The Planning and Zoning Commission sorted through a quagmire of regulations but ultimately gave its endorsement to a proposal that could kick off new downtown development.

The commission voted to recommend the council approve zoning requests to allow development of a Morningstar assisted living facility and potentially up to 400 new multi-family housing units and downtown office and retail commercial.

The council will take up the project plan when it meets Thursday.

The focus of the commission’s work at its June 11 session was approvals needed for the Morningstar assisted living.

Existing zoning on the site does not allow for the assisted living use. There is a need for minor amendments to the Downtown Area Specific Plan (DASP) and the town’s adopted General Plan.

Underlying zoning for the site is the Town Center Commercial District (TCCD), which allows for assisted living with a special use permit. However, the DASP calls for residential in the South End District.

The proposed DASP amendment would allow for assisted living as a use consistent with the TCCD.

The commission also endorsed a resolution for a minor General Plan amendment that increases the residential density in the downtown area from 12 units per acre to 28 units per acre.

A proposed ordinance amendment would change the minimum lot size for a Planned Area Development (PAD) from five acres to three acres.

Ultimately the commission recommended a package of resolutions and amendments to the council that will permit a PAD for the Morningstar assisted living facility on a 3.3-acre parcel fronting Paul Nordin Parkway west of the Lexington Inn to Verde River Drive.

Commissioner Denise Ham opposed the plan, saying that without seeing the developer’s plans for the entire downtown area, including mixed used commercial and residential along Avenue of the Fountains, she could not determine what impacts the assisted living might have in the downtown.

“I think we should be looking at the whole picture,” Ham said. “We would have a better perspective of what would work on this lot.”

Commission Chairman Lloyd Pew also expressed reservations.

“A lot of time went into the Downtown Area Specific Plan providing a broad brush to create a vibrant, invigorating downtown,” Pew said. “I’m not sure (assisted living) fits that picture.

“We are already battling a perception that (Fountain Hills) is a retirement community.”

A number of residents also expressed their viewpoint to the commission.

Robert Rotharo asked the commission to delay a decision.

“Not at this time,” he said. “You should have all of the plans together with no piecemeal approval.

“This is a watershed moment for Fountain Hills, don’t approve something just because you have the vacant land.”

Lee Miller suggested the developer was attempting to get the land entitlements to increase the value of the land to the detriment of the town and its citizens.

“There are a large number of assisted living facilities within 15 to 20 miles of Fountain Hills,” Miller said.

Former Mayor Jay Schlum is a supporter of the plan.

“It is exciting to be having a discussion about this property,” Schlum said. “The vision plan was a great process that ended with a product that provides flexibility to planning.

“Let’s look positively on this project providing good jobs and vitality to the downtown.”

Phillip Blackerby of Fountain Hills Design Center called this a “great project.”

“This property needs to be developed,” Blackerby said. “I think this is a good project and appropriate use of the land.”

Commission Vice Chairman Mike Archambault had his own questions about land use.

Archambault asked Senior Planner Bob Rodgers what would go on the site if not the assisted living.

“Commercial does not seem to make sense there,” Archambault said. “It would not get the traffic there is on the Avenue.”

Rodgers said the options would be residential or commercial per the town’s planning documents.

“I believe this is a perfect solution for this property,” Commissioner Stan Connick said. “It will never be an active street for commercial.

“(The developer) has come up with a pleasant design and an excellent product that we should endorse.”

Commissioner Eugene Mikolajczyk did not see the point in debating what might be better.

“We have a plan ready to go,” Mikolajczyk said. “It might not be perfect, but politics is not the place to find perfection. This is perfectly acceptable.”

The council will consider the request when it meets Thursday, June 18, at 6:30 p.m. at Town Hall. The meeting is open to the public and there will be public hearings related to the requests.