Tempe working with developers to revitalize historic Danelle Plaza shopping center

Jan 10, 2024, 4:35 AM

Photo of the Yucca Tap Room and neighboring businesses in Danelle Plaza on Southern Avenue in Tempe...

Tempe officials are working with developers to revitalize the historic Danelle Plaza shopping center. (City of Tempe Photo)

(City of Tempe Photo)

PHOENIX — Tempe officials are working with developers to revitalize the historic Danelle Plaza shopping center, home to the iconic Yucca Tap Room.

On Jan. 18, the Tempe City Council will hold a second hearing and vote on an ordinance to convey the East Valley city’s portion of the property on the southwest corner of Mill and Southern avenues to a development group for $2.75 million.

A sale would take place at a later date if conditions of a development agreement are met, the city said in a press release Tuesday.

The development group consists of Desert Viking and Guina Affiliated Development, who along with the city own all but 1 acre of the 14-acre site.

What is the history of Danelle Plaza in Tempe?

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

It 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, a longtime staple of the city’s live music scene, the shopping center’s current eclectic roster of tenants includes Ghost of Eastside Records, Electric Bat Arcade and Skin Lab Tattoo & Body Piercing.

Yucca Tap Room ownership supports the project and is working with the redevelopment team, the city said.

What is Tempe doing to redevelop Danelle Plaza?

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

In September 2022, Guina Affiliated Development and Desert Viking responded to the city’s request for redevelopment proposals.

A year later, the City Council voted to enter into a development agreement with the team.

The agreement calls for a mixed-use project with space for affordable, workforce and market-rate housing, a live entertainment venue, retail stores and restaurant space.

“This is another step in bringing the community’s vision for local art, live music, open space and affordable housing to fruition,” Mayor Corey Woods said in Tuesday’s release. “We value Danelle Plaza and want to make it stronger. We can make exceptional use of this land while still protecting the incredible culture that makes this corner so special.”

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Tempe working with developers to revitalize historic Danelle Plaza shopping center