Tempe Development Thread

[combusean]

^ Desert Schools is building a large branch across from their headquarters on Washington St.

[exit2lef]

Originally Posted by mwadswor

Not to turn this into a political discussion but you sort of set yourself up with the last question. Bank bailouts by both the Bush and Obama administrations have taught large companies that there is no risk in their business. America has decided they are too large to fail, so they are expanding even though there is no money because the government won't let them go out of business even if they make bad decisions.

Or at least that's my theory. I don't see any smaller banks or credit unions on your list of those expanding seemingly senselessly.

Good point about political decisions insulating banks from risk. What still mystifies me, however, is where the customers for these bank branches are coming from. I do so much of my banking online and via ATM that I venture into a bank branch only once or twice a year for a special need like a cashier's check, and I can't imagine I'm the only one. I wonder if a lot of visible branches is just thought of as a way for a bank to market its brand.

[Leo the Dog]

Wells Fargo profit up 60% in 3rd quarter. $2.6 Billion in PROFIT in 3rd quarter alone. I think these banks can afford to open branches.

http://www.cnbc.com/id/33411195

[mwadswor]

http://phoenix.bizjournals.com/phoen...9/daily78.html

City council members annoyed by lack of communication from developers
Phoenix Business Journal - by Mike Sunnucks and Jan Buchholz
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Jim Poulin/Phoenix Business Journal
The Centerpoint condo high-rise is in Chapter 7 bankruptcy and sits unfinished on Mill Avenue in Tempe.
View Larger Some Valley city council members are frustrated with the lack of updates they are getting from real estate developers regarding projects tabled by the market crash and recession.

A slew of construction projects have fallen short of expectations, and council members across the Valley are giving developers and their lawyers mixed reviews on keeping their respective cities updated.

“No, no, no, no, no,” Tempe City Councilman Ben Arredondo said when asked whether he’s been kept up to date on the status of stalled projects -- including the Tempe Centerpoint condo high-rise, which is in Chapter 7 bankruptcy and sits unfinished on Mill Avenue.

Arredondo said he’s not getting frequent or detailed enough updates on Centerpoint or other projects. He said developers -- especially those in distressed situations, such as Centerpoint -- aren’t giving Valley cities straight answers on their projects.

“I don’t think they are ever going to give us the bottom line,” Arredondo said.

Developers and their various lawyers aren’t specifically obligated to keep cities updated on their projects, but some city council members are worried about the status of delayed or abandoned developments and how they might hurt short- and long-term economic development.

Centerpoint developer Ken Losch did not respond to requests for comment.

Centerpoint is not the Valley’s only distressed real estate development. The Hotel Monroe redevelopment in downtown Phoenix sits empty and boarded up. Downtown condos such as 44 Monroe and the Summit at Copper Square are mostly empty, and a significant number of suburban subdivisions and commercial developments are unfinished or delayed because of lack of demand and financing.

“I think that everyone is cautious and holding close to the vest. This goes beyond the developers, as end-users are placing projects on hold,” said Surprise City Councilman John Williams. “That said, I believe much of the information shared is often one-sided and biased and may not reflect the exact state of our economic recovery.”

Valley cities signed off on scores of retail, condo, single-home and commercial projects during the real estate boom. Now, many of those projects are on the back burner.

“Many of (the planned projects) look foolish in hindsight, but most looked really good at the time,” said Phoenix City Councilman Tom Simplot.

Chandler spokesman David Bigos said Jeff Cline, developer of the abandoned Elevation Chandler mixed-use condo project, has not kept in touch with the city. That project, near Chandler Fashion Center, is in Chapter 11 bankruptcy. A bungled foreclosure auction has complicated the court’s disposition of the project.

“Elevation Chandler has been very difficult for our city. We’d like to see a solution to this stalled project as soon as possible,” Bigos said.

Cline could not be reached for comment. Bigos said the city has had to follow the project’s status via bankruptcy proceedings.

Still, Bigos said other builders and developers have been better about keeping Chandler city officials informed.

