Lake Havasu City planners recommend rezoning at Shops at Lake Havasu, bar storage and warehousing on three outparcels

On Sept. 18, 2019, the Lake Havasu City Planning and Zoning Commission voted 6–0 to forward to the City Council a recommendation to amend Planned Development PD 0500200008 at the Shops at Lake Havasu, rezoning an existing retail building to C2 (General Commercial) and creating a new C2 Planned Development for three adjacent vacant outparcels with specific use restrictions.

The proposed Land Use Action (19-2146) would: remove and rezone Tract 2396 Lot A‑2 (APN 120‑61002), which includes PetSmart, Beals and Cactus RV, from C2PD to C2; and remove and rezone Tract 2392 Block 1, Lots 5, 6 and 8 (APNs 120‑54‑005, 006 and 008) from C2PD to a new C2PD that allows the standard C2 uses except storage units, warehousing and wholesale distribution, and outdoor storage. The recommendation also keeps a condition from the original PD (Ordinance 778) that restricts freestanding signs on the outparcels facing Highway 95.

Stuart Schmeling, planning staff, described the request as "somewhat simple" and said the change would make the existing building consistent with recent rezonings of interior mall properties while the three vacant outparcels would be placed in a new PD with added use limitations. Schmeling told commissioners that staff recommended the rezoning after finding the proposal met the standards in section 14‑05‑04(L) of the city's development code.

Rob Sampson, representing Selberg Associates (the applicant), said the owner seeks flexibility to attract new tenants as big‑box retail changes. "Retail, in general, across the country is in disrepair, big box retail especially," Sampson said, and added the owner wants options to keep the mall building viable and attract a broader mix of tenants.

Commissioners discussed several concerns before voting. Commissioners and members of the public raised that outdoor display or storage of RVs and boats has reduced customer parking in the existing lot; staff and the applicant noted homeowners association rules may also apply to parking and storage on site. Commissioners debated whether to bar vehicle service or repair on the outparcels. Staff recommended prohibiting "vehicle service or repair" as part of the new PD, but commissioners observed that the zoning code differentiates light and heavy vehicle service and that some repair activity commonly accompanies specialty vehicle or marine sales (for example, tire stores or light tune‑ups). After discussion the commission's final recommendation excluded vehicle service or repair from the list of prohibited uses (i.e., the final motion removed that prohibition) while keeping the prohibitions on storage units, warehousing/wholesale distribution, and outdoor storage.

Commissioners also discussed whether to prohibit medical marijuana dispensaries or infusion facilities on the outparcels. Mr. Nelson asked whether those uses were permitted under current zoning; staff replied that a medical marijuana dispensary or infusion facility is permitted in the C2 District and therefore would be allowed unless specifically restricted in the PD. Gary (staff) clarified an "infusion facility" in the local code refers to a facility that incorporates medical marijuana into consumable products. The applicant said there were currently no prospective tenants for the vacant lots and that adding medical marijuana uses could be a way to attract foot traffic, but he did not press for that use to be expressly allowed.

After discussion, Commissioner Michael Gordon moved to recommend approval of Land Use Action 19‑2146 as described by staff but with vehicle service/repair removed from the list of prohibited uses. The motion was seconded by Commissioner Doug Hardy. The motion passed by vote, 6–0. The commission's recommendation now goes to the Lake Havasu City Council for final action.

Clarifying details taken from the hearing include the affected APNs (120‑61002; 120‑54‑005, ‑006, ‑008); the PD number being amended (PD 0500200008); the staff code reference (14‑05‑04(L)); and the ordinance cited for sign restriction (referred to in the record as Ordinance 778). The applicant said the three outparcels have been vacant for roughly 12 years and there are currently three tenants in the existing building, including Cactus RV.

No public speakers testified at the hearing on this item. The commission adjourned after approving the motion.