CHRIS ANARADIAN, DEVELOPMENT SERVICES DIRECTOR BRETT BURNINGHAM, PLANNING ADMINISTRATOR; CHRISTINE SHEEHY, PRINCIPAL PLANNER

Requesting Department: Development Services TO: THROUGH: FROM: RE: PLANNING AND ZONING COMMISSION CHRIS ANARADIAN, DEVELOPMENT SERVICES DIRECTOR BRETT BURNINGHAM, PLANNING ADMINISTRATOR; CHRISTINE SHEEHY, PRINCIPAL PLANNER INTRODUCTION AND PUBLIC HEARING ON RZ16-047 MERIDIAN ESTATES PLANNED AREA DEVELOPMENT (PAD) rezone (Ordinance 622-16), a request by Brad Hinton, El Dorado Holdings, for a zone change from R1-43 to Planned Area Development (PAD) with Option 1: PAD/R1-4, R1-5, R1-7, R1-9 and NC or, Option 2: PAD/R1-4, R1-5, R1-7 and R1-9 on a 234-acre site generally located at the northeast corner of Signal Butte Road and Ocotillo Road. DATE: AUGUST 31, 2016 STAFF RECOMMENDATION Pending the selection of Option 1 that includes a 15-acres Neighborhood Commercial site, Staff recommends continuing RZ16-047 (Ordinance 622-16), Meridian Estates Planned Area Development to the September 14, 2016 Planning Commission meeting. Staff has concerns with Option 2 that eliminates the 22-acre Neighborhood Commercial Parcel, which is discussed in more detail in the Analysis section in this report. PROPOSED MOTION Move to continue RZ16-047 (Ordinance 622-16), Meridian Estates Planned Area Development to the September 14, 2016 Planning and Zoning Commission meeting. RELEVANT COUNCIL GOAL Secure Future Effective Government

SUMMARY This proposal consists of a request by Brad Hinton, El Dorado Holdings, to rezone 234 acres from R1-43 to Planned Area Development (PAD) with Option 1: PAD R1-4, R1-5, R1-7, R1-9 and NC or, Option 2: PAD R1-4, R1-5, R1-7 and R1-9 located at the northeast corner of Signal Butte Road and Ocotillo Road. Option 1 includes both residential and a Neighborhood Commercial parcel. This Option contains 7 Medium Density residential parcels, 1 Medium High Density Parcel and a 12.51-acre future Neighborhood Commercial corner. The total number of dwelling units is 698 or, 3.38 du/ac. Option 2 is an all residential proposal that eliminated the commercial corner at the northeast corner of Signal Butte and Ocotillo Roads. This Option, for reference, contains 7 Medium Density residential parcels and 1 Medium High Density Parcel in lieu of a commercial corner. The Applicant has also provided 3 alternative site plans for the 39-acre Medium High Density corner parcel that includes site plans for a Courtyard, Paseo and an Auto Court home product design. The total number of dwelling units is 767 or, 3.50 du/ac. This proposal is a companion case to the pending Major General Plan Amendment (GPA16-025) case that is requesting 234 acres of Employment Type A and Neighborhood Commercial uses be amended to Option 1: Medium Density Residential (0-3 du/ac), Medium-High Density Residential (0-5 du/ac) and Neighborhood Commercial (NC)) or, Option 2: Medium Density Residential (0-3 du/ac) and Medium- High Density Residential (0-5 du/ac). HISTORY May 21, 2008 The current General Plan was adopted. June 2016 Phoenix Mesa Gateway Airport Authority approved an Intent to Approve the Airport Land Use Compatibility Plan Update. The update reduced the location of the 65-DNL and 60-DNL. No development history is available for the subject property. The subject property has historically been used for agricultural uses and is zoned R1-43. RZ16-047 Meridian Estates Planned Area Development August 31, 2016 Planning Commission Staff Report Page 2 of 17

PROJECT INFORMATION Project Name Site Location Current Zoning R1-43 General Plan Designation Proposed General Plan Designation Case GPA16-025 Surrounding Zoning Designations: North South East West Meridian Estates (Spur Cross) Project Information Meridian Estates (Spur Cross) Planned Area Development (PAD) Northeast corner of Ocotillo Road and Signal Butte Road Employment Type A and Neighborhood Commercial Option 1: Medium Density Residential (0-3 du/ac), Medium-High Density Residential (0-5 du/ac) and Neighborhood Commercial or, Option 2: Medium Density Residential (0-3 du/ac) and Medium- High Density Residential (0-5 du/ac) R1-43 C-2 PAD, R1-43 and Rural-43 (Maricopa County) R1-43 PAD (C-1, R1-7, R1-9 and R1-15) Gross Acreage Total Lots/Units Proposed Density Open Space Acreage: Option 1 Required Provided Option 2 Required Provided 234 Acres Option 1=698 units or, Option 2=767 units Option 1= 3.38 du/ac Option 2= 3.50 du/ac 20% (41.2 acres) 24% (49.5 acres) Note: Commercial Parcel when site planned is required to provide 15% Open Space within the parcel. 20% (43.7 acres) 23% (50.3 acres) DISCUSSION This project is located at the northeast corner of Ocotillo Road and Signal Butte Road. This site is composed of two parcels identified by Maricopa County Assessor s office as: 304-64-006C and 006D. Adjacent uses to the subject site consists of agricultural uses RZ16-047 Meridian Estates Planned Area Development August 31, 2016 Planning Commission Staff Report Page 3 of 17

