Flagstaff council approves $1.1 million loan document for Lantern renovation, advances several housing ordinances
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Summary
Council approved loan documents allocating $1.1 million in adaptive‑reuse bond funds to Flagstaff Shelter Services’ Lantern renovation, read multiple ordinances affecting subdivision, middle housing and property acquisitions, and scheduled follow-up votes for some items.
The Flagstaff City Council on Tuesday approved loan documents that will provide $1,100,000 in adaptive‑reuse bond funds to Flagstaff Shelter Services to complete renovation work on the Lantern project.
Jennifer Michaelson, housing planning manager, told the council the adaptive reuse bond program—approved by council in September—establishes a $3 million fund and that the Lantern award will help cover accumulated renovation bills. Michaelson said loan documents were prepared and that Ross Schafer, attending virtually, could address specific project details.
Council approved the Lantern loan documents as part of a pulled consent item after members asked for a short staff presentation. The council then approved several ordinances on first and final reading relevant to housing and land use, including:
• Adoption of Ordinance No. 2025‑25 amending Title 11 (subdivision and land‑split regulations).
• Adoption of Ordinance No. 2025‑26 to adopt middle‑housing provisions into the Flagstaff Zoning Code.
• First reading of Ordinance No. 2025‑23 authorizing acquisition and disposition of real property from the Flagstaff Unified School District to facilitate affordable housing development (further consideration scheduled).
• First reading of Ordinance No. 2025‑29 to acquire approximately half a downtown block at 320 N. Humphreys intended to secure parking and potential future development opportunities tied to courthouse needs.
Real estate staff (Bryce Doty) and other speakers said the 320 N. Humphreys purchase replaces an existing lease and protects the city’s parking plans should a south‑phase affordable housing project not proceed. Council approved the items on voice vote where appropriate.
Council also approved Ordinance No. 2025‑28 for the disposition of 116 E. Butler Ave and authorized a purchase agreement with 22 East Butler LLC as part of downtown parking and courthouse planning.
The council scheduled additional readings where required and will return several items for final adoption on Dec. 16. The Lantern housewarming was noted by staff for next week.
