Phoenix making plans for new downtown high rise
PHOENIX — The area between Van Buren and Polk Streets and Central and First Avenues currently serves as Central Station for Valley Metro. It’s where people can get transit information and tickets, catch the light rail train and several buses. It’s also considered a prime spot for development and the city is now on track to turn the taxpayer-owned property into a mixed-use, high rise apartment complex.
Tuesday, members of the city’s Transportation and Infrastructure Subcommittee will vote on whether to recommend an agreement with the developer, Smith Partners LLC, to the full city council.
The plan currently calls for the following:
• 475 market rate apartment units
• 475 parking spaces
• 30,000 square feet of ground floor commercial space the city would own
• Developer would pay a portion of net revenue for 99 years, based on a formula to be included in the deal. The city estimates the revenues will average $190,000 annually.
• Developer will pay to lease the land with average payments estimated to be $110,000 per year. The deal may include an option for the developer or lenders to acquire title.
• City will reimburse developer up to $2.5 million for city-approved public improvement
According to a city report, the project is expected to generate $1.4 million in construction sales tax revenues and upon its opening it’s projected to generate $240,000 in annual city sales tax revenues.