Scottsdale approves Palm Lane Residences rezoning for 22 units; defers storage text amendment to July
SCOTTSDALE, ARIZONA — May 28, 2025

Scottsdale approves Palm Lane Residences rezoning for 22 units; defers storage text amendment to July

Planning Commission approved Palm Lane Residences rezoning (22 units, R17 to R3) unanimously but continued a citywide text amendment for CO district storage facilities conversion to July 9th due to commissioners' concerns about proper procedural approach and unintended consequences.


Planning Commission Approves Palm Lane Residences Unanimously but Clashes Over Scope of Office-to-Storage Zoning Amendment

On May 28, 2025, the Scottsdale Planning Commission opened its regular hearing with an uncontroversial victory for infill housing—the unanimous approval of the Palm Lane Residences rezoning—and closed with philosophical gridlock over whether a citywide text amendment was the correct vehicle to facilitate office-to-storage conversions at a single struggling site. The 6-0 vote on the rezoning stood in sharp contrast to the 6-0 continuance of the text amendment, which commissioners asked be reconsidered along a narrower or broader framework before returning July 9.

Key Speeches

On Palm Lane Residences and neighborhood-driven design:

"This is what we'd like to transform this site to today." — Lauren Proper Potter, attorney for Palm Lane Residences applicant, concluding her presentation showing renderings of the 22-unit detached community.

"I think this is a perfect infill site and this is the perfect product for it. It's appropriate. It's responsive to neighborhood feedback." — Lauren Proper Potter.

"I think this is a nice project for the area and I think it has a nice buffering effect, if you will. So, I'm supportive of this project and thank you." — Commissioner Scarro (remote), supporting the transitional density and height between R17 neighborhoods and higher-density nearby uses.

On the CO storage amendment and text amendment methodology:

"Storage facilities do not contribute job density, foot traffic, and economic synergy in an otherwise office oriented environment." — Meredith Tessier, Planning Director, summarizing staff recommendation for denial of the text amendment.

"I don't like it… We really have tried to find the best path forward." — Carolyn Overberholtzer, land-use attorney for Catalyst property owner, acknowledging staff's recommendation and the difficulty of the case.

"I am still struggling with the use of it text amendment for a specific use… trying to focus a text amendment for a specific site or two from that presentation you showed us is where I'm really struggling with this. I don't think this is a proper use of a text amendment." — Vice Chair Young, articulating the core tension the commission wrestled with for the latter half of the meeting.


Timeline

Palm Lane Residences (Case 6ZN2024)


Case 6TA2024 – CO District Text Amendment (Internalized Storage Facilities, Vehicle Storage, Warehouse)

Overberholtzer walked the commission through the CO use table, showing only 17 permitted uses compared to 100 non-residential uses in the full zoning ordinance. She noted that internalized community storage is already permitted in seven other districts (C1, C2, C3, C4, I1, PNC, PCC). She argued that office is nearly ubiquitous (allowed almost everywhere, as frequently as municipal uses, schools, churches) and that the city has created excessive competition by not funneling office to specific districts. She contrasted their approach evolution: initially filed as a conditional use permit (presented at neighborhood meetings in December), then pivoted to permitted use with conditions in response to staff feedback. The proposed conditions limit eligibility to parcels with 8+ acres, existing above-ground parking garage, and building heights ≤36 feet. She estimated this narrows the 683 CO parcels to roughly 600, possibly only 1–2 that meet all criteria (though disclosed uncertainty on the height of a Double Tree property that might qualify). The warehouse and vehicle storage components are accessory only—not standalone uses—tied to the primary internalized storage facility. Vehicle storage is limited to passenger vehicles in excess of required parking; warehouse area capped at 30% of building footprint. All require design review approval and screening.

Overberholtzer emphasized traffic reduction: the vacant building, if ever fully occupied in office use, would generate 4,700+ additional daily trips. The proposed storage use would generate far fewer, reducing neighborhood burden. She countered that storage facilities "do not belong in industrial areas" and that customers prefer accessing storage in professional office buildings rather than industrial zones. She acknowledged the conditional use permit path was considered but explained staff's concern: CUP criteria (noise, dust, odors, traffic compatibility) are easily met by storage uses, creating a false sense that denial is possible when, in practice, most would likely be approved. Thus the applicant pivoted to permitted with conditions to provide clarity and predictability to property owners while narrowing the universe of eligible sites.

Overberholtzer addressed adaptation and adaptive reuse, noting HB2110 (state legislation enabling adaptive reuse of obsolescent office to multifamily) applied to office buildings but cautioned that converting to storage occupancy might complicate future multifamily conversion eligibility. She did not provide a legal opinion but flagged the issue. She reiterated that the CO district lacks viable alternatives for owners facing sustained vacancy and emphasized that internalized storage is easily reversible if office demand returns.


Opposition

To Case 6TA2024 (CO Storage Text Amendment):


Support

For Case 6TA2024 (CO Storage Text Amendment):


Project Details

Case 6ZN2024 – Palm Lane Residences Rezoning


Case 6TA2024 – Commercial Office (CO) District Text Amendment