Fountain Hills approves 12,000-square-foot medical center for 24-hour operation despite neighbor opposition

Fountain Hills Council Approves 24-Hour Medical Center Despite Neighborhood Battle Over Noise and Lighting

The Fountain Hills town council voted 5-1 on June 17, 2020, to grant a special use permit for the Fountain Hills Medical Center, a 12,000-square-foot emergency and urgent-care facility at 9700 N. Saguaro Boulevard, allowing it to operate around the clock in a C1 zoning district that normally prohibits nighttime commercial operations. The decision crowned a contentious year-long dispute between applicants Dr. Zuma and Dr. Yardagada, their project manager Pete Peters, and adjacent residents—particularly Rosa Nudi at 1711 E. Monterey Drive—over mechanical noise, parking-lot lighting, and wall construction.

The council removed one planning-and-zoning condition (bollard lighting requirements) and retained administrative approval authority for a future Phase 2 expansion housing surgical operating rooms, overriding dissenting council members' calls for public hearings on all future phases. Councilwoman Lacrone voted alone against the permit; two council members moved to require Phase 2 public review but lost 2-5.

Key Speeches

"Two years ago my own daughter fell on stage during a routine rehearsal shattering her elbow which ultimately required surgery. Our best option for emergency room assessment was to transport her and drive 20 to 25 minutes to find a location where she could be seen. In such cases I think that it would be preferable that what happens in fountain hills stays in fountain hills at any time of the day or night." — Susan Henderson, Community Liaison, SonderMind

"I am here tonight to let you know that my neighbors and I are not trying to stop this medical facility from being built. We hope you issue the special use permit with the stipulation set last monday at the pnz commission and should only apply to phase one of the project...I will be looking at 14 air handlers from my house because i overlook the entire building yes where john took the picture in that corner i won't see it go up on my property i will see all the 14 air handlers and i am very concerned about the sounds from them." — Rosa Nudi, Adjacent Resident

"This has been a tough one for everybody...but my allegiance isn't to the hospital or to you sir it's to the residents. I want to make sure the residents are being treated fairly and that they get what they want within reason." — Councilman Brown, expressing his balancing act

"I state about the ac units that are used today are high efficiency units and they don't they don't generate um sound like the jet taking off at all...they generate enough air to keep the air conditioning system unit running and i don't i'm not sure we'll have this...i believe that walls are okay and when we talk about the 15-foot light poles as high as rose said it would she will not see any portion of the lamp at all." — Dennis Brown (applicant's representative), defending the design

"The primary concern has been a heliport there is none for this project...the main concern is typical rooftop mechanical equipment and that is going to be controlled to within your noise ordinance." — Tony Sola, Acoustic Engineer

Timeline

• Applicant presentation: Pete Peters presented the project and introduced Dr. Zuma and Dr. Yardagada; architect Bob Quintana addressed wall and lighting issues; Tony Sola (acoustic engineer) walked through noise compliance.
• Staff recommendation: John Wesley (Development Services Director) presented analysis of lighting, noise, and mechanical-equipment impacts; recommended approval with nine conditions, removal of bollard-lighting requirement (condition 8), and exclusion of conditions 9–10 (wall mediation and post-construction sound study).
• Public comment: Four speakers—Susan Henderson (support, mental-health services angle); Rosa Nudi (opposition, 14 air handlers, noise, wall proximity); Larry Myers (non-resident advocate, proud of project compromise); John Wesley and acoustic engineer (technical defense). Ten written comment cards received; all supported approval.
• Council discussion: Councilman Brown defended hospital as essential service, analogized to Fire Station 2 success; Councilwoman Lacrone expressed concerns about neighbors and Phase 2 administrative approval; Councilman Magazine questioned acoustic engineer's $200/hour fee and post-construction testing cost (~$400); Councilman Spellman suggested post-completion sound audit. Two unsuccessful motions: (1) to add sound-complaint protocol as condition (failed 2-5); (2) to require Phase 2 public hearing (failed 2-5).
• Vote: Motion passed 5-1 (Lacrone no; Brown, Magazine, Tolles, Spellman, Dickey yes) to approve with conditions 1–7 (modified: administrative approval for Phase 2 retained), minus conditions 8, 9, 10.

Opposition

Number of speakers against: 1 (Rosa Nudi, direct neighbor).

