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  #17861  
Old Posted Sep 20, 2020, 5:15 AM
michael85225 michael85225 is offline
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I like the density in the last photo. Adeline and Block 23 have really transformed that area!
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  #17862  
Old Posted Sep 24, 2020, 2:24 PM
Obadno Obadno is offline
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Do we know what corner this is going on?? NW/SW?

Phoenix approves controversial tax incentive for proposed downtown tower

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Phoenix City Council approved a controversial tax abatement for a developer in downtown Phoenix — the first since the city lost a lawsuit over the incentive relating to another high-rise in downtown.

On Sept.16, the city approved a Government Property Lease Excise Tax, or GPLET, transaction for the development of a 19-story, 375-unit apartment project that will include 6,000 square feet of commercial space and 144 parking spaces planned for Second Avenue and McKinley Street. According to city documents, a minimum of 10% of the units will be designated for workforce housing.

The GPLET agreement would give the city title to the project after construction for an eight-year period. With the city holding the title, the property is not subject to property taxes.

In June, Maricopa County Superior Court judge ruled against the city’s use of the incentive in a 25-year GPLET case, ruling that it violated the state’s gift clause and unfairly benefitted the developer, which was also developing an apartment complex in downtown. That project was Derby Roosevelt Row — proposed by Amstar in 2015 — that would cost about $36 million to build. The 19-story tower would include 211 micro-unit apartments and 4,500 square feet of commercial space at the corner of Second and McKinley streets.

The GPLET statute has since been amended to only allow an eight-year period for those receiving full property tax abatement.

Nick Wood, a partner at Snell & Wilmer and lawyer for the developer of the project, XSC Acquisitions LLC, said he had studied the June ruling very closely and said he had addressed all the concerns from the ruling and defined the issues within the development agreement.

$92M construction cost
According to city of Phoenix documents, the project, called X Basecamp will cost about $92 million to build and will generate one-time construction sales tax of $1.025 million and annual commercial rental tax of $170,000. X Basecamp will be developed by the same developer as Society Phoenix on Monroe Street and Third Avenue.

“Now we’ve addressed all the underlying concerns, we will pass constitutional challenges,” Wood said.

The incentive is useful when encouraging development of high-rises, he said, because they are inherently riskier than a mid-rise wood frame building and take longer to lease and stabilize from a financial perspective.

“You’ve got a construction loan, but you aren’t bringing in any revenue,” Wood said. “The usual return on a high-rise is about 5 to 6%, and the GPLET adds about 1% to that. The capital markets say that 1% makes a difference.”

The Goldwater Institute, which represented the plaintiff in the June GPLET case against the city, sent a letter to City Council after the vote on the XSC Acquisitions case urging the council to disapprove of arrangements involving GPLET. The Goldwater Institute also listed another forthcoming case by Hubbard Street Group requesting a GPLET for a 26-story apartment project.

“By approving such deals, the city is exposing itself to another round of litigation by aggrieved taxpayers, including our clients,” Jon Riches, director of national litigation for the Goldwater Institute wrote in the letter.
https://www.bizjournals.com/phoenix/...own-tower.html
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  #17863  
Old Posted Sep 24, 2020, 2:40 PM
Phxguy Phxguy is offline
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^^I think that’s X Basecamp, south of the house on the SE corner.
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  #17864  
Old Posted Sep 24, 2020, 2:41 PM
BA744PHX BA744PHX is online now
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Quote:
Originally Posted by Obadno View Post
Do we know what corner this is going on?? NW/SW?

Phoenix approves controversial tax incentive for proposed downtown tower



https://www.bizjournals.com/phoenix/...own-tower.html
X Basecamp is 1 lot SSW corner of 2nd Ave & McKinley
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  #17865  
Old Posted Sep 24, 2020, 3:19 PM
Obadno Obadno is offline
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So this lot?
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  #17866  
Old Posted Sep 24, 2020, 3:30 PM
Phxguy Phxguy is offline
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Quote:
Originally Posted by Obadno View Post


