Sedona council hears plan for 775 new housing units over 10 years; staff says financing and community buy-in will be critical

Sedona City Council on May 6, 2026 heard a presentation of Phase 1 of a balanced housing strategy that sets a 10-year target of 775 new homes, including 175 units targeted for cost-burdened Sedona seniors, and proposed a mix of infill, accessory dwelling units, recovery of existing units and limited new construction to meet that goal.

Tony, a consultant working on the plan, told the council the 775-unit target is meant to strike a balance between documented demand — earlier studies showed a need of 1,500 to 2,100 units — and preserving Sedona's local character and infrastructure capacity. "It's a roll up your sleeves and get to work" session, he said, noting the team is aiming for realistic, implementable steps rather than aspirational numbers.

The presentation laid out four pathways to reach the target: (1) residential infill and ADUs (the team assumes roughly 14 ADUs per year, with about half becoming short-term rentals), (2) recovery and retention measures such as an expanded rent-local program and home-rehabilitation assistance, (3) modest commercial redevelopment that adds second-story housing over retail, and (4) new construction on city-owned and partner properties with a focus on missing-middle types (townhomes, duplexes, triplexes). The consultant said 221 units already in the pipeline reduce the remaining target.

On affordability mix, the plan recommends roughly a 50/50 split between ownership and rental units and emphasizes adding 3- and 4-bedroom units to attract working-age households with children. The consultants acknowledged trade-offs: adding larger units or achieving greater subsidy often requires deeper public investment or higher density than many residents prefer.

Council members pressed for specifics. One asked whether the 221 units coming online were counted against the 775 target; staff said yes but cautioned the effective count might be slightly lower because some pipeline units are smaller (studios/one-bedrooms) than the plan's target mix. On the question of where housing would be sited, consultants said they had identified potential public parcels (for example, 2411 Sunset Lofts and other city-owned sites, plus the Western Gateway and land near West Oak Elementary) but intentionally did not publish a detailed private-property map to avoid inflating land values or pre-empting partner negotiations.

Financing and the city's role drew sustained attention. Staff said achieving targets across the income spectrum will require public participation — as landowner, partner, or gap financier — and that the existing $19 million the council has reserved will be meaningful but is unlikely to be sufficient for the full program. The consultant described how the city could contribute "patient money" or use land to make developer pro formas work while keeping building heights limited to preserve character.

Councilors and commenters raised implementation risks beyond financing: Sedona's limited flat land, steep slopes, fire risk and high construction costs make building more expensive locally than in nearby cities. Several councilors urged stepped, transparent outreach: smaller early wins, a second open house focused on strategies, and a housing think tank next week with Logan Simpson and Opticos Design to produce actionable tactics. Logan Simpson's work is expected to be complete in August, after which staff will convert recommended strategies into a work plan.

Public commenters largely supported action but pushed for specifics and safeguards. Linda Martinez asked that any units counted toward the 775 target remain within Sedona's boundaries, and urged keeping the cultural-park parcel slated for housing. "Please keep that $7.75 in the Sedona boundaries," she said. Luke Septon, a local property owner, criticized the land-development code as discouraging redevelopment and urged reforms to make projects viable. David Key, president and CEO of the Greater Sedona Chamber of Commerce, said the business community stands ready to partner on outreach and programming and urged councilors to "stand like a rock" on principle while engaging the public.

Staff also flagged program details: the rent-local program currently averages about three to four new enrollments per year; down-payment assistance has had low participation (about five program participants across two programs); and Habitat's CDBG-funded project has a waiting list and must meet deadlines. Consultants said retention activities (helping current residents stay or buy locally) do not count toward the 775 target but would reduce future pressure.

Next steps: the city will hold the announced housing think tank next week, Logan Simpson will finalize targeted strategies by August, and staff committed to producing a more detailed annual work plan and to meet with neighborhood stakeholders before proposing site-specific projects. The council did not take a vote on any ordinance or formal action at the meeting.