PLZM-25-0107_-_Project_H20_Rezone_Modification_of_Stipulations_-_Staff_Report_- PZ20260210.docx
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PLZM-25-0107 – Project H20 Rezone Modification of Stipulations – February 10, 2026 Page 1 of 6 Modification of Stipulations Report to the Planning and Zoning Commission CASE NUMBER: PLZM-25-0107 TITLE: Project H2O Rezone Modification of Stipulations MEETING DATE: February 10, 2026 Applicant: Christy McDonough, on behalf of Phoenix Hydrogen Hub LLC Request: Modify Ordinance 18-23 to remove requirement that site may only develop as a hydrogen gas production facility Council District: 2 Location: Approximately 4,700 feet west of the northwest corner of State Route 85 and Patterson Road Site Size: Approximately 158 acres Public Input: None received Recommendation: Conduct a Public Hearing and recommend approval of Case PLZM-25-0107 (Project H2O Rezone Modification of Stipulations) to the Mayor and City Council, to modify conditions of Ordinance No. 18-23 to conditions (a) through (k) as modified below PLZM-25-0107 – Project H20 Rezone Modification of Stipulations – February 10, 2026 Page 2 of 6 PROJECT DESCRIPTION: 1. Ms. Christy McDonough, on behalf of Phoenix Hydrogen Hub LLC is requesting approval to remove stipulation “a” and modify stipulations “b” and “d” of Ordinance No.18-23. When it was adopted, Ordinance No. 18-23 codified the rezoning of approximately 158 acres from Single-Family 43 (SF-43) to Heavy Industrial (I-2). The purpose of the rezoning was to allow a hydrogen gas production facility, along with ancillary components. The applicant is seeking these modifications to allow the property, which is now within the I- 2 zoning district, to develop for expanded industrial uses and not be limited to hydrogen production. AREA CONTEXT: 2. Table 1: Existing Land Use, General Plan Designation, and Zoning District: PUBLIC PARTICIPATION SUMMARY: 3. A neighborhood meeting, providing an opportunity for interested parties to learn more about the request, was held on December 11th, 2025, at 6:00 P.M. at Heritage Cafe, 409 Monroe Avenue. As required by Buckeye Development Code, written notices to property owners within 500 feet of the subject site were mailed on November 26, 2025, over fifteen (15) days prior to the date of the meeting. Present at the meeting were two representatives of the applicant and one City staff member. No members of the public attended the meeting 4. No members of the public contacted the applicant with concerns regarding this request. The Arizona Department of Transportation, which owns property to the east of the LAND USE GENERAL PLAN ZONING Subject Property Agriculture Employment Heavy Industrial (I-2) North Agriculture Rural Single-Family Residential (SF- 43) South Fallow Farmland Employment General Commerce (GC) East Agriculture Rural Single-Family Residential (SF- 43) West Agriculture Rural Single-Family Residential (SF- 43) PLZM-25-0107 – Project H20 Rezone Modification of Stipulations – February 10, 2026 Page 3 of 6 subject site, acknowledging receiving the mailed notice. Staff has also not received any written or verbal feedback from the public pertaining to this request. 5. All required notifications of this public hearing were completed at least fifteen (15) days in advance of the meeting date, as follows: Notification Element Date West Valley View January 21, 2026 Site Posted January 20, 2026 Mailing Notice to Property Owners Within 500 Feet of Site January 21, 2026 BACKGROUND: 6. April 2010: The subject property, along with additional properties comprising 920.83 acres in sum, was annexed into the City of Buckeye by Ordinance 04-10. The property was assigned initial City Single-Family Rural Residential (SF-43) zoning. 7. April 2018/August 2018: City Council approved the Imagine Buckeye General Plan 2040, designating the subject site as Rural on the future land use map. Voters ratified the approved General Plan in August that same year. 8. May 2023: City Council adopted Resolution 29-23 which amended the land use designation of the subject site from Rural to Employment. The site remains designated as Employment. 9. May 2023: City Council adopted Ordinance No. 18-23 to rezone the subject property from SF-43 to I-2, with conditions “a” through “k”. At the time, the then-owner intended to develop a hydrogen production facility on the site, which was reflected in the conditions of approval attached to this Ordinance. The I-2 zoning with the hydrogen-focused conditions remains in place today. ANALYSIS: 10. The General Plan Future Land Use Map designates the subject property as Employment. Employment is the appropriate land use designation for Heavy Industrial (I-2) zoning. 11. The proposed modification of stipulations removes the restriction that the property develops as a hydrogen production facility, allowing for any use that is permitted within PLZM-25-0107 – Project H20 Rezone Modification of Stipulations – February 10, 2026 Page 4 of 6 the Heavy Industrial (I-2) zoning district. The I-2 zoning would remain consistent with the General Plan. 12. The subject site is surrounded by a larger 920-acre parcel under like ownership as the subject property. The General Plan designates the 920 acres as Rural. The applicant has indicated that eventually this property will function in correlation with the subject site. At that time the greater 920-acre parcel will have to go through a Major General Plan Amendment to amend the future land use designation to Employment. Alternatively, the land use designation could be amended via the ten-year General Plan update anticipated in 2028. Beyond the land designated as rural the site is surrounded by employment on the north, east, and south, making industrial uses on the site consistent with the General Plan land use designations for the surrounding area. 13. The applicant team has an active site plan in review for an APS substation on the subject property. The applicant