STAFF REPORT
TO: Planning & Zoning Commission Members
FROM: Planning Division Staff
REQUEST:Title
A Request for a Planned Development Rezone and General Development Plan of 1040 McCulloch Boulevard North, Metes and Bounds Parcel #107-15-015, 90.5 Acres, From Golf Course (G-C) District to Island Body Beach/Planned Development (I-B/PD) District to Accommodate a Mixed-Use Development With a Combination of Resort, Marina, Commercial, and Residential Uses and Approving Specific Requested Exceptions (Chris Gilbert)
Body
GENERAL INFORMATION:
***NOTE: THIS HEARING WILL IMMEDIATELY FOLLOW COMPLETION OF THE GENERAL PLAN AMENDMENT HEARING FOR THE SAME PROPERTY ***
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Application No.: |
25-4968 (PZ2025-000112) |
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Property Legal: |
Metes and Bounds Parcel ID#107-15-015 |
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Address: |
1040 McCulloch Blvd N. |
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Lot Size: |
Approximately 90.5 Acres per ALTA survey |
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Applicant: |
John Berry, Esq. of Berry Riddell |
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Owners: |
Island Land Venture, LLC |
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Staff Project Manager: |
Chris Gilbert |
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Current/Proposed Zoning: |
Vacant Land zoned Golf Course (G-C) to Island Body Beach Planned Development (I-B/PD) |
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Existing/Proposed Use: |
Vacant to Mixed Use Commercial-Residential-Resort |
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Proposed Number of Lots/Units: |
Approximately 300 residential units, 67,000 SF of commercial space, 25 garages, a 200-room resort and 15 resort villas |
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Density: |
Overall total unit density including multi-family dwellings but not garages, commercial, or the resort operated rental rooms and bungalows, is approximately 3.8 units per acre. |
OVERVIEW:
This staff report addresses the Planned Development Rezone and General Development Plan for the proposed Waterfront Development. This public hearing follows the Planning Commission’s review and action on a Major General Plan Amendment for the same property, submitted under a separate application.
HISTORICAL CONTEXT:
Pittsburg Point, now an island, was originally a peninsula extending into Lake Havasu, formed during the construction of Davis Dam in the 1930s. When Robert McCulloch founded Lake Havasu City in the early 1960s, the lake was full, and the peninsula was accessible by land. In the 1970s, McCulloch purchased the London Bridge, had it shipped from England, and reconstructed over a channel that was dug to separate the peninsula from the mainland creating the Island.
At that time, the Island housed remnants of a WWII-era training base, including an airport and limited residential development. Following the City’s incorporation in 1978, development gradually expanded to include RV parks, hotels, marinas, public parks, utility facilities, beaches, and commercial businesses. In the early 2000s, the former airport runway was redeveloped into gated residential communities, which continue to grow today.
The subject property is adjacent to the Islander RV Resort (west), Nautical Estates (west), Nautical Resort (east) and considerable frontage onto Lake Havasu on the southern and eastern sides.
PROPERTY BACKGROUND:
The subject property was previously owned by the State of Arizona and the site was operated as a golf course under a third-party lease until its closure in 2018 due to lack of viable operators. In 2023, the property was auctioned at the Mohave County Courthouse and sold to the current applicant for $24 million. The applicant was not the original petitioner but emerged as the winning bidder.
Over the next two years, the applicant assembled a team of experts to develop a comprehensive plan for the development of the property. Two neighborhood meetings were held in March 2025 at the Nautical Resort to present the initial concept to the community. Based on feedback, the applicant revised the plan and submitted it for a Major General Plan Amendment and Planned Development Rezone/General Development Plan.
Area Map, General Plan Map, Proposed General Plan Amendment Map from the previous public hearing and Existing Zoning Map for the property and surrounding area are attached. A map showing the requested zoning for the subject 90.5 acre parcel is attached.
PROJECT INTENT:
The letter of intent states the project is, “Creating a new hospitality anchored destination, the master planned community will include a resort with a range of amenities, resort villas, a variety of housing types, a neighborhood market, a gas station, and supporting retail uses. The master plan also includes public parking, public shoreline/beach access, and a public boat launch ramp. The community promotes walkability through the integration of meaningful open space throughout the community with a series of connecting parks and pocket parks resulting in approximately +/- 31.5 acres, or 34.6% of the community as open space.” The applicant’s Letter of Intent is attached.
