Staff Report

Town of Fountain Hills — Planning & Zoning Commission (2026-04-13)

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ITEM 7.b. 
 
TOWN OF FOUNTAIN HILLS 
 
STAFF REPORT 
 
Meeting Date: 
4/13/2026 
Meeting Type: 
Planning and Zoning Commission 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: Relating to a 
SPECIAL USE PERMIT to allow up to six (6) residential units on a 6,000 square-foot 
property generally located 150 feet west of the southwest corner of Saguaro Blvd and 
Parkview Ave. (16865 E. Parkview Ave.; APN#176-06-099) in the C-2 (Intermediate 
Commercial) zoning district. 
 
Staff Summary (background) 
This request is for development on a 6,000 sq. ft. lot on Parkview Avenue, west of Saguaro 
Blvd. The area was originally plated in 1971 as Plat 208, and the boundaries of the subject 
property has since remained unchanged. The property is zoned C-2 (Intermediate 
Commercial) and is also within the Planned Shopping Plaza and Entertainment Overlay 
Districts.  
 
The applicant requests a Special Use Permit to construct a three-story, mixed-use building 
consisting of approximately 1,000 square feet of ground-floor commercial space and six (6) 
residential units above. Each residential unit is configured as two-bedroom, two-bath layouts 
ranging from approximately 1,300 to 1,400 square feet, with private balconies and central 
stair/elevator access. Each residential unit will include a private, one-car garage accessed 
from the rear of the property via the internal Tract 208 circulation network. These garages are 
designed to reduce demand on shared and public parking while providing secure, enclosed 
parking for residents. The site is located within the Town Center area, approximately 500 feet 
north of the northwest corner of Avenue of the Fountains and Saguaro Blvd. 
 
This property is currently vacant. The lot has a platted 5-foot front yard setback and a 20-foot 
rear yard setback. Five existing parking spaces are located on the site and will remain. To 
accommodate the proposed 10-foot setback along the south property line, the lot will need to 
be replatted to reduce the existing platted setback from 20 feet to the proposed 10 feet. The 
garage doors will face west and will be set back 6 feet from the driveway to provide adequate 
clearance and ensure maximum visibility of traffic between Parkview Avenue and the 
common parking area. 
 
The site has remained undeveloped since it was originally platted in 1971. Consistent with similar 
recent proposals in the area, this project introduces a mixed-use component to Plat 208. The 
building features a contemporary, desert-appropriate material palette, including a stone veneer 
base at the ground level, fiber-cement lap siding, EIFS cladding with decorative reveals, and 
aluminum-and-glass storefront systems along the commercial frontage. The upper-level

residential units incorporate large window openings, metal trim accents, and balcony railings with 
glass or cable systems. The overall massing and material selection are intended to create visual 
interest along the street frontage while ensuring durability and compatibility with the surrounding 
context. 
 
General Plan 
• Our Commitment, page 13: Maintain the delicate balance of land uses that make the 
Town a desirable place to live, work, enjoy and visit. 
• Our Commitment, page 13: Support existing businesses and continue to attract 
businesses that stimulate the Town’s economy. 
• Our Vision, page 14: Residents enjoy a walkable community that is conducive to civic 
involvement and activities. 
• Our Vision, page 14: A variety of housing options are available in safe, quiet, 
pleasant, and enjoyable neighborhoods. 
• Thriving Neighborhoods Goals and Policies, page 23 
o Goal 2: Support a housing strategy that encourages a broad range of quality 
housing types to address current and future housing needs and to support long-
term economic vitality. 
▪ Policy 1. Encourage a broad range of housing types affordable to all 
income ranges and age groups in a manner compatible with adjacent 
development. 
▪ Policy 2. Encourage a range of housing types and residential densities 
and maintain consistency with the existing character of infill areas in 
conformance with criteria provided in Table 1: Character Areas Plan. 
▪ Policy 4. Encourage quality urban, compact, walkable mixed-use 
development that complements surrounding uses in the Town Center 
and in other areas that may become available for urban development. 
▪ Policy 6. Support quality residential development that meets Town 
housing needs, promotes the vitality of established neighborhoods, and 
enhances the quality of life of Fountain Hills. 
 
o Goal 4: Attract quality residential development that supports the healthy and active 
lifestyle valued by the community. 
• Policy 1: Ensure that new neighborhoods: 
▪ a. Sensitively and aesthetically integrate residential development to the social, 
built and natural environments by supporting neighborhood connectivity to 
Fountain Hills’ Great Places. 
▪ Character Area Goals and Polices, page 38 
o Goal 1: Encourage future development, redevelopment and infill in a manner that 
will maintain and protect existing neighborhoods, the Town’s economic health, 
community well-being, and natural environment. 
▪ Policy 4. Direct commerce and employment to the character areas that sustain 
them in conformance with the Character Areas Plan map and Table 1. 
o Goal 2: Development, redevelopment and infill support Fountain Hill’s small town

identity and the distinct character of each area while fostering long term viability. 
▪ Policy 3. Support a mix of residential, employment, and commercial uses at 
densities and intensities and in the development form that reflect the small-
Town character of Fountain Hills. 
▪ Policy 5. Strongly encourage a wide range of housing types, densities and prices 
to support the current and projected populations (particularly families and 
working professionals) and to ensure the future stock of affordable housing for 
all income ranges. 
 
