PLZZ-26-0012 - Cloud Cap Rezone - Staff Report - PZ20261027.docx
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REZONE Report to the Planning & Zoning Commission CASE NUMBER: PLZZ-26-0012 TITLE: Cloud Cap Energy Storage Rezone MEETING DATE: October 27, 2026 Applicant/Owner: Isabelle Zollinger of Invenergy on behalf of property owner Verrado Energy Center LLC Request: Rezone from Planned Community (PC) to Single Family Residential 43 (R1-43) District: 4 Location: Approximately one-half mile west of the northwest corner of Sun Valley Parkway and 291st Avenue and south of the Sun Valley Substation (Exhibits A, B, and C) Site Size: Approximately 57.4 acres Public Input: No public comments have been received to date. Recommendation: Conduct a Public Hearing and Recommend approval to Mayor and City Council, subject to conditions a) through h) Case PLZZ-26-0012 – Cloud Cap Energy Storage Rezone Page 1 of 6 PROJECT DESCRIPTION: 1. Isabelle Zollinger of Invenergy, on behalf of property owner Verrado Energy Center LLC, is requesting approval of a Rezone of 57.4 acres located approximately one-half mile west of the northwest corner of Sun Valley Parkway and 291st Avenue, south of the Sun Valley Substation, from Planned Community (PC) to Single Family Residential 43 (R1-43) to facilitate development of a battery energy storage system (BESS) project called Cloud Cap Energy Storage. The applicant’s Rezone narrative is included as Exhibit D. 2. The R1-43 district permits BESS facilities subject to the Planning and Zoning Commission’s approval of a Conditional Use Permit (CUP). A companion Conditional Use Permit (case number PLZU-26-0010) to allow the proposed BESS use has been submitted for review. The CUP cannot be approved unless the Rezone is approved. 3. A Minor Subdivision (case number PLZS-26-0032) to subdivide the subject parcel has also been submitted for review but is not contingent on the approval of the land use cases. 4. Following Planning & Zoning Commission’s recommendation, the proposed Rezone is anticipated to be scheduled on the November 17, 2026 City Council public hearing agenda for consideration of approval. AREA CONTEXT: 5. Table 1: Existing Land Use, General Plan Designation, and Zoning District: LAND USE GENERAL PLAN ZONING Subject Property Vacant Rural Planned Community (PC) North APS Sun Valley Substation Rural Planned Community (PC) Planned Community (PC) Master Planned South Vacant with Sun Valley Villages I and Community II CMP Overlay Vacant (proposed Planned Community (PC) Master Planned East Beeswax Energy Storage with Sun Valley Villages I and Community project) II CMP Overlay West Vacant Rural Planned Community (PC) PUBLIC PARTICIPATION SUMMARY: 6. A neighborhood meeting, providing an opportunity for interested parties to learn more about the proposed Rezone and accompanying Conditional Use Permit (CUP) request, was held on June 25, 2026 from 4:00 to 8:00 PM at the Festival Foothills Elementary School. The Buckeye Development Code requires written notices to property owners within 500 feet of the subject Case PLZZ-26-0012 – Cloud Cap Energy Storage Rezone Page 2 of 6 site; the applicant team chose to exceed the mailing radius requirement and mailed written notices to all property owners within 1,500 feet of the subject site on June 8, 2026, at least 15 days prior to the date of the meeting. Note that the same extended mailing radius of 1,500 feet was used for the public hearing mailing notices. 7. The neighborhood meeting was also advertised in the Arizona Business Gazette Republic Edition, a decision made by the applicant team but not required by the Buckeye Development Code. 8. Attendees included representatives from the applicant’s project team, City staff, and one Buckeye resident (an employee of Invenergy). No members of the general public attended the meeting. 9. All required notifications were completed at least 15 days in advance of the Planning & Zoning Commission public hearing date, as follows. 10. Table 2: Public Notices: Notification Element Date Published Notice October 9, 2026 Site Posting October 9, 2026 Mailing Notice to Property Owners October 9, 2026 11. No formal feedback, opposition, or support for the Rezone has been received as of the date of this staff report. Refer to Exhibit E, the Citizen Participation Report compiled by the project team, for more information. BACKGROUND: 12. August 16, 1990: The subject property was annexed into the Town of Buckeye under Ordinance #9-90. 13. August 19, 1996: The subject property, along with many additional properties in the surrounding area, were zoned Planned Community (PC) through approval of Ordinance #6- 96. 14. November 17, 2026 (anticipated): City Council is scheduled to consider adoption of an ordinance approving the proposed Rezone for this subject property. ANALYSIS: Conformance with the General Plan Case PLZZ-26-0012 – Cloud Cap Energy Storage Rezone Page 3 of 6 15. The existing land use designation of the subject property is Rural, which denotes areas that have large-lot residential development in natural desert areas, agricultural areas, or surrounding open space areas. Development in this designation should retain the rural character of the area and be relatively low in density. 