A plan to redevelop an old office park along the Camelback Corridor stands on hold while developers address concerns from a neighborhood group.
The CamelSquare development, announced in September by Phoenix-based M3 Cos., includes plans for luxury condos, a boutique hotel, a medical office park and stores. At issue is the height of the proposed project, which at its highest point is 98 feet, or nine stories. The property now has buildings two stories tall. Scott Schirmer, an M3 partner, said the company has been working closely with neighbors in the area near the development to create a cozy neighborhood spot with amenities such as restaurants and boutique shops.
"Thirty percent of the property is dedicated to preserving the view" of Camelback Mountain, Schirmer said.
The proposal has yet to go before Phoenix City Council. Neighbors for and against the project and the developer have been going through a mediation process since late January. The meetings were suggested by Vice Mayor Dave Siebert, Mayor Phil Gordon and Councilman Greg Stanton, who represents that part of the city, so that a compromise could be reached.
"All parties are working very hard to come up with a resolution," said Joseph Villaseñor, Siebert’s assistant. "Progress is based on parties continuing to negotiate."
Meetings are expected to continue at least through March.
The corner now is home to several older buildings housing medical practices and financial-services offices that are about 70 percent occupied. That compares with about 89 percent occupancy for office space Valley-wide.
Most buildings look like they are two stories, but some have underground floors to accommodate office tenants.
Jeff Fine, a neighborhood activist that watches Camelback Road development closely, said the key issue has been the project’s height in an area zoned for no more than 56 feet. Neighbors are not generally opposed to redeveloping the area, he said.
"To allow height there is not only aesthetically inappropriate, but not with the general plan and zoning plan in the city," Fine said. Also, "when they (M3 Cos.) bought the property, they knew the restriction and limits on it."
Fine said that allowing a zoning exception takes away from the high-density core of Camelback Village, near 24th Street and Camelback Road, which allows for development of taller commercial and residential buildings. That area is filled with upscale office, luxury condo and high-end retail.
Joanna Peters, president of the Arcadia Camelback Mountain Neighborhood Association, said neighbors are watching the CamelSquare project because other developers are eyeing the area, too. She worries that if the project is approved, other tall buildings would be built.
"It’s a real neat plan. If he would just cut down the height, it would sit better with the neighbors," she said.
Schirmer is hopeful a resolution comes soon. Already, he said, his company has invested $1.5 million in the property bought in 2000.
"It’s a long, expensive process," he said. "The question is: What’s the alternative?" he said. One, he said, is lowering rents to fill up the office spaces in the underused corner.
But his project essentially seeks to create another luxurious corner for Camelback Road. Schirmer hopes he can start new and create nine home sites with lots that are 14,000 to 26,000 square feet to buffer current residents west of the project from the retail and office plans.
Then two- and three-story condos would follow to the east, and a 68-foot boutique hotel, the same height as the Londen building south of the project. The highest point would be the nine-story building for residential lofts above the retail and office spaces.
This article was found at: http://www.azcentral.com/arizonarepublic/business/articles/0228biz-camelsquare0228.html
Yvette Armendariz – The Arizona Republic
