The Town Council has approved a special use permit (SUP) to allow for a residential housing project on property zoned for commercial use near Shea and Saguaro boulevards in Fountain Hills.

The permit was approved on a 4-3 vote, which came after a vote to deny the permit failed with the same split. Vice Mayor Alan Magazine, Councilwoman Peggy McMahon and Councilman David Spelich were those who opposed the permit.

The property is just north of Shea next to the MCO Realty offices on the corner. The site is part of the Redrock Business Center to the east of the intersection and is zoned C-1, neighborhood commercial and professional.

The greatest concern relates to the location of the property and how traffic would access Saguaro Boulevard with the driveway’s proximity to Shea Boulevard (approximately 300 feet, according to staff). The drive for the complex would also be aligned with Trevino Drive, with the Fountain Hills Medical Center directly across Saguaro Boulevard.

“I’m really hung up on what I think is a tragedy waiting to happen,” Magazine said before making the motion to deny the permit.

“I’m all for voting for (projects like this) if I have all the information so we can make an informed decision,” Spelich said.

Town Senior Planner Farhad Tavassoli told the council the current proposal is expected to generate traffic at a rate of approximately 170 vehicles per day. He added that the current commercial zoning on the property could likely generate more intense traffic and may not require the council consideration if no special use permit were required.

Tavassoli and Town Engineer David Janover both explained that staff would require a traffic impact statement as part of the project review process, and they would have the developer address any traffic concerns related to the project before a building permit is issued. Stipulations to require the traffic report as well as any mitigation measures are included in the motion to approve the SUP.

Also, the project residents would have access to Shea Boulevard through the Redrock Business Center without using Saguaro Boulevard.

Tavassoli described the proposed development as having 17 two-story residential units within six buildings on the 1.62-acre parcel (9.5 dwelling units per acre). He said a garage, great room and kitchen would be on the lower level with bedrooms on the second floor.

Tavassoli said the developer is planning condominiums for sale.

Realtor Dori Wittrig with RE/MAX Sun Properties told the council the developer is an award-winning builder from the Northwest and is presenting for a much-needed housing price point in Fountain Hills.

The units proposed are three-bedroom, 1,550 square-feet for approximately $500,000, below what is the current market for new housing in Fountain Hills.

In 2020 the same parcel was the subject of an SUP request for a 67-room hotel on the site. This met with significant neighborhood objection and the P&Z Commission voted unanimously to deny that request.