16. The proposed R1-43 District is intended for low-density and/or low-intensity development and thus is compatible with the Rural land use designation, as noted in the General Plan and in Table 2.1-1 of the Development Code. Land Use and Zoning 17. The current zoning of the property (the obsolete PC District) lacks a corresponding CMP Overlay. Per Section 2.9.4 of the Development Code, land zoned PC without an approved PAD or CMP Overlay District may be converted to the R1-43 District, and such a conversion (PC to R1-43) is expressly deemed compatible with the General Plan. 18. Furthermore, the requested R1-43 zoning aligns with the subject property’s future land use designation of Rural. The R1-43 District allows for low-density residential development and other uses consistent with the rural character of the area. The uses permitted by right within the district are compatible with the surrounding land use designations, including the future residential development anticipated within the adjacent Sun Valley Villages I and II CMP. 19. The proposed BESS use is permitted in the R1-43 zoning district subject to the Planning and Zoning Commission’s approval of a Conditional Use Permit (CUP). The CUP process is intended for uses with unique or widely varying characteristics or development features, to ensure the proposed use does not result in adverse impacts on the community at large. As previously noted in this report, a companion CUP case has been submitted and is under review by City staff. The case cannot be approved unless the Rezone is approved. Future Development & Infrastructure 20. A future administrative Site Plan review will be required for the Cloud Cap Energy Storage project. The Site Plan review will evaluate compliance with applicable development standards, including site layout, setbacks, screening and landscaping, site access, internal circulation, and other applicable design and infrastructure requirements. Particular emphasis will be placed on ensuring adequate screening of the BESS facility from surrounding properties and public rights-of-way. A Site Plan for BESS cannot be approved unless the Rezone and subsequent CUP are approved. 21. The developer will be responsible for completing all water and sewer infrastructure improvements, if any, needed to serve the proposed development, the extent of which will be determined when a Site Plan is approved for the project. Case PLZZ-26-0012 – Cloud Cap Energy Storage Rezone Page 4 of 6 22. The property will be serviced by City of Buckeye Police and Fire Departments. The nearest fire station (Fire Station #704) and police station are located on the southwest corner of Beardsley Parkway and Desert Oasis Boulevard, approximately four roadway miles from the subject property. 23. As indicated in the conditions of approval, the developer will be responsible for dedicating right-of-way for the future Beardsley Parkway when requested by the City – full details to be determined when a Site Plan is approved for the project. A Traffic Impact Analysis will also be required prior to Site Plan approval. 24. The property is located within the Wickenburg Unified School District; however, the Rezone and Cloud Cap Energy Storage project will not impact local school capacity. 25. The following City of Buckeye departments have reviewed the application and have no objections to approval, subject to the recommended conditions of approval: a. Development Services, including Planning, Engineering/Survey, and Transportation b. Fire c. Public Works d. Water Resources RECOMMENDATION: 26. Staff recommends the Planning & Zoning Commission conduct a public hearing and recommend approval of a Rezone from Planned Community (PC) to Single Family Residential 43 (R1-43) for Cloud Cap Energy Storage (case number PLZZ-26-0012) to the Mayor and City Council, subject to conditions a) through h), for the following reasons: The Rezone furthers goals of the Buckeye General Plan; The Rezone conforms to the Buckeye Development Code; and Reviewing City departments have no objections to approval, subject to the recommended conditions of approval. General a) 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 a result of this approval. Transportation/Traffic b) Areas identified as “no-build” on the site plan (Beardsley Parkway alignment; 140’ of future ROW area) are reserved for future right of way and roadways in the areas defined and shall not be built upon. The ROW for those locations shall be dedicated when requested by the City when deemed necessary to build the roadways. Case PLZZ-26-0012 – Cloud Cap Energy Storage Rezone Page 5 of 6 c) 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. The signal fee will be for the entire parcel of development regardless of any lots that may be split into different parcels as with this multi pad commercial development. d) Prior to approval of a site plan or pre-plat, a Traffic Impact Analysis is required to be submitted and approved including construction traffic. All requirements of the Traffic Impact Analysis shall be reflected on the approved construction drawings. e) All non-regional traffic signals that are required by this project shall be funded and constructed by this project prior to C of O. f) All regional traffic signals required by this project shall be constructed by this project prior to C of O. This may have a reimbursable component from the regional signal fees collected by the City from other parcels per City Engineer approval. g) All medians required for controlling site access (RI/RO, ¾ (RI/RO/LI)) shall be constructed with this development. h) Driveway spacing and storage requirements shall be per Table 1 of the COB Engineering Design Standards (EDS) Section 6-3. ATTACHMENTS: Exhibit A – Vicinity Map Exhibit B – General Plan Land Use Map Exhibit C – Zoning Map Exhibit D – Rezone Narrative Exhibit E – Citizen Participation Report Prepared By: Mandy Woods, AICP, CFM, Principal Planner Reviewed By: Ken Galica, Planning Manager Case PLZZ-26-0012 – Cloud Cap Energy Storage Rezone Page 6 of 6