Downtown Tempe Lofts & Condos

Developers envision 8-story Tempe project

Katie Nelson
The Arizona Republic
Sept. 13, 2006 12:00 AM

A massive remodeling of one of downtown Tempe's largest developments could dramatically change one of Mill Avenue's most significant blocks.

What is known as the Centerpoint commercial project was one of the first redevelopment projects more than 15 years ago. It takes up several city blocks over 21.5 acres.

Now, there is a plan to change a portion of that, the block that sits on the western side of Mill Avenue between Sixth and Seventh streets, into a mixed-use building called On Mill that reaches eight stories.

What's there today is one level high. It has had many vacancies despite housing an area favorite, Coffee Plantation. Other tenants include Fat Tuesday, Uno Chicago Grill, Chester's Harley-Davidson on Mill, Bath & Body Works and a smattering of other stores.

New plans would mean razing those buildings to make room for a new mix of retail and the first condominiums directly on Mill Avenue.

There are three condo projects in the downtown area, with plans on the books for at least five more. But city leaders say this new concept fills a niche no others have so far.

"I think what you see is a different location in the market, a different lifestyle," said Neil Calfee, the city's deputy community development manager. "Compared to being 22 floors up in a condo to being on Mill Avenue will be a completely different living experience than living in something that's more of a planned, gated community."

The project is in the earliest stages. Site sketches were submitted to the city recently and are undergoing initial review by city departments.

Much could change in the coming months, but what Scottsdale developer DMB Associates Inc. and Phoenix architecture firm DFD CornoyerHedrick submitted to the city shows what they are aiming for. There would be 149 housing units, according to the plans. They would range from 850 to 2,025 square feet.

The lower level of the building would be dedicated to retail, while the remaining seven floors would be housing. An amenity deck would be at the top with a pool, spa and fitness center.

"It would be worth noting that this was one of DMB's first commercial projects, so we've been a part of Mill Ave. for many years," said Shanna Wolfe, a company spokeswoman. "We expect our legacy and stewardship with the community of Tempe to continue as we move forward through the planning and redevelopment process."

Both firms declined to comment as to the future of the current tenants or plans for the rest of the Centerpoint retail and commercial property, saying it was still too early in the planning process.

For more information on Downtown Tempe Lofts and other Urban Real Estate in Downtown Tempe, contact Tom Tokoph with Urban Realty & Development at 602-549-9000 or visit us on the web at www.UrbanRealtyAZ.com

Vegas developer eyes Mill Katie Nelson The Arizona Republic Feb. 10, 2007 12:00 AM Downtown Tempe is in flux. Construction has torn up streets. Building plans are coming in every month. High-rises are popping up where once there was nothing. And the city is experiencing growing pains as it evolves into Arizona's first true urban live-work community. Traffic is kept at an almost constant crawl around University Drive and Mill Avenue where water line construction is expected to last until the end of April. And at least one local restaurant blames its closing on surrounding private construction. "The area has changed so dramatically with all the new condo developments, we lost the direct access to our building as well as parking," said Cynthia Darlington, director of marketing for Islands Fine Burgers and Drinks. The eatery near the Harkins movie theater, off Mill Avenue, closed Nov. 27. "Construction was constantly blocking the main entrance way," Darlington said. "As our lease came up for renewal, we decided it would be best if we would vacate and make way for other development that fits in better with the area." Construction projects are continually coming in. City estimates project an estimated 5,000 home units, bringing about 10,000 residents to Tempe's downtown area within the next five years. "Though it's really hard to tell how many people it will ultimately be until they start getting occupied and we can see if it's going to be single people, couples, people with a couple of kids, or ASU students with a roommate or two," said Kris Baxter, who works in Tempe's Economic Development Department. There are 15 condo subdivisions on the books, and more coming based on plans going through the city's Development Review Commission. The projects range from 30-story high-rise towers to three-story brownstones nestled into neighborhoods. Jonathan Dalton, a Valley real estate agent, said there might be too many in the works. "There is a glut in townhouses," Dalton said. "But all these (Tempe) projects were put together when the market was still moving and the momentum is such that you can't cancel them. I see an oversupply in a lot of the upscale townhouses and condos near the Tempe-Scottsdale border." Nevertheless, details about another high-rise became public this week: The muscle behind some of Las Vegas' most iconic casinos and hotels intends to bring a hotel and condo project to Mill Avenue. Paragon, a company with decades of experience in development gaming and management, is responsible for the MGM Grand Las Vegas, the Las Vegas Hilton, the Sahara Hotel and Casino and the Paris Hotel and Casino. Local hotels include the Four Seasons Scottsdale and the JW Marriott Desert Ridge Conference Center Resort and Country Club in Phoenix. Now, Paragon wants to build a three-tower, 26-story integrated hotel and condo project in Tempe at Mill Avenue and Seventh Street. Plans call for 240 hotel rooms, 370 condos, conference space, an open-to-the public fitness center and ground-floor spots for retail stores or restaurants. The hotel would likely be a Marriott brand: Renaissance ClubSport. It's a multiuse project with multiple goals, said John Cahill, a Paragon vice president. "We want to have something that takes advantage of all the adjacencies: The university population, all the new residents; even if half the projects that are on the books get built and provide them with food, entertainment, this health club facility and a place to put up their friends and family," Cahill said. The Paragon project's location was once the site of Long Wong's watering hole and concert venue favored by both Arizona State University students and locals. That's telling, said Sara Cina, an Arizona native who used to book bands there and is now making a career selling her bright artwork in the form of clothing for babies and women. "It's ironic because I always appreciated the mixture," Cina said. "The dive pizza place contrasting with a P.F. Chang's. The local brew pub, with corporate-whatever. It saddens me that something so completely brand-new and corporate is going on something that was so old Tempe." For more information on Downtown Tempe Lofts and other Tempe Real Estate, Condos, contact Tom Tokoph with Urban Realty & Development at 602-549-9000 or visit us on the web at www.LifeIsInTheHeartoftheCity.com : Specializing in Downtown Tempe Urban Living
www.UrbanRealtyAZ.com

