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Condos Cause Concern in Scottsdale

March 23, 2007
By Brian Powell for East Valley Tribune

Jennifer Herndon likes the idea of new, high-end condos near her downtown Scottsdale single-family home. But in reality, she says there's a major downside to the proposed 81-unit Z Lofts being built on less than two acres at the end of her quaint 1950s neighborhood street.

"Our main concern is there will be more traffic going up and down the street and cars parking on the street," said Herndon, adding that it increases safety concerns for her two children, who are both younger than 2.

Fifth Street resident Leslie Walch said with only seven planned visitor parking spaces, the street is going to become a parking lot.

"This feels like a neighborhood, and the density coming down is going to take away that feel," said Walch, a 26-year resident of the street.

This conflict is one that is beginning to play out at other sites in downtown Scottsdale, as continued interest in constructing urban hotels and condos is pushing development to the edge of the downtown area and adjacent to, or even into, established neighborhoods.

Downtown Scottsdale has started welcoming the first of what's expected to be 5,000 to 6,000 new residents choosing an urban lifestyle, not to mention an influx of new and remodeled hotels.

The first major residential projects to open, including Third Avenue Lofts, the Scottsdale Waterfront residences and Main Street Plaza, were built in more commercial areas.

But as development spreads to the edge of the area, plans for taller and higher-density buildings - and the additional traffic and parking needs that accompany them - is creating an uncomfortable dynamic for some residential areas, much as it did a few miles to the west in Phoenix's Biltmore district.

Z Lofts, which attracted about 20 neighborhood residents to its latest meeting, is just one of a number of projects moving toward - or in one case going beyond - the city's established downtown boundary adopted in the 1980s.

Others include:

• The proposed Waterview hotel and condos planned northeast of Camelback and Scottsdale roads. The developers have acquired a number of aging apartments along the Arizona Canal and plan to raze them to make way for a 72-foot hotel and 65-foot condominiums across the street from other apartments, single-family homes and near the Villa Monterey age-restricted community.

• The 1 Hotel and Residences, a new upscale brand from Starwood Capital Group, plans to start construction sometime early next year on a roughly 200-unit project on the Scottsdale Waterfront property along the canal, said Bret Sassenberg, director of development for Starwood Development. The hotel and condominium project, which is on the downtown border and across the six-lane Goldwater Boulevard from town home residences, can be as high as 85 feet and will need city Development Review Board approval.

• A proposed condominium development to replace Orchidtree apartments on the southeast corner of 68th Street and Camelback would back up to ranch-style, single family homes. No application has been filed with the city, but project consultant Susan Bitter Smith said International Capital Partners' plans call for owner-occupied condominiums, ranging from three to five stories, with the tallest portions fronting Camelback Road.

The plan also includes asking the city to extend the downtown boundaries, which would allow greater height and density than currently allowed on the site. Bitter Smith, a former Scottsdale councilwoman, is also doing consulting and neighborhood outreach for Z Lofts, Waterview and 1 Hotel and Residences.

• The approved five-story Earll Drive condos at the southern edge of the downtown area did not back up to any neighborhood, but nonetheless drew the ire of some city activists opposing greater density. The 99-unit project narrowly passed the council last month because of its density and what some members thought was a mediocre design, an indication that future projects may face increased scrutiny.

Scottsdale's downtown land use plan was established in the 1980s to allow for greater residential height and density with the hope of revitalizing the area. The downtown properties were not automatically rezoned, Scottsdale principal planner Mac Cummins said, but developers are now seeking the designation allowed under the plan. Z Lofts, like Waterview and Earll Drive, for example, are not asking for variances beyond what is allowed under the downtown zoning.

As these latest projects seek City Council approval, city planners are working on a downtown master plan update. The city plans to hold public workshops this spring to discuss downtown land use, transportation and open spaces, with a draft of the downtown update expected to be given to the council by the end of the year.

The developer of Z Lofts, which is building X Lofts nearby, has heard enough feedback from the neighborhood to look at adjustments in its plans.

Steve Davidson, a project management consultant working for Grace Communities, said the group is doing a traffic study and looking at new designs, entries to the underground parking garage and density.

"We are seriously looking at what we can do to make neighbors more comfortable with the intensity and use," Davidson said.

Cummins said communities that have seen a significant increase in property values in a short time have seen similar growth patterns. As land becomes more valuable to obtain, developers need additional height and density to turn a profit.

"They can coexist. The question 'What's the best way to achieve that?' " Cummins said.

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REMAX Excalibur Realty, Will Daly (Realtor) specializes in Lofts, High Rise, Brownstones, Row Houses located in Phoenix, Scottsdale, Tempe, Chandler, and Mesa.    Equal Opportunity, MLS, Realtor, High Rise Lofts in Phoenix, Scottsdale, Tempe.
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