to the north that are zoned R1-43. The property to the east is zoned R1-43 and is in agricultural use. The property to the west, across Signal Butte Road, is developed as Charleston Estates and is zoned PAD (C-1, R1-7, R1-9 and R1-15). To the south of the subject site across Ocotillo Road, properties within the Town are zoned PAD C-2 and R1-43 and the remaining parcels are zoned Rural-43 in Maricopa County. The properties south of Ocotillo Road are a combination of vacant, residential and office uses. The proposed Meridian Ranch (Malone Place) General Plan Amendment (GPA16-024) adjoins the subject site on the north and east. The Applicant is concurrently requesting a Major General Plan Amendment (GPA16-025) for 234 acres from Employment Type A and Neighborhood Commercial to Option 1: Medium Density Residential (0-3 du/ac), Medium-High Density Residential (0-5 du/ac) and Neighborhood Commercial or, Option 2: Medium Density Residential (0-3 du/ac) and Medium-High Density Residential (0-5 du/ac) located at the northeast corner of Signal Butte Road and Ocotillo Road. The Spur Cross development is proposing a combination of six (6) different lot sizes for both Option 1 and Option 2, which are described below. For Option 2, the development has three different lot size options for the Medium High Density Residential Parcel to accommodate an Auto Court, Paseo and Courtyard housing product. Conceptual lot designs and product photographs are provided in the Narrative. Option 1 includes one parcel of Medium High Density Residential that is proposed for one of the three Medium High Density product type. The Applicant proposes that this mixture of lot sizes meets the intent of the PAD standards outlined in the Town s Zoning Ordinance. The table below summarizes the dimensions, minimum lot sizes, and the composition of each lot type provided in the subdivision. In total, the proposed 698 lots in Option 1 amounts to a net density of 3.38 du/ac and Option 2 with 767 lots has a net density of 3.50 du/acre, which is somewhat consistent with the request to amend the General Plan (GPA16-025) land use designation to Medium Density Residential (0-3 du/ac) and Medium-High Density Residential (0-5 du/ac). Option 1: Commercial and Residential with Court Yard Product Lot Size Minimum Lot Size Zoning District Number of Lots % of Development 50 x 115 5,750 square feet R1-5 164 22% 60 x 120 5,750 square feet R1-5 159 22% 70 x 139 9,730 square feet R1-7 87 12% 85 x 139 9,730 square feet R1-7 56 7% 100 x 154.5 15,000 square feet R1-9 68 9% 40 x 65 3,600 square feet R1-4 164 28% Total 698 units 100% RZ16-047 Meridian Estates Planned Area Development August 31, 2016 Planning Commission Staff Report Page 4 of 17

Option 2A: All Residential with Courtyard Product Lot Size Minimum Lot Size Zoning District Number of Lots % of Development 50 x 115 5,750 square feet R1-5 205 26% 60 x 120 5,750 square feet R1-5 154 20% 70 x 139 9,730 square feet R1-7 84 11% 85 x 139 9,730 square feet R1-7 54 7% 100 x 154.5 15,000 square feet R1-9 67 8% 40 x 65 3,600 square feet R1-4 203 28% Total 767 units 100% Option 2B: All Residential with Auto Court Product Lot Size Minimum Lot Size Zoning District Number of Lots % of Development 50 x 115 5,750 square feet R1-5 205 26% 60 x 120 5,750 square feet R1-5 154 20% 70 x 139 9,730 square feet R1-7 84 11% 85 x 139 9,730 square feet R1-7 54 7% 100 x 154.5 15,000 square feet R1-9 67 8% 32 x 65 2,800 square feet R1-4 203 28% Total 767 units 100% Option 2B: All Residential with Paseo Product Lot Size Minimum Lot Size Zoning District Number of Lots % of Development 50 x 115 5,750 square feet R1-5 205 26% 60 x 120 5,750 square feet R1-5 154 20% 70 x 139 9,730 square feet R1-7 84 11% 85 x 139 9,730 square feet R1-7 54 7% 100 x 154.5 15,000 square feet R1-9 67 8% 40 x 65 3,700 square feet R1-4 203 28% Total 767 units 100% GENERAL ANALYSIS General Plan Review: This proposal is a companion case to Major General Plan Amendment (GPA16-025) that is requesting 234 acres of Employment Type A and Neighborhood Commercial uses be amended to Option 1: Medium Density Residential (0-3 du/ac), Medium-High Density Residential (0-5 du/ac) and Neighborhood Commercial (NC) or, Option 2: Medium Density Residential (0-3 du/ac) and Medium- High Density Residential (0-5 du/ac). Staff is supportive of Option 1 which retains RZ16-047 Meridian Estates Planned Area Development August 31, 2016 Planning Commission Staff Report Page 5 of 17