Developers envision 8-story Tempe project Katie Nelson The Arizona Republic Sept. 13, 2006 12:00 AM A massive remodeling of one of downtown Tempe's largest developments could dramatically change one of Mill Avenue's most significant blocks. What is known as the Centerpoint commercial project was one of the first redevelopment projects more than 15 years ago. It takes up several city blocks over 21.5 acres. Now, there is a plan to change a portion of that, the block that sits on the western side of Mill Avenue between Sixth and Seventh streets, into a mixed-use building called On Mill that reaches eight stories. What's there today is one level high. It has had many vacancies despite housing an area favorite, Coffee Plantation. Other tenants include Fat Tuesday, Uno Chicago Grill, Chester's Harley-Davidson on Mill, Bath & Body Works and a smattering of other stores. New plans would mean razing those buildings to make room for a new mix of retail and the first condominiums directly on Mill Avenue. There are three condo projects in the downtown area, with plans on the books for at least five more. But city leaders say this new concept fills a niche no others have so far. "I think what you see is a different location in the market, a different lifestyle," said Neil Calfee, the city's deputy community development manager. "Compared to being 22 floors up in a condo to being on Mill Avenue will be a completely different living experience than living in something that's more of a planned, gated community." The project is in the earliest stages. Site sketches were submitted to the city recently and are undergoing initial review by city departments. Much could change in the coming months, but what Scottsdale developer DMB Associates Inc. and Phoenix architecture firm DFD CornoyerHedrick submitted to the city shows what they are aiming for. There would be 149 housing units, according to the plans. They would range from 850 to 2,025 square feet. The lower level of the building would be dedicated to retail, while the remaining seven floors would be housing. An amenity deck would be at the top with a pool, spa and fitness center. "It would be worth noting that this was one of DMB's first commercial projects, so we've been a part of Mill Ave. for many years," said Shanna Wolfe, a company spokeswoman. "We expect our legacy and stewardship with the community of Tempe to continue as we move forward through the planning and redevelopment process." Both firms declined to comment as to the future of the current tenants or plans for the rest of the Centerpoint retail and commercial property, saying it was still too early in the planning process.

