Apache Junction Planning Commission narrowly approves 166-unit rental community rezoning with equestrian accommodations
APACHE JUNCTION, ARIZONA — November 24, 2021

Apache Junction Planning Commission narrowly approves 166-unit rental community rezoning with equestrian accommodations

Planning Commission narrowly approved (4-3) 166-unit rental community rezoning with significant design concessions and equestrian accommodations despite substantial neighborhood opposition over traffic, rural character, and density concerns.

Keystone Homes' 166-Unit Rental Project Narrowly Clears Planning Commission Despite Equestrian and Traffic Concerns

The Apache Junction Planning and Zoning Commission voted 4–3 on November 23, 2021, to recommend approval of a controversial 14.77-acre rental residential community at the southwest corner of Superstition Boulevard and Royal Palm Road. Case P-21-73-PZ, which Keystone Homes requested to rezone from RSGR (general rural low-density residential) to RM-2/PD (high-density multi-family planned development), has divided the commission and mobilized the surrounding horse-ranching community. The project represents a flashpoint between the city's general plan vision for a downtown mixed-use development corridor and neighborhood desire to preserve rural character and low density.

The vote split reveals the commission's internal struggle: Commissioners Barker, Gage, Begeman, and Peter Heck supported approval; Commissioners Cantwell, Darryl Cross, and Vice Chair Hinshey opposed. The narrow margin underscores unresolved concerns about traffic methodology, sewer and water infrastructure capacity, and the appropriateness of placing high-density development at the periphery rather than nearer to the downtown core.

Key Speeches

"We know that the city is very interested in pushing to get services, entertainment, everything in the downtown area, and we know that again to have that good economic policy you have to have a good housing policy, and we believe that what we are doing in this kind of unique location helps kind of set the cornerstone of what the interplay is on that hard line that's been drawn in the general plan down Royal Palm Road." — Brennan Ray, attorney for Keystone Homes

"I'm not sure which way I'm going to go yet, but I do appreciate the changes that the developers have made, understanding the nature that this is fitting in next to a rural community and that is always going to be a subject of future contention." — Commissioner Cantwell, reflecting on design concessions

"I would be very comfortable with having sort of a transition from our regular rural, low-density housing into a more dense housing situation. Now the developer has presented a very good idea. I like it. I don't think it's in the right place." — Commissioner Begeman, supporting the concept but questioning the location

"My wife just asked me to move. I've been in AJ since '84. I don't want to leave AJ, but my wife just asked me to move." — Ken Bradley, resident at 635 North Royal Palm Road, describing the impact of anticipated change

Timeline

Opposition

Number of speakers: 5 speakers directly opposed (Brenda McAllister, Patricia Wanzek, Ken Bradley, Casey Bradley, and Commissioner Begeman reading a Facebook message from Jules Fritz and Bill Cook).

Main concerns:

  1. Traffic impact underestimated: Two-day October traffic count insufficient; seasonal adjustment factor of 1.0 (Scottsdale baseline) inappropriate for Apache Junction, which peaks after Christmas and in January, not October. Concerns about traffic diversion to Royal Palm Road, Old West Highway, and Tomahawk, creating cut-through traffic through residential neighborhoods.

  2. Loss of rural character and wildlife: Existing great owls, coyotes, and road runners will be displaced. Open space will become developed. One speaker asked directly whether the city wants to become "Gilbert or Chandler."

  3. Home value decline: Properties on acre-and-a-quarter lots will depreciate adjacent to 166 rental units. One homeowner (Brenda McAllister) stated: "My home value is going to drop considerably."

  4. Water and sewer infrastructure deficiency: City already has water shortage; two homes on Scenic Street lack city sewer and water. Extending sewer and water will fuel further development without demonstrated capacity planning.

  5. Density and density design: 166 units on 14.77 acres (11.07 units/acre) is incompatible with surrounding low-density horse ranches. Concerns about unfamiliar residents trespassing on adjacent horse properties, forcing ranches to install keypad entry and become "like the zoo." Inquiry whether homes could have occupancy limits or whether property might become government-subsidized.

  6. Traffic study methodology challenged: Commissioner Gage stated the study counted only two days in October (12th–13th) and failed to account for holiday and seasonal peaks. Questioned whether 85 cars in morning peak (one hour, 7–9 a.m.) represented true weekday demand and whether multi-family ITE standards (0.5–0.6 peaking factor) apply to single-family rentals. Commissioner Cantwell noted Apache Junction's 75% October baseline versus Scottsdale's 100%, implying underestimation.