Main concerns:

1. Rooftop mechanical noise: Nudi overlooks 14 air-handling units; acoustic report conservative and measured under ideal conditions, not at operating peak.
2. Wall proximity: Existing 8-foot wall on Nudi's property runs parallel to proposed 8-foot hospital wall ~2–3 feet away; maintenance and debris concerns; applicant offered to propose her wall removal (private matter, no council authority).
3. Parking-lot lighting visibility: From elevated vantage points on Monterey Drive, 15-foot pole lights and headlights from the parking lot may be visible despite eight-foot perimeter wall.
4. Mechanical-unit parapet height: North and west parapets shorter than south and east; sound reflectance concerns due to building orientation relative to residential uphill.
5. Cumulative impact: Nighttime operations (ambulances, generator, air conditioning, parking activity) will converge in hours when neighbors expect quiet.
6. Communication breakdown: Promises of developer-neighbor liaison unfulfilled; residents felt unheard during design process.
7. Bias allegation: Applicant Pete Peters alleged that a planning-and-zoning member (who builds hospitals professionally) had potential economic conflict of interest with competing health-care providers; no evidence presented, allegation disputed by council.

Most compelling arguments:

• Nudi's location uphill from the facility gives her sight lines to mechanical equipment and parking-lot lighting that lower, downhill residents will not experience.
• Acoustic engineer admitted distance and ambient noise (from nearby streets/commerce) are primary mitigators; parapet design does not substantially reduce noise.
• Developer spent over a year in design iteration but failed to reconcile with immediate neighbor on wall alignment—suggesting fundamental communication gap.

Organized groups: None formally listed; residents coordinated informally. Larry Myers, a non-resident advocate, acted as de facto mediator on behalf of neighbors.

Support

Number of speakers for: 2 direct (Susan Henderson, Larry Myers); 10 written support cards.

Main themes:

1. Medical necessity: Fountain Hills lacks 24-hour emergency care; drive to off-site hospitals (20–25 minutes) is unacceptable for cardiac, traumatic, or pediatric emergencies.
2. Mental-health access: Henderson (SonderMind) highlighted partnership potential for on-site behavioral-health services available 24/7.
3. Small-facility appropriateness: 12,000 square feet is modest; not a competing threat to larger regional providers.
4. Noise compliance: Acoustic engineer testified all measured levels below 50 dB nighttime ordinance threshold; mechanical units exempted by code anyway if operating properly.
5. Fire-Station-2 precedent: Councilman Brown and others noted similar neighbor opposition to Fire Station 2 (relocated to Shea & Fountain Hills Boulevard) resulted in only one post-opening complaint (about bollard lights, resolved).
6. Design iteration: Applicant redesigned ambulance bay (added canopy, removed backing requirement), relocated ambulance signage, added landscape buffer—showed good-faith efforts.
7. Staff endorsement: John Wesley and planning-and-zoning commission (unanimous 5-0 vote with conditions) recommended approval.

Project Details

• Case number: Not explicitly stated in transcript.
• Applicant / developer: Dr. Zuma and Dr. Yardagada.
• Project manager / consultant: Pete Peters.
• Architect: Bob Quintana.
• Acoustic consultant: Tony Sola (Ray Law Firm engaged applicant, no conflict noted).
• Location / address: 9700 N. Saguaro Boulevard, at or near Trevino, near Shea Boulevard entry to town.
• APN (parcel number): Not stated in transcript.
• Current zoning → Proposed zoning: C1 (commercial, lowest-intensity retail zoning); no rezone required. Special use permit requested to allow 24-hour operation (11 p.m.–7 a.m.) on property already approved for daytime C1 uses.
• Site area: 5.74 acres (applicant applied for SUP for entire acreage, though Phase 1 is ~3.5 acres estimated).
• Facility size: 12,000 square feet (Phase 1: emergency room, urgent care, pharmacy, administrative, parking).
• Phase 2: Surgical operating rooms (no site plan; applicant stated may not require separate SUP if no overnight surgery).
• Mechanical equipment: 14 rooftop air-handling units (high-efficiency, variable-stage startup); temporary and permanent generators (backup power, emergency-only, rarely tested; permanent generator for pharmacy shielded per code).
• Parking: Primary lot (east side of building); ambulance bay (northeast corner, redesigned with canopy cover); total capacity not stated.
• Walls: 8-foot split-face and smooth block in bands (similar to Town Hall design) along property line; 7-foot wall at east parking lot to block light and noise. Existing 8-foot residential wall ~2–3 feet parallel in ~20-foot section.
• Lighting: 15-foot pole lights (LED, dark-sky compliant, louvered downward); wall-mounted 10-foot lights; parking-lot and emergency-exit lighting; main sign at Trevino/Saguaro corner; ambulance sign moved to south side (visibility limited to Trevino).
• Landscape: Row of 9–10 trees (sycamores, olives, 9–10 feet tall at planting) along property line to mature above 8-foot wall; planning-and-zoning recommended 6–9 additional trees of different species.
• Changes from previous version: Ambulance bay redesigned with extended canopy (eliminated backing requirement); ambulance signage relocated; generator addition (pharmacy); landscape plan revised (May 18 submittal added row of trees; further trees recommended).

