The Sedona Planning and Zoning Commission approved a development review for the proposed Villas on Shelby 30-unit apartment complex on Tuesday, Nov. 5, after the applicant wept at one point in response to the commissioners’ comments during the discussion.

The complex, which is planned to be constructed on a city-owned parcel adjacent to Sedona Recycles, will be developed by MS Development Partners, based in Ohio. The City Council approved a development agreement for the property on May 28, allowing increased height and unrelieved building planes for the project in exchange for concessions on covered parking and other design alterations.

The complex would consist of a single three-story building containing 24 one-bedroom and six three-bedroom apartments. MS partner Bonnie Harbage described it as “a stackable product. Each floor replicates itself.”

“You could have anywhere up to 100 individuals living here,” Harbage said.

The plans show that the one-bedroom units will be laid out in narrow rectangles comparable to the footprint of an oversized shipping container, with main entrances opening almost directly into the bedrooms, large bathrooms and no separation between kitchen and living areas.

“The construction costs are about $15 million,” Harbage said, of which $6 million will be subsidized by a state low-income tax credit and $5 million will be subsidized by direct state funding. The city’s land lease with the developers will also give the city the ability to take over the project after a 30-year period.

“We’re hoping to close in December and start construction in January. We’re anticipating a 12- to 14-month construction timeline,” Harbage said. “We’re anticipating that this project will lease up immediately. We’re going to hold a lottery for eligible residents just because we believe the demand is going to be very high.”

“The rental incomes will be set at 60% of the Area Median Income,” Harbage added. She explained that they will use the Yavapai County median income for a four-person household as their baseline, “so we will be providing housing for residents that make between $34,860 and $49,800.” The one-bedroom units will be priced at $862 and the three-bedroom units at $1,188. At one point during the hearing, Harbage said that water, sewer and trash would be included in the rent, although she later said that tenants will “pay their own utilities” with a utility allowance involved.

Median individual income in Sedona is $33,284, or $62,901 for a household, according to the U.S. Census Bureau.

Commissioner Will Hirst asked if EV chargers would be included and Harbage replied that they had agreed to install those using city grant funding.

“I’m a little bit troubled by the fact that the City Council saw this and made a lot of decisions on this before the project existed, five, six months ago, so I’m not real happy about that,” Commissioner George Braam said. He also blamed himself for the fact “that we’re allowing a development … to be constructed with zero density guidelines really, really bothers me, and I think it sets a precedent for other properties like this.”

Planning Manager Cari Meyer said this was “probably” the highest-density project the current commission has seen.

“Everyone should have the same requirement for density. I don’t care if it’s affordable housing,” Braam said.

“Do you think there’s real need for a playground here with one-bedroom units … with Sunset Park right around the corner?” Braam asked.

“I think there’s some opportunity for there to be some children at the site,” Harbage said.

Braam also raised the possibility of future tenant complaints regarding noise and smells from the recycling center.

“Given the income and rent limits that we’re providing housing for … I would imagine that would be one of the least things they would be concerned about,” Harbage said.

“The aesthetics of this project do not excite me,” Braam said. “I can’t conceive any private development project that we’ve seen over the years having the aesthetic of this building. I feel like it’s very unattractive … looks like something I would have seen in the ’60s in Chicago for public housing.”

“If that is a concern, the [Community Focus Area] should be reevaluated,” Harbage said.

“It meets the Land Development Code requirements,” Meyer said.

“Are you abiding by the development agreement?” Vice Chairwoman Charlotte Hosseini asked. The agreement approved May 28 required groundbreaking to begin by Tuesday, Dec. 31.

“It will depend on when we can get our building permits approved,” Harbage said.

“What happens if something doesn’t happen by Dec. 31?” Hosseini said.

“City Council can amend the development agreement,” Meyer said. “I don’t think it would be that difficult to extend it by a month or two.”

“I think the construction schedule is insanely quick based on how I see things built here,” Braam said. “I’d be really shocked if we see it built in 2026.”

Commissioner Jo Martin suggested that a mural be placed on the wall separating the property from the adjacent storage facility before Chairwoman Kathy Levin read a series of comments from Commissioner Sarah Wiehl, who was absent.

“I was greatly disappointed with the project that has been presented to us,” Wiehl wrote. “To me, the project appears to be a cheap and basic type of accommodation, a low-grade motel.”

In her statement, Wiehl also complained about the design’s omission of stormwater capture, drip irrigation, rain sensors for irrigation, solar panels, Leadership in Energy and Environmental Design certification, low-volatile organic compound materials, graywater harvesting, constructing recycling and a dog park.

Wiehl is employed as a LEED consulting engineer in Los Angeles.

“That was very hurtful,” Harbage said, breaking into tears. “We’re providing high quality.”

“I think we all have some feelings that align with that to a certain extent,” Braam said in regard to Wiehl’s comments, and then proposed adding a dog park to the roof deck. “It would be great if the architect could take another swing at it.”

“It’s much better than the inside of a car,” Hirst said. “The majority approved the ‘Safe Place to Park’ on this council [sic], and I really think that having this moves us to where we expect to go from that.”

The city’s proposed “Safe Place to Park” car camp at the Sedona Cultural Park was soundly defeated in a ballot referendum in the Nov. 5 election, with 64% of Sedona voters opposed to the project.

Following the absence of any public comment, the commission approved the development review unanimously.