The Agreement covers two vacant parcels, 4.97 acres and 62.43 acres in size and totaling 67.4 acres, located at the southwest corner of the Pyramid Highway and Highland Ranch Parkway (See Exhibit A – Vicinity Map). The proposed Agreement is associated with two other requests for:

• Certification of an amendment of the Comprehensive Plan to change the land use designation from OS (Open Space) on a portion of the site to C (Commercial); and
• Rezoning of the entire site from A-40 (Agricultural District) to C2 (General Commercial)

Case History

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 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. The intended purpose 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 properties in IFSA #1.

The City Council approved Resolution No. 3304 on December 12, 2016, thereby adopting the capital improvements plan and updated 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 property owner’s representative, that effectively withdrew the property owner’s request for a development agreement.

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 conducted a public hearing on the property owner’s requests to amend the Comprehensive Plan land use designation and rezone the property. The Commission continued its consideration of these items to their November 16, 2017 meeting over concerns regarding whether the proposed Comprehensive Plan amendment conforms with Goal 3.5 (the so-called “concurrency” requirement) of the Truckee Meadows Regional Plan. The Commission did so 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 was prepared as a companion item to the property owner’s Comprehensive Plan amendment and rezoning requests.

On November 16, 2017, the Sparks Planning Commission voted to forward a recommendation of approval to the City Council of the proposed development agreement (See attached Planning Commission Report of Action). At that same meeting, the Planning Commission approved the Comprehensive Plan amendment and voted to forward a recommendation of approval to the City Council of the rezoning request.

On January 24, 2018, the Truckee Meadows Regional Planning Commission found the Comprehensive Plan Amendment in conformance with the Regional Plan.

On February 27, 2018, the City’s Enterprise Fund Advisory Committee (EFAC) reviewed the proposed Capital Improvements Plan and Updated Fee Schedule for IFSA #1. The proposed updates to the plan and fee schedule provide for the inclusion of the two parcels that are the subject of the Agreement to be included in IFSA #1. The EFAC recommended approval of the updated capital improvements and fee schedule. The next step is for staff to request that the Planning Commission, acting as the Capital Improvements Advisory Committee, review the updated plan and fee schedule and forward a recommendation of approval of the land use assumptions, proposed capital improvements plan and associated fees to the City Council. This action was scheduled to occur on March 15, 2018.

Per SMC 20.05.09 (Development Agreements), the City Council may approve a development agreement if it is consistent with the Comprehensive Plan and otherwise consistent with Nevada or federal law. This Agreement is intended to serve as the basis for satisfying the concurrency requirement for the associated land use approvals. The Agreement must be approved by the Sparks City Council to take effect.

The proposed Agreement includes the following provisions:

• The property owner will not withdraw the petition it filed with the City for inclusion in IFSA #1 prior to when the petition is considered for approval by the Sparks City Council.
• No building permits will be issued or approved on the subject property prior to consideration of the IFSA #1 petition by the City Council.
• The property owners and City recognize and agree that the fiscal analysis provided by the property owners with the Comprehensive Plan and rezoning applications assumes that any streets, gutters, curbs, and sidewalks constructed on the site will be privately owned. The City will not accept any dedication of any streets, gutters, curbs, and sidewalks without a new fiscal analysis that considers the fiscal impacts to the City of any such dedication. Nothing in the proposed Agreement requires or obligates the City to accept dedication of any streets, gutters, curbs, and/or sidewalks on the subject property.
• The City agrees that: based on the assurances the property owner provides in this Agreement, the City’s Community Services Department can support a finding that the City can provide municipal services to the subject property concurrent with its development; and, the Community Services Planning Division shall cooperate reasonably and in good faith to process the property owner’s Comprehensive Plan land use amendment and rezoning applications.

Consistency with Comprehensive Plan

Staff and the Planning Commission view the proposed Agreement as consistent with the Comprehensive Plan because it provides a path for the subject property to be brought into IFSA #1 while preventing development on the site prior to December 31, 2018. This should be sufficient time for the City to process the property owners’ IFSA #1 petition, which is underway. Inclusion of the subject property in IFSA #1 is crucial as it provides a plan and funding mechanism for the provision of public facilities and services to serve development on this site. For these reasons, the Agreement supports and is consistent with the following Comprehensive Plan goals and policies:

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.

The proposed Agreement thus supports a finding that the City can provide municipal services to the subject property concurrent with its development. Addressing this issue enables the City Council to certify the Planning Commission’s findings, including the concurrency and fiscal impact requirements, in support of the applicant’s requested Comprehensive Plan amendment. 

The Sparks Planning Commission reviewed the proposed Agreement on November 16, 2017, found it consistent with the Comprehensive Plan and recommended its approval to the City Council.

Consistency with Nevada or federal law

NRS 278.0203 stipulates that the governing body (i.e., the City Council) may, if it finds that the provisions of a development agreement are consistent with the master plan, approve the agreement by ordinance. 

1. The City Council can adopt Bill No. 2735 approving the Impact Fee Service Area Number 1 Development Agreement.
2. The City Council can adopt Bill No. 2735 with modifications to the Impact Fee Service Area Number 1 Development Agreement subject to concurrence by the property owner.
3. The City Council can reject Bill No. 2735 and provide direction to the City Manager.

I move to adopt Bill No. 2735 to approve the Impact Fee Service Area Number 1 Development Agreement by and between Bruce Investment Group LLC, Bruce Investment Group LLC 401k, Bruce Investment and the City of Sparks concerning the development of Highland Ranch Park, a 67.4 acre property located at the southwest corner of the intersection of Highland Ranch Parkway and the Pyramid Highway, Sparks, NV.