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Developer
seeks help from city By
Ginger D. Richardson The
Arizona Republic
Phoenix
has agreed to negotiate with a
group of developers that wants to build a massive $900 million
mixed-use project across three square blocks on the southern
end of downtown.
The proposed high-rise development, which would include
Patriots
Square
Park
, contains four towers, about 1,200 condominium units and up
to 100,000 square feet for a public plaza.
It would also include a 150-room boutique hotel and retail and
office space.
If it's
successful, the ambitious proposal would be the largest
infusion of private dollars in burgeoning downtown
Phoenix
.
The problem is, the developers don't think they can make it
work without
Phoenix
's help.
Neither city economic development officials nor the project's
backers would be specific about what
Phoenix
might have to do, or give, to make the deal happen. But talks
could focus on everything from city-supported parking to tax
subsidies.
Deputy City Manager David Krietor said negotiations would
probably take place for at least the next couple of months.
"We'll have to see what would make good business sense
for them, and for the city of
Phoenix
," Krietor said.
The project, known as CityScape, is the brainchild of
Scottsdale-based RED Development, which has completed retail
developments in the Midwest and Southwest; Donald Cardon, a
developer and former
Phoenix
deputy housing director; and Barron Collier Cos., a Naples,
Fla.-based developer that owns the
Collier
Center
in downtown
Phoenix
.
CityScape, at full-build out, has the potential to change the
face of downtown
Phoenix
's southern section.
The land on which it would sit is largely vacant or
underutilized. The project would be bordered by
Washington Street
on the north,
Jefferson Street
on the south,
Second Street
on the
east and First Avenue
on the west.
Officials are confident that despite its ambitious scope it
will be successful.
They acknowledge that they are banking that an influx of new
energy, residents and students from other major downtown
projects, such as the new
Arizona
State
University
campus, will help support it. But they say that the early
response has been positive.
"What we hear is, 'It's about time, we are glad it's
happening,' " said John Bacon, a RED spokesman.
"That's from people in the community."
Portions of the project could open as early as 2008,
developers say. The timing is key, because that's when the
first phase of light-rail comes online, the city's $600
million plus expansion of the
Phoenix
Convention Center
will be complete, and when the second, and much larger, phase
of the ASU campus opens.
A key barometer of the project's success is likely to be the
retail component.
Downtown
Phoenix
has been a challenging market for such development. The
Arizona
Center
, for example, has struggled since opening in 1990, and
traditional mall developers have avoided downtown.
But Bacon said CityScape hopes to have the one thing that has
eluded downtown
Phoenix
: a true grocery store.
"Everyone has said that there needs to be a grocery store
downtown," Bacon said. "And we agree with that. It's
going to be the key."
Other options include restaurant space and traditional
shopping venues, he said.
The project's plans are still very conceptual, city officials
said. But it's likely that much of the public open space would
be on
Patriots
Square
Park
.
The CityScape development has the backing of Mayor Phil
Gordon, and most of the City Council, although some members
were quick to say that they would not be in favor of giving
too much assistance to the deal without having some concrete
indication of how it would benefit the city.
The developer has told the city that the project would create
2,900 jobs and generate about $215 million in tax revenues
during the project's construction and first 20 years of
operation, Krietor said.
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