The Gilbert Town Council on Aug. 5 postponed action on a request to amend the general plan and rezone 14.24 acres at Val Vista Square so the developer can return with a revised plan to increase ground-floor commercial area.

Planning staff said the applications, filed as GP-24-08 and Z-24-20 (Ora Santan), would change the property’s general-plan designation from regional commercial to residential 25–50 dwelling units per acre and rezone the site from regional commercial with a planned area development to mixed use large with a planned area development. Staff recommended denial because the project would retain far less nonresidential floor area than the land-development-code requirement for mixed-use districts.

The planning presentation said the applicant proposes 357 units on the 14.24-acre site (about 25.1 dwelling units per acre) in three buildings with ground-floor nonresidential space limited to about 16,000 square feet. Under the mixed-use standard, staff said 20% of the development’s floor area — roughly 92,000 square feet given the applicant’s stated total building area of about 460,540 square feet — would need to be nonresidential; the applicant’s proposal would supply about 3.49%.

"Based on that significant deviation from the land development code, staff's recommendation on these items is denial," Planning staff member Ashley told the council.

The applicant and owner offered the project history and market context as justification for a smaller commercial component. Adam Baugh, the applicant, and Morgan Neville, who identified himself as representing the Park Corporation (the property owner), said the parcel has suffered decades of stalled development since the 2008–2010 recession and that roadway alignment and low traffic along Market Street have made large-scale retail or speculative office infeasible. Baugh told council that, under current code math, parking garages are counted in the denominator when calculating the commercial share, which he said depresses the apparent percentage of nonresidential space.

"If 90,000 square feet of commercial could be built here, we would just have built it to begin with," Baugh said, arguing the project as proposed restores the original mixed-use intent for residential above ground-floor commercial while responding to real constraints on the site.

The Gilbert Chamber of Commerce had earlier told staff the mixed-use concept fits the site but encouraged the applicant to conform to the town's mixed-use standards. The Planning Commission recommended approval at a July hearing by a 7–0 vote; staff continued to oppose the deviations as written.

Council members expressed split views. Some members urged preserving scarce commercial land and restoring employment-generating uses, noting Gilbert’s limited remaining commercial acreage and the town’s reliance on commercial revenue for long-term fiscal sustainability. Other members said the parcel’s poor commercial prospects and the fact the site has produced no major commercial user in decades counsel flexibility.

After discussion the council voted 6–0 to continue the item to Oct. 14 to allow the applicant time to explore design changes and additional ground-floor commercial area, and for staff review of any revisions. The applicant indicated willingness to review parking, parking reductions available in the mixed-use district, and other layout options to increase active ground-floor uses.

The Oct. 14 hearing will be the next formal opportunity for council action on GP-24-08 and Z-24-20.