2013 2:00:00 PM

Monday, February 25, 2013 2:00 PM
Sparks Council Chambers, 745 4th Street, Sparks, NV

Planning and Zoning Public Hearings and Action Items: 8.2

Title: Public Hearing, Second Reading, discussion and possible approval of Bill No. 2654 to adopt Ordinance 2473 to approve a Development Agreement between the City of Sparks and KM2 Development, Inc. (as “Master Developer”) and Rising Tides LLC (as “Owner”) for a portion of the Kiley Ranch North Project and other matters properly relating thereto.

Petitioner/Presenter: Community Services, Rising Tides LLC and KM2 Development, Inc./Armando Ornelas, City Planner

Recommendation: Approval

Financial Impact: None

Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.

Agenda Item Brief: A separate agenda item requests that the Sparks City Council cancel the 2004 development agreement between the City and Kiley Ranch Communities, the former owner and master developer for the Kiley Ranch North Project. Kiley Ranch Communities’ bankruptcy put them in default of the Development Agreement and their subsequent loss of ownership of the property negated the need for the 2004 agreement. This proposed ordinance provides for approval of a new Development Agreement with KM2 Development, Inc. (as Master Developer) and Rising Tides LLC (as Owner), which acquired and control a portion of the Kiley Ranch North property formerly owned by Kiley Ranch Communities. The proposed Development Agreement applies only to those portions of Kiley Ranch North presently under the legal or equitable control or ownership of Rising Tides LLC. Like its predecessor agreement, the Development Agreement is necessary to allow for the continued phasing of final planned development handbooks for the Kiley Ranch North.

Background: In 2004, the City of Sparks entered into an agreement for development of approximately 808 acres of land of the Kiley family ranch. The City also granted tentative approval of a planned development handbook for Kiley Ranch North that year. In 2010, Kiley Ranch Communities filed a voluntary petition for reorganization relief under Chapter 11 of the United States Bankruptcy Code. Kiley Ranch Communities’ bankruptcy put them in default of the Development Agreement and their subsequent loss of control of the property negated Kiley Ranch Communities’ need for the 2004 agreement. A separate agenda item requests that the Sparks City Council cancel the 2004 Development Agreement. This proposed ordinance is for approval of a new Development Agreement with KM2 Development, Inc. (as Master Developer) and Rising Tides LLC (as Owner), which acquired and control a portion of the Kiley Ranch North property formerly owned by Kiley Ranch Communities. This Development Agreement applies only to those portions of Kiley Ranch North presently under the legal or equitable control or ownership of Rising Tides LLC.

Analysis: Like the 2004 agreement, this proposed Development Agreement permits the phased development of Kiley Ranch North. In particular, it allows for final handbooks to be approved beyond the one year period that would otherwise apply per Nevada law. A specific basis for the City entering into the agreement is to assure a planned community that includes a fiscally sound density and mixture of residential products, business park facilities, common area, open space and the public facilities contemplated by the Tentatively Approved Handbook for Kiley Ranch North. For the owners and master developer, the agreement is intended to assure a degree of certainty for the duration of the build out of the project. The "certainty" granted to the master developer and owner is specified in Article IV (Law and Procedures Governing Project) and is based on the provisions of the Tentatively Approved Handbook for Kiley Ranch North. Most signficantly, Article IV limits the City's ability to unilaterally reduce the number of permitted residential units or the density or intensity of development, to change land use designations, or to impose additional permitting or other regulatory requirements on the property covered by the proposed agreement. The City, may, however, apply current codes (building, etc.) and fees to the project.

Alternatives: The City Council can choose to not approve the new development agreement, modify the terms of the agreement (subject to the concurrence of the other parties) or provide alternative direction to staff regarding the proposed agreement.

Recommended Motion: I move for approval of Bill No. 2654 to adopt Ordinance 2473.

Attached Files:

Exhibit A to Dev Agreement w Rising Tides & KM2.pdf

ExhibitB to Development Agreement w Rising Tides & KM2.pdf

Rising Tides & KM2 Dev Agreement for Kiley North 2-13.pdf

Ordinance for new Kiley North Dev Agreement 2-25-13.pdf

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