Flagstaff Planning Commission Unanimously Approves 168-Unit Affordable Housing Project
FLAGSTAFF, ARIZONA — February 12, 2026

Flagstaff Planning Commission Unanimously Approves 168-Unit Affordable Housing Project

Planning commission unanimously approved 168-unit 100% affordable housing development (Lone Tree Ranch) despite objection from neighboring property owner claiming deed restrictions, with project praised as unprecedented infill meeting regional density and affordability goals.


Commission Approves Unprecedented 168-Unit Affordable Housing Project; Neighboring Owner Claims Deed Restrictions, Loses Continuance Request

Flagstaff's Planning and Zoning Commission voted unanimously this evening to recommend approval of Lone Tree Ranch, a 168-unit, 100% affordable rental housing development by Lincoln Avenue Communities—marking the largest single affordable housing project brought before the commission in recent memory and the first to achieve full affordability at 60% area median income.

The vote came despite a last-minute objection from Stu Bone, a neighboring property owner across the street, who alleged that deed restrictions on the subject property limit development to for-sale housing and requested a one-month continuance. The commission and city staff rejected his request, characterizing the restrictions as private covenants outside municipal jurisdiction. Bone indicated he would pursue the matter through civil remedies.

The unanimous approval culminates a design effort spanning months and reflects growing pressure on municipalities across Arizona to address an acute housing shortage. For Flagstaff, which declared a housing emergency in recent years, the project represents a test case in density bonus policy and affordable housing incentives.

Key Speeches

"I love projects like this where they kind of condense those resources into one area because it's so much easier to protect it during construction than when it's all scattered amongst the development and you're trying to work around single trees here and there." — Alexandra Prellelli, Planning Manager

"168 units of 100% affordable housing is unprecedented, especially up to 60% AMI. Not going up to 80. Um, nothing wrong with 80, but I'm just saying like this is the design was beautiful, too. Um, so I just commend the whole team on this project." — Planning Commission member (speaker not identified in transcript)

"Under section 42, which was established in 1986, that's what governs the low-income housing tax credit or LITC program as you guys are familiar. Um, under that IRS code, you cannot be a full-time student and living within a LITC community." — Matt Klein, Lincoln Avenue Communities

Timeline

Commissioner Joshua Mayor expressed support, noting that the project is "a wonderful project" and that the gate would help prevent tailgating from the nearby Sky Dome parking area. Mayor also suggested the applicant be prepared for council questions about solar panel wiring if future funding becomes available. An unnamed commissioner praised the project as unprecedented and beautifully designed, stating: "I feel like this is a development that I've been waiting to see… 168 affordable housing units is unprecedented, especially up to 60% AMI." Another commissioner (identity unclear from transcript) asked whether any units would be set aside for lower-income seniors; Matt Klein responded that the project would not restrict occupancy to seniors but would welcome senior residents and acknowledged that fair housing law prevents specific set-asides.

Opposition

Number of speakers against: 1

Main concerns:

  1. Alleged deed restrictions on the subject property limiting development to for-sale housing only (Stu Bone's primary claim).
  2. Prior understanding based on reviewing deed documents when Bone acquired his nearby apartments.
  3. Lack of adequate notice of the hearing (Bone received notice only on Monday of that week, not of the prior hearing).
  4. Request for time to hire counsel to review the new information presented and his legal options.
  5. Potential loss of property value or operating environment if the restriction is unenforceable.

Most compelling arguments:

Bone's claim rested on two elements: (1) a representation from an attorney for the seller in August 2025 that restrictions existed, and (2) Bone's own review of documents when acquiring his apartments suggesting an understanding that the site was restricted to for-sale housing. His request for continuance was framed as a need to understand his legal rights and options before the city proceeded. However, Bone offered no documentary evidence of deed restrictions in the hearing itself, only assertions that he had reviewed such documents.

Organized groups: None identified.

Support

Number of speakers in favor: 0 public speakers (full support from staff and commissioners)

Main themes articulated by staff and applicant:

  1. Unprecedented affordability scale: 168 units at 100% affordability to 60% AMI, with no set-aside requirements but full eligibility for families earning up to $65,460 annually (household of four, 2025 numbers; 2026 figures pending).

  2. Regional plan conformance: Density of 13.6 units per acre falls at the top of the 2–13 units-per-acre range for suburban neighborhood areas, demonstrating appropriate infill development within regional guidance.

  3. Density bonus authorization: The 45% density bonus (52 additional units) is triggered by the 100% affordability designation under state law, bringing the total from 116 to 168 units and representing efficient use of the site.

  4. Environmental protection excellence: The project saves 26% of trees (exceeding the 25% minimum for affordable projects) and 93% of steep slope (exceeding the 70% requirement), with all protections consolidated in the eastern resource area to minimize construction disturbance.

  5. Infill location and transit access: Adjacent to the Flagstaff Loop Trail (north and south), a city park, NAU, an existing bus stop, and walkable to historic downtown—supporting the city's climate action plan and compact growth goals.

  6. Design quality: KWA Architects' design features a strategically placed corner clubhouse with fitness center, playground, tot lot, dark-sky-compliant materials, building articulation, and a sympathetic four-story (south) / three-story (north) massing that respects adjacent single-family residential.

  7. Federal compliance and long-term affordability: The Low-Income Housing Tax Credit (LIHTC, Section 42) program mandates 30-year affordability, prohibits student rentals and short-term rentals, restricts property management changes (15-year minimum hold by applicant), and subjects the project to Arizona Department of Housing oversight—reducing city management burden.

  8. No major off-site infrastructure burden: Water and wastewater impact analysis found no major off-site improvements required; the city's concurrent Wildcat Interceptor Upsizing Project addresses regional growth needs.

