City Moves to Acquire West Sedona Lot While Offloading 401 Jordan Property

The Sedona City Council has entered the property market with the potential purchase of a 1.8-acre commercial parcel from the Dahya Revocable Family Trust of California. The property, located at 2411 State Route 89A adjacent to Builders’ First Source, is priced at $1.99 million, with an additional estimated $25,000 in closing costs. This initiative began on January 28, and given the city’s housing reserves are allocated to other projects, funding for the purchase would need to come from the Ranger-Brewer roundabout project budget.

Housing Manager Jeanne Blum indicated that this parcel could be well-suited for a Low-Income Housing Tax Credit (LIHTC) project, potentially supporting 36 to 40 housing units. Although Blum noted initial assessments suggested the property was suitable for development, she acknowledged the existence of a blanket easement that might complicate matters. City Attorney Kurt Christianson clarified that this easement, linked to utility poles, may have expired, allowing for further development without interference.

As the city seeks developers interested in the site, a request for proposals will be open until January 30. If the council approves the purchase, closing is expected by February 25. Council discussions addressed whether commercial spaces could be incorporated into the project. Blum confirmed the possibility but indicated that separate financing would be required for any commercial elements.

Discussions also highlighted financial implications, comparing the costs between 4% and 9% LIHTC funding. Depending on the funding chosen, city contributions could range significantly—from approximately $200,000 to upwards of $2.5 million. Proposed rents for the new units are projected between $35,000 to $40,000, while the median individual income in Sedona is around $33,284.

Community Development Director Steve Mertes mentioned that the Land Development Code would permit structures of two stories, with the option for up to three if designated for affordable housing. Different council members expressed varying opinions on the necessity of commercial space in the area. Councilman Derek Pfaff expressed skepticism about adding more commercial spaces, while Councilman Pete Furman suggested that a mix could enhance the community.

Councilwoman Melissa Dunn emphasized the possibility of accommodating taller buildings without obstructing views, while Councilman Brian Fultz voiced concerns about rushing decisions due to potential changes in funding opportunities. Ultimately, the council unanimously approved the purchase of the property and, shortly thereafter, voted to sell another city property at 401 Jordan Street to the Sedona Fire District for a new Uptown station.

Christianson confirmed that the fire district’s appraisal set the fair market value for the property and noted that the district requested an extended due diligence period, postponing the proposed closing to June 1. The city and the fire district are also expected to review plans for relocating electric vehicle chargers currently at the site.