I will be very anxious to see how another 750 +/- residents and cars will affect traffic in the area. Traffic in and around Scottsdale Fashion Square is already busy so what happens if these condos get built? We will see….

This group of opposition has been described by local news sources as the sign spotting patrol. Meaning, they drive around specifically searching for zoning boards on undeveloped parcels of land. It is very important for the public to be involved in the development process, as many projects are partially funded by taxpayers. But in this case, which started as a routine NIMBY (Not In My Back Yard) situation, recently escalated into a key legal battle that could shift zoning power between government and public.

Paul Johnson, CEO of Berkana Homes, a local real estate developer had plans to build a 517-unit apartment complex on a 27-acre parcel. The land is currently zoned for acre lots, while Johnson attempted to rezone it to allow density up to 20 units per acre. Johnson has several other Berkana projects popping up all over the city. Randy Jones and his group collected enough signatures to force a referendum against rezoning the land.

I have copied and pasted the actual text from the AZ Central article from October 5, 2008 for a detailed description of the legal issue.

“Jones’ legal case against the city – and, by extension, the ease with which higher-density projects will be built in some large Arizona cities – hinges on how many signatures are needed to force a referendum. Phoenix’s charter says a resident needs a number of signatures equal to 10 percent of the total number of votes cast in the most recent mayoral election. In this case, that would be 9,798 signatures. Jones argues that the Phoenix charter conflicts with state law, which says a resident needs signatures equal to 10 percent of the votes cast in the last election “at which a mayor or councilmen were chosen.” Phoenix approved the Laveen case shortly after a runoff election in which two council members were elected. Turnout was much lower in that election because only residents of the two council districts in which candidates were running were eligible to vote. Using the runoff turnout as a standard, Jones would need only 2,727 signatures to qualify for the ballot – less than one-third as many as Phoenix required. He turned in about 7,500. In April, a Maricopa County Superior Court judge sided with Jones. If upheld, the judge’s ruling would allow Jones’ referendum to go forward and add a confusing new wrinkle to the referendum process. In essence, for cities that elect their councils by district, the threshold for how many signatures are needed to refer a question to the ballot would depend on which offices were contested in the most recent election. If it were a mayoral election with high turnout, the threshold would remain much like it is today. But if the most recent election were a council election or runoff, the threshold could be much lower. The ruling would affect at least two other large Arizona cities, Mesa and Tucson, that elect their councils by district and have language similar to Phoenix’s in their charters.”

In essence, if Jones wins this case, and the balance of powers tips closer to the residents, several high-density, mixed-use projects will have a much tougher time getting approved. The last hearing was September 24, and a ruling could come at any time, putting many projects already in limbo for financial reasons in more trouble. What I want to know is if Jones needs signatures, regardless of amount, from residents who only reside in Laveen, or from the entire City of Phoenix. I personally think if this number required for a referendum, 2,272 is approved, then you must obtain that amount by residents only of the village, not the entire city, population: 1,512,986 (2008). Like I previously stated, I am all for neighborhood involvement, just not giving them more power, as they are not the experts.

The Urban Land Institute conducted a Realty Check here called AZone in May, which brought together hundreds of experts from the public, private and educational industries. During this daylong session, mayors, professors, city planners and developers broke into smaller groups and envisioned a growth pattern for the future of Central Arizona using colored legos on massive maps. Consensus was that areas within 10 or 20 miles of the downtown core should increase density to survive the population growth, while preserving the remaining desert. This project is approximately 5 miles from downtown Phoenix.

Under Construction and still on track to finish:

27-Story Office Tower with Wachovia as anchor tenant.  Well Fargo is in talks to buy the bank, but already has a tower in downtown Phoenix.

34-Story Hotel and Condo Tower: 250-room Hotel Palomar & 165 Luxury Condominiums

Retail Plaza with tenants: A.J.’s Fine Foods Grocery, Urban Outfitters, Golds Gym, and potentially a drug store.  A steakhouse by Fox Restaurant Concepts will replace the P.F. Chang’s, but P.F.’s could be added on to the project down the road.

Put on hold until the market recovers:

Two towers consisting of 1000 condominiums and a 150-room boutique TWELVE hotel.  This was planned for the eastern block between 1st & 2nd streets.

The 65 apartments units above the retail plaza on the western block between Central Ave & 1st Ave have been halted as well.

Above is a site plan from earlier this year.

As this news does come at an unfortunate time, the Cities of Phoenix, Tempe and Mesa are all ready for the Light Rail opening this weekend and expecting very large numbers to be out.  Go check it out everyone, it is the future of travel not only here, but in every major metropolitan area.  Phoenix is a little late to get it, but it is better now rather than 10 years from now when we are projected to grow by a couple million.  Not only will it be great way to experience the jewel of public transit, but you will also get to be a part of a major transition in the shaping of our future.

As oil and other resources rise in price for a particular society, they are more or less forced to grow in denser environments, with an emphasis on mass-transit.  In most urban environments, rail (subway or light rail) acts as the nervous system of the city and also serves as a catalyst for urban, mixed-use, transit-oriented developments.  As you can see, many quality projects in Phoenix are unfortunately scaling back and even canceling completely.   However, that doesn’t mean something great won’t replace it in the future.  The land near the Light Rail line is too valuable to not utilize the new zoning standards (TOD Overlays and Form-Based Code: more information on that in previous posts) to their fullest extent.  I believe it is inevitable that the LR will spur mixed-use developments all along the starter line and even the future extension areas will see some vertical growth in the coming years.  As for Cityscape, the project will soon glow on the southern edge of the skyline, but not as quickly as previously hoped.

