Council splits Jamestown proposal: approves commercial text change, delays residential rezone after owner‑occupancy debate

The Provo City Council on April 22 approved a text amendment to the Specialty Support Commercial (SSC) zone to permit drive‑throughs and indoor storage and adopted the SSC rezone for the commercial portion of a proposed mixed retail/townhome project on North University Avenue. The council split the project after intense discussion about whether a small set of proposed townhomes should be subject to a recorded owner‑occupancy restriction.

What passed: Planning staff and the Planning Commission recommended a lot‑coverage limit for the SSC zone; the council adopted the Planning Commission’s 34% lot coverage exhibit and approved the ordinance text amendment 7–0. After an initial 3–4 vote failed on the developer’s full rezone (commercial + LDR residential), council approved a substitute motion 6–1 to rezone only the SSC/commercial portion and continue work on the residential piece.

Why council divided the application: Developer Douglas A. Nielsen proposed a small retail center with two drive‑through pads and six adjacent townhomes. Council members and neighbors pressed the developer to proffer owner‑occupancy requirements to preserve long‑term owner occupancy in townhomes (council discussed options ranging from a 70% owner‑occupancy proffer for a fixed term to the city’s usual one‑year after conveyance occupancy restriction). The developer said his business model anticipates keeping the six townhomes as long‑term rentals; he offered that he could consider recording a 70% owner‑occupancy covenant for a limited period but said it might not be commercially feasible to do otherwise.

Public input and staff notes: Neighbors raised traffic and driveway geometry concerns where the site meets 3470/University Avenue and asked whether drive‑through stacking and sight lines would be safe. Planning staff said a traffic study will be required and that UDOT may require access changes (right‑in/right‑out or a deceleration lane) based on trip generation. Staff also noted the project’s lack of large loading docks and said the applicant proposes overhead doors rather than semi‑loading docks.

Council action and votes - SSC text amendment (add indoor storage and drive‑throughs; remove FAR and adopt 34% lot coverage exhibit): PASSED 7–0. - Rezone (commercial + LDR): initial motion FAILED 3–4 (Yes: Hanley, Hoban, Christiansen? transcript shows split); SUBSTITUTE motion to rezone only SSC (exclude LDR portion) PASSED 6–1. The council then planned to continue consideration of the LDR/residential portion at a later meeting to allow a development agreement or owner‑occupancy proffer to be drafted and reviewed.

What’s next: The commercial text change and SSC rezone allow the developer to proceed with site planning and a traffic study; the residential portion (six townhomes) remains under negotiation. Council asked staff and applicant to pursue a development agreement if the developer will consider a recorded owner‑occupancy requirement for some percentage of the units and a term (for example, 5 years).