has indicated that the eventual development of the site is likely to include a data center campus, which is what the substation will primarily serve. As of writing this staff report there have not been any additional plan submittals for data centers on the site. A data center is allowed as a conditional use within the I-2 zoning district and would require Conditional Use Permit (CUP) approval by the Planning and Zoning Commission and administrative site plan approval. Expansion of the data center use, or any industrial use, beyond the subject 157 acres will require additional rezoning of the surrounding property in conjunction with or following the General Plan Amendment. RECOMMENDATION: 14. Staff recommends the Planning and Zoning Commission hold a public hearing and recommend approval of the Project H20 Rezone Modification of Stipulations (Case PLZZ- 25-0107), with recommended modified stipulations “a” through “l” for the following reasons: The modification of stipulations will allow for diversified industrial development that can utilize available and planned electrical infrastructure on and near the site. The proposal is consistent with the General Plan and will allow development of the site consistent with planned future land use patterns for the area. There are no outstanding issues for reviewing departments (Engineering, Fire, Public Works, Community Services, Police, Water Resources, and Development Services). PLZM-25-0107 – Project H20 Rezone Modification of Stipulations – February 10, 2026 Page 5 of 6 a. Development of the property shall be in general conformance with the Project Narrative entitled “Project H2O Rezone Modification of Stipulations Request” project narrative consisting of seven pages, dated December 9, 2025, and stamped received December 10, 2025, except as modified by the following conditions. b. Additional stipulations pertaining to development of the site will also be provided as part of the project’s Site Plan review. c. The property owner/s and their successor waive any and all claims for diminution in value of the property with regard to any action taken by City of Buckeye as result of this approval. d. Prior to issuance of any permits for development, the developer shall submit, and the Buckeye Fire Department shall approve, an emergency response plan related to future operation of the site. e. This project is subject to a Street Light Improvement District (SLID) in accordance with City of Buckeye Ordinance 43-05. The SLID shall be established prior to the recordation of a plat or minor subdivision as determined in the SLID guidelines, and submitted with the plat/minor subdivision or before. f. All trash shall be collected through a City of Buckeye licensed trash hauler, including construction debris. Trash enclosures shall be in accordance with City of Buckeye standards. g. All stormwater plans must meet the requirements of the City of Buckeye’s MS4 permit as issued by ADEQ (Permit Number AZG2016-002). h. The Buckeye Fire Chief and City Engineer shall determine the number, location, and types of all fire hydrants. i. All buildings shall be equipped with a fire protection system as required by City of Buckeye Ordinance 03-22. j. Prior to delivery of any combustible materials to the site, fire protection systems shall be completely operational, with proper fire flow, and in accordance with the plans approved by the Buckeye Fire Chief and City Engineer. k. Where two fire apparatus access roads are required, they shall be placed a distance apart equal to not less than one half of the length of the maximum overall diagonal dimension of the lot or area to be served, measured in a straight line between accesses. l. Adherence to the following Transportation and Traffic Stipulations: i. Prior to approval of a site plan or pre-plat, a Traffic Impact Statement is required to be submitted and approved. This should give both construction traffic daily and peak hour volumes along with after the site is developed. PLZM-25-0107 – Project H20 Rezone Modification of Stipulations – February 10, 2026 Page 6 of 6 ii. Coordination with ADOT will be required. They may require analysis of intersections in a TIA. iii. The access off 283rd Avenue may be full access in the interim but will be restricted to Right-in/Right out or a ¾ access in the future when 283rd Avenue is fully built out. iv. Prior to the release of any civil permit, the Property Owner/Developer shall pay a pro rata share cost of up to nine (9) regional future traffic signals to be installed within this section of land. The pro rata share is based on a ratio of the project acreage to the developable acreage within the section. The sectional contribution is to be based on the following allocation of costs: (i) 25 percent share of four (4) possible signals at arterial street intersections; (ii) 50 percent share of four (4) possible signals at half-mile collector street intersections or project entries; and (iii) 100 percent share of one (1) possible signal internal to this project. The cost shall be based on an anticipated signal cost as determined by the City. v. In the event that access to and within the project is deemed a threat to public safety and security by the City, the City has broad authority to take such action as it deems necessary to address such a threat until such time as the Property Owner/Developer eliminates the safety concerns to the City’s satisfaction. The Property Owner/Developer is responsible for revising the roadway and access layout to alleviate the City’s concerns with respect to public safety and security. Any such changes will be considered a minor change to existing site plan approvals and shall be approved by the City. ATTACHMENTS: Exhibit A – Vicinity Map Exhibit B – General Plan Land Use Map Exhibit C – Existing Zoning Map Exhibit D – Narrative Exhibit E – Citizen Participation Report Prepared By: Joseph Mueller, Senior Planner Reviewed By: Ken Galica, Planning Manager