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http://www.bizjournals.com/phoenix/n...phoenix-s.html

A Scottsdale development firm looking to build a 19-story apartment building on the Circles Records property near downtown Phoenix’s Roosevelt Row area continues to push for the project and a property tax break even as opponents dig in their heels...

The Circles Records building was built in 1946. It was previously home to the Circles record store and, before that, a Studebaker car dealership...

The developers are now calling the project The Stewart after the family that owned the Studebaker dealership...

But community critics to the project who don’t want a GPLET tax break for apartments and are upset with the demolition work still aren’t convinced.

“I don’t want to reward bad behavior,” said Stacey Champion, owner of Champion PR + Consulting, a Roosevelt Row-based public relations firm.

They have been used extensively for office and commercial developments but not as much for apartment projects...

Jordan Rose said the developer has been open to funding historic preservation in the downtown area and finding a way to incorporate the neighborhood's history into the apartment building...

Another lead Circles skeptic is Sherry Rampy, president of the Roosevelt Action Association, a Roosevelt Row community group.

Sherry Rampy says she’s not against developers or development.

“I’m a friend of developers,” said Rampy...

But Rampy isn’t a fan of the controversial Circles Records redevelopment.

Rampy said she would like to see an annual $150,000 allocation for historic preservation and a possible museum incorporated into ground-level commercial space.

The two camps in the Circles debate differ on what kind of requests, commitments and then lack of commitments have occurred when it comes to preservation funding and a potential museum space...

Rampy recently wrote to Empire/Aspirant principal executives Richard Felker and Geoffrey Jacobs offering to back an apartment GPLET but at another site.

Rampy’s offer calls for Empire/Aspirant to sell the Circles building for $1.5 million with a historic preservation designation.

That would be at a loss. Rampy said she would help the developers buy another property for their apartments. She estimates that will cost $3 million.

So, what’s in it for the developers?

They could then qualify for the GPLET which could offer them tax savings, Rampy said.

Under her scenario, the developers would net $4.5 million counting the tax break, the new land purchase and the Circles sale at the loss.

Jacobs emailed Rampy back last month declining the offer saying there is already financing set up for the 19-story apartment project...

There could be some movement from skeptics on the GPLET front if the tax benefit is tied exclusively to current ownership.

They worry Empire/Aspirant will sell the Circles property soon after getting the property tax break.

Rose said the developers want to develop apartments and own the project and not flip the prominent property.

“They will absolutely agree to fully construct and own the building – that is their business and they have been very successful over the last 50 years,“ Rose said. “This is not a flip situation.”