Developer’s proposal for downtown entertainment district halted

(Nicole Neri/DD)

A proposal for a multi-block cultural and entertainment district in the middle of downtown has been halted to allow more time to arrange details and gather community input.

The city of Phoenix Downtown, Aviation, Economy, and Innovation Subcommittee voted to withdraw a request Wednesday from a Houston-based development company called Hines to redevelop large areas of downtown. Members of the subcommittee said the proposal from the company wasn’t dead yet; they just wanted more time to consider it.

Hines submitted an unsolicited proposal to build residential, office and commercial buildings along Third Street from Van Buren to the Talking Stick Resort area in December 2017. The proposed district would also include components like a Latino cultural center and a youth theater near the Herberger Theater Center.

Phoenix Vice Mayor Thelda Williams objected to the proposal, stating the city didn’t have enough details about the plan. She and other city leaders said the development could be reconsidered in the summer or fall after the city has more time to review the plan.

District 5 Councilman Daniel Valenzuela, who is a chairman in the subcommittee, also voted to withdraw the proposal that would have enabled Hines to buy several properties needed in the area to recreate the district.

Nick Wood, a land use lawyer from Snell and Wilmer who represents Hines, expressed disappointment, saying the Hines development would take an already emerging downtown to a higher level. He said it would create “an area not only for people who come from point A to point B, but a place where they can spend some time.”

He argued the proposal could create a more pedestrian-friendly downtown while balancing corporate and inner-city lifestyles.

District 7 Councilman Michael Nowakowski said he would have voted for the proposal if it did not involve the parcel containing the Phoenix Convention Center’s south building.

Right now, a number of the local downtown activities including fundraisers, R.V. shows and special dinners are held at the south building. The building generates over $2 million in revenue for Phoenix.

The proposal also received pushback from the downtown community, which called for more dialogue and discussion. The Downtown Voices Coalition urged city leaders to delay approval of the proposal to give more time to discuss a project that could have huge impact on the future layout of downtown.

“The process leaves too many unanswered questions about the impact such development would have on the interests of businesses, the community and others who rely on a vibrant downtown,” Tim Eigo, chairman of DVC, wrote in a recent letter to city officials.

Hines currently owns Renaissance Square in downtown Phoenix and five other properties in central Arizona.

Contact the reporter at mmartis@asu.edu.