| ASU Diablo |
Dec 13, 2022 6:13 PM |
Proposed office complex, headquarters could bring 1,100 jobs to Valley
Interesting! Good news for the Valley.
https://www.bizjournals.com/phoenix/...-proposed.html
Quote:
The city of Phoenix is considering a development agreement for what the city says could be one of the first large-scale office announcements in the U.S. since the Covid-19 pandemic.
The new development is expected to include a 32-acre office campus with a 300,000-square-foot facility developed by Chevelle Properties LLC.
The first phase is estimated to total a $198 million investment and create or retain 1,100 high-wage jobs, according to a city report, which does not identify the developer or the potential company considering Phoenix for its headquarters due to a nondisclosure agreement.
Through codename "Project Christmas," the proposed development is associated with an upcoming Arizona State Land Department Auction scheduled for Dec. 27, according to state land documents. The state land department is holding an auction for about 35 acres close to the southwest corner of Tatum and Mayo boulevards for a minimum bid of $29.4 million.
The property is located in close proximity to the Desert Ridge Marketplace and the Mayo Clinic campus in north Phoenix near State Route 51 and Loop 101. The developer is currently undergoing due diligence on locations in the city of Phoenix, while a final site will be selected before they enter into a development agreement, according to the city report.
City documents say the developer is a "national leader" in its industry with annual revenue in the billions with thousands of locations across the U.S. It also says the "established and well-known" company will be able to call Phoenix home and provide thousands of jobs to residents. It's unclear if the developer and company are separate entities.
"Nationally this project would be one of the first large-scale office employment announcements since the pandemic and signifies a return to normal business and recovery from the Covid-19 pandemic," the city report added.
City to vote on development agreement
On Wednesday, Phoenix City Council is scheduled to vote on a development agreement with Chevelle Properties LLC to reimburse the developer for up to $5 million in public infrastructure improvements to support the new office project and surrounding area.
According to the Arizona Corporation Commission, Chevelle Properties LLC is connected to Phoenix law firm Salmon, Lewis & Weldon PLC and Harvard Business Services Inc., a business incorporation service in Delaware.
The public infrastructure improvements include street frontage and intersection upgrades, water and sewer main extensions along the frontage of the project and any other floodplain or other regional traffic improvements, city documents said.
The reimbursements will be funded annually through the city's strategic economic development fund and general fund portion of eligible transaction privilege tax revenue generated from the site for 10 years.
"These taxes shall be comprised primarily of the taxes relating to the construction and installation of the public infrastructure improvements, private infrastructure improvements, and build-out of the project," the city report said.
The development agreement will end a decade after the project is completed and city's acceptance of public infrastructure improvements.
The new office facility could be one of the largest proposed in recent months. Across the Valley, new class A office buildings have been proposed or completed in cities including Peoria, Goodyear and Phoenix. In addition, demand for premium office space has continued to stay strong, with the bulk of the Valley's leases signed in Q3 at class A properties.
RED Development's new The Grove project, a 180,000-square-foot office building in Phoenix's Arcadia neighborhood, is now fully leased to companies such as Sendoso, Clayco, Clear Sky Capital and more.
At the same time, technology companies including Tempe-based Carvana have continued to announce or plan mass layoffs across the U.S., but it's unclear how this has impacted the Phoenix metro.
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