Flagstaff Planning Commission unanimously recommends 83-unit Pinehaven development with $1.8 million affordable housing contribution

Planning Commission Unanimously Backs 83-Unit Pinehaven Development with Record $1.8M Affordable Housing Contribution

The Flagstaff Planning and Zoning Commission voted unanimously on July 23, 2025, to recommend approval of Red Oak Development Group's Pinehaven residential project, a medium-density community of 83 townhomes on 13.82 acres at the southwest intersection of South Lone Tree and East Zouri Drive. The project is anchored by the largest affordable housing fund contribution in city history—$1.8 million—and incorporates 100% electric units, wildland-urban interface fire-resistant design, and public access trails, subject to removal of contested rooftop features and new pedestrian safety measures demanded by commissioners and neighbors.

Key Speeches

"We are proud to announce, you know, as Ben mentioned that we are giving the largest contribution in the history of the program of Flagstaff. So that we cannot figure out a way to build affordable housing, but that is our commitment to you all to hopefully take that money and do something with it um in the name of home ownership because it's it is a really critical thing that we have to figure out as a as both private and public entities." — Tom Stab, CEO, Red Oak Development Group

"You know, it's it's the Coconino pine forest... the whole motivation of this is to try to let our buildings be the backdrop to the forest rather than the other way around." — Mark Lind, Architect, Pinehaven

"We consciously eliminated a lot of the large roof overhangs that characterized some of the older buildings in the region... The buildings that survived those fires are the ones that were designed specifically according to these WUI guidelines." — Mark Lind, on Wildland-Urban Interface design compliance

Timeline

• Applicant presentation: Red Oak Development Group presented Pinehaven, a three-year planning effort led by award-winning architect Mark Lind (trained in Copenhagen) and landscape architect Terry Slavic Suzuki. The project consists of 40 units west of Masonic Lane (Phase 1) and 43 units east of Masonic Lane (Phase 2), with a clubhouse amenity center serving both phases. Tom Stab emphasized the developer's "strong towns" philosophy—community-centric design, pollinator-friendly landscaping, no fractional ownership, and no short-term rentals.

• Staff recommendation: Ben Mah, city planner, presented the staff report recommending approval with conditions. The project meets density requirements (6 units per acre, within the 6–9 units-per-acre range for the proposed medium-density residential zone and consistent with the 2–13 units-per-acre range for existing suburban neighborhoods per the Flagstaff Regional Plan 2045). Staff documented the developer's use of one affordable housing incentive—a 35% reduction in forest resource preservation requirements—to offset the requirement to build 10 on-site affordable units. The financial contribution of $1.8 million replaces on-site affordable units. The project includes 100% electric construction, two public EV charging stations, bike share and bus pass programs for residents, bike lanes and sidewalks along Zouri and Lone Tree, two bus stops, and 6.7% of lot area dedicated to public access trails exceeding the 5% civic space requirement.

• Public comment: Four speakers addressed the commission. Commissioner Mary Norton, disclosing her residence in Pinnacle Pines and attendance at neighborhood meetings, raised concerns about the rooftop deck on the clubhouse and confirmed it had been removed in response to community feedback. Michael Banker, an eight-year Pinnacle Pines resident, questioned the unit square footage and sought clarification on tree removal percentages. A third speaker requested striped crosswalks at Zouri and Lone Tree, noting cost concerns; Luke Carowway responded that four-way striping had already been agreed to during civil plan review. A fourth speaker asked about accountability and tracking of the $1.8 million affordable housing fund contribution. Assistant Housing Director Justina Costa confirmed the city tracks all housing funds and is accountable for their use, and noted an upcoming September presentation to council on city-owned land development.

• Council discussion: Commissioner Christine Shehy questioned the reversion condition (finding four), which allows the city to schedule a public hearing to revert the zoning to rural residential and suburban commercial if the developer fails to obtain final civil plan approval within two years of the rezone ordinance taking effect. Shehy expressed concern that this "antiquated" practice—common in the 1980s but largely abandoned in most jurisdictions due to recession-era disputes—creates developer risk and may discourage investment. Alex (Planning Staff) clarified the reversion is discretionary ("may"), not automatic, and that similar conditions are standard in Flagstaff rezone approvals. Shehy noted she had not seen such conditions "in quite a few years" in metro Phoenix and Maricopa County and warned of precedent risk if residents request reversion after two years without development. Commissioner Ian Sharp praised the architecture and design fit with Flagstaff's community character, commending the commitment to no short-term rentals. Commissioner CJ Lukey echoed support for the design and the developer's responsiveness to community input. Commissioner Shehy also raised concerns about the move to all-electric units, citing a recent three-fold increase in transformer and meter costs due to data center demand, and noting that winter power outages in Flagstaff necessitated gas fireplaces for heating. Luke Carowway acknowledged the concern but did not commit to adding gas infrastructure. Commission Chair Mary Norton pressed staff and transportation engineer Stephanie Santana on the traffic impact study's age (December 2022, nearly three years old) and the lack of required improvements at the Zouri and Lone Tree intersection despite new sidewalks making crossing more desirable. Norton noted the 35 mph speed limit, downhill geometry, icy conditions, and lack of painted crosswalks, and requested all-four-direction striped crosswalks. Santana explained that painted crosswalks on arterial roads require a pedestrian warrant study showing sufficient crossing demand, and that the city has plans for a future roundabout at that intersection. Norton suggested the commission recommend to council that a traffic study and speed-limit reduction (from 35 to 25 mph) be pursued. After further discussion with Stephanie Santana and staff attorney Alex, the commission decided to remove the speed-limit recommendation from the motion, deferring to the city's standard traffic engineering procedure, though Norton indicated she would pursue the matter as a private citizen. The four-way crosswalk striping at Zouri and Lone Tree was confirmed to be added to the project's conditions.

