On June 25, 2018, the City Council entered into a development agreement (the “Agreement) with Jackling Aggregates, LLC (the property owner on that date) and QK, LLC (the “Master Developer” on that date) for a parcel 386.87 acres in size located at 555 Highland Ranch Parkway (the “Property”; for location see Exhibit 3 – Vicinity Map). The staff report provided to the City Council for its June 25, 2018 consideration of the Agreement is attached (Exhibit 4).

The parcel that is the subject of the Agreement is located north of Highland Ranch Parkway and west of the intersection with Pyramid Highway. The site is currently vacant except for an existing Truckee Meadows Water Authority (TMWA) water tank located along Highland Ranch Parkway on the southwestern portion of the property. 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 located 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 proposed use of the site is a minimum of 1,200 and a maximum of 1,800 residential units, a limited amount of commercial or multi-family development adjacent to Highland Ranch Parkway, and at least 100 acres of open space (Project).

The Agreement was approved on June 25, 2018 by the City Council in conjunction with three related requests for: (1) annexation of the subject property; (2) certification of a Comprehensive Plan amendment to change the land use designations from Open Space (OS), Employment Center (EC), and Commercial (C)  to Intermediate Density Residential (IDR) and Commercial (C); and (3) rezoning from A40 (Agriculture) to SF6 (Single Family Residential – 6,000 sq. ft. lots) and C2 (General Commercial).

The Agreement addresses the type and intensity of development on the property, along with the entitlements necessary to develop the site. The Agreement also addresses the terms and requirements for infrastructure, including the property’s planned inclusion in Impact Fee Service Area Number 1 (IFSA #1). Under the Agreement, the applicant also waived certain statutory timeframes for the processing of applications so that the land use requests could be considered concurrently by the Planning Commission and the City Council. Finally, for the owner and developer, the Agreement provides a degree of certainty for the duration of the buildout of the Project.

In the period since approval of the Agreement, the Master Developer has undertaken further analysis of the site and the land and infrastructure plans for the Property. As a result, the Master Developer identified and requested changes to the Agreement. Those changes requested by the Master Developer and supported by City staff and the Planning Commission are reflected in the proposed Amendment Number 1 to the Agreement (Exhibit 1). Two exhibits to the Agreement, specifically Exhibits C (Land Plan) and E (Infrastructure Plan), have also been revised. The two modified exhibits and the three other exhibits (Exhibits A and B – Legal Description; Exhibit D – Fiscal Analysis) originally approved with the Agreement are attached to Amendment Number 1. 

The proposed Amendment Number 1 to the Agreement must be approved by the Sparks City Council to take effect. It is attached in both “clean” (i.e., with changes accepted) and “track changes” formats (Exhibits 1 and 2, respectively). The “track changes” document identifies all proposed text changes. The substantive changes to the Agreement proposed in Amendment Number 1 are as follows (page numbers reference the “track changes” document):

+    Updates to reflect that certain actions proposed in the Agreement have been completed, including the processing and approval of Entitlement Requests submitted in conjunction with the Agreement (pp. 3, 13-14).

+    QK, LLC, replaces Jackling Aggregates, LLC, as Owner of the property, and 5 Ridges Development Company, Inc., replaces QK, LLC as Master Developer (pp. 1, 5).

+    A new recital (J) addresses the Master Developer’s proposed choice of the Sun Valley General Improvement District (SVGID), rather than the Truckee Meadows Water Authority (TMWA), to operate a municipal water system within the Property. Recital J states that the Master Developer understands and acknowledges that development of the Property is contingent upon approval by the City and SVGID of an agreement granting the SVGID rights for the use of the City’s streets and roads within the Property for water transmission facilities in exchange for certain consideration (i.e., fees) by SVGID (p. 2).

The Master Developer’s proposed utilization of the SVGID is also addressed in a new paragraph 3.12 (pp. 15-16). This change to the Agreement acknowledges that the Master Developer petitioned – and has obtained approval from the SVGID’s Board of Trustees – for annexation into the SVGID’s service area for the provision of municipal potable water only. The City, in turn, agrees to consider an agreement with the SVGID which would grant the SVGID a grant of rights for the use of the City’s streets and roads within the Property for water transmission facilities in exchange for the payment of fees by the SVGID. However, paragraph 3.12 does not constitute City pre-approval or authorization of an agreement with the SVGID; it further states that the City retains absolute discretion regarding the terms of an agreement with SVGID.

+    Section 3.1 (Permitted Uses and Density) is revised to clarify that single-family, duplexes, and townhouses are permitted residential uses (p. 8). However, should the Master Developer decide to pursue development of attached residences (i.e., duplexes and townhouses) within the portion of the site with a Comprehensive Plan designation of Intermediate Density Residential (IDR) and zoned SF-6, the land use designation and zoning must be changed for that part of the site. Section 3.1 has also been revised to explicitly add Wireless Communication Facilities as a permitted use subject to the use standards in Section 20.03.046 of the Sparks Municipal Code (SMC) (p. 8). Under SMC Title 20, Wireless Communication Facilities are permitted in all zoning districts subject to SMC 20.03.046.

+    Proposed changes to Section 3.2 (Required Infrastructure Improvements) include:

-     Revising 3.2(a) to clarify the requirement for the Master Developer to upgrade the sanitary sewer collection system. As revised, the capacity of the sanitary sewer collection system must be increased prior to any issuance of a certificate of occupancy for or final inspection of any residential or commercial unit in excess of 1,650 equivalent residential units (pp. 8-9).

