Attachment C - VPC Summary - Z-26-22-4.pdf

City of Phoenix — Formal (2022-10-12)

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City of Phoenix • Planning & Development Department 
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882 
Village Planning Committee Meeting Summary 
Z-26-22-4
Date of VPC Meeting 
August 1, 2022 
Request From 
P-2 H-R TOD-1 and C-2 H-R TOD-1
Request To 
WU T5:6 MT
Proposed Use 
Multifamily Residential
Location 
Approximately 430 feet east of the northeast corner of 
Central Avenue and Osborn Road  
VPC Recommendation 
Approval, per staff recommendation 
VPC Vote 
7-3-0
VPC DISCUSSION: 
No virtual speaker cards were received on this item. 
STAFF PRESENTATION 
Klimek, staff, provided an overview of the site including its physical and policy contexts, 
the applicant’s proposal, and the staff recommendation. The subject site is located 
approximately 430 feet east of the northeast corner of Central Avenue and Osborn 
Road, immediately east of the Phoenix Financial Center. There is no single-family 
residential near the subject site which is surrounded by commercial uses with built or 
entitled heights of between 56 and 250 feet. The subject site is located within the 
Encanto Village Core, within a short walk to the nearest light rail station, and within the 
Midtown TOD Policy Plan area. 
The conceptual zoning plan contained within the Midtown TOD Policy Plan identifies the 
site as T6:22. T6:22 would allow a maximum height of 250 feet which is significantly 
more than the 80 feet permitted in T5:6. The conceptual zoning plan includes a 
disclaimer that its recommendation is guidance only and that a more thorough analysis 
should be completed during the rezoning process. The site includes significant 
constraints including an obligation of the sale/purchase to accommodate a large volume 
of off-site vehicle parking. In terms of physical constraints, the subterranean parking 
structure that occupies virtually the entire site provide a structural limit on the yield 
possible on the site without fully redeveloping the site and accommodating the full 
parking load for both the off-site user and the new development. Due to these financial, 
logistical, and structural constraints, it is unlikely that the site will achieve heights 
ATTACHMENT C

Encanto Village Planning Committee Meeting Summary 
August 1, 2022 
Page 2 of 5 
 
 
City of Phoenix • Planning & Development Department 
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882 
beyond T5:6 which is therefore the staff recommendation in response to the applicant’s 
proposal. 
 
The subject site is presently developed with a surface and subterranean parking 
structure with a total of 1,178 parking spaces for the adjacent but off-site Phoenix 
Financial Center. The applicant’s proposal preserves this off-site parking arrangement 
and adds 335 multifamily units to be built atop the parking structure for a total above 
grade height of approximately 75 feet. The development includes five percent private 
open space as required by WU Code.  
 
Staff is recommending approval subject to 9 stipulations. 
 
APPLICANT PRESENTATION 
 
Mr. Nick Wood, of Snell and Wilmer, introduced himself as representing the applicant. 
He presented on the site, the proposal, and offered to answer questions from the 
committee. Mill Creek Residential is a national developer focused on lifestyle and this 
will be their second project in Phoenix with the first located in the Kierland area and they 
primarily pursue development with a build-hold strategy.  
 
The subject site is challenging but exciting due to its physical constraints and the design 
opportunities. In collaboration with the Phoenix Financial Center the proposal will create 
a connected mixed-use community with jobs, dwellings, public open space, and resident 
amenities. The subject site currently houses virtually all parking for the Phoenix 
Financial Center and is entirely developed by a parking structure with two below grade 
levels and a surface level with a total of 1,178 spaces. Historically, the subject site was 
master planned with the Phoenix Financial Center and was proposed as a lower-rise 
commercial structure that would sit atop the parking structure. The current proposal will 
structurally reinforce the parking structure to accommodate seven stories of multifamily 
development above grade.  
 
A condition of the purchase from the owners of the Phoenix Financial Center required 
that the applicant replace the 385 surface parking spaces with at least 120 unreserved 
spaces, in addition to also preserving all 768 underground spaces used by the Phoenix 
Financial Center. The proposal adds 335 dwelling units with a marginal increase in the 
total amount of parking on the site. The above grade parking structure is wrapped by 
units on the west, north, and south with the podium and elevated surface parking that 
will open onto the east. 
 
The proposal includes: two ground level amenity areas for residents that will be 
surrounded by units; an electrical transformer that will allow for up to 50 percent of all 
units in the parking structure to be EV charging stations; and will include efficient 
fixtures and building materials. 
 
He concluded by stating that the applicant is in full agreement with all the staff 
stipulations.

Encanto Village Planning Committee Meeting Summary 
August 1, 2022 
Page 3 of 5 
 
 
City of Phoenix • Planning & Development Department 
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882 
 
QUESTIONS FROM COMMITTEE 
  
Committee Member Cothron asked if the project will pursue LEED Certification and if 
there have been any neighborhood concerns. Mr. Tyler Wilson, of Mill Creek 
Residential, introduced himself and stated that they will not pursue LEED Certification 
but that their proposal would meet many of the certification points. Mr. Wood stated that 
the neighborhood outreach process exceeded the minimum requirements established 
by the City of Phoenix and there is only one opponent who doesn’t like multifamily or 
any development on the site. 
 
