Goodyear approves group home licensing ordinance, Shake Shack drive-thru; tables business license conversion

Goodyear Council Balances Housing Diversity, Restaurant Growth, and Group Home Crackdowns—But Pumps Brakes on Broad Business Licensing

In a measured evening of land-use decisions, Goodyear City Council on April 29 advanced three major regulatory items while tabling a fourth to refine its approach to homebased business regulation. The meeting mixed consensus victories on missing-middle housing and a marquee restaurant opening with pointed debate about whether a new business licensing regime would strangle small home-based entrepreneurs—an outcome staff insist they do not intend but cannot yet fully promise to prevent.

The council passed R1-A townhouse standards allowing narrower lots and alley-loaded garages, approved a Shake Shack drive-thru at Goodyear Civic Square with exceptional stacking capacity, and enacted a comprehensive group home licensing ordinance with quarter-mile buffers after identifying approximately 150 unlicensed facilities operating in the city. But on the business licensing conversion—meant partly to address those same illegal group homes—five council members signaled concern, and the council voted to table the ordinance pending revisions that would carve out or cap requirements for freelancers, makeup sellers, dog walkers, and other small-time homebased operators.

R1-A Townhouse Standards: Missing Middle Housing Made Easier

Planning Manager Christian Williams opened the evening with a presentation on a zoning text amendment that relaxes development standards for R1-A residential districts to permit alley-loaded townhomes on narrower lots—widths of 20 to 35 feet, down from the existing 35-foot minimum.

The ordinance responds to developer demand and market activity. Williams noted that between 2017 and 2023, missing-middle housing (townhomes and court homes) accounted for 9 percent of Goodyear's new housing stock; in 2023 alone, 102 townhomes were finaled, bringing 285 new residents. Recent rezonings for Los Brios Townhomes and Ascent at Canyon Trails both sought alley-loaded products on narrower pads, a process that currently requires pad overlays and lengthy rezoning.

The amendment codifies reduced-lot standards administratively. Developers proposing lots 20–30 feet wide must provide two amenity and two streetscape elements; those 30–35 feet wide need only two amenity and two streetscape elements. All narrow-lot townhomes must be alley-loaded. The ordinance also clarifies private patio wall heights, guest parking, and street-layout design.

"I think this is an important piece that we are missing…a lot of these type of communities are owner-occupied people buy them they live there they're a good um different type of house to live in for someone that might want to own a property lock and leave it…I appreciate the like the one you showed us that there will be amenities Community amenities and for community events and to make that sense of community neighborhood so I totally support these." — Laura Kaino Planning Commission recommended approval 6–0. Council member Wally Campbell linked the amendment to a state-level push for housing diversity and affordability:

"The state's been after this to try to get some more affordable housing and right now unfortunately in Goodyear to get starter homes they're very expensive I think these type of homes will make it affordable for some young families or those people to try to get into the business of home ownership." — Wally Campbell council voted 7–0 to approve Ordinance 2024-167.

Shake Shack Drive-Thru: Stacking Strategy and Walkable Downtown

Planner Justin Gabrielson presented the use permit for a 1,700-square-foot Shake Shack restaurant at the northwest corner of McDow Road and North 150th Drive within Goodyear Civic Square. The development is a key anchor for the city's long-term mixed-use downtown corridor being assembled by Globe and Red Development along the Harkin Theater–to–Bullard spine.

The site required a use permit under the GSQ pad overlay, which mandates drive-through approval rather than by-right access. Gabrielson highlighted an aggressive stacking strategy: 24 queuing spaces before the first service window (four times the city standard of six) and nine spaces between the first stopping point and the pickup window (more than double the standard of four). The double drive wraps internally along North 150th Drive, preventing backups onto McDow Road.

The building design matches adjacent office buildings and City Hall, with mesh-wire screening and masonry walls alternating along the drive-through lane to minimize visual and noise impact. A new driveway off North Civic Square and a future access road (Desert Flower Drive) from North 150th Drive provide three ingress/egress points. The site includes direct pedestrian connections to North Civic Square and pathways linking to future parcels to the west.

A resident raised concerns about Chick-fil-A's traffic patterns and pedestrian safety. Gabrielson and consultant Heather Pan (working for the landowners) clarified that Shake Shack's new drive-through model differs from older locations and that stacking would internalize on-site rather than spilling onto nearby streets.

"If traffic were to back up this site is developed differently so it would stack into internally so they're going to wrap around one 50th Drive we're not seeing the same thing you are." — Christian Williams, Planning Manager

Council Member Sam Stephens pressed on whether Shake Shack's core business model typically includes drive-throughs and whether the customer experience would support it. Pan confirmed a new Shake Shack drive-thru recently opened on the Loop 101 in north Scottsdale and that fast-casual operators have adapted to consumer demand post-pandemic.

