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The original item was published from 9/16/2025 12:15:00 PM to 9/29/2025 9:40:14 AM.

News Flash

Town of Fountain Hills News

Posted on: September 16, 2025

[ARCHIVED] New Downtown Overlay District to Help Create Thriving Avenue of the Fountains

Ave of Fountains

Fountain Hills is on a path to a brighter, more exciting downtown area. With the Town Council’s approval of a new zoning overlay district, the dream of transforming the Avenue of the Fountains into a vibrant destination full of dining, shopping and entertainment is one step closer to becoming reality.

At its September 2nd meeting, the Council approved a new zoning designation that creates the Downtown Overlay District, a bold plan designed to bring more life, energy and opportunity to the heart of Fountain Hills. The highlight of the plan requires future ground-floor tenants along the Avenue of the Fountains to be, essentially, restaurants, retail shops or entertainment venues, ensuring this iconic street becomes a true hub of activity. Current tenants will not be impacted and will be “grandfathered in” under the new rules.

“This is about creating the kind of place our residents have been asking for—a vibrant downtown where you can eat, shop, and enjoy a fun evening out with family and friends,” said Economic Development Director Amanda Jacobs. “It’s an investment in our future and a step toward making downtown the go-to destination for our community.”

The Downtown Overlay District is a major step forward in carrying out the Council-approved Downtown Strategy, which aims to create a bustling Avenue of the Fountains that not only delivers more fun options for residents and visitors, but also supports local jobs and a stronger economy.

The new district includes three unique areas, each with a clear purpose:

  • Innovation District: Located north of Palisades Boulevard and south of La Montana Drive, this zone encourages forward-looking uses such as laboratories and light manufacturing.
  • Business District: Stretching south of Palisades Boulevard between Saguaro and La Montana, this area is geared toward offices and professional services.
  • Avenue District: Covering the Avenue of the Fountains and extending from Verde River Drive to Parkview Avenue, this district is designed to be the bustling core of downtown life, filled with retail, restaurants and entertainment.

While the Council has approved the zoning ordinance, more action is required before the new Downtown Overlay District officially takes effect. Town staff are processing the rezoning application to apply the new district to the downtown area. That still need to go to the Planning and Zoning Commission and ultimately, the Council, for approval. That could occur by the end of the year.

To read the approved ordinance in its entirety, you can do so by clicking here.

New Downtown Overlay

 

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