and the owner agrees with the development agreement. 

STAFF RECOMMENDATION:
Staff recommends approval of Resolution No. 2292