In June of 2018, the City Council entered into a development agreement (the “Agreement”) for a 386.87-acre property located at 555 Highland Ranch Parkway.  In conjunction with the Agreement, the City Council approved annexation, Comprehensive Plan land use amendment, and rezoning requests for the 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 followed the Master Developer’s further analysis of the site and the land and infrastructure plans. Substantive changes approved in Amendment Number 1 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 changed to Five Ridges.

Pursuant to the approved the Agreement, a minimum of 1,200 and a maximum of 1,800 residential units may be developed on the 5 Ridges site. Single family, duplex and townhome uses are identified as permitted residential uses.  Commercial or multi-family development was permitted in the C2 (Commercial) zoning district located adjacent to Highland Ranch Parkway. At least 100 acres of open space was required.

Tentative map and Conditional Use Permit (CUP) permit requests within the Five Ridges project site were considered by the Planning Commission and City Council in April and May of 2020, respectively. On May 26, 2020, the City Council upheld the Planning Commission’s decision to approve a CUP for development on slopes, hilltops, and ridges applicable to a 138.13-acre portion of the Five Ridges project site. In conjunction with the CUP, the City Council also approved a tentative map for a 460-lot single-family subdivision on an 88.83-acre portion of the site.

On July 2, 2020, the Sparks Planning Commission voted to forward recommendations of approval to the City Council for the rezoning, annexation and development agreement requests and approved the Comprehensive Plan amendment. The Planning Commission also forwarded a recommendation of support to City Council for sponsorship of a Regional Plan amendment to re-designate the site from Rural Area to Tier 2 Land and amend the boundaries of the Truckee Meadows Service Area (TMSA) and City of Sparks Sphere of Influence (SOI) to include the site (Exhibit 5 - Planning Commission Report of Action).

On July 27, 2020, the City Council sponsored the Regional Plan amendment to re-designate the 34.71-site from Rural Area to Tier 2 Land and amend the boundaries of the TMSA and City of Sparks SOI to include the site.

On September 24, 2020, the Regional Planning Commission (RPC) held public hearings to review the Regional Plan Amendment sponsored by City Council and the Comprehensive Plan amendment requested by the applicant. The RPC voted to forward recommendation of approval to the Regional Planning Governing Board for the Regional Plan Amendment and determined that the Comprehensive Plan amendment conforms with the Truckee Meadows Regional Plan. On October 8, 2020, the Regional Planning Governing Board (RPGB) held a public hearing and adopted the Regional Plan Amendment.

With the Regional Plan amendment and conformance review processes complete, the applicant is now seeking City Council action on the development agreement amendment, annexation, Comprehensive Plan land use amendment, and rezoning requests.

This request is a petition to annex 386.87 acres into the City of Sparks. As discussed in the Background section, this request is coming forward for City Council consideration in conjunction with three related requests for a development agreement, a Comprehensive Plan land use amendment, and rezoning. Collectively, these requests would allow the applicant to incorporate the 34.71-acre subject parcel into the greater 5 Ridges project site (Exhibit 1 – Vicinity Map).

The purpose of bundling the development agreement amendment with the annexation application, as well as the Comprehensive Plan amendment and rezoning 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 development agreement amendment also specifies how municipal services will be adequately provided to the subject property concurrent with its development. For these reasons, the development agreement amendment buttresses several of the Annexation Findings that follow.

Annexation Findings

Finding A1.  The request conforms to the requirements of NRS 268.

The City’s Seven Year Annexation Program has expired. However, NRS 268.670 allows the City Council to consider annexing property without an annexation program if it is contiguous to City limits and annexation is requested by 100 percent of the property owners (i.e., voluntary annexation). Because the subject property is contiguous to City limits and annexation is being requested by the only property owner, the City may consider the annexation.

Finding A2. The request conforms to the findings established for annexation applications pursuant to the Sparks Municipal Code Chapter 20.05.05.

Sparks Municipal Code 20.05.05 requires annexation requests to be reviewed for the following considerations:

1. Location of the property to be considered for annexation:

The property being considered for annexation is contiguous to the City limits on one side (Exhibit 2 – Annexation Map).

The logical extension of City limits:

The eastern side of the property being considered for annexation is contiguous to City limits. Utilities would be extended through the existing Five Ridges project site consistent with the Agreement.  

3. The need for expansion to accommodate planned regional growth:

The 386.87-acre Five Ridges project site was annexed to the City of Sparks in 2018 to accommodate future housing needs.  Annexation of the 34.71-acre subject site would support modifications to the Land Plan (Exhibit 3 – Land Plan) that result in improved circulation and promote development of the greater Five Ridges project site. 

4. The location of existing and planned water and sewer service:

Water service will be provided by the Sun Valley General Improvement District (SVGID). The developer will have to dedicate adequate water rights to serve the development with the final subdivision map(s).

Sanitary sewer will be provided by the City of Sparks. Sanitary sewer flows will be conveyed to the Truckee Meadows Water Reclamation Facility via the Northwest Sanitary Sewer Interceptor located to the east of the project.  Pursuant to the Agreement, the developer is responsible for the construction of all new sanitary sewer lines. The developer is also responsible for any necessary upgrades to existing sewer lines prior to the certificate of occupancy for or final inspection of any residential or commercial unit in excess of 1,650 equivalent residential units.

5. Community goals that would be met by the proposed annexation:

As proposed, annexation of the subject property would expand the Five Ridges project area by 34.71 acres. The Agreement still provides for development of 1,200 to 1,800 residential units of various types and non-residential uses in accordance with adopted zoning districts. The

Agreement requires that a minimum of 100 acres of the project site remain open space.