So this lot?
That’s it
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  #17867  
Old Posted Sep 24, 2020, 3:43 PM
Diamonddave Diamonddave is online now
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It's nice to have at least a little news at the end of this quarter. Hope this project can get by all the legal stuff.
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  #17868  
Old Posted Sep 24, 2020, 4:20 PM
az_daniel az_daniel is offline
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that lot is fenced off and there is a mockup and some equipment on site. Is it currently staging for another project? The mockup looks a lot like the ASU dorm tower.
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  #17869  
Old Posted Sep 24, 2020, 5:10 PM
IndyAZ IndyAZ is offline
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Quote:
Originally Posted by az_daniel View Post
that lot is fenced off and there is a mockup and some equipment on site. Is it currently staging for another project? The mockup looks a lot like the ASU dorm tower.
Correct, DPR is currently leasing the site as their construction yard for the ASU Dorm Tower. The developer also just closed on the property last week, so that's good news too. I expect this to break ground Q1 2021 since they are probably just starting final design now that they have purchased the property, so that will be at least a few months to permits.
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  #17870  
Old Posted Sep 24, 2020, 7:43 PM
ChaseM ChaseM is offline
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Here's a recent video of a morning drive Downtown. Jefferson looks great with Adeline, hopefully something involving Barrister and that block comes to fruition, would be nice to fill in and create a full urban canyon right in that area.

Video Link
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  #17871  
Old Posted Sep 24, 2020, 8:12 PM
BA744PHX BA744PHX is online now
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Quote:
Originally Posted by ChaseM View Post
Here's a recent video of a morning drive Downtown. Jefferson looks great with Adeline, hopefully something involving Barrister and that block comes to fruition, would be nice to fill in and create a full urban canyon right in that area.

Video Link
Hey Chase, link doesnt work
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  #17872  
Old Posted Sep 24, 2020, 8:16 PM
biggus diggus biggus diggus is offline
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Quote:
Originally Posted by BA744PHX View Post
Hey Chase, link doesnt work
This is the link he posted: https://www.youtube.com/watch?v=https://www

Looks like just a simple copy and paste error. I'm guessing this is the link he meant to post:

https://www.youtube.com/watch?v=_RU1IOuj6ls
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  #17873  
Old Posted Sep 24, 2020, 8:59 PM
ChaseM ChaseM is offline
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Quote:
Originally Posted by biggus diggus View Post
This is the link he posted: https://www.youtube.com/watch?v=https://www

Looks like just a simple copy and paste error. I'm guessing this is the link he meant to post:

https://www.youtube.com/watch?v=_RU1IOuj6ls
Sorry, yes that is the video I meant to post. Oddly it worked in the preview before I posted. Hm!
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  #17874  
Old Posted Sep 24, 2020, 11:17 PM
MMDelon MMDelon is offline
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Very good article. Just read the news about the Hubbard project too.
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  #17875  
Old Posted Sep 25, 2020, 1:43 AM
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CrestedSaguaro CrestedSaguaro is offline
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Quote:
Originally Posted by MMDelon View Post
Very good article. Just read the news about the Hubbard project too.
If you're referring to the $100,000 offer of a donation, these guys are really want to build Garfield House!

For those that haven't read yet: https://kjzz.org/content/1621205/dow...uncil-tax-vote
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  #17876  
Old Posted Sep 25, 2020, 2:48 AM
MMDelon MMDelon is offline
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They really must want to build that tower. I don't hear developers donating $100,000 like that. That piece of real estate could serve dividends but I hope they keep the historic nature of that neighborhood like they did with Roosevelt down the street.
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  #17877  
Old Posted Sep 25, 2020, 2:58 AM
MMDelon MMDelon is offline
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I also love this idea of having developers offer donations so that the city or a nonprofit could use that money for workforce housing. The Garfield House is going to have 10% of residential units for workforce housing. This may be the trend going forward if the city wants 50,000 affordable units by 2030, this is a great way to do it.
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  #17878  
Old Posted Sep 25, 2020, 3:11 AM
Diamonddave Diamonddave is online now
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The rendering looks good, Will they also be requesting a height extension for that area?
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  #17879  
Old Posted Sep 25, 2020, 5:52 AM
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TakeFive TakeFive is offline
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Quote:
Originally Posted by Obadno View Post


So this lot?
I don't care about the lot; I want to see a rendering.
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  #17880  
Old Posted Sep 25, 2020, 1:58 PM
PHXFlyer11 PHXFlyer11 is offline
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26 stories is great! I thought we were almost out of the 18-20 story range but X Phoenix is keeping us there still. Would be nice to move to 22+ permanently as the new standard.
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