Planning and Zoning Commission

David Diaz, Chairman Lake Havasu City Gabriele Medley, Vice Police Facility Chairman 2360 McCulloch Blvd North Suzannah Ballard Lake Havasu City, Arizona Joan Dzuro 86403 Jim Harris www.lhcaz.gov Paul Lehr Tiffany Wilson Matthew Mitchell, Alternate Planning and Zoning Commission Regular Meeting Lonnie Stevenson, Alternate JP Thornton, Alternate Minutes - Final Wednesday, September 20, 2023 9:00 AM 1. CALL TO ORDER Chairman Diaz called the meeting to order at 9:00 a.m. 2. PLEDGE OF ALLEGIANCE Chairman Diaz led the Pledge of Allegiance. 3. ROLL CALL Present: 7- Suzannah Ballard, Joan Dzuro, Paul Lehr, Tiffany Wilson, Lonnie Stevenson, JP Thornton and David Diaz Absent: 3- Matthew Mitchell, Jim Harris and Gabriele Medley Alternate members, Commissioners Stevenson and Thornton, were seated. 4. CORRESPONDENCE AND ANNOUNCEMENTS Planning Division Manager Chris Gilbert had no updates at this time. 5. MINUTES ID 23-3969 Approval of the Minutes of the August 16, 2023, Planning & Zoning Commission Regular Meeting (Shelby Hennigan) Chairman Diaz explained there are two sets of Minutes for approval and asked if there was a motion to approve ID 23-3969 for the August 16, 2023, Regular Meeting and ID 23-3972 for August 23, 2023, Special Meeting. Commissioner Ballard made a motion to approve the minutes of the August 16, 2023, and August 23, 2023, Planning and Zoning Meetings, seconded by Commissioner Dzuro. The motion carried by the following vote. Aye: 7 - Ballard, Dzuro, Lehr, Wilson, Stevenson, Thornton and Diaz 6. PUBLIC HEARING Chairman Diaz Provided an overview of the Public Hearing process. Lake Havasu City Page 1 Printed on 10/18/2023 Planning and Zoning Commission Minutes - Final September 20, 2023 ID 23-3956 A Request for a Rezone for 1695 Deer Run Drive, APN# 115-05-046, Metes and Bounds, from Agriculture-Preservation (A-P) District to Residential Single-Family (R-1) District (Trevor Kearns) City Planner Trevor Kearns provided an overview of the Staff Report. [Displayed PowerPoint.] Highlights of his presentation included: • Subject property is located at the west end of Deer Run Drive, west of Cabana Drive. It is .33 acres and currently vacant. • Properties to the west and south are part of Lake Havasu Memorial Gardens, zoned Agriculture-Preservation (A-P), and developed as a cemetery. • Properties to the east are zoned Residential Single Family (R-1) and developed as single family homes. • Properties to the north are zoned Multiple Family/Planned Development (R-M/PD) and are also single family homes. • The General Plan Future Land Use Map designates this area as low density residential, so the proposed zoning complies with the General Plan. Mr. Kearns stated a Citizens’ Meeting was held on July 22, 2023. The applicant’s Letter of Intent states a desire to rezone the property from A-P to R-1 to build a single story, 2400 sq. ft. home with an attached RV garage and pool. All regular R-1 Development Standards would apply. The applicant is present. Mr. Kearns concluded his report. As there were no questions for Staff, Chairman Diaz invited the applicant to speak. The applicant, Brian Wheeler, explained he and his wife recently purchased the property. They currently live about 3 blocks away and really like the area. It is just the two of them, so they will not have much impact on traffic. Their current home doesn’t have as much garage space as they would like, so they hope to build a larger garage on this lot. Commissioner Stevenson asked if the lot was graded when the applicant purchased it. Mr. Wheeler confirmed it was, noting he understands the grading was done in the early 2000s and the lot has been sitting as-is since. Chairman Diaz opened the Public Hearing. Seeing no comments, he closed the Hearing. Mr. Kearns stated that based on the findings, the Development Review Committee recommends the Commission forward a recommendation of approval to the City Council for Land Use Action No. 23-3956, for a Rezone for 1695 Deer Run Drive, APN# 115-05-046, Metes and Bounds, from A-P District to R-1 District. Lake Havasu City Page 2 Printed on 10/18/2023 Planning and Zoning Commission Minutes - Final September 20, 2023 This item will be on the City Council October 24, 2023, Regular Meeting Agenda Chairman Diaz asked the applicant if he understood the conditions. Mr. Wheeler responded affirmatively. Commissioner Ballard made a motion to recommend approval of Land Use Action No. 23-3956, for a Rezone for 1695 Deer Run Drive, APN# 115-05-046, Metes and Bounds, from Agriculture-Preservation District to Residential Single-Family District. The motion was seconded by Commissioner Wilson. The motion carried by the following vote: Aye: 7 - Ballard, Dzuro, Lehr, Wilson, Stevenson, Thornton and Diaz ID 23-3954 A Request for a Planned Development Rezone for 740, 730, 720, 710, 700, & 670 Delta Drive and 681, 691, & 701 McCulloch Boulevard S., Tract 2222, Block 5, Lots 1 Thru 9, from Limited Commercial (C-1) District to Multiple-Family/Planned Development (R-M/PD) District Allowing a Maximum Density Increase from 20 Dwelling Units Per Acre to 37.1 Dwelling Units Per Acre (Chris Gilbert) Mr. Gilbert stated there are a number of citizens present, along with the developer and his team. He explained this is a Planned Development/Rezone (PD/Rezone) request, which requires a conceptual development plan as part of the request. The conceptual plan is not the final detailed site plan and it is important to keep that in mind. If the conceptual plan is approved by City Council, it must be substantially followed. Significant changes would require the applicant to complete a revised PD/Rezone request. He stated exact