• Vote: Unanimous approval with conditions (Joshua Maher, listed as arriving late, was marked present by the end of the vote). The motion, made by Commissioner Ian Sharp and seconded by an unnamed commissioner, passed with all commissioners voting in favor and none opposed.

Opposition

No organized opposition appeared at the hearing. However, during neighborhood meetings (held October 17, 2024, with 17 attendees, and November 21, 2024, with 10 attendees), neighbors raised concerns about traffic, parking, natural environment impacts, fractional ownership, and short-term rentals. The developer removed fractional ownership and short-term rentals from the proposal in response to this feedback.

Main concerns raised by commissioners (not opposition, but conditions imposed):

1. Rooftop deck on clubhouse (removed by developer before hearing; Commissioner Norton asked staff to confirm removal and add to conditions).
2. Observation deck and pine cone structure in open space area (removed by developer after neighborhood pushback; iteration moved from observation deck to "pine cone park" concept to open trail system; finally removed entirely).
3. Fractional ownership model (removed by developer; Commissioner Ian Sharp requested it be formally added to the development agreement in the same manner as the short-term rental prohibition).
4. Traffic impact study age and lack of intersection improvements at Zouri and Lone Tree (led to four-way crosswalk striping requirement; speed-limit reduction request deferred to city process).
5. Reversion condition in zoning (Commissioner Shehy expressed concern but condition was retained as standard practice).

Support

The commission and applicant both articulated support:

• Commission support: Commissioner Sharp noted the architecture and design "really seems to fit with our community." Commissioner Lukey praised the design, the public-facing event center, and the developer's responsiveness to short-term rental concerns. Chair Norton, despite her traffic and speed-limit concerns, commended the applicant for removing features in response to neighborhood feedback and for being "receptive" to community input.

• Applicant support: Red Oak Development Group's Tom Stab, architect Mark Lind, and engineer Luke Carowway presented a coordinated, well-rehearsed pitch emphasizing sustainability (100% electric, WUI design, dark sky compliance), community benefits ($1.8M affordable housing fund contribution, public trails, bus improvements), and design intentionality. Mark Lind's discussion of WUI guidelines and fire-resistant design was met with apparent commissioner appreciation.

• Staff support: Ben Mah's comprehensive staff report met all three rezoning findings: conformance with general plan and regional plan; public good and community benefit; and physical suitability. Staff highlighted alignment with goals around renewable energy, non-motorized connectivity, affordable housing, and infill development.

