Some last minute lease issues to be resolved but University Square is proceeding with prepping the site. 
http://www.eastvalleytribune.com/index.php?sty=80862
The Arches falling in Tempe
By David Woodfill, Tribune
December 19, 2006
Tempe residents will soon bid farewell to a piece of local history. The Arches, a 42-year-old fixture of student life near Arizona State University, will be replaced by a dirt lot buzzing with construction workers.
A group of developers planning an ambitious $500 million development called University Square, featuring condos, offices, retail space and a hotel, will begin flattening the complex on University Drive sometime next week.
The buildings, which are recognizable for their slightly outdated facade of arched windows and faux-adobe “slump block,” has served as a revolving door for chain businesses and locally owned restaurants and shops since its construction in 1964.
Many of its businesses throughout the years consisted of restaurants, coffee cafes and copy shops, all geared to ASU’s student population.
“It’s kind of sad because it’s (had) a lot of student-oriented businesses that have been there serving the campus community,” said Bud Morrison, owner of Tempe Bicycle, which is located in the center.
Morrison, like many other business owners at the center, is preparing to shutter his doors and relocate.
Tony Wall, president of 3W Companies, which partnered with two other developers to build University Square, said his group is negotiating compensation with the remaining seven tenants.
He said the three buildings that make up the Arches, as well as the neighboring Lorenzo’s Pizza Pasta & Cafe at 106 E. University Drive, will be completely vacated by the end of the month.
The developers, who have already begun work on the property, will raze the easternmost building that used to house India Bistro.
“The other three, we expect to take down (in) late February,” he said.
But David Cheren, owner of Dave’s Dog House, said that deadline isn’t realistic.
Cheren said he hasn’t reached an agreement with the developers to quit his lease.
Dimitri Soris, owner of the Pita Pit, said his last day of business will be Wednesday.
Andrea Perez, a hostess at Restaurant Mexico, said she’s not exactly sure when the eatery will close.
She said the owners are opening a new location at Fifth Street and Mill Avenue.
“We have a good following,” she said. “They claim they will follow us wherever we go.”
Neil Calfee, deputy community development manager for Tempe, said other businesses are bound to spring up around ASU to fill the void left by the Arches’ shops.
“The market will find its way,” he said.
“I’m confident of that. It’s just a matter of where,” he added.
Mark Vinson, the city’s architect and a former ASU student, said he has fond memories discussing “the current state of ASU football” at one of many local haunts at the Arches.
Still, he said the buildings weren’t old enough to qualify for historic preservation.
“The center is not what you would call truly historic,” he said.
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University Square Is Full Steam Ahead
Can anyone living in Tempe get over to the old Co-op, take a few pics, and post them here? I'm unable to, as I getting ready to leave town, and I don't have the time. I did notice that they were about half-way thru tearing it down when I drove by last night. 
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