Fountain Hills council narrows downtown overlay, boosts allowable residential density to 35 units per acre

The Fountain Hills Town Council on Tuesday approved an amendment to the town’s zoning ordinance establishing a new Downtown Overlay District that narrows allowable ground-floor uses and raises by-right upper-floor residential density to 35 units per acre.

The council voted 5–2 to adopt the overlay after public comment and extended discussion over whether to allow office/service uses on prime storefronts, how dense new housing should be, and how parking and noise would be handled. Vice Mayor Skilcorne moved the final version; Councilwoman McMahon seconded. Council members Calavianakis and McMahon voted no; the other five voted yes.

Supporters said the overlay is aimed at creating an “avenue” with active retail, restaurants and entertainment uses and more upper-floor housing to increase foot traffic and economic activity. Planning staff and the Planning & Zoning Commission drafted an overlay that divides downtown into three subdistricts — Avenue, Business and Innovation — and proposed higher residential density and mechanisms to encourage ground-floor retail and entertainment uses.

Council discussion centered on three persistent issues: whether to allow typical office- and service-type uses on ground floors near the street; how great an increase in residential density the town should allow; and whether special-use permits should remain available as a safety valve. Several council members, including Skilcorne and Councilwoman Larrabee, argued the town needed stronger, by-right limits on office uses within about 50 feet of the street to preserve retail and restaurant opportunities. Councilman Watts and others expressed concern about too much density and asked for clearer noise enforcement tools tied to objective decibel standards.

Planning Director John Wesley said the overlay as drafted would: preserve existing commercial zoning categories (C1, C2, CC, etc.); create a build-to line on Avenue parcels to bring buildings close to the street; increase residential density allowances (the code’s original 8 units per acre would be replaced by the new overlay’s higher allowances); permit pop-up and temporary uses on vacant parcels with simplified requirements; and leave parking requirements largely unchanged but keep the possibility of future special-use permits where appropriate.

Public commenters were split. Resident Larry Myers urged a stronger “fun zone” approach — loosening parking limitations and actively encouraging bars and restaurants — while former Planning & Zoning commissioner Cecil Yates urged the council to adopt the denser, retail-focused vision to create the population base for a vibrant downtown, noting that Park Place Phase 1 already approaches 50 units per acre.

Council action: The council approved the ordinance as amended to (a) limit permitted ground-floor uses within roughly 50 feet of right-of-way to active retail/entertainment/restaurant-type activities (as listed in the proposed ordinance), (b) set by-right upper-floor residential density to 35 units per acre within the overlay, and (c) remove the staff-proposed automatic special-use-permit (SUP) route for office uses at street-front storefronts (so those uses would not be allowed by-right in the 50-foot street frontage).

The ordinance replaces two older downtown overlays and establishes a three-subdistrict structure. Staff said selected parcels classified in Plat 208 would be subject to a build-to line and other urban-design measures.

Next steps: The ordinance takes effect according to the town’s ordinance schedule. Staff was directed to return any necessary clean-up language and prepare implementation materials, including design standards and public information for property owners.

Ending: Councilmembers emphasized they wanted to balance economic development with neighborhood character; those concerns informed the final compromise density and the specific ground-floor use restrictions.