San Luis seeks to boost commercial growth via rezoning

The San Luis city government has initiated a plan to stimulate commercial growth along Cesar Chavez Boulevard by rezoning approximately 29.8 acres between 4th and 6th avenues. The City Council has given initial approval to change the land-use designation from Neighborhood Commercial (C1) to Community Commercial (C2), a move intended to attract more diverse investors and flexible business uses.

Economic Development Director Armando Esparza stated that the rezoning supports a request to the Arizona State Land Department to auction approximately 40 acres of state-owned land within the corridor. If approved, the auction could occur in 8 to 12 months. The development aligns with ongoing improvement and expansion projects for the boulevard.

The initiative aims to address a significant loss of local revenue. A study by consulting firm Goman and York found that San Luis residents spend approximately $55 million annually at businesses outside the city. By expanding the local commercial offering—including potential restaurants, hotels, and pharmacies—the city estimates it could generate roughly $3.2 million in annual municipal sales tax revenue.