Tempe Development Review Commission Meeting - December 13, 2022

The Development Review Commission (DRC) met on December 13, 2022, beginning at approximately 6:00 p.m. (local time) to conduct a study session, approve minutes, and hear a contested use permit request for a vehicle rental business. The main hearing focused on UCARS, a long-term vehicle leasing company operating without a required use permit, which had generated numerous complaints from neighboring businesses and residents due to overflow parking on Smith Road. After public testimony and deliberation, the commission approved the use permit with modified hours but retained the strict parking condition requiring all vehicles to be kept onsite or in designated storage lots.

Consent Calendar

• Approval of Minutes (November 8, 2022): The minutes from both the study session and regular meeting of November 8, 2022, were approved with one minor clarification. The vote was 4-0-3 (four in favor, three abstentions from commissioners not present at those meetings).
• Consent Agenda Items: The following items were approved unanimously (7–0) on a single vote:
  • Item 3: Development Plan Review for a 13,489 sq. ft. addition to the Scottsdale Police & Fire Training Facility at 911 N. Stadem Drive.
  • Item 4: Development Plan Review for three single-story industrial buildings totaling 689,109 sq. ft. at OMP Tempe Industrial Park (1480 N. McClintock Drive).
  • Item 5: Use Permit to allow one required parking space within the front yard setback for the Wilson Residence (217 E. Tulane Drive).
  • Item 6: Use Permit (height increase to 38 ft.) and Development Plan Review for a 68,454 sq. ft. industrial warehouse at Alameda Industrial (1107 W. Alameda Drive).
  • Item 7: Use Permit to allow massage therapy at YW Relaxation (5000 S. Arizona Mills Circle, #108).
  • Item 9: Zoning Map Amendment, Planned Area Development, and Development Plan Review for a six-story mixed-use development with 343 dwelling units and commercial use at Rio & McClintock (1801 E. Rio Salado Parkway).

Public Comments & Testimony

Written Comments (read by Staff):

• Ruben Salise (Peterson Air Care, Tempe): Expressed concerns that UCARS employees disregard traffic laws, causing loud cars, racing, honking, and unsafe street crossings. He urged denial of the permit or requiring a properly sized location.
• Michael Urata (AH AHR Mechanical): Described dangerous conditions from parked vehicles narrowing Smith Road, obstructing visibility at driveways, and reported frequent deliveries blocking the street. He opposed the permit, stating UCARS would continue to violate rules.

Oral Testimony:

• James Farrington (owner of Tempe Crane, 32 years, Phoenix resident, owns property adjacent to UCARS): Stated he built his property under city rules and never parks on the street. He described UCARS vehicles parked on both sides of Smith Road and extending onto 5th Street, blocking access for his large vehicles. He noted UCARS staff promise to move cars but fail to do so. He urged denial, calling the situation “absurd.”
• Robert Johnson (property manager for 625 S. Smith Road, Gilbert resident): Expressed skepticism about UCARS’ ability to keep parking on the west side only, based on past experience. He noted complaints return within 24 hours after engaging management. He highlighted safety concerns: parked cars at driveways make it impossible to see traffic. He pointed out the site can only accommodate 23 cars on the west side (per applicant’s analysis) while the applicant cited up to 97 total vehicles. He stated UCARS is already over capacity and asked for a concrete timeline, not an open-ended request.

Discussion Items

Item 8 – UCARS Use Permit (640 S. Smith Road)

• Applicant Presentation (Eric Foss, attorney): UCARS leases vehicles to rideshare drivers (Uber/Lyft) on long-term leases (~8 weeks). Fleet exceeds 400 vehicles; daily on-site count ranges from 60–90 cars. The company has grown rapidly and outgrown on-site parking (36 spaces, requires 31 per code). Overflow parking on Smith Road has caused neighbor complaints. UCARS has leased 40 storage spaces at Mako (adjacent property) but still sees about 37 cars on the street. They proposed two modifications to staff’s recommended conditions:
  • Condition 3 (Business Hours): Change from 9 a.m.–5 p.m. to 9 a.m.–7 p.m. to allow time to porter cars to/from storage lots.
  • Condition 4 (Parking): Remove the requirement that “all vehicles generated from the businesses shall be kept on site in parking areas or other designated storage lots at all times” and instead allow parking on the west side of Smith Road (an estimated 23 spaces) and in front of the business (5 spaces) until bike lanes are installed (6–18 months).
• Staff Presentation (Lily Drosos, Planner): The site is 35,190 sq. ft. with a 9,405 sq. ft. building. Combined uses (UCARS and an auto repair shop) require 31 parking spaces; 36 are provided on site. In the past year, UCARS received four code violations (three closed; one active for operating without a use permit). Complaints came from code compliance, police, fire, and engineering/transportation departments regarding safety hazards from street parking. Staff recommended approval with conditions including a return to the DRC on March 14, 2023, for compliance review.
• Commission Discussion:
  • Commissioners questioned feasibility of on-site parking expansion (e.g., paving retention area, tandem or valet parking). Staff noted site plan review would be needed.
  • The applicant explained the challenge of finding screened storage lots due to city code requiring 6-ft. block walls for vehicle storage, limiting options.
  • Commissioner Spears asked about the consequence of denial: if no use permit, UCARS must cease operations at that location.
  • The applicant acknowledged the company’s failure to obtain the permit initially but said they are working diligently to find a solution.
• Staff Clarification on Screening Requirements: Director Jeff Tamilevich explained that fleet vehicle storage in General Industrial requires a 6-ft. screen wall, unlike retail parking (3-ft. walls). Chain-link fencing is not permitted. Some existing lots may be grandfathered.

Key Outcomes

• Motion and Vote: Commissioner Linda Spears moved to approve item 8 with Condition 3 modified to extend hours to 7 p.m., but with Condition 4 unchanged (all vehicles must be kept on site or in designated storage lots). Vice Chair Andrew Johnson seconded. The motion carried 5–2 (Commissioners Michelle Schwartz and Joe Forte dissenting).
• Next Steps: UCARS must return to the DRC on March 14, 2023, for a compliance review. The 14-day appeal period begins December 13, 2022. The city will proceed with installing no-parking signs on Smith Road at the request of other businesses (not in front of UCARS).
• Other Announcements: Commissioner Forte announced a Keep Tempe Beautiful cleanup at Hayden Butte on Saturday, December 17, 2022, at 8 a.m. The meeting adjourned with holiday wishes.