A DEEPER LOOK Western Gateway (aka the Cultural Park)

By Sylvia Sepielli

Sedona, AZ — The Master Plan dated July 2025 is a progress report of surveys, discussions, design options and assumptions.

https://plansedona.com/master-plan-july-2025-draft?document=1

If this were a private project looking for investors, underlying feasibility studies, fiscal and developmental requirements would be mandatory. The City of Sedona is the owner/developer, with debt on the property.

It also controls zoning, building codes, design review, approvals, oversees the Fiscal Budgets and City Funds, as well as determines the Master Developer and how parcels to individual developers will be sold. This closed-circuit control affects all residents for better or worse.

Fiscal year budget 2023 showed the City had approximately $38 million in outstanding excise tax revenue bonds. According to the RRNews* “The annual payments on the existing bonds are $6.8 million, and by the time they are paid off in 2042, they will have cost the city over $57 million.” The new Cultural Park bond $10 million issuance was said to increase the city’s debt by 26.8%. Based on the expected annual payment, the total cost of the bond issue will be in the range of $13.6 million.”

*https://www.redrocknews.com/2022/11/25/sedona-acquires-41-acres-plus-10m-in-debt-with-cultural-park-purchase/

Flexible conditions in the bonds, were initiated to prevent others from changing the guarantee to the USFS that 50% of the land be open to the public. It appears that flexibility enables the City to make that or other changes without such limitations.

INTENT

Current plan clearly shows a Housing Development with 430 units and new build community spaces consuming 29.4 of the 41 acres, leaving only 11.6 acres of “Natural Open Space”. I suggest this ratio be inverted.

Though worth considering, affordable housing on this complex site is a fallacy. Is the all-in development cost of the 11.4 acres containing 430 units known? How does that cost compare to flat parcels like The Dells?

MASTER DEVELOPMENT & PHASING (pgs 74- 76)

‘Master Developer oversees:

• Large-scale grading of development sites to ensure build-ready parcels.
• Construction of roadways and utilities funded through the Community Facilities District (CFD). Drainage improvements including wash modification to meet regulatory and environmental requirements.
• Opportunities to incorporate community benefits (community park, recreation center) within the mass grading plan.’

This section alone should give pause to anyone supporting the Plan. Even if utilities initially terminate at one point of each Block, the excavation and clearance of land will expose a large swath of the land.

Utilities’ cost – consider the recent 45% rate increase by Arizona Water Company. What’s next?

Please read the Key to Success section on pg 74. Can the City execute this in a fiscally responsible and timely manner? The City is known for its notoriously slow approach to design review and approval process. It can take years for an existing commercial building renovation, let alone an entire community with different developers.

Transfer of Development Rights

When the City purchased the Cultural Park in 2022, some thought it would possibly be protective stewards of the land. Housing was included either without fully understanding the complexities and incumbent costs of developing affordable housing on the land, or, despite it.

Timeline Trusting private developers to decide when or if to get involved, offers no indication of a schedule. After Phase One is complete, the land may linger as a construction site for years. The City should provide best/worst-case timelines.

FISCAL CONSIDERATION

• What will this project truly cost? Is there a financial analysis for funding, project costs, revenue, and operational projections?
• I recommend the City provide live, on-going access to all budgets & expenses of the Cultural Park. Millions of dollars can be spent before formal plans even begin.
• Third party cost estimates on all development aspects whether presumed to be City or private entities should be provided. Neither residents nor the City should approve plans without this knowledge.
• Sedona City Parks & Rec doesn’t have a segmented P&L statement to assess revenue & expenses of Posse Grounds Park. There is no way to understand this project’s financial burden, short or long term.
• Other real estate related City ventures are running over budget & schedule.
• City should operate only the park aspects of the development. Private/City agreements for Amphitheatre, Rec Center, Cultural buildings are recommended. Ever-increasing City staff requirements must be mitigated.

ENVIRONMENTAL IMPACT STUDIES

Comprehensive studies of the land, bio swales, flooding, wildlife, water usage & conservation, hard scape building & parking related climate effects are needed. The only study appears to be one that determined the site did not contain toxic materials.

The Plan refers to “abiding by requirements”. Until those requirements with incumbent costs and impact on this site are identified decisions cannot responsibly be made.

TAKE ACTION

Yavapai College Sedona

YC uses ancillary parking on Cultural Park land. Were those spaces taken into consideration on overall parking count?

A physical enrollment attendance and facility utilization of the Sedona Campus review is needed. Which facilities could become part of the Sedona Recreation & Cultural Park experience? This may reduce land use and new buildings

Take a hike

The Cultural Park is chained off with “No Trespassing” signs. Residents should walk the site to make informed decisions. Can Council and City employees provide guided tours?

No housing; sign petitions

Wells Fargo Sunday Market “Sedona Cultural Park Preservation Act” petition; visit https://sedonavotes.com/

“Save Sedona Arizona Cultural Park”  https://www.change.org/p/save-the-sedona-arizona-cultural-park?source_location=search

Editor’s Note: “Sylvia Sepielli is Founder and Principle of www.sylviaplannganddesign.com (SPAd LLC est. 1994). She has worked shoulder to shoulder with owners and developers on well over 50 new-build mixed use, hospitality, and spa/wellness projects around the globe. As Lead Concept & Facility Designer specializing in spa/wellness, her scope of work also includes guidance and impact on all aspects of a project, through all phases of concept and construction to opening and in many cases, staying involved until operations is financially stabilized. The process and predictability of spectacular success, or failure, of any complex endeavor depends, in large part on strategy and preparation from conception. Her insight and ability to quickly see red flags, or solid ground, has served her when determining which projects to pursue.”