In July of 2018, the City of Sparks entered into a development agreement (the “Agreement”) for the development of a 386.87-acre property located at 555 Highland Ranch Parkway (Exhibit 1 – Vicinity Map).  In conjunction with the Agreement, the City approved annexation, Comprehensive Plan land use amendment, and rezoning requests for this site.  As the subject property was formerly the site of an aggregate mining operation, the 2018 development proposal was referred to as the Quarry.

In February of 2020, the City Council approved Amendment Number 1 to the Agreement. Modifications to the Agreement resulted from the Master Developer’s further analysis of the site and the land and infrastructure plans. Substantive changes approved in that Amendment addressed property ownership changes, clarified permitted residential uses, provided an explicit exclusion of previously disturbed slopes from the calculation of maximum disturbed area pursuant to SMC 20.04.011, and altered the timing and scope of required infrastructure improvements. The name of the project also changed to Five Ridges.

Pursuant to the Agreement as currently approved, a minimum of 1,200 and a maximum of 1,800 residential units are permitted. Single family, duplex, and townhome uses are identified as permitted residential uses. Commercial or multi-family development may occur in the C2 zoning district currently located adjacent to Highland Ranch Parkway. Entitlement requests to allow for development of duplex or townhome uses do not require amendment of the Agreement, provided the total number of dwelling units complies with the Agreement. 

To pursue development of duplex and townhome units, this request from 5 Ridges Development Company, Inc. seeks to change the Comprehensive Plan land use designation for approximately 13.81 acres of Intermediate Density Residential (IDR) and approximately 15.00 acres of Commercial (C) to 28.81 acres of Multi-Family Residential (MF14) (Exhibit 2 – Existing and Proposed Land Use). This Comprehensive Plan amendment request is coming forward for City Council consideration in conjunction with a related request to rezone approximately 13.81 acres of SF-6 (Single-Family Residential, 6,000 sq. foot lots) and 15.00 acres of C2 (General Commercial) to 28.81 acres MF-2 (Multi-Family Residential).

On July 2, 2020, the Sparks Planning Commission voted to forward a recommendation of approval to the City Council for the rezoning request and approved the Comprehensive Plan amendment (Exhibit 3 - Planning Commission Report of Action).

On July 23, 2020, the Regional Planning Commission (RPC) held a public hearing and reviewed the requested Comprehensive Plan amendment. The RPC determined that the Comprehensive Plan amendment conforms with the Truckee Meadows Regional Plan.

The greater Five Ridges project site currently consists of one parcel approximately 386.87 acres in size (Exhibit 1 – Vicinity Map). The Comprehensive Plan Land Use Map designates approximately 371.87 acres as Intermediate Density Residential (IDR) and the remaining 15.00 acres as Commercial (C) (Exhibit 2 – Existing and Proposed Land Use). The applicant is requesting the following Comprehensive Plan land use designation changes:

• A change from Commercial (C) to Multi-Family Residential (MF14) for 15.00 acres located adjacent to the north side of Highland Ranch Parkway; and
• A change from Intermediate Density Residential (IDR) to Multi-Family Residential (MF14) for 13.81 acres generally located in the center of the Five Ridges project site.

The acreage and percentage of existing and proposed Comprehensive Plan land use designations within the Five Ridges project site are shown in the table below.

Comprehensive Plan Amendment Findings

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

Truckee Meadows Regional Plan policies for land use and intensity designations that are relevant to this request include:

RF3 – Density Requirements and Nonresidential Standards: The Regional Plan requires the residential densities and nonresidential standards within the Regional Land Designations, as shown in Table 3.1. The densities listed in Table 3.1 apply to proposed master plan amendments and projects of regional significance that are subject to conformance review.

NR 3 – Development Constraints Area: The Regional Plan defines the Development Constraints Area (DCA) as an overlay upon the Truckee Meadows Service Area and the Rural Area…The DCA consists of playas, jurisdictional waters/wetlands in accordance with Section 404 of the Clean Water Act, designated FEMA floodway areas within the floodplain zone AE, significant water bodies, natural slopes over 30%, publicly-owned open space, and properties that are deed restricted to prevent development…allowed land uses are limited to communication facilities, recreational facilities, parks and open space, utilities, agriculture, forestry, mining, and transportation necessary to service development…Other uses may encroach into the DCA in isolated areas if the encroachments enhance the overall project design and a 2:1 ratio of non-constrained area is preserved as open space for every constrained area that is developed…

Pursuant to the 2019 Truckee Meadows Regional Plan, the Five Ridges project site has a Tier 2 Land designation and is located within the Truckee Meadows Service Area (TMSA). Properties located in the Tier 2 Land designation are characterized by suburban development that is less dense than development in the Mixed Use Core or Tier 1 Land designations. Residential density for Tier 2 Land is limited to 30 dwelling units per acre, with allowances for higher density nodes that meet certain criteria. The proposed Multi-Family Residential (MF14) Comprehensive Plan land use designation allows for a density range of ten to less than 14 dwelling units per acre. This density range does not exceed the maximum allowed density of 30 dwelling units per acre for Tier 2 Land and the proposed Comprehensive Plan land use amendment complies with RF3.

