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ITEM 7.c. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 5/11/2026 Meeting Type: Planning and Zoning Commission Regular Meeting Submitting Department: Development Services Prepared by: John Wesley, Development Services Director Staff Contact Information: Phone: 480-816-5138 Email: jwesley@fountainhillsaz.gov Request to Town Council Regular Meeting (Agenda Language) PUBLIC HEARING, with CONSIDERATION AND POSSIBLE ACTION: Relating to Ordinance 26-10 amending Zoning Ordinance Chapter 10, Single-family Zoning Districts, to add Section 10.025, Uses Permitted by Special Use Permit, and Chapter 11, Multifamily Zoning Districts, to amend Section 11.03, Uses Permitted by Special Use Permit, to add provisions for office uses in residential zoning districts. Staff Summary (background) Staff has recently been working with the Fountain Hills Unified School District to consider possible re-uses of under-utilized and vacant school buildings. Through that review and discussion, staff realized that with changing demands for schools and other existing non- residential uses established in residential zoning districts, there is a need in the zoning ordinance to provide for viable alternative uses for these buildings. As an example, the former McDowell Mountain school has been under-utilized for a number of years. It is located in a residential neighborhood. Under the current R1-8 zoning designation, reuse of the building is limited. Given the location in the middle of a single- family neighborhood, rezoning to a commercial or multifamily zoning district is challenging. Given these challenges, staff is proposing a zoning text amendment to provide a mechanism to allow consideration of office uses in existing nonresidential buildings in residential zoned areas. The attached ordinance provides the opportunity for consideration of a Special Use Permit to allow approval of uses in the C-O, Office District, with the listed conditions. Changes are being proposed for both the single-family and multifamily zoning districts. Chapter 10, Single Family Zoning Districts, does not currently have any provisions for Special Use Permits. Therefore, in this chapter, a new section is being added, Section 10.025. Chapter 11, Multi-family Zoning Districts, has a section for Special Use Permits, so this section is being amended to allow the new use. The provisions being added in both chapters are the same. The proposed requirements as provided in Chapter 10 are: Section 10.025 Uses Subject to Special Use Permit A. Uses permitted in the C-O zoning district subject to the following conditions and requirements: 1. Minimum lot size: 2 acres 2. There must be existing non-residential development and historic non-residential use of the property. 3. Uses are limited reuse of existing buildings. No expansion of footprint, no new detached structures, and no outdoor storage shall be permitted unless specifically approved as part of the special use permit. 4. Signage. Except as may be specifically approved as part of the special use permit, no exterior signage visible beyond the property line. 5. Outdoor activity. No outdoor activity except for playground or sports activities for children. 6. Traffic, parking, and circulation. The use shall provide adequate on-site parking, safe pick-up and drop-off operations, and circulation designed to avoid material traffic, queuing, or safety impacts on adjacent residential streets. 7. Hours of operation. Unless otherwise specified in the approval of the special use permit, the hours of operation are limited to 7:00 am – 6:00 pm., Monday through Friday. 8. Approval shall be limited to the applicant requesting the special use permit and shall not be transferable. Uses permitted in the C-O zoning district are: 1. Any business office in which chattels or goods, wares, or merchandise is not commercially created, repaired, sold or exchanged. 2. Offices for: a. Accountant b. Advertising agency c. Architect d. Business Association e. Chiropodist f. Chiropractor g. Collection Agency h. Dentist i. Engineer j. Geologist k. Insurance broker l. Lawyer m. Labor Union n. Marriage Counselor o. Minister p. Naturopath q. Optometrist r. Osteopath s. Physician t. Private Detective u. Private Employment Agency v. Professional Membership Organization w. Public Stenographer x. Real Estate Broker y. Surgeon z. Surveyor aa. Talent Agency bb. Telephone Message Service cc. Other similar professional and semi-professional work. 3. Banks, building and loan associations, savings and loan associations, credit unions, finance companies, and investment companies. 4. Studios for photography, fine or commercial arts or other professional work. 5. Medical and clinical laboratories. 6. Post office. 7. Pharmacy, when in conjunction with a medical center consisting of offices occupied by five (5) or more doctors provided that there shall be no outside entrance for business purposes, and that no sign or display be located so as to be visible from a public thoroughfare or adjacent property. 8. Single and multifamily residential dwellings, subject to special use permit. Reviewing the Town's maps, staff have identified 11 parcels that could be impacted by this zoning provision. Four are school properties, one is the Boys and Girls Club parcel, and the other six are churches. In summary, this text amendment would allow the property owner of a residentially zoned property that has a non-residential building and has a history of being used for a non- residential use (typically a church or school), to apply for a SUP to allow an office use to occupy some or all of the existing building. The review of the SUP will require the same citizen participation process and public hearings as all other SUP's so the public will have the opportunity to be informed of the potential use and attend the hearings before the Planning and Zoning Commission and Town Council. Related Ordinance, Policy or Guiding Principle Zoning Ordinance Chapter 10, Single Family Zoning Districts Zoning Ordinance Chapter 11, Multi-family Zoning Districts Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends adoption of Ordinance 26-10. Suggested Motion MOVE TO recommend adoption of Ordinance 26-10. FISCAL IMPACT Fiscal Impact: Budget Reference: Funding Source: ATTACHMENTS 1. ORDINANCE NO 26-10