Project Details

• Case number: PZ-22-0000109-04 (Direct to Ordinance Zoning Map Amendment)
• Applicant / developer: Red Oak Development Group, headquartered in Austin, Texas; Tom Stab, CEO
• Architect: Mark Lind (Dan Architecture and Art Architecture)
• Engineer: Luke Carowway, Viewpoint Land Solutions (project engineer)
• Location / address: 2951 South Masonic Lane, southwest intersection of South Lone Tree and East Zouri Drive, Flagstaff, Arizona
• APN: Not stated in transcript
• Current zoning → Proposed zoning: Rural Residential and Suburban Commercial (split-zoned) within Resource Protection Overlay → Medium Density Residential (MR) within Resource Protection Overlay
• Density / units / square footage: 83 residential units; 6 units per acre (within allowed range of 6–9 units/acre for MR zone and 2–13 units/acre for existing suburban neighborhood area type per Flagstaff Regional Plan 2045). Unit mix: 72 three-bedroom units, with some two- and four-bedroom units. Smallest unit is four bedrooms at approximately 1,800 square feet (per Michael Banker's comment).
• Development agreement highlights: No fractional ownership; no short-term rentals (no leases under 30 days); 100% electric units (no natural gas infrastructure); two public EV charging stations on site; EV charging hookups in all residential unit garages and driveways; bus pass program for first-year owners; promotion of Eco Pass for educators; bike share program; dark sky ordinance compliance; pollinator-friendly landscaping. Public improvements: new and/or improved sidewalk, parkway, and bike lane along East Zouri Drive and South Lone Tree Road; two bus stops serving both directions on East Zouri; $1.8 million contribution to City of Flagstaff affordable housing fund in lieu of 10 on-site affordable units (12% of total unit count, category 1 affordability level).
• Changes from previous version: Initial proposal included a rooftop observation deck and clubhouse rooftop deck; removed in response to neighborhood feedback and council concerns about noise. Initial marketing included fractional ownership model; removed in response to neighborhood opposition. Initial design concept for open space included a "pine cone park" structure (observation deck iteration); removed to preserve open trail system. Four-way crosswalk striping at Zouri and Lone Tree intersection added during civil plan review in response to staff comments.
• Site design: 13.82-acre vacant parcel; 40% developed (83 units clustered centrally to preserve forest), 60% open space and resource protection areas. Public access trails meander through resource protection areas (exceeding 5% civic space requirement at 6.7% of lot area). Forest preservation: 32.5% of forest resources preserved (base requirement 50%, reduced by 35% via affordable housing incentive; project proposes 33.6% preservation).
• Access: Two phases connected via Masonic Lane (private street tract and access easement); Phase 1 (west of Masonic Lane): 40 units, central east-west drive connecting Zouri to Masonic Lane; Phase 2 (east of Masonic Lane): 43 units, central east-west drive connecting Lone Tree to Masonic Lane. Right-in/right-out access from Lone Tree with new right-turn lane and reconstructed sidewalk and 5-ft parkway.

Vote Breakdown

• Final: Unanimous (all commissioners present voting in favor)
• Yes: All commissioners present (Harold Mandino absent or not listed as voting; Joshua Maher listed as arriving late but appears to have voted; Christine Shehy, CJ Lukey, Mary Norton, Ian Sharp, Megan Weller all voted yes)
• No: None
• Abstentions / absences: Harold Mandino not named in roll call or vote; Joshua Maher noted as arriving late but no explicit abstention noted

Outcome & Next Steps

The Planning and Zoning Commission voted unanimously to recommend approval of the rezoning and direct-to-ordinance amendment (PZ-22-0000109-04) to the Flagstaff City Council, subject to the following conditions:

1. The subject property must be developed in accordance with the approved site plan and conditions of approval dated May 9, 2024.
2. Modifications other than minor modifications to the approved site plan will require an amendment to the direct ordinance zoning map amendment request.
3. All terms, conditions, and restrictions detailed within the Pinehaven development agreement must be fully satisfied.
4. New condition (added by commission): The rooftop deck on the clubhouse shall be deleted from the site plan.
5. New condition (added by commission): The pine cone feature and observation deck in the open area trail system shall be removed.
6. New condition (added by commission): Fractional sales/fractional ownership shall be prohibited in the development agreement in the same manner as the short-term rental limitation.
7. New condition (added by commission): Four-way striped crosswalks shall be provided at the intersection of Zouri Drive and Lone Tree Road.
8. In the event the property is reszoned and the developer fails to obtain final civil plan approval within two years of the effective date of the rezone ordinance, the city may (at its discretion) schedule a public hearing before city council to consider reversion to the former rural residential and suburban commercial zoning in accordance with ARS 9-462.01.

The project now advances to the Flagstaff City Council for a public hearing and final vote on the rezoning. Luke Carowway indicated that architectural plans are expected to be completed within three to four weeks, after which the developer will pursue building permits. Assistant Housing Director Justina Costa noted that a presentation on the city's use of affordable housing contributions will be made to council in September.

Controversies & Context

Reversion clause controversy: Commissioner Shehy raised a significant concern about condition four (the reversion clause), arguing it is an "antiquated" practice that was common in the 1980s but has been largely abandoned by most jurisdictions and Maricopa County entities due to past recession-driven disputes. When economic downturns occurred, residents or third parties would request reversion of zoning to prior classifications, creating legal and planning quagmires. Shehy noted that if a rezoning is sound at the time of approval, it should remain sound two years later, and that conditioning a rezoning on future site plan approval creates excessive developer risk and may discourage investment in underutilized properties. Staff attorney Alex acknowledged the condition is standard in Flagstaff rezone approvals and clarified it is discretionary (the city "may" revert, not automatic), but did not counter Shehy's substantive concern about its disincentive effect. The condition remained in the final recommendation, but Shehy's remarks signal potential future policy review.

Rooftop deck and observation deck iterations: The developer initially proposed a rooftop deck on the clubhouse and an observation deck in the open space area. At neighborhood meetings, residents objected to the rooftop deck on noise and safety (flood risk) grounds. For the observation deck, the developer iterated twice—first to a "pine cone park" structure, then to an open trail system with benches—before removing it entirely in response to continued pushback. Commissioner Norton, attending as both a resident and commissioner, specifically asked the applicant to confirm removal and requested staff add both removals to the conditions of approval. The applicant acknowledged the removals were in response to community feedback.

