Payson Town Council Regular Meeting - March 11, 2026
Payson Town Council Regular Meeting - March 11, 2026
The Payson Town Council held a regular meeting on March 11, 2026, starting at 4:02 PM and adjourning at 6:22 PM. Mayor Stephen Otto presided with Vice Mayor Susan "Suzy" Tubbs and Council Members Jim Ferris, Brett Flaherty, and Scott Nossek present. Council Members Charlie Bell and Dallin Haws were absent. The meeting covered a liquor license approval, a development agreement for affordable housing, an economic development update, and executive sessions.
Consent Calendar
- Minutes Approval: Approved minutes for the February 25, 2026 regular council meeting (5-0 vote).
Public Comments & Testimony
- Darlene Younker DeLage asked about design guidelines and parameters for the proposed Woda Cooper development (Agenda Item F.1).
- Robert Herschberger, representing the Rim Country Housing Coalition, spoke in favor of Item F.1, urging support for affordable housing options for local workers.
- Brook Myers proposed that the town hold monthly project status meetings to provide public updates on RFPs, milestones, and budgets, aiming to foster trust and transparency.
- Jeff Robbins requested Mayor Otto remove a personal social media post and asked the council to place the Highway 87 right-turn lane project on a future agenda for public discussion. Mayor Otto responded that the post was a conversation starter and did not endorse condemning McDonald’s; Town Manager Darren Coldwell clarified the project is an Arizona Department of Transportation initiative, not a town project.
Discussion Items
- E.1 – Fargo’s Steakhouse Liquor License: Town Clerk Tracie Bailey reported on the Series 012 Restaurant Liquor License application. Mayor Otto opened a public hearing; no public comments were received. The council approved the license (5-0 vote).
- F.1 – Resolution 2026-010 / Woda Cooper Development Agreement: Economic Development Coordinator Julie Leonard introduced Woda Cooper Companies representatives Joe McCabe and Omer Sarig. The project proposes a 74-unit affordable housing complex on Highway 260, financed largely through Low-Income Housing Tax Credits (LIHTC). Woda Cooper requested a $100,000 below-market loan (3% interest, 15-year term) and a $50,000 fee waiver to gain state points. They emphasized their track record as a developer/owner-operator, commitment to 50-year affordability, and willingness to adjust architectural design. Public comment from Paul Edwards (Rim Country Housing Coalition and Payson United Methodist Church) supported the project as needed workforce housing. Council questions covered tenant income limits (60% of Area Median Income, $32,100 for single person), tenant eligibility (no Section 8, renters must income-qualify), local purchasing, and the fact that only one LIHTC award is possible per county. The council approved Resolution 2026-010 (5-0 vote).
- H.1 – Economic Development Update: Director Gregg Martinez reported on four focus areas: job creation, revenue generation, community communication, and quality of life. His team has revamped adventurepayson.com, formed working subgroups (e.g., the 87/260 corridor subcommittee with Camp Verde), and conducted tourism advertising during the Olympics (nearly 1 million impressions on a $5,000 buy). Martinez noted the need for industrial land and potential biomass-related industries to support U.S. Forest Service thinning efforts. He also highlighted the importance of retaining existing businesses and building relationships with SRP and the local tribe. Council discussed the challenge of recruiting non-hospitality industry and the lack of available M2 zoned land.
- H.2 & H.3 – Executive Sessions: The council voted to recess into executive session (5-0) to discuss the South Green Valley Parkway Memorandum of Agreement (A.R.S. 38-431.03(A)(2),(3),(4)) and the Dudley v. Town of Payson litigation (A.R.S. 38-431.03(A)(3),(4)). The meeting recessed at 5:27 PM and reconvened at 6:20 PM.
- H.4 – South Green Valley Parkway MOA: The council approved the Memorandum of Agreement between the U.S. Forest Service, Tonto National Forest, and the Arizona State Historic Preservation Officer (5-0 vote).
