The Lake Havasu City Planning and Zoning Commission on Oct. 15 voted 6-0 to recommend that the City Council consider a planned development rezone and amended general development plan for a 102-unit multifamily project at 5601 Highway 95 in the Shops at Lake Havasu.

The commission's recommendation covers a request to permit six modular three‑story residential buildings with a mix of one- and two‑bedroom units, a maximum building height of 32 feet above the approved building pad, and an exception to the municipal requirement for covered parking for residential units.

City planning staff presented the proposal and said the subject property measures 4.54 acres on the west side of the mall, just south of Walmart, and is currently developed with a theater, restaurant and parking. Planning staff reported the site sits in a general commercial plan-development (C-2 PD) area and that the city's general plan designates the location as commercial mixed use. The applicant proposes 102 units in six buildings with exterior access; the structures will be delivered using modular construction, staff said.

Staff also provided parking calculations for the mall and said the property currently has 713 parking spaces more than the code requires. Staff said the project would remove 322 existing spaces and provide 176 new spaces; after construction the mall would have 567 parking spaces more than required by code. Planning staff recommended approval subject to conditions including that development substantially match the amended general development plan; that multifamily uses be limited to the northern half of the lot as shown on the plan; that a lot alteration and parcel plat be completed prior to future city approvals; that existing shared parking and cross-access easements remain; and that building permits and design-review approvals be obtained prior to development.

James Gray, with the Partnership for Economic Development, described the project as filling a shortage of apartments in the city and emphasized the “live, work, play” proximity to retail and entertainment at the mall. "Apartments make up only about 2.7% of the full housing makeup," Gray said, describing the development as part of an effort to increase housing variety.

Several speakers addressed the covered-parking exception during the public hearing. Emiliano Torres, a resident, asked why the project should receive an exception when other housing must meet the covered-parking standard: "Why what's the rationale for the exception to the covered parking? Everyone else has to meet the spec."

Planning staffer Kearns responded that the mall operates under shared-parking provisions in its CC&Rs and that covered parking on the mall parcels would likely be used by retail customers and employees rather than by residents. "The exception for the covered parking is that the mall is shared parking," Kearns said, adding that other areas of the mall have no covered parking.

Developer Chad Nelson said locating apartments at the mall was the only viable option he had found after trying multiple sites since 2018, and he stressed the need to produce workforce housing at lower cost. "There’s no other place that it will work," Nelson said. Don Cantrell, another developer speaking in favor, said the project aims to lower average rent through construction efficiencies: "We're developing these kind of projects all over the country with a stated objective of lowering the average rent." Cantrell said the developer is not taking subsidies and expects to price units below local averages by keeping construction costs down.

Cheptune Minh, Lake Havasu City's development services director, said the request should not set a broad precedent because the proposed residential use would be in a commercial (C-2) district with shared parking conditions that differ from a typical residential district. "I don't I don't think so because as the applicant stated, this community itself already doesn't have covered parking. It's not an element of that community," Minh said, explaining staff's view that the mall's commercial character and CC&Rs affect how covered parking would function.

After discussion, Commissioner Gabrielle Medley moved to recommend approval of land-use request 25-4958 to the City Council for a planned development rezone and amended general development plan, including the requested covered-parking exception; Commissioner J.P. Thornton seconded the motion. The motion passed 6 to 0.

The commission's recommendation sends the proposal to the City Council for final action; staff noted several pre-approval requirements the applicant must satisfy, including a lot alteration/plat and building permits. The council will receive the commission's recommendation and the applicant's amended plan at a future meeting; no City Council action occurred during the Oct. 15 planning commission session.

Votes at a glance: Recommendation to City Council on land-use request 25-4958 (5601 Highway 95, Building I/Track 2396 Lot A-3) to allow 102 multifamily units, max 32 feet above pad, and an exception to residential covered-parking standard — Motion by Commissioner Gabrielle Medley; seconded by Commissioner J.P. Thornton; commission vote: 6 yes, 0 no.