DRC_STAFF REPORT_TEMPE_OASIS_051226.DOCX
City of Tempe — Development Review Commission Regular Meeting (2026-05-12)
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PL260032 – TEMPE OASIS Page 1 May 12, 2026 STAFF REPORT TEMPE OASIS (PL260032) PROJECT DATA: Project Address 1635 North Scottsdale Road Property Owner(s) Current / Future HK 24TH STREET LLC Applicant Camber and True, LLC Zoning District (current/proposed) MU-4 (Mixed-Use, High Density) / MU-4 PAD Gross / Net Site Area 3.14 acres Density 65 du/ac (No standard in MU-4) Number of Units 142 units Unit Types 5 studio 130 one bedroom 7 two bedroom Total Bedrooms 149 bedrooms Total Building Area 79,429 s.f. Building Height(s) 27’ (No standard in MU-4) Lot Coverage 26% (No standard in MU-4) Landscape Area 11% (No standard in MU-4) Building Setbacks 43’ front (North), 60’ east side, 47’ west side, 65’ rear (South) (No standard in MU-4) Vehicle Parking 147 surface parking spaces (256 min. required) Bicycle Parking 134 spaces (143 min. required) COMMENTS: This site is located at the southeast corner of Lilac Street and Scottsdale Road in the MU-4, Mixed- Use High - Density zoning district. The site was originally developed as a 136-unit apartment community, under Zoning Ordinance 405 which listed apartment hotels as allowed uses in the R-4 district. The site became a hotel use with a small retail and deli as ancillary uses in the 1970s and currently operates as a hotel proposed to be renovated to create a mixed-use development with residential and commercial uses. On January 13, 2022, City Council approved Resolution R2022.12 authorizing the City of Tempe Economic Development Department to initiate an up-zoning process for the redevelopment of older properties to encourage new housing development and to increase housing stock in the City of Tempe. The City of Tempe initiated General Plan and Zoning Map Amendment (PL220055) changing the land use designation on the property from “Medium to High Density” to “High Density”, and zoning from R-4 to MU-4, however, development standards for the MU-4 zoning district were not established at that time. The subject request to establish development standards will fulfill Condition of Approval #1 for PL220055. The applicant is requesting the Development Review Commission provide recommendations to City Council for PAD260001 Planned Area Development Overlay to establish development standards for an existing MU-4 zoning district hotel to multi-family adaptive reuse. For further processing, the applicant will need approval of a Minor Development Plan Review. PL260032 – TEMPE OASIS Page 2 May 12, 2026 SITE PLAN REVIEW This project had two Preliminary Site Plan Reviews on 7/13/2023 and 5/28/2025, and two formal Minor Development Plan Reviews on 2/4/26 and 4/1/26. This application is only for the establishment of PAD development standards; therefore, the proposed design does not have final Development Plan Review entitlement. The proposed use will include seven (7) individual residential apartment buildings. Buildings A, B, C, D, and G are two-story. Buildings E and F are three-story. Each building will have a mix of studio, 1-, and 2- bedroom units. Building A will have a leasing office at what is currently the main entrance. Building D will have a proposed restaurant at the southwest corner of the development. Staff had several discussions with the applicant concerning the location of the proposed restaurant. The applicant was in favor of keeping the location at the main entrance, however staff had concerns with access, visibility, and security after the business was closed. At a meeting on April 20, 2026, the applicant proposed a floor plan with the restaurant relocated to the southwest corner of the development based on the advice of Planning, Economic Development and Police Department staff. This layout will be reviewed further in the Development Plan Review process. Parking is provided by surface parking areas that surround the building with covered parking provided for the spaces furthest away from the buildings. The number of parking spaces required is 256, however the 145 spaces provided has been a concern of staff and the public. Due to this being an existing hotel, the provided parking met the requirements of 1 space per hotel unit. Multi-family and restaurant uses have higher parking demand than the existing site can meet. The development proposes to have 142 units with 149 bedrooms. During the neighborhood meeting held on March 23, 2026, attendees were concerned about residents of the apartments not having available parking on site, and thus parking along Lilac Drive and Marigold Lane. Staff recommended modifications to the number of units or mix of unit types to increase diversity of product type and reduce parking needs. The applicant did not wish to reduce units by making larger livable space, or modify unit mix to reduce the number of one-bedroom units and provide some three-bedroom units. Staff will continue to work with the applicant to mitigate any parking related