- H.5 – Direction on Dudley v. Town of Payson: The council voted to direct the Town Attorney, outside counsel, and staff to proceed as discussed in executive session (5-0 vote).
Key Outcomes
- Liquor License Approved: Series 012 for Fargo’s Steakhouse (5-0).
- Resolution 2026-010 Approved: Authorizing the Mayor to execute a development agreement with Woda Cooper Development, Inc., including a $100,000 loan and $50,000 fee waiver contingent on LIHTC award (5-0).
- Memorandum of Agreement Approved: For the South Green Valley Parkway Project with USFS and SHPO (5-0).
- Legal Direction Given: Staff instructed to proceed on Dudley v. Town of Payson as discussed in executive session (5-0).
- No Action on Public Requests: Jeff Robbins’ request to place Highway 87 turn-lane project on a future agenda was noted but not formally decided.
Meeting Transcript
Okay. Are you ready? Call this meeting of the common council of the town of Payson, regular meeting to order March eleventh, twenty twenty-six. Invocation. Is Lori here? Oh, there she is. Invocation, please. Dear Heavenly Father, we just thank you for all the many blessings we have in Payson. We just appreciate being able to live in this community and being able to live in this country. We ask that we look to you for guidance and that you your will be done in Jesus' name. Amen. When called to speak, please approach the podium, speak towards the microphone so your statement can be heard. Give your name, the town requests you address your comments to the council as a whole. If you're speaking on an agenda item at today's meeting and I call you up ahead of time, uh please signify that you'd rather wait for the agenda item, and I will call you at that time. Like I said, the purpose of this meeting is to conduct town business. Raise your hand and you'll be acknowledged. I'll ask if anyone's on Zoom that wants to speak, and uh we'll go from there. Uh your courtesy and respect are appreciated. The town thanks you for coming to this meeting and sharing your thoughts with the council. So deige Mr. Mayor and Council, thank you for allowing me to uh speak today. Um it is actually about one of your agenda items, but I just wanted a broad statement about it, and it's about um F1, which is the uh resolution to uh enter into an agreement with Woda Cooper for a 74 unit uh apartment building. I guess it's gonna be right across the street over here where the Verizon uh sits. Um I looked at at the documents that were sent out to you, and I am in favor of us providing these this kind of housing, and it looks like a lot of their projects have done really really well. I'm assuming that they have been vetted very well by the town. Um if not I would uh urge you to to do that because we have talked about that before about making sure that our projects are kept up to date and still look nice 10, 15, 20 years from now. Um, my main concern is the design. I don't know if the design that they sent that was on the one sheet that about this project, if that was what they have in mind of doing, and it's a lovely building, but not here in Payson. It's kind of another um county building. It's a little too modern, a little too uh downtown Phoenix looking, at least in my opinion. I think that we're uh striving to maintain a maintain and reattain a sort of mountain western look. So I'm hoping that with new projects that come online that the town building department uh is um that we have some kind of guidelines along along that so that our new projects that are built uh will fit into that kind of uh recording stopped. So anyway, um that was what my concern is, and I hope that um that that will be taken into consideration. Uh, I will be reaching out to one or more of you just to find out um what kind of um parameters are put on these kind of projects as far as the design goes. Thank you for your time. Thank you. Robert Hirschberger. Mayor and Council. Uh yes, I am Robert Hirschberger. I'm here, I'm part of the Rim Country Affordable Housing Coalition. We're trying our very best to find good affordable housing here in town to support our workers. I think that this proposal that you're considering today will do a lot to have that happen if they are approved by the state as one of the very few that get some assistance to provide the affordable housing. So I would urge you to do all that you can in terms of writing letters to support this one and the previous one. Uh, if we make a case to the state that we are kind of desperate to have people come here to work and to live, and they cannot do it now because they can't find affordable housing. Maybe our case will be heard and we will get another grant and have it in favor of us instead of going somewhere else in the state. So I just urge you to give that positive consideration. Do all you can to encourage the state to provide funding for it or the previous one that you've approved. So thank you very much. Thanks, Bob. Thank you.
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