The city of Phoenix has accepted a proposal for the redevelopment of the 2.6-acre Central Station transit depot at Central Ave. and Van Buren St.
The proposed facility features two skyscrapers – a 30-story tower and an 18-story tower.
The proposal, submitted by Electric Red Ventures L.L.C., is intended to be a multi-use facility. Electric Red Ventures is a subsidiary of Houston-based Medistar Healthcare Connections Corporation.
“It will include components for a hotel, for student housing, for residential units at market rate,” said Gretchen Wolfe, the city’s CEDD procurement manager. She added that the site will also have underground parking; a ground floor for retail, restaurant, and grocery use; and an office space.
In June, the city issued a Request for Proposals through its Community and Economic Development Department (CEDD). The city asked for an evaluation panel to come to a decision about the leasing and redevelopment of the transit depot on Oct. 8.
This is the second time the city has issued an RFP for this parcel of land.
In 2014, the city had a proposed agreement with Smithfield Properties to build a $72 million, 34-story complex in the same spot. The deal fell through after Smithfield owner, Bill Smith, passed away.
One of the major differences between the previous RFP and the current RFP is that the city is now seeking to lease the property as opposed to selling the property, which is what they sought to do in 2014.
“What changed for us is we’re looking at doing a lease instead to create a revenue stream over decades,” Wolfe said.
The site of the development is in the center of downtown Phoenix, minutes away from Chase Field, Talking Stick Resort Arena, and Arizona State University’s Downtown campus. The lot also has two light rail stops and a bus depot.
“I want to reiterate that this, first and foremost, is a transit site,” said Nathan Wright, program manager with Phoenix’s CEDD. “We had to make sure that whatever development proposed would benefit the transit, the light rail, and the bus that was already on the site.”
With this development being located in a concentrated area surrounded by major businesses, the team is still looking for ways construction can work around it.
“This site inherently is challenging because it’s in between two light rail lines. There are not many places in our city that have that,” Wright said. “We’ll be reaching out to the surrounding property owners and interested parties to discuss some of that interim and how that will affect those property owners.”
“This site for the city is so important, it is one of our best developable sites left in the city,” Wright said. “It provides a true mix of uses that the community, the downtown area, is really going to love.”
The city is still finalizing negotiations with Medistar, and will need to get preliminary approval from the Federal Transportation Administration.
There is currently no timeframe set for the project.
Contact the reporter at bsimons2@asu.edu.
