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Flagstaff council approves Lone Tree Ranch deal to build 168 income-restricted rental units
Summary
The Flagstaff City Council approved zoning changes, development-standard modifications and a development agreement enabling the 100% affordable Lone Tree Ranch project, which will deliver 168 rental units income-restricted to an average of 60% area median income for at least 30 years.
The City of Flagstaff on March 17 approved a package of actions to advance Lone Tree Ranch, a 100% affordable housing development planned at the northeast corner of Lone Tree Road and Pine Knoll Drive.
Council members voted to adopt a rezoning ordinance, approve six requested modifications to property development standards and authorize a development agreement that commits the developer to income-restricted rentals averaging up to 60% of area median income (AMI) for a minimum of 30 years. Staff and the applicant said the project would provide 168 affordable units and qualify for federal low-income housing tax credits.
Planning staff explained the six modifications: removal of a building-forward design guideline to allow a parking field in front of some buildings; changing landscape-island spacing to allow 12 stalls between islands; increasing the maximum visible retaining-wall height from 5 feet to 13 feet (applicant said expected walls will be closer to 8–10 feet, but the higher cap avoids repeat hearings during civil review); reducing facade jog requirements; permitting windows flush with the exterior wall; and reducing required street trees from 175 to 120. Staff concluded the requests meet the city's five required findings and recommended approval.
Developer representatives and council members discussed affordability metrics and tax-credit rules. Counsel for the applicant and the developer said the project is structured to use 4% low-income housing tax credits and that income averaging under Section 42 allows a mix of unit AMI levels that blend to the 60% average required for compliance. They emphasized the project's thin operating margins and described some requested code clarifications as intended to avoid additional review during civil design.
A development agreement approved by resolution secures the affordability commitment, establishes a 5-foot pedestrian easement to tie into city trails, and identifies right-of-way adjustments and gate/access-control requirements. The agreement also allows the city to seek a transit easement for a future sheltered bus stop near the existing stop and anticipates coordination over potential future widening of Lone Tree Road.
Supporters at public comment said the project responds to a community need for housing affordable to public-service workers, nurses and teachers. Council votes (voice) recorded approval for the development-standard modifications, the rezoning ordinance and the development agreement.
Next steps include civil engineering and tax-credit underwriting; staff and the applicant said more detailed site and construction plans will follow and that the city will monitor compliance with the agreement's affordability covenants.
