The Town of Fountain Hills has allowed development of residential units within commercially zoned property with a Special Use Permit (SUP) for a number of years. The objective is to increase population density in commercial areas, particularly the downtown and Shea Boulevard corridor. Generally, the Town Council has approved such requests with some stipulations to accommodate potential issues such as parking.

At its Aug. 14 regular session the Planning and Zoning Commission voted unanimously (6-0) to approve an SUP for residential use in an area zoned common commercial (C-C) at the north end of Town off Fountain Hills Boulevard near El Pueblo Boulevard and Ivory Drive. This vote was contrary to the recommendation of Town Development Services Director John Wesley.

“This property is zoned, platted and developed for commercial uses,” Wesley said in his staff report to the commission. “While additional residential uses in this commercial area may be beneficial, additional residential should only be considered in light of an overall plan for this commercial center and with resolution of the parking issues.

“If the desire of the property owners is for this to transition to residential uses, it should be rezoned to an appropriate residential zoning district.”

John Gurcaz, who has developed a number of properties in town, both residential and commercial, made the SUP request to accommodate a plan for seven two-story residential apartments on three lots totaling 11,800 square feet near the northeast corner off Ivory Drive and Glenbrook Boulevard. The plan calls for units that are approximately 1,656 square feet on two levels with six of the units having two-car garages and one unit with a single-car garage. The necessary parking for the proposed residential would require allowing for several spaces in the common parking lot for the overall parcel. From the Town’s perspective, this would not be a code violation.

Wesley also said he has concerns about what he describes as the “mass” of the structure. The proposal would house all seven units in a single building that would be 25 feet in height, 150 feet in length and 48 feet deep with a combined total square footage of 14,000 square feet. Wesley noted that the surrounding single-family residential neighborhood has single-story dwellings. The zoning would allow homes up to 30 feet. The garages for the planned apartments would be accessed from an alley crossing the property with 15-foot drives, which prompted some discussion from the commission members. The approved recommendation to the council includes a stipulation that the drives be extended to 18 feet and the alley be paved by the developer.

The total block is approximately 7.2 acres. It was zoned for C-C and platted in 1973 under Maricopa County jurisdiction. The initial building on the parcel was constructed prior to 1986, with additional development added slowly. There has been no new development in the tract since 2004, although the council approved a mixed-use plan for a commercial building with residential on the second floor. Gurczak is also the developer of that project and said he recently received the building permit to allow construction to begin at the corner of Ivory and El Pueblo.

Rod Wavembuorg who is president of the property involved Tract 106 property owners’ association also spoke to the commission as a representative of the POA. He said they have no specific objection to the plan, but he made it clear that the property owners in the tract want it to remain commercial zoning. He said their biggest concern is protecting the integrity of their CC&Rs and bylaws, which have no provision for allowing residential uses. It should be noted that the Town has no say in association bylaws and the POA has no input regarding Town ordinances or regulations. If a property owner does something the POA objects to, even if permitted by the Town but not allowed by the POA, it is an issue between the specific owner and the association.

The council has also recently approved an SUP for 10 residential units on commercial property at Fountain Hills and Glenbrook boulevards. This is nearby, but a separate parcel than the project considered by the commission Aug. 14.

The commission voted 6-0 to recommend the council approve the SUP, with Commissioner Susan Dempster absent.