12.31-acres of commercial. A detailed analysis of the proposed General Plan Amendment to develop the property consistent with the proposed PAD is provided in the Staff report for General Plan Amendment Case GPA16-025. The proposed Meridian Ranch (Spur Cross) PAD contains several notable features that respond to the overall policy direction and vision of the 2008 Queen Creek General Plan: 1.) Developing superior residential neighborhoods by: Providing a diversity of housing opportunities within the Town through incorporation of various lot sizes and corresponding home sizes (Land Use Element Goals and Policies: Goal 3, Policy 3b) 2.) Providing compatible land use relationships with the surrounding area by: Incorporating appropriate transition treatments such as larger lots and open space buffer areas (Land Use Element Goals and Policies: Goal 3, Policy 3d). 3.) Supplementing the Town s comprehensive park system by: Developing neighborhood parks, trails, and other recreational amenities for maintenance by a Homeowner s Associations (Parks, Trails, and Open Space Element: Goal 1, Policy 1h). The Project Narrative includes additional references as to how the proposed project complies with overall policy direction and vision of the 2008 Queen Creek General Plan. Zoning Review: The applicant is requesting to rezone approximately 234-acres by changing the existing zoning designation from R1-43 (Rural Estate District) to Option 1: PAD with the base zoning designation of R1-4, R1-5, R1-7, R1-9 and Neighborhood Commercial (NC) in or, Option 2: PAD R1-4, R1-5, R1-7 and R1-9 to enable development of the Meridian Estates (Spur Cross) Planned Area Development. The overall density for Option 1 is 3.38 dwelling units per acre and Option 2 is 3.50 dwelling units per acre. The proposed density is somewhat compatible with the surrounding residential and other non-commercial uses (the Central Christian Church across the street to the south) for this area. Staff and the Applicant, however, have separate recommendations on the existing 22-acre Neighborhood Commercial parcel at the northeast corner of Signal Butte and Ocotillo Roads. Staff Rationale for Option 1 Commercial Corner: Staff is not supportive of the removal of the 22 acres of Neighborhood Commercial, as shown in the current General Plan, at the northeast corner of Ocotillo and Signal Butte Roads (Option 2). Signal Butte Road is a road of regional significance that is planned to connect to State Route 24. The funding for the extension of SR 24 could happen in 4 to 8 years as a result of ADOT moving this project up in priority. Ocotillo Road is also a major east/west arterial road that may support future commercial land uses at this location. This proposed General Plan Amendment, coupled with adjacent General Plan RZ16-047 Meridian Estates Planned Area Development August 31, 2016 Planning Commission Staff Report Page 6 of 17

