Fountain Hills planning commission continues debate on downtown overlay ordinance to June 9

The Fountain Hills Planning and Zoning Commission on April 21 continued consideration of Ordinance 25-02, a proposed downtown overlay that would create a three-part “downtown overlay” including an Avenue District with requirements for active ground-floor uses, modified residential density limits and new special-use permit rules for some first-floor uses.

The commission voted unanimously to continue the item to the June 9 regular meeting so staff can return with revised calculations and additional stakeholder input. Commissioner Gray made the motion to continue and Commissioner Proctor seconded; a roll call recorded six ayes and no nays.

Why it matters: The ordinance would change what types of businesses can locate along the Avenue of the Fountains, alter how many residential units are allowed on upper floors and affect how parking obligations are applied to several large corner parcels in Plat 208. Property owners and business representatives said the proposed text could limit use of existing buildings and leave large parcels hard to redevelop.

Staff presentation and proposal

A planning staff member summarized the ordinance as a consolidation of two existing overlay zones into a single downtown overlay with three subdistricts. The presentation described an Avenue District where, within about 50 feet of the right-of-way, the ordinance would prioritize ‘‘active’’ ground-floor uses such as restaurants, cafes and retail; other first-floor uses could still be allowed only by special-use permit. The staff presentation also proposed raising allowable residential density on upper floors to about 30 units per acre (described in the draft as calculated from square footage per floor) and retaining a provision that would allow up to a 50 percent parking reduction on large corner lots through a special-use permit.

Public comments and property-owner concerns

Several property owners addressed the commission during the public comment period. Suzanne Isaacs, who identified herself as a nearby building owner, said residents and property owners were unaware the meeting was scheduled and urged better public notice. Roger Isaacs, a property owner on the Avenue, told commissioners he had only seen the latest revision the morning of the meeting and said he did not believe the draft was ready to forward to council. Isaacs said the proposed change from a units-per-acre approach to a square-foot-per-unit calculation could prevent multiple vacant parcels from being redeveloped and would make it difficult for large corner lots to meet parking requirements if they were converted to higher-intensity uses.

Larry Myers, who said he serves on a committee seeking potential corporate employers for Fountain Hills, urged a broader vision for the Innovation District and argued that attracting an employer could organically revitalize the avenue.

Commission discussion and staff clarifications

Commissioners focused much of their discussion on three linked concerns: how large corner lots in Plat 208 would be treated; whether Verde River Drive should be used as a pedestrian connector and be included in the Avenue District; and how parking reductions for corner lots would affect the feasibility of restaurants or other high-activity uses.

Staff noted that four large corner lots created when Plat 208 was developed had historically been required to provide their own parking, and that those lots had been allowed a 50 percent parking reduction only by special-use permit in a prior update. The staff member also said the South Side of the avenue was not proposed for inclusion in the overlay because a development agreement (DA) tied to that property would lock it to its existing base zoning even if an overlay were applied.

Commissioners proposed several options to address owner concerns, including: - Revising the density calculation language (units per acre versus square footage per floor). - Seeking further input from the Plat 208 association about whether the 50 percent parking reduction is adequate or should be increased. - Considering limited exemptions or tailored treatment for the large corner lots so existing uses are not inadvertently prohibited.

Formal action

The commission voted to continue Ordinance 25-02 to the June 9 Planning and Zoning Commission meeting to allow staff to return with clarifications and additional analysis, including further review of the density calculations and parking impacts on the identified corner lots. Motion to continue: Commissioner Gray. Second: Commissioner Proctor. Vote: Corrigan — yes; Gray — yes; Proctor — yes; Seaman — yes; Vice Chair Corey — yes; Chairman Kova Sevic — yes (6–0).

What’s next

Staff told commissioners it will prepare additional materials for the June 9 meeting, including revised density language and more detailed parking calculations for the affected Plat 208 parcels, and plans to solicit further input from the Plat 208 board and the Avenue merchants. The commission did not forward a recommendation to council; rather, it continued discussion to allow more stakeholder outreach and data-driven refinements.

Ending note: The ordinance, if later recommended by the commission and adopted by town council, would change how the Avenue of the Fountains is regulated for uses, density and parking, and property owners with development agreements or special plat provisions would be key stakeholders in shaping the final text.