COUNCIL COMMUNICATION
TO: Honorable Mayor and City Council
FROM: Jeff Thuneman, Development Services Director
SUBJECT:Title
Discussion and Action: Ordinance No. 26-1376 Approving the 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; Specific Requested Exceptions; and Development Agreement Island Land Venture, LLC (Chris Gilbert)
Body
FUNDING SOURCE:
N/A
PURPOSE:
To consider adopting an ordinance approving a Planned Development Rezone, General Development Plan, Certain Exceptions and a Development Agreement to Permit an approximate 90-acre mixed use commercial, residential, and resort development on Pittsburg Point, also known as the Island, on property formerly used as a golf course that now lies abandoned.
BACKGROUND:
***NOTE: THIS HEARING WILL IMMEDIATELY FOLLOW COMPLETION OF THE MAJOR GENERAL PLAN AMENDMENT HEARING FOR THE SAME PROPERTY ***
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Application No.: |
25-5057 (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, and a 200-room resort with related accessory uses |
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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. |
This staff report addresses the Planned Development Rezone, General Development Plan, and Development Agreement for the proposed Waterfront Development. This public hearing follows the City Council’s review and action on a Major General Plan Amendment for the same property, submitted under a separate application.
The subject property is adjacent to the Islander RV Resort (west), Nautical Estates (west), Nautical Resort (east) and frontage onto Lake Havasu on the southern and eastern sides.
HISTORICAL CONTEXT:
Pittsburg Point, now an island, was originally a peninsula extending into Lake Havasu, formed during the construction of Parker Dam in the 1930s. When Robert McCulloch started developing what would later be incorporated as 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.
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 by the State of Arizona 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 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 also 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, and supporting retail uses. The master plan also includes public parking, public shoreline/beach access, a public boat launch ramp and almost 3 miles of public trails and paths. 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 will be heard by the City Council 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 (the Nautical Estates development) of Multi-Family Residential (R-M).
TRAFFIC, SEWER, WATER, AND DRAINAGE STUDIES:
The City’s Engineering staff reviewed the traffic, sewer, water, and drainage studies. Certain elements from these studies will be incorporated into the Development Agreement, which is an attachment to this staff report and constitutes a legally binding agreement between Lake Havasu City and Island Land Venture, LLC. This agreement specifies each Party’s responsibilities regarding private roadways, water, sewer and drainage facilities and development operations. A copy of the Traffic Statement is also included as a separate 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 will be 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 in the prior public hearing by the City Council 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 was 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 in 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 March 2025 to adjust the Plan layout and incorporated 35% open space into the overall plan.
Significant public feedback has emphasized the importance of preserving meaningful shoreline access. In response, the developer has committed to maintaining the required minimum 15-foot access and preservation easement, with a 100-foot average, along the lake frontage at the 450-foot elevation water line, ensuring continued public access for beaching watercraft and enjoying the shoreline. The project also provides full public access to the resort’s beach area and the boat launch ramp, with these rights secured through public access easements during the platting stages of development.
Additionally, the two existing lighthouses on the property will 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 it was eventually abandoned. It has severely degraded over the ensuing years in appearance due to lack of maintenance. The state sold the property at auction after they received a property sale application. The proposed Plan is a multi-faceted 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 are part of the attached Development Agreement that is part of the considered approval of this rezoning application following the public hearing.
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 requests 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. Following the Planning Commission Hearing, the applicant requested staff to remove from the list of permitted uses for the commercial area of the project the following three listed uses: “Gas Station w/Fuel Sales”, “Bar and Nightclub”, and “Shooting Range” (intended to be similar indoor facilities to the ones in Downtown area). These uses have been removed from the Proposed Land Use Categories for Waterfront Planned Development attachment to this report.
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. Following the Planning Commission hearing, the applicant requested to reduce the maximum height permitted for the commercial component of the development plan from 48 feet to 40 feet to be more consistent with the Island Body Beach base height allowance of 40 feet.
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.