Amendments would significantly increase the number of residential homes in the area that could support Neighborhood Commercial and increase tax revenue for the Town. Additionally, the two C-2 zoned properties on the south side of Ocotillo Road, east of Signal Butte Road and 226 th Street were purchased by the Central Christian Church. Town Council recently approved the Church s site plan. Therefore, the amount of available commercial property to serve future residents has been significantly reduced. The Applicant has not provided documentation from market industry experts to support the removal of Commercial. In addition, the Applicant has stated that holding the property for up to 4 years until homes are built in the area to support a commercial user, such as a grocer, would be burdensome. Staff, however, is proposing that Neighborhood Commercial uses at this corner would be beneficial to provide future services, in the long term, for residents and tax revenue for the Town. This option with commercial will generate annual net revenue of $714K ($114K residential & $600K commercial) vs. annual net revenues of $113K for Option 2 without commercial. See the Fiscal Impact Analysis section in this report for more information. If Option 1 with Commercial is selected as the preferred land use, the Applicant is proposing to reduce the current General Plan Neighborhood Commercial acreage from 22-acres to 15-acres. Staff is in support of reducing the size of the commercial corner from 22-acres to 15-acres. Applicant Rationale for Option 2 No Commercial: According to the Applicant, there is an overabundance of, and more desirable locations for, existing commercial classified land uses (Neighborhood Commercial, Community Commercial and Commercial) within close proximity to the property that significantly impacts absorption of Neighborhood Commercial at this location. The other three corners of this section of land all are proposed to develop as commercial and are in a better position to attract quality commercial users than the subject property s corner. If the Applicant is required to retain some commercial land use here, they believe it will only attract secondary and tertiary users which may not be compatible with the high quality neighborhood that they are proposing to develop. Significant commercial areas along Ellsworth Loop Road are vibrant and still contain additional retail and related vacant properties that can be utilized within the trade area. On this basis, the market industry experts do not believe there will be meaningful demand for potential commercial uses on this property. Additionally, since Signal Butte dead-ends ½-mile to the south, this property lacks sufficient vehicular traffic volumes that commercial users demand to sustain economic viability and vitality. According to market industry experts, Ironwood Road and Ellsworth Loop Road are the desired north-south roadways that commercial users will be targeting as the area matures. Staff recommends that Option 1: PAD with the base zoning designation of R1-4, R1-5, R1-7, R1-9 and Neighborhood Commercial (NC) located at the northeast corner of Signal Butte Road and Ocotillo Road be selected as the preferred zoning district. RZ16-047 Meridian Estates Planned Area Development August 31, 2016 Planning Commission Staff Report Page 7 of 17

Project Density Calculation: The following is the calculation to determine net density for Planned Area Developments, per the Town s Zoning Ordinance is as follows: D = DU/(A (C + I + S + A) Where: DU = Total Number of Dwelling Units Permitted D = Maximum Net Density C = Total Commercial Land Area I = Total Industrial Land Area S = School Sites Reserved for Purchase by the School District a = Arterial and Collector Rights-of-Way The overall density of the proposed Meridian Estates (Spur Cross) project requested by the Applicant is 3.38 du/acre for Option 1: PAD/R1-4, R1-5, R1-7, R1-9 and NC and 3.50 du/ac for Option 2: PADR1-4, R1-5, R1-7 and R1-9 which is based on the anticipated total lot count of 698 total lots for Option 1 and 767 for Option 2. These numbers differ from some of the exhibits and tables in the Spur Cross PAD Narrative and in the respective Development Plans Site Data Tables. After Staff s review of the proposed development plan and counting the total number of lots proposed, it was determined that the number of lots for Option 1 is 698 and that the number of lots for all three alternative plans for Option 2 totaled 767 units. Below details the net density calculations, for both Option 1 and Option 2. Option 1: Gross area: 234.19 acres Commercial: 12.51 acres Arterial and collector roadways: 15.28 acres School site (donated): 6.08 acres (not included in net density calculations for PADs) Total lots proposed in Development Plan: 698 698 lots ( ) = 3.38 dwelling units/acre 234.19 27.79 acres RZ16-047 Meridian Estates Planned Area Development August 31, 2016 Planning Commission Staff Report Page 8 of 17

Option 2: Gross area: 234.19 acres Commercial: 12.51 acres Arterial and collector roadways: 15.28 acres School site (donated): 6.08 acres (not included in net density calculations for PADs) Total lots proposed in Development Plan: 767 767 lots ( ) = 3.50 dwelling units/acre 234.19 15.28 acres Planned Area Development (PAD) Overlay Compliance: The purpose of the Planned Area Development Overlay District (PAD) is to provide for the orderly development of land consistent with the Town of Queen Creek General Plan and Zoning Ordinance while permitting flexibility in the design, construction and processing of residential, commercial and/or industrial developments of a quality which could not be achieved by traditional lot by lot development under conventional zoning concepts. While the conventional zoning districts and the requirements of those districts set forth in the Town of Queen Creek Zoning Ordinance are reasonable, there may be circumstances in which it is in the Town s best interests to allow unique and/or creative designs and techniques that: 1. Promote the most appropriate use of a parcel; 2. Allow diversification of use; 3. Allow economic development; 4. Facilitate the adequate and economical provision of streets, parks, open space, schools, storm drainage and sewer and water utilities; 5. Preserve and utilize open space; 6. Offer recreational opportunities close to residential uses; 7. Enhance the neighborhood s appearance; 8. Counteract adverse effects of urbanization; and 9. Provide for the unified control of land development. In order to grant the PAD Overlay Zoning District, the following findings of fact must be made: a. That the requested modifications to the requirements of the Zoning Ordinance and the underlying Zoning Districts are in the best interests of the Town and are beneficial to the Town in that a higher quality or more appropriate design, or economic benefits (such as employment) can be achieved by not requiring strict adherence to the terms and regulations of the zoning ordinance; RZ16-047 Meridian Estates Planned Area Development August 31, 2016 Planning Commission Staff Report Page 9 of 17