“Because of the current economy, everyone understands this is a down market. So being up-front and honest only makes sense because we all have a vested interest in survival as well as maintaining what we have in place,” he said.

Glendale City Councilwoman Joyce Clark said developer updates often occur behind closed doors as informal chats with affected city officials rather than during public meetings. Overall, she said West Valley developers and their lawyers keep her updated on their projects.

“They are very good about keeping us informed,” she said.

Clark said she is concerned about the economic health of Westgate City Center, but she is seeing some optimistic signs from that retail complex. She declined to share details about Westgate or other projects.

After extensive efforts to obtain updates on several of the largest mixed-use developments in the Valley, few elected officials wanted to discuss the uncertain, even dire, financial situations facing some of them. The Phoenix Business Journal asked for comments about those projects — including CityScape, CityNorth and Main Street Glendale — from the cities of Phoenix, Glendale, Tempe, Scottsdale and Chandler. The only responses from public officials are those noted above.

[Vicelord John]

Foreclosure Next Step for Centerpoint Condo Towers in Tempe; Fate of Project Still Uncertain
By Ray Stern in NewsThu., Oct. 22 2009 @ 3:13PM



Image: Jaime Peachey


​Foreclosure will be the next step for the unfinished Centerpoint Condominium towers in Tempe, but what happens after that is anybody's guess.



At a hearing in Tucson today, U.S. District Judge James Marlar lifted a stay on foreclosure for the buildings and five acres of land they stand on near Maple and 6th Street.

The project's bankrupt owner, Tempe Land Company (a.k.a. Avenue Communities), owes about $135 million on the project to the company that financed it. New Times covered Centerpoint's failure in a feature story last week.

The company that lent the cash for the towers, Mortgages Ltd., is now defunct and bankrupt itself. The people who made the loans are still around, though, and likely praying their losses aren't too big. They've formed a new company, ML Managers LLC, which will now foreclose on the condo project and become the new owners for its buildings and land.

Tempe Land Company and the trustee in the bankruptcy case consented to the initial steps to foreclosure, says Cathy Reece, one of the attorneys for ML Managers LLC.

The foreclosure will occur in about 90 days, during which time the LLC will try to figure out "what it needs to do to get money back for its investors."

The project is worth only about $35 million "as is," last week's article revealed. If the LLC decides to simply sell the condo towers in their unfinished state, they'll obviously pocket just a fraction of their investment.

The expected new owners will first want to find out how much it will cost to finish the project (last we heard, the developer was saying it would be about $45 million to complete just one tower, and $75 million to complete both). They need to think about who might serve as contractor -- it won't be the original contractor/developer, Tempe Land Company. And they need to pay off or reduce the $24 million in debt that Tempe Land Company owes separately to the many sub-contracting companies who worked on the project.

"A lot is going to happen in the next 120 days," Reece says.

Unfortunately for Tempe residents, most of what happens will be people e-mailing documents, bids and other info back and forth.

More construction work -- that's still just wishful thinking.

[Tempe_Duck]

Anybody know why there are fireworks going off right now(9:45) in the direction of ASU/Downtown Tempe?

[bwonger06]

homecoming week?^

[Vicelord John]

I hear that people are dying to go to ASU.

[hrivas]

don't know how new this is but i just noticed it today. sorry for the poor quality, took with a cell phone.

http://www.tempe.gov/events/greenstreet/
"Market Garden - An important component to the Market on Mill, the Market Garden is being created to help offset the carbon footprint of the event and to providing a central downtown location where residents and schools can come and learn how to garden in the desert and how to live more sustainably on their own land or porch or terrace. It will initially include micro greens and flowers for local restaurants and the Market on Mill. Phase 1 of the garden should be completed by Nov. 10 for the Green Street Tempe Party. The land proposed for the garden is the southwest corner of 5th Street and Forest Avenue."

nothing was on the site other than the dirt that has been there.

[Tempe_Duck]

That's the location of the Marriott that was delayed. Guess its going to be a while before that is build.

[mwadswor]

http://www.azcentral.com/community/t...ty1110-On.html

Mayor hits on budget cuts, tax increases in state of city address
by Dianna M. Náñez - Nov. 10, 2009 03:12 PM
The Arizona Republic .
It was not a traditional State of the City Address.

