A plan to transform one of the biggest vacant lots downtown into a large residential development moved ahead on Wednesday after a city council subcommittee vote approved it.
The Phoenix City Council Downtown, Aviation and Redevelopment Subcommittee approved the idea of developing the 7.4 acres south of Fillmore Street between Fourth and Sixth avenues. The next step is the approval of a Request for Proposals by city council.
Scott Sumners, deputy economic development director, said this was a milestone in the journey for development in that area.
“We have an opportunity to turn what is almost exclusively vacant property into activated properties,” Sumners said. “It will generate about $100 million in capital investment and really make the west side of downtown very much improved.”
A city report said Phoenix will own the land by the end of February, and proposals for development will be presented to the city and the Phoenix Industrial Development Authority (IDA) in March. Phoenix acquired this property through several transactions in the past five or six years, Sumners said.
Downtown Phoenix has seen an increased interest in developing residential areas in the past several years.
With help from community and neighborhood leaders, the project, which could include apartments, condominiums, town homes and affordable housing, may house up to 1,000 residents. The project would also include retail developments and possibly a new school.
“The west side is just as important (as the rest of downtown) and I think this could really showcase this prime piece of property,” District 1 Councilwoman Thelda Williams said.
City staff collaborated with the Downtown Phoenix Community Development and Investment Corporation, the IDA, six neighborhood representatives and other community members to create this study.
City staff and consultants estimate the development will take several years to complete, but proposers will be able to give offers once city staff has given an appraisal. The team said they would be flexible with new development ideas as long as they meet the criteria.
“There are developers who specialize in different kinds of projects,” Sumners said. “I think the developer’s team are going to have elements of all of those (specializations), so they can pull from that expertise.”
Staff will include information outlining IDA’s investment in the property, and proposers will be required to provide a financial return that exceeds IDA’s minimum threshold on its investment.
The RFP will be open for proposals for no less than 60 days, then proposals will be evaluated by the city, IDA staff and community representatives.
“I’m confident that it’s going to be done correctly and it’s going to impact this area,” District 5 Councilman Daniel Valenzuela said. “It’s good for Phoenix.”
Contact the reporter at hnchrist@asu.edu