b. That strict adherence to the requirements of the Zoning Ordinance is not required in order to ensure the health, safety and welfare of the future occupants of the proposed development; c. That strict adherence to the requirements of the Zoning Ordinance is not required in order to ensure that property values of adjacent properties will not be reduced; d. That the proposed development is consistent with the goals, objectives and policies of the General Plan. Accordingly, the Applicant is requesting the following modifications from the Town of Queen Creek Zoning Ordinance: The Applicant is proposing to increase the lot sizes for the R1-5, R1-7 and R1-9 except to accommodate cul-de-sacs, knuckles and other street designs that encroach into the typical lot depth in both Option 1 and Option 2. The Applicant is proposing several modifications to the base R1-4 zoning district for the Medium High Density Residential Parcel to accommodate three (3) alternative types of residential product designated as Courtyard, Paseo and Auto Court. The proposed R1-4 zoning modifications that the Applicant is proposing to modify are described in more detail in the table below. These three alternative site plans are proposed for both Option 1 and 2. All three product types are included as attachments. Pictures of the various product types and conceptual lot layouts are attached. PROPOSED PAD MODIFICATIONS TO R1-4 ZONING DISTRICT: R1-4 Standards Queen Creek Courtyard Paseo Auto Court Standard Minimum Lot Area 4,000 s.f. 3,600 s.f. 3,700 s.f. 2,800 s.f. Minimum Lot Width 40 feet No Code Change No Code Change 32 feet Setback to Front Facing Garage 20 feet No Code Change No Code Change 5 feet Setback to front of garage for side entry/front porch/ 10 feet No Code Change No Code Change 5 feet livable area Rear Setback 15 feet No Code Change No Code Change 10 feet Maximum Lot Coverage for 1-story homes 50% 60% 60% 60% The Applicant has not provided specific justification for the proposed modifications to the development standards only that the propose changes provides flexibility. Staff has concerns regarding the proposed changes to the R1-4 Zoning District standards. Very little time was provided to review the three Medium High Density product plans. Only RZ16-047 Meridian Estates Planned Area Development August 31, 2016 Planning Commission Staff Report Page 10 of 17

conceptual elevations and lot layouts have been provided. See attached. The Applicant has not demonstrated how parking will be properly accommodated with the smaller Medium High Density lots that do not have driveways. This only one example of concerns that staff has in verifying that the proposed Medium High Density product can meet the Design Standards requirements, which are part of the Zoning Ordinance. In addition, a homebuilder for the proposed varied housing product has not been identified. Adequate Public Facilities: In accordance with Article 5.1 (Adequate Public Facilities) provision of the zoning ordinance, the applicant has provided information regarding the project s potential impact on public facilities. Staff review of those reports indicates that adequate public facilities will be provided by the project. Appropriate internal street cross sections and improvements to the existing arterial and collector streets are provided. The Town of Queen Creek will be the potable water provider and waste water service provider for the property. The Adequate Public Facilities Ordinance also requires that school district requirements for capacity must be met for each development. The Queen Creek Unified School District has reviewed this proposal and has required that the developer to donate one half of an elementary school site, which is 6.08-acres within this project. See attached letter from the Queen Creek Unified School District. The other half of the school site is provided by Malone Place PAD to the north. As mentioned in this report and as shown on all exhibits, the applicant has complied with this request. Open Space: The total open space required for the project for Option 1 is: 20% (41.2 acres). The project is proposing 24% (49.5 acres). When the site plan for the Commercial Parcel is submitted, 15% Open Space within the parcel is required. Option 2 is required to have 20% (43.7 acres) of open space. The project is providing 23% (50.3 acres). The open space proposed in both options includes both active and passive amenities. Building Elevation Review: Only conceptual lot layouts and sample photographs of examples of the three proposed medium high density housing product (Courtyard, Paseo and Auto Court) were provided. These are attached to this report. No building elevations were submitted with this application. Engineering Review: The project has been reviewed by both the Traffic Engineer and the Engineering Division. Conditions of Approval have been added to address the Engineering stipulations for this proposed development. OUTSTANDING ITEMS The following list details the items that are still outstanding. These items must be provided by the Applicant prior to the September 14, 2016 Planning and Zoning Commission Meeting: RZ16-047 Meridian Estates Planned Area Development August 31, 2016 Planning Commission Staff Report Page 11 of 17

