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Zoning official: Rezoning request for former Magnuson Hotel would tighten allowable uses amid public opposition

Lee County Committee · March 10, 2026
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Summary

Lee County planning staff said Dixon Apartment LLC seeks to rezone the former Magnuson Hotel from commercial (C3) to multifamily (R4); Palmyra Township residents opposed the plan and a March 25 public hearing is set. County staff asked that building-code adoption be held over until April to add enforcement tools.

Alice, the county zoning and planning official, told the committee that petition 25P1658 from Dixon Apartment LLC asks to change the former Magnuson Hotel parcel from C3 commercial to R4 multifamily residential to allow an apartment complex.

Alice said Palmyra Township held a meeting with strong public turnout and that the majority of attendees opposed the rezoning, citing past problems at the hotel site and community concern about repeating those conditions. She urged board members to attend or review the March 25 public hearing so residents’ concerns are heard.

The planner said moving the parcel to R4 would limit the range of allowable uses compared with the broad C3 commercial district and would trigger building‑use conversions to meet residential standards, including Americans with Disabilities Act access, elevator installation where required, and fire‑safety upgrades such as sprinklers. She also stressed that “one of the big misconceptions we’re hearing is that this is going to be low income; it is not,” saying the owners have indicated they do not intend to operate low‑income housing and that eligibility for state or federal supportive funding would be unlikely given the site’s distance from amenities.

The office also flagged a pending countywide building‑code adoption that staff will ask to hold over until April; planners said adopting the code would provide additional enforcement tools to address building‑safety concerns if uses change.

Next steps: The public hearing on petition 25P1658 is scheduled for March 25. If Palmyra Township formally objects, state statute and county rules would require a supermajority on the county board to override the township’s objection; otherwise the petition will proceed through the standard planning and board review process.

Context: Petition 25P1658 concerns land‑use controls, community safety and building‑code enforcement. The county planner recommended that board members review the hearing record before voting and noted that the zoning change, if approved, would restrict many commercial uses currently allowed in C3.