ASU Diablo |
Oct 25, 2022 5:35 PM |
Valley firm becomes master developer of South Phoenix food innovation center
Breaking ground today! Plaza Cos (Skysong development) is also the master developer so hopefully this project becomes a success for this part of town.
https://www.bizjournals.com/phoenix/...h-phoenix.html
Quote:
The developers of a food innovation center and international market in south Phoenix are set to start construction on Tuesday, about two years after its initial plans received approval from the city.
Called Arizona Fresh: Agri-Food Innovation Center, the 1.2 million-square-foot facility will comprise a produce distribution center, year-round farmer's market, community park, new retail buildings and a business park for agricultural education and research facilities. It's expected to create 1,500 jobs.
The more than $200 million project will be built on 140 acres at the Del Rio former landfill site and former city park south of downtown Phoenix along Elwood Street between 7th and 16th streets. It's also located south of the Salt River and is the first development for Rio Reimagined, a plan pioneered by late U.S. Sen. John McCain to revitalize dozens of miles along the Salt and Gila Rivers.
The center could be the first of its kind in the Valley and is being developed by Arizona Fresh Holdings LLC, an organization the city chose in a request for proposal process, and Peoria-based Plaza Cos., a longtime Valley real estate firm that was brought on as the master developer of the project last year.
Arizona Fresh tackles food desert issue
The project could help fill a need in this particular area of the city, which is known as a food desert due to a lack of fresh or healthy food options within a close distance, but also help bring jobs, technologies and place for local entrepreneurs and both regional and local growers and distributors to operate.
"South Phoenix has been underserved and unserved in many ways, for many years, and there are challenges associated with that. We see the quality of life in this part of the city is not what it should be," Todd Hardy, a manager for Arizona Fresh Holdings, told the Business Journal. "We know there are challenges but we think that this can be a large part of the solution for south Phoenix."
Phoenix City Council approved plans to redevelop the longtime former landfill in October 2020 and since then has worked with the developer to figure out the infrastructure for the project and the former landfill site. The city is also reimbursing the developer up to $20 million to build out a new public road on the site. Final agreements with the city were signed in September.
Merge Architectural Group and Raintree Design Group are the architects. Arizona Fresh said it's in the process of choosing a general contractor. The first phase of the facility is expected to be completed in five and half years and includes the road, called Arizona Fresh Parkway, a wholesale produce market, an office and community farmer's market.
Redevelopment of landfill nearly 30 years in the making
The first time the city posted a request for proposal for the site was in 1995, said Chris Mackay, the city of Phoenix economic development director. She said they have received proposals including industrial facilities, a golf course and even a snow skiing hill, but it wasn't what residents wanted.
"The community was really clear with us what they wanted to see on that former landfill, and it wasn't a big industrial development," she said, adding that residents wanted jobs, open space and retail. "They wanted to be really connected back to this site that separated them and the river that had been so integral in the 1800s and 1900s in the development of Phoenix."
The city said it started working with Arizona Fresh in 2018 and that the project could serve as a "prototype" for turning a landfill into its next life. It will also include an amphitheater, a new 20-acre park and road that stretches along the river, hiking and biking trails, event space and more.
Over 20 years, Mackay said the city expects to see a more than $800 million economic output from the facility between the incubator and research park, wholesale food market, industrial buildings and retail. The city is also expected to receive $3.5 million annually in tax revenue.
Sharon Harper, the CEO of Plaza Cos., said she was approached to be part of the project last year. Plaza Cos. is known for developing well known projects across the Valley including the SkySong development, a large mixed-use project in south Scottsdale.
"I think this is such a significant project for our region, and in particular for this location. The vision that the Arizona Fresh partners have to bring this produce into Arizona and this part of the United States versus going to LA or Texas and losing some days, that's number one," Harper said. "Secondly, the whole innovation around the food industry and distribution is something that Arizona wants to be on the front end of and very interested in."
In addition to the anticipated benefits of the project, Hardy of Arizona Fresh said it could also enhance Arizona's trade relationship with Mexico.
"The fact that we'll be bringing in food from Mexico, from other places too, but largely from Mexico, in an efficient way and reducing the waste that occurs at the border today, providing more of an outlet for growers in Mexico ... I think is bound to help the relationships between the two countries," he said.
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