SITE ANALYSIS:
The subject property consists of a single tract of land totaling approximately 90.5 Acres (ALTA Survey size) and being more properly described as follows by the Mohave County Assessor:
T13N R20W SEC 16, 21 & 22 WITH IPR PARCEL 107-00-001 SITUATED ON REVISED AREA 13 PITTSBURG POINT RECRE- ATIONAL AREA NAUTICAL INN BEG AT SE COR OF SEC 16; TH S38 DEG 01'58 E 1527.29' TO TPOB; TH N89 DEG 59'38 W 516.41'; TH N16 DEG 13'44 E 291.39'; TH N 09 DEG 11'58 W 425.71'; TH S80 DEG 34'00 W 733.40'; TH N00 DEG 00'22 E 120.13' TO SLY R/W MCCULLOCH BLVD; TH N89 DEG 59'38 W 334.36' TO THE B.C. W/ R=700'; TH WLY THRU C/A =60 DEG 44'44 L=742.15'; TH N29
This single-parcel property is in the southwesterly quadrant of the intersection of Beachcomber Boulevard and McCulloch Boulevard N. on the Island. The Nautical Resort is to the east, and the Islander Resort and Nautical Estates are to the west. The property has frontage onto Lake Havasu on the southern and eastern sides.
LAND USE CATEGORIES:
The subject property is currently designated as Open Space and Park (OSP) on the City’s Future Land Use Map. An application to amend this designation was reviewed prior to this hearing. The proposed amendment would reclassify the property into three distinct land use categories to allow the uses shown on the General Development Plan:
• Commercial Mixed Use (CMU)
• Resort Residential (RE-RES)
• Resort Related Island (RE-ISL)
Adjacent Land Use Categories:
• North: Designated as Resort Related Island (RE-ISL), developed with the Nautical Resort and a large marina.
• South and West: Designated as Resort Related Island (RE-ISL), developed with mobile home-style residences, storage units, and condominiums, most of which are leased from the State of Arizona.
ZONING:
The subject property is currently zoned Golf Course (GC), with Island Body Beach Planned Development (I-B/PD) to the north, Island Body Beach (I-B) to the southwest, General Commercial Planned Development (C-2/PD) to the west in addition to a small area of Multi-Family Residential (R-M).
UPDATED TRAFFIC, SEWER, WATER, AND DRAINAGE STUDIES:
The City’s Engineering staff reviewed the updated traffic, sewer, water, and drainage studies. Certain elements from these studies will be incorporated into the Development Agreement, which will be finalized following the General Plan and rezoning hearings when the project proceeds to City Council. A copy of the Traffic Statement is included as an attachment.
APPLICATION SUMMARY:
The applicant’s Letter of Intent requests to amend the City’s General Plan Future Land Use Map for the subject property from Open Space and Park (OSP) to Commercial Mixed Use (CMU), Resort Residential (RE-RES), and Resort Related Island (RE-ISL), that was addressed in the public hearing immediately preceding this hearing. It also requests a Planned Development rezone of the property, constituting this application, from Golf Course (G-C) to Island Body Beach/Planned Development (I-B/PD) to facilitate a 90.5-acre mixed use commercial-resort-residential development.
The proposed development features a marina, a full-service resort, and a commercial district totaling approximately 67,000 square feet of retail and service space. The residential component includes a mix of housing type such as single-family homes, townhomes, Resort villas, and apartments totaling approximately 300 units. This equates to an overall site density of approximately 3.8 units per acre, excluding the resort and commercial portions of the project.
Any General Development Plan approved in conjunction with the Planned Development Rezone must be substantially followed throughout the development process. While specific project details may vary, such changes would not necessarily constitute a substantial deviation from the plan. However, any major modifications require a formal General Development Plan Amendment and be subject to further review by the Planning Commission and City Council.
A copy of the proposed General Development Plan is attached.