  9. Economic diversity and workforce housing: The unit mix (two-, three-, four-bedroom) targets essential workers—bus drivers, medical assistants, police officers, teachers, social workers—addressing a critical gap in the local workforce housing market.

Project Details

Vote Breakdown

Outcome & Next Steps

The Planning and Zoning Commission voted unanimously to forward the request to the City Council with a recommendation to approve the rezoning and development agreement, subject to five conditions:

  1. The subject property shall be developed in accordance with the approved site plan.
  2. All other requirements of applicable city codes and ordinances shall be met.
  3. The terms and conditions of the Development Agreement shall be met.
  4. The city reserves the right to revert the zoning if the developer fails to obtain civil plan approval within two years.
  5. The ordinance shall have the effect of rescinding only the portions of the 1997 rezoning ordinance applicable to these three parcels.

The project now proceeds to City Council for final action. Alexandra Prellelli noted that a Development Agreement will also go to council, outlining the affordable housing commitments, development standard modifications (particularly regarding landscaping in the event solar-covered parking does or does not materialize), right-of-way dedications, gate location and access specifications, and requirements for resident participation. Two neighborhood meetings were required; the first was held November 17, 2025, with four attendees. The applicant waived the second meeting. No public comments critical of the project were received by staff prior to the hearing.

Controversies & Context

Deed Restriction Dispute

The most significant controversy emerged in public comment when Stu Bone, owner of Clear Creek Village Apartments and Bridge at Clear Creek Apartments (across Lone Tree Road, south of the subject property), alleged that deed restrictions on the subject site limit development to for-sale housing and preclude the multifamily rental use proposed by Lincoln Avenue Communities.

Bone's account: In August 2025, Kyle Schwarz, an attorney representing the seller, contacted Bone and informed him that such restrictions existed. Schwarz allegedly asked Bone to waive or terminate the restrictions. Bone stated that when he acquired his own apartments, he had reviewed documents and was "under the understanding that's uh the use that would be permitted across the street." Bone requested a one-month continuance to hire an attorney, review the details presented at the hearing, and understand his legal rights before deciding whether to waive or enforce any restrictions.

City and applicant response: Chair Carol Mandino stated that the city does not enforce CCNRs and that any such restrictions would be a private civil matter between property owners. Lindsey Shuy reaffirmed that the applicant did not believe any such restrictions existed and that their enforcement—if they did exist—would be a civil matter, not a land-use matter within the commission's purview. Shuy noted that the planning commission's role is to evaluate land use, not to police private contracts. The applicant emphasized that the 1997 zoning conditions (which permitted for-sale housing) were infeasible due to site constraints and that the current project represents the most beneficial use of the site given its resources.

Bone's follow-up objection: Bone noted that he had received notice of the hearing only on Monday of that week and had not been notified of the prior hearing. He did not provide documentary evidence of the deed restrictions in the hearing.

Outcome: The commission rejected the continuance request and voted to recommend approval. Bone indicated he would pursue the matter through civil remedies (i.e., litigation or demand for enforcement through private legal action). The city made clear that Bone's remedy, if any, lies outside the municipal land-use approval process.

Historical Context: 1997 Rezoning and Infeasibility

The subject property has been zoned High-Density Residential since 1997, subject to conditions requiring for-sale town homes and condominiums. Alexandra Prellelli explained that those conditions remained on the books for nearly three decades but proved infeasible due to the site's natural resource constraints (steep slope and tree resources) and market conditions. The current application effectively remedies that long vacancy by removing those conditions and enabling a use (affordable rental) that developers can actually finance and build.

State and Federal Preemption: LIHTC and Section 42

The project's structure is governed by the federal Low-Income Housing Tax Credit program (Section 42 of the Internal Revenue Code), which imposes strict rules: no student rentals, no short-term rentals, minimum 15-year hold by the applicant, and 30-year affordability floors. These federal requirements supersede any local zoning preferences and are enforced by the Arizona Department of Housing, reducing local regulatory burden.

Housing Emergency Context

Flagstaff has declared a housing emergency in recent years. The 168-unit project, with 100% affordability at 60% AMI, addresses a critical gap in the workforce housing market—targeting essential workers (teachers, bus drivers, medical assistants, police officers) whose incomes fall well below market rents.

Duration

Other Notable Items

None. The meeting consisted of roll call, approval of prior minutes, and the single public hearing on the Lone Tree Ranch project. Chair Mandino noted in closing that two items from a prior meeting had been continued; the applicants had elected to hold off on public hearings but their applications remain valid.

View source transcript ▼

Source: Planning & Zoning Commission Meeting - February 11, 2026 — February 12, 2026. Auto-generated YouTube transcript; may contain transcription errors.

4:00. I'm going to call the meeting to order. So, um, notice of the option to recess an executive to executive session pursuant to ARS 38-431.02. Notice is hereby given to the members of the commission and to the general public. that at this meeting the commission may vote to go into executive session which will not be open to the public and we do so for legal advice and discussion with the commission's attorney on any items listed on this agenda pursuant to ARS 384313.

Um we'll go into roll call. Carol Mandino present. Joshua Mayor present. Christine Shehy, BJ Luki, present, Mary Norton, Ian Sharp, Megan Weller, here. Thank you. Thank you. Um, right now it's an open call to the public. So, at this time, any member of the public may address the commission on any subject within our jurisdiction that is not scheduled um before the commission today. Due to open meeting laws, the commission cannot discuss or act on items presented during this portion of the agenda.

To address the commission on an item that is on the agenda, please wait for me to call for public comment at the time the item is heard. Is there any public comment? Hearing and seeing none, we'll move on to approval of the minutes from uh Wednesday, January 28th, 2026. If there can be a motion move to approve, second. So, it's been moved by um Commissioner Luki and seconded by Commissioner Weller to approve the minutes. Is there any discussion? Any corrections? Hearing none.

