Planning and Zoning Commission

Jim Harris, Chairman Lake Havasu City Lucas Still, Vice-Chairman Police Facility Mychal Gorden 2360 McCulloch Blvd North Doug Hardy Lake Havasu City, Arizona John Kendig 86403 Dan McGowan www.lhcaz.gov Chad Nelson Suzannah Ballard, Alternate Don Bergen, Alternate Danny White, Alternate Planning and Zoning Commission Regular Meeting Minutes - Final Wednesday, March 20, 2019 9:00 AM 1. CALL TO ORDER Vice Chairman Still called the meeting to order at 9:00 a.m. 2. PLEDGE OF ALLEGIANCE Vice Chairman Still led the Pledge of Allegiance. 3. ROLL CALL Present: 6- Lucas Still, Mychal Gorden, Doug Hardy, Suzannah Ballard, Dan McGowan and Donald Bergen Absent: 4- Jim Harris, John Kendig, Chad Nelson and Danny White 4. MINUTES Mr. Gorden made a motion to approve the minutes of the last two meetings, seconded by Mr. Hardy. The motion carried by the following vote: Aye: 6 - Still, Gorden, Hardy, Ballard, McGowan and Bergen Absent: 4 - Harris, Kendig, Nelson and White Approval of Regular Meeting Minutes from December 19, 2018 and January 2, 2019. 5. CORRESPONDENCE AND ANNOUNCEMENTS Mr. Schmeling stated the rezoning at 2100 Kiowa Blvd., which the Commission recommended for approval, was unanimously adopted at the City Council meeting on February 12, 2019. 6. PUBLIC HEARING ID 19-1921 A Request to Amend Planned Development 05-00200008, The Shops at Lake Havasu, by Removing Parcels 120-54-002, 120-54-003B, 120-54-004, 120-54-007, and 120-61-004; 5601 Hwy. 95 N., and Rezoning the Properties from C-2/PD (General Commercial Planned Development District) to C-2 (General Commercial District) Mr. Still and Mr. Gorden recused themselves due to conflict of interest. Lake Havasu City Page 1 Printed on 4/8/2019 Planning and Zoning Commission Minutes - Final March 20, 2019 Staff appointed Mr. Bergen as Chairman. Mr. Schmeling thanked the Chairman and presented a PowerPoint slideshow and narrative including some of the following key points: • This item relates to the Mall, NW of town, across from the Lake Havasu Airport. • Original PD from 1997, The Centre Development, originally included 205 acres. • Original PD included a wide range of uses, from open space to industrial park, also included a convention center. • Several amendments have taken place since original PD. • Mall Proper shown, which does not include Home Depot or Anderson Auto-plex. • Today’s proposal includes 105 acres, encompasses Walmart, Dillards, JCPenney, and several other uses. • The first major amendment to the PD in 2005 included 105 acres, commonly referred to as The Shops of Lake Havasu. • Some exceptions allowed as part of the PD. Couple of them had to do with parking – spaces reduced to 9X18 vs 9X20. Angle exception to allow additional parking onsite. Buildings were allowed 46' height to accommodate architectural features throughout Mall- big boxes took advantage of that. • 2007 amendment primarily regarding sign package. The requested size for signs far exceeded code so only way to allow them was through an amendment to the PD. That amendment also limited outparcels, preventing them from having their own standalone signs. Wanted signage to be unified for the Mall. • Today’s application includes 35.5 acres; 3 parcels along Highway 95; 2 undeveloped pads. • Includes most of Mall, does not include Walmart, JCPenney, Dillard’s, or Star Cinema. • Applicant requesting 35 acres be eliminated from PD and held to current C-2 restrictions. Mychal Gorden, Desert Land Group, on behalf of applicant, stated the following key points: • The Shops and Mall area has seen a lot of changes and amendments, all in an effort to accommodate other businesses, uses, and growth occurring over the years. • PED involved and helped facilitate local ownership of the Mall for the first time. • Looking to take core part of the Mall and some outlying parcels and remove them from existing PD. • Definitions of retail that can go in the Mall are very restricted. • Traditional malls have continued to struggle and other retail stores have exploded. • Unique situation in north side of town, big anchors are doing very well for their brand, i.e., WalMart, Dillards, and JCPenney’s. Lake Havasu City Page 2 Printed on 4/8/2019 Planning and Zoning Commission Minutes - Final March 20, 2019 • Mall proper, core part of mall with small tenant spaces, are having a hard time. • Free up and provide flexibility to allow local ownership and potential tenants bring other uses to the mall. • Activity drivers, Omni channel retailers, things a little more in line today. • Sporting venues, kid’s venues, other uses that bring people out for other reasons for extended periods of time gives an opportunity to bring a mix of uses to the mall to help make it sustainable for the long term. • Removing from PD provides flexibility, allowing what is allowed in the C-2, General Commercial District to be developed. If anything outside of that box is ever proposed, it would have to bring back to the Planning Commission and Council. • Even if