GENERAL PLAN LAND USE DESIGNATION/CONFORMITY:
The General Plan Future Land Use Map designates the property as Open Space and Park, likely the result of having been a golf course when the 2016 General Plan was adopted. The three requested designations considered for a recommendation today in the prior public hearing by the Planning Commission will allow primary uses such as commercial in the Commercial Mixed Use portion, low- to high-density residential uses, including single family homes, townhouses, and apartments in the Resort Residential portion, and a resort with associated bungalows, parking and marina in the Resort Related Island portion. Secondary uses may include various incidental support services, boat rentals, garages and accessory structures. Public access easements along the main roadways and shoreline will be incorporated by the developer. The project will not include RV parks, manufactured home communities, or campgrounds.
The developer additionally provided an exhibit entitled “Project Goals” during the public hearing immediately preceding this hearing that explains how their team intends to meet many of the Goals and Objectives of the 2016 General Plan. Staff reviewed the proposed application against the General Plan Goals and Objectives that are quantifiable without assuming the developer addresses everything in the manner they state in their document, with the following General Plan Goals and Policies supporting the request:
GM.1.1.c - Service levels: Allow development in areas that can be reasonably serviced by police, fire, and emergency response services without negatively impacting service levels or increasing costs for current users.
GM.1.1.d - Infill and Redevelopment: Support infill development and the assemblage of small lots, redevelopment of underutilized properties or obsolete uses, the adaptive reuse of vacant structures for new uses, and the promotion of State Trust Land on the Island and adjacent to the perimeter of the originally platted area as a means to maintain a compact urban form and leverage the availability of existing services, utilities, transportation, and schools.
LU.1.1.b - Mix of housing options: Encourage a mix of housing options in Lake Havasu City, including detached and attached single-family, townhomes, apartments, and housing for special populations (e.g., elderly or disabled residents) as appropriate based on goals and policies for individual character areas within the City and the Future Land Use Plan map.
LU.1.1.c - Infill and redevelopment: Support infill development and the assemblage of small lots, redevelopment of underutilized properties or obsolete uses, and the adaptive reuse of vacant structures for new uses as means to maintain a compact urban form and leverage the availability of existing services, utilities, transportation, and schools.
LU.1.1.d - Mixed-use development: Encourage mixed-use development patterns (both vertically and horizontally mixed-use as appropriate given the surrounding development context) based on goals and policies for individual character areas within the City as a means to promote the efficient use of available land, increase the accessibility of goods and services, and support the revitalization of areas such as Downtown Lake Havasu and the Bridgewater Channel area.
HN.1.2.b - High-Density Development Standards: Recognize well-designed and constructed high-density development on appropriate sites as being a worthwhile addition to the community and tax base under conditions established in the General Plan and by zoning, subdivision, and other codes and ordinances.
HN.2.1.a - Mix of Housing Types: Encourage a mix of housing types, including detached and attached single-family, townhomes, apartments, and housing for special populations (e.g., elderly or disabled residents). Support a mix of lot sizes, densities, and housing prices and styles in locations designated for Medium or High Density Residential on the Future Land Use Plan map or as part of a larger planned development in accordance with City Standards and Ordinances.
HN.2.2.a - Location Efficient Development: Strongly encourage new residential development in locations that promote the efficient use of existing utilities; offer reasonable response times by police, fire, and emergency services; provide reasonable access to schools; offer neighborhood or community shopping options within ½ mile and 1-2 miles respectively; reduce the need for long auto trips; and encourage the use of alternative modes of transportation-walking, bicycling, and taking public transit (as available).
HN.2.2.c - Siting of Higher Density Uses: Locate higher-density residential uses near major roadway corridors to promote an efficient transportation system and prevent an excessive amount of vehicular traffic from using minor residential streets.
FINDINGS REQUIRED FOR PLANNED DEVELOPMENTS:
Section 14.05.04(L)(4)(a-h) of the Lake Havasu City Development Code requires eight findings be met before a Planned Development is approved. Those eight findings and Staff’s analysis of each finding is as follows:
a. The proposed development shall be consistent with and conform to the Lake Havasu City General Plan.
