The property that is the subject of the proposed Development Agreement (the “Agreement”) is 386.87 acres in size and located north of Highland Ranch Parkway just west of the intersection with Pyramid Highway. (Refer to Vicinity Map). The site is currently vacant except for a Truckee Meadows Water Authority (TMWA) water tank located along Highland Ranch Parkway. The subject property was formerly the site of an aggregate mining operation. The aggregate pit is not visible from either Highland Ranch Parkway or Pyramid Highway as it is situated in a bowl surrounded by ridges. The remaining quarry area and substantial portions of the site have been graded and are intended for development. There is a paved access road connecting Highland Ranch Parkway to the quarry site.

The applicant’s property is part of approximately 2,000 acres that were brought into the Sparks Sphere of Influence in 2002 as a Cooperative Planning Area with Washoe County. An area plan, known as the West Pyramid Plan, was prepared for this acreage and certified by the City Council in July of 2008. The land use designations for the subject property on the 2016 Sparks Comprehensive Plan Land Use Map – Open Space, Employment Center, and Commercial – are equivalent to but replaced the land uses designated for the site in the West Pyramid Plan. 

On March 13, 2017, the City Council directed staff to negotiate and prepare a development agreement pursuant to NRS 278.0201 for the subject property. The proposed Agreement is in response to the Council’s direction and is intended to address the type and intensity of development on the site, along with the entitlements necessary to develop the property. The Agreement also addresses the requirements and terms for the provision of infrastructure, including the property’s possible inclusion in Impact Fee Service Area Number 1 (IFSA#1). Another purpose of the Agreement is to provide for the applicant to waive, as permitted by NRS 278.0201, certain statutory timeframes for the processing of applications so that the land use requests can be considered concurrently by the Planning Commission and the City Council. Finally, for the owners and developer, the Agreement is intended to provide for greater regulatory predictability during the project’s build-out.

The Agreement is coming forward for City Council consideration in conjunction with three related requests for: annexation of the subject property into the city of Sparks; certification of a Comprehensive Plan amendment to change the land use designation of the site from Open Space (OS), Employment Center (EC) and Commercial (C)  to Intermediate Density Residential (IDR) and Commercial (C); and, rezoning of the subject parcel from A40 (Agriculture) to SF6 (Single Family Residential – 6,000 sq. ft. lots) and C2 (General Commercial).

On April 5, 2018, the Planning Commission reviewed the applicant’s four requests and recommended the City Council approve the annexation petition, certify the comprehensive plan amendment and approve the development agreement and rezoning requests. (Please refer to the Planning Commission Report of Action.)

On May 9, 2018, the Regional Planning Commission (RPC) held a public hearing and reviewed the requested Comprehensive Plan amendment. The RPC also reviewed the project that is proposed for the site, as described in the development agreement, as a project of regional significance. The RPC determined that both the Comprehensive Plan amendment and the proposed project conform with the Truckee Meadows Regional Plan.

The proposed Agreement is for a parcel 386.87 acres in size located at 555 Highland Ranch Parkway. The Agreement also constitutes the property owner’s petition for inclusion in Impact Fee Service Area #1. The parties to the Agreement are the City of Sparks, Jackling Aggregates, LLC (the property owner) and QK, LLC (the developer).

As discussed in the Background section, this request is coming forward for City Council consideration in conjunction with three related requests for annexation, a Comprehensive Plan land use amendment and rezoning of the property. The purpose of bundling a development agreement with these other requests is to provide the public, third-party reviewing agencies, the Planning Commission, and City Council with an understanding of the development proposed for the subject property at the time these requests are considered. The Agreement is also intended to serve as the basis for satisfying the so-called concurrency requirement (Goal 3.5 and Policy 3.5.1) of the 2012 Truckee Meadows Regional Plan for infrastructure and public services that must be addressed with the land use applications. For these reasons, the Agreement supports the findings for approval for the other three requests.

