City Council Meeting - FINAL

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Meeting Date: 03/07/2023  
Co-Submitter: Anja Wendel From: Bryce Doty, Real Estate Manager

Consideration and Adoption of Ordinance No. 2023-04:  An Ordinance of the City Council of the City of Flagstaff, authorizing the exchange of property of substantially equal value with the Arizona Board of Regents; providing for delegation of authority, repeal of conflicting ordinances, and establishing an effective date

Consideration and Adoption of Resolution No. 2023-05:  A Resolution of the City Council of the City of Flagstaff, approving the First Amendment to an Intergovernmental Agreement with the Arizona Board of Regents related to Consolidation of University Campus and Road Projects. 

1) Read Ordinance No. 2023-04 by title only for the final time
2) City Clerk reads Ordinance No. 2023-04 by title only (if approved above)
3) Adopt Ordinance No. 2023-04
4) Read Resolution No. 2023-05 by title only
5) City Clerk reads Resolution No. 2022-05 by title only (if approved above)
6) Adopt Resolution No. 2023-05
Executive Summary:
The ordinance will authorize the exchange of real property interests of substantially equal value with the NAU.  The resolution will approve a First Amendment to the Intergovernmental Agreement with NAU, and establish details for the property exchange.  Draft documents were attached to the February 21, 2023 Council meeting packet. Final documents are attached to the March 7, 2023 Council meeting packet and include two updated legal descriptions as noted below in underlined text.

If approved, City will receive the following property interests from NAU:
1. Fee simple title to University Drive east of Milton Road (86,068 square feet); and
2. Drainage easement (1,173 square feet); and
3. Drainage easement (882 square feet).

If approved, NAU will receive the following property interests from City:
1. Fee simple title to land adjacent to NAU Campus (abandoned public right-of-way along Hoskins Avenue)(5,237 square feet).

As part of the overall agreement with NAU, the following are additional key terms found in the First Amendment:
  • City will complete University Drive improvements and assume road maintenance;
  • NAU will continue snowplowing University Drive;
  • The City and NAU will terminate a separate 2017 Development Agreement, which releases both parties from obligations that were related to a development that did not materialize (NAU bought property from developer); 
  • City and NAU will work together related to planning for an expansion of Lone Tree Road;
  • The term of the IGA is extended to 20 years;
  • The IGA is updated to memorialize completed transactions.
Financial Impact:
If approved, City and NAU will exchange properties of substantially equal value. An appraisal is not required by A.R.S. Section 9-407. City and NAU staff have prepared a determination that the properties are of substantially equal value, as set forth in the attached chart. 

City Public Works Department will be assuming additional costs related to ongoing maintenance of University Drive east of Milton Road, except for snowplowing. University Drive is owned by NAU, but is used as public right-of-way.
Policy Impact:
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan:
Priority Based Budget Key Community Priorities and Objectives
Sustainable, Innovative Infrastructure
  • Deliver outstanding services to residents through a healthy, well maintained infrastructure system
  • Utilize existing long-range plan(s) that identify the community's future infrastructure needs and all associated costs
  • Identify smart traffic management, multi-modal transportation, and alternative energy opportunities
Livable Community
  • Provide amenities and activities that support a healthy lifestyle

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.
DD-5: Invest in comprehensive and equitable transit.

Regional Plan
Policy CC.5.4. Complete sidewalks and Flagstaff Urban Trails System connections for all schools, community colleges, and university campuses.
Has There Been Previous Council Decision on This:
Yes, the Council has made prior decisions related to today's Agenda Item:
  • On July 5, 2017 Council approved an IGA with NAU Related to Consolidation of University Campus and Road Projects (approves numerous property exchanges);
  • On September 18, 2017 Council approved a Development Agreement with CVS (would have added an eastbound turn lane along Milton Road onto Butler Avenue); 
  • On December 6, 2022 Council approved Ordinance No. 2022-31 (abandons public right-of-way along Hoskins Avenue adjacent to NAU).
Options and Alternatives:
1. Approve Ordinance No. 2023-04, authorizing property exchange with NAU.
2. Approve Resolution No. 2023-05 approving First Amendment to IGA with NAU to carry out the property exchange.
3. Suggest modifications to the documents or planned course of action.
4. Do not approve the documents. 
Key Considerations:
The property exchange will enable the City to obtain property rights so that it can proceed with improvements to University Drive east of Milton Road as part of the Beulah/University Realignment Project. This Project is scheduled to start construction in Spring 2023.  University Drive is used as public right-of-way for access not only to the NAU Campus, but also to a cemetery, the Greentree shopping center, and the Target shopping center.  
Exchange Value
Ord. 2023-04
Legal Descriptions
Res. 2023-05
Amendment to 2017 IGA
2017 CVS Development Agreement
2017 IGA with NAU for Property Exchange
Ord 2022-31 Abandoning ROW in Hoskins Ave


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