issues that may impact the surrounding neighborhood. One option may be a permit parking system for this property on the south side of Lilac Drive and west side of Marigold Drive, if the parking demand warrants a permit parking program managed by this property for adjacent street frontages only. Bicycle parking is provided around the property and within the secure residential access gates. Similar to the vehicle parking, the number of bicycle parking spaces provided is proposed to be lower than required. Two access gates are provided onsite, one north and one south of the development along the access driveways. These gates provide secure parking for the residents of the development. Vehicular access is provided by three points including two access points on Scottsdale Road and one access point on Lilac Drive. The proposed site plan removes the western driveway on Lilac Drive and makes the eastern driveway a gated exit only drive. Scottsdale Road receives all incoming traffic through two driveways, both to be upgraded to current engineering standards. Central to the development is a courtyard, pool, clubhouse, fitness and amenity area. An additional refuse enclosure is required for Solid Waste services for residential uses. The site plan includes a small pet park in the southeast corner as an additional amenity. An application for the Minor Development Plan Review has been submitted and is in the process of review. PUBLIC INPUT Neighborhood meeting was required. Neighborhood meeting was held on March 23, 2026, from 6:00 p.m. to 8:00 p.m. at Tempe Oasis. See attached summary of meeting provided by the applicant, (Exhibit 36-71). Community Development staff attended the meeting. PROJECT ANALYSIS PL260032 – TEMPE OASIS Page 3 May 12, 2026 PLANNED AREA DEVELOPMENT The applicant is requesting to establish Planned Area Development Overlay development standards for an existing hotel in the MU-4 zoning district. The proposed PAD Overlay is establishing the density of the entire area which is 3 acres, with an overall density of 65 dwelling units per acre, which is within the General Plan Projected Density of Mixed-Use High (up to 65 du/ac). This PAD will also establish maximum building height, maximum lot coverage, minimum landscape area and minimum setbacks for this parcel. The development standards for the R-4 zoning district are included in the table below for comparison of the standards associated with the property as it was initially zoned compared to the proposed MU-4 PAD development standards. PROJECT NAME – Tempe Oasis PAD Overlay Standard R-4 PROPOSED MU-4 (PAD) Change Residential Density (du/ac) 25 65 Increase Building Height (feet) [Exceptions, see Section 4-205(A)] Building Height Maximum 40 ft. 35 ft. Decrease Building Height Step-Back Required Adjacent to SF or MF District [Section 4-404, Building Height Step-Back] Yes No Maximum Lot Coverage (% of net site area) 60% 27% Decrease Minimum Landscape Area (% of net site area) 25% 11% Decrease Setbacks (feet) (a) [Exceptions, see Section 4-205(B)] North Front (Lilac Drive) 20 ft 44 ft Increase East Street Side (Marigold Lane) 10 ft 60 ft Increase South Rear 10 ft 66 ft Increase West Street Side 10 ft 47 ft Increase Vehicle Parking 256 Required 147 Provided Decrease Bicycle Parking 143 Required 134 Proposed Decrease The proposed parking standards are well below the requirements for new mixed-use developments. Since this is an existing hotel that is being converted into a mixed use development consisting of multi- family residential and restaurant uses, it is difficult to meet parking requirements with the current parking available. When the hotel was built in 1970, it met the required vehicle parking, which was one (1) parking space per hotel room. With this conversion to multi-family and restaurant, the site is falling short of the required vehicle and bicycle parking requirements. A parking management plan has been provided by the applicant outlining the provided parking. The table below summarizes the required and proposed vehicle parking for the project. Unit Type Unit Quantity / SF Ratio Parking Required per ZDC Proposed Parking per PAD (XX/bedroom ratio) Studio 5 1 space per unit 5 5 (1 space per unit) 1 bedroom 130 1.5 space per unit 195 108 (0.8 space per unit) 2 bedroom 7 2 spaces per unit 14 7 (1 space per unit) PL260032 – TEMPE OASIS Page 4 May 12, 2026 Guest 142 .2 28 14 (0.1 space per unit) Office 704 s.f. 1/300 s.f. 2 2 Restaurant 872 s.f. 1/75 s.f. 12 11 TOTAL 256 147 Section 6-305 D. Approval criteria for P.A.D. (in italics): 1. The development fulfills certain goals and objectives in the General Plan and the principles and guidelines of other area policy plans. Performance considerations are established to fulfill those objectives. The project complies with the designation identified in the General Plan Projected Land Use and Residential Density map, integrating commercial and residential uses and a density up to 65 dwelling units per acre. The proposed development standards reflect the existing conditions