All those in favor say I. I. Opposed. Um motion carries. So we will move on to the public hearing. Um item 5A uh direct ordinance zoning map amendment presenting today. Yes, I will. Okay. Thank you, Alex. Um, my name is Alexandra Prellelli. I'm the current planning manager at the city of Flagstaff. Um, inherited this project um from our friend Wesley Welch, our previous senior planner. So, this is a direct ordinance zoning map amendment for Lone Tree Ranch.

Um so this this project contains four or sorry three parcels. The request is to reszone one of those parcels from suburban commercial to highdensity residential with the resource protection overlay there. The other two parcels are zoned high density residential. However, because they were reszoned back in 1997, that old zoning ordinance has conditions on those parcels about how they need to be developed.

So, part of this resoning request is to remove those old conditions from 1997 and to reszone it conditioned to this site plan that we'll be looking at. Um the prior resoning conditions included track B. That's that the little one that's suburban commercial was designed just for or intended to just be an office use. Um then to the east of that is track C which was um reszoned for 32 town homes and then track D which was for 72 condominiums. Uh here's a vicinity map.

So you could see the subject parcel and its zoning um in that diagonal hatch. Um there's the small little pink parcel that's that suburban commercial and then the two other um highdensity residential. To the north, that green piece is a city park. Um to the south you see it's labeled 10 and 13. Um there's some existing apartment buildings, multifamily developments.

And parcel 13 um was designed as kind of a mixed use with some commercial some residential um uh I believe residential units upstairs. Um over to the west is Lone Tree Road and on the other side of that is NAU and um the existing Kinsey School. So this is the proposed site plan for this project. um they're proposing that HR zone for all all the parcels um in order to facilitate um the development of four threefor buildings uh surface parking and a clubhouse.

The clubhouse is down on on the corner there of Pine Null and Lone Tree. Um you'll notice here that some of the parking is shown like a darker gray and that that was um that's a possibility of providing covered parking and we'll talk about that in a moment. So um and looking at this reszone we're looking at the regional plan as well as the zone itself. So, in the zoning co code, the HR zone allows between 10 and 22 units per acre when they're in the resource protection overlay.

That's since changed, but that's the code that was in place at the time of the site plan review. The regional plan supports density for residential only projects between two and 13 units an acre in suburban neighborhood area types. So this proposed project came in with 116 units on 8.51 acres which actually results in 13.6 units an acre. staff talked about this and we are actually really supportive and find that this is in substantial conformance with the regional plans density range.

Um in addition to that because this project is 100% affordable units they qualify for a 45% density bonus which gives them an additional 52 units. So that altogether adds up to the 168 total proposed units. So all 168 units will be affordable housing. All 168 are affordable. Got ahead of me, Carol. That's my next slide. So, all all 168 of these rentals um will be affordable. They're for households earning on average up to 60% AMI. Um I also have housing staff here tonight.

Um, if you have questions about about that component, um, the proposed unit mix includes two, three, and four bedroomedroom units. Um, I'm hoping I got this right. I'm looking at the applicant because this was my best guess looking at floor plans. Um, so they'll let me know if I'm off a little bit, but this is where we get that 168 units. Correct. Uh, we staff reviewed an application for site plan. Like I said, this is um direct to ordinance, so it's conditioned to the site plan.

Um, that site plan was approved November 14th of 2025. It was subject to the approval of this zoning map amendment as well as modifications to development standards. So when you provide affordable units has certain um certain you get awesome things along with it. [laughter] And so, um, one of those things is when you have a development that's 100% affordable, you can ask, um, for modifications to the development standards. If it's under 15%, those that request can be approved by staff.

And if it's more than 15%, that request can be approved by council. So, when this zoning map amendment goes to council, we'll also be talking about those modifications um to the development standards. Um here I'm showing a proposed floor plan. So, you may have noticed before I mentioned this building is three slash4 stories and this is how that works.

So, the first story on the southern side of the four buildings has that floor plan on the bottom where it's just that one um one row of units and then above it on the second floor, third, fourth floor are this more double loaded here's a um end elevation that shows this condition a little more clearly where you see it's four stories on that southern side, but then on the northern side of these buildings um on like the park side and the single family residential um lots it it only has the three stories.

Is that due to the slope? I believe the site is sloped. um their um civil engineer is also here. If you know they all shove their hedges. [laughter] Um this is the proposed floor plan of that clubhouse that's right on the corner. Um the clubhouse um includes a lot of amenities. I'm going to let the applicant um toot their horn for all the amenities they're providing in here. [gasps] And here's the elevation that you'll see when you drive up to the building in the um the parking lot.

So, this is like the east elevation of that building, but just a sense of kind of the character of the architecture. Um, as I mentioned, this site is in the resource protection overlay. Um, this is just a close-up portion of the far east side of the lot because that's where the majority of the slope and the existing to remain trees are located. So for trees um res residentially zoned um par parcels have to save 50% of the tree resources on the site, but there are incentives.

That's the word I was looking for, guys. Um, so the incentive, affordable housing incentive allows um that to be reduced to 25%. Um, you can also count the trees that are on steep slope when you're providing affordable housing. Um, but still this proposal when you do some rounding and do the math, it they're actually um proposing to save 26%. Um there's also steep slope primarily um the steepest slope is here in this eastern end. Um they're required to save 70% of the slope.

Um but the proposal is showing that them saving 93%. Um, personally, I love projects like this where they kind of um condense those resources into one area because it's so much easier to protect it during construction than when it's all scattered amongst the development and you're trying to work around single trees here and there. Um, here's showing the common space. um code requires 15% of the site to be um preserved as common space that's open to uh the residents of the site.