numbers and dimensions aren't presented today because they are only requesting a rezone, but these things will be reviewed for compliance during the Design Review process. Mr. Gilbert reviewed his PowerPoint [Displayed PowerPoint.] Highlights included: • The project is comprised of 9 parcels that would be combined. • Across the alley are vacant lots also zoned Limited Commercial (C-1). • The C-1 properties are surrounded by Two Family Zoning Districts (R-2). Mr. Gilbert explained that there is a widely practiced zoning strategy called Euclidean Zoning, which stemmed from a landmark Supreme Court case, Euclid v. Ambler Realty Co. in 1926. It utilizes zoning districts to provide buffers for lower density districts. The layout of the zoning in this area is a classic example of Euclidean Zoning in that the higher density C-1 area is surrounded by a ring of mid-density R-2 zoning, providing a buffer between the commercial zoning and the lowest density Residential Single Family (R-1.) Mr. McCulloch designed Lake Havasu City as a master planned community, which is why there are textbook examples of this zoning strategy throughout the City. Lake Havasu City Page 3 Printed on 10/18/2023 Planning and Zoning Commission Minutes - Final September 20, 2023 Mr. Gilbert stated the applicant is requesting to down zone these properties from C-1, to Multiple-Family/Planned Development (R-M/PD.) Commercial use is a higher intensity use compared to multifamily. Displaying the Site Plan, Mr. Gilbert explained it is similar to the plan proposed to the Commission and City Council earlier this year. Changes include: • The number of units requested has been reduced by over 10% • The applicant is asking for 37.1 units per acre, instead of the original proposal of 41 units per acre. • The actual density of the units on the proposed site plan is 36.1, which reduced the total number of units from 87 to 78. • Due to the decrease in units, the parking ratio has increased. • The building footprint was reduced, resulting in a condensed perimeter. The applicant is no longer requesting an exception for parking structures to encroach into the required landscape area. Mr. Gilbert reviewed the Artist’s Conception, noting it is important because it is one of the things the City would hold the developer to as part of the PD/Rezone. If the applicant submits plans that are substantially different, they would need to come back for review. The applicant is proposing a building with good color ratio and various combinations of stucco and other material, creating an attractive, modern looking building. Displaying the Aerial Overlay with the footprint of the building, Mr. Gilbert noted the primary building will be set back at least 50’ from the property boundaries in all directions. Mr. Gilbert stated that it is important to point out that while this building may look tall at three stories, under the current C-1 Zoning, a hotel or motel of about the same height could be built without any review from the Commission or the City Council. Additionally, there are other allowable uses that could be as significant an edifice. The C-1 Zoning District allows a hotel, motel, or building of up to 25-feet. Mr. Gilbert explained the Site Plan shows 120 proposed parking spaces: 78 covered, 26 uncovered, 16 visitor, and 5 ADA spaces. Under the existing Development Code, 109 parking spaces are required. City Council recently adopted an ordinance amending the Development Code parking standards, which will go into effect October 12, 2023. Because the application was received before the new standards were adopted, they are vested under current standards. They would be short parking spaces under the new standards, but are over parked by 11 spaces per the current standards. Mr. Gilbert explained that in February 2023, Council amended the General Plan to designate this area as high density residential, creating an incongruity between the General Lake Havasu City Page 4 Printed on 10/18/2023 Planning and Zoning Commission Minutes - Final September 20, 2023 Plan and the zoning. Council did not take action on the PD/Rezone request and asked the applicant to make revisions and resubmit. The applicant revised their plans to address Council’s concerns, which is why the proposal is being presented again today. Reviewing the Building Elevations, Mr. Gilbert explained there is approximately a 12-foot grade change across the lot, so from McCulloch, only the top two levels will be seen from the street. However, from Delta Drive the building edifice will be more significant, with all three levels visible. Mr. Gilbert explained the Partnership for Economic Development (PED) completed a Housing Needs Assessment in December 2022 and underscored the following statistics: • The City has only half the statewide average number of multi-family units for workforce housing at 8.4%. The statewide average is 15.6%. • Apartment vacancy in the City at the time of the study was 1.5%, indicating high demand but very low supply. • National Association of Home Builder’s Housing Index for Mohave County has declined from 90% in 2012 to approximately 45% in 2022. • In Lake Havasu City specifically, of 575 houses sold in the first four months of 2022, only 7 sold for less than the median income family could afford ($273,000) based on the standard formula of mortgage verses household income. Mr. Gilbert explained that these statistics show a median income family in 2012 could afford 90% of the available housing inventory county wide, but only 45% was affordable for the average family by 2022. That percentage is likely to be lower for Lake Havasu City. He stated this is a significant housing crisis. Mr. Gilbert