on site, however the provided parking falls short of what is typically required in multi-family. The site is along Scottsdale Road and does have frequent public transit service. Bicycle parking will also be provided onsite within the secure resident access gates. Bicycling infrastructure is available east of the site and the City of Tempe is in the design phase of installing bicycle lanes on Scottsdale Road. 2. Standards requested through the PAD Overlay district shall take into consideration the location and context for the site for which the project is proposed. The site was originally approved as an apartment community with commercial uses and the requested development standards take the site’s location and context into consideration and will allow a development that is compatible with the surroundings. The development is existing and there are not substantial building changes proposed. The R-4 allowed standards would put taller buildings closer to the streets; the proposed standards limits the building height to the existing 27-foot-high three-story building, which is lower than what is allowed in single-family or multi-family zoning districts. The setbacks are larger than the prior zoning. The most significant impact of transitioning a hotel into a mixed-use site is the increased requirement for parking. As a hotel use, the provided parking met the requirements. As a multi-family and restaurant use, the requirements are much higher, but the available space to provide those parking spaces is not available. The site location is along the free Orbit Earth route and public transit 72 bus line and is within an area with bicycle infrastructure. These transportation alternatives are expected to mitigate the strain caused by the parking deficiency. 3. The development appropriately mitigates transitional impacts on the immediate surroundings. The buildings are set back providing a pedestrian environment that is shaded by the proposed enhanced landscaping. The majority of the parking will be behind gates and fencing to secure the property and control access.. Based on the information provided and the above analysis, staff recommend approval of the requested Planned Area Development. This request meets the required criteria and will conform to the conditions. PLANNED AREA DEVELOPMENT 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 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 Planned Area Development Overlay for TEMPE OASIS APARTMENTS ADAPTIVE REUSE shall be put into proper engineered format with appropriate signature blanks and kept on file with the City of Tempe’s Community Development Department within sixty (60) days of the date of City PL260032 – TEMPE OASIS Page 5 May 12, 2026 Council approval and prior to issuance of building permits. 3. A vehicle and bicycle parking analysis shall be provided to the Planning Division by May 18, 2026 for determination of the parking standards for this Planned Area Development Overlay. The number of units and mix of unit types presented in the proposed Planned Area Development may be modified to meet parking demand for this site. 4. This site is located within a known archeologically sensitive area with the likelihood of encountering cultural resources, human (Ancestral) remains, or funerary objects. Prior to issuance of any permits that would result in ground disturbance, the Developer shall hire a qualified archaeological firm to complete an addendum to the City of Tempe’s Historic Properties Treatment Plan (HPTP) that includes a plan for 1) archaeological testing prior to construction and/or 2) monitoring of ground-disturbing activity during construction. This condition applies to projects on both previously disturbed and previously undisturbed ground. This process requires consultation and sign off by the Historic Preservation Officer. 5. Prior to commencement of construction, contractors and subcontractors on the project performing ground-disturbing activities will provide evidence (an unexpired decal) of successful completion of the Salt River Pima-Maricopa Indian Community (SRPMIC) online cultural sensitivity training and test. Evidence shall be provided to the Community Development Department, Historic Preservation Officer. Obligation of this condition shall be noted on the permitted set of plans. 