Fountain Hills Council revises downtown zoning to enhance pedestrian activity and residential density

The recent Planning and Zoning Meeting held on May 5, 2025, in Fountain Hills, Arizona, focused on significant amendments to the town's zoning ordinance, particularly the introduction of a new Downtown Overlay District. This initiative aims to revitalize the downtown area, which has been a topic of community interest since the town council approved a downtown strategy last September.

The proposed ordinance, identified as Ordinance 25-O-2, seeks to consolidate existing zoning regulations and enhance the vibrancy of the downtown area. Currently, the downtown is primarily zoned C-2, with limited areas designated as C-3. The new Downtown Overlay District will replace two existing overlay districts—entertainment and planned shopping plaza—with a single, streamlined framework that encourages active ground-floor uses along primary streets.

Key changes include a focus on promoting businesses such as restaurants, cafes, and retail shops within 50 feet of the right-of-way, ensuring that these active uses dominate the streetscape. The ordinance also proposes increasing residential density on upper floors from eight to approximately 30 units per acre, allowing for more housing options in the downtown area. This change is seen as a way to attract more residents and enhance the area's liveliness.

However, the meeting revealed concerns from some community members regarding the implications of these changes, particularly for properties not included in the new overlay. Questions were raised about the potential impact on property values and the ability of existing businesses to adapt to the new zoning regulations. Some commissioners expressed the need for a careful balance between fostering growth and supporting current business owners, emphasizing the importance of community input in the decision-making process.

Additionally, discussions touched on parking availability, with concerns that an influx of restaurants and entertainment venues could strain existing parking resources. While the ordinance allows for a 50% reduction in parking requirements for larger corner lots, some commissioners questioned whether this would be sufficient to accommodate the anticipated increase in visitors.

The meeting concluded with a recognition of the need for further dialogue with local business owners and stakeholders to ensure that the proposed changes align with the community's vision for the downtown area. As the town moves forward with these zoning amendments, the balance between development and the needs of existing businesses will be crucial in shaping the future of Fountain Hills. The next steps will involve continued discussions and potential adjustments to the ordinance based on community feedback and further analysis of parking and usage impacts.