Flagstaff City Council Candidate Lori Matthews
Lori Matthews' Responses to the Flagstaff City Council Candidate Questionnaire 2026
Regulatory Relief: Flagstaff’s building codes and zoning processes can add significant time and expense to commercial projects. What specific zoning reforms or streamlining measures will you champion to reduce these burdens for local businesses?
LM: As a Flagstaff City Council member and candidate, I know firsthand that excessive time and cost in our zoning and permitting processes hurt local businesses, raise the price of goods and services, and discourage the commercial investment our community needs. My background as a commercial lender and business consultant has shown me how regulatory friction can kill viable projects before they ever break ground.
I will continue championing practical, targeted reforms that deliver faster, more predictable approvals while still protecting public safety and neighborhood character. One of the most effective ways I can help is by connecting businesses early with our Planning and Development Director, so they clearly understand the process and what it takes to do business in Flagstaff. Our director and her team are already making meaningful changes, and I will commit to working with the Chamber and its members to explain those improvements while advancing strong policy changes at the dais where needed.
Meaningful reform also requires sustained pressure through the City Manager’s office and on the dais. That means holding staff accountable and using the formal Future Agenda Item Request (FAIR) process the official mechanism for a Council member to initiate policy or process changes to place specific items on the agenda that address unnecessary burdens on commercial projects.
Regional Plan Realities: With the city implementing the voter-approved Flagstaff Regional Land Use Plan, how will you balance strict environmental and smart-growth goals with the pressing need for affordable workforce housing and commercial expansion?
LM: The regional plan serves as a road map for current and future councils when making decisions on rezoning annexation or major development. A more immediate pressure on affordable workforce housing and commercial expansion will come from building and energy code updates now under consideration outside the regional plan’s time frame. It remains unclear whether these changes will be adopted by current council or after the election.
Our Sustainability staff has presented four scenarios reflecting different levels of energy code updates to be added to the overall building code requirements. The formal request for approval is expected to be presented to council this fall. Most of the council have indicated support for the two most aggressive options. Once adopted, these updates will become mandatory standards rather than goals substantially limiting the council's ability to weigh their efforts on housing affordability.
Commercial projects should continue to meet reasonable performance standards for traffic, water, and neighborhood compatibility. We should not, however, layer on additional barriers that drive up costs or push businesses out of Flagstaff.
My continued priority is to ensure that any new code requirements are evaluated for their real-world impact on housing costs and small-business viability before they are locked in.
Employer-Assisted Housing: Would you support city incentives or public-private partnerships that make it easier for local employers to develop or subsidize housing for their own workforce?
LM: I have already been advocating for a stronger focus on workforce housing policies. Employer-assisted housing is a viable option and should be fully incorporated into the City’s overall strategy to address our workforce housing shortage.
The City currently offers incentives for builders to construct both affordable rental and homeownership units. During a recent meeting with our Planning and Development and Housing divisions about adding a dedicated workforce housing initiative, we confirmed that the existing Incentive Policy for Affordable Housing (IPAH) already provides incentives for homes serving buyers earning up to 150% of Area Median Income (AMI). For context, 150% AMI for a single person is approximately $114,000, while typical rental requirements are set at 80% AMI, or roughly $62,750 for a single person. There are a few issues to resolve in refining this approach, but I am optimistic that those adjustments will be made soon.
The current IPAH incentives include waivers of certain City fees and permit costs, resource protection reductions of up to 20%, density bonuses, flexible design standards, and related benefits. These tools are available to employers interested in developing housing for their own workforce.
I welcome conversations with Chamber members and major employers about how the city can best support employer-assisted housing models that keep workers living and spending in Flagstaff.
Minimum Wage Trajectory: Flagstaff's local minimum wage significantly exceeds the state standard, impacting low-margin industries like retail, hospitality, and dining. How do you plan to support small businesses navigating these high labor costs?
LM: The most direct support I can provide as a City Council member is to keep City budgets tight so that property taxes, utility rates, and other cost drivers do not rise further alongside future wage adjustments. I remain committed to being the voice of reason drawing on my background and expertise in finance especially when Council is asked to consider any proposed rate changes or tax increases. I have demonstrated this approach with the stormwater rate increases and the proposed water and sewer rate increases, always advocating for common-sense, evidence-based decisions which have resulted in special council meetings and vote changes at the dais that have favored our businesses.
I will also continue to engage with restaurant, retail, and hospitality owners to identify specific pain points and pursue workable solutions that help small businesses navigate the current wage structure while we work toward balanced long-term improvements. Flagstaff needs both workers who can afford to live here and entrepreneurs who can keep their doors open. My focus is practical, experience-based support that helps local businesses succeed under the existing wage framework.
I am particularly interested in hearing from businesses about operational relief measures such as permitting efficiency or targeted fee adjustments that can partially offset labor-cost pressures without reducing wages.
