ARIZONA NEWS

Tempe approves proposal to create $1.8B resort-style lakeside neighborhood

Feb 25, 2022, 2:00 PM | Updated: 3:04 pm

PHOENIX – The Tempe City Council has approved a proposed $1.8 billion project to transform blighted waterfront property into a resort-style neighborhood.

Plans for a mixed-use development named South Pier at Tempe Town Lake call for 2,300 apartments and 160 condos to house 3,500 residents, along with 520 hotel rooms and office and retail space.

A Ferris wheel, pier and pedestrian bridge, among other amenities, will be part of what the development agreement calls an “entertainment destination within an urban setting.”

Per the city ordinance authorizing the project, construction will begin by Jan. 31, 2023, with seven phases of development over 15 years.

City officials laid out the details of the proposal, which has been in the works for three years, before council members unanimously approved it during their Feb. 10 meeting.

The development will be located on 12.5 acres covering a combination of city and privately owned plots east of Rural Road between Rio Salado Parkway and Tempe Town Lake.

The property will be expensive to develop because it’s in such poor condition, according to city officials. Multiple previous proposals have fallen through.

Developer South Pier Tempe Holdings, subsidiary of McBride Cohen Management Group, will pay the market rate of $36.5 million for city’s plots.

As part of the deal, Tempe will cover more than $25 million in government property lease excise taxes, while the developer will pay the city about $27 million to be used for affordable housing, transit, schools and other public amenities.

The developer will also be responsible for about $7 million in assessments the city would otherwise owe on the property.

Tempe won’t have any future expenses related to the project, which city officials said will generate an estimated $5.7 million annually in tax revenue.

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

Arizona Congressional district races 2024 election...

Serena O'Sullivan

Who’s winning Arizona’s 9 Congressional district races according to the first ballot drop?

Some of the nine Arizona Congressional district races are neck-and-neck. Others have a wide hole between them. What are the results so far?

5 hours ago

Maricopa County Board of Supervisors...

Danny Shapiro

Here are the latest election results for the Maricopa County Board of Supervisors

The Maricopa County Board of Supervisors could have a Democratic majority if results from Tuesday night hold.

6 hours ago

Arizona propositions...

KTAR.com

Arizona propositions: Which of the 13 statewide ballot measures are passing?

Abortion and border security measures got most of the attention, but there were 11 other Arizona propositions on the 2024 ballot.

6 hours ago

Proposition 314...

KTAR.com

Proposition 314 to criminalize entering Arizona from Mexico outside port of entry likely to pass

Proposition 314, a measure that would make it a state crime to enter Arizona from Mexico outside a legal port of entry, looked likely to pass.

7 hours ago

Proposition 139...

KTAR.com

Proposition 139 to ensure abortion rights in Arizona appears likely to pass

Proposition 139, which would constitutionally protect the right to an abortion in Arizona, appeared likely to pass after early results were released Tuesday night.

7 hours ago

Ruben Gallego Kari Lake...

KTAR.com

Ruben Gallego leads Kari Lake for Arizona’s US Senate seat

Ruben Gallego holds a lead over Kari Lake on Tuesday night in the race for Arizona's open U.S. Senate seat.

7 hours ago

Sponsored Articles

...

Day & Night Air Conditioning, Heating and Plumbing

It wouldn’t hurt to get your AC checked after Arizona’s excruciating heat wave

A well-maintained air conditioning unit is vital to living a comfortable life inside, away from triple-digit heat in Arizona.

...

Dr. Shanyn Lancaster, Family & Sports Medicine physician, Midwestern University Comprehensive Care Clinic – Central Phoenix

Exercise is truly your best medicine

“You never slow down, you never grow old”. – Tom Petty

...

Sanderson Ford

3 storylines to get you revved up for the 2024 Arizona Cardinals

Arizona Cardinals training camp is just a couple weeks away starting on July 25, and Sanderson Ford is revved up and ready to go.

Tempe approves proposal to create $1.8B resort-style lakeside neighborhood