  7. Lack of downtown master plan: Commission acknowledged the general plan designates the area as "downtown mixed-use" but the city has never adopted a specific downtown master plan defining appropriate uses, heights, densities, and transitions. One commissioner stated this makes every rezoning a de novo negotiation rather than implementing a clear vision.

Organized groups: Circle C Stables (horse boarding facility across Royal Palm Road) and east-side ranch owners; no formal neighborhood association named, but residents coordinated attendance.

Most compelling arguments:

Support

Number of speakers: 5 speakers in favor (Wayne Barker, developer and property owner; Steve Byfield, Chamber of Commerce chair; Tim Sheehan, AJ Apartments owner; and two commissioners supporting approval).

Main arguments:

  1. Compliance with adopted general plan and public mandate: The general plan downtown mixed-use designation and allowed density (minimum 13, maximum 40 units/acre) were approved by Apache Junction voters by approximately 70% majority. The proposal at 11.07 units/acre is at the low end of allowable density. Commissioners Barker and Peter Heck emphasized that a city council cannot unilaterally override voter-approved planning; the rezoning implements the public's decision.

  2. Economic necessity for retail and services: Apache Junction depends entirely on sales tax for police, library, fire, and roads. Existing restaurants and shops struggle in summer when snowbirds depart. Year-round residents are necessary to support commercial development and diversify the tax base. Chamber of Commerce noted that businesses considering Apache Junction have declined to locate without a critical residential mass.

  3. Affordable housing and downsizing market: Custom homes north of the site sell for $800,000–$840,000, pricing out local workers and retirees downsizing from larger properties. Multi-family rentals address this market gap. Tim Sheehan noted his parents, in their 70s, seek to downsize and would benefit from a rental community without yard maintenance.

  4. Developer concessions unprecedented: Wayne Barker, a local developer, testified he had "never seen a developer step up above and beyond what any builder" he had encountered since joining the commission. Brennan Ray eliminated two-story homes, closed Royal Palm egress, added 10-foot decomposed-granite multi-use trails for horses, installed horse-crossing signage, and proposed tenant disclosures. These represent significant design sacrifices to address horse-community concerns.

  5. Traffic impact modest: Don Cartier presented ITE multi-family standards showing only 3% traffic increase on Superstition Boulevard, with most traffic dispersing west to Apache Trail and south to Idaho Road. Level-of-service analysis showed a "B" rating (15 seconds or less delay) at the primary intersection—acceptable performance. Traffic volumes are distributed throughout the day rather than concentrated in a single peak hour, as with single-family development.

  6. Alternative is worse: Without careful mixed-use development, the land will be subdivided into four or five custom homes per acre, creating higher-density sprawl and similar or greater traffic. Alternatively, the property could remain vacant or become an eyesore. The current proposal is a quality infill project compatible with downtown vision.

  7. Horse community accommodation: Unlike typical multi-family projects, the developer engaged the horse community, proposed horse-crossing flashing signals, ramps connecting to ranch roads, decorative split-rail fencing, and hitching posts. Tenant disclosures acknowledge odors and noise from livestock. This level of engagement with surrounding agrarian uses is rare.

Project Details

Vote Breakdown

Outcome & Next Steps

The Planning and Zoning Commission voted to recommend approval of Case P-21-73-PZ to the Apache Junction City Council, with conditions. The recommended approval modifies the staff report as follows:

  1. Site plan date: Changed from July 22, 2021, to October 28, 2021, reflecting the most recent revised design.
  2. Two-story homes: Deleted reference to two-story homes; development is now single-story only (per applicant preference, though staff had recommended retaining two-story option).
  3. Royal Palm egress: Reference to resident ingress/egress on Royal Palm Road struck; emergency access gate (crash gate) is the only means of secondary egress.
  4. Additional conditions: Conditions 12–13 (tenant disclosures and lease acknowledgments regarding proximity to horse ranches) added as requested by applicant.
  5. New condition 14: "All multi-use trails shall be maintained in a clean and orderly manner" (addressing concerns about horse deposits and trail upkeep).

The project will be heard by the Apache Junction City Council on December 7, 2021. City Council may approve, deny, or modify the commission's recommendation. Staff planner Nick Leftwich indicated that sewer and water infrastructure connections are feasible; the applicant will extend the sewer main from scenic and Winchester northward via Royal Palm to the site. Water service details were not fully specified in the transcript.

