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Fountain Hills adopts downtown overlay to encourage mixed‑use development; sets 35 units/acre with 15‑unit/acre block cap
Summary
Council adopted a revised downtown overlay that allows up to 35 units per acre by right on upper floors while capping average density for a full block at 15 units per acre; the council left ground‑floor commercial mix and specific retail percentage requirements for future discussion.
The Town Council adopted amendments to the downtown overlay to encourage mixed‑use redevelopment and to make higher residential densities easier to build, approving a text amendment that allows up to 35 units per acre on upper floors while limiting a whole‑block average to 15 units per acre.
John, the town’s Development Services Director, walked the council through density concepts and examples showing how higher per‑lot densities translate across blocks. Staff argued that higher residential density near downtown is a key tool to attract ground‑floor commercial activity because “retail follows rooftops.” The overlay keeps strict limits on ground‑floor residential on the Avenue district (no ground‑floor residences within 50 feet of the street) and requires a special‑use permit for ground‑floor residential in certain business areas.
Council members debated whether to add a minimum percentage of ground‑floor space that must be retail or other revenue‑generating commercial use. Staff and the attorney noted that such a restriction was not agendized for tonight’s meeting and would require a separate, advertised ordinance. Several council members asked staff to return with options (for example, a required percentage of non‑residential ground floor across business district lots).
Residents at the public hearing and some council members urged caution about overbuilding the downtown area; one resident, Dan Kovacevic, urged that the town protect ground‑floor commercial activity as the overlay is implemented. Council approved the ordinance amendment and the rezoning of downtown parcels into the new overlay in separate votes; both passed with final tallies of 6‑0.
Council directed staff to return with clarifying language about the block cap, the mechanics of density calculations when multiple owners exist on a block, and options for limiting non‑retail commercial ground‑floor uses in future code changes.