The 2019 Truckee Meadows Regional Plan Development Constraints Map shows portions of the 28.81 acres proposed to change to the Multi-Family Residential (MF14) land use designation as development constrained due to the presence of slopes 30 percent or greater. The Sparks Comprehensive Plan includes policies discussed in Finding CP2 below that restrict disturbance and development of areas characterized by steep slopes and unique geological features. Hillside development is further regulated by SMC 20.04.011, which not only reduces the amount of land area that may be disturbed for slopes between 15 and 30 percent as slope increases, but also requires a 2:1 ratio of non-constrained area be preserved as open space for all areas with slopes over 30 percent that are developed. All future development within the Five Ridges project site must conform with these regulations as outlined in the Agreement. Applying these regulations means that the Comprehensive Plan land use amendment complies with Policy NR3.  

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 request include:

Policy MG4:        Maintain an adequate supply of land for employment generating uses. 

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 CF8:          Foster neighborhood diversity and design by permitting varied lot sizes, building materials, building styles and color.

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

Policy H2:            Promote a variety of housing types throughout Sparks, including within mixed-use settings, to expand the choices available to meet the financial and lifestyle needs of a diverse population and workforce.

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 development to preserve and protect significant natural amenities, unique features (e.g., rock outcroppings and drainageways) and other natural features.

The proposed amendment would change the land use designation for approximately 13.81 acres of Intermediate Density Residential (IDR) and 15.00 acres of Commercial (C) to 28.81 acres of Multi-Family Residential (MF14). With a density range between ten and less than 14 dwelling units per acre, the Multi-Family Residential (MF14) land use designation supports high-density single-family and low-density multifamily housing products such as townhomes and duplexes, commonly referred to as “missing middle” housing. These housing types offer alternative options to the detached single-family home and can provide ownership opportunities at lower price points. As proposed, the Comprehensive Plan land use amendment supports Goal H2 and Policies CF8 and H2 that encourage housing type diversity throughout Sparks.

Re-designating approximately 15.00 acres of Commercial to Multi-Family Residential (MF14) as proposed would remove the opportunity to establish a wide variety of commercial uses within the greater Five Ridges project site.  However, commercial use opportunities exist in close proximity to the site. Commercial designated lands are located on the south side of Highland Ranch Parkway and within the Kiley Ranch North planned development on both the west and east sides of Pyramid Way. In addition, the Long-Term Fiscal Health Analysis prepared for the City of Sparks in 2019 shows the supply of acreage supporting retail uses exceeds forecasted demand. Over the twenty-year period from 2018 to 2038, the demand for retail land is estimated to be 114 acres.  At the time the analysis was prepared the supply of land available for retail uses totaled 379 acres. For these reasons, the proposed amendment would not adversely impact the supply of land for commercial uses and complies with Policy MG4.

Review of Comprehensive Plan amendments, under Policy MG5 and the Agreement, requires a fiscal impact analysis (FIA). The applicant submitted an updated FIA dated April 2020 (Exhibit 4 – Fiscal Impact Analysis Letter). This FIA is for this request as well as annexation, development agreement, Comprehensive Plan land use amendment, and rezoning requests associated with Assessor Parcel Number (APN) 508-020-01 that will be considered under a separate agenda item at a future City Council meeting.

The updated FIA assumes 1,220 residential units and no commercial space for an expanded site totaling 421.58 acres in size. The previous FIA dated June 2018 assumed 1,223 residential units and 141,570 square feet of general commercial space over 386.87 acres. Due to the removal of commercial land uses and expansion of the site area, the updated FIA increases the area of roadways dedicated to the City of Sparks from 1.1 million to 1.3 million square feet. The increased roadway area of 200,000 square feet equates to approximately 4.6 acres. Combining the net positive General Fund amount of $20.2 million and the net negative Road Fund amount of $19.5 million produces a projected positive fiscal impact of approximately $700,000 over the 20-year analysis period.  The updated FIA assumes that any streets, gutters, curbs and sidewalks (with the exception of the second fire apparatus access road) will be publicly owned.