The developer has committed to:

Controversies & Context

General plan and voter mandate: Apache Junction residents approved a general plan approximately two years before this hearing (circa 2019–2020) that designated a downtown mixed-use development area encompassing the subject property. The plan calls for densities between 13 and 40 dwelling units per acre in the downtown zone. However, the city has never adopted a specific downtown master plan detailing form, transitions, and allowable uses. This creates friction: the general plan gives the property mixed-use zoning authority, but residents and some commissioners feel the city lacks a coherent vision for what "downtown" should look like. Director Larry Ortega noted at the meeting that Arizona Revised Statutes allow for "specific plans" (overlay codes with form-based requirements) that could guide downtown development more precisely than the current general plan.

Periphery location tension: The most consistent criticism from opponents and even sympathetic commissioners is that the project is located at the downtown area's far northeastern edge, adjacent to large horse ranches and low-density rural properties. Commissioner Begeman stated: "If this was put someplace else closer down to Fry's, closer down to Old West Highway, I would be 100 percent in favor of this right now." Commissioner Gage noted that approving this project will likely fuel further development west of Royal Palm Road (as sewer and water infrastructure will now be available), potentially creating a chain of medium-to-high-density development that was not anticipated. The developer and commissioners did not identify a clearly superior alternative location within the downtown-designated area.

Traffic study credibility: The most technically contested aspect of the application is the traffic impact analysis. Don Cartier's study was based on two days of October traffic counts (October 12–13, 2021) and used ITE multi-family standards (0.5–0.6 peak-hour peaking factor) applied to single-family rental homes. Multiple commissioners and residents raised concerns:

Despite these concerns, the traffic engineer's conclusion—that proposed development does not exceed level-of-service thresholds and that the 3% increase is modest—was accepted by the commission's supporting majority. However, commissioners noted that the study does not account for traffic diversion to alternate routes (e.g., Royal Palm to Old West Highway, or through Tomahawk to avoid congestion at Superstition/Apache Trail roundabout), which could strain secondary streets outside the city's direct control (some segments are ADOT-managed state routes).

Water and sewer capacity: Brenda McAllister and other residents raised concerns about water scarcity and sewer capacity. Apache Junction experiences chronic water challenges; the city depends on Colorado River Compact allocations and Central Arizona Project water. Two residents (Brenda McAllister and Patricia Wanzek) on the southern edge of the property lack city sewer and water service. The applicant will extend sewer from Scenic and Winchester northward, but the transcript does not detail water source or capacity analysis. Staff did not provide detailed infrastructure impact statements. This remains an unresolved concern, particularly given that extending sewer and water infrastructure will enable further development in the area.

Horse community and equestrian accommodations: The developer's proposed multi-use trail network, horse-crossing signage, and flashing signal are described by Commissioner Gage and others as unprecedented accommodations for an adjacent equestrian community. However, concerns remain about:

Economic and demographic change: Supporters (Chamber of Commerce, local developers, property owners) emphasized the city's economic dependence on sales tax and year-round residents to support retail. Opponents countered that affordability and livability (rural character, open space, equestrian lifestyle) were reasons they chose Apache Junction. Ken and Casey Bradley, 15-year residents on Royal Palm Road, expressed reluctance to leave Apache Junction but frustration that their lifestyle—horse ranching, rural quiet, mountain views—is being replaced by rental apartment-style density. Peter Heck noted that he has owned horse property with a trailer park next door and did not experience value decline, but this observation does not address the current residents' concerns about cumulative transformation.

Fiscal reality: Commissioner Barker emphasized that Apache Junction relies almost entirely on sales tax and lacks property tax or other revenue sources. Without year-round residents and commercial anchors, the city cannot fund police, library, and road maintenance. This fiscal dependence was cited as a key reason the general plan designated a downtown growth corridor. However, opponents argue this forces growth onto rural periphery neighborhoods to solve a city-wide fiscal problem.

Duration

Other Notable Items

Director's report on specific plans: Larry Ortega presented an informational overview of Arizona Revised Statutes Title 9, which authorizes municipalities to adopt "specific plans" as detailed overlays to the general plan. A specific plan can include form-based codes, precise density and height limitations, and detailed design standards. Ortega noted that Apache Junction has never adopted a downtown master plan or specific plan and suggested this may be a mechanism to more clearly guide future downtown development. The commission did not take action, but the report underscores the commission's acknowledgment that the current general plan is insufficiently detailed to prevent contentious rezoning negotiations.