stated the principal recommended objective of the study was to expand the City’s apartment workforce housing inventory with a principal strategy of encouraging infill development, which is what this project offers. It is also in agreement with the General Plan “Guiding Principle LU.1: A Balance Land Use Pattern." He noted there are two categories within that General Plan Principle that support this kind of development. Mr. Gilbert asked if there were any questions so far from the Commission. Commissioner Dzuro asked if he could expand on the findings of the traffic study. Mr. Gilbert responded that a traffic study conducted by the applicant identified basic issues that need to be remedied. The City Engineers made the following recommendations: • Address ingress/egress issues. • Include traffic calming measures on Delta Drive Lake Havasu City Page 5 Printed on 10/18/2023 Planning and Zoning Commission Minutes - Final September 20, 2023 • Install turn lanes on McCulloch Blvd. • Improve alley access. He explained that based on comments from the Citizen's Meeting, residents did not want a second access on Delta Drive. The applicant removed the proposed Delta Drive access and relocated it to the alley off McCulloch Blvd. City Engineers recommend improving the 30-foot wide alley to allow sufficient two-way traffic. Commissioner Ballard asked what the setbacks off McCulloch Blvd will be if the zoning is changed to R-M/PD. Mr. Gilbert responded that the building will be over 50-feet from the McCulloch right-of-way. Commissioner Ballard stated that it looks like the parking structure encroaches into the setback and asked how far the walls will be from the street. Mr. Gilbert responded that walls would be on private property. A 10-foot landscape buffer is required. Parking areas do not have the same setbacks as buildings. The applicant is not requesting setback variances for parking, nor are they requesting intrusions into the landscape buffer. The retaining wall can be built in the landscaped area. Landscaping will be reviewed during Design Review to ensure compliance with the Development Code. Commissioner Ballard asked what the setback is from McCulloch Blvd for the adjacent C-1 properties? Mr. Gilbert stated that under the Development Code, there is no minimum depth for front, rear, or side yard setbacks. C-1 Zoning allows zero lot line development. Commissioner Stevenson asked if there is precedence for this kind of density in the City. Mr. Gilbert advised there are some complexes that have in the vicinity of 100 units, which is similar. Most of the apartments in the City are smaller, averaging 16 units or less, but there are instances of high density complexes. Many of these are closer to Lake Havasu Avenue. This particular commercial area has been vacant for decades, with only one lot developed. It is currently a dog grooming and boarding facility. Commissioner Stevenson recalled density being an issue when City Council declined to take action on this in February and asked if they provided direction for the reduction. Mr. Gilbert confirmed specific direction was not given, but the applicant reduced the density from 41 units to 37.1 units per acre. The conceptual plan shows an actual density Lake Havasu City Page 6 Printed on 10/18/2023 Planning and Zoning Commission Minutes - Final September 20, 2023 of 36.1 units, but the request of one unit more gives them a small amount of flexibility without constituting substantial change. Upon reviewing the request, Staff believes this density is acceptable. Chairman Diaz recalled discussion about traffic at the Council Meeting and wants to see those concerns addressed. He understands the parking requirement under the current standards is 109 spaces and asked what the requirement would be under the new standards. Mr. Gilbert responded that the project would be 28 spaces short under the new standards. Referencing the Building Elevations, Chairman Diaz asked for clarification on what the elevations will look like from Delta Drive. Mr. Gilbert explained that Delta Drive dog-legs around the property and has two views, the north elevation and the west elevation. He added that while some single family homes have been built on Delta Drive, the zoning for those properties has always been multifamily to provide a buffer for the R-1 properties behind them. When factoring the R-2 zoning, the buffer for the single family zoning is approximately 200 feet, so there is a significant setback from low density residential. The applicant has included additional buffering by providing a 50-foot building setback from the property line. With no further questions, Chairman Diaz invited the applicant, Bret Deru, to speak. Commissioner Dzuro noted the proposal states there will be no short-term or vacation rentals and the intent is for these to be long-term rentals. She asked how the applicant can guarantee that. Mr. Deru explained it would be stay under their control as a rental. Commissioner Ballard asked where the covered parking is located. Mr. Gilbert referenced the Site Plan, showing the covered parking on the north, west and south sides of the property. The parking spaces adjacent to McCulloch Blvd will not be covered. Commissioner Ballard asked if the wall along McCulloch Blvd will be high enough to block parked cars from view. Mr. Deru explained there will be a retaining wall. The height will vary because the property naturally slopes, but cars will not be visible because the parking will sit lower than the street. Commissioner Stevenson understands there is a balance between costs to improve the property and the rental market. He asked what the target rent is. There has been a lot of discussion