City Council Draft Agenda

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Meeting Date: 12/06/2022  
Co-Submitter: Bryce Doty From: Carmen Pryer, Real Estate Specialist

Consideration and Adoption of Ordinance No. 2022-24:  an ordinance of the Flagstaff City Council authorizing the acquisition of real property interests for the Milton Road and University Avenue Right-of-Way Project; providing for delegation of authority, repeal of conflicting ordinances, severability, clerical corrections, and establishing an effective date
1) Read Ordinance No. 2022-24 by title only for the final time
2) City Clerk reads Ordinance No. 2022-24 by title only (if approved above)
3) Adopt Ordinance No. 2022-24
Executive Summary:
Further design efforts on Milton Road and University Avenue right-of-way project have identified additional property acquisitions in order to deliver the project. Adoption of this ordinance will authorize the acquisition of all of the real property interests required for the project, as required by the Flagstaff City Charter.
Financial Impact:
In May 2000, the Flagstaff voters approved Proposition 403 which provided funding for improvements to Traffic Flow and Safety. As part of this proposition, two of those projects apply to the Project. These two projects were the University Avenue Realignment and Beulah Boulevard Extension.

City Staff completed a preliminary realignment plan and programmed $7.4 million in the FY2015 Capital Improvement Program Summary. In FY2023, an additional $9.2M was budgeted for the Project from the 419 Transportation Tax. These two allocations provided a combined total $16.6M for the Project.

Vintage Partners, LLC, will also contribute $1.65M for the pedestrian underpass commitment. It should be noted that VP is responsible for all costs associated with the pedestrian underpass and per Amendment One to the DA, those costs must be repaid to the City within five (5) years.
Policy Impact:
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan:
Priority Based Budget Key Community Priorities and Objectives

Safe and Healthy Community -
  • Foster a safe, secure, and healthy community.
  • Ensure the built environment is safe through the use of consistent standards, rules and regulations, and land use practices.
Inclusive and Engaged Community -
  • Advance social equity and social justice in Flagstaff. 
Sustainable, Innovative Infrastructure -
  • Deliver outstanding services to residents through a healthy, well maintained infrastructure system.
  • Utilize existing long-range plans that identify the community's future infrastructure needs and all associated costs.
  • Identify smart traffic management, multi modal transportation, and alternative energy opportunities.
Environmental Stewardship -
  • Implement sustainable building practices and alternative energy and transportation options.
  • Implement, maintain and further the Climate Action and Adaptation Plan.
Regional Plan Goal T.2 -
  • Improve transportation safety and efficiency for all modes.
Has There Been Previous Council Decision on This:
City Council previously authorized real property acquisitions related to this project in 2021 as outlined in the Background/History. This ordinance authorizes acquisitions to match the final design of the project, and repeals the prior 2021 ordinance. 
Options and Alternatives:
1. Approve ordinance 
2. Do not approve property acquisitions, and provide other direction.
On May 16, 2000, the voters of Flagstaff passed Proposition 403 which established a local transportation tax rate to provide funding for a variety of transportation system improvements including the arterial and collector street system, and multi-modal elements. The information pamphlet for this proposition specifically identified the Beulah Boulevard extension and the University Avenue realignment as “missing links” within the overall transportation network.  The publicity pamphlet for Proposition 403 showed an alignment for these roadways like the current proposal. A total of $7.375 million has been collected and allocated for these transportation improvements. These funds became 100% available as of July 1, 2017; however, many years of work have been spent on moving this project forward.

In 2005, the City of Flagstaff acquired APN 103-21-002, a 9.58-acre site known as the “Fresquez Parcel” for approximately $2.7 million. This purchase was the first step in moving this transportation project to fruition and provides the majority of right-of-way necessary to accomplish the Beulah Boulevard extension. In order to accomplish the University Avenue/Drive realignment, the ADOT District Offices and Regional Laboratory need to be relocated.  

