Gilbert approves Heritage North mixed-use development with 288 units, 80,000-square-foot hotel
GILBERT, ARIZONA — January 12, 2022

Gilbert approves Heritage North mixed-use development with 288 units, 80,000-square-foot hotel

Gilbert City Council approved the major multi-year Heritage North mixed-use development project amid public criticism of past vendor fraud, selected Amy Yentes as new Vice Mayor, and approved water system development fee increases.

Gilbert Council Approves Heritage North Mixed-Use Anchor After Two-Year Collaborative Design Process; Vendor Fraud Allegation Left Unresolved

Gilbert City Council voted unanimously on January 12, 2022, to approve the Heritage North planned area development rezoning (Z20-02) at the southwest corner of Gilbert and Juniper Roads, clearing the path for a multi-year, complex mixed-use project that will reshape the heritage district's northern edge. The approval came after intense staff and applicant collaboration during the COVID-19 pandemic and reflected the council's hands-on involvement in design refinement. However, the meeting's triumph was undercut by a blistering three-minute public comment from resident Jim Torgeson, who accused the council of failing to hold a vendor accountable for fraudulent invoices and $140,000 in unaccounted materials tied to a non-competitive bid approved in prior years—an allegation the council did not address.

Key Speeches

"We're really proud and excited to be here. One of the things I'm proud of is the image that you see, the product that we have before you… I don't want to repeat all the things that [staff] would say. One of the things that I really want to talk about is not just the buildings that people are going to use but all the space that Gilbert gets at the advantage of because of all this hard work. It really isn't the buildings, it's not just the office building, not just the hotel, but you look at the commons, you look at the streets, you look at the streetscape." — Charles Humano, Heritage North Applicant

"The multifamily parks in the residential garage; there's no reduction proposed for the residential parking. Where they have proposed a reduction in parking is for the non-residential uses, and that was reduced based on shared trips, which was mirrored after the traffic study." — Ashley McDonald, Staff Presentation on Heritage North Zoning

"I appreciate you thanking the staff and the applicant. It's come a long way from those first drawings, and I know it has been a lot of hard work in a difficult time. The paseo was very, very important to us. At first it didn't quite happen, and when I saw the first drawing—because it was just a black and white drawing—I just saw a tunnel and I thought, what the heck is that? So thank you for the beautiful color drawing so that I can visualize it." — Councilmember Kathy Tilke

"I met with all of you right after becoming mayor, I think it was, and I know the effort that has been put into this project. I'm really glad that we were able to sit down at the table and have that conversation. Because of all of the discussions that we've all had and all of the amazing staff, you have come out with just an amazing product." — Mayor Bridget Peterson, addressing Charles Humano

Timeline

Heritage North Rezoning (Z20-02):

Vice Mayor Selection:

Water System Development Fees:

Public Comment (Communications from Citizens):

Opposition

Vendor Fraud Allegation (Jim Torgeson):

Jim Torgeson, a longtime resident and observer, made an unscripted and forceful statement on a matter he said he had previously been prevented from discussing. He alleged:

  1. Non-competitive bidding: Two council members (identified only as former members Taylor and Cook) voted to approve a non-competitive bid worth "about a quarter million dollars" without understanding what they were voting for because they "were in a rush."

  2. Vendor fraud: The unnamed vendor produced fraudulent invoices and conspired to cover up false purchase agreements.

  3. Minimal accountability: The vendor was debarred (a letter of debarment exists but is "not recorded anywhere") but refunded only $20,000 of a $140,000 shortfall in materials.

  4. Council passivity: No current council member acknowledged the mistake or took responsibility. Jim Torgeson stated: "Nobody up here did anything about it. Nobody up there held their feet to the fire… when people just move forward like your money doesn't matter."

  5. Profitability of fraud: Jim Torgeson calculated that from the vendor's perspective, the arrangement was highly lucrative: "I would take that deal seven times a week and three times on Sunday because it was just a stupidly profitable thing for them to do."

  6. Systemic failure: Jim Torgeson urged the council to learn humility and establish safeguards to prevent future occurrences, stating: "All of you need to learn a lesson: humility, and figure out how you're going to make sure stuff like that doesn't happen again."

Most compelling argument: Jim Torgeson closing statement that the council had failed to hold itself accountable—"when people just move forward like your money doesn't matter"—starkly contrasted the celebratory tone of the Heritage North approval and framed council decision-making as cavalier toward public funds.

Council response: None. No council member replied to the allegations, asked clarifying questions, or directed staff to investigate. The meeting proceeded immediately to the next agenda item.

Support

Heritage North Development:

No organized public opposition to the Heritage North project was voiced at the meeting. Planning Commission and Redevelopment Commission recommendations preceded the council vote (Planning Commission 6-1 in favor; Redevelopment Commission unanimous approval in December).

