The subject properties are generally located at the southwest corner of Pyramid Highway and Highland Ranch Parkway (Refer to Exhibit A – Vicinity Map). The request covers two parcels, 4.97 acres and 62.43 acres in size, totaling 67.4 acres. The parcels are vacant.

On September 8, 2016, an annexation petition for the subject parcels was reviewed by the Sparks Planning Commission, which voted to forward a recommendation of denial to the Sparks City Council. The City Council approved the annexation petition on October 24, 2016.

On March 13, 2017, the City Council directed staff to negotiate and prepare a development agreement pursuant to NRS 278.0201 concerning the development of the subject parcels (Refer to Exhibit B – March 14, 2017 Clerk’s Letter). The intent of the proposed development agreement was to address the timing and any phasing of development, along with the entitlements necessary to develop the properties. The development agreement was also expected to address the possible inclusion of the subject parcels in Impact Fee Service Area Number 1 (IFSA#1).

The City Council approved Resolution No. 3304 on December 12, 2016, thereby adopting an updated capital improvements plan and impact fee schedule for IFSA#1. The purpose of the impact fees imposed in IFSA#1 is to require new development to contribute to the cost of additional public facilities needed to meet the added demands on public facilities. The fees contribute to sewer, flood control, parks and recreational and fire station facilities within the boundary of IFSA#1 with the goal of maintaining current levels of service. Inclusion of the subject properties in IFSA#1 would provide a plan and funding mechanism for the provision of public facilities and services to serve development on this site.

Staff received a letter, dated September 21, 2017, from Garrett Gordon, the applicant’s representative, that effectively withdrew the property owner’s request for a development agreement (Refer to Exhibit C – Correspondence).

On October 18, 2017, the owners of the subject property filed a petition with the City to include the subject property within IFSA #1.

On October 19, 2017, the Planning Commission continued their consideration of the applicant’s requests to amend the Comprehensive Plan land use designation and rezone the property to the Commission’s November 16, 2017 meeting over concerns regarding whether the proposed Comprehensive Plan amendment conformed with Goal 3.5 (the so-called “concurrency” requirement) of the Truckee Meadows Regional Plan. The Commission continued the cases to provide staff and Mr. Gordon time to reach an agreement, based on the willingness Mr. Gordon expressed to the Commission on behalf of the applicant, to delay development of the subject property until it was included in IFSA#1.

Following discussions between staff and Mr. Gordon, an abbreviated development agreement (Impact Fee Service Areas Number 1 Development Agreement) was prepared as a companion item to the Comprehensive Plan amendment and rezoning requests.

On November 16, 2017, the Sparks Planning Commission approved the Comprehensive Plan amendment and voted to forward a recommendation of approval to the City Council of this rezoning request (Refer to Planning Commission Report of Action). At that same meeting, the Planning Commission also voted to forward a recommendation of approval to the City Council of the proposed development agreement, which is intended to serve as the basis for satisfying the concurrency requirement.

This is a request to rezone a site comprised of two parcels totaling approximately 67.4 acres in size and located at 500 Highland Ranch Parkway from A40 (Agriculture) to C2 (Commercial) (Refer to Exhibit F – Existing Zoning and Exhibit G – Proposed Zoning). The City Council is expected to consider two related requests on March 26^th prior to the anticipated second reading, public hearing and possible approval of this proposed rezoning: (1) a request for approval of a development agreement pursuant to NRS 278.0201 concerning the development of the subject parcels; and, (2) certification of a Comprehensive Plan amendment to change the land use designation on a portion of the site from Open Space (OS) to Commercial (C). The rezoning request cannot be approved unless the City Council first certifies the Comprehensive Plan amendment.

This request is to rezone the subject site from A40, a zoning designation that allows relatively few uses, to C2, which permits a large number and wide variety of higher intensity uses. A comparison of the uses allowed in the A40 and C2 zoning districts is as follows:

REZONING FINDINGS:

FINDING Z1:    The request, as submitted, is consistent with the City of Sparks Comprehensive Plan.

This request is to rezone the site from A40 (Agriculture) to C2 (General Commercial). Currently, most of the site has a Comprehensive Plan land used designation of Open Space (OS) and a Commercial (C) land use designation on approximately 14 acres. As previously stated, there is an accompanying request to change the land use designation on that part of the site with an Open Space designation to a designation of Commercial. The requested C2 zoning would be consistent with the Commercial land use designation. Staff anticipates the City Council will consider the land use amendment request on March 26th prior to the anticipated second reading, public hearing and possible approval of this rezoning request at that same Council meeting.