Tempe, Phoenix have long battled over routes By Garin Groff, Tribune September 26, 2006 Day 3 of 3-part series Two-and-a-half miles from a runway at the nation’s fifth-busiest airport, developers are scrambling to put up buildings between 20 stories and 30 stories. The soaring buildings aren’t directly under where most planes fly. But they’re close. In the rare instance that an engine fails on takeoff, pilots of some airlines would turn their aircraft directly over tall buildings in downtown Tempe. So instead of continuing east over a largely uninhabited river, the struggling plane would turn over one of Arizona’s most densely populated areas. The idea sounds crazy to everyone — but not in the same way. To Tempe, it’s crazy that a pilot would head toward tall buildings and so many people. To some airlines and aviation officials at Phoenix Sky Harbor International Airport, it’s crazy that anybody would want a skyscraper where disabled planes need all the airspace they can get. And it’s even crazier to them that Tempe would allow it. It may seem like strictly a safety issue. But for two cities that have squabbled over the airport for decades, it’s also about politics. Tempe points out that Phoenix has taller buildings downtown that are even closer to the other end of the runway, so it can’t legitimately complain. Tempe Mayor Hugh Hallman said Phoenix must stop fighting Tempe and pressure airlines to change their procedures. “They want to fly a plane with a disabled engine over the most densely populated area of the state?” Hallman said. “They think that’s safety planning? That’s absurd.” Tempe sees a neighboring city that’s envious of its economic development success. The theory is: The state’s capital city has struggled to lure developers to its downtown for decades while its scrappier college-town neighbor has been nearly overwhelmed by development. By making flight safety an issue, Phoenix can slow Tempe’s growth and lure those developers — and their money — to its downtown, boosting its own image. The accusation offends Jane Morris, a deputy aviation director for Phoenix. “I am a professional and I am not making recommendations that enhance or detract anyone’s downtown,” Morris said. “I am a custodian of maintaining the capacity we have paid for in these runways and the infrastructure,” she continued. “As the person responsible for that planning, I find that ridiculous.” LONG-STANDING TENSION The tension has deep roots. Tempe has complained for years about the growing airport and noise from planes that fly over Tempe neighborhoods on either side of the Salt River. The airport was an issue early this decade when construction was about to begin on an Arizona Cardinals stadium east of the runways. Phoenix and Tempe had battled for the stadium, and flight safety became a major issue. The stadium ended up in Glendale, and many Tempeans are still bitter about how Phoenix fought to have the stadium built in its downtown. The animosity boiled over in 2001 when Tempe sued Phoenix over a runway-paving project. Tempe made the airport a federal issue a year later when it sued Phoenix in federal court. Tempe eventually dropped the suit. In 2004, the new mayors of both cities — Hallman and Phoenix’s Phil Gordon — agreed to stop the fighting their predecessors started and work together more on airport issues. But tensions rose last year when Avenue Communities announced it wanted to raise its 22-story condo project in downtown Tempe to 30. The then-aviation director of Phoenix told Avenue Communities to stop construction. Phoenix chastised the developer for not getting a mandatory review by the Federal Aviation Administration. The developer started the review process this month. Tempe and Phoenix traded barbs publicly over the project. Phoenix questioned whether Tempe was indifferent to airline safety. Tempe questioned whether Phoenix was just jealous. Both sides expect the FAA to shed some light on the issue soon, possibly in a few weeks. Federal officials will examine the building heights and ask airlines for their views. Then the FAA will decide one of two things: A finding of no hazard, which means the project doesn’t have a significant impact on safety or operation. Or the FAA could label the project a hazard because it’s in the airspace needed for safe flight operations should an airliner’s engine fail. The FAA’s findings can’t stop a project, however. Only Tempe has authority to restrict building heights. Hallman has said the city will respect FAA findings but won’t necessarily give in to objections from an individual airline. The latest feud involves University Square, a 300-foot-tall project at University Drive and Myrtle Avenue. The FAA determined it wasn’t a hazard. But it noted Alaska Airlines’ objection to the building on the grounds that it would need the airspace if an engine failed. Alaska has appealed the FAA determination. The FAA does not have a timeline to issue a decision on the appeal. ENGINE FAILURE PLANS Alaska Airlines has told the Tribune that anything higher than 189 feet would force it to reduce weight to ensure its planes could clear the building. That would force the airline to cut six to 10 passengers from most of its flights to ensure safe operations. The airline operates eight to 10 flights a day. Alaska officials said they can’t recall a time in the past decade when any of its planes lost an engine on takeoff. On the aircraft Alaska uses for flights to Phoenix, the Boeing 737-400, engine failure occurs on about four of every 100,000 departures. But Alaska and other airlines must operate every flight under the assumption that an engine could fail and have procedures to ensure these disabled aircraft can clear obstacles. Carl Allen, Alaska’s director of flight operations, said company policy doesn’t put downtown residents at risk. “It’s our intent that that airplane won’t come in contact, whether densely populated area or sparse ground,” Allen said. Each airline has its own procedure for dealing with a failed engine based on the technical specifications of each make of aircraft. Most airlines would continue along the river if an engine failed, which is the same path they’d use for normal takeoffs. Alaska decided not to have have pilots go east over the river with a failed engine because Hayden Butte and buttes in Papago Park are obstacles. The turn over downtown allows planes to clear those hazards, Allen said. Alaska, Southwest and FedEx share similar procedures for turning over downtown when an engine fails. The airlines hesitate to release specifics of their procedures because they are proprietary, Hallman said. Morris rejected Tempe’s call to have the city pressure airlines to change their flight procedures. “Phoenix does not presume to tell an airline how to fly their planes,” she said. Morris said Phoenix has responded to flightsafety issues by creating block-by-block zoning for its downtown that takes airport issues into consideration. She said Tempe hasn’t done the same, and that it should consider doing so. Phoenix is studying Tempe’s airspace now to see what heights would or would not be a problem in its downtown. Phoenix should have its answers within a few months. “Tempe doesn’t have an analysis that takes into account one engine out,” Morris said. Hallman said Tempe has tried to do this but Phoenix and the airlines have refused to release information on flight procedures when an engine fails. Tempe started working on building height issues before Phoenix, Hallman said, but can’t complete the work without information from airlines. Tempe Councilman Hut Hutson has followed the issue as chairman of the city’s aviation commission and is the city’s chief critic of Phoenix’s position. “They complain that we don’t listen to the FAA and then the FAA gives us approval and it’s still not good enough,” Hutson said. “I’ve been telling people all the time, it’s economic development. It’s not flight safety, it’s economic development.” For more information on downtown Tempe Lofts, Condos, Townhomes or other real estate Contact Tom Tokoph, Broker, Urban Realty & Development 602-549-9000. Or visit us on the web at http://www.LifeIsInTheHeartoftheCity.com

