Downtown Scottsdale short-term rental units seek municipal blessing

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A local LLC coined STR Ventures is seeking Scottsdale’s approval to remodel some downtown properties into short-term rental units, just a stone’s throw away from the municipal headquarters.

Thus far, the powers-that-be at the city have not recommended approval of the two applications, but the ultimate decision will come from the Scottsdale City Council Tuesday, Jan. 14.

STR Ventures McKnight and STR Ventures Main & 1st are two separate applications both seeking conversion of existing office and residential buildings into single dwelling units to be used as short-term rentals.

The owner of STR Ventures McKnight, 7531 E. McKnight Ave., is identified as Home Yield; while STR Ventures Main & 1st’s owner is identified as STR Ventures, LLC.

Arizona Corporation Commission records show John R. McKee Jr. linked to both entities.

Rose Law Group attorney Court Rich is also listed on both applications as the contact.

The Planning Commission recommended denial of STR Ventures McKnight with a 4-3 vote, and reportedly discussed the appropriateness of the rezoning of a property into a mixed-use district for the single dwelling use, pointing to the Old Town Scottsdale Character Area Plan, along with concerns about the operation and management of the unit as a short-term rental.

STR Ventures Main & 1st, which has identified addresses of 7505 E. Main St., and 7504 and 7510 E. First St., was originally continued by the Planning Commission after the denial of the first application.

On Nov. 13, the commission recommended denial with a 3-1 vote, again citing concerns with the operation of the proposed use and rezoning the properties into single dwelling units instead of a mixed-use development.

According to a city staff report, the recommendation is to deny both applications.

STR Ventures McKnight is seeking to convert a 7,539-square-foot site --- or 0.17-acre --- into the single unit.

The city staff report states several email messages in opposition of the application have been received, citing concerns with the change in land use.

Included in the city staff report are emails from residents and business owners both supporting and opposing the applications.

According to the application, the property can already be used as a vacation rental under the existing zoning, but the change removes an “unusual ground floor restriction,” which stipulates residential use is limited to 35% of the total ground floor.

STR Ventures Main & 1st seeks to convert:

  • 7505 E. Main St., lots 8 and 9: 0.56 acre;
  • 7504 E. First St., lot 10: 0.30 acre; and
  • 7510 E. First St., lot 11: 0.27 acre.

The lot 10 property at 7504 E. First St. seeks to have a second story added; all the other properties identify zero-to-minimal changes.

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