Public Hearing followed by discussion and possible action on any and all matters regarding Rezoning Case No. 2025-0274 and Ordinance No. 475.  An Ordinance of the Mayor and City Council of the City of San Luis, Arizona, amending the Official Zoning Map of the City of San Luis by changing the zoning classification of approximately 3.13 acres from Rural Area Residential (RA-10) to Medium-High Density Residential (R-2) on property located at the northwest corner of 6th Avenue and Urtuzuastegui Street; repealing any conflicting provisions; and providing for severability.  (Jose A. Guzman, Director of Development Services)

A. Staff presentation
B. Open Public Hearing
C. Call to the public on this item
D. Close Public Hearing
E. Action on Ordinance No. 475 by title only
F. Action on Ordinance No. 475

This is a request from Vega & Vega Engineering on behalf of Comite de Bienestar to rezone from Rural Area (RA-10) to Medium-High Density Residential (R-2) approximately 3.13 acres being a portion of Assesors Parcel Number 775-56-001. Property is located at the northwest corner of 6th Avenue and Urtuzuastegui Street. The request for Medium-High Density Residential (R-2) will allow the applicant to increase the residential density to accommodate a townhome subdivision, as proposed in the site plan attached.

The original proposal included both townhomes and apartment units. Since the initial submittal, the applicant has revised the request to proceed in phases and is now seeking approval only for the townhomes portion of the project (Phase 1). Any future phases, including additional townhomes or apartment development, would require separate applications, review, and public hearings, at which time residents would have another opportunity to provide public comment.

Existing Adjacent Zoning Districts:
To the North R-3 (Las Casitas Apartments and Frontera Estates Subdivision)
To the West L-I (San Luis Industrial Park)
To the South LI (Vacant State land)
To the East R1-6 (Bienestar Estates No. 3 Subdivision)

REVIEW(S):
As part of the review process, all land use cases are reviewed by various city and outside agencies; staff have not received comments from the other agencies.

As required by State Statute, staff sent notification letters to property owners within 300 feet of the proposed project (60 letters). We have received two opposition letters (of 30 properties) from adjacent
properties, which are attached to this report. 

Under A.R.S. § 9-462.04(H), "If the owners of twenty percent or more of the property by area and number of lots, tracts and condominium units within the zoning area of the affected property, excluding government-owned property, file a protest in writing against a proposed amendment, the change shall not become effective except by the favorable vote of three-fourths of all members of the governing body of the municipality. If any members of the governing body are unable to vote on such a question because of a conflict of interest, then the required number of votes for passage of the question shall be three-fourths of the remaining membership of the governing body, if such required number of votes is not less than a majority of the full membership of the legally established governing body. For the purposes of this subsection, the vote shall be rounded to the nearest whole number. A protest filed pursuant to this subsection shall be signed by the property owners, excluding government-owned property, opposing the proposed amendment and filed in the office of the clerk of the municipality not later than 12:00 noon one business day before the date on which the governing body will vote on the proposed amendment or on an earlier time and date established by the governing body. "

Staff has reviewed the submitted petition and confirmed that the protest meets the statutory threshold. Therefore, approval of this rezoning will require a three-fourths majority vote (six out of seven Council members).

PUBLIC MEETINGS:
As required by State Statute and City Code, a Citizen Review Meeting was held at the City Hall on August 28, 2025, in the City Hall Chambers at 6:00 p.m. The intent of this meeting was to allow the public to learn about the project, ask questions, and express any comments. Four people from the public were in attendance, all of whom, according to public records, reside within 300 feet of the subject property. One property owner expressed concerns that the construction of a tall apartment complex adjacent to his residence would result in an invasion of privacy, as tenants on the upper floors would have unobstructed views into neighboring backyards. He suggested that the apartment buildings be reoriented or relocated to prevent direct views into adjoining properties.

During the September 9, 2025 Planning and Zoning Commission meeting, several residents raised concerns regarding the proposal. These included: 

• The height of proposed apartment buildings and loss of privacy for adjacent homes;
• Potential damage to nearby homes from construction vibration caused by grading, excavation, and heavy equipment;
• Increased traffic and parking issues on surrounding streets;
• Perceived overcrowding or higher density compared to existing neighborhoods;
• Noise and dust from construction;
• Impact on public services such as schools, parks, and healthcare facilities;
• Fear of property value decline and increased vandalism or public safety issues.

Staff recognizes the concerns raised by neighbors and appreciates their active participation in the process. 

Following the September meeting, staff met directly with the developer to review and address the residents’ input. As a result, the applicant revised the project layout to move the apartment buildings
farther south, away from the property line shared with single-family homes, and replaced that portion with single-story townhomes to preserve privacy and neighborhood compatibility.

Although not required by law, staff also organized an additional neighborhood meeting to present the revised plans to residents and allow for continued discussion and feedback. Residents reiterated their previously mentioned concerns.

ANALYSIS:
Privacy
Staff agrees that privacy is an essential component of neighborhood livability. The original proposal placed multi-story apartments closer to single-family homes, which could have created direct views into adjacent backyards. In response, the revised plan moves those buildings away from the property line and introduces single-story townhomes as a buffer. Staff is recommending a condition of approval that limits the townhomes adjacent to the northern property line to one story only to ensure long-term protection of neighboring privacy.