Vice Chair Rodriguez stated that the Midtown TOD Policy Plan identifies the site as 
being appropriate for more intensity. She asked for confirmation that structural analyses 
revealed that the parking structure cannot handle additional load beyond 75 feet. Mr. 
Wood confirmed. Vice Chair Rodriguez stated that parking costs will always fall back 
onto the tenants and expressed concern that the applicant’s presentation had failed to 
mention the light rail or the many bikeways in Central Phoenix including the 3rd Street 
Promenade. She asked for detail on the target renters and if they would all be drivers. 
Mr. Wilson responded that the likely renter profile includes a mix of everyone but that 
there will likely be a focus toward medical employees due to the concentration of uses 
including St. Joseph Hospital, Creighton University, and others within proximity. Mill 
Creek Residential targeted the site due to the light rail, the 3rd Street Promenade, Park 
Central, and collectively, the energy focused around this area. Vice Chair Rodriguez 
stated that it sounds like they are targeting prospective tenants who want to live near 
they work. She asked if the units will be energy efficient. Mr. Wilson responded that the 
development will be a long-term hold and that energy efficient building systems will 
benefit them as owners but also their tenants.   
 
Vice Chair Rodriguez stated that the most sustainable thing that a developer can do is 
reduce its parking supply to mitigate the urban heat island crisis. She stated that 
reducing parking is also an important way to address the affordable housing crisis 
facing Phoenix. She expressed concern that the site is over-parked. Mr. Wood agreed 
with the premise that parking is expensive but stated the proposal is displacing surface 
parking which must be accommodated within the development. Vice Chair Rodriguez 
responded that it is only displacing parking if the parking area is utilized, which the 
surface lot is not.   
 
Committee Member Procaccini expressed concern that the units located on the 
eastern half of the site and oriented onto the elevated surface parking area will not be 
desirable. Mr. Wood responded that there will be shade structures for the elevated 
surface parking, that the units will be located five feet above the parking area to 
eliminate headlight glare. He concluded by stating that that they do not expect that they 
will need to discount the units because, in part, the units will have a clear view of 
Camelback Mountain and will have larger patios than the other units.

Encanto Village Planning Committee Meeting Summary 
August 1, 2022 
Page 4 of 5 
 
 
City of Phoenix • Planning & Development Department 
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882 
Committee Member Procaccini asked if it is possible to add trees to the elevated 
surface parking and then suggested that they consider adding more curves into the 
design in tribute to the Phoenix Financial Center. Mr. Wilson stated that they will need 
to explore whether trees are viable given the structural limitations of the parking 
structure. He stated that plants and shrubs will be viable and that there will be structural 
shade for vehicles on the elevated surface parking area. 
 
Vice Chair Rodriguez asked if staff expressed concerns about the project. Mr. Wood 
responded that they have worked closely with staff regarding the site plan and its 
interfaces with the public streets and with the Phoenix Financial Center. 
 
Vice Chair Rodriguez asked Klimek to confirm that members of the VPC can 
recommend stipulations. Klimek confirmed. Vice Chair Rodriguez suggested that a 
parking maximum is appropriate for this site and be added to the committee’s 
recommendation. 
 
Chair Kleinman asked Wood if the inclusion of unreserved parking in exchange for the 
displaced surface spaces was a condition of the property purchase. Mr. Wood 
confirmed that they are obligated to include 120 unreserved spaces in exchange for the 
384 surface spaces that will be displaced. 
 
Committee Member Schiller asked if the retail referenced in the site was onsite or if 
was located on the site of the adjacent Phoenix Financial Center. Mr. Wood confirmed 
the latter. 
 
PUBLIC COMMENTS 
 
Chair Kleinman identified a raised hand in the audience and asked Klimek if anyone 
from the public had registered to speak and, if not, whether the committee can elect to 
hear a comment. Klimek confirmed that no one had registered to speak but that the 
Chair has the discretion to invite public comment. Chair Kleinman invited John Glenn 
to address the committee. 
 
Mr. John Glenn introduced himself, greeted the committee, and expressed his support 
for the project.  
 
APPLICANT RESPONSE 
 
Mr. Wood stated that there were many hurdles associated with the site but explained 
that he feels the project complements the Phoenix Financial Center in both design and 
layout and maximized the density on this infill parcel. 
 
Vice Chair Rodriguez asked for an explanation of how the parking supply is calculated 
including the preserved parking for the Phoenix Financial Center, the displaced parking 
at surface level, the unreserved parking to offset a portion of the displaced parking, and 
the total supply of parking for residential uses. Wood summarized the parking

Encanto Village Planning Committee Meeting Summary 
August 1, 2022 
Page 5 of 5 
 
 
City of Phoenix • Planning & Development Department 
200 West Washington Street, 3rd Floor • Phoenix, Arizona 85003-1611 • (602) 262-6882 
calculations including conditions of the sale. Chair Kleinman asked for confirmation 
that the proposal adds 335 dwelling units, removes 379 spaces, and adds 499 spaces. 
Mr. Wood confirmed. 
 
Vice Chair Rodriguez invited other members of the committee to learn more about the 
impact of parking supply on housing costs. 
 
FLOOR/PUBLIC DISCUSSION CLOSED: MOTION, DISCUSSION, AND VOTE 
 
Chair Kleinman asked Vice Chair Rodriguez if she would like to make a motion. Vice 
Chair Rodriguez declined. 
 
MOTION 
Chair Kleinman made a motion to approve the request per the staff recommendation. 
Committee Member Jewett seconded.  
 
DISCUSSION 
None. 
 
VOTE 
7-3-0; motion passed with Committee Members Bryck, Jewett, Mahrle, Matthews, 
Procaccini, Schiller, Wagner, and Chair Kleinman, in support, Committee Members 
Cothron, George, and Vice Chair Rodriguez in dissent, and none in abstention.