HX_Guy |
Oct 13, 2014 6:34 AM |
So this is really happening?
Quote:
Chicago developer to build Phoenix's tallest residential high-rise
Phoenix has selected a Chicago developer to build the city's largest and tallest residential high-rise in downtown, a 34-story glass tower that will change the city's skyline.
Plans for the massive development, known as Phoenix Central Station, include about 475 apartments, 30,000 square feet of commercial space and a dog park. It will meld those uses with a bustling transit hub already on the site at 300 N. Central Avenue.
Smith Partners LLC is expected to begin construction on the $82 million development by August 2015 and open its doors in 2017.
Phoenix leaders said Central Station will bolster the cultural and economic renaissance underway in the downtown core. The area has transformed in recent years as the city has invested heavily in a light-rail system and incentives to lure large developments.
Attracting more residents, officials said, is the next step toward attracting new amenities and keeping downtown's restaurants, bars and shops in business. David Krietor, CEO of the marketing and planning group Downtown Phoenix Inc., said the Central Station project has the potential to create an entirely new neighborhood within downtown, bringing more than 600 people to a lot that currently serves a limited purpose as a bus and light-rail stop.
"We really are beginning to develop an extremely vibrant place whose economic success, I think, is helping the rest of the city," Krietor said.
Phoenix owns the land and wanted a project that would integrate with the site's light-rail stations and create a urban environment friendly to residents, shoppers, pedestrians and bicyclists.
Councilwoman Kate Gallego, whose district includes parts of downtown, has emphasized the need to make the project walkable and appealing at the street level by including space for recreation and work areas for budding entrepreneurs.
"Some of the buildings we've built in our downtown have a more suburban feel," she said. "The more you can design the major street spaces to be attractive to pedestrians, the more vibrant it will feel, the more we'll get that active downtown feel that people are beginning to celebrate."
Deputy Economic Developer Scott Sumners said Smith Partners, which submitted the winning bid, has constructed nine similar high-rise projects in the Chicago area.
Potential rental rates in the tower, which will have luxury amenities, will be $800 for a studio apartment, $1,100 for a one-bedroom apartment and $1,600 for two-bedroom units, according to the proposal.
Phoenix leaders voted 6-2 to approve the terms of a development agreement earlier this month. The deal includes an incentive package that city officials said is necessary to attract downtown development on this scale.
As part of the deal, Phoenix will give Smith Partners a controversial tax-abatement incentive called a "government property lease excise tax," or GPLET. The agreement allows the developer to avoid paying certain taxes because the city will keep title over the building and grant the developer an exclusive right to lease the property back from the city.
The arrangement allows Smith Partners to not pay property taxes for 25 years; a city official estimated property taxes would be $600,000 to $900,000 per year based on conversations with the developer. However, the developer will make smaller lease payments back to the city and, after eight years, pay different taxes on those lease payments.
Councilmen Jim Waring and Sal DiCiccio voted against the project, saying they oppose the use of GPLETs. Critics say the incentive shifts the tax burden onto small businesses and homeowners.
"It's nothing about this project; I've just always been opposed to this method of financing," Waring said.
Supporters say GPLETs are one of the few tools cities have to promote economic development.
Overall, the city expects the project will generate more than $32 million in revenue over the first 25 years. The value of its incentives to the developer will be roughly $18 million to $25 million, depending on the GPLET estimated value.
"Land that currently generates zero revenue will turn into a commercial and residential high-rise and transit hub," Mayor Greg Stanton said.
http://www.azcentral.com/story/news/...lest/17177161/
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