about affordable housing, but what is considered affordable can vary greatly. Lake Havasu City Page 7 Printed on 10/18/2023 Planning and Zoning Commission Minutes - Final September 20, 2023 Mr. Deru explained the market and material costs can change, but their goal is to have rent significantly lower than what is available so it is affordable for the local workforce. He explained they will offer several layout options and, without knowing final construction costs, their targets are $800-950/month for single units, $1,150-1,250/month for two-bedroom units, and $1,300-1,500/month for three-bedroom units. Commissioner Ballard noted the request includes a 3-foot increase in height from the current zoning and asked if the applicant had considered constructing a two-story building. Mac Hall, with Iris Development, explained the request is 3-feet over the current C-1 Zoning requirement, but 2-feet under the maximum building height for the R-M/PD Zoning. R-M Districts allow a height of up to 30-feet, and their proposal is 28-feet. McCulloch Blvd is the baseline for the elevation, so they will be recessing the lot 12-14 feet to ensure the building is not over height. Chairman Diaz asked when the property was purchased. Mr. Deru advised it was purchased approximately 1.5 years ago. Commissioner Lehr asked if the City’s recommendations in response to the traffic study would significantly change the concept. Mr. Hall responded that while there will be improvements along the streets and alley, the proposed layout will not be affected. Referencing the proposed trash enclosure at the corner of Delta Drive and McCulloch Blvd, Commissioner Lehr asked how they envision screening it. Mr. Hall explained the enclosure will sit about 10-feet below McCulloch Blvd, so they may have the option of enclosing it or relocating it. Commissioner Lehr noted they have a landscape buffer that could help with screening. Mr. Hall agreed, adding the retaining wall will have a screen wall on top that can also be utilized. Commissioner Lehr stated that an interesting advantage of this site plan, related to what could be constructed under the current zoning, is the setbacks it offers. The majority of the proposed building area is where parking-in-common would typically occur, so the view corridor is actually expanded. With no further questions, Chairman Diaz opened the Public Hearing. Angela Murphy, resident, owns a rental property on Delta Drive and asked if an assessment was done to evaluate the neighborhood. Her renters have told her they would move if this goes forward, causing a hardship for them both. They were unable to attend today, but their concerns include smelling trash, an increased density of people, and traffic. She explained the question was never if these lots would be built on, but rather Lake Havasu City Page 8 Printed on 10/18/2023 Planning and Zoning Commission Minutes - Final September 20, 2023 what would be built. The assumption was that it would be something commercial with drive-thru traffic, like a Dunkin Donuts or a carwash. She added there is no room for children to play, trash will accumulate with such a high density, and 1.5 parking spaces per unit is not enough. She has rules so parking is limited to the driveway and garage to help preserve the neighborhood character. She stated there is one individual on the block who understands this project is driven by Section 8. She is not sure if it is a rumor, but in her experience that can lead to issues. There is plenty of room on the north and south sides of town, so she is not sure why this area is being considered. Christel Patterson, resident, stated it is a beautiful building and she appreciates that the developer made changes, but her major concern is the density. If the City allows this to happen here, it may be allowed to happen on the lots next to it, and then other vacant lots throughout the City. She does not believe this density is what Robert McCulloch intended, adding it is designed for major cities. Stacking people up with limited facilities, no bus services, and no parks or recreation area for children is going to create issues. She is concerned this will set a precedent, adding that she supports affordable housing, but the density is not right for the City. While the zoning around the property is R-2, many of the lots were developed as single-family homes and do not constitute a true buffer. Michael Powers, resident, asked what the visual height of the west elevation is, as it is the view that nearby residents will see from their front doors. Mr. Gilbert responded the parapet height from finished floor is 39-feet, noting finished floor grade is 12-feet below the benchmark of McCulloch Blvd. The proposed height is allowed because the Development Code allows them to grade down. Mr. Powers explained that he is trying to put into perspective how high this building will appear. The building may appear to be a two-story building from McCulloch Blvd because of the grade change, but surrounding properties will see a 40-foot building, which is well over the allowed 30-foot building height. Shelia Murphy, resident, stated the developer is looking to use McCulloch Blvd as the basis for their height, but only lots 6-9 have frontage on McCulloch Blvd, which is a less than a third of the project’s area. She asked why the height of Delta Drive is not being considered. If it were, the overall height would be reduced significantly. By referencing McCulloch Blvd, they are being allowed to construct a much larger building than would be allowed on lots 1-5. Brian Strahl, resident, doesn’t think that the neighborhood has a problem with apartments, but they are concerned about