Planning commission backs rezoning of two Blue Ridge parcels to central business district, leaves hotel permit undecided

The Blue Ridge Planning Commission voted to recommend that parcels BR02022 and BR02023 (742 East 2nd Street) be rezoned from C1 (neighborhood commercial) to CBD (central business district), adopting staff-recommended conditions while making no recommendation on the separate conditional-use permit for a proposed boutique hotel. The recommendation sends the rezoning and the outstanding variance on building height to the city council for final decisions.

The application, filed by V2 Holdings LLC, seeks the rezoning and a conditional-use permit to allow a hotel; the developer also plans to request a variance to exceed the 35-foot maximum building height, proposing a measured height of roughly 49 feet 6 inches from East Second Street. Staff’s analysis — which had recommended denial — said the proposal is inconsistent with the future land use map, would remove a C1 buffer between higher-density CBD uses and nearby residential zones, and could affect traffic, sewer capacity and adjacent property values. "The proposed use may adversely affect traffic in the area and will likely require upgrades to nearby sewer infrastructure," staff wrote in the packet.

Developer representatives told the commission they had spent a year in predevelopment meetings and outreach and remain open to alternative uses, but preferred a boutique hotel. "We love Blue Ridge," said Matt Hollander, president of V2 Holdings. "We feel like the town needs it," he said, adding that the team had revised plans several times in response to local feedback.

Nearby resident David Whitner said he was not categorically opposed but raised specific concerns about parking, drainage and alcohol service. "I don't want a dumpy place to be built, you know, like a Motel 6," Whitner said, and asked to see civil engineering drawings showing stormwater and runoff details.

The applicants presented parking strategies, including acquisition options for adjacent lots and the possibility of structured parking under portions of the hotel. Project engineer Zeke Hunsburger of Foothills Civil and Environmental Consultants said water capacity was sufficient but that 310 linear feet of existing 6-inch sewer line would need to be upgraded to 10-inch to serve a 60-room hotel; he estimated about three to seven days of road-cut and replacement work for that segment and said standard stormwater controls would be required to avoid increasing runoff.

Commissioners split over design, scale and precedent. Some expressed sympathy for the goals of the project but reiterated long-standing local resistance to spot rezoning and to variances that increase building height in downtown areas. The city attorney clarified that hotels are not permitted in C1 districts and that the planning commission was being asked only for a recommendation on rezoning and conditional use; the height-variance decision is for the city council.

On motions, the commission considered a recommendation of denial but ultimately adopted a motion recommending approval of the rezoning to CBD with the staff-recommended conditions. The commission made no motion on the conditional-use permit, meaning there is no planning commission recommendation on that permit; the variance and the permit will go forward to the city council without a commission recommendation.

The conditions read into the record require the applicant, at its expense, to submit a traffic study showing ingress and egress impacts and mitigation recommendations; obtain city permits for any curb cuts or intersections and perform required infrastructure upgrades; submit a utility plan that includes water and wastewater and any necessary upgrades to be funded and permitted by the applicant; pay water and sewer tap fees before building permits issue; construct a sidewalk along Church Street to city standards; and provide a stormwater management plan with drainage improvements. The applicant stated they will meet those requirements.

Next steps: the rezoning recommendation and the unresolved conditional-use and variance requests will be scheduled for the city council, which has final authority over rezoning, conditional uses and variances. The planning commission adjourned without making a recommendation on the hotel permit.