Changes to Tempe raise concerns about past By Garin Groff, Tribune September 25, 2006 Day 2 of a 3-part series Visitors to downtown Tempe probably will be forgiven if they momentarily look past the century-old red brick buildings to catch a glimpse of construction cranes towering into the sky. But the distraction might not be momentary. Once 30-story condo towers loom over Tempe, will visitors see the place for its history or for its modern glass and steel buildings? And will owners of the more understated red brick buildings continue to take advantage of the historic charm to lure visitors? Or will they exploit the real estate and cash in on the chance to build more 30-story buildings? And what if these massive condo towers open their doors to a public that decides Arizona living should be characterized by big yards and a pool — not a high-rise? Anxiety has come with every change in downtown Tempe over the years, but today’s unprecedented rate and scale of change has elevated those concerns. Some fear the bold effort to transform downtown Tempe may destroy its history and the sense of place that now lures builders, merchants and shoppers. One of Tempe’s more notable merchants for decades thinks it’s already too late to save downtown from larger forces. Gayle Shanks ran her Changing Hands Bookstore downtown for nearly 30 years but left in 2000 as new development brought in bookstore powerhouse Borders. “Greedy” developers ruined the quaint atmosphere, she claims. “They just figured there was a little gold mine there and they were ready to mine it,” Shanks said. “The dollar was the primary focus, not the people. It just imploded.” Tempe’s been widely criticized for not doing enough for small businesses that give downtown its character. Restaurant owner Michael Monti is one of the strongest critics. But he and other downtown followers say many failed or upset businesses owners have only themselves to blame for falling behind trends in their industries. “Sometimes independent businesses like mine are their own worst enemies,” said Monti of the landmark Monti’s La Casa Vieja restaurant. “Independent businesses need to recognize contemporary standards and rise to them.” Residents’ fears go beyond corporate domination of mom-and-pop shops. They include intimidation from big buildings, congestion and loss of history. And one of the biggest fears is that the unprecedented boom is happening too rapidly. HISTORY Tempe has the Valley’s oldest continuously inhabited structure, Monti’s La Casa Vieja, according to the city. And the adjacent Hayden Flour Mill was the state’s longest continuously operated industrial site until its 1998 closing. But some longtime downtown watchers raised concerns the value of land could doom small historic buildings. “The biggest fear I have is when you can build a 300-foot building, no small building is safe,” said Rod Keeling, executive director of the Downtown Tempe Community. The historic buildings create an authentic feeling money can’t buy, Keeling said. He’s called for an ordinance that would block buildings taller than 50 feet on sites with historic elements. That would severely limit profits for new buildings on historic sites. Mayor Hugh Hallman scoffs at the notion Tempe hasn’t done enough for history. The city has saved several historic buildings during his two years in office and has established height guidelines to protect key properties, he said. Keeling said he’s not concerned about the political climate today, but he fears future city leaders won’t feel as strongly about preservation. Currently, a majority vote of the City Council could doom a building, he said. Though many downtown buildings are on the National Registry of Historic Places, the designation doesn’t trump a property owner’s right to tear it down. Once the building is gone, Keeling said, the owner could lobby the city for more height. Keeling’s most urgent concern is the Vienna Bakery building, dating to 1893. Developer Don Plato bought it along with the adjacent Fifth and Mill building at the intersection’s northeast corner. Plato planned to open a Gelato Spot there, but he opened stores elsewhere in the Valley as he instead explored the idea of knocking down buildings for an 11-story condo project, Mill Avenue Lofts. Plato said the outcry made it too difficult, so he decided to keep the buildings and lease them out. “I’ve kind of lost my drive because of the politics,” he said. Plato questions the value of the Vienna Bakery building as a historic property. Only the front wall’s arched windows remain. The building’s south half was demolished years ago, and nearly everything else was rebuilt after a fire. “It’s so young that it doesn’t mean (anything),” Plato said. “To think that building does have any historic value is just asinine to me.” Architect Stu Siefer’s Tempe firm was perhaps the most active in downtown restoration and new projects in the 1970s and 1980s, and he laments how big buildings are dwarfing charming old ones. He was involved with some downtown planning at the time and envisioned a limit at eight stories — not 30. “I think it’s going to be shocking for people to see buildings of this size,” Siefer said. “I would have preferred to see the density evolve and have the ability to know in increments if we have the ability to absorb the growth.” HEIGHT, SCALE AND ECONOMICS Civic boosters get excited about 30-story condo towers in Tempe. They often point out Tempe’s skyline will become the second most impressive in the Valley, behind only Phoenix. That poses the question: Are the buildings essential to Tempe or are they a case study in skyscraper envy? According to Joel Kotkin, a Los Angeles-based author and commentator on urban and social issues, “What makes Tempe great is you have nice places to walk and it’s human scale. “I don’t think adding a bunch of tall buildings makes it a great environment.” Kotkin visits the Valley frequently and sees a demand for some urban condos in Tempe, in downtown Scottsdale and along the Camelback corridor. Yet he’s skeptical of the nationwide trend to build high-rise condos in downtowns, especially in Sunbelt cities. Developers usually overbuild and create a bubble in the market, Kotkin said. That means a portion of the swanky condo towers could turn into more modest housing for students. Rob Melnick, associate vice president of economic affairs at Arizona State University, disagrees with Kotkin’s density and height worries. Downtown must take big steps for the city to survive financially, he said. “And the alternative being what?” he said. “Being what you have now?” Keeling and others argue the tall buildings will build up the tax base so the otherwise built-out city won’t have to raise residential taxes. Melnick acknowledges developers could build too much, too fast and their new buildings might sit idle for some time. But he’s convinced the ambitious downtown plan will work out even if some developments fail initially. “Twenty years from now when this place is built out, the people who were behind it are going to look like friggin’ geniuses,” Melnick said. “People are going to forget all the rancor and they’re going to be celebrating.” For more information on downtown Tempe Lofts, Condos, Townhomes or other real estate Contact Tom Tokoph, Broker, Urban Realty & Development 602-549-9000. Or visit us on the web at http://www.LifeIsInTheHeartoftheCity.com