removed from PD, there are still CCNRs and covenants underlying the Mall. Big box retailers are part of those covenants. Jarrett Portz, owner of part of Shops of Lake Havasu stated retail has been changing in past 10 years since the facility was completed and has a vision is to do something more in line with the future. Our mall has a lot of grey space- no infrastructure, no walls, plumbing, electrical, fire sprinklers etc.; unique scenario where we have a beautiful space with a lot of time and attention required to getting it to a usable facility. Omni channel owner, Tom Sanders, has committed to take a large space and have beautiful showroom where people can shop and have items shipped to their houses and also take some things home. Mr. Portz has plans to bring kid’s activities and amenities, sporting and indoor activities, arcades, and is in the late stage of negotiation with big box chain restaurants. Previous ownership was not local and did not understand Lake Havasu. Growing up and having office at the Mall, he is vested and staying very active with retailers. Mr. McGowan stated he is really in favor of Mr. Portz’s, expressed some concerns; however, wished him the best of luck. Mr. Portz stated when you look at numbers on the surface, they are not indicative of who we are as a community. We have a lot of discretionary income and a lot of baby boomers. Our visitors have a lot of network. When visiting Hangar 24 restaurant and people are standing in line, makes me hopeful. In Lake Havasu, we need to be more diversified to meet the same goal. We need to bring more to area that attracts a whole group of people. A difference in Mr. Portz from past Mall owners is that he is willing to put his money where his mouth is. Team is committed to invest so it helps to eliminate some challenges. Mr. McGowan, based on his restaurant ownership experience, expressed his concern regarding keeping a restaurant when numbers do not coincide with size of building, but wished him the best of luck. Lake Havasu City Page 3 Printed on 4/8/2019 Planning and Zoning Commission Minutes - Final March 20, 2019 James Gray, Partnership for Economic Development, stated that when they took the donation, they happen to be in a fortuitous position that they were already working with Omino channel retailers Tom and Meagan Sanders and that was a big driver. Omni channel creates a pattern where they have a larger customer field. For PED, employment is a huge deal. Tom and Meaghan have about 45 employees, an Amazon 50 fulfillment company. The designs they're working on for showroom will be at next level of retail. When you have 50K square feet, you have to be able to move 50K worth of merchandise; meeting customers where they are at, which is essentially on their phone. According to Jason Anderson, only thing needed is a phone, people don’t even test drive cars anymore. PED excited as the Mall proper is close to 200K. This is an opportunity to bring employers that still do retail, fit the covenant, but also bring density. When you have 50+ full time employees, that gives validation when pursuing restaurants. Mr. Portz has keen eye on creating inner court yard towards entertainment, family oriented, bringing people out there. 700 to 800 cars in Walmart every day, five to six percent of population. Mall not too far just too empty, so if that can be changed, we can get traction. When the PED first approached all three retailers, they stated they are Omni channel. Highly successful retailers are really trying to counteract movement and stay competitive. Facility space is phenomenal and can be used as northern hub. If we can fill it up and turn on the potential, it will help drive the north side of town. Chairman Bergen closed the public hearing. Ms. Ballard made a motion to approve [ID 19-1921] the request to amend PD 05-00200008 for the Shops of Lake Havasu by removing APN’s: 120-54-002, 120-54-003B, 120-54-004, 120-54-007, and 120-61-004, [from the Planned Development, rezoning the property to C-2] as presented [by Staff], seconded by McGowan, and carried by the following vote: Aye: 4 - Hardy, Ballard, McGowan and Bergen 7. CALL TO PUBLIC Mr. Walter Spawr stated he has recently discovered his property, Tract 2343, area between courthouse and Motor Vehicle Division, was rezoned without his knowledge and asked if there was a public hearing held to address this item. He asked how he could get archived information as to the rezone. Mrs. Gary, City Attorney, interrupted and suggested the Commission could not discuss the item and staff would assist him after the meeting. 8. FUTURE MEETING The next Regular meeting is scheduled for April 3, 2019. 9. ADJOURNMENT Chairman Bergen adjourned the meeting at 9:53 a.m. Lake Havasu City Page 4 Printed on 4/8/2019 Planning and Zoning Commission Minutes - Final March 20, 2019 _________________________________________ Donald Bergen, Chairman _________________________________________ Maria LaFrano, Recording Secretary Lake Havasu City Page 5 Printed on 4/8/2019