Flagstaff council approves first reading of Lone Tree Ranch rezoning for 168-unit, 100% affordable project

Planning staff presented a direct-to-ordinance rezoning on March 3 that would rezone about 8.51 acres at the northeast corner of Lone Tree Road and Pine Null Drive to High-Density Residential with a Resource Protection Overlay to allow a 168‑unit, 100% affordable rental project.

Planning Manager Alexandra Prellelli told council the proposal totals 168 units after the applicant requested a 45% density bonus for providing all affordable units. She said staff found the three rezoning findings—consistency with the regional plan, public benefit/community good, and physical suitability—were met and recommended approval. "I'll say it again, 100% affordable units," Prellelli said during her presentation, emphasizing the project's affordability commitment and proximity to parks and transit.

Lindseay Shouy, counsel for the applicant, and Matthew Klein of Lincoln Avenue Communities described the project layout and the rationale for certain design choices. Shouy said the applicant is proposing three- and four‑story buildings stepped into the slope with a clubhouse and surface parking. On the question of gated access, the applicant said the gates would be wholly on private property and used in part to manage resident parking and playground safety; "these gates are on our property, so they're not in the public right away," Shouy said, adding that vehicle queuing would be designed not to impede Pine Null Drive.

Staff highlighted several project elements: 168 rental units targeted to households averaging up to about 60% of area median income, a unit mix including two-, three- and four-bedroom units (the latter intended for families), retention of significant tree canopy (staff said the proposal saves about 26% of tree canopy and exceeds steep-slope preservation requirements), and planned grading work coordinated with a future city trail. The site plan submitted on Nov. 14 was conditioned on the rezoning and future development‑agreement approvals.

Shouy and Lincoln Avenue Communities said the project will be financed using 4% low-income housing tax credits and related tools; Klein said the firm operates largely in the affordable housing space and sees this as a standard funding model for 100% affordable projects. Council member questions focused on gates, window design, parking counts (the site plan shows 286 spaces though code calculations for affordable units reduced required parking to about 260), and the 30-year affordability term spelled out in the development agreement staff will return with.

The planning commission unanimously recommended approval. Council moved to read ordinance 2026-05 by title for the first time; a second reading and the development agreement will return to council at its March 17 meeting, where modifications to development standards and the formal affordable-housing commitments are expected to be approved.

What happens next: council approved first reading to move forward with the rezoning; staff will return March 17 with the development agreement and final development‑standards modifications that the applicant requests as affordable‑housing incentives.