Extracted text (via pymupdf)
5812 characters
ITEM 9.f. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 4/21/2026 Meeting Type: Town Council 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 26-08, rezoning the area bounded by La Montana Dr., Saguaro Boulevard, and Avenue of the Fountains, to adopt the Downtown Overly District and to remove the existing Entertainment and Planned Shopping Plaza Overlay Districts to the area bounded by La Montana Drive, Palisades Boulevard, Saguaro Boulevard, and Avenue of the Fountains. Staff Summary (background) On September 2, 2025, the Town Council approved the new Downtown Overlay District. Following the approval of this new zoning overlay, staff began the process of rezoning the area to apply the new zoning district to the designated area. This proposed rezoning will remove the two existing overlays in the area bounded by La Montana, Palisades, Saguaro, and Avenue of the Fountains and apply the new Downtown Overlay as approved by Council to the area bounded by La Montana, Saguaro, and Avenue of the Fountains. Staff have processed this rezoning in the same manner as any other rezoning application. The steps have included: • Creating a Citizen Participation Plan. The Plan involved sending a letter to all property owners within the overlay area them of the rezoning process. Information was also posted on the Town's website, including a link to the new ordinance. As a result of the Citizen Participation notice sent to all property owners, staff received an email asking questions about some specifics of the new ordinance and restricting residential use of the ground floor in the Avenue District. There were no comments or questions about the actual rezoning, removing the existing overlays and replacing them with the new overlay. • Providing notice of the public hearing. Notices were mailed to all property owners in the area and within 300' of the area and signs were posted throughout the area on October 21, 2025. A notice has also been published in the newspaper on October 22 and 29, 2025. Each of these notices describe the action being proposed and provides the dates and times for the rezoning hearings that will be held by the Planning and Zoning Commission and the Town Council. As a result of the public notice which was sent, staff have received several emails and phone calls requesting additional information.These came primarily from residents north of La Montana. Staff have responded to the calls and emails and explained the change. Most of the residents' concerns have been satisfied. Some are concerned the increased employment use opportunity might spur new buildings in the area south of La Montana and those new buildings would be built at the maximum allowed height of 40 feet and block their views. It should be understood, the 40' building height is in the base C-2 zoning district which applies today and is not changed with the overlay. One property owner within the area raised a concern about the new overlay establishing a built-to line. The new overlay district was drafted and approved based on the goals of the new Downtown Strategic Plan to bring increased residential density, additional employment opportunities, and entertainment activities to the downtown area. The issue before the Commission at this time is not about any of the provisions contained within the new overlay district. The issue is whether or not to remove the existing overlays and replace them with the newly adopted overlay district. The new district implements the goals for the area by increasing the allowed residential density by right from 8 units per acre, adds employment options for the area north of Palisades, and facilitating active uses along the Avenue over time. The Town Council held a public hearing to consider this rezoning action on December 16, 2025. At that meeting, several residents expressed concerns with the residential density provided in the overlay. Following discussion, the Council voted to return the overlay district ordinance to the Planning and Zoning Commission for consideration of amending the allowed density. A separate item is on the Council agenda to consider and approve any amendments to the overlay district. Adopting this rezoning will adopt the overlay district as amended by the Council. Related Ordinance, Policy or Guiding Principle General Plan, Downtown Character Area General Plan, Economic Development Element, Goal 1, Policies 1 and 2 Community Economic Development Strategy Resolution 2024-28, Downtown Strategy Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) The Planning and Zoning Commission held a public hearing and received comments on this application at their regular meeting on November 10, 2025. Two citizens spoke and expressed concerns regarding potential impacts of employment development and activities on their residences north of La Montana. Commissioners reviewed other ordinance provisions on light and noise that will help mitigate any possible negative impacts. Following the hearing and discussion, the Commission voted 5-1 to recommend approval of the rezoning. Staff Recommendation(s) Staff recommends adoption of Ordinance 26-08. Suggested Motion MOVE TO approve Ordinance 26-08. FISCAL IMPACT Fiscal Impact: N/A Budget Reference: N/A Funding Source: N/A ATTACHMENTS 1. Ord 26-08 Rezoning 2. Citizen Participation Plan 3. Citizen Participation Report