Vote Breakdown

• Final tally: 5–1 (Approved).
• Yes: Councilman Brown, Councilman Magazine, Councilman Tolles, Councilman Spellman, Mayor Dickey.
• No: Councilwoman Lacrone.
• Abstentions / absences: Vice Mayor Charneau (no vote recorded; present for discussion).

Note: Individual votes not formally polled by name; council called a roll vote on the final motion, but transcript text does not parse individual vote calls beyond outcome tally.

Outcome & Next Steps

Approved with conditions:

1. Final set of drawings reflecting all design changes.
2. Landscape plan with 6–9 additional trees (minimum 10-foot height at planting) to fill gaps identified by staff.
3. Signage directing ambulance to exit left from ambulance bay (to prevent engine revving noise from backing maneuvers).
4. Site plan revision showing generators and their positions.
5. Additional sound attenuation if determined necessary upon post-completion assessment (included as precaution; acoustic study currently shows compliance).
6. Removed: Condition 8 (bollard lighting requirement); conditions 9 and 10 (post-construction sound study and wall mediation tied to town authority—applicant objected as cost-prohibitive and outside town jurisdiction on private-property wall disputes).
7. Retained: Administrative approval pathway for Phase 2 (when applicant submits site plan for surgical-operating-room addition, staff review sufficient; no second public hearing required unless conditions change). Two council motions to require Phase 2 public hearing (planning-and-zoning commission recommended this) failed 2–5.

Continuance / timing:

• Applicant to provide revised drawings within ~2 weeks (no deadline stated).
• Phase 2 site plan submission timeline not specified; applicant indicated surgical rooms may not require SUP if scheduled only daytime and no overnight procedures.
• Acoustic follow-up: no scheduled post-opening sound audit; existing town noise ordinance and MCSO equipment available for complaint investigation if resident files complaint.

Conditions attached:

• None additional beyond standard planning-and-zoning list.

What comes next:

• Building permit issuance and construction (Phase 1 already under way).
• Phase 2 planning (applicant to determine timing and whether SUP needed).
• Communication plan for Phase 2 outreach (Councilman Brown requested writing; applicant agreed to develop and submit to Wesley's office pre-planning-and-zoning).

Controversies & Context

Bias allegation: Applicant attorney Pete Peters alleged that a planning-and-zoning commission member (identified as a hospital builder by profession) may harbor economic bias against a new hospital due to Honor Health (a competing regional health system) affiliations. Peters characterized the concern as something applicants had "endured" through emails and phone calls. Councilwoman Lacrone rejected the allegation as "low" and "ludicrous on its face," noting the planning-and-zoning vote was unanimous (5–0) with the accused member voting yes. The allegation was not pursued further.

Communication breakdown: Multiple residents (Nudi, Myers) stated that promises of developer communication, neighbor meetings, and design accommodation were not fulfilled consistently. Peters acknowledged frustration and redirected all future communication to John Wesley's office (planning and development services) to formalize the channel. Councilman Brown requested a written communication plan for Phase 2 at least 60 days before submission to planning-and-zoning.

Resident vs. applicant dynamics: Applicant suggested threats and intimidation claims (no detail provided). Non-resident advocate Larry Myers, who had initially brokered the compromise deal with doctors and developer, expressed disappointment at how the process deteriorated but reaffirmed support for the SUP with conditions. Myers stated he had invested personal credibility with neighbors to back the project and was disheartened by characterizations of neighbors as obstructionist.

Bollard-lighting controversy: Planning-and-zoning recommended bollard lights (3-foot height) to reduce uphill light visibility. Applicant architect Bob Quintana countered that replacing 15 pole lights with 78 bollards would cost ~$78,000 (cost-prohibitive), create hazardous "inviting liability" (flagstaff and Sedona precedent litigation), and reduce safety/visibility in a commercial ambulance-parking zone. Engineer indemnification requirement noted. Councilman Brown sided with applicant, citing safety and practical precedent with pole lights in town. Council voted to remove bollard condition; applicant retains 15-foot pole lights.

Wall proximity unresolved: Applicant architect proposed that Nudi voluntarily remove her existing wall so the new hospital wall could be built on the property line and aligned. Nudi (through counsel) declined; applicant declined further negotiation, stating liability concerns and code requirement to build on property line. Issue remains a private matter; no town enforcement mechanism.

Sound-study post-completion: Councilman Spellman asked acoustic engineer Tony Sola to agree to post-construction measurement ($200–$400 estimated, possible night testing at double rate). Sola indicated willingness but noted ambient noise from nearby streets might complicate measurement. Councilman Brown opposed adding a condition requiring this, arguing it would set a bad precedent of town policing the developer and that existing noise-ordinance complaint procedures suffice. Amendment failed 2–5; no post-opening audit required.