No major development announcements. An abbreviated list of city accomplishments, compared to years prior.

And instead of focusing on the city's goals for the next year, the estimated 320 people in the audience listened to Mayor Hugh Hallman spotlight the Tempe people and agencies that are working to lift the city out of a financial crisis that has left families across the nation reeling and states and cities facing massive budget cuts.
The audience at the speech, which was hosted by the Tempe Chamber of Commerce at the Buttes Marriott Resort included business owners, faith leaders, non-profit workers and city officials.

Minutes into his speech, Hallman acknowledged that weak revenue collections could result in a nearly $22.5 million gap between spending and revenue by the June 30 end of the fiscal year. That scenario is predicated on Tempe making no cuts to its budget this year.

But Hallman's speech comes as city officials are discussing cuts that could result in a major operational restructuring where nearly half of the existing departments would be combined with other departments, could force Tempe to execute the first layoffs in city history and would inevitably spur scaled back neighborhood services.

Despite the gravity of the speech's tone, the message was on track, said Michael Monti, a longtime Tempe businessman and owner of Monti's La Casa Vieja, a downtown Tempe landmark built in 1871 as the home of Charles T. Hayden.

"This was much better than a glitzy Disneyland-like development presentation. There was a frank recognition of the needs right now. These are very tough times . . . most of us are fighting to get back on our feet," he said. "That wasn't being swept under the rug."

After noting the estimated 10-percent reduction in sales-tax collections Tempe has tallied for the first four months of the 2009-10 fiscal year, compared to the same period last year, Hallman discussed specific financial measures the city is considering.

Those options include increasing the city's bed tax, capping health care expenses at current levels and eliminating vacant positions.

An idea that would combine Tempe's departments would "reduce the high-end (management)...taking the city back (to levels seen) seven years (ago)," Hallman said.

While the job losses would be painstaking, Hallman said Tempe was determined to fast-track budget measures that would begin saving the city money. That commitment was lacking at the state Legislature, he said, reiterating criticism he made at last year's State of the City. Restating his frustration with legislators and Gov. Jan Brewer, Hallman called on state leaders to begin a new round of budget cuts.

"The state still faces a deficit of at least $2 billion-and some believe $3 billion-for this fiscal year and little action is being taken to address the challenge," he said. "We are still waiting to see on what terms the governor will call the Legislature into special session to deal with this fiscal crisis. We need state leaders to learn, as we have, that it is better to fix the things that cause holes in the boat than it is always to be bailing water. I call on all assembled here and those who may watch this address later to contact state leaders to take action quickly, before fewer options remain available and we have a shorter period of time in which to take necessary action."

Rather than simply listing recent city accomplishments, which despite a tough economy were resulting in what Hallman referred to as "a sustainable culture, environment and economy," the mayor profiled the work of Tempe residents, business people and other local stakeholders.

Hallman introduced a video of Christina Cenzano, who manages the newly opened and independently owned Dave's Electric Brewpub in downtown Tempe.

"We couldn't have picked a better spot (to open)," she said of the pub's location near City Hall and across from Arizona State University's Wells Fargo Arena and a light-rail station that shares a lot with the Tempe Transportation Center. "We've got a fantastic location . . . (with) the city staff right next to us, ASU, the faculty. (Tempe's) gone above and beyond . . . in getting us through the permitting process, getting our patio built, getting our bar built. The relationships are priceless. It is a grassroots connection within the community, and everybody's really helped us rise to the occasion."

Hallman noted other Tempe recognitions in the past year, including BusinessWeek magazine in March naming Tempe the best place in Arizona to open a business. He also noted awards the city won for using green-building standards in the construction of the East Valley Bus Operations and Maintenance Center and its Transportation Center.

To spotlight the city's contribution to recreating a Tempe music scene, which Hallman lamented was "allowed to disappear" in recent years, the mayor introduced longtime Valley crooner Walt Richardson.