High-rises to replace flour mill as Tempe icon By Garin Groff, Tribune September 24, 2006 Since Tempe’s founding, its iconic downtown landmark has been an industrial building that milled grain into flour. Its downtown scene for at least a generation relied largely on college students, bar food and beer. And the neighborhoods around Mill Avenue mostly vanished. That’s all changing in a way that will transform Tempe’s place in Arizona and nationally. The new iconic image will be not a single building, but instead a cluster of 30-story luxury condos. The social scene is shifting to swanky eateries with celebrity chefs and boutique wines. And the neighborhoods are coming back — vertically. Nearly everything new downtown ranges from eight stories to 30 stories. The whole thing thrills civic leaders and merchants who insist Tempe is joining an elite group of urban cities known for their bustling downtowns. Yet it horrifies others who see a quaint college town being gobbled up by developers eager to erect hulking monuments that will forever change Tempe’s face. The opposing camps generally agree on one point: A promise summed up by Ken Losch, one of the men behind the 30-story Centerpoint Condominiums. “Two or three years from now,” Losch said, “people aren’t going to recognize Mill Avenue.” Change is now as much a part of downtown Tempe as the historic Hayden Flour Mill. But the building boom is the most rapid transformation in Tempe history. Within 10 years, or perhaps as many as 20 years, the current boom will exhaust itself as nearly every vacant parcel and most modest buildings are turned into high-density urban projects, according to city planners, developers and real estate experts. Tempe’s downtown is vital because the 42-square-mile city is penned in by other communities. The city of 161,000 has almost no vacant land remaining. That means the only direction it can grow is up. Looking to the future, the city envisions as many as 5,000 downtown condos, plus more offices, hotels, restaurants and shops. Unlike any other Valley city, the future downtown will be designed to allow residents to meet their everyday needs without a car. “It’s going to be a real city,” said Rod Keeling, executive director of the Downtown Tempe Community. “It’s not going to be a suburb of Phoenix. It’s going to be a real city.” Tempe’s rise may seem natural today. But the college town’s emergence as a major urban hub came after an embarrassing decline of its downtown, massive subsidies to lure developers and occasional bitterness as developers and city leaders periodically redefine Tempe’s vision. The development under way now or planned to begin within a year exceeds $1 billion. Nearly 2,000 condos are approved, mostly in high-rises soaring 18 stories or more. Also, two hotels are approved and some landowners are planning major expansions and renovations. That could be the tip of the iceberg, as development officials have occasionally been caught off guard at times over the number of projects and their massive scale. TURNAROUND Historically, Tempe’s downtown has served as a key crossroads in Arizona, from the day Charles Trumbull Hayden arrived on the south side of the Salt River in the 1870s. He started a ferry to transport people and goods across the then-flowing river. He built an adobe house that still stands and began the mill. The place known as Hayden’s Ferry was a top business post that eventually was dwarfed by Phoenix as the Valley’s center of gravity. The downtown still flourished as a traditional center of a college town through the 1960s, when urban sprawl began taking its toll on central business districts in Tempe and across the country. For a time, Tempe’s core was known largely for biker bars and drunken brawls. “It’s not that we were just a little college town,” said Keeling, an Arizona State University student in the early 1970s. “We were a dirtball little college town.” It had become almost too much for city fathers to bear by 1968. The growing city began considering a new City Hall on the outskirts of the city, in what would have been a symbolic abandonment of downtown. The City Council decided by one vote to stay downtown. That led to construction of an upside-down pyramid for City Hall — and national attention for its unconventional design. The pyramid’s 1970 completion triggered a trickle of private developments. Owners restored historic buildings on their own in some cases, but the effort was boosted by city subsidies of major projects that developers considered too risky. But Tempe has turned off the subsidy spigot in recent years, as private investment carried the momentum. It can now demand developers give money to other city projects as the price of doing business in Tempe. NEW BLOOD One or two developers have historically dominated Tempe redevelopment at any given time. Today, the list of influential developers includes native Canadians Ken Losch and David Dewar of Avenue Communities. They’re working to move their Camelback Corridor headquarters to the Hayden Flour Mill. From there, they’ll coordinate plans to build as many as 5,000 condos in the region surrounding downtown. Losch is the company’s chief pitchman — and for good reason. He speaks with an evangelistic zeal about making Tempe like other urban centers — Toronto’s Yaletown or New York City’s SoHo district. Losch can’t mention other megacities without boasting of plans to make a new hip urban core — SoBo. That’s short for sophisticated Bohemian, which means historic red brick buildings, glass condo towers, boutique wine and restaurants with European influences. Losch’s company checked out 200 developments across the nation before settling on Tempe. During a recent tour of the Centerpoint Condominium site, Losch stood on a newly poured foundation of what will become an Italian bakery and rattled off the reasons why he landed in Tempe. First, he said, there’s Phoenix, the nation’s fifth largest city. ASU, now the nation’s largest university. A massive airport minutes away. Employment opportunities. Access to freeways. Papago Park. The Metro light-rail line. Lots of historic buildings. “I challenge you to find the confluence of that any other place in the country,” Losch said. “Phoenix now has become a primary city and this place is screaming out for SoBos.” As for modern design, Centerpoint will eclipse any existing building downtown. But Losch insists he values historic buildings. That’s why he is buying Hayden Flour Mill from Tempe. He wants to restore the site as his corporate headquarters. He plans to move some milling equipment into a glass enclosure that will let visitors see how grain was processed. And he’s seeking a restaurant that will make flour on site to carry on the mill’s traditions. The old mill also will house a winery. Avenue Communities has ordered 60,000 pounds of Napa Valley grapes that should arrive in a few weeks and will be made into wine in Tempe. It might seem a high-end developer would want to crush the quirky elements of this college town. But Losch insists he wants unexpected moments. That could be a guy hitting him up for a buck or a street musician, he said. Even the Tempe establishment has cautiously embraced the Bohemian side of Mill Avenue. The downtown’s street musicians and sellers of hemp jewelry are technically illegal, but they’re allowed to operate as long as they aren’t too obnoxious. Keeling loves that. As a selfdescribed former 1970s hippie, he embraces some of the downtown’s wildness. The pro-business, proestablishment side of him also sees the benefit of life on the edge to set downtown apart from the lifeless corporate culture that dominates other shopping and entertainment venues. “The guy with his guitar and the dreadlocks — that’s Mill Avenue,” Keeling said. “That’s the ‘It.’ ”