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. TEMPE CITY CODE: Specific requirements of the Tempe City Code are not listed but apply to any application. ZONING AND DEVELOPMENT CODE: Specific requirements of the Zoning and Development Code (ZDC) are not listed as conditions of approval but apply to any application. To avoid unnecessary review time and reduce the potential for multiple plan check submittals, become familiar with the ZDC. BUILDING & FIRE CODES: Any modifications to the buildings involving mechanical, electrical, plumbing or structural tenant improvements that would require a building permit must obtain required permits. ENGINEERING CODES: Any site modifications affecting utilities, retention or engineering code requirements must obtain required permits. LIGHTING: Site security lighting shall comply with requirements of ZDC Part 4 Chapter 8 (Lighting) and ZDC Appendix E (Photometric Plan). Avoid conflicts between lights and trees or other site features in order to maintain illumination levels for exterior lighting. Make sure that light fixtures do not create glare and are full-cutoff fixtures. Any changes to lighting would require a minor Development Plan Review. LANDSCAPE: All landscape shall be maintained per the approved landscape plan for the site. Property owners are responsible to replace dead or missing plant material and to maintain all parking landscape islands, street front trees and ground covers, and perimeter planting materials. Any changes to landscape on site would require a minor Development Plan Review. PL260032 – TEMPE OASIS Page 6 May 12, 2026 BASIS OF BUILDING HEIGHT: Measure height of buildings from top of curb at a point adjacent to the center of the front property line. FEDERAL AVIATION ADMINISTRATION: Applicant/Developer proposing construction or alterations which may affect navigable air space is responsible for submitting a Notice of Proposed Construction or Alteration - Off Airport form to the Federal Aviation Administration (FAA) and provide documentation of building height clearance prior to issuance of building permits. Per the FAA, filing shall be done a minimum of 45 days prior to construction. For additional information visit the Federal Aviation Administration, Obstruction Evaluation/Airport Airspace Analysis (OE/AAA) website at https://oeaaa.faa.gov/oeaaa/external/portal.jsp. 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 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: 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. 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 PL260032 – TEMPE OASIS Page 7 May 12, 2026 materials or vehicles nearby. 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. 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: March 13, 1960 The Tempe City Council approved Ordinance No. 312, a request to annex approximately 222 acres, including the subject site. January 24, 1964 City Council approved Zoning Ordinance 405. Parking requirements for apartment hotels and all similar structures devoted to habitation at least one and a half off-street parking spaces shall be provided on the lot upon which the dwelling units are located. October 30, 1970 Building Inspection Department approved the final inspection for PAGAGO GARDENS (Application No. 022912), located at 1635 North Scottdale Road in the R-4, Multi-Family Residence General District. The development had 136 apartments which would have required 204 parking spaces, at the time, the site provided 218 parking spaces. August 28, 1980 Board of Adjustment approved a Use Permit for PAPAGO PROPERTIES (A-80- 8.3), located at 1635 North Scottsdale Road in the R-4, Multi-Family Residence General District, to operate a gift shop-deli as an accessory use. January 13, 2022 City Council approved Resolution R2022.12, authorizing The City of Tempe Economic Development Department to initiate an up-zoning process for the redeveloping of older properties and encouraging new housing development to increase the hosing stock in the City of Tempe. May 10, 2022 Development Review Commission recommended approval of an amendment to the City of Tempe General Plan 2040 Density Map from “Medium to High Density” to “High Density” and an amendment to the City of Tempe Zoning Map from R-4, Multi-Family General District to MU-4, Mixed-Use High Density District. (PL220055) June 8, 2022 City Council approved an amendment to the City of Tempe General Plan 2040 PL260032 – TEMPE OASIS Page 8 May 12, 2026 Density Map from “Medium to High Density” to “High Density” and an amendment to the City of Tempe Zoning Map from R-4, Multi-Family General District to MU- 4, Mixed-Use High-Density District. (PL220055) January 23, 2025 City Council approved a time extension stating that an application for a Planned Area Development (PAD) Overlay and a Development Plan Review (DPR) shall be made to the Community Development Department within one (1) year from the date of City Council extension, or January 23, 2025. January 23, 2026 An application for a Planned Area Development (PAD) Overlay and a Development Plan Review (DPR) was submitted to the Community Development Department, satisfying Condition of Approval #1 of PL220055. March 23, 2026 The applicant held a neighborhood meeting at Tempe Oasis, see applicant summary for details of meeting. May 12, 2026 Development Review Commission scheduled public hearing for establishment of development standards for TEMPE OASIS, in the MU-4 zoning district. ZONING AND DEVELOPMENT CODE REFERENCE: Section 3-202, Permitted Uses in Commercial and Mixed-Use Districts Section 3-503, Legal Non-Conforming Development Section 4-203, Development Standards for Commercial and Mixed-Use Districts Section 6-305, Planned Area Development Overlay Districts