Richardson's video monologue praised the city's creation of a weekly open-mic session at the Tempe Center for the Arts and Thursday's Music on Mill series where local musicians play on downtown's street corners.

Tempe was "creating a buzz" in the music community and "setting a stage for a new (music) scene," Richardson said.

After thanking Tempe's faith community for helping the city's struggling families through the recession, Hallman introduced Pastor Sang-Hoon Yoo. Hallman praised Yoo for his efforts with "For Our City," an interfaith group that was partnering with the city and other organizations to expand services for needy residents.

"Now is the time to be called into serving the needy instead of just serving the people in the church," Yoo said in a video. "I think the main thing is how the city government can work with the faith community to serve the community better."

Hallman's presentation also included videos highlighting Tempe's redevelopment along the light-rail line, which has grown faster compared to Phoenix and Mesa, and of a resident who lived near a recently redeveloped Tempe park.

After each video, Hallman asked the crowd to applaud the residents who were contributing to Tempe's success.

Hallman concluded his speech with a plea to the audience. Pointing to gift bags on the tables, the mayor asked everyone to consider leaving a donation for the Tempe Community Action Agency food pantry.

"With the holidays coming, our food pantries need help from all of us," he said. "All I'm asking from you today is that, if you have a spare $10.00 bill, place it in the envelope and put the envelope back in the bag."

The 2009 State of the City Address was presented by Edward Jones and sponsored by Phoenix Sky Harbor International Airport, Insight, PMT Ambulance, State Farm Insurance, US Airways, McCarthy Construction, Cox Communications, Motorola, Western Refining, AlphaGraphics and the Tempe Republic.

[mwadswor]

Not sure if this counts as a development story, but it's important to Tempe in general. Anyone think any serious candidates are going to run against Arredondo or Schapira?

http://www.azcentral.com/community/t...akers1118.html

State Sen. Meg Burton Cahill announced Tuesday that she won't seek re-election in 2010.

It's a move that sets in motion a series of political dominoes as Democrats try to maintain control of legislative District 17, a swing district that includes Tempe and south Scottsdale.

Next year marks Burton Cahill's 10th at the Legislature, which she joined with her election to the House in 2000. But the Tempe Democrat has battled chronic pain in her ankle and back, and said she has been advised to seek a less pressure-packed occupation.
"I have a couple doctors who believe my health would be better if I was working in a non-hostile work environment," said Burton Cahill, who isn't term-limited from the seat until 2014.

With her expected departure, state Rep. David Schapira took the first steps to campaign for what will be an open Senate seat by announcing the formation of an exploratory committee. Because of the state's resign-to-run law, the Tempe Democrat can't formally launch his campaign until January.

Schapira's campaign for the Senate would open his House seat, and Tempe City Councilman Ben Arredondo wasted no time launching his campaign. A longtime Republican, Arredondo registered as a Democrat a little over a month ago - explaining that the party was "where I'm most comfortable."

Arredondo is currently serving his fourth city council term, which expires in July. Burton Cahill said she feels comfortable having Arredondo join the Democratic slate of candidates in District 17, explaining, "he has been voting Democratic (on the City Council) for a long, long time."

[mwadswor]

http://www.azcentral.com/community/t...#reply18790323

Urban garden to be planted in downtown Tempe
8 commentsNov. 17, 2009 10:37 AM
.
The Downtown Tempe Community in partnership with the Phoenix Permaculture Guild and Caffe Boa's Chef Payton Curry
, will be announcing the launch of Arizona's first urban garden.

The announcement will take place at Caffe Boa at 4 p.m. Thursday during a special reception featuring food items that represent products that may be grown in the garden.

The urban garden will be planted at Fifth Street north of the City Hall garage.

The garden will give Valley chefs and the community at large access to locally grown, organic produce and ingredients to use in their culinary creations.

Curry is leading the charge for Valley chefs to get involved and use locally-grown ingredients on their menus.

