Scottsdale City Council OKs STR Ventures pursuit despite Planning Commission denial

Old Town Scottsdale project combines properties for short-term rental business

By Melissa Rosequist
Twitter: @mrosequist_

Editor's Note: The Planning Commission recommended denial of the STR Ventures applications. The city staff report stated a recommended approach of denial due to the Planning Commission's position.  We appologize for any confusion this may have created. 

Two applications to convert properties in the Old Town Scottsdale area into short-term rental units has successfully passed elected leaders, despite recommended denial by Planning Commission.

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.

Scottsdale City Council approved both applications on Feb. 4, with a 6-1 vote. Councilmember Virginia Korte was the sole dissenting vote, but she did not provide any comments on her decision.

STR Ventures McKnight is located just east of City Hall at 7531 E. McKnight Ave., while STR Ventures Main & 1st has addresses of 7505 E. Main St., and 7504 and 7510 E. First St.

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

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.

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.

According to the city staff report, the recommended approach was to deny both applications due to the Planning Commission's position.

“The reason they are seeking a rezoning is for relief from a section of our downtown overlay that restricts dwelling units in the Type 2 area with a commercial-type zoning --- which would be that service residential type zoning,” said city planner Ben Moriarity during the council meeting.

“And, it restricts it to 35% of the first floor that can be used for a dwelling unit. The applicant would like to use the entire structure as one dwelling unit.”

Rose Law Group attorney, Court Rich, spoke on behalf of the applicant, laying out myriad stipulations agreed upon.

“We all know that short-term rentals are a hot issue on many levels, in the city and throughout the state. But what I want to impress upon you is I think this is the right way to do these,” Mr. Rich said. “It’s the right location, it’s the right way, and something I think hopefully at the end of this presentation you’ll understand it’s something where Scottsdale can point to this as how to do these.”

Mr. Rich pointed to support from surrounding properties, stating the applicants worked very hard with the only residential neighbor to come up with an agreement.

“First and foremost, you don’t see neighborhood support often for these, and we have that. I think this is probably the only vacation rental that has come to you, and tell you where they want to operate, how they want to operate,” Mr. Rich said.

“Usually they happen in a neighborhood and no one knows they’re there and you find out because you see someone you don’t know in your neighborhood. We’re trying to do it the right way --- we’re coming to you to ask for your approval.”

The operator has four other vacation rentals in the city, Mr. Rich said, and on his listing website he outlines no more than six adults are allowed.

In addition, the zoning sought by STR Ventures is already used by several other properties in the area, Mr. Rich pointed out.

“Where better to have tourists --- the Center for Performing Arts is within walking distance, the baseball field, the museum of art, Museum of the West, the greenbelt, entertainment district --- all the great restaurants and galleries and everything are right there within walking distance and we’re not in a residential area,” Mr. Rich said. “This is where you want people that want to come to our town to enjoy it, and to stay.”

The agreement with the residential neighbor includes noise control technology, a maximum occupancy, a 24/7 contact with a professional management company, a building height restriction, and restricting one unit per lot.

Additionally, no amplified music outdoors will be allowed outdoors after 10 p.m.

“We’ve worked really hard to give everything the neighbors wanted, to make sure they feel protected,” Mr. Rich said.