Council Member Wally Campbell drew a favorable comparison to Chick-fil-A's Estrella Parkway location, which operates two drive-thru lanes smoothly without visible spillover.

The Planning and Zoning Commission recommended approval. The council voted 7–0 to approve the use permit with a stipulation that if queuing issues arise, the city will work with management to find solutions.

Group Homes and Sober Living: Quarter-Mile Buffer and Licensing Crackdown

The most substantive and contentious item of the evening was Ordinance 2024-604, a comprehensive zoning and licensing amendment addressing unlicensed and illegally operating group homes and sober-living facilities. Contract Planner Dave Williams, supported by presentations from City Attorney Ric Mass, police and fire representatives, and council discussion, outlined a multi-department approach to a problem that has festered for years.

The Problem and the Heat Map

Williams presented a heat map of the city showing the density and clustering of group homes. Dark-red zones indicated neighborhoods saturated with multiple facilities within walking distance—often four, five, or six homes on a single block. The city has identified approximately 150 group homes currently operating in Goodyear, many without proper state licensing or city permits. The ordinance aims to align vernacular terminology with industry evolution, establish uniform buffering and licensing requirements, and create a transparent multi-step permitting pathway.

Currently, assisted living homes with one to six residents are allowed by right in any residential zone with no buffer. Those with seven to ten residents require a quarter-mile buffer. Fire sprinklers are mandated at six residents. This patchwork creates incentive for operators to downsize to five-resident homes to avoid sprinkler costs and buffers—precisely what is happening.

The Ordinance Framework

Under the new ordinance (taking effect July 1, 2024, with a 60-day outreach period):

• All group homes—whether assisted living, sober living, behavioral-health facilities, transitional housing, or other congregate care—will require a quarter-mile buffer from one another.
• Group homes will be reclassified using modernized terminology and a new definition of "single housekeeping unit" to capture facilities whose use classification changes under the radar.
• A multi-step permitting process clarifies expectations: zoning clearance (temporary, 180 days) from planning; change-of-use permit from building safety; business license from finance; state licenses from Arizona; fire and building inspections before final clearance.
• Enforcement mechanisms include code enforcement authority to revoke licenses for non-compliance, false information, or criminal convictions for theft, fraud, or crimes of moral turpitude.
• The ordinance ties zoning clearance to a new business license program (discussed below).

Council Concerns and Dialogue

Council Member Wally Campbell, who serves on the Arizona Nursing Care Institution Administrators and Assisted Living Managers state board, raised a critical distinction: licensed assisted living facilities—where residents receive ongoing medical care, medication management, and bathing assistance—are not the same as sober-living or behavioral-health group homes. She demanded assurance that the ordinance would not inadvertently subject licensed facilities to redundant city oversight or threaten their state licenses.

"We have to be very protective of that group because they are governed by the state they are licensed by the state they have yearly um inspections by the state and if they are found in um and not following the law they're written up they're fined and then they come before our board and we have the authority to revoke their license immediately." — Council Member Wally Campbell

Williams confirmed that licensed assisted living homes remain well-represented within the group-home definition and that the ordinance does not alter building code or fire sprinkler requirements—it simply adds zoning controls and licensing oversight.

Council Member Vicki Gillis raised the question of how the city would identify and bring into compliance the illegal homes that are not currently registered. Williams explained that the city has a list compiled by police, fire, and code enforcement based on service calls and complaints. The 60-day transition period would allow outreach and education; existing legal operations would be grandfathered in, but those operating illegally would face code enforcement action unless they come into compliance.

Vice Mayor Brannon Hampton questioned the timeframe for enforcement and whether existing non-compliant homes would be given a grace period. Williams noted that those operating legally today will operate legally tomorrow, but illegal operators will be subject to enforcement. The city plans to work with them in good faith during the 60-day window; after that, code enforcement takes over.

Council Member Sam Stephens raised a regional concern: could a strict Goodyear ordinance push problem operators into neighboring Buckeye or Avondale? Williams acknowledged that Surprise implemented a quarter-mile buffer and licensing scheme about a year ago, which did shift some activity. However, Surprise's effort also freed up housing stock (Stephens noted he recently could not find a four-bedroom home in Goodyear and had to move to Surprise). Other west-side cities—Glendale and Avondale—are watching and may follow suit.