-     Changing the timing for the required widening of Highland Ranch Parkway from Pyramid Highway to the entrance to the Project to four lanes. In the Agreement, this widening is must be completed prior to the issuance of any building permits for structures. In contrast, Amendment Number 1 would require this widening to be completed before issuance of any certificate of occupancy for or final inspection of any dwelling unit in excess of 650 dwelling units in the Project, or upon degradation below Level of Service (LOS) D of the segment of Highland Ranch Parkway between Pyramid Highway and the Project entrance, or upon degradation below LOS E of the intersection of Pyramid Highway and Highland Ranch Parkway, whichever first occurs (p. 9).

-      Allowing for possible development of the Project as a “dark skies” community, subject to the approval of standards by the City (p. 9).

-    Adding a requirement that the Master Developer provide the City a hydrology and hydraulic analysis that addresses offsite capacity and sediment transport improvements to the Highland Ranch Parkway and Pyramid Highway culvert crossings. Improvements identified in the analysis must be completed to the approval of the City Engineer prior to issuance of any building permits for structures (p. 10).

-     Modifying the timing requirement for completion of the secondary fire apparatus access (i.e., emergency access) road from prior to the final inspection or certificate of occupancy for the 200^th dwelling unit to prior to the first dwelling unit in the Project. This change includes requiring the Master Developer to obtain and provide to the City written approval from Washoe County to connect this proposed road to a Washoe County road prior to approval of the first tentative subdivision map for the Project (p. 10).

-     Changing the street providing primary access to the Project (from Highland Ranch Parkway) from a four-lane roadway to a two-lane roadway (p.10).

-     Adding a requirement for construction of a meandering, trail-style sidewalk at least five (5) feet in width on at least one side of the primary access street (p. 11).

-     Allowing exceptions to the requirement that all dwelling units and commercial structures for human occupancy be equipped with fire suppression systems if the Master Developer demonstrates, to the approval of the Fire Chief, that the structures are located within a four-minute travel time from a City of Sparks Fire Department station. The amendment is also revised to require the Master Developer to comply with all requirements of the International Wildland-Urban Interface Code in effect at the time of the particular development activity. (p. 11).

-     Adding a requirement that the Master Developer grant to the City, concurrently with approval of any final map, easements or other permissions acceptable for access, operation, and maintenance of any City-owned utility facilities located on private property (p. 11).

-     Adding a requirement that the Master Developer provide to the City, at Master Developer’s expense, plans for a municipal water system to be constructed to specifications equal to or exceeding those of TMWA. The water system must provide adequate water flow and pressure to meet the City’s Fire Department’s fire flow requirements. Completion of the water system must be completed prior to issuance of any building permits for structures (p. 12).

+    The proposed changes to Section 3.3 would allow the exclusion of slopes that are not naturally occurring and resulted from previous mining operations on the site to be excluded from the calculation of maximum disturbed area pursuant to SMC 20.04.011 (p. 12; Agreement Exhibit F – Slope Analysis).

Several of the proposed changes regarding the timing and requirements for roadways reflect the evolution of the Project’s infrastructure plan. At the time the Agreement was originally approved, the Master Developer had not yet identified the location for a secondary emergency access road. The changes to the infrastructure plan and related requirements are to a significant extent the result of the Master Developer having decided to seek approval of the Sun Valley General Improvement District, rather than TMWA, as the provider of municipal water for the Property and, in conjunction with this decision, identifying the location of the secondary emergency access road. The proposed road would provide access to the Property from the west, as reflected in Exhibits C and E1-E3, and allows for a two-lane, rather than a four-lane, primary access road from Highland Ranch Parkway.

Consistency with Comprehensive Plan

The purpose of bundling the Agreement with the annexation, Comprehensive Plan amendment, and rezoning requests was to provide the public, third-party reviewing agencies, City staff, the Planning Commission, and City Council with an understanding of the development proposed for the subject property at the time these requests were considered. The Agreement is also intended to satisfy the 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 those land use applications.

During their 2018 review, the Planning Commission found the Agreement 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 Agreement also obligates the Master Developer to increase the capacity of Highland Ranch Parkway, between Pyramid Highway and the entrance to the Project, and to construct improvements to the intersection of those two roadways necessary to maintain Level of Service (LOS) 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 also determined the Agreement supports a finding that the City can provide municipal services to the subject property concurrently with its development, in support of Policy CF1. This analysis previously enabled the Planning Commission and City Council to make certain findings, including those regarding concurrency and fiscal impacts, in support of the annexation, Comprehensive Plan land use amendment, and rezoning requests that were reviewed concurrently with the Agreement in 2018.

On November 21, 2019 the Planning Commission reviewed Amendment Number 1 and determined that it continues to adequately protect the City’s interests in the concurrency of development while not adversely impacting the consistency of the Agreement with the Comprehensive Plan. The Planning Commission therefore recommends that the City Council approve the Development Agreement, Amendment Number 1.

1. Council can adopt Bill 2769 for approval of the Development Agreement, Amendment Number 1, as presented.
2. Council can modify the Development Agreement, Amendment Number 1, subject to the consent of QK, LLC and 5 Ridges Development Company, Inc.
3. Council can reject the Development Agreement, Amendment Number 1.

I move to adopt Bill No. 2769, an ordinance for approval of the Development Agreement, Amendment Number 1, pursuant to NRS 278.0201, between the City of Sparks, QK, LLC, and 5 Ridges Development Company, Inc., providing for planning and development of a site 386.87 acres in size located at 555 Highland Ranch Parkway, Sparks, Nevada.