Um the majority again is also in that resource area. There's also a nice chunk around the clubhouse and where those amenities are and they're saving 24% so over what would actually be required. Um here you get to see my attempt to draw using PowerPoint. So, the applicant is required to to provide um new sidewalks on the north side of Pine Null Drive that will include a parkway. That's that sort of landscape strip between the curb and the sidewalk. So, that's that shaky blue line.

Um they are also providing bike racks throughout the site. Those are those blue dots. So, at least one by each building as well as around the clubhouse. Um, there is a proposed foots trail to the north of this site that goes kind of meanders north into the park and gently touches against this this um property. The applicant has agreed to help the city by doing some grading while they're out there grading for their project.

They've agreed to do some grading on that eastern side of the property where the foots is really close to um their property. This makes a lot of sense, especially because they're as they're building their project and putting in retaining laws that are necessary for their project, we really don't want to come back in the future and try and grade then and potentially undermine their structures.

So by doing this grading ahead of time um we can eliminate that concern and also save some money for the city as far as um grading for that foot trail. There's also that red dot on Lone Tree is a existing bus stop and there's another corresponding bus stop on the west side of Lone Tree a little more to the south. Um the we are continuing to work with the applicant on potential additional right ofway for a sheltered bus stop.

That would be a bus stop with a full um a shelter a roof that you could be out of the elements there. Right now it's a pretty minimal um stop. So we're working with the applicant to get additional right ofway. They won't be constructing the bus stop, but they're working with the city to make sure we have enough right away to provide that bus stop. Uh landscaping with the site plan, they're required to submit a concept landscape plan. Um what they submitted generally meets our requirements.

um all the categories of landscaping, the street buffer, the parking lot landscaping, peripheral, um building foundation. There are some affordable housing incentives associated with landscaping that the developer is taking advantage of. One is a general overall reduction in landscaping of 10%. Um but then they're also going to council and asking for additional reductions.

Um, I believe I'll let them speak to that, but I believe part of the issue too is that this was originally conceived with covered parking that would have solar panels on it. Um, but the tax credits associated with that solar um, went away and so it's much harder to finance something like that. So now the covered parking is kind of up in the air.

So, because our code allows for a reduction in parking lot landscaping when you have solar panels because we want to encourage people to put solar panels over parking. It makes sense. But now, because that may not happen, there may just be covered parking, but not solar panels. There may just be open to the sun parking.

So that those land requests for the landscaping modifications are kind of tied to that uncertainty and making sure we have the flexibility if if those parking covers come or go that we're still um meeting the requirements for landscaping. I provided this kind of updated landscape plan um and just the sore western half, but I think it's a good example when you look at this. I would never look at this and think that's not enough landscaping.

So, I think there's an adequate amount of landscaping on the site. I I don't think you would notice that um that there's any reduction being taken um unless you got out there with a, you know, a pad and a pencil and started counting individual trees and shrubs, which I don't recommend. um the parking. So the they're required to have on-site parking. Um our parking standards are based on bedroom numbers.

Um and so they're required by code to have 306 spaces and that's based on it being an affordable unit. Um they also qualify for a 15% transit reduction um which then goes down to 260 spaces. Um they're actually providing 286 and that's including nine ADA spaces. Um only eight are required by our code. Um and then I talked about wanting to keep that option of covered parking. Um when we do reszones, we're looking at our public systems impacts. Um and we do various analyses.

Um the first one is a a traffic um rightaway impact. So um additional rightaway dedications for frontage improvements are required. There's maybe a foot along Lone Tree and a couple feet on Pine Null. Um, we talked about the the new sidewalk on Pine Null that they'll be providing. Um, this project does have a gate at the driveways. Um, one gate is where the clubhouse is is kind of on site more and so staff doesn't really have concerns about that, but the second driveway has a gate on it.

And um, staff just wanted to make sure that that gate was far enough back that a car can pull up and be out of the way of traffic. um and that the gate can work quickly enough so that if another car is waiting it it's not backing up into traffic. So um we looked at that and then I mentioned that foot screening of the trail to the north. Um we also looked at a water and wastewater impact um that as we lovingly call them WISA was completed.

Um there are no major off-site improvements required of the developer. Um, the city is currently under construction on a project, the Wildcat Interceptor Upsizing Project, and part of the WISA just pointed out, we need to make sure that that project is completed um before this project comes online. Um, developers are not required to to upsize major trunks like this. Um, so it's a city project and like I said, it's underway. So staff is not concerned at this point with timing.

We also did a storm water analysis. Um drainage report was submitted. Um the applicants proposing to use underground basins. Um I marked them in blue on this. Um so that's kind of nice because you can park over them. you don't have you're not using up a lot of land on surface basins. So, we've made it to the findings. Finding number one is conformance with the general plan. Um, as I said, this is an existing suburban area. Um, the regional plan density is 2 to 13 units an acre.

Uh, staff found 13.6 to be in conformance. Uh it's supporting our housing goals. It's also supporting a lot of our transportation goals. Um this is a great location adjacent to a bus stop, adjacent to foots, um adjacent to NAU, close by to a lot of services. So finding number one is met. Finding number two is community benefits and public good. Um, I'll say it again. It provides 168 affordable. It's um, it's located within walking distance of NAU, the park to the north, the transit stop.

It's also an infill parcel. You know, this this parcel was reszoned back in 1997 and has sat undeveloped since then. Um so it's always great to see these parcels uh come back and and be developed and it's you know close in instead of that urban sprawl. So finding number two is met. Finding number three is that the site is physically suitable.

um in staff site plan review um we found that it met the applicable codes and requirements that it mitigates any impacts determined by those impact analyses. Finding three is met. Uh along with this um request is a development agreement that will be going to city council. Um the purpose of the agreement is to outline those affordable housing commitments um to identify the affordable housing incentives that are being used including those development standard modifications that I mentioned.