EXCEPTION 7: At the Planning Commission hearing on December 3, 2025, there was considerable discussion among members of the Nautical Estates Condominium Association regarding the appropriate boundary buffer between the Waterfront project and their property. Following these conversations, it was determined that a blanket exception to Development Code Section 14.04.04.F, “Property Edge Buffering”, would be the most effective way to address the issue.
The only portion of the Waterfront project that requires a perimeter buffer is the boundary adjacent to Nautical Estates, as that property is zoned Multiple Family/Planned Development (R-M/PD). All other surrounding properties share the Island Body Beach zoning designation, which is also the zoning requested by the applicant.
The Developer and the Nautical Estates Homeowners Association continue to work collaboratively on a mutually acceptable solution. With the Waterfront project proposing a landscaped, multi-acre park along this shared boundary, and with the blanket exception in place, the City will defer to whatever agreement is ultimately reached between the two parties.
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 by the City Council is approved. 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 rezone planned development.
The Planning and Zoning Commission voted 7-0 to recommend approval at its December 3, 2025, meeting.
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 before the Planning Commission and City Council.
COMMENTS FROM OTHER REVIEWERS:
Internal and external reviewing agencies have approved this application for the requested Planned Development Rezone. The attached Development Agreement will further outline the responsibilities of all parties involved in the Waterfront Development as it relates to infrastructure.
CODE COMPLIANCE:
The following are the conditions necessary to be compliant with the City’s Development Code:
1. The property shall substantially match the General Development Plan, as determined by the Zoning Administrator. (Following the Planning Commission hearing, the applicant requested to increase the shoreline access and preservation easement from a uniform 15-foot width to an average width of 100 feet, with no portion less than 15 feet. The expanded easement would encompass approximately 14 acres of the property’s total 90.50 acres.)
2. To enter into a Development Agreement with the City addressing necessary public infrastructure improvements, including water, sewer, and streets, necessary for this development.
3. Building Permits and Design Review for compliance with City Codes shall be required prior to any construction commencing on the subject property.
DEVELOPMENT AGREEMENT:
Lake Havasu City and Island Land Venture, LLC are considering a Development Agreement for the proposed 90.5-acre mixed-use project that would include residential, multi-family, commercial, garages, a marina, and a resort. The draft Agreement sets forth responsibilities for installing and dedicating water and wastewater infrastructure, maintaining private roadways and drainage systems, and ensuring compliance with City codes. To address public impacts, Island Land Venture, LLC would provide a financial contribution toward traffic and infrastructure improvements, construct a 12-inch water main extension along McCulloch Boulevard North, and build a new sewer lift station to replace the existing Nautical Lift Station, with the City sharing in upsizing costs. All occupied structures within the development would be required to include fire sprinkler systems.
COMMUNITY IMPACT:
The proposed development will add another quality entertainment/resort property with related open space, boating, housing and commercial amenities to the City, thereby continuing the promotion of Lake Havasu City as a premier destination.
FISCAL IMPACT:
Improvements to the property may increase the assessed valuation and the City may receive additional property tax revenue.
ATTACHMENTS:
Ordinance No. 26-1376
Exhibits A, B, and C
Area Map
General Plan Map
Requested General Plan Amendment Map
Existing Zoning Map
Proposed Zoning Amendment Map
Letter of Intent
Waterfront Development Agreement
Traffic Statement
Proposed General Development Plan
Proposed Shoreline and Beach Access Plan Map
Proposed Land Use Categories Exception
Proposed Dimensional Standards Exception
Neighborhood Meeting Report
SUGGESTED MOTION:Recommended Action
I move to adopt Ordinance No. 26-1376 approving the Planned Development Rezone and General Development Plan of 1040 McCulloch Boulevard North, from Golf Course (G-C) District to Island Body Beach/Planned Development District to accommodate a Mixed-Use Development with a combination of resort, marina, commercial, and residential uses; specific requested exceptions; and Development Agreement Island Land Venture, LLC.