Council Member Laurano asked whether group homes are federally protected under fair housing and the Americans with Disabilities Act. Williams confirmed both apply: fair housing law protects congregate settings for disabled and non-disabled persons alike; the ADA mandates equal access and reasonable accommodations. The ordinance is structured to comply with both.

Public comment came from John Rooney, who asked how spreading group homes across the city via quarter-mile buffers protects the surrounding community. Williams responded that clustering creates problematic neighborhood dynamics and concentration of service calls; dispersal allows a more traditional family-residential environment and reduces the strain on individual blocks.

The Planning Commission recommended approval 6–0. The council voted 7–0 to pass Ordinance 2024-604.

Business License Conversion: A Carve-Out Controversy

City Attorney Ric Mass presented Ordinance 2024-168, converting the city's 18-year-old business registration program to a business licensing program. Registration required only that a business notify the city of its existence; licensing imposes affirmative regulatory obligations: inspections, proof of state licenses, responsible-person-on-premises requirements, and penalties for false application or non-compliance.

The impetus is partly the group homes crisis—the city realized it lacked effective tools to track or regulate informal operations. Most valley neighbors (Avondale, Buckeye, Surprise, Glendale, Peoria) already operate licensing programs. The fee remains $75 annually, consistent with renewal.

The Homebased Business Uproar

But the ordinance sparked immediate concern from council members about unintended consequences. A public speaker—a flooring contractor whose family business in Phoenix faced substantial code-compliance costs—warned that requiring new businesses to obtain licenses while meeting building codes simultaneously could create barriers to entry.

Council Member Sam Stephens articulated the core worry:

"I'm worried that um new businesses coming here will encounter sort of the same problem…I'm going to kill I'm going to kill a lot of people who have homebased businesses by requiring a lure and I know what we're trying I know the problem we're trying to solve but I think we're going to create another one." — Council Member Sam Stephens

Council Wally Campbell echoed:

"I'm just want to be really careful with our small business folks and with the homebased businesses because that is our lifeblood and we and I know the hysteria of the sober homes has got everybody all worked up but let's just not overdo it…we don't want to put them out of business." — Wally Campbell ordinance would technically require any business conducted within the city—including freelancers, dog walkers using Rover.com with an LLC, makeup sellers, accountants working from home, and yes, lemonade stands—to obtain a license. While Mass explained that the ordinance does not impose inspection requirements on homebased businesses (only those open to public), the fact that they must obtain a license at all, and face $250 fines for failure to apply, $300 fines for non-compliance, and up to $1,000 per day for willful violations, made council members nervous.

Council Member Stephens posed a hypothetical: "How about an example where say I'm a realtor but I'm not based you know in Goodyear I'm I'm based in Peoria but I sell homes in good years so I'm conducting business does every realtor need to do this?" Mass answered yes, consistent with how surprise requires licensing.

Council Member Laura Kaino and Vice Mayor Brannon Hampton both asked whether the city could offer carve-outs for casual sales, low-revenue homebased businesses, or activities like lemonade stands. Stephens proposed an affidavit system: homebased businesses below a certain annual-revenue threshold (he suggested $3,000) could self-certify and remain exempt.

Mass acknowledged the tension and said staff could revisit the ordinance to refine definitions and carve-outs.

Motion to Table

Sensing the council's reluctance, Stephens moved to table Ordinance 2024-168, asking the attorney to explore exemptions and revenue caps for small homebased businesses. Council Member Laurano seconded. The motion passed 7–0.

Mass committed to return the ordinance within one to two weeks with revised language. Mayor Joe Pizzillo emphasized that the business licensing timeline is not urgent—the ordinance would not take effect until July 1, 2024, and the 60-day transition window provides flexibility.

HUD CDBG Program 2024-25 Action Plan

Community Partnerships Program Manager Christina Panescu presented the city's draft annual action plan for fiscal year 2024-25 Community Development Block Grant (CDBG) funds. Goodyear became a CDBG entitlement community in 2022, allowing it direct access to federal funding without competition. The city's allocation, plus remaining funds from a prior New Life Center renovation project, totals approximately $332,000, allocated to 17 street lights along Litchfield Road in the historic Goodyear neighborhood.

Council Member Sam Stephens commended Panescu and staff for shepherding the entitlement process and noted this would be his last CDBG action as a council member. Council Member Brannon Hampton recalled pushing for entitlement status while on SEDAK and praised the program's support for underserved neighborhoods. The final action plan will be authorized May 6, 2024, to meet HUD deadlines.

Resident Question on Economic Development Strategy

During the citizen comment portion, resident Linda Davis Waters asked about the city's overall economic development macro plan. She recalled a previous contract for a regional mall that was later scaled back to three pads and the Harkin Theater. She requested biannual community meetings to share the city's development vision.