Tourism & Economic Diversity: While tourism initiatives drive significant revenue, economic volatility remains a concern. What concrete strategies will you pursue to attract high-wage, non-tourism industries (e.g., biotech, clean energy) to the region?
LM: The most direct impact I can make as a City Council member is to continue my efforts to ensure we have reasonable City fees, a streamlined permitting process, and an attractive housing market for the workforce those industries need. These are priorities I have worked on since the start of my first term.
I hear far too often of businesses that considered relocating operations to Flagstaff but were deterred by our reputation as a difficult place to do business, lengthy processing times, and the high cost of housing. Meaningful policy changes are unlikely unless a council member actively meets with local businesses and organizations such as the Chamber, ECoNA, realtor groups, and other employers to understand the obstacles they face.
I am committed to continuing those conversations and working to remove unnecessary friction so that Flagstaff can compete more effectively for employers that offer higher-wages and year-round jobs. At the same time, I will continue to advocate for our tourism businesses, which work hard every day to welcome more than 5.3 million visitors each year and generate an estimated $538 million-dollar in economic impact.
Commercial Property Tax & Utilities: High commercial utility rates and property valuations strain local operations. What is your strategy for keeping city-controlled fees and taxes predictable for business owners?
LM: Property valuations are set by the Coconino County Assessors, not the City. What the city controls, and where I focus my efforts, are the tax rates, utility rates, and fees that Flagstaff itself sets.
My strategy is straightforward: keep city budgets disciplined so we are not forced into repeated rate and fee increases that hit commercial operators. My background in commercial lending and business consulting has taught me that businesses need predictability more than almost anything else. Sudden or large jumps in water, sewer stormwater, or other City-controlled costs make it harder for local companies to plan, invest, and stay competitive.
I have already demonstrated this approach by scrutinizing propose water, sewer, and stormwater rate increases and pushing for evidence-based, phased adjustments rather than abrupt hikes.
Going forward, I will continue to insist on clear, analysis of the economic impact of any proposed fee or rate change before it reaches the dais, prioritize operational efficiencies and careful budgeting so that rate increases are not the default solution and support transparent multi-year rate planning so businesses can anticipate costs instead of reacting to them.
Public Safety Ballot Measures: Local businesses rely heavily on a safe, accessible environment for both customers and staff. What is your position on upcoming public safety infrastructure bonds, and how will you ensure transparent use of tax funds?
LM: I fully support both public safety ballot measures. The $40 million bond will be used for critical infrastructure as well as new and replacement of equipment and vehicles. The proposed sales tax increase for public safety, estimated to bring in about $18.2 million per year, will help the city support the ongoing operational needs of fire, police, wildland fire management, aircraft rescue firefighting, and emergency management.
Sadly, both measures, if passed, will simply bring us up to current needs and will not address the future growth of this community. More work will be required. I have started asking the tough, sometimes unpopular questions regarding some of our current budget allocations. There will be ongoing discussions over the coming months, with the hope of making meaningful changes to our budget where appropriate.
Regarding transparency, I have genuine concerns about the additional funds that will flow into the general fund from moving a portion of the secondary property tax rate to the primary tax rate for public safety. This change, which is occurring outside of the ballot initiatives, is expected to provide an estimated $740,000 annually to the general fund for public safety. Unlike the sales tax or bond measures, however, these funds do not carry the same restrictions. As a result, a future council could reallocate them to other priorities and divert them away from public safety. I have been advocating for a new policy to help protect these additional funds and reduce that future risk.
Transparency and accountability in how these funds are used will be essential to maintaining public and business confidence. Both the bond and the sales tax are restricted to public safety uses.
Transportation & Logistics: : Traffic congestion and winter road maintenance directly affect commercial logistics and customer access. How will you prioritize infrastructure spending to optimize traffic flow along major business corridors like Route 66 and Milton Road?
LM: Traffic congestion and reliable winter road maintenance are critical to commercial logistics and customer access along Flagstaff’s major business corridors. Route 66 is an ADOT roadway, so any significant infrastructure improvements require partnership with ADOT. The City has been advancing the interconnected Rio de Flag and Downtown Mile infrastructure projects for more than 25 years. Coordinating with ADOT and BNSF is a lengthy and complex process, and the timing of these projects is largely directed by those agencies.
Construction on the Downtown Mile, which includes the Milton Road underpass reconstruction and related improvements near City Hall is expected to begin next spring and will significantly affect traffic on Milton Road. Planning discussions are already underway to help mitigate the expected impacts. Operational matters such as winter road maintenance fall under city management rather than the Council, and the timing of approved infrastructure projects is not under the Council’s direct control. Most of our infrastructure projects are funded through grants tied to specific scopes of work.
As a Council member, I will continue working closely with our newly appointed City Manager to deliver the results our community needs while minimizing disruptions to traffic and accessibility. I will also continue to advocate for the prioritization of major business corridors so that commercial, logistics, and customer access remain reliable year-round.