the proposed density. In response to Commissioner Stevenson’s question on whether there is a precedent in the City, Mr. Strahl believes the Lake Havasu City Page 9 Printed on 10/18/2023 Planning and Zoning Commission Minutes - Final September 20, 2023 answer is no and he doesn’t want to see this set a precedent. The City has density limits for a reason and he doesn’t believe that Mr. McCulloch intended to have three-story buildings in the middle of residential areas. There is no where in the vicinity for kids to go and he is concerned that a lack of things to do will lead to increased crime and vandalism. Mr. Strahl explained citizens in this area understood they were purchasing land next to a commercial area and are okay with the property being used for multifamily. What they aren’t okay with is skirting the rules for builders, adding the builder bought the property knowing its zoning. He stated that at the Citizens’ Meeting before the February Meeting, the builder was asked why they didn’t consider a two-story building. The response was that it would not make enough money. He explained that it is not the problem of the residents and it shouldn’t be their burden. He would love to see this property developed and would like to see more multifamily housing, but does not want to compromise neighborhoods by increasing density. He stated that markets are changing and wages here do not keep up with the costs. If these apartments cannot be filled by local workforce, it is possible that they will opt to apply for Section 8 status to fill vacancies. Jason Deru, applicant, stated they have listened to concerns expressed by residents. Under the current zoning, he could build a building of similar size and height without citizen input as long as he called it a hotel. In response to comments that they are doing this just to make money, Mr. Deru explained they are motivated to build this project because there is a need for workforce housing. The current estimate for this project is $18 million. Divided by 76 units at $1000-1500 per month, it will take them some time to recoup their costs. He added that they have looked into property in other locations, but most of the vacant commercial lots are cost prohibitive and rent would be unaffordable to those in the workforce. He stated there is an immediate need for affordable housing and they are trying to build something in the community that will help to address that need. Steve Bernier, resident, would like to know what is the drop in elevation from McCulloch Blvd to the dog-leg of Delta Drive. Mr. Gilbert confirmed it is 12-feet. Mr. Bernier asked if they would recess the property along McCulloch Blvd. Mr. Gilbert responded affirmatively. Mr. Bernier asked if there would be a retaining area to accommodate the drop in elevation, because he understood from previous meetings that the grade would be built up along the curve, meaning the building height would be well over 39-feet high. Mr. Gilbert deferred to the applicants’ engineer. Mr. Hall explained there would be a retaining wall along Delta Drive and the reason for that is to keep the entrance as close to McCullouch Blvd as possible. If the entrance is moved down to max grade, it would have to be moved further down Delta Drive. The retaining wall along the dog-leg would be approximately 6-feet. Lake Havasu City Page 10 Printed on 10/18/2023 Planning and Zoning Commission Minutes - Final September 20, 2023 Mr. Bernier stated that would result in the building being 45-feet from the street level, which is too tall. Brian May, resident, asked if the City had taken into account the increased traffic from the subdivision planned to for development off Window Rock Road, which is approximately two blocks south on McCulloch Blvd. The increased population from these two developments will result in more traffic. He added the City has had problems with traffic in the past, referencing recent discussions about Cherry Tree and Bison Boulevards. The City had to use their resources to address traffic issues from the construction of Starbucks on Lake Havasu Avenue. He is concerned this will create traffic problems the City will have to address down the road. He stated that when the City gives concessions to developers, it gives the perception that there may be backdoor deals. Chairman Diaz responded that there are no back door deals happening. Bertha Bernier, resident, is a homeowner on Delta Drive and said this 45-foot building will be the first thing she sees from her front door. She is not against a building or workforce housing, but she is against the density. She is concerned this project will have a negative impact on their property value. There are three-story buildings on Lake Havasu Avenue, but that is where they belong, not in residential neighborhoods. She stated a lot of residents share her opinion and she hopes the Commission will listen to their concerns. Commissioner Lehr stated he thinks there may be a misunderstanding of the building height, explaining the max building height will be 39-feet and the site will be cut into the corner of Delta Drive and McCulloch Blvd, not raised up. At no point will the building be 45-feet tall. Patty Simonek, resident, has lived in the neighborhood since 2001 and it is a great, quite neighborhood. She noted the intersection of McCulloch and Chemehuevi Boulevards is busy and there have been accidents. A four-way stop or other traffic control measures will be needed. In regards to height, she explained many residents have developed their yards with pools, walls, and landscaping and she is concerned that a building this tall will compromise their privacy. She explained there is a fine line between