The Agreement dictates the minimum and maximum number of units permitted in the greater Five Ridges development and specifies the timing and scope of improvements needed to provide City services at acceptable service levels to future units. To serve between 1,200 and 1,800 total units, the Agreement requires:

• Improvements to Highland Ranch Parkway and the intersection of Highland Ranch Parkway with Pyramid Way when certain level of service (LOS) and/or residential unit counts are met;
• Construction of a secondary fire apparatus access road prior to the issuance of a certificate of occupancy for and/or final inspection of any dwelling unit;
• Equipment of all dwelling units and commercial structures intended for or used for human occupancy with fire suppression systems;
• Improvements to upsize the sanitary sewer collection system when certain equivalent residential unit (ERU) thresholds are met;
• Construction of all flood control and drainage improvements, whether onsite or offsite; and
• Construction of all water transmission facilities and improvements, whether onsite or offsite, to specifications equal to or exceeding those of TMWA.

The applicant provided an updated trip generation letter dated April 2020 based on 1,062 detached single-family units and 158 townhomes (1,220 total units) (Exhibit 5 – Trip Generation Letter). Compared to the previous 2017 traffic study that assumed 1,223 detached single family units and 13 acres for mini-warehouse use, average daily trips decrease by 679 trips, AM peak hour trips decrease by 67 trips, and PM peak hour trips increase by 24 trips. The April 2020 analysis finds that these trips will result in traffic impacts less than or similar to the trips analyzed in the 2017 traffic study. City staff reviewed the updated trip generation letter and concur with this conclusion.

The applicant also provided sewer and water studies analyzing development of the Five Ridges project site with solely residential development. The sewer study finds existing sanitary sewer mains, trunk mains and interceptors have available capacity to serve the 1,241 residential units analyzed (Exhibit 6 – Master Sewer Study).  Should development exceed 1,650 equivalent residential units (ERUs), Section 3.2 of the Agreement requires existing sanitary sewer collection system capacity upgrades. The Agreement identifies the Sun Valley General Improvement District (SVGID) as the anticipated purveyor of municipal water for the Five Ridges project. The preliminary water service study assesses the ability of SVGID to supply potable water to the Five Ridges property and estimates associated infrastructure costs (Exhibit 7 – Preliminary Water Service Planning Report). Section 3.2 of the Agreement requires the Master Developer to construct all water transmission facilities and improvements (both onsite and offsite) to specifications that meet or exceed those of the Truckee Meadows Water Authority (TMWA). With the Agreement already in place, it is staff’s view that the requested Comprehensive Plan land use amendment complies with Policies MG5 and CF1.

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. Section 3.3 of the Agreement requires compliance with this section of the zoning code for naturally occurring slopes. In addition, the Agreement limits the total area to be cleared, graded or disturbed to 267 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., a homeowner’s association).

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

As proposed, the Comprehensive Plan land use designation for approximately 15.00 acres of Commercial (C) located north of Highland Ranch Parkway and 13.81 acres of Intermediate Density Residential (IDR) generally located in the center of the greater Five Ridges project site would change to 28.81 acres of Multi-Family Residential (MF14) (Exhibit 2 – Existing and Proposed Land Use). Land uses and zoning surrounding each portion of the amendment site are summarized in the following table:

Changing the Comprehensive Plan land use designation from Commercial (C) to Multi-Family Residential (MF14) for the 15.00 acres located to the north of Highland Ranch Parkway is compatible with surrounding land use designations. As proposed, the MF-14 land use designation would serve as a transition between Commercial designated lands located to the south and east and IDR designated lands located to the north and west.

Changing the Comprehensive Plan land use designation from Intermediate Density Residential (IDR) to Multi-Family Residential (MF14) for the 13.81 acres generally located within the center of the greater Five Ridges project site is compatible with the surrounding IDR land use designation. With a density range of 6 to less than10 dwelling units per acre, the IDR land use supports the highest density of single-family uses. While the MF14 land use designation supports more varied housing types, the 10 to less than14 dwelling units per acre density range is only moderately denser and is appropriate adjacent to the IDR land use designation.

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 June 19, 2020. The Planning Commission and City Council meetings function as public hearings for this matter as required by 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 June 8, 2020 (Exhibit 8 – Certificate of Verification for Neighborhood Meeting). Nine people attended the meeting. The applicant’s representative presented the Comprehensive Plan land use amendment. Those in attendance expressed concern about development of the greater Five Ridges project area including development of homes on ridgelines in a manner that will be visible from properties to the north, traffic impacts, and impacts to groundwater due to municipal wells.

1. The City Council can certify the Comprehensive Plan amendment to change the Comprehensive Plan land use designation from approximately 13.81 acres of Intermediate Density Residential (IDR) and approximately 15.00 acres of Commercial (C) to 28.81 acres of Multi-Family Residential (MF14).
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 Comprehensive Plan land use designation for approximately 13.81 acres of Intermediate Density Residential (IDR) and approximately 15.00 acres of Commercial (C) to 28.81 acres of Multi-Family Residential (MF14) on a site 28.81 acres in size within a larger parcel 386.87 acres in size generally located at 555 Highland Ranch Parkway, Sparks, Nevada.