The proposed amendment is consistent with the maps and policies of the currently adopted General Plan amendment if the Major General Plan Amendment application heard previously to this hearing is ultimately approved by the City Council. The requested Major Amendment will be consistent with the uses shown on the General Development Plan if approved.
b. The exceptions from the standards of the underlying district are warranted by the design and amenities incorporated into the development plan and program.
As a mixed-use resort-anchored development, numerous amenities will be provided beyond the resort itself as stated on the Applicant’s Letter of Intent and quoted earlier in this staff report. All aspects of the proposed project will be required to meet all the requirements of the Development Code that are not approved as exceptions.
c. The proposal is in harmony with the surrounding area or its potential future use and incorporates unified or internally compatible architectural treatment.
Pittsburg Point (the Island) presently features an existing resort (The Nautical), condominiums, RV resort housing, and gated residential communities in the vicinity of the proposed project that will be compatible with the overall character of this proposed 90.5-acre development that will have its own internally compatible architectural theme. The developer has been and continues to work with the neighboring developments to address their concerns regarding buffers, building locations and heights.
d. The system of ownership and the means of developing, preserving, and maintaining open spaces is suitable.
The property owner retained a development team with the experience to execute the project, including provision and maintenance of open spaces and buffer zones around the development that provides amenities to the residents while also protecting the neighboring residential developments.
The developer has worked with the neighboring developments since the citizens’ meetings in April 2025 to adjust the Plan layout, and incorporated almost 37% open space into the overall plan.
Significant public feedback has focused on the importance of preserving meaningful shoreline access. In response, the developer has committed to maintaining the required 15-foot easement at the 450-foot elevation water line, ensuring continued public access for beaching watercraft and enjoying the shoreline. In addition, the project includes full public access to the beach area within the resort and to the boat launch ramp. The two existing lighthouses on the property will also be preserved in their current locations. These shoreline access features are illustrated in the attached Shoreline and Beach Access Plan.
e. The approval will have a beneficial effect on the area which could not be achieved under the primary planning designation for the area.
The subject property was previously a State of Arizona owned parcel leased as a golf course to a third party that maintained and operated it until 2018 that subsequently lay abandoned for 5 years when the state sold the property at auction when the state could not locate any new parties to continue the original use. It has severely degraded in appearance due to lack of maintenance. The proposed Plan is a comprehensive Plan for upgrading this entire 90.5 acre parcel that will include public infrastructure improvements, unified Architecture, public roadway easements, public shoreline access, and a public access beach and boat launch ramp.
f. The proposed development, or a unit thereof, can be substantially completed within 3 years from the date of approval.
The applicant intends to build the project in several phases that will take more than 3 years due to the sheer size of the project, covering 90.5 acres.
g. Adequate public facilities and services are available or are proposed to be made available in the construction of the project.
Adequate public facilities are either currently available or will be upgraded or added as part of this project and these issues shall be addressed prior to construction if this planned development rezone application is approved. Some of the items will be part of a Development Agreement the City Council will consider along with this item and the previous hearing item on the Major General Plan Amendment.
h. The general objectives of the PD district and the applicable objectives of the various categories of planned development have been met.
The proposed uses and the intent of the overall development meet the general objectives of the PD District as described in the Lake Havasu City Development Code. There are various requested exceptions to parts of the Development Code which are listed next in this report.
REQUESTED EXCEPTIONS:
The applicant request that the following exceptions from the Development Code standards be included in any recommendation regarding, or future ordinance approving, the rezoning, and the accompany General Development Plan:
EXCEPTION 1: The ‘Land Use Categories for Waterfront Planned Development’ to be applied to this development, in lieu of City Code Section 14.03.02, Table 3-1 'Permitted Use Table,' a copy of which is attached to this staff report and will be an Ordinance Exhibit. This will govern permitted, conditional, accessory, and temporary uses applicable to the proposed General Development Plan.
EXCEPTION 2: The ‘Dimensional Standards for Waterfront Planned Development’ to be applied to this development, in lieu of City Code Sections 14.02.05.G.1, Table 2-23 ‘I-B District Dimensional Standards Summary,’ and 14.04.01.A.3, Table 4.01-3 'Dimensional Standards for Special Districts,' a copy of which is attached to this staff report and will be an Ordinance Exhibit. This will govern dimensional standards applicable to this General Development Plan.