affordable and low-income housing, adding she doesn’t see how they can build affordable housing without already going through the channels to offer low-income housing. Sandy Lawrence, resident, lives a block up from Chemehuevi Blvd and is concerned about the traffic. There was a speed-reader sign on McCulloch Blvd and she saw the sign read up to 55mph. With current traffic, she can no longer get safely onto McCulloch Blvd from Churchill Drive and has observed school buses struggling to get onto McCulloch Blvd. She doesn’t think this is taking into consideration the safety of children who may Lake Havasu City Page 11 Printed on 10/18/2023 Planning and Zoning Commission Minutes - Final September 20, 2023 live there or residents already in the neighborhood. She is concerned that the increase in traffic and density will cause homes to depreciate and is not in agreement with development as presented, adding there are changes that could be made to reduce its impact on the area. Nancy Clapp, resident, lives a few blocks away from this development is not against a multifamily project that falls within the density allowed under the current zoning, but does not agree with increasing the density. She acknowledged that there is R-2 zoning, but it is developed with single-story homes. When they built their house, they had to reduce their grade to accommodate their garage door as they were not allowed to go over the 15-foot max height. She asked the Commission to be fair and hold developers to the same standards as homeowners. She explained that when residents bought into that area they understood it was commercial. They were expecting something like a convenient store or urgent care. The developer bought land cheap and is now asking for a zoning change and increased density, but she feels there are still a lot of unanswered questions. She stated that no one would be here today if they wanted to build a hotel because the current zoning allows for it. Larry Ferguson, resident, asked who votes on this item. Chairman Diaz explained the Commission will vote to make a recommendation that is forwarded to the City Council, who makes the final decision. This item is scheduled to go to the Council in October. Rob Sampson stated that he is working with the development team, but wanted to provide input as a local business owner. The hardest thing for businesses to do is find employees to come to Lake Havasu. It isn’t because this isn’t a great city or it lacks opportunities, but because it is difficult to find affordable housing. They have an employee who recently moved here and she was unable to find a place to stay. They signed a lease at an extended stay hotel for $1,800 per month, with the price increasing to $2,100 per month. He understands this is a challenging topic, but it is a real problem. The City has encouraged business owners to help address the issue of affordable housing and not one of them has agreed to do it. The Derus have come forward and said we can do this. This will be housing for young professionals. He understands that people can be fearful of the unknown, but in his opinion, this will benefit the City. He added that most of the property that should have been used for this type of project, such as Swanson Avenue, was not developed that way because there wasn’t enough foresight in the Zoning Code. There is now the opportunity for someone to come forward and make a significant investment in the community to address the housing issue. Tina Corson, resident, lives about a block away and does not agree with the density increase, stating the developer bought the property knowing the zoning. Most of the neighborhood is single family homes and it is quiet and peaceful. A project like this would Lake Havasu City Page 12 Printed on 10/18/2023 Planning and Zoning Commission Minutes - Final September 20, 2023 change the whole fabric of the neighborhood. Tracy Patterson, resident, stated that she hopes the Commission sees what the room is full of: investors in the City. People who live here full time, shop here, and are patrons of restaurants and businesses. It is not a matter of not wanting people to live here, as they have all been afforded the right and privilege to do so. She explained that she came from a city in California that started changing areas to high density and it snowballed, resulting in some blighted areas. If something is being built for the sake workers, it should be built close to where they work and this is so far off the beaten path. This is why areas like Swanson Avenue are so popular, because it offers the opportunity to carpool or walk to work. She asked the Commission to take into consideration public opinion, adding she is grateful for the opportunity to have affordable housing, but if it is really about providing housing to workers, there may be a better plan. Chairman Diaz asked if there were any additional comments. Seeing none, he closed the Public Hearing. Mr. Gilbert stated that there were many comments from the developer and the public. The Public Hearing is an important part of the review process, but it is Staff's job to approach each review from a neutral point of view to determine if it meets the Development Code and goals of the General Plan. He explained that PD/Rezone applications are often submitted for commercial and multifamily projects, so this is not an unusual request. Mr. Gilbert advised that based on the findings, the Development Review Committee recommends the Planning Commission forward a recommendation of approval to the City Council for Land Use Action No. 23-3954, for a Planned Development Rezone for 740, 730, 720, 710, 700, & 670 Delta Drive and 681, 691, & 701 McCulloch