Um, it also outlines the commitment to grade the future foots, the rightaway dedications, the requirements for that gate location and the access for citizen participation. Um, typically two neighborhood meetings are required. Um, the first meeting was held November 17th, 25. four individuals attended. Um because of this, the applicant can request um a waving the second meeting which was done. It was the wa we waved the second meeting.

Um staff has not received any comments on this project to date. So recommendation uh staff recommends the planning and zoning commission in accordance with the findings presented forward the request to the city council with a recommendation approving PZ24-0000224-4 subject the following five conditions that will be included in the zoning map uh amendment ordinance. Um and those conditions are that the subject property should be developed in accordance with the approved site plan.

Um that all other requirements of codes and ordinances be met. Um that the terms and conditions of the DA be met. Um, we also put in our standard, um, Christine isn't here, but that in the event the property is reszoned and the developer fails to obtain civil plan approval within two years that the city may take steps to revert the zoning. Um, again, that's a elective that the city may take. It's not an automatic thing.

Um, and then the last thing is just to clarify that this ordinance will have the effect of rescending the prior reszone, that 1997 one, um, as it relates only to these three parcels. There were additional parcels included in that ordinance. So, I don't want to get rid of the entire ordinance, but just just the portions of that ordinance that really parcels. And I believe that the applicants have presentation. I really quickly and ask if there's any questions of staff.

No, I have Yeah, my name is uh Stu Bone. This is the time Excuse me, Stu. This is the time for the commission to ask questions. I'll go to public comments later. [snorts] I apologize. That's all right. It's it's duly noted. Um and we'll get to your comment later, but do the commissioners have questions? And so, yeah, go ahead, CJ. Okay. Um I just had a question about short-term rentals. Is there any way that these can be used for short-term rentals?

Uh like Airbnbs or it's specific to within their lease agreements, the individual lease agreements that they can copy. Okay. And then I have a couple of questions for staff, housing staff [laughter] and I don't know where you are. Okay. And so um question number one, what is currently 60% of AMI? You know, I was going to ask that because I didn't know off the top of my head. Um so we go back. Can we make sure to introduce ourselves for the record? Oh, I'm sorry. Yes.

if you'll state your name and address for the record or Jennifer Michaelelsson, housing planning manager. Thank you. Um so for for this project, they're operating off of the 60% of the area median income limit. Um for our we have 2025 numbers. The 2026 numbers are not out yet. So um as of 2025 for a household size of one because these income limits vary by household size. Um, for a single person that would be $45,840 annual gross annual income. Household size of two. Uh, just over 52,000.

I can keep going. Household of three, 58,920 or a household of four. I was just going to say I was looking at the unit mix on this project and there are some bigger unit sizes. So they have twos, threes and four or they can speak more to the proportion of you know but um so I think they are anticipating some some families in here. So you know we should be looking at these household sizes of four. So four is how much? A household size of four is $65,460. Um and a household of five is 70,680.

Thank you. And then um I had I did have another qu. Oh, how hard it is is it to qualify to get into affordable housing? Can you kind of take me through those steps? I I think it depends what program for an apartment like this. How hard would it be to qualify? I mean, I've heard some people say they've tried to buy units and it's really hard. It's harder to qualify to purchase a unit. But how hard is it to qualify to rent a unit for for LITC units?

I guess I as a city staff person, I don't oversee any of the property management of housing tax credit projects like this. They're all subject to state compliance and Okay. They might have a better I'll ask when you presentation. Yeah, there's really very frankly very little city oversight of how this property will be managed, which is nice because they have a whole host of requirements through the Arizona Department of Housing that they Okay. Yeah. Okay.

I think that's I think that was all my questions for staff. Does anybody else have any other questions for staff? Okay. Um, hearing no more, then I'd invite you up to give a presentation and we'll get to public comment after the presentation by the And I think see we're all losing our words. What? We're all losing our words. The has a little bit of age, but Alex is [laughter] Alex's too much going on in her head. Okay. How come up there? It's is that Oh, I go that way. Oh, applicant.

That's what you learned. Applicant. Yes. chair chair as we get this up there. Uh Lindseay Shouy for your record with the law firm of Gamage and Burnham 40 North Central Phoenix, Arizona 85004. So thank you so much. This is my first time presenting in the Aquex. I feel like I should have put pants on so we could have done the rock wall after. You should have put your bathing suit on. I know that, too. I don't know. I kind of like the rock climbing situation. That's fun. Um okay. Oh, here we go.

Perfect. high at the beginning. It was it is it's Yeah. Okay. Well, then it's gonna then we're going to start right here. Perfect. We had a a different picture on the front, but we'll start here. Well, thank you so much. Um Chair, thank you for the question with regard to how the units are are rented. We will speak to that at the end. And then um uh Commissioner Luki, the question about short-term rentals, we cannot do that. We'll get to that in the presentation as well.

Um, but with me are Matt and Will from Matt Lincoln Avenue uh communities. We've got Brian Jorgger from WLB. And then our architect is online as well, Rico. So hopefully and then Sean uh with Gamage and Burnham as well. So there's lots of us to answer any questions that you guys have. Oh, there we go. There we go. a little about Lincoln and I know you've reszone property because of land use um but Lincoln Avenue Communities is really excited to be here, excited to have a project in Flagstaff.

Uh they are a nationwide leader in affordable housing. They operate in 28 states. Um they have a total of 823 units of affordable housing uh housing currently under construction and they have six projects in Arizona. Matt was actually born and raised in Arizona. So happy to be coming back here uh and bringing projects back to the community. I'm going to be trying not to be duplicative of things that Alex said.