Following the acquisition of the Fresquez parcel, the City and ADOT began to explore options for partnerships in order to relocate the ADOT facilities. In July 2009, the Arizona P3 (Public-Private-Partnership) Legislation was passed, allowing for partnerships between a public agency (in this case two public agencies) and a private-sector entity to allow greater participation in the delivery of a transportation project. Typically, the public agency assumes all the risks and responsibilities for a transportation project, but under the P3 the private partner takes on some of those risks and responsibilities. The Flagstaff P3 is the first time this initiative has been used to acquire new facilities for ADOT, which will free up land for roadway improvements and redevelopment. A Memorandum of Understanding was executed on March 28, 2012 and set out the parameters for how this P3 project would function. The City and ADOT would combine the remainders of their parcels after right-of-way dedication to be used for redevelopment. The redevelopment parcel would then be traded from ADOT to the developer for relocated ADOT facilities. 

ADOT issued a Request for Qualifications in March 2012 to solicit a private partner who could relocate the ADOT facilities allowing for the construction of the road improvement project. The selected private sector partner was Vintage Partners, who proposed to relocate the ADOT facilities to the former Harkins Theater on Woodlands Village Boulevard. The P3 project was formalized through a Pre-Development Agreement (PDA) between Vintage, the City, and ADOT in December 2014. The PDA provides an overview of the various transactions, authorizes Vintage Partners to prepare and submit required materials for a Site Plan and Rezoning application for ADOT and City property located between Milton Parkway and Beulah Avenue, provides an anticipated schedule, requires an implementation agreement between ADOT and Vintage Partners, provides the term of the agreement, provides remedies for disputes and includes miscellaneous provisions required for an ADOT P3 project.
On August 21, 2017, the City Council approved the Reinstatement of, and First Amendment to the P3 Pre-Development Agreement extending the term to December 31, 2017; on December 19, 2017, a Second Amendment was approved that extended the term to March 31, 2018; on March 20, 2018, a Third Amendment was approved that extended the term to June 30, 2018.
On April 17, 2018, City Council approved the Development Agreement (DA) between The City and Vintage Partners. The DA provides for the sequence of approvals to facilitate the conveyance of the City Property to ADOT, the relocation of ADOT to the former Harkins Site, and the recordation of the final plat. It acknowledges that other agreements, including an Inter-Governmental Agreement between the City and ADOT, and an Implementation Agreement between ADOT and Vintage, will also speak to the timing and conditions for the property transfers from the City to ADOT, and ADOT to Vintage.
On August 18, 2018, City Council approved an IGA between the City and ADOT in order to facilitate the completion of the project.

On December 3, 2019, City Council approved the Mill Town Final Plat.

On September 21, 2021, City Council approved Ordinance No. 2021-18 authorizing property acquisitions for the project. 

City has determined it is appropriate to adopt a new ordinance authorizing the acquisition of real property interests for the project, to conform with updates to the construction plans and legal descriptions for the real property interests to be acquired.
Key Considerations:
The property acquisitions will enable the City to complete planned roadway improvements. Due to the finalization of the plans, and the bike and pedestrian modifications at the 60-percent level, additional ROW was necessary to acquire to construct the roadway project.
Community Benefits and Considerations:
The Project improvements have been identified as an important project to help address traffic congestion on Milton Road.
Community Involvement:
Inform - The public voiced opinions on the proposed P3/Mill Town project during a public hearing which occurred prior to the rezone and development agreement which were approved by the City Council on April 17, 2018.
Involve - Public participation was included in the rezoning process.
Collaborate - P3/Mill Town is certainly a collaboration between the State, City, and Vintage Partners, LLC, a private company, and the public who commented during the public hearing on the rezoning.
Empower - The voters of Flagstaff approved the 2000 Transportation Tax which funded the Fresquez acquisition and the $7.4 million programed in the Capital program for the University/Beulah roadway improvements.
Ord. 2022-24
Exhibit 1 Chart
Exhibit 2 Legal Descriptions
Parcels and Roadway Map


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