Cool

[mwadswor]

http://www.sonorannews.com/archives/...TempeSued.html

Goldwater Institute sues over aquarium kickbacks
By Linda Bentley | November 25, 2009

Hypocrisy at the Tempe taxpayer trough
PHOENIX – On Monday, the Goldwater Institute filed a complaint on behalf of a group of Tempe business owners and taxpayers against the city of Tempe, mayor and council, seeking a preliminary injunction to halt taxpayer-funded subsidies from being provided to Merlin Entertainments Group to build a 26,000 square-foot Sea Life Aquarium at Arizona Mills Mall.

Merlin, which owns Legoland, Madame Tussaud’s wax museums as well as other amusement parks around the world, is a United Kingdom-based company that is second to Disney as the largest operator of attractions worldwide.

In August, Tempe City Council entered into a development agreement to provide for taxes and fees in excess of $148,000 to be paid to the developer as follows: a) rebate all construction sales taxes to the developer up to $900,000; b) rebate all transaction privilege taxes to the developer up to $78,000; and c) rebate all planning, engineering and building safety processing fees (excluding water and sewer development fees and residential development taxes) paid by the developer after Jan. 1, 2009, and waive all future fees up to $70,000.

With the project already underway, the aquarium’s developer has already received rebates and/or waived fees in excess of $25,000.

According to the Goldwater Institute, the development agreement violates the Arizona Constitution’s gift clause, which provides that neither the state nor any city “shall ever give or loan its credit in the aid of, or make any donation or grant, by subsidy or otherwise, to any individual, association or corporation …”

The case is not dissimilar to Turken v. Gordon in which Phoenix business owners sued the city of Phoenix, mayor and city council for issuing tax rebates to the developer of CityNorth.
In Turken, the Arizona Court of Appeals stated, “Promoting economic development, retail uses, employment, an urban core, an increased tax base, and related benefits – even if laudable goals that the city may pursue – are not a valid public purpose for which the city may expend public funds under the gift clause.”

Plaintiffs claim Tempe’s actions discriminate among businesses, depriving plaintiffs’ privileges or immunities made exclusively to Merlin, stating the discriminatory treatment is not rationally related to a legitimate governmental purpose.

In May 2005, Tempe Mayor Hugh Hallman joined Phoenix Mayor Phil Gordon and Chandler Mayor Boyd Dunn in signing an agreement not to offer tax subsidies to retail developers along their common borders.

Then, on Sept. 25, 2009, Hallman joined Scottsdale Mayor Jim Lane and Paradise Valley Mayor Vernon Parker in an opinion published in the Arizona Republic stating a subsidy gift of tax rebates for a Phoenix mall developer was wrong and in violation of the Arizona Constitution, stating, “The needless waste of taxpayer resources, the shift in tax burden to others, government’s selective favoring of some and government’s arbitrary creation of an unfair competitive advantage are all problems created by illegal gifts of public money to favored businesses.”

[Don B.]

A couple of high-res aerial Tempe shots I took back in September when returning from Las Vegas:





--don

[Leo the Dog]

Very nice pictures don.

It really puts in perspective just how small the CBDs are in metro Phoenix. A few midrises surrounded by endless sprawl.

[Edifice]

Don,

Just wanted to say thank you for posting these amazing pics of Tempe. I live in Denver now and try and get back to Phoenix a few times every year. Most of the time I am just wishing I was back home in PHX.

I went to ASU and lived on campus just south of Sun Devil Stadium at PV West. It has changed quite a bit since I graduated in 1981, but much remains the same.

Anyway, I took your first picture and it is now my desktop wallpaper! Every time I look at it I am inspired to do what it takes to get back down there! Thanks again!

[Vicelord John]

Hard to compete with those shots out of the airplane, but here are my shots from tonight. Was just playing with a new lens so I didn't spend much time taking any really interesting shots.

[Edifice]

John,

Those are great shots!

[Jsmscaleros]

Finally an update for Tempe - feels like things have been stagnant for a while (still no news on the Centerpoint debacle):

http://www.azcentral.com/community/t...nfood0108.html

Four new restaurants open in downtown Tempe

by Dianna M. Náñez - Jan. 6, 2010 01:21 PM
The Arizona Republic

A burger so hip it made GQ magazine. A sandwich shop with Midwest roots. A spot for 24-hour chow, and a reopened bistro and bar that spotlights food from around the nation.