The Comprehensive Plan goals and policies that would be met by the proposed annexation, given the proposed use of the site, are:

Policy MG7: When reviewing annexation requests, the City will consider whether the proposed annexation: a) is included in the City’s Seven Year Annexation Program; b) is needed for the City’s growth within seven years; c) represents a logical extension of the city limits; d) allows for efficient and cost-effective provision of public services and capital facilities; and e) would be fiscally positive for a period of at least 20 years. When reviewing land use entitlements (e.g. master plan amendments, zone changes, tentative maps, conditional use permits) for land annexed within the previous 10-year period, the City may require an updated fiscal analysis if the proposed development materially varies from the development contemplated in the fiscal analysis prepared for the annexation.

Items A – d are discussed above. Item e is addressed in paragraph G below. 

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

Policy CF1:  When reviewing new development, the City will not approve an application unless the City services can be provided at acceptable service levels.

Annexation of the subject property and approval of the Comprehensive Plan land use amendment and rezoning requests would support modifications to the Land Plan (Exhibit 3 – Land Plan) that result in improved circulation and promote development of the greater Five Ridges project. Supplemental materials provided by the applicant indicate approximately 19 single-family residences will be constructed on the site proposed for annexation. While this is a small number of homes, annexation of the site will nevertheless support development of the Five Ridges project consistent with the Agreement, advancing Goal H2.

As a provision of the Agreement, the applicant is petitioning to be included in Impact Fee Service Area #1 (IFSA#1). If the subject property is included in IFSA#1, development of the site will contribute fees for the construction of a fire station to serve the area and storm drain, sewer, and parks improvements. In addition, Section 3.2 of the Agreement requires the developer to (1) increase the capacity of Highland Ranch Parkway between Pyramid Way and the entrance to the larger Five Ridges property, and (2) construct improvements to the intersection of those two roadways. Provided Amendment Number 2 to the Agreement is approved, it is staff’s view that the requested annexation complies with Policy CF1.

6. The efficient and cost-effective provision of service areas and capital facilities:

This item is discussed in the preceding paragraph. The subject property would be served by sanitary sewer facilities extended from the east side of Pyramid Way. At 1,650 equivalent residential units, the Agreement requires the developer to add capacity to these existing facilities. Fire service would be provided from Fire Station Number 4 or through the automatic aid agreement with the Truckee Meadows Fire Protection District.

7. Fiscal analysis regarding the proposed annexation:

An updated Fiscal Impact Analysis (FIA) was provided to support this annexation request (Exhibit 4 - Fiscal Impact Analysis Letter). The updated FIA assumes 1,200 residential units and no commercial space will be constructed on the expanded Five Ridges project site, which would total 421.58 acres if the annexation and companion requests are approved. The previous FIA dated June 2018 assumed 1,223 residential units and 141,570 square feet of general commercial space on 386.87 acres. Due to the removal of commercial space and expansion of the project area, the updated FIA increases the 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 net 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.

Information provided by the applicant indicates the proposed annexation area totaling 34.71 acres would be developed with 19 residential units and 709 linear feet of public roadway, resulting in approximately 26,942 square feet of additional roads. The roads in the area proposed for annexation represent 1.3% of the 200,000 square foot roadway area increase in the updated FIA. 

The Agreement requires a minimum of 1,200 dwelling units be constructed. If the annexation, development agreement, Comprehensive Plan land use amendment, and rezoning requests associated with APN 508-020-01 are not approved, 1,200 dwelling units would be developed within the existing 386.87-acre Five Ridges project site. Noting this, the updated FIA estimates the fiscal impact associated with the minimum amount of development allowed per the Agreement and an expanded roadway network.

8. Whether Washoe County has adopted a Community Management Plan for the proposed annexation area:

The property proposed for annexation is currently located within the boundaries of the Sun Valley Area Plan, which is an element of the Washoe County Master Plan. The City has not received any comments from Washoe County.   

1. Whether the annexation creates any islands:

Annexation of the site will not create an island because the eastern property line is contiguous to the City’s current corporate boundary.

10. Any other factors concerning the proposed annexation deemed appropriate for consideration by the City Council:

The Regional Planning Governing Board approved a Regional Plan amendment to include the property proposed for annexation in the City’s SOI on October 8, 2020.

Finding A3. The property requested to be annexed conforms to the Comprehensive Plan as it is within the City’s Sphere of Influence and Seven Year Annexation Program.

The property is currently located in the City’s SOI. The City’s Annexation Program expired in 2015.

However, NRS 268.670 allows the City Council to consider annexing property without an annexation program if the property is contiguous to the City limits and annexation is requested by 100 percent of the property owners. Both requirements are satisfied in this case.

Finding A4. Public notice was given and a public hearing held per the requirements of the Sparks Municipal Code.

Public notice was given as required by the Sparks Municipal Code and Nevada Revised Statutes. The Planning Commission and City Council meetings function as the public hearings for this item. The proposed annexation was noticed, at a minimum, to all owners of property within 750 feet of the subject properties. Public notice was published in the Reno Gazette-Journal on June 19, 2020. Letters were mailed to 60 property owners.

1. Council can adopt Bill 2779 to annex the property generally located at 555 Highland Ranch Parkway.
2. Council could remand the annexation request back to Planning Commission with direction.
3. Council could deny the annexation petition.

I move, based on Findings A1 through A4 as set forth in the staff report, to adopt Bill 2779 to annex into the City of Sparks real property approximately 34.71 acres in size generally located at 555 Highland Ranch Parkway, Washoe County, Nevada.