1. Provide additional rationale for the proposed Medium High density housing product. 2. Provide additional justification for the several proposed modifications to the R1-4 zoning district including parking requirements. 3. Demonstrate that the Medium High Density Product will comply with the Town s Design Standards. FISCAL IMPACT ANALYSIS Balance across land use and revenue categories is a critical component of effective municipal planning and fiscal management. While some land use categories generate net gains and other land use categories generate net expenses, it is important to maintain a holistic perspective of various land uses and revenue sources. No class exists in isolation; each functions as part of a planned community. For example, residential development is usually an expense driver for local governments, yet it provides the demand for revenue generators such as retailers and restaurants. The Town of Queen Creek Finance Department has conducted an analysis on the estimated impacts of both Option 1 Commercial Corner and Option 2 No Commercial Corner for the Meridian Estates (Spur Cross) project. This analysis centers on the relationship between estimated home sale price and the corresponding household income of the purchaser. The average estimated home sale price for this study is $369K for the medium density lots and $240K for the medium-high density properties. To conduct a more conservative analysis, the home value has been reduced by 5% to $351K (medium density) and $229K (medium/high density). This sale price correlates to an average household income of $95K for medium density and $62K for medium-high density. Option 1 estimates 698 total residential units (548 medium density, 150 medium/high density) and 120K square feet (15 acres) of commercial while Option 2 estimates 767 residential units (567 medium density, 200 medium/high density). The analysis combines the impact across both density types and land use types to display the net benefit/expense in the figures below. Option 1 Commercial and Residential: In the mixed land use plan, the Meridian Estates development at full buildout is estimated to generate annual net revenue of $714K ($114K residential & $600K commercial). Per residential unit (767 units), the average net benefit is approximately $163 per home. Per dollar of expense incurred, the project is estimated to generate $1.04 in revenue. Primary drivers for the revenues: net increase in primary property tax as result of development; increased sales tax collection, and increased state shared revenues allocated by population. Specific details such as the types of retailers, size/scope and building specs of the commercial buildings, and other considerations are not known at this time. The various unknown variables previously mentioned necessitates assumptions on the part of the RZ16-047 Meridian Estates Planned Area Development August 31, 2016 Planning Commission Staff Report Page 12 of 17

model to construct an impact estimate. This estimate is considered to be conservative, but should be revisited once more project specifics are solidified. For one-time revenues, the residential component of Option 1 would generate approximately $21M and the commercial development would generate $1.7M. Option 2 All Residential no Commercial: The Meridian Estates development at full buildout is estimated to generate annual net revenues of $113K. Per residential unit (767 units), the average net benefit is approximately $147 per home. Per dollar of expense incurred, the project is estimated to generate $1.04 in revenue. Primary drivers for the revenues: net increase in primary property tax as result of development; increased sales tax collection, and increased state shared revenues allocated by population. The net benefit for residential decreases slightly because the ratio of medium to medium/high density (567:200) is lower in Option 2. Medium/high density single family homes are a small net expense in the model due because of decreased revenue generation per household. Additionally, the development is estimated to generate $23M in one-time revenues such as plan/permit review fees, development/impact fees, and construction sales tax. PUBLIC COMMENTS No comments were received on the rezoning case. The applicant conducted two Neighborhood Meetings on Tuesday, June 21, 2016 and Tuesday, July 26, 2016. On June 21, 2016 approximately ten residents attended the neighborhood meeting. Also, On July 26, 2016, approximately fourteen residents attended the neighborhood meeting. Questions from residents consisted of the following: 1. Questions about the General Plan process; 2. Proposed density in comparison to surrounding development; 3. Changes in the Mesa-Gateway Airport contour lines; 4. The proposed school; 5. The proposed SRP power lines along Signal Butte Road; 6. Commercial Development available in the area; 7. Road improvements along the perimeter of the development; 8. Proposed housing product type/location and how portions of the project could be gated; and 9. Developer s other projects and amenities. The applicant addressed each of the above questions throughout their presentation. The Neighborhood Meeting minutes are included as an attachment to this report. RZ16-047 Meridian Estates Planned Area Development August 31, 2016 Planning Commission Staff Report Page 13 of 17

