Murray City Planning Commission members voted unanimously Aug. 7 to decline recommending a general-plan amendment and zoning change that would allow conversion of the former Studio 6 hotel on 6600 South into a mixed-use, deeply affordable housing development.

The applicant, represented by Keith Warburton, asked the commission to redesignate the property on 975 East 6600 South from “office” on the future land-use map to Village and Centers Mixed Use (VMU) and to approve a development agreement that would authorize conversion of the existing hotel into 102 residential units plus at least 5,000 square feet of commercial space open to the public. Staff recommended forwarding the request to City Council with a development-agreement requirement setting “guardrails” for the proposed mixed-use project.

The proposal attracted extended public comment and questions about safety, property upkeep, tenant selection and long-term oversight. Several nearby residents urged the commission to reject the rezoning and to study other options for the parcel; a commercial-property representative asked the city to consider a broader planning strategy for the corridor.

Chad Wilkinson, planning staff, told commissioners the application combined a general-plan amendment and a zone change with a proposed development agreement that would require a residential component, at least 5,000 square feet of public-facing commercial space and compliance with VMU standards. He said the site has a long history of police calls and property decline, and that the city had discussed whether a change of circumstances since the 2017 general plan could justify a land-use amendment.

“The development agreement is there to conditionally approve a zone change,” Wilkinson said. “If those things are not completed then that zoning can be rescinded. It can be reverted back to the previous zoning and then those approvals go away.”

Applicant Keith Warburton told the commission the project would be an adaptive reuse rather than new construction and estimated renovation costs “close to $4,000,000.” He described a planned reduction from about 142 hotel rooms to 102 residential units and said the project would include on-site case management and security cameras. Warburton said tenants would generally be low-income households selected under state grant guidelines; he distinguished the project from “permanent supportive housing,” saying it would be “deeply affordable housing” with some on-site services.

Neighbors said they feared a return of drug activity and disorder and questioned whether state-funded projects of this type have produced long-term improvements. Mary Anne Ross, who lives near Wheeler Farm, said, “Unfortunately, crime follows homelessness.” A representative for a nearby commercial property urged the commission to consider a larger-area plan for the southern gateway to Murray rather than approving a single spot rezoning.

Commission discussion focused on whether the parcel’s highest and best use remained commercial office, whether the VMU designation was appropriate at this location, and whether the development agreement provided adequate guarantees of a “high quality redevelopment.” Commissioners asked whether the city could place a timeline in the development agreement; Wilkinson said a deadline for initial construction could be included and staff suggested two years would be reasonable to complete initial construction and establish the use.

Commissioner Jake Pearson made a motion to recommend approval to the City Council of the future land-use map amendment from office to VMU subject to a development agreement and a two-year completion requirement. The motion failed on roll call: Commissioner Pearson—No; Commissioner Hirstow—No; Commissioner Rogers—No; Commissioner Hildreth—No; Commissioner Kling—No; Chair Michael Richards—No. Because the commission did not recommend the general-plan amendment, the related zoning change was not taken up; staff said the matter will appear to City Council at a future date with the planning commission's recommendation recorded in the minutes.

The outcome preserves the current office designation on the future land-use map at the commission level; the City Council retains final legislative authority and may make a different decision when the item reaches that body.

Why this matters: the parcel abuts Wheeler Farm and is a principal gateway on the south side of Murray. The applicant framed adaptive reuse as a faster, lower-cost way to add deeply affordable housing than new construction; opponents cited crime concerns and urged study of broader commercial options. The planning commission’s vote means the council will consider the application with the commission’s recommendation against the change.