Fractional ownership model: The developer initially proposed a fractional ownership model (allowing multiple buyers to own shares of units) in neighborhood meetings. Residents objected. The applicant removed fractional ownership from the proposal. However, Commissioner Ian Sharp noted that while fractional ownership was removed verbally, it was never formally prohibited in the development agreement. Sharp requested the commission add a formal prohibition of fractional sales to the development agreement in the same manner as the short-term rental ban. The applicant agreed to do so, though the specifics of how this will be codified were not detailed in the hearing.

Short-term rental restriction: The applicant voluntarily committed to prohibiting short-term rentals (no leases under 30 days), citing feedback from neighborhood meetings and the feedback that short-term rentals risk turning the community into a transient hotel-like environment. This commitment was incorporated into the development agreement. Commissioner Lukey noted this was "the second developer we've had come forward and address it" and praised the applicant for being responsive.

Traffic impact study age and intersection safety: Commissioner Norton raised concern that the traffic impact study was conducted in December 2022, nearly three years before the hearing (July 2025), and that substantial new development (Juniper Point, Pine Canyon) had occurred in the interim, potentially rendering the study outdated. She further noted that while the project improves sidewalks on Zouri, the adjacent Zouri–Lone Tree intersection lacks painted crosswalks, has a 35 mph speed limit (downhill in both directions), and can ice over in winter. She requested four-way striped crosswalks and a speed-limit reduction from 35 to 25 mph. Transportation Engineer Stephanie Santana explained that painted crosswalks on arterial roads (Lone Tree is classified as a minor collector) require a pedestrian warrant study; however, the developer had already agreed to stripe crosswalks at the intersection during civil plan review. Regarding speed limits, Santana noted that Lone Tree is classified as a minor collector road typically set at 30 mph (though currently at 35), and that any speed-limit change would follow the city's traffic engineering procedure (traffic count, analysis, and council action). Commissioner Norton indicated she would pursue a speed-limit study as a private citizen if the commission did not formally recommend it. After further discussion, the commission decided not to include a speed-limit recommendation in its motion, instead deferring the matter to the city's standard process. This decision reflected sensitivity to not circumventing established procedures, though Norton's concerns remain on the record.

All-electric and affordability concerns: Commissioner Shehy expressed concern about the developer's commitment to 100% electric construction, citing a three-fold increase in transformer and meter costs due to data center demand and citing personal experience with winter power outages necessitating gas heating. The developer acknowledged the concern but did not commit to adding gas infrastructure. This reflects a broader national tension between climate/electrification goals and energy cost and reliability concerns.

Affordable housing fund transparency: A public commenter questioned where the $1.8 million affordable housing contribution would go, how it would be tracked, and how often the city would report its use to council. Assistant Housing Director Justina Costa confirmed the city tracks all housing funds and is accountable for their use, and noted that the money would typically be used to offset developer fees and costs as part of the city's affordable housing incentive policy, or potentially to fund city-owned land development (a topic for a September council presentation). However, the commenter's underlying concern about transparency and public reporting was not fully addressed by staff.

Forest resource preservation calculation: Michael Banker asked whether the project would "cut down 65% of the trees on the property." Ben Mah clarified that the forest preservation requirement is calculated on "point value" based on tree diameter (breast height), not on individual tree count, and that the affordable housing incentive reduces the base preservation requirement from 50% to 32.5%; the project proposes 33.6% preservation. However, Mah could not provide a specific number of individual trees to be removed, suggesting a gap in public-facing transparency around tree loss.

Duration

• This item (Pinehaven rezoning): Approximately 90 minutes (staff presentation, applicant presentation, commissioner questions, neighborhood concern discussion, public comment, deliberation, vote)
• Mountain View Baptist Church CUP extension (second major item): Approximately 15 minutes
• Total meeting: Approximately 2 hours 14 minutes (adjourned at 5:37 p.m.)

Other Notable Items

Mountain View Baptist Church Conditional Use Permit Extension (PZ-24-000046): The commission unanimously approved a 180-day extension of the conditional use permit for a proposed building addition at Mountain View Baptist Church (2150 East Linda Vista Drive) that would accommodate over 250 seats (362-seat capacity). The original CUP was granted in June 2024, but no building permits have been pulled; the extension extends the permit's expiration to December 23, 2025. Applicant Jim stated that architectural plans are expected within three to four weeks. No public comment; staff noted no changes to the original application or code requirements.

Canyon Del Rio Phase 2 Preliminary Block Plat (Agenda Item 6A): Pulled from the agenda at the applicant's request; no discussion or presentation occurred.