City Council Meeting - FINAL


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  11.B.       
Meeting Date: 05/17/2022  
From: Genevieve Pearthree, Senior Planner

Information
TITLE:
Consideration and Adoption of Ordinance No. 2022-01: An Ordinance of the City Council of the City of Flagstaff, extending and increasing the corporate limits of the City of Flagstaff pursuant to the provisions of Title 9, Chapter 4, Arizona Revised Statutes, by annexing approximately 10.05 acres of land located at 7000 North Highway 89, which certain land is contiguous to the existing corporate limits of the City of Flagstaff, and establishing city zoning for said land as Highway Commercial (HC) with a Resource Protection Overlay (RPO); providing for severability, authority for clerical corrections, and establishing an effective date. (Flagstaff Rehab Campus Annexation: Project Number PZ-20-00164-03).
STAFF RECOMMENDED ACTION:
1) Read Ordinance No. 2022-01 by title only for the final time
2) City Clerk reads Ordinance No. 2022-01 by title only (if approved above)
3) Adopt Ordinance No. 2022-01
Executive Summary:
An annexation request from Flagland LLC of approximately 10.05 acres of land, located at 7000 North Highway 89 and further described as Coconino County Assessor's Parcel Number 301-50-005G, into the corporate limits of the City of Flagstaff, and establishing city zoning for said land as Highway Commercial (HC) with a Resource Protection Overlay (RPO).

The Planning & Zoning Commission in a public hearing on December 8, 2021, recommended 5-0 to forward this Annexation request to the City Council with a recommendation of approval with the following condition: 
  1. The subject property shall enter into the City of Flagstaff corporate limits with Highway Commercial (HC) zoning and a Resource Protection Overlay (RPO).

On February 1, 2022, the City Council directed the applicant to pursue a Development Agreement to require the parcel to develop in substantial conformance with the Concept Plan deemed “Complete with Conditions” by the City of Flagstaff Inter-Division Staff (IDS) on March 16, 2021 in Application No. PZ-20-00164-01. The applicant has submitted a draft Development Agreement for City Council consideration on this (May 17, 2022) City Council agenda.
Financial Impact:
The purpose of this annexation request is to extend the City of Flagstaff corporate boundary to provide the subject property with water, sewer, and other City services to facilitate the development of a 174-bed mental behavioral health and substance abuse treatment campus and two commercial pads. The development will extend a waterline along North Highway 89 in the public right of way, and will extend a sewer line across the subject property. The waterline extension will be dedicated to the City of Flagstaff for continued maintenance and operation. Currently, the site has access directly onto an ADOT-maintained roadway. Upon annexation, a portion of the assessed property tax will go to the City of Flagstaff. 
Policy Impact:
None.
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan:
PBB Priorities/Objectives
  • Utilize existing long-range plan(s) that identify the community's future infrastructure needs and all associated costs.
  • Grow and strengthen a more robust, diverse, and resilient economy.
Regional Plan
  • Goal LU.7.2 – Require unincorporated properties to be annexed prior to provision of City services, or that a pre-annexation agreement is executed when deemed appropriate.
  • Policy WR.4.3 – Development requiring public utility services will be located within the Urban Growth Boundary.
  • Page III-10:
    • The proposed annexation should not be detrimental to the majority of persons or property in the surrounding area or the community in general.
    • Annexation must demonstrate a favorable benefit to the taxpayers of the City.
Carbon Neutrality Plan
  • DD-2: Create inclusive networks for walking and biking that are continuous, attractive, safe, comprehensive, and convenient for people of all ages.
Has There Been Previous Council Decision on This:
On January 4, 2022, January 18, 2022, February 1, 2022, and April 19, 2022, the City Council held hearings to consider and adopt Ordinance No. 2022-01 to annex 10.05 acres of land, located at 7000 North Highway 89, and Ordinance No. 2022-02 to rezone 1.09 acres of the 10.05-acres from Highway Commercial (HC) to Rural Residential (RR) zoning to allow for an equine therapy facility.
  • On January 4, 2022, the City Council held a public hearing to consider the proposed annexation. 
  • On January 18, 2022, the City Council voted to read both ordinances by title only for the first time.
  • On February 1, 2022, the City Council voted to continue the second read of both ordinances until April 19, 2022, and directed the applicant to pursue a Development Agreement to require the parcel being annexed to develop in substantial conformance with the Concept Plan deemed “Complete with Conditions” by the City of Flagstaff Inter-Division Staff (IDS) on March 16, 2021 in Application No. PZ-20-00164-01.
  • On April 19, 2022, the City Council voted to continue the second read of the ordinances until May 17, 2022. The applicant has submitted a draft Development Agreement for City Council consideration, which is on this (May 17, 2022) City Council agenda. 
Options and Alternatives:
1. Approve the Annexation with the following conditions:
  • The subject property shall enter into the City of Flagstaff corporate limits with Highway Commercial (HC) zoning and a Resource Protection Overlay (RPO).
  • The annexed parcel shall be placed in the City of Flagstaff Lighting Zone 2 and shall comply with City of Flagstaff Zoning Code Outdoor Lighting Standards.
2. Approve the Annexation with additional conditions, deleted conditions, or modified conditions.
3. Deny the Annexation. 
Background/History:

Development Overview
The 10.05-acre parcel at 7000 North Highway 89 that is the subject of this annexation request is adjacent to the northern Flagstaff city boundary and is located just east of North Highway 89. The parcel is within the Urban Service Boundary as identified by the Flagstaff Regional Plan 2030, and will receive city trash, water, and sewer service upon annexation. The subject site previously contained Blue Ribbon Homes (a manufactured home dealership) and is in the Heavy Commercial (CH-10,000) Coconino County zoning district. The parcel is proposed to be annexed into the Flagstaff city limits with Highway Commercial (HC) zoning and a Resource Protection Overlay (RPO). The applicant proposes to develop a 174-bed mental behavioral health and substance abuse treatment campus and set aside two areas for future commercial development.

After annexation, the subject parcel is proposed to be combined with the approximately 2.14-acre vacant parcel to the south (APN 113-17-011A), which is already inside the city limits. The combined parcels (12.19 acres total) will then be sudivided into four separate parcels. Parcels 1 and 2 will consist of the campus. Parcels 3 and 4 are proposed to be future commercial pads (conceptually shown as restaurants/cafes).

The applicant has also submitted a concurrent Concept Zoning Map Amendment request PZ-20-00164-04 (Ordinance 2022-02) to rezone the northern 1.09 acres of the 10.05-acre parcel from HC to Rural Residential (RR) zoning once the parcel is annexed. The purpose of that request is to accommodate an Equestrian Recreational Facility that will provide equine therapy to patients. City Code Chapter 6-03: Animal Keeping does not allow large livestock (including horses) in the HC zone, but does allow large livestock in the RR zone. The Zoning Code allows Equestrian Recreational Facilities with a Conditional Use Permit in the RR zone.

Project History and Next Steps
The applicant submitted for Concept Plan and Concept Plat review prior to submitting Annexation and Concept Zoning Map Amendment applications. The purpose of the Concept Plan/Plat reviews is to determine whether the proposed project conceptually conforms with City Code. The City of Flagstaff Inter-Division Staff (IDS) made this determination and as such deemed both applications to be “Complete with Conditions” (the Concept Plan on March 16, 2021, and the Concept Plat on May 19, 2021).