Proposals for Town Lake project, Marriott keep Tempe planners busy Katie Nelson The Arizona Republic Nov. 30, 2006 12:00 AM Work on a multimillion-dollar hotel, condo and retail project proposed for Tempe Town Lake could start as soon as next year. The city reviewed the first set of plans for the project last week. If and when the building begins, it would be a big step for Tempe. The project would become a physical reality. A previous project slated for that site fell through in 2001. Plans for the Pier 202 project are taking shape, said Michael Barker, one of the lead developers. The amount of office space has doubled from the original plan, and new drawings call for slightly more residential housing. A hotelier is still being identified. The style hasn't changed. Tempe can still anticipate tony lofts, four-star hotel rooms, shops and restaurants on the shores of the lake. "It's good progress," Barker said. "It's an interactive process of looking at their (the city's) planning requirements. . . . All these things will have to be reviewed by the various parties, and we'll go and make adjustments," he said. When the 27 acres near Rural Road and Rio Salado Parkway went up for sale in April 2005, 10 groups of developers started bidding for rights. Tempe received offers from $9 million to $42 million. In January, the City Council voted to exclusively negotiate with Pier 202 LLC, a group of home builders, retail developers and consultants based in California. Soon after, Barker's team agreed to pay $42.5 million for the land. Tempe's planners are in the process of analyzing Pier 202's 15-page packet, which lays out where utilities, soil, grading and other engineering will be. Development Services manager Chris Anaradian oversees this process. He said he anticipates the project could start on grading, drainage and underground parking in 2007. In other development news, preliminary plans for a Marriott hotel were submitted to Tempe on Nov. 17. An 11-story Marriott Residence Inn could go in at Fifth Street and Forest Avenue, the site of the now-vacant Bandersnatch brew pub. The project calls for a parking garage to be built between the hotel and Tempe City Hall to provide parking places for both buildings. The hotel would have about 170 rooms, paired with some retail and office space on the ground level. If it goes through, the Marriott would be the second solid hotel announcement in a year for downtown Tempe amid many other plans for hotels. The first was a luxury hotel called Le Meridien that is going to be built on Town Lake in the Hayden Ferry Lakeside development. It is expected to open by Thanksgiving 2008.