EXCEPTION 3: The maximum permitted fence/wall height at front, side and rear yard areas within the boundaries of the General Development Plan shall be set at a maximum height of eight (8) feet, superseding the height limitations set forth in City Code Section 14.04.04.G.1. Retaining walls are excluded from the measure of the maximum fence/wall height allowance.
EXCEPTION 4: Operating entry doors facing and visible from adjacent public or private streets, as outlined in City Code Section 14.04.07.C.4.a, shall not apply within the boundaries of the General Development Plan.
EXCEPTION 5: Lighting associated solely with the Resort component shall be exempt from the requirements of City Code Section 14.04.05.C.2 and associated fixtures are permitted to emit up to 1,600 lumens and may be unshielded if mounted below eight (8) feet in height. All lighting above this height, including building-mounted and parking lot fixtures, shall be fully shielded.
EXCEPTION 6: Up to ten (10) off-premise signs providing directions to the Resort component shall be permitted within the boundaries of the General Development Plan. These signs
shall be classified as “Directional/Instructional Signs” under City Code Section 14.04.08.D, Table 4.08-1 ‘Signs Exempt From Permit Requirements,’ and shall be exempt from the limitation that no more than 25% of the sign area may contain words or symbols identifying a business. One (1) sign may be up to twelve (12) square feet in area. These off-premise signs must be approved through a separate sign permit process.
CONCLUSION:
The proposed Planned Development Rezone and General Development Plan are in conformance with the goals and policies of the City’s General Plan if the Major Amendment considered in the previous hearing today is ultimately approved by the City Council on December 9, 2025. Staff finds that the request meets all requirements set forth in Section 14.05.04(K)(6) of the Lake Havasu City Development Code to approve this zone change with conditions of approval as listed in the Requirements for Code Compliance section below.
CITIZEN’S MEETING
Two Citizens’ Meeting Open Houses regarding this Planned Development Rezone and General Development Plan application were held at the Nautical Resort’s meeting hall, on March 19 and March 27, 2025. 131 interested persons attended the open houses which were previously advertised in the Lake Havasu newspaper to encourage attendance. The complete citizens meeting documentation is included as an attachment. The applicant also continued outreach to various persons and organizations after these two open houses and continues to do so during the public hearing process.
COMMENTS FROM OTHER REVIEWERS:
Internal and external reviewing agencies have approved this application for the requested Planned Development Rezone. The Development Agreement that will follow this public hearing when it goes before the City Council for review will further outline the responsibilities of all parties involved in the Waterfront Development as it relates to infrastructure.
ADDITIONAL REQUIRED ACTIONS:
This item will be presented at a public hearing before the City Council on Tuesday, January 13, 2026, in the City Council Chambers at 5:30 PM preceded by the public hearing for the requested Major General Plan Amendment of the subject property, and followed by consideration of the Development Agreement that will enumerate the specific responsibilities of the Developer as the site is improved.
REVISION: City Council Meeting date updated to January 13, 2026, from December 9, 2025. 12.02.2025
Building permits and compliance with all other aspects of the Building and Development Codes (not including granted exceptions), including all required off-site improvements and compliance with all issues addressed in the Development Agreement, will be required prior to issuance of Certificates of Occupancy for any buildings related to this Planned Development project.
ATTACHMENTS:
Area Map
General Plan Map
Requested General Plan Amendment Map
Existing Zoning Map
Proposed Zoning
Letter of Intent
Traffic Statement
Proposed General Development Plan
Proposed Shoreline and Beach Access Plan
Proposed Land Use Categories for Waterfront Planned Development Exception
Proposed Dimensional Standards for Waterfront Planned Development Exception
Neighborhood Meeting Invite and Citizens’ Meeting Open House Summary
SUGGESTED MOTION:Recommended Action
I move to recommend approval of Land Use Action No. 25-4968 to the City Council for a Planned Development Rezone and General Development Plan of 1040 McCulloch Boulevard North, from Golf Course District to Island Body Beach/Planned Development District to accommodate a mixed-use development with a combination of resort, marina, commercial, and residential uses and approving specific requested exceptions.