This agenda item asks the City Council to certify a Comprehensive Plan Amendment changing the land use designation from Open Space (OS), Commercial (C), and Employment Center (EC) to Intermediate Density Residential (IDR) and Commercial (C) on a site approximately 386.87 acres in size located at 555 Highland Ranch Parkway.

This annexation request is coming forward for City Council consideration in conjunction with three related requests for: (1) a development agreement pursuant to NRS 278.0201; (2) voluntary annexation of the subject property into the city of Sparks; and, (3) rezoning of the subject parcel from A40 (Agriculture) to SF6 (Single Family Residential – 6,000 sq. ft. lots) and C2 (General Commercial).

The subject parcel is located north of Highland Ranch Parkway just west of the intersection with Pyramid Highway. (Refer to Exhibit 01 – Vicinity Map). The site is currently vacant except for a Truckee Meadows Water Authority (TMWA) water tank located along Highland Ranch Parkway. This 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 concerning the development of the subject property. The proposed agreement is intended to address the type and intensity of development on the site, along with the entitlements necessary to develop the property. A development agreement is also proposed to address 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.

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 Quarry property consists of one parcel 386.87 acres in size. (Refer to Vicinity Map). The property is designated on the Sparks Land Use Map in the Comprehensive Plan as Open Space (OS,) Employment Center (EC), and Commercial (C). Based on the Land Use Map, there are approximately 84.6 acres of Employment Center, approximately 4.3 acres are designated Commercial, and approximately 297.9 acres are designated Open Space. (Refer to Exhibit 02 – Existing Land Use). The applicant is requesting a land use designation of Intermediate Density Residential on 373. 48 acres and a Commercial (C) land use designation on 13.39 acres. (Refer Proposed Land Use exhibit).

*The Development 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).

Comprehensive Plan Amendment Findings

Finding CP1: The proposed Comprehensive Plan amendment would be in conformance with the Regional Plan land use/intensity designation.

The Truckee Meadows Regional Plan Goals and Policies relevant to this project are:

Goal 1.1 Between 2007 and 2030, at least 99% of the region’s population growth and 99% of the region’s jobs growth will be located in the Truckee Meadows Service Areas (TMSA).

The subject property is located within the City of Sparks portion of the TMSA.

Goal 2.3 Local governments will review and revise their master plans to include management strategies for areas with natural slopes greater than 15 percent but less than 30 percent.

The applicant is requesting Intermediate Density Residential and Commercial land use designations for the subject property. The current land use map designates approximately 298 acres as Open Space. The Truckee Meadows Regional Planning Agency (TMRPA) Development Constraints Map designates a portion of the property as development constrained, though most of the property is not so designated. The Sparks Comprehensive Plan includes policies discussed in Finding CP2 below that will restrict disturbance and development of areas characterized by steep slopes and unique geological features. Hillside development is further regulated by SMC 20.04.011. A slope analysis will be required to define the developable area before there can be any development on the site. The Development Agreement “limits the total area of the property to be cleared, graded, or otherwise disturbed to 225 acres.”

Goal 3.5 The Regional Plan will coordinate the master plans, facilities plan, and other similar plans of local governments and affected entities to ensure that necessary public facilities and services to support new development are or will be available and adequate at the time the impacts of new development occur (i.e. concurrency).

Regionally, Goal 3.5 has been interpreted to mean that necessary public facilities and services must be in place, or that there must be a plan and a funding mechanism to provide them, concurrent with new development. The City of Sparks has generally sought to provide for concurrency when entitlements such as land use and zoning approvals are granted.

The fiscal analysis submitted by the applicant indicates their intent to develop the subject property with commercial or multi-family uses and 1,223 residential units. To date, no City infrastructure or services have been extended to serve the property. The property is located outside of the six-minute response time standard the City has adopted for Fire and first responder service.

However, as previously discussed, the applicant is petitioning for inclusion in IFSA#1 as a term of the proposed Development Agreement. If the subject parcel is eventually included in IFSA#1, development of the site will contribute to the construction of a fire station to serve the area and for storm drain, sewer and parks improvements.  

Section 3.2 (Required Infrastructure Improvements) of the Development Agreement requires 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. 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) 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 street providing primary access within 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.

The Planning Commission concluded that, provided the Development Agreement is approved, the Comprehensive Plan land use amendment complies with Goal 3.5 of the Regional Plan.

Per Nevada Revised Statues (NRS) 278.026(5)(d), there are six criteria that determine if a project is a project of regional significance. The Quarry project meets three of the criteria. The housing criterion is met if the project includes 625 or more residential units. The preliminary land plan identifies 1,223 units while the Development Agreement allows 1,200 to 1,800 units. The traffic criterion is met if the project will generate 6,250 or more average daily trips. The Traffic Study submitted with the application estimated average daily trip generation of 10,974 at build-out. Third, with 1,223 units, this project will generate an estimated 256,830 gallons of sewage per day, exceeding the 187,500 gallons per day criterion. If the maximum of 1,800 units were developed, the sewage generation would be 378,000 gallons per day.

