Garage gives team owners big win
Suns, Diamondbacks partners to pay $20 million, beat out Jackson Street developers for key spot
Jahna Berry
The Arizona Republic
Apr. 9, 2008 12:00 AM
Ownership of a parking garage has become a battle between influential downtown Phoenix players, and, in the end, representatives of the Phoenix Suns and Arizona Diamondbacks are likely to get to control the game.
Today, the Phoenix City Council is expected to give the green light to an agreement with the Suns Legacy Properties LLC and AZPB Limited Partnership, representing Suns and Diamondbacks ownership, to take over the 1,400-space city garage because sports fans use it during home games, Deputy City Manager David Cavazos said.
The developers behind a planned downtown entertainment district, who also wanted the garage, are retooling their game plan. advertisement
"The major users of the garage are the Diamondbacks and the Suns," Cavazos said. "Any time you have a third party, it's more difficult to manage the garage according to what the custom and practice has been for many years for traffic control and pricing."
The Jefferson Street Garage is bound by Jackson, Jefferson, Third and Fourth streets.
It's walking distance from both Chase Field, home of the Diamondbacks, and US Airways Center, home of the Suns.
The deal, which calls for the city to sell the garage for a set price of $20 million, will satisfy the teams and will help the proposed district, Cavazos said.
Suns managing partner Robert Sarver couldn't be reached for comment.
The city has asked Sarver to negotiate with the Jackson Street Entertainment District developers, who want to build shops, apartments or condos on the south side of the garage, Cavazos said.
The request, however, is no guarantee that the talks will work out, Cavazos said. That could be a problem for the district.
The project would line both sides of Jackson Street between Central Avenue and Fourth Street with nightclubs, restaurants, shops and music venues, supporters say.
"It was never a requirement for the district for us to own the garage," said one of the Jackson Street developers, David Wallach.
But a key part of the plan includes "wrapping" the south side of the garage with shops and multifamily housing, he said.
"It is easier to develop things you have total control over," he said.
The Jackson Street development team is also studded with heavy hitters. It includes Wallach, who developed the Summit at Copper Square, Diamondbacks majority owner Dale Jensen, entertainment executive Brad Yonover and Michael Hallmark, who designed US Airways Center.
Although the City Council is expected to vote today, the deal is being finalized, Cavazos said.
The final agreement also will ask Sarver to develop the historic Sun Mercantile Building and a hotel in the area so that it's consistent with the Jackson Street developers' plans, Cavazos said.
Last year, Sarver had to scuttle plans to build a $200 million W Hotel on land between US Airways Center and the garage.
The city is selling the garage to fulfill an agreement with CityScape developers.
Under the CityScape pact, Phoenix agreed to use the proceeds of the $20 million sale to help fund the $900 million complex of offices, hotels, shops and restaurants.
The project will cover three blocks between First Avenue, Second, Washington and Jefferson streets.