DRC_STAFF REPORT_LUXHOLDINGS_032426.DOCX
City of Tempe — Development Review Commission Regular Meeting (2026-03-24)
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PL250166 – LUX HOLDINGS MDPP Page 1 March 24, 2026 STAFF REPORT LUX HOLDINGS (PL250166) PROJECT DATA: Project Address 3910 S Rural Road Property Owner LUX HOLDINGS LLC Applicant Bryant Aplass, Lux Holdings LLC Zoning District (current/proposed) R/O (Residential/Office) / CSS (Commercial Shopping and Services) Net Site Area 1.51 acres Landscape Area 24.5% (15% minimum required) Vehicle Parking 71 spaces (90 min. required) COMMENTS: The subject site is located at the southwest corner of Rural Road and East Hermosa Drive, north of State Route 60. The site is generally bound by Hermosa Drive and single-family residential uses to the north, Rural Road to the east, a multi-tenant office building to the south, and Joyce Park to the west. To the west of Joyce Park is Carminati Elementary School. The proposed rezoning is a result of a Code Compliance violation for the operation of an event center within the existing multi-tenant office building, and for unpermitted modifications to the landscape area within an interior courtyard area. Event centers are not permitted uses within the Residential/Office (R/O) zoning district, and the applicant is proposing to rezone a portion of the site encompassing the northernmost section of the existing building to the Commercial Shopping and Service (CSS) zoning district, where such uses are permitted by right. The applicant is requesting the Development Review Commission provide recommendations to City Council for: ZON250005 Zoning Map Amendment from R/O, Residential/Office to CSS, Commercial Shopping and Service To resolve the unpermitted modifications to the courtyard, the applicant has submitted a Minor Development Plan, which is in review. Additionally, because the inclusion of the event center operations in the building and courtyard area results in a deficiency of available parking, the applicant has submitted a Shared Parking Analysis to obtain relief from the City’s parking standards. PUBLIC INPUT A neighborhood meeting was required The neighborhood meeting was held on July 28, 2025, from 6:00 – 7:00 p.m. at the subject site. See attached summary of meeting provided by the applicant. Community Development staff attended the meeting. Six residents attended the neighborhood meeting. Residents identified concerns with the uses allowed under the CSS zoning district, and with the future of the property. Additional questions related to the event center use. Staff has received one letter of opposition related to the proposed Zoning Map Amendment, which identified concerns associated with noise from the proposed event center. PL250166 – LUX HOLDINGS MDPP Page 2 March 24, 2026 ZONING The proposed Zoning Map Amendment would revise the zoning classification of a portion of the subject site from R/O, Residential/Office, to CSS, Commercial Shopping and Service. The 2050 General Plan classifies the subject site as “Commercial”, which allows for all commercial zoning districts, including the CSS zoning district. In this respect, the proposed Zoning Map Amendment complies with the General Plan 2050. The proposed CSS zoning classification would apply only to an area surrounding the northernmost building on the site, which would allow the proposed event center to operate, but which would also prevent future development of higher-intensity uses allowed within the CSS zoning district. Based on the changes in occupancy types proposed to coincide with the rezoning, the subject site does not meet the City’s requirements for minimum quantities of parking stalls. The applicant has submitted a shared parking analysis prepared by a licensed traffic engineer which found that sufficient parking is available given the uses present in the multi-suite office building. Based on staff’s evaluation, the proposed Zoning Map Amendment satisfies the below criteria. Section 6-304 C.2. Approval criteria for Zoning amendment (in italics): 1. The proposed zoning amendment is in the public interest. The proposed Zoning Map Amendment expands the number of allowed uses on the subject site in a controlled manner such that employment and event opportunities are expanded while maintaining much of the existing R/O zoning. 2. The proposed zoning amendment conforms with and facilitates implementation of the General Plan. The proposed rezoning aligns with the General Plan Land Use category for the subject site. The General Plan 2050 also includes goals and objectives related to supporting a variety of uses within walking distance of residential areas and encouraging diversified land uses that balance residential and employment opportunities. 3. The proposed zoning map amendment is compatible with the surrounding land uses, zoning designations and development standards; The proposed Zoning Map Amendment is not associated with any changes to the building itself, and so the site will remain physically compatible with surrounding uses, zoning designations and development standards. The applicant has noted that the event center will utilize valet parking, reasonable hours of operation, and will coordinate with surrounding residents on a community response plan to address any concerns that arise due to the even center’s operations. 4. The proposed zoning map amendment mitigates impacts on land use, water infrastructure, utilities or transportation. After discussions with staff, the applicant reduced the extent of its proposed Zoning Map Amendment to encompass only the northernmost of the two buildings located on the site. By limiting the area of the rezoning and maintaining the existing R/O zoning around the building, future developments of high-intensity uses are unlikely, and impacts related to transportation and other utilities are sufficiently mitigated. Based on the information provided and the above analysis, staff recommends approval of the requested Zoning Map Amendment. ZONING AMENDMENT CONDITIONS OF APPROVAL: (Non-standard conditions are identified in bold) EACH NUMBERED ITEM IS A CONDITION OF APPROVAL. THE DECISION-MAKING BODY MAY MODIFY, DELETE OR ADD TO THESE CONDITIONS. 