Condos drive Tempe growth By Garin Groff, Tribune July 13, 2006 A surge in condo construction drove development in Tempe to a near record level last year as developers built upward to make up for a lack of vacant land. The value of new construction was the second-highest ever for the fiscal year that ended in June. It was the fourth straight increase following a huge downturn several years ago. But last year’s 150 percent jump — driven largely by high-rise and midrise buildings around Tempe Town Lake and downtown — was the largest of the boom years. “I don’t think two years ago we had any idea this level of activity would occur,” said Chris Salamone, the city’s community development manager. Tempe recorded $453 million worth of development in the last fiscal year, compared with $497 million in the 1997 fiscal year, the record. Tempe should have smashed that record last year, said Chris Anaradian said, the city’s development services director. The developer of Centerpoint Condominiums had planned to get a permit in late June for the second of four towers in its downtown project. The plan got caught up in another agency and will come in soon, Anaradian said. The first Centerpoint tower was valued at nearly $79 million. It is the largest single project and part of the biggest segment, multifamily housing. That category included investments totaling roughly $200 million, or 44 percent of the overall development in the city. Much of the boom is less exciting than the high-rises. Businesses are expanding and redeveloping, resulting in a large number of smaller projects. The actual value of the development is far higher than the city’s figures because officials used a nationwide industry standard that calculates value based on the type of development and average costs per square foot. The value doesn’t include land, financial fees or quality of development. And because the formula is several years old, it doesn’t include a surge in material and labor costs. The actual value of the projects is closer to $800 million, or perhaps even $1 billion, city officials said. Real estate experts and city officials said it’s impossible to predict how long the development craze will continue, but the outlook is optimistic. This year could be strong as well, because Tempe Marketplace permits will show up in this year’s reports. Also, few projects showed up last year along Apache Boulevard, where the Metro light-rail project is expected to trigger massive redevelopment. City officials have seen lots of real estate transactions in that area in preparation for a future development. Several large projects could come as early as this year, Salamone said. Greg Coxon, senior managing director for CB Richard Ellis, said Tempe will probably ride the wave for a few more years. The timing is perfect for more high-rise condo projects downtown and at Tempe Town Lake, barring some significant economic shift, he said. “There’s never been a more optimistic time — and I’ve been in the business for 20 years — than what we’re at right now,” Coxon said. Tempe’s boom has spread beyond its city limits. Downtown and lake developments are bringing lots of new workers and residents who will want different businesses in places like south Scottsdale, Coxon said. He expects a surge of redevelopment on Scottsdale Road from the Salt River to Arizona State University’s SkySong project. “There’s a real opportunity for the city of Scottsdale to take that corridor and totally redevelop it,” Coxon said.

