Discussion and possible action on any and all matters regarding Resolution No. 2180.  A resolution of the Mayor and Council of the City of San Luis, Arizona approving Palencia Hills Development Agreement between the City of San Luis, Arizona, and Salmos 127:1 LLC, and repealing Resolution No. 2146. (Jose A. Guzman, Director of Planning and Zoning)

The Development Agreement between the City of San Luis, Arizona and Salmos 127:1, LLC, pertains to Rezoning Case No. 2020-0474B - Palencia Hills Subdivision. 

A request by Edais Engineering, on behalf of, Salmos 127:1, LLC, owner, to amend conditions on Low-Density Residential (R1-20) zoning as approved by Ordinance No. 402. The property is located at Quintero Avenue & County 22nd Street, Assessor Parcel ID No. 211-31-012. 

A development agreement for this project has been approved by City Council by Resolution No. 2146. The conditions of the development agreement are in Article 2. Special Provisions for Infrastructure and are listed as follows:

• 2.1 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 shall also comply with the City’s Ordinance No. 390. 
• 2.2 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 152 Table No. 2). The required 2% for Las Quintas 3 Subdivision is 0.2104 acres.
• 2.3 Owner agrees to provide a 10” water line and fire hydrants at least every 240 feet. And provide a 54-foot right-of-way for Quintero Avenue, as shown in Exhibit 2. 
•  2.4 Owner agrees to provide curb, gutter, and sidewalk on the north side of County 22nd Street between Las Quintas De San Luis 3 subdivision and 10th Avenue.
• 2.5 Grading and erosion control shall comply with the 2003 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 the 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.  
• 2.6 Owner agrees to sign necessary improvement districts for the subdivisions of the rezoned parcel. Said districts to include a street lighting improvement district, a community facilities district, and a parkway district pursuant to A.R.S. § 48-572.  
• 2.7 Owner agrees to obtain ownership of necessary right-of-way for improvements. 
• 2.8 Owner agrees to submit a complete full set of plans at the time of the preliminary plat application.  Said plans to include plans for landscaping to comply with § 152.298 of the Zoning Regulations.  In the alternative for the provision of landscaping, the Owner agrees to submit an engineer’s cost estimate for compliance with landscaping to the satisfaction of the Public Works Director and to pay to the City an amount equal to said estimate.  Said monies to be used by City to provide future landscaping to city rights of way or other public Property in or near the Property.  
• 2.9 Offset from a collector street should be set at a safe distance for construction of required turn lanes and safe turning movements.
• 2.10 The terms of this Agreement are in addition to City codes, rules, fees, and regulations that are applicable to this action. 

AMENDMENT REQUEST:
The applicant submitted a request to amend the conditions on the development agreement. Since the rezoning approved by Ordinance No. 402 was conditioned on the development agreement approved by Resolution No. 2146, the rezoning processed was done as a regular process to give the opportunity to the public to comment or ask questions regarding this request. This rezoning request (Rezoning Case No. 2020-0474B) will be presented to City Council during the same meeting for approval if the new development agreement (Resolution No. 2180) is approved. If both items get approved by City Council we will proceed with the final plat of this subdivision and present it to City Council for approval.

The owner request is to change the following conditions:

•  2.4 Owner agrees to provide curb, gutter, and sidewalk on the north side of County 22nd Street between Las Quintas De San Luis 3 subdivision and 10th Avenue.

This condition was proposed by staff in order to create pedestrian connectivity, however, the owner mentioned that this request is not feasible for the number of lots to be constructed and the cost it requires. This recommendation from staff is not a requirement of our regulations. The regulations require the owner to improve half of the street directly in front of the subdivision.

Since the layout of the subdivision changed and now is proposed to be a gated community, staff is proposing the following changes:

• The Development Agreement was approved based on a layout with 10 lots, the new proposal is 19 lots. The plat is part of the agreement as "Exhibit 2: Conceptual Plan" and will be updated with the new conceptual plan.
• The name for the future subdivision was changed from "Las Quintas de San Luis 3" to "Palencia Hills" and the agreement needs to be changed appropriately. 
• The applicant must provide to the City any documentation regarding the Home Owners Association 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 deem 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 152.045. 

NEW DEVELOPMENT AGREEMENT:
A new development agreement for this project has been proposed and the Draft is attached to this report. The term and conditions of the Agreement (Resolution No. 2180) includes the following commitments: 

• 2.1 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 shall also comply with the City’s Ordinance No. 390. 
• 2.2 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 152 Table No. 2). The required 2% for Las Quintas 3 Subdivision is 0.2104 acres.
• 2.3 Owner agrees to provide a 10” water line and fire hydrants at least every 240 feet. And provide a 54-foot right-of-way for Quintero Avenue, as shown in Exhibit 2. 
• 2.4 Grading and erosion control shall comply with the 2003 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 the 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.  
• 2.5 Owner agrees to sign necessary improvement districts for the subdivisions of the rezoned parcel. Said districts to include a street lighting improvement district, a community facilities district, and a parkway district pursuant to A.R.S. § 48-572.  
• 2.6 Owner agrees to obtain ownership of necessary right-of-way for improvements. 
• 2.7 Owner agrees to submit a complete full set of plans at the time of the preliminary plat application.  Said plans to include plans for landscaping to comply with § 152.298 of the Zoning Regulations.  In the alternative for the provision of landscaping, the Owner agrees to submit an engineer’s cost estimate for compliance with landscaping to the satisfaction of the Public Works Director and to pay to the City an amount equal to said estimate.  Said monies to be used by City to provide future landscaping to city rights of way or other public Property in or near the Property.  
• 2.8 Offset from a collector street should be set at a safe distance for construction of required turn lanes and safe turning movements.
• 2.9 The applicant must provide to the City any documentation regarding the Home Owners Association 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 deem necessary by the City. If the applicant is not in agreement with any requirement or administrative interpretation, then the appeal process shall be followed in accordance with City Code Section 152.045.
• 2.10 The terms of this Agreement are in addition to City codes, rules, fees, and regulations that are applicable to this action. 

Additionally, the following changes will be made to the actual agreement:

• The name for the future subdivision was changed from "Las Quintas de San Luis 3" to "Palencia Hills" and the agreement needs to be changed appropriately.
• An agreement will be made with the new owner of the property. 
• The Development Agreement was approved based on a layout with 10 lots, the new proposal is 19 lots. The plat is part of the agreement as "Exhibit 2: Conceptual Plan" and will be updated with the new conceptual plan.

STAFF RECOMMENDATION:
The resolution is written so that it only becomes effective upon passage of the rezoning.  Staff recommends approval of Resolution No. 2180.