The planned Alkemista Meadery at the intersection of State Route 89A and Goodrow Lane in West Sedona will be able to move forward after the Planning and Zoning Commission unanimously approved a time extension to the project’s development review on May 20.

Delays by city staff caused the project to lose its financing last year, the applicant stated.

The meadery’s development review was initially approved by the commission on June 6, 2023, and the Sedona City Council approved a development agreement with the project on June 11, 2024. Building permits for the meadery were issued on Aug. 4, 2024; extension of the development review time period will allow further permits to be issued as needed without the appli cant being required to restart the review process.

“They’re proposing a phased approach to this,” Senior Planner Gary Leikness told the commission. “They want to construct building number one, they want to start it in July of this year and finish it by 2027, July. So two years. Then they jump to building four as labeled on the site plan, they want to start that in August 2027 and finish that up about a year later as well. Building three, they want to start that in August of 2028, finish that less than a year later in 2029, and then building number two, May of 2029 and finish that by December of that year. This is their new approach, which is better, because if they run into issues with timing, this, if approved, gives us the guidance what we can keep continuing moving forward.”

“We had funding for all this to be started last year, and our funding, our loan, expired sometime, I think, the second week of June,” developer Sergio Goma said on why the project had been delayed. “We were trying to get the city to approve us conditionally to allow us to start with the work, but we weren’t able to get them to give us any kind of permit to start the work. The bank needed proof that we had started the work before they canceled the loan. So we got the permits, actually, maybe seven days later — after both loans expired. We had the whole project funded, and that was the main issue. We weren’t able to get an extension for 10 days from the city in order to get those. And we were saying that that day is going to come, and our loans will be canceled, and we will have to extend and phase out the project because the interest rates just tripled overnight. In those conditions, it was just unfeasbile to fund the project. The intent of phasing it out in this way is that we are watching the interest rates going down — in order to get them.”

“This proposal amends the condition of approval of the original plan, which sets out a phased approach, which is allowable in the land development code,” Leikness explained. “Rather than just a straight ‘we want a two year plan extension,’ this is actually amending the old plan.”

“By phasing, it actually gives us better control over the construction of the buildings,” Community Development Director Steve Mertes said. “Here we actually have a control where every year they’re going to start a new building.”

“It’s a pretty long time frame, but okay,” Vice Chairwoman Charlotte Hosseini said.

Commissioner Sarah Weihl asked if the first building for could be opened before the remainder of the project, and Planning Manager Cari Meyer said it would be allowed, as each building would require a separate permit.

The commission then approved the time extension in a 6-0 vote.