1. A building permit application shall be made within two years of the date of City Council approval or PL250166 – LUX HOLDINGS MDPP Page 3 March 24, 2026 the zoning of the property may revert to that in place at the time of application. Any reversion is subject to a public hearing process as a zoning map amendment. 2. The property owner(s) shall sign a waiver of rights and remedies form. By signing the form, the Owner(s) voluntarily waive(s) any right to claim compensation for diminution of Property value under A.R.S. §12-1134 that may now or in the future exist, as a result of the City’s approval of this Application, including any conditions, stipulations and/or modifications imposed as a condition of approval. The signed form shall be submitted to the Community Development Department no later than 30 days from the date of City Council approval, or the Zoning Map Amendment approval shall be null and void. 3. Update the data for parking file for this site. Provide information within 14 days or by April 8, 2026. CODE/ORDINANCE REQUIREMENTS: THE BULLETED ITEMS REFER TO EXISTING CODE OR ORDINANCES THAT PLANNING STAFF OBSERVES ARE PERTINENT TO THIS CASE. THE BULLET ITEMS ARE INCLUDED TO ALERT THE DESIGN TEAM AND ASSIST IN OBTAINING A BUILDING PERMIT AND ARE NOT AN EXHAUSTIVE LIST. SITE PLAN REVIEW: Verify all comments by all departments on each Preliminary Site Plan Review. If questions arise related to specific comments, they should be directed to the appropriate department, and any necessary modifications coordinated with all concerned parties, prior to application for building permit. Construction Documents submitted to the Building Safety Division will be reviewed by planning staff to ensure consistency with this Design Review approval prior to issuance of building permits. STANDARD DETAILS: Access to Tempe Supplement to the M.A.G. Uniform Standard Details and Specifications for Public Works Construction, at this link: https://www.tempe.gov/government/public- works/engineering/standards-detailsv or purchase a book from the Public Works Engineering Division. Access to refuse enclosure details DS116 and DS118 and all other Development Services forms at this link: https://www.tempe.gov/government/community-development/building- safety/applications-forms. The enclosure details are under Handouts. BASIS OF BUILDING HEIGHT: Measure height of buildings from top of curb at a point adjacent to the center of the front property line. MECHANICAL SCREENING: All roof mounted mechanical equipment shall be concealed on all sides by elements that are an integral part of the building design and are equal to or greater in height than the mechanical equipment. Ground-mounted equipment may be screened using a masonry wall or other durable material as approved through development plan review. WATER CONSERVATION AND EFFICIENCY: (Residential and parks are exempt, commercial and mixed use are not exempt). As required in Tempe City Code 33-140 - 142, all new non-residential development projects are required to submit a Water Conservation Report that details potential water use, for review and approval by the Municipal Utilities Department, prior to building permit issuance. For a report template and more information, visit the commercial water conservation webpage. HISTORIC PRESERVATION: State and federal laws apply to the discovery of features or artifacts during site excavation (typically, the discovery of ancestral (human) remains or associated funerary objects). Arizona Revised Statutes § 41-865 stipulates that “any landowner with intention to disturb human remains or having unintentionally disturbed human remains shall immediately cease any activity in the vicinity of the remains and shall notify the Arizona State Museum Repatriation Office of PL250166 – LUX HOLDINGS MDPP Page 4 March 24, 2026 the encounter. Any human remains and funerary objects shall not be further disturbed without obtaining written permission from the Repatriation Office.” Additional information about requirements related to encountering and disturbing ancestral (human) remains and funerary objects on private land can be found on the Arizona State Museum website. While not required, applicants are encouraged to enlist the services of a qualified archaeological firm to conduct monitoring during ground-disturbing activity on private property that is Archaeologically Sensitive (AS). Contact the Historic Preservation Officer with general questions. POLICE DEPARTMENT SECURITY REQUIREMENTS: Design building entrance(s) to maximize visual surveillance of vicinity. Limit height of walls or landscape materials, and design columns or corners to discourage ambush. Maintain distances of 20’-0” or greater between a pedestrian path of travel and any hidden area to allow for increased reaction time and safety. Follow the design guidelines listed under appendix A of the Zoning and Development Code. In particular, reference the CPTED principal listed under A-II Building Design Guidelines (C) as it relates to the location of pedestrian environments and places of concealment. Refer to Tempe City Code Section 26-70 Security Plans. If the development includes a use listed in City Code Section 26-70(c), the Owner is required to prepare a security plan with the Police Department. The architect should be involved to verify any modification that would require design revisions. To avoid revisions to permitted construction documents, initial meetings with the Police Department regarding the security plan are recommended before building permits are issued. At a minimum, the Owner shall contact the Police Department to begin security plan process approximately eight weeks prior to receipt of certificate of occupancy. Provide a security vision panel at service and exit doors (except to rarely accessed equipment rooms) with a 3” wide, high strength plastic or laminated glass