Fountain Hills planning commission continues downtown overlay vote after business owners, residents raise parking and property-use concerns

The Fountain Hills Planning and Zoning Commission on April 21 voted to continue consideration of Ordinance 25-02 — the proposed downtown overlay that would create a three-part downtown overlay, including an Avenue District that emphasizes active ground-floor uses — until the commission’s June 9 meeting.

The ordinance, presented by staff, would consolidate existing downtown overlays, allow active storefront uses along primary streets within 50 feet of the right-of-way, raise allowed upper-floor residential density to roughly 30 units per acre, and preserve a special-use-permit (SUP) pathway for other uses. The commission agreed to a 60-day continuance to allow more work on parking, the treatment of large corner lots and development-agreement conflicts.

The draft overlay would limit certain ground-floor uses along the Avenue to restaurants, cafés, taverns, retail and similar “active” uses within 50 feet of the frontage, while allowing other uses through an SUP. Staff said the change is intended to “promote active use along the sidewalks” and to combine and simplify prior overlay districts. The draft raises by-right upper-floor density using two alternate measurements that staff estimated would equal approximately 30 units per acre for typical downtown lot sizes.

Public speakers and several commissioners urged the commission to pause. Suzanne Isaacs, a downtown property owner, said she learned of the meeting only the morning of the hearing: "All the way up till 08:00 this morning, I did not know this meeting was scheduled. It was not on the website," she said, urging better notice. Roger Isaacs, another downtown property owner and former Plat 208 board member, urged keeping units-per-acre language rather than a per-floor square-foot metric, saying the draft would render several vacant parcels infeasible. He told commissioners, “I don't believe it's ready to be signed off and passed along.”

Commissioners and staff spent much of the meeting on parking constraints for the four larger corner lots in Plat 208 (including the Chase parcel and the Sears/Executive Suites area). Staff reminded the commission that those corner lots historically were required to provide their own parking; in recent years the town added a provision allowing a 50% parking reduction for those lots by SUP. Commissioners asked whether that reduction should be larger and whether Plat 208 (the plat/parking district) needs to be engaged in any change. Staff said expanding the Avenue District without addressing parking could leave corner buildings effectively unable to accommodate high-intensity uses such as full-building restaurants.

Commissioner Peter Gray, arguing for a larger Avenue District, said the town should be willing to accept more on-street parking to encourage a vibrant downtown: "I don't care if there's a few more cars on the street parked downtown. If this district catches fire and it gets life to it," he said. Other commissioners urged weighing small-property owners' investments and ensuring business owners have had a chance to provide input.

After public comment and lengthy commissioner discussion, Commissioner Gray moved and Commissioner Proctor seconded a motion to continue the item to the commission’s June 9 meeting. The roll call vote was unanimous (Commissioners Corrigan, Gray, Proctor, Seum, Vice Chair Corey and Chairman Kova Sevic all voted aye). The continuance was approved.

Staff said the additional time will be used to provide revised draft language, parking calculations and further outreach to Plat 208 stakeholders and downtown merchants. The item will return to the commission on June 9 for further deliberation and possible recommendation to Town Council.

What’s next: the commission requested more precise parking transfer and reduction calculations, clarification of whether to maintain units-per-acre versus floor-area metrics for residential density, and a careful review of how existing development agreements (notably the Park Place/DA-mentioned parcels) interact with the proposed overlay. Staff also noted they will consider options to exclude specific large corner lots from the Avenue restrictions if the commission chooses.