Boulevard S., Tract 2222, Block 5, Lots 1 Thru 9, from Limited Commercial (C-1) District to Multiple-Family/Planned Development (R-M/PD) District allowing a maximum density increase from 20 dwelling units per acre to 37.1 dwelling units per acre with the following conditions: 1. The property shall substantially match the conceptual Site Plan provided with the request, and 2. Building Permits and Design Review for compliance with City Codes, including the Lake Havasu City Public Works Department traffic impact comments, will be required prior to development of the property. Chairman Diaz asked the applicant if they understand the conditions. They responded affirmatively. Lake Havasu City Page 13 Printed on 10/18/2023 Planning and Zoning Commission Minutes - Final September 20, 2023 Chairman Diaz explained that Robert McCulloch was very forward thinking when he designed the City and installed commercial pods, which were intended to offer areas of convenience so residents didn’t have to drive to the center of town. One thing that came up today, and that he has heard from other residents, is concern about developers buying property knowing the zoning and then asking to change the zoning. The City has a General Plan and he believes it is important to stand behind it. Because of that, he will be voting no on the request today, noting that he is only one vote. Commissioner Ballard explained she has serious reluctance in voting for this. She is a commercial realtor and understands property owners have the right to request a rezone for development. However, in this particular instance, her biggest concern is the density. She agrees that the limitation of 20 units per acre was put there for a reason and most people have developed property in accordance with that. She understands the need for affordable workforce housing, but doesn’t think it should disproportionately affect one area. Commissioner Ballard stated she also has an issue with the height increase and does not believe having a building of this height in this neighborhood is the right thing to do. Multifamily dwellings would be a good use for this property, but not at the proposed density. Finally, she is concerned with the traffic flow, noting this many units in a residential neighborhood will cause a problem. She stated that, in deference to the residents, she cannot support this project. Commissioner Wilson asked what the density would be for a hotel, as allowed under the current zoning. Mr. Gilbert explained there is no density limit or setback for commercial buildings. The maximum height is 25-feet, but the lot could be graded down to allow a building of similar height. Commissioner Dzuro acknowledged that this is a difficult situation, adding that she has seen multiple projects come before the City with the goal of providing attainable housing for people who work in the City. Each time, residents say they aren’t against these projects, but they don’t want it in their neighborhood. She understands that, but with the City 90% built out, it is difficult to balance. She explained that the builder was correct when he said there is not a lot of land available for projects like this. Additionally, the City is land locked by State and Federal land. They don’t sell their land often and when they do, its very expensive. The City has to look at the vacant land available. She noted the Commission just approved a rezone for another property owner who bought a lot and asked to rezone it. Approval of rezoning requests are not uncommon. This housing is for people who work at restaurants and local businesses, who teach our kids, and for kids who grew up here and want to return. Commissioner Dzuro explained she likes that the developer is looking at a price range Lake Havasu City Page 14 Printed on 10/18/2023 Planning and Zoning Commission Minutes - Final September 20, 2023 between $800-1,500 per month. She doesn’t think that qualifies as low-income, but it is reasonable for someone working full-time. She understands how it feels to look out over a vacant lot that is built up, as it has happen to her. The City has grown enormously over the past 30 years, noting the population is nearly 70,000 people and it gets 800,000 visitors a year. This could be developed as a hotel, with a similar height and appearance. It would have transient people in and out at various hours. She has listened to residents' concerns and believes the builder has as well because they reduced the density and worked to address parking and traffic concerns. Commissioner Dzuro stated she does not know or have any connections with developers, other than the builder who built her house. Referencing the housing study, she noted that 60% of the people in Lake Havasu City cannot afford to buy a house and people need a place to live. She explained that we are trying to figure out a solution and constantly hear that this isn’t the right project. She asked when it will be the right project. She stated that she is inclined to vote to recommend approval for this item. She wants the developer to follow through with the recommendations to mitigate traffic issues and comply with all City codes. Commissioner Thornton stated the Commission appreciates the residents’ opinions, passion, and unity, noting that is the beauty of this town. Workforce housing is a big issue. There is so much need for housing in our community and he doesn’t see this becoming Section 8 housing. Kids getting out of high school or returning from college can’t afford a place to live here. The cost of living and housing have gone up so much that workers already living here are stretched. He sees this as an opportunity for people to get into a