window, located between 43” and 66” from the bottom edge of the door. SOLID WASTE SERVICES: Enclosure indicated on site plan is exclusively for refuse. Contact the Solid Waste Division to verify that vehicle maneuvering and access to the enclosure is adequate. Refuse staging and collection must be on site; no backing onto or off of streets, alleys or paths of circulation. Develop strategy for recycling collection and pick-up from site. Gates for refuse enclosure(s) are not required, unless visible from the street. If gates are provided, the property manager must arrange for gates to be open from 6:00 am to 4:30 pm on collection days. PARKING SPACES: Verify conformance of accessible vehicle parking to the Americans with Disabilities Act and the Code of Federal Regulations Implementing the Act. Refer to Building Safety ADA Accessible Parking Spaces Marking/Signage on Private Development details. At parking areas, provide demarcated accessible aisle for disabled parking. Distribute bike parking areas nearest to main entrance(s). Provide parking loop/rack per standard detail T-578. Provide 15” by 6’-0” individual bicycle parking spaces. One loop may be used to separate two bike parking spaces. Provide clearance between bike spaces and adjacent walkway to allow bike maneuvering in and out of space without interfering with pedestrians, landscape materials or vehicles nearby. ZONING AND DEVELOPMENT CODE: Specific requirements of the Zoning and Development Code (ZDC) are not listed as a condition of approval but will apply to any application. To avoid unnecessary review time and PL250166 – LUX HOLDINGS MDPP Page 5 March 24, 2026 reduce the potential for multiple plan check submittals, become familiar with the ZDC. Access the ZDC through www.tempe.gov/zoning or purchase from Community Development. LIGHTING: Plans shall include the nearest adjacent street lights to the development. Streetlights shall conform to the City of Tempe Public Works Standard Details and the Engineering Design Criteria Manual contained in the Comprehensive Transportation Plan Design site security lighting in accordance with requirements of ZDC Part 4 Chapter 8 (Lighting) and ZDC Appendix E (Photometric Plan). Indicate the location of all exterior light fixtures on the site, landscape and photometric plans. Avoid conflicts between lights and trees or other site features in order to maintain illumination levels for exterior lighting. LANDSCAPE: Trees shall be planted a minimum of 16’-0” from any existing or proposed public utility lines. The tree planting separation requirements may be reduced to no less than 8’-0” from utility lines upon the installation of a linear root barrier. Per Detail T-460, the root barrier shall be a continuous material, a minimum of 0.08” thick, installed to a minimum depth of 4’-0” below grade. The root barrier shall extend 6’-0” on either side of the tree parallel to the utility line for a minimum length of 12’-0”. Final approval is subject to determination by the Public Works, Water Utilities Division. Prepare an existing plant inventory for the site and adjacent street frontages. The inventory may be prepared by the Landscape Architect or a plant salvage specialist. Note original locations and species of native and “protected” trees and other plants on site. Move, preserve in place, or demolish native or “protected” trees and plants per State of Arizona Agricultural Department standards. File Notice of Intent to Clear Land with the Agricultural Department. Notice of Intent to Clear Land form is available at https://agriculture.az.gov/plantsproduce/native-plants. Follow the link to “applications to move a native plant” to “notice of intent to clear land”. SIGNS: Separate plan review process is required for signs in accordance with requirements of ZDC Part 4 Chapter 9 (Signs). Refer to www.tempe.gov/signs. DUST CONTROL: Any operation capable of generating dust, include, but not limited to, land clearing, earth moving, excavating, construction, demolition and other similar operations, that disturbs 0.10 acres (4,356 square feet) or more shall require a dust control permit from the Maricopa County Air Quality Department (MCAQD). Contact MCAQD at http://www.maricopa.gov/aq/. HISTORY & FACTS: September 21, 1971 The Board of Adjustment approved a Use Permit to allow for the construction of an office building and a Variance to reduce the required front yard setback from 25 feet to 15 feet. The approval included conditions that a stucco wall of 6 feet in height be constructed from northwest corner of the building to the west property line to screen the parking area, and that a fence be constructed along the entire west property line. October 20, 1971 The City of Tempe Design Review Board approved a new 17,280 square foot building at the southwest corner of Rural Road and East Hermosa Drive in the R-2-A zoning district. April 26, 2001 The City of Tempe Hearing Officer approved a Variance request to reduce the PL250166 – LUX HOLDINGS MDPP Page 6 March 24, 2026 required south side yard setback from 79 feet to 18 feet for a new 79-foot tall communication tower. (BA010093). February 27, 2019 Staff approved a Building Development Plan Review to allow for an exterior remodel of the site, including new site walls, landscaping, and exterior color and materials. (BDPR19015). January 31, 2025 The Code Compliance Division issues a Correction Notice identifying several violations on the subject site, including the operation of an event venue without appropriate permissions as well as unpermitted modifications to landscape areas. (CM250144) March 24, 2026 The Development Review Commission is scheduled to hear the request to rezone a portion of the site located at 3910 South Rural Road from R/O to CSS. April 16, 2026 This request is scheduled for the introduction and first City Council public hearing. April 30, 2026 These requests are scheduled for the second City Council public hearing. ZONING AND DEVELOPMENT CODE REFERENCE: Section 6-304, Zoning Map Amendment Section 6-306, Development Plan Review