Phase 2 administrative approval fight: The 5.74-acre site plan shows Phase 2 as future surgical operating-room addition, but no detailed site plan submitted. Planning-and-zoning split: some members concerned about future overnight surgery requiring SUP; others comfortable with administrative staff review if Phase 1 succeeds. Council voted 5–2 twice: (1) to retain administrative approval for Phase 2; (2) to reject amendment requiring Phase 2 public hearing. Councilwoman Lacrone and Councilman Magazine opposed administrative approval; Councilman Brown and others trusted staff and council intervention if Phase 2 proves problematic.

State preemption / fiscal note: None discussed.

Community sentiment: Written support cards (10) and in-person speakers (2) heavily favored approval. Organized opposition limited to Nudi and Myers (advocate); broader neighborhood sentiment not polled.

Duration

• This item (Medical Center SUP): ~90 minutes (from application presentation through vote; multiple speakers, technical testimony, extensive council discussion, two failed amendments).
• Total meeting: ~4.5 hours (opened with council reports, MCSO crime statistics ~45 min, consent agenda, medical-center SUP ~90 min, public-art donation ~20 min, public-art mayor's walk ~15 min, COVID small-business recovery ~30 min, commercial-vehicle parking ordinance ~20 min, public-art ordinance ~5 min, pedestrian-traffic-safety committee preview ~15 min, assorted public comment and roll calls).

Other Notable Items

Public Art Master Plan Ordinance 20-09: Council unanimously approved removal of public-art fee structure from zoning code Chapter 19, replacing with reference to the master plan to allow future fee amendments without re-codifying. Maintains flexibility for public-art commission to adjust fees based on future policy changes.

Copperwind Art Donation (Serpentine Pavilion): Council unanimously approved a 168,000-dollar functional art installation (rattlesnake-themed pavilion with bike racks, water station, trail maps, misting system, seating, LED lighting) on private Copperwind property. Applicant contributes cost in lieu of public-art fund donation; becomes part of town's public-art collection with 24-hour public access via hiking and biking trail. Public-art committee unanimously supported. Councilman Magazine expressed reservation about off-site public art but acknowledged trade-off: private developer funding relieves public fund burden.

Fountain of Light — Mayor's Walk Recognition: Council approved allocation of 50,000 dollars from the public-art fund (non-taxpayer source: developer contributions and donations) to incorporate plaques honoring past and future mayors into the base of the Fountain of Light sculpture (50th-anniversary commemorative piece, Avenue of the Fountains). Space for 27 mayors; currently 9 served. Public-art committee and artist present. Passed 6–0.

Small Business Recovery Program (COVID-19 Cares Act Funds): Council approved three sets of business relief: (1) automatic six-month extension of business licenses, waiving renewal fees (~53,000-dollar foregone revenue, not cost); (2) six-month extension of approved development permits (for contractors and homeowners delayed by pandemic); (3) temporary use permits for restaurant patio expansion (no cost to town, addresses social-distancing capacity loss). Additionally, council approved 300,000-dollar small-business grant program from 2.9 million-dollar Arizona Cares Act allocation (state-funded, not general-fund impact). Temporary-signage enforcement relaxation extended to Dec. 31, 2020 (amended from Sept. 1 per new sign ordinance). All measures passed unanimously.

Commercial Vehicle Parking Ordinance 20-12: Council unanimously approved ordinance allowing town to post no-parking signs in areas where commercial vehicles (semi-trucks, trailers, landscaping equipment) create safety and appearance concerns. Staff discretion on time-based restrictions (e.g., 6 p.m.–6 a.m., or 24/7). Addresses citizen complaint (Greg Gallucci) about overnight truck parking on neighborhood streets (colony-to-falcon corridor). Justin Weldy (Public Works Director) noted enforcement via MCSO and code enforcement tied to complaints; abandoned vehicles may be towed at owner expense. Councilman Tolles requested time-frame specification; staff agreed to refine by corridor. Passed unanimously.

MCSO Crime Statistics & Staffing: Captain Larry Kratzer presented January–May 2020 crime data (5 months year-to-date). Top calls: welfare checks, false alarms, motorist assists. Property crimes (theft, burglary) on pace to decrease from 2019. Traffic enforcement up (1,074 speeding stops in 5 months; on pace for ~1,760 for year, up 300+ from 2019). Councilman Shellstrom praised Public Works Director Justin Weldy's transparency and competence; Councilman Spellman requested monthly manpower-report addition to MCSO contract oversight. Vice Mayor Charneau requested inclusion of positive crime-trend data in town's quarterly newsletter (Insider).