PHOENIX — The City Council has approved a deal to pay nearly $100 million to ensure shoppers, office workers and public-transit patrons have a place to park at the planned $2 billion CityNorth luxury development.
The City Council voted 7-2 Wednesday for the agreement, which offers one of the largest sales-tax rebates in Arizona.
Although the agreement will be penned as a 50-year lease for spaces at parking garages in the 144-acre project, it is a $100 million incentive for developer Thomas J. Klutznick to elevate the quality and density of the project.
The CityNorth development broke ground last month and promises upscale department stores, such as Nordstrom, luxury specialty boutiques, resort-style hotels, fine dining, condominiums and high-end office space.
City planners expect the development will generate about $200 million in sales taxes over the next decade for Phoenix and some $600 million for the state. They plan to rebate 50 percent of the city’s share either up to $97.4 million or for 11 years, whichever comes first.
Information from: The Arizona Republic, http://www.azcentral.com
