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ITEM 9.d. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 4/21/2026 Meeting Type: Town Council Regular Meeting Submitting Department: Development Services / Planning Prepared by: Farhad Tavassoli, Senior Planner Staff Contact Information: Phone: 480-816-5139 Email: ftavassoli@fountainhillsaz.gov Request to Town Council Regular Meeting (Agenda Language) PUBLIC HEARING, with CONSIDERATION AND POSSIBLE ACTION: Regarding the REZONE of approximately 20 acres located approximately 600-feet south of the southeast corner of Golden Eagle Blvd. and Nyack Drive (APN 176-21-181) from R1-35 (35,000 sq. ft. lot size minimum) to R1-10A (10,000 sq. ft. lot size minimum) to allow development of 25 single-family residential lots. Staff Summary (background) Background The applicant, Toll Brothers, Inc., requests approval to rezone approximately 19.35 acres from R1-35 (Single-Family Residential) to R1-10A (Single-Family Residential) to allow development of a single-story, for-sale residential subdivision totaling 25 lots. The rezoning would permit lot sizes and development standards consistent with the adjacent R1-10 subdivisions while preserving a significant natural wash located on the western portion of the property. In 2024, the Fountain Hills Unified School District (FHUSD) initiated a public process to evaluate and dispose of two underutilized properties, including the subject parcel. Voters approved the sale in November 2024. FHUSD subsequently selected Toll Brothers as the preferred buyer and entered escrow following required public notice and statutory review. Sale proceeds will be used to support FHUSD’s educational mission. The property has remained vacant and previously served as a potential school site. The applicant notes that a school use would generate significantly more daily traffic than the proposed residential development. A traffic trip comparison prepared for the applicant indicates approximately 310 fewer daily vehicle trips with the proposed single-family subdivision than with a charter elementary school. Existing Conditions The property is vacant and bordered by established single-family neighborhoods. A large natural wash, approximately 9 acres and nearly half of the site’s total area, traverses the western portion of the parcel. The wash functions as a drainage corridor and wildlife habitat. The applicant proposes to preserve the wash in its natural condition and dedicate an easement to protect its alignment. No homes will be constructed within the wash area. Existing Zoning The site is zoned R1-35 (Single-Family Residential). The applicant states that the existing zoning does not reflect the prevailing lot sizes in the area and does not allow a feasible or context-appropriate subdivision design given the natural wash and irregular buildable area. Proposed Zoning and Development Plan The applicant proposes to rezone the property to R1-10A to establish a residential subdivision that reflects the lot sizes and development patterns of the surrounding R1-10 neighborhoods while accommodating the site’s unique physical constraints. The R1-10A District provides the necessary flexibility to design lots around the substantial natural wash that traverses nearly half of the property and is planned to be preserved as open space. Under the proposed plan, all homes would be limited to a single story, despite the district permitting two-story construction, in order to protect existing views and maintain compatibility with nearby residences. It is important to note that the only substantive distinction between the R1-10A and R1-10 zoning designations is maximum lot coverage, with R1-10A allowing 40 percent coverage compared to the 30 percent permitted in R1-10, a difference that enables a more efficient and context-appropriate design for this constrained site. Typical lots would measure approximately 80 feet by 130 feet, with building envelopes of about 60 feet by 80 feet. The project includes the following R1-10A development standards, which the plan meets: • Front setback: 20 feet • Side setback: 7 feet • Street side setback: 20 feet • Rear setback: 20 feet • Maximum lot coverage: 40% • Minimum lot width: 80 feet Approximately 10 acres remain undisturbed, significantly reducing the developable land area. The resulting density is well below the maximum 4.35 du/ac allowed in the R1-10A district and comparable to the surrounding neighborhoods. The applicant initially submitted a proposal for 29 lots. Following multiple meetings with adjacent property owners, the applicant revised the plan to reduce the total number of lots to 25. The four removed lots were located in the northeast portion of the site, which is now designated as a 1.25 acre open space tract. This modification was formally presented at the Planning and Zoning Commission meeting on March 9, 2026. The attached applicant narrative reflects the original 29-lot proposal, and a separate attachment has been provided to depict the revised 25-lot plan. General Plan Conformance: The property is located within the Neighborhoods Character Area, which supports a range of single-family lot sizes and infill development. Staff finds the request consistent with the following General Plan goals and policies, as supported by the applicant’s narrative: Economic Development Element • Supports FHUSD through reuse of underutilized school district property. • Facilitates high-quality residential infill attractive to families and working professionals. Thriving Neighborhoods Element • Maintains compatibility with adjacent R1-10 neighborhoods through 1-story homes and appropriate setbacks. • Enhances neighborhood character and protects established views and privacy. • Provides safe, quality housing and connectivity to nearby services. Character Areas & Great Places • Utilizes an infill site with existing infrastructure. • Preserves natural washes as buffers and integrates the wash into site design as an amenity. Natural Resources / Open Space • Protects the natural wash as permanent open space, consistent with Town policy. Citizen Participation The applicant’s Citizen Participation Plan describes how Toll Brothers notified and engaged surrounding property owners, homeowners’ associations, and other interested parties regarding the proposed rezoning from R1-35 to R1-10A. Affected property owners within 300 feet, as well as agencies identified by Maricopa County, were sent mailed notice of a neighborhood meeting on January 20, 2026, during which the applicant presented the project and answered questions. Furthermore, the property was posted with a public notice sign on February 20. Both the neighborhood meeting and sign postings were done well prior to the minimum of 15 days required by the Town. The Citizen Participation Report describes the