MCO Properties has submitted a proposal that could allow construction of new development in the Adero Canyon to begin within the next year.

The Town Council will be asked to consider amending a 2001 settlement agreement between the town and MCO that would double the number of allowable housing units.

MCO proposes that the master plan approved more than a decade ago for 171 one-acre plus custom-home lots on 431 acres be modified with an 80-acre Planned Area Development.

The proposed PAD includes 31 semi-custom home lots, 44 townhouse sites and 120 multi-family or resort/hotel units.

The remainder of the Adero Canyon parcel would then consist of 118 custom home lots and 30 semi-custom lots. This totals 343 housing units, twice the units of the existing plan.

MCO Properties President Jeremy Hall said the proposed change was brought about by the town’s desire to access its mountain preserve trailhead area at the northwest end of Adero Canyon, as well as a need to diversify the developer’s product.

Hall credits the initiative of Mayor Linda Kavanagh with beginning the process of re-evaluating the site.

“Economic conditions and consumer demand have changed over the past 15 years since the original land plan was conceived,” Hall said.

“Custom homeowners are building smaller homes, semi-custom demand is gaining momentum and low-maintenance attached product is surging as the aging baby boomers grow in number and downsize to a product that suits a more active lifestyle.”

The 2001 land agreement included both Adero Canyon and Eagles Nest, which is currently being developed.

Hall said the company still has considerable inventory of lots in Eagles Nest and would not start Adero Canyon development in the foreseeable future without expanding the available products.

“I’m an avid hiker and my goal, as expressed during my campaign for mayor, was to finally have our trailhead and direct access to the Preserve,” Kavanagh told The Times in an email response to questions about the plan.

“Our hope for that access rests on the development of Adero Canyon.”

The town is somewhat under the gun regarding the development of a preserve trailhead.

Fountain Hills has more than $1 million in development fees available to construct the trailhead but is under a deadline to use those funds. The trailhead design is completed.

Hall said the development would make an effort to capitalize on the desire for outdoor amenities wanted by new homebuyers.

MCO would construct separate hiking and bike trails, not sidewalks, extending from the entry to the development all the way to the Preserve trailhead.

There will also be a bicycle trail connection between the Adero Canyon entry and bike trails at the north end of Scottsdale’s Hidden Hills subdivision.

The PAD proposal would construct the extension of Eagle Ridge Drive past the CopperWynd Resort by about one-third to one-half the distance to the trailhead location.

The remainder would be improved for construction access but would not be completed until the rest of Adero Canyon is developed.

Bill Myers, chairman of the town’s McDowell Mountain Preservation Commission, said his panel had a brief general presentation on the proposal.

“We generally support access to the trailhead for construction,” Myers said. “There are a number of questions to be answered.

“Our primary goal is to allow residents to access the largest (public) asset in the community at $17 million.”

Hall said the project would provide an economic boost for Fountain Hills, which has been slow in recovery from the recession.

The MCO proposal estimates that one-time revenue for the town for the construction project could exceed $6.7 million.

It also suggests that total ongoing revenues benefitting both the town and the School District would total more than $1.3 million annually.

Kavanagh said she has reviewed the MCO plans and believes the town has much to gain by supporting the proposal.

“I was quite impressed with the beauty of the development and MCO’s promise to make our Preserve access a reality,” she stated.

“Adero Canyon will also bring in much-needed tax revenue for the town and add to the population, which will help to support our business community and our schools.”

Pending council consideration and approval of the requested amendments, MCO has proposed a phased schedule that begins in 2014 with relocation of a power line, construction of Eagle Ridge Drive, unpaved improvements to Eagle Ridge Drive and development of residential areas.

As of now staff is still reviewing the proposal and a Planning and Zoning Commission review of the proposal has not been scheduled. The council will not consider the plan until it has a P&Z recommendation.