CONDITIONS OF APPROVAL Staff recommends that Option 1: PAD with the base zoning designation of R1-4, R1-5, R1-7, R1-9 and Neighborhood Commercial (NC) located at the northeast corner of Signal Butte Road and Ocotillo Road be selected as the preferred PAD zoning district. Staff recommends approval of RZ16-047 Meridian Estates Planned Area Development, subject to the following conditions: 1. This project shall be developed in accordance with the project narrative and plans attached to this case and all the provisions of the Zoning Ordinance applicable to this case. 2. This project shall be developed in accordance with the following modifications to the underlying zoning district requirements: R1-4 Development Standard DEVELOPMENT STANDARDS Zoning Ordinance Requirement Approved Standards for Spur Cross Minimum Lot Area 4,000 s.f. 2,800 to 3,700 s.f. Minimum Lot Width 40 feet 32 feet Setback to Front Facing Garage 20 feet 5 feet Setback to front of garage for side entry/front porch/ livable area 10 feet 5 feet Rear Setback 15 feet 10 feet Maximum Lot Coverage for 1-story homes 50% 60% 3. The developer shall create an HOA to maintain all landscaping, open space, common areas, recreation amenities, and all rights-of-way landscaping on all local, arterial and collector roadways. 4. A 6.08-acre elementary school site shall be provided at the southeast corner of Appleby and Signal Butte Roads in Parcel 6. The school site shall be dedicated to the Queen Creek Unified School District in conjunction with the first final plat. If the Queen Creek Unified School District chooses to no longer build a school on the donated site, the site will revert to the underlying R1-5 zoning district and be permitted to be developed as residential lots. 5. All future subdivisions shall contain detached sidewalks with street trees on both sides of all streets throughout the subdivision. RZ16-047 Meridian Estates Planned Area Development August 31, 2016 Planning Commission Staff Report Page 14 of 17

6. The design of all pedestrian and multiuse trails and trail crossings shall be incorporated into the design of the Preliminary and Final Plats to ensure adequate safety. 7. SRP Power The applicant shall contact SRP for specific requirements that they may have in addition to the Town requirements. The Town requires all poles less than 69kV to be relocated underground. SRP may require easements outside of Public Right-of-Way. 8. The SRP 230 kv Transmission Line has a proposed Signal Butte Road alignment within the vicinity of the project. The applicant shall coordinate all requirements and necessary easements for the SRP 230 kv Transmission Project. 9. Full ½ street improvements shall be required to be designed and constructed for Ocotillo Road and Signal Butte Road for all portions of the Right-of-Way adjacent to the property frontage. Road improvements shall be to the centerline (section line) of the improved road and shall include removal and replacement of all asphalt to the centerline. Improvements shall also include all appropriate roadway tapers as required by the Town s Traffic Department. 10. For offsite public improvements the Town requires cash, irrevocable letter of credit (IRLOC), or a bond to cover the costs for construction assurance. The IRLOC and bond are required to be approved by the Town Attorney. Construction assurance shall be deposited with the Town prior to final plat recordation. 11. For onsite public improvements the Town requires cash, irrevocable letter of credit (IRLOC), bond, or a signed C of O hold agreement to cover the costs for construction assurance. The IRLOC and bond are required to be approved by the Town Attorney. Construction assurance shall be deposited with the Town prior to final plat recordation. 12. 55 feet of half street of Right-of-Way on Signal Butte Road and Ocotillo Road for the entire frontage of the property shall be required to be dedicated to the Town of Queen Creek on the Final Plat. 13. The developer shall provide notice by way of the subdivision plat and CC&Rs, that this project is located near the Phoenix-Mesa Gateway Airport and due to its proximity is likely to experience noises normally and usually associated with the overflight of aircraft. 14. Final plats shall note the potential for objectionable aircraft noise. Specifically, the plat shall note the following: This property, due to its proximity to Phoenix-Mesa Gateway Airport, is likely to experience aircraft overflights, which could generate noise levels which may be of concern to some individuals. The mix of aircraft consists of cargo, commercial, charter, corporate, general aviation and military aircraft. RZ16-047 Meridian Estates Planned Area Development August 31, 2016 Planning Commission Staff Report Page 15 of 17