This is in the Town Center character area. The General Plan statement for this area is: 
"Continue to develop a highly integrated mix of uses to provide a vibrant town center. 
Encourage development with an urban form with buildings brought to the street forming a 
continuous street wall. Encourage active ground floor uses with a high degree of transparency 
and office and residential above." 
 
The 2009 Specific Area Plan for the Avenue District includes the statement: "The Avenue 
District is designed to accommodate a degree of other uses including second story office 
space, condominiums and small-scale businesses along with limited neighborhood services." 
 
Zoning Ordinance Requirements 
The property at 16865 E Parkview Avenue is zoned C-2 (Intermediate Commercial) and is 
located within both the Entertainment Overlay District and the Planned Shopping Plaza 
Overlay District. While the C-2 zoning district allows a variety of commercial uses by right, 
residential uses above the ground floor are permitted through the Special Use Permit process 
when located within the Entertainment Overlay if the density is more than 8 dwelling units 
per acre. The proposed development includes six (6) residential units (which equals 44 units 
per acre) above approximately 1,000 square feet of ground-floor commercial space, consistent 
with the intent of the zoning and overlay districts to promote a vibrant, mixed-use downtown. 
 
Per the Fountain Hills Zoning Ordinance: 
• Group commercial buildings require 1 parking space per 275 square feet of floor area. 
• Multi-family dwellings require 2.25 spaces per unit. 
 
Based on these standards, the proposed mixed-use development would require approximately 
18 parking spaces. In contrast, a fully commercial three-story building of similar size would 
require approximately 50 spaces. The existing Tract 208 shared parking lot provides sufficient 
parking to meet the requirements for this development, as it was originally designed to 
accommodate build-out of the subdivision. 
 
In addition, the applicant proposes to accommodate six (6) private garages, each serving one 
residential unit. These garages are designed as one-car garages, approximately 24 feet deep, 
with access from the rear of the building. The driveway width behind the garages will be 
maintained at 26-feet for two-way traffic. This configuration meets the ordinance requirement 
for one covered space per unit, and the remaining parking demand can be accommodated 
within the shared lot. 
 
Solid waste enclosures are required to be located within 250 walking feet of the main 
entrance. The proposed enclosure meets this requirement due to the rear access doors for each

unit. However, the enclosure is part of the shared Tract 208 facilities and may not have 
sufficient capacity for the additional residential and commercial waste. Prior to issuance of a 
building permit, the applicant must provide written confirmation from the Tract 208 Property 
Owners Association that adequate solid waste service will be provided, or propose an 
alternative solution. 
 
Following approval of the special use permit, the applicant will be required to submit a Site 
Plan Review application to ensure zoning compliance. Once the site plan is approved, the 
applicant must then apply for a building permit. 
 
Citizen Participation 
The applicant submitted a citizen participation plan outlining his outreach efforts, which 
included sending notification letters to all property owners within 300 feet of the subject site. 
The letter described the SUP request and invited recipients to provide comments or concerns 
via email, mail, or phone. As of April 2, 2026, the applicant has not received any responses 
from neighboring property owners. A copy of the citizen participation plan, along with a 
statement confirming that no inquiries were received, is attached to the staff report. 
 
 
  
 
Related Ordinance, Policy or Guiding Principle 
Zoning Ordinance Chapter 2, Procedures 
Zoning Ordinance Chapter 12, Commercial Zoning Districts 
Zoning Ordinance Chapter 25, Entertainment Overlay District 
Zoning Ordinance Chapter 26, Planned Shopping Plaza Overlay District 
 
Risk Analysis 
N/A 
 
Recommendation(s) by Board(s) or Commission(s) 
N/A 
 
Staff Recommendation(s) 
Staff supports approval subject to: 
1. Approval of a replat for the subject parcel to reflect a 10-foot minimum building setback 
from the south property line. 
2. Approval of a site plan consistent with the conceptual site and that complies with code 
requirements. 
3. A letter from Plat 208 addressing the provision of a solid waste enclosure prior to issuance 
of a building permit. 
 
Suggested Motion 
MOVE to approve the Special Use Permit 26-000001 for up to 6 dwelling units, all residential 
units to be on the second and third floors, with the stipulations listed in the staff 
recommendation. 
 
FISCAL IMPACT 
Fiscal Impact:  
Budget Reference:  
Funding Source:  
 
ATTACHMENTS 
1. 
Vicinity_Map__SUP26-000001 
2. 
REvised narrative_16865 E. Parkview Mixed Use

3. 
Revised Conceptual Drawings - 16865 E Parkview 
4. 
Citizen Participation Plan Parkview (1) 
5. 
Good Neighbor Statement 
6. 
Citizen Participation No Responses Letter