new development at an affordable price. He explained this is a tough situation and understands that some people may not be happy about the density, but as a community we have to look at the bigger picture for the value to our community. Growth and development are happening, and it is important to pay attention to local workers and companies that are struggling because workers can’t afford a good place to live. He hears everyone’s opinions and thoughts, but something like this can’t be developed on Lake Havasu Avenue because the cost of developing in that area is too high, resulting in unaffordable rents. He stated he sees more pros than cons for this project. Referencing the Tract Map, Commissioner Stevenson stated that lots 6-9 were designed to face McCulloch Blvd and would use that street as a marker for the elevation, while lots 1-5 were designed to face Delta Drive and would have a lower elevation. The challenge would be the parking-in-common and the 12-foot slope of the area. He explained that today, nothing works on these lots without combining them. In the past, mom and pop store fronts would fill these small commercial pockets, but as the City has developed and grown, that doesn’t make sense anymore and these areas have remained vacant. He thinks the Derus have put together a fantastic idea to meet a major need for the Lake Havasu City Page 15 Printed on 10/18/2023 Planning and Zoning Commission Minutes - Final September 20, 2023 community, but he thinks the problem is the density. Commissioner Stevenson explained it is difficult to balance the thought process of 50 years ago with the needs of today. In his early days of real estate, the City’s housing needs were met with two-bedroom/two-bath homes with a carport, but today’s houses are much larger with big RV garages. It is important to bridge the gap between the vision of 50 years ago and the community we live in today. He thinks what the Derus have put together is a great step in the right direction, but the plan as proposed is just a little too heavy for him. Commissioner Wilson explained there is a financial aspect to any project that a developer must look at. With the proposed density, the developer likely won't make money in the first year or even the first 10 years. The proposed density is probably the minimum required to make project financially viable. She has heard that residents aren’t opposed to multifamily in the area, but have concerns about the density and number of units. If it made financial sense to develop this with fewer units, they likely would have done that. She stated that high development costs are affecting all areas of the City, which is why we don’t have the housing we need. Commissioner Lehr stated he would be voting in favor of this project. It complies with the parking and landscaping requirements. He acknowledged that it is a tall, dense building, but the positioning of the building will put the density and height in the central portion of the site. This will result in a large setback, in contrast to having walls built up to Delta Drive or McCulloch Blvd, as could be done under the current zoning. From his perspective, the setback will help to reduce any negative impacts. With no further comments, Chairman Diaz asked if there was a motion. Commissioner Dzuro moved to recommend the Planning Commission forward a recommendation of approval to the City Council for Land Use Action No. 23-3954, for a Planned Development Rezone for 740, 730, 720, 710, 700, & 670 Delta Drive and 681, 691, & 701 McCulloch Boulevard S., Tract 2222, Block 5, Lots 1 Thru 9, from Limited Commercial (C-1) District to Multiple-Family/Planned Development (R-M/PD) District allowing a maximum density increase from 20 dwelling units per acre to 37.1 dwelling units per acre with the following conditions: 1. The property shall substantially match the conceptual Site Plan provided with the request, and 2. Building Permits and Design Review for compliance with City Codes, including the Lake Havasu City Public Works Department traffic impact comments, will be required prior to development of the property. The motion was seconded by Commissioner Thornton. The motion carried by the following vote. Lake Havasu City Page 16 Printed on 10/18/2023 Planning and Zoning Commission Minutes - Final September 20, 2023 Aye: 4 - Dzuro, Lehr, Wilson and Thornton Nay: 3 - Ballard, Stevenson and Diaz 7. CALL TO PUBLIC Chairman Diaz opened Call to Public. Emiliano Torres, resident, stated that on the first zoning item, it was asked if the lot had been grading and he does not think that is a concern of the Commission. He explained that you can’t have someone grade a lot prior to rezoning assuming it will aid in the approval. He noted there is a grading happening above Cherry Tree that does not comply with the General Plan. It is not right to say property has been graded, so the zoning must be changed. Seeing no additional comments, Chairman Diaz closed Call to Public. 8. FUTURE MEETING Mr. Gilbert announced that this is the last Commission meeting for Luke Morris, as he is retiring at the end of the month. He received a round of applause. The regular meeting scheduled for Wednesday, October 4, 2023, has been cancelled. The applicant made changes to their site plan and Staff needs time to review the changes. The next regular meeting is scheduled for Wednesday, October 18, 2023, at 9:00am. There are three tentative items on the agenda. 9. ADJOURNMENT Chairman Diaz adjourned the meeting at 10:43am. _________________________________________ David Diaz, Chairman _________________________________________ Shelby Hennigan, Recording Secretary Lake Havasu City Page 17 Printed on 10/18/2023