Planning commission approves removing 35-acre core of Shops at Lake Havasu from planned development

The Lake Havasu City Planning and Zoning Commission voted 4-0 March 20 to approve an application to amend the Shops at Lake Havasu planned development by removing roughly 35.5 acres of parcels along Highway 95 North and rezoning those parcels from C2PD (General Commercial Planned Development) to C2 (General Commercial).

Staff and applicants told the commission the change is intended to allow more flexible commercial uses that better reflect contemporary “omnichannel” retail and entertainment models. Stuart (staff member) outlined the PD's history and boundaries, saying the original planned development covered about 205 acres when approved in 1997 and that the portion commonly called the Shops at Lake Havasu was amended to about 105 acres in 2005. The application before the commission affects the portion outlined in blue on the staff map and does not include several anchor parcels such as Walmart, JCPenney, Dillard's or the movie theater.

Michael Gordon, representing Desert Land Group and the applicant, told commissioners the existing PD contains "very restrictive" use definitions that limit the kinds of tenants the property can attract. "By removing it from the PD . . . it opens up some flexibility allowing what's allowed within the C2 General Commercial District to be developed out there," Gordon said. He said any uses outside the C2 zone would still require separate zoning approvals.

Local owner Jarrett Ports, who identified himself as the property owner and said he has moved local management onto the site, described vacant, unfinished tenant spaces he called "gray" — shell spaces without interior build-out or infrastructure — and said local ownership is pursuing larger omnichannel tenants and entertainment/children's activity uses to drive consistent traffic. "We're looking at arcades . . . sporting venues, kids venues," Ports said, adding that some large retailers that serve as anchors have expressed support for the owners' plans.

James Gray of the Partnership for Economic Development said the group's priority is employment and added that prospective omnichannel tenants could create full-time jobs and a broader customer base beyond the local market by selling online as well as in-store.

Staff concluded the application "meets all the requirements set forth in 14005 0 '4 L" (as read into the record) and recommended the land-use action (ID19-1921) be forwarded to the City Council with a recommendation of approval. The commission then moved to approve the amendment as presented. Commissioner Susanna Ballard made the motion; Mr. McGowan seconded. The chair announced the motion passed 4 to 0.

Public comment included one unrelated call to the public about a separate rezoning question and a resident's request for records; the chair and staff advised that those concerns would need to be handled through staff or a public records request because they were not on the meeting agenda.

The commission's approval removes the named parcels from the planned development and applies the underlying C2 zoning rules to those lots; proponents said the change should make it easier to attract tenants and employers while existing private covenants (CC&Rs) and lease arrangements will continue to constrain uses in some respects. No specific redevelopment plan or tenant approvals were adopted at the meeting, and applicants and staff said any uses not permitted in C2 would require further review and approval.

Next procedural steps discussed on the record: staff had recommended forwarding the land-use action to City Council with a recommendation of approval; the commission itself approved the requested amendment by vote 4-0 at the March 20 meeting.