City Council Meeting - FINAL

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Meeting Date: 09/20/2022  
From: Bryce Doty, Real Estate Manager

Consideration and Adoption of Ordinance No. 2022-21: An ordinance of the Flagstaff City Council authorizing the acquisition of real property from the BNSF Railway Company; providing for delegation of authority, repeal of conflicting ordinances, severability, clerical corrections, and establishing an effective date; and 

Consideration and Approval of Contract: A Real Estate Purchase and Sale Agreement with BNSF Railway Company to purchase approximately 2,614 square feet of real property, to be executed after the effective date of Ordinance No. 2022-21.
1) Read Ordinance No. 2022-21 by title only for the final time
2) City Clerk reads Ordinance No. 2022-21 by title only (if approved above)
3) Adopt Ordinance No. 2022-21
4) Approve the Real Estate Purchase and Sale Agreement, and authorize the Mayor to execute the required documents after the effective date of Ordinance No. 2022-21
Executive Summary:
A small parcel owned by the BNSF Railway Company is sandwiched between City property located at 116 and 216 W. Phoenix Avenue, identified by Coconino County Assessor Parcel Number 100-43-001D. Mountain Line's new Downtown Connection Center project is located on the City properties. BNSF has agreed to sell the parcel to the City through the attached purchase and sale agreement, which is its form. 

This parcel, once acquired, is subject to the IGA between the City and Mountain line for the Downtown Connection Center approved on 6/21/22 and will become part of the leased City property for the facility. This ordinance authorizes the real property acquisition.

Note:  The legal description and map of the property is being prepared, and will be attached prior to the Council meeting.  The  purchase and sale agreement will be updated with the correct closing date and attached prior to the Council meeting when the contract will be approved.
Financial Impact:
The City's offer to BNSF, based on an appraisal of the land was accepted in the amount of $71,900. A processing fee of $2,500 in addition to the purchase price brings the total acquisition to $74,400. Account number 044-09-404-1500-1-4431 and budget appropriation is available in 044-09-404-1500-1-4273 for the acquisition. 
Policy Impact:
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan:
Carbon Neutrality Plan
Decreased Dependence on Cars
DD-1: Encourage vibrancy, appropriate density, and attainability in existing neighborhoods, so that more residents live within walking distance of their daily needs. 
DD-2: Create inclusive networks for walking and biking that are continuous, attractive, safe, comprehensive, and convenient for people of all ages.
DD-3: Encourage Flagstaff residents and visitors to walk, bike, roll and take the bus.
DD-4: Transform transportation policies and planning to incorporate greenhouse gas emissions analysis and reduce dependence on driving.
DD-5: Invest in comprehensive and equitable transit.
DD-6: Proactively invest to protect Flagstaff’s clean air status.

Regional Plan
Goal T.7. Provide a high-quality, safe, convenient, accessible public transportation system, where feasible, to serve as an attractive alternative to single-occupant vehicle

Policy T.7.1. Cooperate with NAIPTA in developing and implementing the five-year transit master planning goals and objectives to continuously improve service, awareness, and ridership.
Policy T.7.2. Provide public transit centers and options that are effectively distributed throughout the region to increase access to public transit.
Policy T.7.3. Support a public transit system design that encourages frequent and convenient access points, for various transportation modes and providers, such as private bus and shuttle systems, park-and-ride lots for cars and bicycles, and well-placed access to bus, railroad, and airline terminal facilities.
Policy T.7.4. Support mobility services for seniors and persons with mobility needs.
Policy T.7.5. Incorporate adopted plans and policies for non-motorized and public transportation in the permitting process for all development or land use proposals, including provisions for efficient access and mobility, and convenient links between pedestrian, bicycle, and transit facilities.
Policy T.7.6. Coordinate with NAIPTA to establish rural transit service within the region that is consistent with County land use plans, based on funding availability, cost effectiveness, location of major trip generators, distance between generators, and the needs of transit-dependent individuals.
Has There Been Previous Council Decision on This:
On June 21, 2022, Council approved an IGA with Mountain Line to lease the adjoining city-owned parcels and this parcel once acquired for the construction and operation of the Downtown Connection Center. 
A new Downtown Connection Center (DCC) is identified in Mountain Line’s 2020 Strategic Plan as the highest priority capital project in order to support public transit service within the community.  Since 2009, Mountain Line has operated the existing DCC under an Intergovernmental Agreement (IGA) and licensing agreement with the City of Flagstaff for use of City owned parcels on Phoenix Avenue. This transit hub serves approximately 52,000 riders monthly and has upwards of 300 buses accessing the site daily at our current level of service.
The existing DCC has capacity for nine buses at two curb islands and two on-street loading zones developed for 30’ buses, that were in operation in 2009. Mountain Line currently operates 40’ and 60’ buses and has made minor accommodations and upgrades to fit our new fleet into the existing DCC. The existing loading zones have no additional capacity for transit service expansion and presents significant operational challenges for existing service levels. Under our current conditions, Mountain Line has to get creative about connection schedules and bus dwell locations.
The existing DCC has minimal amenities for riders and drivers. A portion of the existing City warehouse is used for a driver comfort station with restrooms and a breakroom for staff. Aside from two bus shelters, there are no customer service or amenities for patrons.
Due to these limitations, in FY2018, NAIPTA applied for and received a $6,777,938 Federal Transit Administration (FTA) Section 5307/5339 grant (80% federal/20% local) awarded through ADOT for acquisition, design and construction of a new connection center. Then, in 2019, NAIPTA applied for and received a second FTA Section 5339 grant bringing an additional $15,675,000 in federal funds to the project.

The City began negotiations with BNSF to acquire the parcel in between the two city parcels began in 2020 and formally applied to purchase the property on August 31, 2021. 
Key Considerations:
Acquiring the parcel allows full site control between the both phases of the DCC development. Project Phase 1 includes the removal of the existing warehouse and construction of the new DCC building.  The configuration of the bus bays and surface parking is not changed in Phase 1.  Phase 2 includes the new bus bays and reoriented surface parking.  Phase 2 will not begin until after completion of the Rio de Flag Flood Control project.  Phase 2 includes new civic space as depicted on the approved site plan. Failure to acquire the BNSF parcel could lead to accessibility and access issues between the bus bays and the new DCC building. This could lead to re-design requirements and delays.
Ord. 2022-21
Exhibit A - Legal Description
Draft Purchase Contract


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