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  11.D.       
Meeting Date: 06/15/2021  
From: Christina Rubalcava, Senior Assistant City Attorney CR

TITLE:
Consideration and Adoption of Resolution No. 2021-35:  A resolution approving a Binding Waiver of Enforcement between the City of Flagstaff and Northgate Holdings, LLC related to properties owned by Northgate generally located north of Ellery Avenue and south of Dupont Avenue on South San Francisco Street.
STAFF RECOMMENDED ACTION:
1) Read Resolution No. 2021-35 by title only
2) City Clerk reads Resolution No. 2021-35 by title only (if approved above)
3) Adopt Resolution No. 2021-35
Executive Summary:
Northgate Holdings, LLC (“Northgate”) is the owner of six parcels of land located north of Ellery Avenue and south of Dupont Avenue on South San Francisco Street in Flagstaff, with Assessor Parcel Numbers 103-15-023, 103-15,024, 103-15-025, 103-15-026, 103-15-002, and 103-15-003 (“Northgate Properties”). The Northgate Properties are zoned Community Commercial (CC) and also have the option to elect T4 Neighborhood 1 (T4N.1) transect zoning.
 
On November 17, 2020, the Flagstaff City Council adopted a land use law, Ordinance 2020-28, generally referred to as the High Occupancy Housing amendments, which made various amendments to the Flagstaff Zoning Code. Northgate was the owner of the Northgate Properties on November 17, 2020.
 
Arizona Revised Statutes §12-1134 (“Prop 207”) allows a property owner to seek just compensation when a city adopts a land use law that reduces the property owner’s existing rights to use, divide, sell, or possess private real property and such action reduces the fair market value of the property. On March 30, 2021, Northgate filed a claim for just compensation under Prop 207, asserting that the amendments to the Flagstaff Zoning Code adopted by Ordinance 2020-28 reduced its rights to use the Northgate Properties and thereby reduced the fair market value of the Northgate Properties. Northgate is seeking $2 million in just compensation for the alleged reduction in market value of the Northgate Properties.
 
In response to a claim for just compensation under Prop 207, a city may reach an agreement with the property owner on the demanded compensation, deny the demanded compensation and defend such denial in litigation, amend the use law, repeal the land use law, or issue to the property owner a binding waiver of enforcement of the land use law on the owner’s specific parcels.
 
If the City Council approves and adopts the attached resolution approving a Binding Waiver of Enforcement between the City and Northgate, the Northgate Properties would not be subject to the High Occupancy Housing amendments adopted by Ordinance 2020-28.
Financial Impact:
Adoption of the resolution and approval of the Binding Waiver of Enforcement will moot Northgate's claim for $2 million in just compensation. 
Policy Impact:
None. 
Connection to PBB Key Community Priorities/Objectives & Regional Plan:
None.
Has There Been Previous Council Decision on This:
No.
Attachments
Res. 2021-35
Binding Waiver of Enforcement
Northgate Properties Map
Ord. 2020-28
Res. 2020-59
Presentation


    

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