The developer has purchased numerous parcels that form a slim 11.5-acre site abutting the canal to the north. Developers of the project are not only asking for the multiple parcels along the canal to be rezoned, but are also requesting for the abandonment of an alley on the northeast corner of 68th St. & Indian School Rd. The reasoning behind the abandonment of the alley is because an electrical substation currently resides on a portion of the 11.5-acre “Solis” site. If the abandonment is approved, the substation can be relocated to the northeast corner of 68th & Indian School Rd., another property owned by the developer, for obvious reasons.

Scottsdale Canal Development, LLC, developer of the project is requesting the rezoning of the 11.5-acres to allow a mix of uses and buildings up to 72 feet tall. The proposal includes a 241-key, Solis Hotel and Resort, 141 residential condominiums, 16 single-family penthouses, a spa, restaurants and other amenities. The Solis Hotel and Resort brand is a small ultra-luxury hotelier, with only a few locations in the world. The Scottsdale Location will only be the second hotel in the country to Sunny Isles, Florida and hopes to earn 5 stars. Check out the website: www.solishotels.com

In August, Scottsdale City Council considered a formal request to reject the relocation of the substation, but decided to let the Planning Commission review it first. The developers also appeared before the Development Review Board earlier this month, but only discussed plans for the Solis site. They will now appear in front of the Scottsdale Planning Commission on Wednesday at 5:00pm, to discuss the rezoning and the abandonment of the alley.

Well, plans have changed.

The City of Scottsdale has approved new plans to scrap the condos in exchange for building a 125 room extended stay Element Hotel. Element is a Westin product and a member of the Starwood Hotel chain and is reportedly an environmentally friendly hotel with full kitchens and guest rooms.

The multi-billion dollar mixed-use development is nearing completion of its first phase in North Phoenix, just north of the Loop 101 and west of 56th Street. The developers also announced this week that Pioneer Stores USA, the electronic giant will open its 2nd U.S. store at CityCenter of CityNorth. The remaining phases will include hotels, major retail, offices and more residential condos with a 8+ year build-out. A majority of the retail, which includes a Nordstrom, Macy’s and Arizona’s first Bloomingdale’s, will break ground next year and open in late 2010. Also part of the North Phoenix/Scottsdale raw land corridor, CityNorth is the first to open between its rivals to the east, Palisene and One Scottsdale.

Out of the current 99 condominiums, 60 of them will be initially available for lease, while the remaining 39 units are still for sale, starting at $465,000 up to more than $1 million. The rentals will virtually offer the same package of amenities that a buyer would get, but renters will sign either a six, nine or 12-month lease instead of a deed. Renters can expect to pay around $2 per square foot per month, according to the developer. Analysts believe that number is high for this market, where the 750 SF, one bedroom apartment would rent for $1,500 per month.

Check out their website for more info: citynorthaz.com

Check out these projects that are true infill developments and will contribute to the walkable, neighborhood feel that the land-locked City of Tempe is striving for.

Farmer Avenue Lofts:
Location: 3rd St. & Farmer Ave., Tempe
Units: 18
Square Footage: 2,440 – 2,610
Price: $745,235 – $768,600
Details: Each unit is three stories with a 2-car garage and either two or three bedrooms. Some units are zoned for live/work, perfect for attorneys, artists, architects, to name a few.

675 South
Location: Roosevelt & 6th St.,
Units: 12
Square Footage: 10 units at 1,573 SF & 2 Live Works Units at 1,641 SF
Price: Starting at $419,000, sales being Spring 2009
Details: Very contemporary design on inside and out, with European style kitchens. Units are clean, sleek and efficiently designed using sustainable materials and innovative features. Constructions is under way and sales are expected to start Spring 2009.

Spence Avenue Townhomes
Location: Rural Rd. just South of Apache Blvd., Tempe
Units: 22
Square Footage: 1000-1800
Price: “In the range of $249,000”
Details: A great location for ASU students or faculty, seven units have elevators. Developer plans to break ground by the end of the year and have the first units ready for the beginning of Fall Semester for ASU.

Named, SouthBridge Canal Walk, these residences will be four stories tall (one story below ground and three above overlooking the canal), ranging from 3,700 to 6,400 square feet with prices from $4 to 6 million.

The project was designed by Alan and Gary Lamb of Lamb Architects and is being developed by a partnership of Gary Lamb, Ted Lamb, Kenn Francis and Fred Unger. They expect to break ground late 2008 and finish construction by mid-2010.

It’s hard for us to imagine people paying that kind of money for this product in light of sales at Scottsdale Waterfront, Optima Camelview Village, Safari Drive Lofts and Residence at W Scottsdale going so slowly. We don’t see much demand for the existing condominiums in the area so what would it take for Scottsdale Canal Walk to succeed? The idea reminds me of the Chateaux on Central debacle except that the Scottsdale location is arguably superior to that of Chateaux’s.

We would love to see Scottsdale Canal Walk succeed. However, we will remain sceptical until we see some major movement in the sale of the neighboring condominium communities.

The structure will include 5,000 square feet of retail space on the ground floor and 7,000 square feet of office space on the second floor.