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."