15. Sales offices for new single family residential projects shall provide notice to prospective buyers that the project is located within an Overflight Area. Such notice shall consist of a sign at least 2-foot x 3-foot installed at the entrance to the sales office or leasing office at the residential project. The sign shall be installed prior to commencement of sales and shall not be removed until the sales office is permanently closed. The sign shall state the following in letters of at least one inch (1 ) in height: This subdivision, due to its proximity to Phoenix-Mesa Gateway Airport, is likely to experience aircraft overflights, which could generate noise levels which may be of concern to some individuals. The mix of aircraft consists of cargo, commercial, charter, corporate, general aviation and military aircraft. For additional information contact the Arizona Department of Real Estate at: 602-468-1414 or Phoenix-Mesa Gateway Airport Public Relations Office at: 480-988-7600. 16. Public reports filed with the Arizona Department of Real Estate shall disclose the location of the Airport and potential aircraft overflights. The following statement shall be included in the public report: This property, due to its proximity to Phoenix-Mesa Gateway Airport, is likely to experience aircraft overflights, which could generate noise levels which may be of concern to some individuals. 17. The construction, alteration, moving, and substantial repair of any human occupied building or structure in the new project shall achieve an exterior to interior Noise Level Reduction (NLR) of 20 decibels (db) or an exterior to interior NLR that results in an interior noise level of 45 DNL or less. The developer shall submit a signed and sealed letter from a registered architect or engineer certifying that construction materials, methods and design employed to achieve the required noise reduction. A copy of the certification shall be submitted with the application for a building permit. 18. The owners of the new project, including mortgagees, other lien holders and easement holders, shall execute an avigation easement prior to or concurrently with the recordation of any final plat or approval of a final site plan for the new project. The easement shall be in a form approved by the Director of Planning. 19. Applicant shall provide to staff a clearance letter from Arizona State Historic Preservation Office (SHPO) before approval of the final plat. 20. The Rezoning approved in case number RZ16-047 is effective upon signature by the property owner(s) of the Prop 207 Waiver and filing of the waiver with the Town of Queen Creek Planning Division. Failure to sign and return the waiver to the Planning Division within 5 working days of the date of approval shall render this conditional approval null and void. 1. Aerial Photo Exhibit 2. General Plan Option 1 3. General Plan Option 2 ATTACHMENTS RZ16-047 Meridian Estates Planned Area Development August 31, 2016 Planning Commission Staff Report Page 16 of 17

4. Zoning Map Exhibit Option 1 5. Zoning Map Exhibit Option 2 6. Conceptual Development Plan Option 1 7. Conceptual Development Plan Option 2A 8. Conceptual Development Plan Option 2B 9. Conceptual Development Plan Option 2C 10. Conceptual Courtyard Plans 11. Conceptual Auto Court Plans 12. Conceptual Paseo Plans 13. Neighborhood Meeting Minutes June 21 and July 26, 2016 14. Letter from Queen Creek Unified School District RZ16-047 Meridian Estates Planned Area Development August 31, 2016 Planning Commission Staff Report Page 17 of 17

Project Name: Meridian Estates (Spur Cross) Planned Area Development Exhibit Case Number: RZ16-047 Planning Commission Hearing Date: August 31, 2016 EXHIBIT 1

Project Name: Meridian Estates (Spur Cross) General Plan Amendment Exhibit Case Number: RZ16-047 Planning Commision Meeting Date: August 31, 2016 General Plan--Option 1 with Commercial EXHIBIT 2

Project Name: Meridian Estates (Spur Cross) General Plan Amendment Exhibit Case Number: RZ16-047 Planning Commision Meeting Date: August 31, 2016 General Plan--Option 2 No Commercial EXHIBIT 4

Project Name: Meridian Estates (Spur Cross) Planned Area Development Exhibit Case Number: RZ16-047 Planning Commission Hearing Date: August 31, 2016 Zoning Map Option 1: Commercial and Residential EXHIBIT 2

Project Name: Meridian Estates (Spur Cross) Planned Area Development Exhibit Case Number: RZ16-047 Planning Commission Hearing Date: August 31, 2016 Zoning Map Option 2: Residential EXHIBIT 3

Project Name: Meridian Estates (Spur Cross) Planned Area Development Exhibit Case Number: RZ16-047 Planning Commission Hearing Date: August 31, 2016 Conceptual Development Plan Option 1: Commercial and Residential EXHIBIT 4

Project Name: Meridian Estates (Spur Cross) Planned Area Development Exhibit Case Number: RZ16-047 Planning Commission Hearing Date: August 31, 2016 Conceptual Courtyard Product EXHIBIT 8

Project Name: Meridian Estates (Spur Cross) Planned Area Development Exhibit Case Number: RZ16-047 Planning Commission Hearing Date: August 31, 2016 Conceptual Auto Court Product EXHIBIT 9

Project Name: Meridian Estates (Spur Cross) Planned Area Development Exhibit Case Number: RZ16-047 Planning Commission Hearing Date: August 31, 2016 Conceptual Paseo Product EXHIBIT 10

Dr. Perry Berry, Superintendent 20217 E. Chandler Heights Road Queen Creek, AZ 85142 480.987.5935 Queen Creek Unified School District August 15, 2016 Mr. Brett Burningham, Planning Administrator Development Services Department Town of Queen Creek 22350 S. Ellsworth Road Queen Creek, AZ 85142 Re: Meridian Ranch - Spur Cross PAD Development Dear Mr. Burningham, We have met with El Dorado Holdings about this development. Based on the project that was presented to us, the Queen Creek Unified School District would support the project going forward. We have already discussed the donation of a school site within the project. We look forward to working both with Mr. Brad Hinton as well as the Town of Queen Creek. If you have any questions, please contact me at (480) 987-5935. Sincerely, Dr. Perry Berry Superintendent Queen Creek Unified School District Learning is Our #1 Priority