Leesburg planning staff recommended approval on Thursday of an annexation and small-scale comprehensive plan amendment that would bring 7.53 acres at Royal Highlands into the city and rezone the site for a 48-unit townhouse project, but the Planning and Zoning Commission split 3–3 on the recommendation, sending the matter to the City Commission for final action. The proposal would change the property’s future land use from Lake County urban low density to City of Leesburg low density residential and rezone the parcel from Lake County PUD to Leesburg SPUD, the staff presentation said.

The project matters because the site currently carries Lake County entitlements that allow about 49,500 square feet of commercial development; the applicant and staff said replacing that entitlement with 48 attached single-family units (townhouses) would lower vehicle trips and change the character of possible future uses on the parcel. "Changing the permitted uses from just under 50,000 square feet of commercial uses to 48 townhomes would significantly lower the amount of traffic coming in and out of this area," Dan Miller, planning director for the City of Leesburg, told the commission as he read staff findings.

Staff told the commission the application meets the statutory test for a small-scale comprehensive plan amendment under Chapter 163.3187, Florida Statutes, and is consistent with the city’s Future Land Use Element. Deputy director Candy Harper presented maps showing the site west of U.S. Highway 27, south of Royal Highlands Boulevard and south of the Florida Turnpike, and noted the parcel contains wetlands that will require mitigation.

Tom Daley of Daley Design Group, speaking for property owner GPK, described the proposal as a lower‑intensity alternative to the county commercial entitlement. He said the plan preserves an existing berm and retention pond, saves several live oaks evaluated by an arborist, provides a minimum unit width of 20 feet and a minimum living area of 1,100 square feet, limits building height to two stories and requires two off‑street parking spaces per unit. Daley said the project would also deliver at least 18,000 square feet of active and passive recreation and meet city standards for lighting, landscaping and open space.

Neighbors pressed officials on several concerns during an extended public comment period. Speakers cited heavy traffic on U.S. 27 and the nearby Turnpike interchange, complaints about low water pressure and rusty water in parts of Royal Highlands, the adequacy of the existing retention pond and berm, the prospect of transient or short‑term rentals, and the narrow single access point planned for the new development. "The traffic is atrocious, and we have so many more accidents than we ever have had," Betty Felton, a Royal Highlands resident, said during public comment. Several speakers said they believed the townhouses would be rentals rather than owner-occupied homes and worried that short-term rentals could create a revolving and disruptive population; Daley said at the community meeting and in the hearing that the developer would restrict rentals to a minimum one‑year lease and would not allow short‑term rentals under six months.

On utilities and stormwater, Miller and Harper said city departments reported sufficient capacity in water and wastewater systems during the review but that the applicant must submit contemporary engineering and permit documentation to state and regional regulators. "Anything they do will have to meet current standards," Miller said, referring to Saint Johns River Water Management District and other permitting agencies; he added that if the existing pond proves insufficient the developer will have to expand or reconfigure it to meet today’s rules.

Residents and the applicant also discussed private road and pond maintenance. Daley said the developer intends to enter talks with the Royal Highlands homeowners association to establish a proportional share for road maintenance and discussed options to close gaps in the berm and add fencing to limit pedestrian access between the projects.

The commission closed public comment and took votes on the staff recommendations. For the small‑scale comprehensive plan amendment (SSCP 25‑640) the commission vote was recorded as 3–3, according to the roll call; that tied recommendation advances to the City Commission as required for final action. The related rezoning to an SPUD (SPUD25642) was approved by the planning panel and will also go to the City Commission. The staff packet included the tentative City Commission hearing dates of Sept. 8 (presentation) and Oct. 13 (final hearing), which staff urged residents to attend.

Next steps: if the City Commission approves the annexation and rezoning, the developer must secure required permits, complete updated traffic and stormwater engineering and obtain any required state or county approvals for access and drainage. If the project does not achieve substantial commencement within 48 months, the SPUD zoning carries a reverter to the city’s RE‑1 single‑family standard, Miller noted.

Speakers for the record included Dan Miller, planning director; Candy Harper, deputy director; Tom Daley, Daley Design Group (applicant); and multiple Royal Highlands residents who spoke during the public comment period. The commission did not take final land-use authority; their recommendation is advisory to the City Commission, which will make the final determination.