A City of Sedona budget work session last month revealed staff plans to use $18.9M to subsidize four planned apartment projects that will deliver 272 units to the local housing inventory.
The largest subsidy is set at $7.75M for Sunset Lofts, a 46-unit development that was initially approved in 2022. The subsidy was renegotiated last August and included a requirement that the developer had to begin construction by April 1 of this year. That deadline was missed, and the property is now being deeded back to the City.
The current estimated cost to build Sunset Lofts is $18.3M. So far, the City has loaned $1.98M for predevelopment, design and related expenses. Officials plan to bring back a proposal for continued development this month.
Another $6.37M has been set aside to subsidize a planned 96-unit development off Lem Drive with an estimated cost of $24.7M. The firm has not applied for a development review or building permits yet.
The City had not originally planned to subsidize a development planned on part of the Sedona Cultural Park, but plans have changed to include a $2.5M subsidy for a 100-unit development with an estimated cost of $25.75M.
Another $2.5M is planned for the 30-unit Villas on Shelby development, which has a total cost estimate of $13.5M.
In addition to these projects, philanthropists Basil and Mimi Maher are planning to build a 54-unit development at 60 Goodrow Lane. The pair has not requested a subsidy for the project, but they have asked for rezoning and a height variance to allow the project to proceed.
During the session, staff disclosed Sedona also expects to issue between 55 and 60 single-family permits in FY 2025. (Source)