Masa Kudo has been pleasing his loyal Kyoto Japanese Restaurant customers for nearly a quarter-century with sushi, teppanyaki and bargain lunches.
And while the front door of his dated downtown building may be just steps from the Arizona Canal, there was never a reason to tie the restaurant and water together.
But that’s about to change in a big way. The local businessman is embarking on a project that will significantly change the customer’s experience, while at the same time completing the last segment of private investment along a major stretch of the canal that’s already teeming with ritzy new developments.
By late next year, Kyoto customers will be dining in the shadows of the two Waterfront condo towers across the canal and the SouthBridge offices, restaurants and shops next door to the west.
And one day, patio diners may look next door to the east and see a city plaza and artistic bridge. High-end residences are expected to flank the newly landscaped canal paths to the east and west.
Kudo’s $4 million plans that have been in the works for more than two years will feature a new dining room and large outdoor patio on the building’s second level facing the canal bank. The building will also have offices and shops, as well as underground parking. The inside restaurant will increase from 4,000 square feet to 5,000 square feet, plus a 900-square-foot patio. Seating capacity will climb from 130 to 180, including the patio, Kudo said.
But Kudo, who has brushed aside attempts to buy him out, said what matters most will not be changing.
“It will be the same price, same menu and same value,” Kudo said.
Along with the private investment like Kudo’s, the city is kicking in taxpayer money for public spaces, bridges and walkways. These include the Marshall Way bridge and plaza that link the Waterfront and SouthBridge projects, along with paths, seating and viewing areas along the north and south banks of the canal between Goldwater Boulevard and Scottsdale Road.
The city is planning another public plaza just east of the Kyoto site with the proposed “Soleri Bridge” to be designed by famed architect Paolo Soleri, although funding for the bridge has not been allocated by the city.
East of Scottsdale Road, the Safari Drive condominium project is under way on the north side of the canal. To its east is the Reflections on the Canal town home project. And across from those projects on the south side of the canal, east of Scottsdale Road, is the proposed Waterview hotel and condo project. The preliminary plans include relocating the Salt River Project substation and demolishing apartments that today back up to the canal.
And sitting among the projects created by some of the Valley’s most prominent developers will be Kudo, who got his start working at Benihana in downtown Scottsdale between 1974 and 1982. After Benihana closed, Kudo started Kyoto a year later and has been in the same location ever since.
Kudo said construction is expected to start in September and finish about a year later. Meanwhile, Kudo will continue operating the restaurant in its current building. When the new restaurant is ready, the old building will be torn down and the office and retail section will be built.
“I think it’s one of the best places in Scottsdale bar none,” said Kyoto customer John Iannetta, who got a peek at the new restaurant drawings. “To take this to a level like that is amazing.”
Scottsdale assistant city manager Ed Gawf, who retired last week, said for the past few years the city has abandoned alleys along the canal as an incentive to encourage development, thus leading to private investment. Last week, the Scottsdale City Council voted 5-1 to abandon the 20-foot alley that will allow Kyoto to expand toward the canal.
Councilwoman Betty Drake praised Kudo for running a successful downtown restaurant for 24 years, saying he’s taken a lot of risk in staying at his location.
“He’s been through all the downtimes for all the years and now he wants to expand his business,” Drake said. “This is exactly the kind of project we should absolutely be supporting.”
Brian Powell, Tribune

