Meet Tempe’s developers By Garin Groff, Tribune September 25, 2006 The Centerpoint Condominiums project in Tempe casts a long shadow over other major projects. The three towers are expected to reach 343 feet, the tallest the city will allow. Right now it’s the biggest project under construction in Tempe. But several other major developments are planned. Here’s a look at other major projects under way and some key developments already in place. UNIVERSITY SQUARE This project features more components than any single downtown project — a condo tower, an office tower and a major hotel. The 2.1 million-square-foot project will cover an entire block, where the 1960s-era Arches center has served students for generations. The hotel is the most significant feature to developer Jim Riggs, president of Valley-based Shea Commercial. “This is going to be the hot spot for everybody to meet and have gatherings and social events,” Riggs said. Riggs said it’s odd that a campus the size of Arizona State University doesn’t have a large hotel on site. CENTERPOINT One of Tempe’s key redevelopment sites is about to be redeveloped again. DMB Associates of Scottsdale is exploring plans to tear down some of the single-level buildings along Mill Avenue that housed landmark businesses like the Coffee Plantation. The new buildings would include a reconfigured space for restaurants and shops. Several stories of condos would rise above, according to preliminary plans submitted to the city. Centerpoint remains one of downtown’s most pivotal redevelopment efforts, as it was the first major project when it was approved in 1985. It landed a Chase operations center, the bank’s first large presence west of the Mississippi River. Other offices, stores, restaurants and a Harkins Theater rounded out the development. HAYDEN FERRY LAKESIDE Every feature of this office, hotel and condo project plays off its location on the south shore of Tempe Town Lake. Buildings are covered with a specially tinted deep blue glass, architecture resembles the contours of ships and names reference nautical terms. Four condo buildings are planned, with each unit designed to give the owner a view of the lake. Work has begun on the second of these buildings. Construction is under way on the second of three office towers, and developer Suncor recently announced it will feature international hotelier Le Meridien. MOSAIC First known as the Cosmo, this condo project is perhaps best known for landing a Whole Foods. That will be downtown’s first grocer in years. Mosaic will include other shops and restaurants, as well. The condos will replace the Gentle Strength co-op site, on the northwest corner of University Drive and Ash Avenue. THE ARMORY This 20-story condo project will take the name of a utilitarian armory building that’s stood there for decades. Developer Grady Gammage Jr. is behind the project, located on the southeast corner of College Avenue and Veterans Way.

Tempe previews its soaring skyline By Garin Groff, Tribune November 9, 2006 It takes a crane to build tall buildings, and a dozen of them have sprouted up in Tempe’s skyline. “And there are a dozen more on the way,” Tempe Mayor Hugh Hallman said Wednesday. Those cranes will bring an unprecedented change to the East Valley’s skyline, a look the city showed off for the first time Wednesday as it released a computer-animated video of new buildings coming soon to downtown and Town Lake. The video offered the best idea yet of what Tempe will look like with a 30-story condo tower and several other buildings that range from 12 to more than 20 stories. The footage gives a bird’s-eye view, as if it were shot from a helicopter, and reveals the planned buildings from multiple angles. While the local and nationwide real estate market has slowed and even killed some projects, Hallman said the downtown’s features have made the area immune to larger market forces. “It doesn’t apply here,” he said. The look at Tempe’s future came during a second annual showcase of downtown and lakeside projects, which drew hundreds of developers, real estate brokers and others. More than 40 projects are approved or under way in the area. One of the featured projects was Onyx, a 26-story condo tower planned on the northeast corner of Rural Road and Town Lake. Developer West-Stone Communities hasn’t formally submitted plans yet, but still expects to start construction in spring. Onyx condos will range from $300,000 to more than $1 million, WestStone spokeswoman Marilyn Pfaff said. The event included projects as well-known as Centerpoint Condominiums, a cluster of 30-story towers under construction, and a three-story, 65-unit condo project called the Brownstones at Tempe. The Brownstones’ first resident, Erik Anderson, left a downtown Phoenix loft for Tempe and said he was surprised to learn how many big developments are under way around his new home. “It’s pretty exciting,” Anderson said. “It’s going to bring a lot of life to Tempe.”