Unshackled : City attorney says linking Renaissance, SouthPass development projects ‘not fair’
Posted on Tuesday, September 2, 2008
A decision about South-Pass should not be linked to the Renaissance Tower, another project by the same developers, according to the Fayetteville city attorney.
Some residents and City Council members have questioned whether the city should become involved in another project with developers John Nock and Richard Alexander because the Renaissance Tower is still not built. The hotel was originally due to be open at the corner of Mountain Street and College Avenue in 2007.
"There's nothing in the (Unified Development ) code that I'm aware of that says anything about if you have a development that did well, then you get a break on your new development or if you had a development that didn't go well, then you get punished for your new development," City Attorney Kit Williams said.
In upcoming weeks, the Fayetteville City Council will consider whether to approve the annexation and zoning for SouthPass, a development that is expected to bring more than 4, 000 residential units, churches, businesses and possibly schools, to about 900 acres near Interstate 540 and Cato Springs Road.
In 2004, the council unanimously agreed to enter into a partnership with the developers. The council approved the development of at least 800 acres on the site based on the city's "desires to obtain a 200-acre community park for its citizens and tourists. " Part of that agreement states that the developers will deed a 200-acre parcel to the city for the park.
Williams said last week that it would not be fair or proper for the council to consider other development by or the financial resources of the developers when considering SouthPass or any other development.
"I think each development must stand on its own. Does it meet our code ? "Williams said. He said he also doesn't think that the council can try to delve into the financial resources of the developers. "We've never done that," he said. According to the city attorney, there is nothing in the Unified Development Code that allows a development to be linked to an earlier development. Renaissance While the Renaissance Tower did not meet its originally expected opening date, developers have paid almost $ 300, 000 to the city in liquidated damages. The last of 12 payments is due this month. Both Nock and Alexander said last week they continue to be committed to finishing the project. Alexander noted, too, that they are within current deadlines for the building because less than a year ago, the City Council allowed more time for construction of the hotel when it gave developers until 2010 to obtain all the necessary building permits. Asked if the city can trust him and his partner to finish SouthPass since Renaissance is not done, Alexander answered," We paid full, fairmarket value for the land. We paid in excess of the appraised fair-market value of the land and in addition to that have paid another $ 300, 000. "The city's net, net, net, on that project, approximately $ 400, 000 net. The city doesn't have a dime of its own money in it. "Alexander added that other projects by Nock and Alexander, such as rejuvenating the former public library building so it generates tax revenue and remodeling buildings around the Square and in the Dickson Street area, have helped the city recover its initial investment in the Renaissance site, where the former Mountain Inn stood. "We have done nothing in this town except complete projects and turn abandoned properties into tax-generating businesses, literally hundreds of them," said Alexander.
Cost share Unlike other projects or financial resources, cost-share arrangements for SouthPass can, and will be, considered by the council. "If there are necessary cost shares, they certainly can look at if we [the city ] can afford that cost share," Williams said. He said cost share arrangements are not unusual. An example is the cost-share decision regarding improving Zion Road into Veterans Park. Williams and Jeremy Pate, Fayetteville's director of current planning, said the costshare agreement for SouthPass is a cost savings for the city. "Obviously, you don't get anything for nothing. If we have a park, we have to have a road to the park. We have to have water and sewer for park patrons," Williams said. "If the city were developing the park by itself, without a private-public partnership, we would be responsible for development of the park, which we're doing here, but we'd also be responsible for any road construction, water and sewer construction at 100 percent of the cost," Pate said. SouthPass developers will be sharing the cost of those expenses through the costshare agreement. "That makes it a lot cheaper," said Williams. "It helps us both. " "I hope they [City Council members ] don't lose sight of the fact that this is probably the only opportunity we're going to have, as a city, to have the kind of park that is being proposed," he said. Alexander said it is important to realize that the park and an additional 200-plus acres of green space will take up more than 50 percent of the site. And it is planned and developed green space, not raw land in the country. Baseball, soccer and softball fields and Frisbee and dog parks are among the plans for the area, which city Parks and Recreation Division staff hope will become a site for regional tournaments. The proposed 200-acre community park was key to the public-private partnership that led to SouthPass plans. "That site, that project has always been driven by the parks department and selection by the city of that site for the park. The project was an afterthought to that process. Development has always been seen as a means to deliver to the city the gift of 200 acres of regional park," Alexander said. The city began the process with a Request for Proposal. The partnership agreement notes that the city sought proposals from developers to facilitate the acquisition and development of the park because the city did not have the resources for the project. "We picked this property, and we picked this development team," Pate said. "It was chosen way before we were ever involved, so the access for parks and development had been known to the city for years," Nock said. Williams said it would have cost the city many millions of dollars to buy the park land. Compliance with planning code SouthPass is proposed as a planned zoning district, which can be described as customized zoning. In the case of SouthPass, that zoning includes a variety of land uses involving a variety of home and business sizes.
With a 200-acre community park and more than 200 acres for green space, tree preservation, trails and park land, the actual area devoted to buildings is about 360 acres.
The Planning Commission has been considering the planned zoning district at recent meetings but has not forwarded it to the City Council.
The council tabled consideration of the annexation for SouthPass until both the annexation and planned zoning district can be brought forward at the same time. The cost-share arrangement will also likely be considered then, Pate said.
The question is if the project meets city code, according to Williams.
To determine that, planning commissioners and City Council members have to go back to the policies and procedures of the Unified Development Code and City Plan 2025, Pate said.
"Fortunately for us, this is a development pattern we [planning staff ] can support. It may be a different scenario if it were just another big strip mall and a bunch of subdivisions," he said.
He said it meets the city code and fits the 2025 Plan, particularly as it is a plan for a complete community.
"It's one of the best examples of how we would like development to proceed," Williams said. "As Jeremy (Pate ) was saying we don't want subdivision after subdivision all looking the same. We would rather see a major development like this, well planned out, where you have commercial, residential, office, all working together, and here we, of course, have the community park, which is the gem of the whole thing."
Pate said the city has received questions about whether SouthPass is sprawl.
"This is'greenfield' development, there's no question about that," said Pate.
Greenfield development refers to development on semirural property, often on the edge of a town or city as compared to "infill"development within the city boundaries.
Pate said while the 2025 Plan encourages infill development it does not say that all greenfield development should stop.
Rather, the plan says that when it does occur, it should follow a certain format.
"In staff's opinion, this is exactly how we set that procedure out. We want complete, compact, connected developments that have city services, support services, commercial, office, job opportunities, a wide range of housing," he said.
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