The Sedona City Council will have the chance to choose between two sizes for a new hotel development in Uptown on Tuesday, Aug. 13, when it considers a request from Dutchman’s Cove LLC, owned by the Stevenson family, developers of Ambiente Hotel, to revert zoning on six parcels adjacent to Oak Creek and the Sedona Arts Center that the Stevensons are purchasing from Axys Capital.

The parcels in question were originally zoned as general commercial, with the portions of the parcels lying on the east bank of Oak Creek being zoned RS-36 single-family residential. The City Council rezoned the parcels as planned development on June 23, 1998, and continued that planned development zoning with a revised site plan on Feb. 14, 2006. At that time, the property, planned for development as the Preserve at Oak Creek, was approved for up to 158 condominium units. The developer, Steve Cole, died in 2008 and the development schedule for the project subsequently expired in March 2010.

“[Arizona Revised Statute] §9-462.01(E) requires council to revert the zoning,” the Stevensons’ attorney, Steven W. Polk, wrote in the request for zoning reversion. “The Sedona Community Plan and the Uptown CFA have no legal effect on the city’s obligation to revert the zoning.”

Based on an allowance of six lodging units per parcel under general commercial zoning, the requested zoning reversion would allow a 36-unit hotel on the site, which “will be developed as Ambiente: Creekside.”

“The development will be subject to site plan review but not the Planning and Zoning Commission,” the request stated. “Because this is by-right zoning, the city is legally prohibited from requiring any exactments, such as a public park.”

Alternatively, the Stevensons have proposed that if the city prefers not to revert the zoning, they would be willing to enter into a development agreement with the city that would reserve five acres of the site for use as a public park in exchange for an increase in the number of allowed units to 50.

“The Sedona Community Plan highlights a park in this prime location as a crucial community goal,” the rezoning request stated. “It should be noted that the request for this public park was initiated by city staff … This is the city’s last opportunity to secure public access to Oak Creek … [otherwise] the property will be fully developed privately under by-right zoning, as previously outlined. This is a pivotal moment for Sedona … this represents the last undeveloped land where such access is feasible.”

Failure to revert the zoning, the request noted, “would trigger a diminution in value claim pursuant to ARS §12-1134 for the reduction in fair market value of the property … which would undoubtedly be pursued vigorously.”

The request stated that the amount of diminution in value would be calculated based on the current appraised value of the existing Ambiente Hotel, minus construction costs, which, according to Coconino County, is $18,157,516.

Council will consider the rezoning request at 4:30 p.m. on Tuesday, Aug. 13.