The city of Chandler is teaming with a Chandler-based developer to plan and build a $300 million mixed-use project in the heart of the historic downtown district.
Desert Viking Cos. is one of two developers that responded to a city-issued request for proposals in May. The City Council voted unanimously this month to negotiate a development agreement with the firm. Desert Viking already owns large chunks of downtown land and is building San Marcos Commons, a 15-acre mixed-use project that will include luxury townhomes as well as retail and office space.
The company and city also plan to split the cost of hiring an outside land-use planning consultant to help iron out the development agreement.
While the city’s initial request sought development ideas for a 5-acre parcel at the northwest corner of Arizona Avenue and Chicago Street known as Site 6, Desert Viking and the city have agreed to expand the project to include two adjacent parcels, of which Desert Viking owns a majority share. Combined, the project now totals about 15 acres just south of Chandler’s historic square.
Teri Killgore, Chandler’s downtown redevelopment manager, said city officials embraced Desert Viking’s initial vision, which featured a dense mix of residential, retail and office uses, plus a 25,000-square-foot city museum and a parking garage — but were concerned with "circulation issues."
"It’s not entirely back to the drawing board," she said. "They were the first to say this was just one possible solution. There are a million ways to slice this pie."
Desert Viking partners Niels Kreipke and Michael Hogarty agreed the plan needs work, and said the revised version likely will include provisions for a 40,000-square-foot conference center, a 200-room hotel and a total of 600 residential units.
City planners have given Desert Viking until the end of the year to revise the site plan and nail down project components to submit to the council.
"We really think this will create a 24/7 environment where people live, work and play," Kreipke said. "This will bring the urban lifestyle to the East Valley."
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