Council statements emphasized collaboration and design excellence:

Project Details

Deviations Requested and Approved (9 total)

  1. Setback reduction (Building 1): Requested reduction from required 20 feet to 0 feet adjacent to residential; actual closest point to property line: 3 feet; 72 feet to actual residential units (Arbor Walk development across Ash Street)
  2. Transparency reduction (Buildings 1, 2, 8): Requested reduction from required 75 percent ground-floor transparency to 50 percent for hotel, residential, and parking garage
  3. Building height increase (Building 1 – Multifamily): Height 78 feet 10 inches; limited to rooftop amenity and elevator building; architectural features at ridges
  4. Building height increase (Building 2 – Hotel): Height increase from 55 feet to 71 feet 8 inches; five stories (from four-story requirement)
  5. Building height reduction (Building 3 – Mixed-use): Two stories at 30 feet (parapet 37 feet) versus required 35-foot minimum
  6. Building height reduction (Buildings 4, 5, 6 – Retail): Single-story buildings at heights ranging from 20 to 26 feet versus 35-foot minimum requirement
  7. Building height increase (Building 7 – Office): Staggered heights 30 feet (along Gilbert Road), 58 feet (north edge), 79 feet (center); 145,000 sq ft office + 9,200 sq ft retail
  8. Parking garage height increase (Building 8): Five stories; 2.5-foot increase above maximum height (gray portions on north and east)
  9. Other modifications: Street name modifications to avoid confusion with existing heritage district street names

Vote Breakdown

Heritage North Rezoning (Z20-02):

Individual votes not stated in transcript. Mayor Bridget Peterson, Vice Mayor Yung Koprowski, Councilmember Scott Anderson, Councilmember Lauren Hendricks (President), Councilmember Cody September, Councilmember Kathy Tilke, and Councilmember Amy Yentes all voted in favor.

Vice Mayor Selection (Amy Yentes):

Water System Development Fees:

Outcome & Next Steps

Heritage North:

Vice Mayor:

Water Fees:

Controversies & Context

Vendor Fraud and Council Accountability:

Jim Torgeson public comment introduced a damaging but unresolved controversy that starkly contrasted with the evening's celebratory tone. According to Jim Torgeson account, a non-competitive vendor bid worth approximately $250,000 was approved by two then-council members (Taylor and Cook) without full deliberation. The vendor then issued fraudulent invoices and false purchase agreements, creating a $140,000 shortfall in accounted materials. The vendor was debarred and refunded $20,000, leaving $120,000 unresolved. Jim Torgeson stated the vendor has never been held further accountable.

Jim Torgeson framed the council's silence as complicity: "Nobody up here did anything about it. Nobody up there held their feet to the fire." He argued the vendor profited substantially and faced no serious consequences, while the town absorbed the loss.

Town Manager's Role: Jim Torgeson credited Town Manager Dan Henderson (not named at the time of Jim Torgeson comment) with eventually hiring an investigator and issuing a debarment letter—action the current council members did not initiate or acknowledge.

No Council Response: The transcript records no council member reply, clarification request, or commitment to review the allegations. The meeting proceeded immediately to the Heritage North presentation.

Context: This allegation emerged during a period when the council was receiving extensive public recognition for collaborative, deliberative governance on Jim Torgeson challenge to council to "learn a lesson: humility" and "figure out how you're going to make sure stuff like that doesn't happen again" implicitly questioned whether the council's recent commitment to thoughtful process reflected a genuine shift in governance or was selective in application.

Other Public Comment Issues:

Tom Patterson raised concerns about the western canal corridor analysis (Item WW1060), noting that gravity-fed pipe options (items 3-4) preferred by neighbors were being ruled out in favor of pumped systems, with a decision deferred to April. He also critiqued the town's planned remodeling of the downtown building as budget-driven ("I think departments should actually be rewarded for being thrifty and not lose money that they save").

Amy Keller, communication director for The Church of Jesus Christ of Latter-day Saints in Gilbert, invited the council to a community constitution event on February 4 at 7 p.m. featuring national speaker Todd Collister, author of "America's Choice: A Nation Under God or Without God."

Duration

Other Notable Items

Vice Mayor Selection: Amy Yentes elected Vice Mayor 2022 in unanimous 7-0 vote, replacing Yung Koprowski opposition or discussion; serves one-year term.

Water System Development Fees: Council approved adoption of system development fee structure for water infrastructure expansion (north treatment plant), with public hearing on specific fees deferred to February. Net residential impact ~$313; commercial impact ~$1,500. Town Manager noted stakeholder meetings yielded no objections brought to council.

Shade and Streetscape Master Plan: Accepted as public document, 7-0 approval (no discussion or presentation).

Property Acquisition: One item pulled from consent agenda; approved unanimously; no presentation or discussion; vote count not specified in transcript.

Proclamation: January 2022 declared "Speak Up Stand Up Save a Life Month" in recognition of statewide youth suicide prevention initiative; Gina Godby credited as responsible sister of Mayor Peterson and organizer; 10,000+ Arizona students from 169 schools have participated; over 500,000 youth statewide impacted.