Discussion and possible action on any and all matters regarding Resolution No. 2204.  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, AZ LLC.  (Jose A. Guzman, Director of Planning & Zoning)

A Development Agreement between the City of San Luis, Arizona, and Riedel Holdings, AZ LLC, pertaining to Rezoning Case No. 2021-0693 and Lot Split Case No. 2021-0387. 

Rezoning Case No. 2021-0693
A request by Edais Engineering Inc. on behalf of Riedel Holdings LLC to rezone 186.84 acres from Medium High-Density Residential (R-2), High-Density Residential (R-3), Community Commercial (C-2), and Light Industrial (L-I) to Medium Density Residential (R1-6). Assessor’s Parcel Number 227-11-004 and a portion of parcel 227-11-005, located on the southeast corner of Avenue E and County 23 ½ Street in San Luis, Arizona

Lot Split Case No. 2021-0387
A request by Edais Engineering Inc., on behalf of Riedel Holdings, AZ LLC, for a lot split approval. The existing parcel is 148.4 acres located at the northeast corner of Avenue E and County 24th Street. The proposal is to split the parcel into three new lots creating Parcel A, Parcel B, and Parcel C. 

BACKGROUND:
The subject properties were annexed to the City of San Luis in the year 2000 as part of a pre-annexation agreement (Resolution No. 421). The pre-annexation agreement included the San Luis regional detention and support center and the east wastewater treatment plant. As part of the pre-annexation agreement, the city agreed to allow the development of the regional detention and support center under existing zoning regulations. 

After the annexation became effective in 2010 the owner applied to rezone approximately 20 acres located on the southwest corner of County 23 ½ Street and Avenue D ½ alignment to high-density residential zoning in an area primarily designated for industrial uses. (Rezoning Case No. 2010-11,12,13 and 14). In 2011, Resolution 933 amended the pre-annexation agreement to include certain provisions to allow for high-density residential development. The decision to include high-density residential zoning was based on the potential need for townhomes or condominiums to accommodate short-term employment in the construction or development fields.

According to Resolution No. 933, if the owner develops the 20-acre portion zoned R-2 and R-3 with single-family homes, the developer agrees that such development will be limited to large lot development of lots no less in size of 8,000 square feet and homes of no less than 1750 square feet, exclusive of garage or carport or the owner needs to request an amendment to Resolution No. 933.

In May 2021, the subject properties were purchased by Riedel Holdings LLC and the new owner requested a lot split to divide parcel 227-11-005 to create three new parcels. 

On October 27, 2021, City Council approved Major Amendment Case No. 2021-0340. The applicant is now requesting rezoning of the parcels from Light Industrial (L-I) to Medium Density Residential (R1-6) to allow the construction of a residential subdivision known as Los Mesquites. 

This Development Agreement will allow the rezoning and lot split approval and ensure appropriate construction of improvements, the dedication of right-of-way, streetlights, traffic contribution, and covenants conditions and restrictions.

As part of this agreement, the developer has requested to include a proposed amendment to Resolution No. 933, removing the condition of minimum 8,000 square feet lots and 1750 square feet homes. 

The developer also wishes to donate 5 acres of land for the construction of a Park within the subject property. The 5 acres of land will be in addition to the development open space zoning requirements. 

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. 2204) include the following commitments:

• 2.1 Dedication of Right of Way.  At present time Owners shall dedicate appropriate right-of-way to the city along County 23 ½ Street and Avenue D ½ alignments in accordance with the updated standards for right-of-way as provided by Public Works Department.  Dedication of right of way on County 24th shall be 75 feet from the center of alignment.  Dedication of said right-of-way shall occur at such time and in such manner as required by the City in its sole discretion.  
• 2.2  Development of Improvements.  At such time that any lot created by City Lot Split Case Number 2021-0387 or any lot within the Rezoning Case No. 2021-0693 is developed, public improvements, including but not limited to streets, roads, retention basins, utility extensions, utility mains, including pumping stations, lift stations, force mains, traffic signalization, and other off-site public improvements will be made pursuant to City standards as may be required by the Public Works Director of City in his sole discretion.  The location of such improvements and/or its development is not confined to the lot being developed, but rather may be located on any portion of the entire Property (Exhibit 1) that is the subject of this agreement.  Owner agrees to make such dedications of property as may be needed or necessary for such development at the discretion of the Public Works Director.  Such dedications and the development of such improvements as described above shall be a condition of the issuance of any building permit(s) or other use permit(s) for the development of any such lot or portion of such lot.
• 2.3  Street Lights.  At such time that any lot created by City Lot Split Case Number 2021-0387 or any lot within Rezoning Case No. 2021-0693 is developed, the Public Works Director may require, in his sole discretion, that the development of street lights in the public right-of-way is needed or desired, the development of such street lighting in the manner and at the locations as may be determined by the Public Works Director, in his sole discretion, shall be a condition of the issuance of building permit(s) or other use permit(s) for the development of any such lot.
• 2.4 Residential Development. Developer is requesting Rezoning Case No. 2021-0693 to change Assessor Parcel Number 227-11-004 and portion of parcel 227-11-005 to Medium Density Residential (R1-6) to allow for single-family development. At such time as any portion of the property is developed with single-family homes, the development will be of lots no less in size of 6,000 square feet, amending the lot size requirement and removing the minimum home size on Resolution No. 933.
• 2.5 Traffic Light Contribution. Any development of the property, or portion thereof, and/or the approval of any subdivision plat, be conditioned upon payment to the city the sum of $260.00 per acre, or any portion of an acre, as a proportionate contribution for a traffic signal at the intersection of County 24th Street and Avenue E.  
• 2.6 Waste Water Treatment Plant. Developer agrees to execute, record, and deliver such agreements, easements, and/or covenants conditions and restrictions that run with the land which is the subject of this development agreement for the benefit of the City of San Luis that will allow the real property of Developer that is the subject of this agreement to be used for fumes or odors from its wastewater treatment operations located at 358 N. Avenue D, and to waive any claims for any damages that might arise from wastewater treatment operations, whatsoever, and agree to indemnify and hold the City of San Luis and its officers, agents, and employees harmless from any and all claims, whatsoever, known or unknown, emanating from wastewater treatment operations including, but not limited to, claims arising from fumes or odors.
• 2.7 Land Dedication for Park. Owner wishes to donate to the City, and City agrees to accept from Owner, certain land within the Property, containing 5 gross acres of buildable land in addition to the open space requirement. Owner agrees to convey to the City by executing a Deed, free and clear of all liens and encumbrances. 
• 2.8 Covenants Conditions and Restrictions.  For any lot developed or to be developed as other than residential development, Owner shall record a covenant, condition, and restriction to run with the land prohibiting the development and use of the property as a school, public or private, of any kind nature, or description.
• 2.9 Special Taxing Districts.  Owner agrees to agree to the formation of a street lighting improvement district, a community facilities district and any enhanced municipal district needed. 
• 2.10 Regulations. 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. 

If this development agreement passes, the City Attorney's Office will review Resolution No. 933 and this development agreement for any necessary or desirable clean-up resolution, such as amending the 8,000 sq. ft. to 6,000 sq. ft. lots.