applicant’s outreach efforts for the proposed rezoning of the Aspen Drive property, including mailed notices to property owners within and slightly beyond the required 300-foot radius, distribution of materials to interested parties, and posting of two on-site signs as required by Town regulations. A neighborhood meeting was held on January 20, 2026, using an open-house format followed by a group Q&A session at residents’ request, with approximately 65 attendees participating. Throughout the process, the applicant and its representatives engaged in follow-up conversations with nearby residents (both before and after the meeting) to address questions related to density, subdivision design, traffic, drainage, wildlife, and view impacts, as well as to clarify commitments such as single-story homes and preservation of the on-site wash. Several residents expressed concerns about the proposed development, while others voiced support for aspects such as the project’s single-story design, wash preservation, and consistency with surrounding lot sizes. The report concludes that the applicant exceeded the Town’s participation requirements by providing additional outreach, follow-up meetings, and ongoing communication with both neighbors and Town staff. In the week leading up to the meeting, a resident submitted a petition containing 123 signatures protesting against the rezone request. Three additional respondents opposed the Toll Brothers proposal but indicated they were open to a rezoning. The Town also received six letters of support. At the Commission meeting, eight individuals submitted speaker cards in support of the rezone request, and seven submitted cards in opposition, although not all who completed speaker cards ultimately spoke. Under Section 2.01(F) of the Fountain Hills Zoning Ordinance, a rezoning request may require a super majority vote by the Town Council if certain protest conditions are met. When written protests are filed by the owners of 20 percent or more of the property (in number of lots and area) within the defined zoning area, which includes the subject site and all properties within 150 feet of its boundaries, the rezoning cannot be approved by a simple majority. Instead, the ordinance requires an affirmative vote of at least three fourths of all members of the Town Council for the rezoning to take effect. To be valid, written protests must be signed by the property owners. Based on a review of the petition and the locations of the property owners who signed it, the minimum threshold for requiring a super majority vote has not been met by the protests filed to date. Therefore, only a simple majority vote will be required for approval of the rezoning request. Analysis The proposed rezoning preserves the single-family residential use already permitted on the property while introducing lot sizes and architectural standards compatible with the surrounding neighborhood. The development approach reflects sensitivity to the site’s natural features by preserving the existing wash and designing the subdivision in a manner that respects environmental and topographical constraints. These preservation efforts necessarily concentrate the dwelling units on the eastern portion of the site while keeping the proposed gross density at approximately 1.29 du/acre. The preservation of the wash, combined with the applicant’s commitment to single-story homes, helps protect existing views and ensures a visually harmonious transition to adjacent residences. The project also offers needed housing options and generates fewer potential traffic impacts compared to the school district’s prior consideration of a new school on the site. Additionally, the redevelopment of former school district property supports broader community objectives by enabling reinvestment in local educational facilities, benefiting both the surrounding neighborhood and the Town as a whole. Related Ordinance, Policy or Guiding Principle Zoning Ordinance Section 2.01, Amendments or Zone Change Zoning Ordinance Section 2.08, Citizen Participation Zoning Ordinance Chapter 10 (Single Family Residential Zoning Districts) General Plan 2020, Thriving Neighborhoods and Character Areas Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) At its regular meeting on March 9, 2026, the Planning and Zoning Commission recommended approval of the rezoning request, subject to the four stipulations listed under the suggested motion. The Commission also advised the applicant to coordinate with the Public Works Department to evaluate potential traffic and pedestrian safety improvements along Aspen Drive. Following further review and discussion, Public Works staff determined that installing a sidewalk along Aspen Drive would be the most appropriate and feasible measure. A copy of the email is attached. Staff Recommendation(s) Staff recommends APPROVAL of Case RZ25-000002, a request to rezone approximately 19.35 acres from R1-35 to R1-10A, subject to the following stipulations: 1. A note shall be included on the Final Plat limiting homes to one story. 2. A note shall be included on the Final Plat that would establish a non- developable area for (at minimum) the area defined by the regulatory floodplain and erosion setback limits. 3. The total number of residential lots shall be 25 lots as depicted on the development plan dated March 4, 2026. 4. A sidewalk shall be constructed along the east side of Aspen Drive, spanning the full length of the subject property’s frontage. Suggested Motion Move to APPROVE the REZONE of approximately 20 acres located approximately 600-feet south of the southeast corner of Golden Eagle Blvd. and Nyack Drive (APN 176-21-181) from R1-35 (35,000 sq. ft. lot size minimum) to R1-10A (10,000 sq. ft. lot size minimum) to allow development of 25 single-family residential lots, subject to the following conditions: 1. A note shall be included on the Final Plat limiting homes to one story. 2. A note shall be included on the Final Plat that would establish a non- developable area for (at minimum) the area defined by the regulatory floodplain and erosion setback limits. 3. The total number of residential lots shall be 25 lots as depicted on the development plan dated March 4, 2026. 4. A sidewalk shall be constructed along the east side of Aspen Drive, spanning the full length of the subject property’s frontage. FISCAL IMPACT Fiscal Impact: N/A Budget Reference: N/A Funding Source: N/A ATTACHMENTS 1. ORD 26-07 2. Vicinity Map 3. Applicant Narrative (Original 29-lot proposal) 4. Illustrative Plan (Original 29-lot proposal) 5. Illustrative Plan (Revised 25-lot proposal) 6. Citizen Participation Plan 7. Citizen Participation Report 8. Email From Town Engineer to Applicant Regarding Aspen Dr. 9. Letters of Support (6) 10. 2nd Packet - REZONE25-000002 11. 1st Packet - REZONE25-000002