I love a short presentation from Alex Perelli is one of the most detailed presentations you can get anywhere in the state. Uh but you saw the project location again. We are near existing uh multifamily projects. We are just south of the park access to NAU historic downtown the 40 and the 17. a great infill project that has been vacant since 1997. So, really excited again with the Foots Trail both on the north and the south.

Uh same exhibit that Alec showed, you know, just if you see green, that's all zoned public facilities. Again, a lot of that is NA land as well as the park to the north. Um there's the medium density residential where you kind of see the the single family homes uh out there. You see the plats and then the highdensity residential just to our south. Again, a perfect diversity of housing uh of housing unit types in this area. So, it's been we've been vacant for a while.

It has been zoned uh uh highdensity residential. So again, with this reszone, we are amending the stipulations and then taking care of that little SC corner at the end to bring a much needed product um in a housing crisis in Flagstaff and the state of Arizona. As Alex said, four buildings, right? And you saw, as Alex had on her exhibit, the mix of the three and the four.

It does sound confusing, a mix of three and four um uh building types, but Alec showed that nice uh shot from the side so we could see the clubhouse down in the corner um with great amenity and and we kind of cut it out, but as you uh could see on the corner, a great preservation of both slope resources and tree resources, again, all contained in the same area, so they won't be disturbed during construction. We do have that proposed mix of covered and uncovered parking.

Again, when we started this project, there were more federal incentives for solar covered parking. We have less available to us now. Um we're that we're not taking it off. We want to do solar covered parking. That's our goal. Uh but you know, it is a big A affordable project with the 60% AMI or less. So, we're just going to kind of see what um how how the government continues to roll out different programs and if there's availability to do so. It is our goal to offer that.

Um but we may not and that's why some of the landscaping incentives that will go or modifications that will go to council will account for that depending on whether we have it or not. Um we are hoping to move forward with that.

Here you can see and again this is kind of a different perspective shot but it is it was uh chair Mandino great question is the slope on the property right I think one reason it's been vacant for so long is that the tree and the slope resources that on this corner I'm certain you all drove by to look but I think we did a really nice job of working with the slope and also um having a nice setback from the neighboring property lines.

So really excited about the aesthetics too of of how this property is going to look. Um, our architect, KWA, as I said, is on the line. 168 units. Um, we did have the right Alex had the right mix there. I counting the the floor plan, two-bedroom, threebedroom, and four bedroomedroom. And, um, I anticipate this question as well. No, we cannot rent to students. The Department of Housing requirements that we will be under. See, I know you got twice anticipated that question.

And you know, I think that's the important thing and and the fun thing of working at Flagstaff, right, is you need a little bit of everything for everyone. Um, this is, like I said, 60% AMI or less. It's managed by the state. Um, it will be affordable for 30 years. Um, and the 24 fourbedroom units um, uh, will be for families and it again section 42 Matt's going to get into if you need the real affordability stuff, but section 42 limits that we cannot rent to students.

So, this will be families, individuals. Um, as Alex said, that's a perspective of the clubhouse. Again, KWA did such a nice job on the architecture. um clubhouse, fitness center, playground, tot lot, highly amenitized area both inside and outside. Strategically kind of located at the corner again to add to the to the architectural interest from from the street while still being an incredible amenity for our residents. Uh so, and Alex showed this exact same exhibit, which is great.

Again, it's been zoned HR for a long time, right? It's the SC on the south uh west corner that we are zoning all to HR. But then again, we remove the stipulations from the previous reszone case. Uh a blessing and a curse of working up here in Flagstaff. When you reszone a piece of property, again, when it's a direct ordinance like this, we're tied to the site plan and we're a lot of times tied to very direct stipulations. Again, we'll not interfere with any other neighboring property owners.

It's just the three lots. Uh there are the three perfects that are in front of you tonight. Alex took us through the three findings and I will agree agree to agree with everything that Alex said. Uh but the first right that the proposed amendment is consistent and conforms with the goals of the regional plan and specific plans.

Second, that the pro proposed amendment will not be detrimental to the public interest, health, safety, convenience or welfare of the city and will add to the public good as described in the regional plan. And third, that the site is physically suitable uh is physically suitable in terms of design, location, shape, access to public services and you utilities. Again, we went through uh and we'll go through it.

We went through the whissa, we went through, you know, all of the services that that we need to go through wastewater collection. Um this is an appropriate location. This is an infilled project with location to transit foots um and and a hard site to design. So again, compliments to KWA and to our engineer U Brian Jorgger on the great design that we did to to meet all the needs of the city. Um, as far as the the general plan or the regional plan, I apolog. It's two to 13 units.

That's required for the general plan. We are at 13. Um, again, the the this regional plan designation drivable access to homes and jobs yet walkable with special uh pedestrian facilities like the foots. It's great. We've got the foots on the north and the south. I believe we support many of the goals uh uh as Alex said, transportation, housing goals, conservation goals, open space goals, and economic development goals, right?

To be able to fill in this uh this infill parcel at the greatest density that's permitted by the regional plan at this time. The public benefits um again we advance general plans of of compact growth, housing diversity and sustainability. Um we have energy efficient building materials, native landscaping, open space to create living environment for all of our residents uh and as well as open space around the project.

Um we protect the health and safety by meeting all the current building fire and accessibility codes. Um, and we have a fully looped water man. I don't know why we put that sentence in there, but that's okay. Uh, optional. We all need a fully looped water man. Uh, again, the co covered parking. We the intention is to do that and with the solar there not going to make a commitment at this time. It is part of the plan, but we have to see what's available to us. If we can, we will.