The applicant will apply for Site Plan approval should the City Council approve the Annexation and Concept Zoning Map Amendment applications. Site Plan constitutes a formal approval, which, if obtained, will allow the applicant to apply for Civil Engineering Plans and Building Permit review, and for a Conditional Use Permit for the equestrian facility. The applicant will also submit for final plat review to subdivide the entire 12.19-acre site into four separate parcels. The City Council approves final plats.
Key Considerations:
This annexation will increase the corporate limits of the City of Flagstaff. Annexations are adopted by the City Council via ordinance. Ordinance No. 2022-01 annexes approximately 10.05 acres located at 7000 North Highway 89. Arizona Revised Statute 9-471 requires the governing body of the city or town to hold a public hearing to discuss the annexation proposal prior to annexing the subject property. The City Council held this hearing on January 4, 2022.

On February 1, 2022, the City Council directed the applicant to pursue a Development Agreement to require the parcel being annexed to develop in substantial conformance with the Concept Plan deemed “Complete with Conditions” by the City of Flagstaff Inter-Division Staff (IDS) on March 16, 2021 in Application No. PZ-20-00164-01. The draft Development Agreement (for consideration by City Council as part of this [May 17, 2022] agenda) requires the subject property to be developed in substantial conformance with the Concept Plan, Natural Resource Protection Plan, and project narrative including but not limited to the proposed density, intensity, and general layout of the site, deemed “Complete with Conditions” by the City of Flagstaff Inter-Division Staff (IDS) on March 16, 2021 in Application No. PZ-20-00164-01. The allowed uses on the two areas set aside for future commercial development (shown as restaurant uses in the Concept Plan for conceptual purposes only) are all uses allowed in the Highway Commercial (HC) zone.

Staff recommends adding the condition that the annexed parcel shall be placed in the City of Flagstaff Lighting Zone 2 and shall comply with City of Flagstaff Zoning Code Outdoor Lighting Standards. This condition was not in the original recommendation to Planning and Zoning Commission, but is needed so that the parcel is assigned a Lighting Zone upon annexation.
Community Benefits and Considerations:
If annexed and developed as stipulated in the draft Development Agreement, the project will provide a mental health and substance abuse treatment campus, as well as two commercial pads for future development. The project will provide significant edge improvements, enhanced landscaping, Dark Sky compliant lighting, and building architecture in compliance with the City of Flagstaff's architectural design standards.
Community Involvement:
Public hearings before the Planning and Zoning Commission and City Council are conducted in conjunction with requests for annexation.  In accordance with State statute, a notice of the public hearing was provided by placing an ad in the Arizona Daily Sun, posting at least three notices on the property, and mailing a notice to all property owners within 600 feet of the site (exceeding the 300-foot minimum notification area), and to the City’s “Registry of Persons and Groups.” Annexation notices were also provided to the Coconino County Recorder, County Assessor, County Community Development Department, and the Chair of the Board of Supervisors.  All notifications were completed at least 15 days prior to the first scheduled public hearing. A copy of the publication notice, pictures of the postings, a mailing list, and a copy of the mailing notice are included in the attached Public Participation Plan. 

The Planning and Zoning Commission held a public hearing on this application on December 8, 2021. The Commission recommended approval of the annexation by a unanimous vote (5-members present). No public comments were received. 

The applicant held a virtual neighborhood meeting on June 30, 2021, via Zoom as part of the Neighborhood Meeting public notification process required for annexations.  During the meeting, the applicant provided background information about the project and answered questions posed by meeting attendees through the meeting chat or verbally. The applicant created a Record of Proceedings, which was provided to meeting attendees via hard copy mail and email in accordance with city code (and is included as part of the Public Participation Plan). Staff was subsequently contacted by three community members who requested additional information about the development.

Staff received one public comment following the February 1, 2022 City Council meeting. The comment is included at the end of the Public Participation Plan attached to this staff summary report. 
Attachments
City Council Presentation
Ordinance No. 2022-01
Exhibit A & B: Legal Description & Map
Annex Application
Blank Annexation Petition
P&Z Staff Report
Annexation Map
Annexation Narrative
Legal Ad
Vicinity Map
Concept Plan, Plat, & Zoning Map Amendment
Concept Building Materials, Elevations, Floor Plans, Civic Space
Public Participation Plan


    

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