Tempe says no demolition scheduled for Danelle Plaza, but changes are coming

PHOENIX – The city of Tempe recently released an update to address questions about plans to rejuvenate Danelle Plaza, home to the iconic Yucca Tap Room.

The most significant short-term development is that the historic shopping center’s signature murals are coming down, the city said.

The artwork, which local artists created on removable panels, will be moved to a storage area within Danelle Plaza or be displayed on an Apache Boulevard building.

The recent update also said that no demolition has been scheduled for the shopping center on the southwest corner of Mill and Southern avenues. However, several structures eventually will have to be removed for the sake of soil remediation.

Developers still working on Danelle Plaza plan

In February 2024, the city entered into an agreement with the plaza’s two primary private owners, Guina Affiliated Development and Desert Viking Development, to revitalize the property.

Developers are still working on an overall plan for the project, which will require significant private investment. The aim is to develop workforce and affordable housing plus retail, restaurant and entertainment options.

Local art and music are important elements of the development agreement, the city said. In fact, the parties are working with Yucca Tap Room, a longtime staple of the city’s live music scene, to create a park with an outdoor performance venue.

Danelle Plaza opened in 1963 and has been home to dozens of restaurants, bars and retail stores over the last 60-plus years.

It even housed a temporary City Hall while the Tempe Municipal Building was being built on Fifth Street near Mill Avenue.

In addition to Yucca Tap Room, the shopping center’s current eclectic roster of tenants includes the Double Nickles Collective record shop, Electric Bat Arcade and Skin Lab Tattoo & Body Piercing.

Tempe started buying parts of the property in 2011 with an eye toward redeveloping it.

The city is maintaining a web page filled with information about the Danelle Plaza project. Tempe residents can also sign up to receive email updates.

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