Staff Report

Town of Fountain Hills — Town Council (2025-12-16)

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ITEM 8.b. 
 
TOWN OF FOUNTAIN HILLS 
 
STAFF REPORT 
 
Meeting Date: 
12/16/2025 
Meeting Type: 
Town Council Regular Meeting - AMENDED 
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 25-
12 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. 
 
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 recomends adoption of Ordinance 25-12. 
 
Suggested Motion 
MOVE TO approve Ordinance 25-12. 
 
FISCAL IMPACT 
Fiscal Impact: N/A 
Budget Reference: N/A 
Funding Source: N/A

ATTACHMENTS 
1. 
Ord 25-12 Rezoning 
2. 
Citizen Participation Plan 
3. 
Citizen Participation Report