And the whista, the wildcat intercept, we meet with Lee Williams from water services on a regular basis. that Wildcat Intercept is underway, thank goodness, because it's important to the growth and and to many of my clients. Um, so we're yeah, we're happy that that project is underway. It should not interfere, right? That's part of our WISA until that's done, but we should all be good. These numbers are a little different than than what Jennifer said.

Obviously, we will meet the 2026 or 2027 numbers as set out by the city of Flagstaff, but this truly is essential worker housing, right? with the two, three, and four bedrooms. Uh, you know, bus drivers, medical assistants, police officers, social workers, teachers. Those are all incomes that are in line um with with the residents that that we look forward to. Uh, and we are not it affordability is guaranteed for 30 years. No short-term rentals, no rentals to students, all part of the program.

Um and then the the suitability of the location, right? Compact infill. We're located next to foots, bus trails, mountain lines, um four and 14. Um emergency vehicle access. Uh again, great architecture with building articulation, materials, and colors. We will be dark skies compliant, earth tones, facades, roofing, and materials. Again, really excited about this project, the location, the design. So, in summary, I' I would submit to you that we're consistent with the regional plan.

We're not detrimental to the public health safety in any way. Frankly, I'd say we are, you know, getting one step closer towards meeting the the climate action plan, right, of infill development and the the housing crisis that the city of Flagstaff declared. Um and you know adding even just to this corner alone right the total diversity of housing types.

In closing and chair uh I will get Matt to stand up and discuss or the question about how they're rented because that I don't know anything about but we have had minimal public interest as Alex said there were four people that attended our neighborhood meeting. We have a staff recommendation of approval um and we're okay with the conditions of approval as Alex read into the record. Um, so with that, we respectfully request approval. We stand for questions.

If you want, Matt can kind of start with how they're rented or chair, you let us know what you want. So, I'm going to ask if any commissioners have any questions for the applicant other than me. Um, are there any I used to work with low-income seniors. Josh has Okay, I'll get to Josh next. So, I used to work with low-income seniors. Are any of the units going to be set aside for lower income seniors? You have considered that? We we have not considered that yet.

You're going to come up and introduce himself. Name and address the record. Yes. Uh commissioners, thanks for your time this evening. My name is Matt Klein. Um and appreciate and sorry business address 41 Wilshshire Santa Monica, California. Um and as Lindsay noted, uh born and raised here in the valley. Um spent a lot of time up here in Flagstaff.

So this is really exciting for me to be able to not only provide you know affordable housing for the residents of our state but specifically here in Flagstaff where it is certainly needed. Um with regards to the question specifically this is not going to be restricted to seniors. So typically the way these are structured is you will do a 55 plus solely senior lit deal. Uh this will not be restricted to but we will very much so have seniors living in this. There will be no specific set aides.

We can't necessarily do that from a fair housing perspective. Uh but we we absolutely will and look forward to excuse me the senior population um living within our community. I just have a question over the gate. So want to let Josh Josh is behind you. I will [laughter] I I was just gonna get to my question about the gate and whether why why is this a I mean you don't from my understanding we don't really allow gated communities in Flagstaff. This is going to be having a gate.

Is that considered a gated community? Um so there's actually nothing in code that talks about not allowing gates on private property. um if you had a public road um or a private road that was required to meet our public standards for road crosssections. Um those don't have allowances for gates. Okay. So it's more for streets because this is private. It's a driveway. They can have a have a gate. Okay. Thank you. And Josh, you have a question.

Uh, thank you, Madam Chair, and and thank you to the uh applicant and staff for the presentation. I think this is a great project. Um, my question is really around uh the the uh discussion around uh student housing, and I wondered if the applicant can expand on why somebody's status as a student would preclude them from qualifying for uh housing of this type. Absolutely. Um, so again, Matt, Matt Klein with Lincoln Avenue.

Uh, so under section 42, which was established in 1986, that's what governs the low-inccome housing tax credit or LITC program as you guys are familiar. Um, under that IRS code, you cannot be a full-time student and living within a LITC community. If you are a part-time student, so working less than or you have a full-time job and you're taking less than 12 and a half credit hours, then you are eligible under the LITC program. But if you are a full-time student, you're 100% procluded.

Um, and that's signed into lease agreements, but that's federally and statutoily enforced. Thank you. And appreciate that. Thank you. Yeah, Chair Commissioner, if I may add, uh other projects where we just have a percentage of affordable housing, those projects can rent to students. And so it's a distinguish we distinguish there if there's the the the government funding portion of it.

So other projects that you may see coming up here shortly, uh where there is a where the the developer just donates affordable housing, we can do those for full-time students. Okay. So, thank you. I appreciate the clarification. Yeah. And to me, it's an important point because I think we need affordable housing in our community. So, I'm all for that that it's not We have a lot of student apartments in this town. So, anybody any other commissioners have questions for staff or the applicant?

Any other commissioners? I have a comment. Okay. I'm very impressed. I feel like this is a development that I've been waiting to see. Being on planning and zoning, I think I had this view that, oh, we're going to see like all these great projects come through. And unfortunately, a majority of them can be quite disappointing. I mean, 168 affordable housing units is unprecedented, especially up to 60% AMI. Not going up to 80.

Um, nothing wrong with 80, but I'm just saying like this is the design was beautiful, too. Um, so I just commend the whole team on this project. Sorry, I do have one more question. Was I know you said four people came to the hearing. Was anybody concerned about the fuchsia? No. Look, I sometimes I get my neighborhood meetings confused up, but I don't think I've had any complaint. We haven't had any concerns about the Sean Creek. Um, so no. Uh if you'll state your name and address for the record.