Mayor Joe Pizzillo responded that the city has engaged Globe and Red Development to build mixed-use projects along the Harkin-to-Bullard corridor. He noted that recent additions include High Tide (a seafood restaurant) and White Castle, with more announcements coming as agreements are finalized. He cautioned against speculating on projects without signed letters of intent and directed Waters to Wendy Will, the Economic Development Director, for details and website resources.

Vote Breakdown

Ordinance 2024-167 (R1-A Townhouse Development Standards): 7–0, approved Use Permit (Shake Shack Drive-Thru at Civic Square): 7–0, approved Ordinance 2024-604 (Group Homes and Sober Living Licensing): 7–0, approved Ordinance 2024-168 (Business Registration to License Conversion): Motion to table, 7–0

Individual votes not stated in transcript.

Outcome & Next Steps

The council approved three major land-use and regulatory items and deferred the business licensing ordinance. The R1-A townhouse standards take effect upon signature and apply immediately to new applications. The group homes ordinance takes effect July 1, 2024, with a 60-day education and outreach period during which the city will work with existing operators to facilitate compliance. The business licensing ordinance will return to council within one to two weeks with revised language addressing carve-outs and revenue thresholds for homebased businesses. The next council meeting is May 6, 2024, at 5:55 p.m.

Controversies & Context

The Sober Living Crisis

The group homes ordinance and business licensing effort are both responses to a documented proliferation of unlicensed and illegally operating sober-living and behavioral-health facilities in Goodyear. Police and fire have logged service calls and complaints for years; the city conducted a "rapid improvement event" involving all relevant departments to map the problem and develop a coordinated response. The heat map presented in the meeting showed 150+ facilities, many operating without state licenses or city knowledge, creating insurance fraud, public-safety concerns, and neighborhood disruption.

Surprise, Glendale, and other west-side cities have implemented similar licensing regimes. Surprise's effort—which occurred about a year before Goodyear's—appears to have shifted some operations downvalley and also freed housing stock in that city, an unintended but potentially positive side effect.

Small-Business Pushback on Licensing

The council's hesitation on the business licensing ordinance reflects a broader tension in land-use and zoning governance: how to regulate bad actors (here, illegal group homes and sober-living operations) without overreach against legitimate small entrepreneurs. Five council members explicitly raised the concern that a blanket licensing requirement and inspection regime could chill home-based freelancers, makeup sellers, dog walkers, and other gig-economy workers. The motion to table signals a desire to explore a middle path—e.g., exempting low-revenue homebased businesses or casual sales—before imposing compliance costs on the very people the city claims to support during an inflationary period.

Federal Fair Housing and ADA Constraints

Council members asked whether the city can simply exclude group homes from residential neighborhoods. Williams and Mass confirmed that federal fair housing law and the Americans with Disabilities Act prohibit discrimination against congregate settings for disabled and non-disabled residents alike. However, the ordinance's quarter-mile buffer and licensing requirements are facially neutral, content-neutral, and do not single out any protected class—a structure likely to withstand legal challenge as a reasonable land-use regulation addressing public safety and neighborhood integrity.

State-Level Preemption Concerns

Planning Manager Christian Williams noted that Arizona has been pushing to preempt local zoning controls and mandate more housing diversity through state law. Goodyear's R1-A amendment is framed as a local solution that achieves the state's affordability and diversity goals without waiting for state mandates—a proactive effort to maintain local control.

Duration

This item (R1-A amendment): approximately 20 minutes This item (Shake Shack use permit): approximately 40 minutes This item (Group homes ordinance): approximately 60 minutes This item (Business licensing ordinance): approximately 45 minutes Total meeting: approximately 3 hours 15 minutes (estimated)

Other Notable Items

HUD CDBG 2024-25 Action Plan: The city will use $332,000 in federal Community Development Block Grant funds to install 17 street lights along Litchfield Road in the historic Goodyear neighborhood, accelerating safety improvements for a low-to-moderate-income area. Final approval expected May 6, 2024.

Consent Agenda: Ten items approved by consent, including three new liquor licenses for Popo's Fiesta Deli, Mao's Mexican Food, and Bakas Wine Bar; an intergovernmental agreement with the City of Glendale for fire and medical service staffing; and an intergovernmental agreement with the Arizona Department of Child Safety for integrated services at the Southwest Family Advocacy Center.

Commendations: The city's Economic Development and Digital Communications departments each received awards from their respective professional peers; the mayor noted the recognition in council comments.