The Comprehensive Plan Goals and Policies that are relevant to this request include:

Goal MG1       Support economic vitality by providing a non-residential land use base.  

Goal MG2       Foster diversity in the land use mix including residential, commercial, industrial, employment and recreational areas citywide.

Policy MG5     When reviewing master plan amendments for sites over 5 acres, the City will evaluate or cause to be evaluated: a) the impacts on existing and planned facilities and infrastructure; b) the impacts on existing and planned public services; c) the proposed land use in relationship to existing land uses; and, d) the fiscal implications for public service providers of the proposed land use changes as documented in a fiscal impact analysis.

Policy CF1:       When reviewing new development, the City will not approve an application unless the City services can be provided at acceptable service levels.

Policy RC22:    Maintain development restrictions and standards in the Sparks Municipal Code as necessary to conform to policies in the Truckee Meadows Regional Plan pertaining to Development Constraints Areas and for slopes with gradients over 30%.

Policy RC23     Require new developments to preserve and protect significant natural amenities, unique features (e.g. rock outcroppings and drainage ways) and other natural features.

Approval of the rezoning request would support Goals MG1 and MG2 by adding land for non-residential uses. It should be noted, however, that there are approximately 157 acres of undeveloped land with commercial land use and zoning designations within the vicinity of the subject property. In the future, the intersection of Highland Ranch Parkway and Pyramid Way may develop as a commercial node in the Spanish Springs valley.

Review of Comprehensive Plan amendments, per Policy MG5, requires a fiscal impact analysis. The applicant submitted a letter dated July 14, 2017 to update the full analysis dated June 6, 2017. The analysis estimates that approximately 36 acres of the 67.4 acres are developable. The actual developable area would be determined after a slope analysis per SMC 20.04.011.

Per the applicant’s fiscal analysis, under Scenario 1 (36 acres of general commercial uses) the estimated cost to the City of Sparks for serving the subject properties is $2,196,506 through 2036.  The estimated revenue through 2036 is $4,812,955, producing a projected net surplus of $2,616,449.

The fiscal impact analysis included a Scenario 2 (200-unit apartment complex and 110,000 square feet of self-storage facility). The analysis estimates the cost to the City of Sparks to provide services under this scenario to be $6,152,065 through 2036. The estimated revenue to the City is $7,063,590 for a projected net surplus of $911,525.

The fiscal impact analysis assumes that any streets, gutters, curbs and sidewalks will be privately owned. In the proposed development agreement, the property owners and the City recognize and agree on this assumption and acknowledge that nothing in the development agreement requires or obligates the City to accept dedication of any streets, gutters, curbs and/or sidewalks on the subject property.

With the eventual inclusion of the subject parcels in IFSA#1, development of the site will contribute to the construction of a fire station to serve the area and storm drain, sewer and parks improvements. Provided the development agreement is approved, it is staff’s view that the requested Comprehensive Plan land use amendment supports Goal MG5 and Policy CF1.

Policies RC22 and RC23 require that new development provide for the protection of natural features such as steep slopes. Section 20.04.011 of the Sparks Municipal Code regulates project sites over 10 acres with slope gradients of 10 percent or greater over 25 percent or more of the site. This section of the code requires that the site be analyzed to identify the maximum allowable disturbed area by slope categories. The required analysis will determine the total area that can be disturbed on the site. Any development on the subject site must comply with this section of the Sparks Municipal Code.

FINDING Z2:    The project is consistent with the surrounding existing land uses.

The surrounding land uses and zoning are summarized in the following table:

The Highland Ranch parcels are located on the western side of the Pyramid Highway. The Kiley Ranch North Planned Development on the east side of the Pyramid Highway has 157 acres designated commercial, including a site for a proposed hospital. None of the commercial uses planned for Kiley Ranch North have been developed to date. The areas to the north and west are vacant lands with steep slopes. The subject site and the property to the north have formerly been mined for aggregate. The proposed commercial zoning on the subject properties will be compatible with the surrounding land uses.

FINDING Z3:    Public notice was given and a public hearing held per the requirements of the Sparks Municipal Code.

Public notice was given per the requirements of the Sparks Municipal Code and Nevada Revised Statutes. The Planning Commission and City Council meetings function as the public hearings for this item. This rezoning request was noticed, at a minimum, to all property owners within 750 feet of the subject properties; 46 property owners were mailed notices. Public notice was published in the Reno Gazette-Journal on October 6, 2017.

This is the first reading of the ordinance to rezone the subject property.

This is a first reading. No motion is required.