Sure. Sean Creed damage and violence property north central uh Phoenix, Arizona. Um we didn't have any questions about the viewed. We had a question about actually student housing. So we got into that uh pretty early on and we had a question about the management of the property and the concern was you know is this going to be a we develop it and then sell it off and the answer to that is no. Under federal statute, uh you we will be involved with managing the property for 15 years at a minimum.

Um and then after that, I think we plan to stay around as long as we can. Correct. Yeah, we we as the owner will be around for 15 years. The affordability will persist for a minimum of 30 years. Correct. Yeah. And yeah, no questions. Okay. Thank you. Then I'll go to the public for questions and um you'll raise your hand. I can call on I know we had some. Okay. So, looks like SB SBI. State your name and address for the record please.

My name is Stu Bone and I'm on Flamco Street in Carl'sbad, California. What What's the address? Uh 6526. 6526. What? You need to state the whole address. Yeah. Give me one second. I'm going to give you the address of my business. It is 8427 North Milbrook, M I L B R O K Sweet 110. And that's in Fresno, California 93720. Thank you. And your question or comment? Yeah. So, I own uh the multif family project across the street from the subject that you are considering this evening.

Um that is the Clear Creek Village Apartments and additionally the bridge at Clear Creek Apartments in August of 2025. Uh, I got a call from Kyle Schwarz. [snorts] He indicated that he was an attorney uh representing the seller of this property and he informed me that there is a restriction on the subject property that prohibits this kind of multif family development and limits the development to forale housing.

And when I acquired these apartment complexes, I also reviewed those documents and was under the understanding that that's uh the use that would be permitted across the street. Additionally, um Mr. Schwarz asked me if I would be willing to wave or otherwise terminate those restrictions.

Um I had subsequent conversations with Lincoln Avenue And I will also say that most of the information, a lot of the well, pretty much all the detail presented on this call today is new information to me that I'm still trying to process and make sure that, you know, I understand and understand the implications of. So, uh, you know, before I consider the request of Lincoln Avenue and the seller, I need to make sure I understand what my legal rights are.

And so, uh, I'm currently in the process of engaging an attorney to review all applicable documents, uh, you know, regarding the, uh, these these restrictions that we're talking about.

Um, and I therefore respectfully ask for a continuence of one month to allow me to have the time to have an attorney review these details presented here on the call today, as well as, you know, my rights, which would uh, you know, permit me to then consider the circumstances uh, under which I would consider waving or terminating the rights that I possess. And so I'm asking for a one-mon continuence uh to those of you here on this [snorts] uh commission today.

Um so my understanding is that um Mr. Bone is concerned about restrictions in the CCNRs. Um my understanding is that state law prohibits the city from um implementing yeah we don't we don't enforce CCNRs at the city so I have no standing to um to to defer you know I look at this as this is a civil matter between two property owners and that the city is not involved.

Chair, if I may, Lindsey Shuy again with Gamage Burnham, I believe he is speaking about issues that may be in deed restrictions or CCNRs. As Alex stated, that's a private contract between property owners. We do not believe there is any such deed restriction. We are not concerned about that at all. If he does have a concern, then he can, you know, enforce anything through the CCNRs. the the job of the city and of the planning commission is recommendations on land use. Um he is correct.

There was an there was an ordinance in place for for sale town homes. I think we've realized that the the number of town homes the resource protection the the the slope protection as well as a tree sorry the we're all having trouble the tree slope as well as uh the tree resource as well as the slope resource made it difficult. We now have um a group that does have the funding to bring 168 units of affordable housing to to market. Um I still believe this is a a great land use decision.

Um I strongly encourage uh the neighbor on the phone. We did have a neighborhood meeting. We've sent multiple notifications. We've we've noticed the property in full compliance of the law. Um if he has any questions or comments, I look forward to him contacting me. But we do not believe we have any issues with CCNRs and um do believe this is a proper land use uh decision for the planning commission to make this even. Thank you.

With with all due respect, I just want to indicate that I did receive notice of this hearing from uh Gamage Vernage or I don't remember the name of the law firm, but I I received that on Monday of this week. Um and I did not receive notice of the previous hearing that happened. So, I just I want to make sure that that's out there. Thank you. Are there any other comments from the public? Hearing none, going to look to commissioners to Oh, go ahead.

Um, I'll make a motion, but before that, I just wanted to say that um, I think it's a wonderful project and I think it is good that you have a gate because of the tailgating at the sky dome. People are always looking for a place to park. So, I think that's going to work in your favor. And, and I think one of the things that the council might ask is about wiring for the solar.

Um, so just to kind of be prepared for that because, you know, if you're saying it might be something in the future, maybe addressing that. Um, so are you ready for me to make a motion? Okay. Um, I move that we forward this request to the city council with a recommendation approving PZ2400224-4 subject to the following five conditions which would be included in the zoning map amendments ordinance. Do I need to read them all? You could say as listed. as listed one through five.

Is there a second to that motion? Second. So add a motion and a second. Any discussion on the motion? Any discussion and discussion or questions? I'll take a vote. All in favor say I. I. Opposed. The motion carried unanimously. So, thank you both to staff and to our um applicant [laughter] for um due diligence and for your presentations. Thank you. So, we'll move on to miscellaneous items to and from commissioners.

Um, I did want to mention we had um an item at our two items at our last meeting that we asked for a continuence. Um, and I just want to give you a heads up that the applicant has decided um to to kind of hold on that and not move forward with public hearings at this time. Um those applications are still valid, but we're gonna hold off on public hearings. Um so just a heads up, um Ben will show up on that hearing date and tell you the same thing, but I just want uh to let you know. Okay.

Is there anything else to and from commissioners? If not, we are adjourned at five o'clock. Thank you very much. Thank you.