Construction Impacts on Existing Homes
Concerns about construction vibration, grading, and dust are understandable. While short-term construction activities are unavoidable, they are regulated through building and engineering standards that require the use of best management practices to control dust and mitigate noise.

However, claims of potential structural damage to nearby homes from grading or heavy machinery are more complex. Such damage is uncommon but possible under specific soil conditions. Developers are encouraged to perform pre-construction evaluations, use modern compacting equipment designed to minimize vibration, and maintain open communication with nearby property owners throughout construction.

The City’s Building Safety Division and Engineering Department will monitor site work for compliance with applicable standards, and residents are always encouraged to report concerns during construction so they can be promptly investigated.

Traffic and Infrastructure
All rezoning cases that may generate additional traffic are required to provide a Traffic Impact Study prepared by a licensed professional engineer. This study identifies whether improvements such as additional turn lanes, signage, sidewalks, or pedestrian crossings are needed to maintain safety and traffic flow in the area. If improvements are required, the developer, not the City or nearby residents, must complete or pay for those improvements as part of the project approval process.

In addition, every new housing unit built in San Luis is subject to the City’s Development Impact Fees (DIFs), which are based on a technical study adopted by the City Council and updated every five years. These fees ensure that each new home or apartment contributes its fair share toward community infrastructure, including roads, parks, public safety facilities, water, and wastewater systems. This means that when new homes are built, they help fund the improvements needed to support the City’s growth, rather than placing that cost on existing residents.

Density and Community Character
While the proposed zoning allows for higher density than the surrounding neighborhood, the location and design create an appropriate transition. The site lies between residential uses to the east and industrial zoning to the west. Introducing townhomes here provides a logical buffer while helping meet the City’s need for more housing options.

The General Plan 2040 emphasizes the importance of offering a variety of housing choices to accommodate the community’s diverse population while making efficient use of infrastructure. Concentrating housing near major corridors like 6th Avenue supports smart growth and reduces development pressure on outlying agricultural lands.

Schools, Health Services, and Property Value
Concerns about school capacity, healthcare access, and property values are not uncommon during rezoning discussions. However, these are not factors that cities can regulate through zoning decisions. School districts, healthcare providers, and the market independently adjust to community growth. The City remains available to coordinate infrastructure planning with these entities, but cannot restrict zoning based on speculative impacts.

Parking
The City’s zoning code establishes minimum on-site parking requirements for townhomes. The developer must meet or exceed those requirements. Parking on public streets within adjacent neighborhoods is not restricted to residents only; the public right-of-way is open to all vehicles that comply with traffic laws. If a parked vehicle obstructs a driveway or violates parking regulations, residents can contact the Police Department for enforcement.

PLANNING AND ZONING MEETING:
A Planning and Zoning Commission Regular Meeting was held on October 14, 2025, the item was continued to the next Planning and Zoning Meeting for further discussion due to a tie in the motion to forward this item to City Council with a recommendation of approval, three (3) commission members in favor and three (3) commission members against.

A Special Planning and Zoning Commission Meeting was held on November 6, 2025. A motion was made to forward Rezoning Case No. 2025-0274 to the City Council with a recommendation of approval, subject to the conditions of approval recommended by staff. The motion did not pass, receiving three (3) Aye votes and four (4) Nay votes. As a result, the item is being forwarded to the City Council with a recommendation of denial.

CONTINUANCE REQUEST AND PROJECT PHASING
On November 12, 2025, the applicant formally requested that the Minor Amendment and Rezoning cases be continued in order to complete a Traffic Impact Analysis (TIA) prior to City Council consideration. The applicant indicated that the traffic study was necessary to provide additional information to City Council and the public and to demonstrate compliance with any traffic-related recommendations.

Following this request, the City obtained a cost estimate from a licensed traffic engineer. The City and applicant agreed on the scope and cost of the study, and the applicant submitted a signed reimbursement agreement. Upon authorization, the City will provide the traffic engineer with the direction to proceed with the Traffic Impact Analysis.

On December 11, 2025, the applicant requested that the project be phased, with the City considering approval at this time only for the townhomes portion of the project (Phase 1). The applicant indicated that any future development phases, including additional townhomes or apartments, would be brought forward under separate applications and public hearings.

STAFF RECOMMENDATION:
Staff’s responsibility is to evaluate each proposal based on adopted policies, technical standards, and the long-term welfare of the community. Staff’s recommendation is professional, impartial, and based solely on planning principles and the established process, not on developer interests or public pressure. While the City welcomes and values all feedback, staff must remain objective to ensure fairness to all parties and compliance with Arizona law.

Staff recommends approval of Ordinance No. 475 and Rezoning Case No. 2025-0274, subject to the following conditions: 

1. Development shall comply with the City of San Luis zoning regulations, building code requirements, public works standards, subdivision regulations, and any applicable regulation/standard.
2. The applicant/owner shall submit a traffic study as part of the building permit or subdivision review process, and the developer shall make all improvements or contributions required by the traffic study.
3. All townhome buildings adjacent to the northern boundary shall be limited to one story to protect the privacy of existing homeowners.
4. Developer shall comply with all local, state, and federal construction standards regarding grading, vibration, and dust control.