As noted in the Background section, 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.

Finding CP2: The Comprehensive Plan amendment would implement the goals listed within the Sparks Comprehensive Plan as listed in the staff report.

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

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.

Goal H2           Promote a strong, diverse housing market that supports economic growth and vitality while ensuring environmental and fiscal sustainability.

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.

In the future, the intersection of Highland Ranch Parkway and Pyramid Way may potentially emerge as a commercial node in the Spanish Springs valley. Approval of this land use amendment would support Goal MG2 by adding land for a mix of residential and commercial uses west of Pyramid Highway.

Review of Comprehensive Plan amendments, per Policy MG5, requires a fiscal impact analysis. The Fiscal Impact Analysis (FIA) was updated June 13, 2018 to reflect changes to the development agreement to require that the street providing primary access within the subject property be a four-lane, median-divided roadway, rather than two lanes. This change would increase the City’s estimated road maintenance costs.

The updated FIA estimates this annexation and single-family development of 1,223 single family units and 13 acres of commercial uses will generate $47.28 million in revenue to the General Fund and $33.13 million in General Fund expenditures, resulting in an anticipated cumulative positive impact of $14.14 million over the 20-year analysis period.

The FIA estimates 20-year revenues of $3.34 million to the Road Fund and $16.1 million in expenditures.  This estimate results in an anticipated deficit of $12.76 million over 20 years due to the disconnect between limited sources of revenue available for the Road Fund and the high costs of street maintenance and repair. This is not a unique situation for new development within the city of Sparks, but the existing Road Fund revenue structure is insufficient to meet the street maintenance costs associated with all new and existing streets.

Combining the net positive General Fund amount of $14.14 million and the net negative Road Fund amount of $12.76 million produces a projected positive fiscal impact of approximately $1.38 million over the 20-year analysis period.  The FIA states that increasing the number of residential units with no significant additional streets requiring City maintenance would increase this projected surplus. Staff concurs with this premise. (Refer to Fiscal Impact Analysis)

The proposed inclusion of the subject property in IFSA#1 and Section 3.2 (Required Infrastructure Improvements) of the Development Agreement, which are discussed for Finding CP1 above, provide mechanisms for addressing the impacts of the project proposed for this site on existing and planned facilities and infrastructure. Provided the Development Agreement is approved, the Planning Commission concluded that the requested Comprehensive Plan land use amendment supports Goal MG5 and complies with Policy CF1.

Approval of the Comprehensive Plan land use amendment (and corresponding rezoning request) would provide additional land for housing development, supporting Goal H2.

Policies RC22 and RC23 require that new development provide for the protection of natural features such as steep slopes. SMC 20.04.011 regulates project sites over 10 acres in size with slope gradients of 10 percent or greater over 25 percent or more of the site. This section of the zoning code requires that the site be analyzed to identify the maximum allowable disturbed area by slope categories. Any development on the subject site must comply with this section of the zoning code. In addition, Section 3.4 of the Development 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).

Finding CP3: The Comprehensive Plan Amendment would be compatible with surrounding land uses.

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

The subject property is located on the western side of Pyramid Highway, north of Highland Ranch Parkway. The Kiley Ranch North Planned Development on the east side of Pyramid Highway has 157 acres designated as 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 are large lot single family properties. To the west are vacant lands with steep slopes. The subject site was formerly mined for aggregate. The single-family homes and commercial development along Highland Ranch Parkway proposed for the subject property are, arguably, more compatible with surrounding land uses than the previous mining operation.

FINDING CP4: Public notice was given and a public hearing held per the requirements of Nevada Revised Statutes and Sparks Municipal Code.

Public notice was published in the Reno Gazette Journal on March 22, 2018. The Planning Commission and City Council meetings function as public hearings for this matter as required by the Nevada Revised Statutes and Sparks Municipal Code.

The neighborhood meeting required by NRS 278.210.2 for the proposed Comprehensive Plan land use amendment was conducted by the applicant’s representative on February 20, 2018. (Refer to Certificate of Verification for Neighborhood Meeting). Thirteen people attended the meeting. The applicant’s representative presented the Comprehensive Plan land use amendment. Those in attendance expressed concern about the project being visible from Spanish Springs Valley, development of homes on the ridgelines or being visible from the properties to the north, development on the perimeter of the subject property, traffic impacts, lot sizes (average 6,000 sq. ft.), maintaining open space, phasing of the project, and impacts to schools. 

1. The City Council can certify the Comprehensive Plan amendment to change the land use designation on a portion of the subject site from Open Space (OS), Commercial (C) and Employment Center (EC) to Intermediate Density Residential (IDR) and Commercial (C).
2. The City Council can remand the Comprehensive Plan amendment to the Planning Commission.

I move, based on Findings CP1 through CP4 as set forth in the staff report, to certify a Comprehensive Plan amendment to change the land use designation from Open Space (OS), Commercial (C) and Employment Center (EC) to Intermediate Density Residential (IDR) and Commercial (C) on a site approximately 386.87 acres in size and located at 555 Highland Ranch Parkway, Sparks, Nevada.