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. In particular, the 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. It includes the following provisions:

• Section Two is intended to provide the developer a degree of regulatory predictability during the build-out of the project. It defines the rules and fees that apply to development of the project.  
• Permitted uses and density are addressed in Section 3.1, which specifies that 1,200-1,800 residential units are permitted at a gross density of between 3.1 and 4.6 dwelling units per acre. Single family detached and attached units are permitted in the portion of the property for which SF6 zoning is requested. All uses permitted in the C2 zoning district, including multi-family housing (by Conditional Use Permit), would be permitted in the portion of the property for which C2 zoning is requested.
• Required infrastructure improvements are addressed in Section 3.2. This includes the off-site infrastructure, at the developer’s expense, necessary for the proposed project. The required off-site improvements include sanitary sewer upgrades and flood control and drainage improvements.

The Agreement requires the widening (to 4 travel lanes), prior to the issuance of any building permits for structures, of Highland Ranch Parkway from Pyramid Highway to the entrance to the project. Also required are the improvements to the intersection of Highland Ranch Parkway and Pyramid Highway recommended in the Traffic Study prepared by Solaegui Engineers, which has been reviewed by City staff and the Nevada Department of Transportation (NDOT). The intersection improvements must be completed prior to issuance of any certificate of occupancy for, or final inspection of, any dwelling unit in excess of 650 dwelling units.

• Section 3.2(d) also requires, per the determination of the City’s Fire Chief, construction of a private, gated secondary fire apparatus access road prior to issuance of a certificate of occupancy for and/or final inspection of any dwelling unit in excess of 200 dwelling units. Section 3.2(d) also requires that the interior street providing primary access to the project be a four-lane, median-divided roadway from Highland Ranch Parkway to the first entrances of Villages 3 and 4, which are shown on the land plan exhibit to the development agreement. In addition, all dwelling units and commercial structures intended for or used for human occupancy must be equipped with fire suppression systems. Finally, emergency access points must be provided to all common areas. These access points shall be a minimum of sixteen (16) feet wide, gated, and posted with signs prohibiting parking.
• Section 3.11 constitutes the developer’s and property owner’s petition to include the subject property in IFSA#1 and their agreement not to withdraw the petition except as permitted by the Agreement.
• Section 3.4 of the Agreement limits the total area to be cleared, graded or disturbed to 225 (58.2%) of the 387 acres. The developer is required to convey, with each final subdivision map, the lands designated as open space to the entity responsible for maintenance of those lands (e.g., homeowner’s association).
• Section Four permits the City Council to review the developer’s compliance with the terms of the Agreement within 12 months of its effective date. It also requires the developer to report, every 24 months after that initial review, on the number of units approved and built, development densities, and status of the project.
• Section 6.1 specifies the duration of the Agreement, which is 15 years. The Agreement grants the developer the right to request one 5-year extension subject to certain conditions.

Consistency with Comprehensive Plan

The Planning Commission determined that the Agreement is consistent with the Comprehensive Plan in part because it serves as the petition for the subject property to be brought into IFSA#1. Inclusion of the subject property in IFSA#1 provides a plan and funding mechanism for the provision of sanitary sewer and storm drain improvements, a fire station, and regional trails to serve development on this site. In Section 3.2, the Development Agreement also obligates the developer to increase the capacity of Highland Ranch Parkway between the Pyramid Highway and the entrance to the subject property, and to construct improvements to the intersection of those two roadways necessary to maintain a Level of Service E. 

The Agreement thus 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 Planning Commission viewed the proposed Agreement as supporting a finding that the City can provide municipal services to the subject property concurrent with its development. This enabled the Planning Commission to make certain findings, including those regarding concurrency and fiscal impact, in support of the applicant’s annexation, Comprehensive Plan amendment, and rezoning requests. 

1. The City Council can adopt Bill 2738 for approval of the Development Agreement as presented.
2. The City Council can modify the Development Agreement subject to the consent of Jackling Aggregates, LLC and QK, LLC.
3. The City Council can reject the Development Agreement.

I move to adopt Bill No. 2738, an Ordinance for approval of a Development Agreement by and between the City of Sparks, Jackling Aggregates, LLC and QK, LLC concerning the development of a parcel 386.87 acre in size located at 555 Highland Ranch Parkway, Washoe County, NV.