Four new downtown restaurants have opened in a struggling economy that has contributed to the closing of a string of downtown businesses in the past year.

The latest victim came in November when Uno Chicago Grill, a longtime favorite pizzeria, shut its doors, but the new restaurants are creating a buzz downtown that is attracting customers who want to try the area's latest hot spots.

Five Guys Burgers and Fries and Jimmy John's Gourmet Sandwich Shops opened in December in the old Coffee Plantation space. Jimmy John's is part of a national chain and made its Phoenix-area debut with the Tempe opening. Five Guys opened its first two Arizona restaurants in Tempe and Mesa within a month of one another.

slideshow Five Guys Burgers and Fries in Tempe

Sucker Punch Sallys Old School Diner, which offers downtown's only 24-hour food service, is the first restaurant for the Scottsdale-based chopper manufacturer.

Regions Bistro & Bar, which reopened in November with a new owner after a short closure when the former owner did not pay the leasing fees, offers traditional American comfort foods as well as a rotating menu of specialties from around the country, which will change monthly, and half-price drinks and small plates during its daily happy hour from 3-7 p.m.

On Tuesday, Jorge Cacho and Jason Owens had just devoured Five Guys burgers and the Tempe residents were just as pleased with the food as they were with the downtown getting new business.

"It's good food. I had the cheeseburger, which has like 19 patties on it," Cacho said. "It's good having new places to go . . . it's bringing new life to downtown."

Owens had a burger and fries. Working in the downtown area, Owens has watched the demise of several businesses and welcomes the new restaurants.

"It's the first time in awhile that there's growth downtown," he said.

If the success Five Guys, a Virginia-based chain, has seen nationally-including a rave review from President Barack Obama who frequents the Washington, D.C., location-is an indicator, the burger shack is likely to fare well in Tempe.

At Jimmy John's, Nicole Lee, a St. Paul, Minn., native, felt like she was getting a taste of the Midwest.

"It's familiar, like I'm back home," Lee said. "Everybody should come here. I'm going to be here all the time."

Lee brought along Phoenix friends Nancy Vargo and Teresa Vargo who all had the No. five, or the "Vito," an Italian sub with genoa salami, provolone, capicola, onion, lettuce, tomato and zesty Italian vinaigrette.

"I don't know why anyone would have anything other than the No. five," Lee laughed.

"I loved it," said Teresa Vargo, who called Lee a Jimmy John's "virgin."

"I can't eat gluten but you can order the sandwiches on lettuce-that's so great," Nancy Vargo said.

Casaundra Brown, a spokeswoman for the Downtown Tempe Community Inc., the non-profit that manages downtown for landowners, said the buzz about new businesses has made many area stakeholders believe that despite the economy, the downtown has turned a corner.

"I think it's a sign that downtown Tempe isn't as down in the dumps . . . it just needed time to get a new game plan and now everything's going really well," she said.

Brown said there are plans that she can't unveil yet for another food-related business to open soon in the vacant space formerly occupied by Unos. She also said that Robbie Fox's Public House, an Irish Pub, will open in the Centerpoint on Mill complex across from Z'Tejas Southwestern Grill, near Mill Avenue and Sixth Street.

Brown credits the burgeoning downtown revival with Downtown Tempe Community's efforts to bring more entertainment to Mill Avenue. Thursdays on Mill hosts musicians and artists on street corners, and the Mill Avenue District Community Arts Project, or MADCAP Theater, brings movies, bands and other artists to the former Harkins Theatre.

Owens, the Five Guys customer, was not as optimistic about downtown's future.

"I definitely want it (downtown) to strive," he said. "(But) we have Borders . . . and other spaces empty. Some of these places just come here to advertise their (corporation) and then they close. We need something to stick around for a decent time on Mill."

Jake Schellenberger, the manager of Regions, said that many Valley residents feel that way about Mill Avenue.

"They just need to come out and support us," he sad. "Our food is great. We have a great happy hour. We even have lobster night."


I personally will enjoy a 24 hour eating establishment of ANY variety.