Flagstaff council approves second amendment to Milltown development agreement over objections

Flagstaff — The City Council voted 5–2 on March 4 to authorize a second amendment to the Milltown development agreement, clearing the way for the project’s developer to submit a revised site plan and to extend time limits tied to when older zoning rules may be used.

The amendment, adopted by resolution number 2025-05, lets Vintage Partners LLC seek approval for an amended site plan and preserves the developer’s ability to use zoning standards that were in effect when the original agreement was negotiated, subject to council review. Councilmember Aslan and Councilmember Spence voted against the measure.

The vote concluded more than two hours of public hearing and discussion in which residents, business owners and students packed the chamber to press competing views. Supporters, including a number of NAU students and several Flagstaff residents, said more housing is needed near campus. Opponents urged adherence to the city’s high-occupancy housing (HOH) rules, passed after the original Milltown entitlements were granted.

Kevin Finchel, deputy city attorney, outlined the legal context the city relied on in negotiating the amendment. He reminded council that the original development agreement, executed in 2018 as part of a public–private partnership that relocated ADOT and a movie theater, granted Vintage rights to build a specific site plan and to use the zoning code in effect in 2017 for a fixed period. A first amendment in 2021 extended that period to December 2025; the second amendment adopted…