Quote:
Originally Posted by PHXFlyer11
I think we need to be clear here. Concord Eastridge's USA Place is dead. From what I read in these articles, nowhere does it say that USA Basketball has pulled out.
We need a new developer that will develop maybe have the parcel and can secure financing for a smaller project that has a high probability of closing.
ASU shares blame in this. They should hang on to the Southern most five acres, trim the development to 5, then RFP the later 5 when there is demand.
Demand for more retail, offices, condos and apartments are predicated on a couple of things:
1) Marina Heights Completion
2) HFL III Completion
3) Mill + Rio (Monti's) office tower
4) Hadyen Mill Amphitheater
5) Street Car
All of these things will increase demand for housing and retail, however none of these projects are completed, thus USA Place was very speculative in hoping their would be demand. You RFP the second 5 acres down the road when demand is proven and ensure that the first 5 get developed now. This will also create greater diversity and more of an organic growth than a 10-acre master planned project would. You'd probably even see taller buildings in both phases as phase 1 would need to cram more into a smaller space, and phase 2 would service demand that exists in the future for taller housing towers.
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I think you're making quite a few assumptions in this post. I understand your thought process that a project seeking financing for only a hotel and event space for the USA Basketball HQ will have a better shot than one that includes residential, retail, and commercial components... but, I really don't think it's as simple as that.
1. There is a reason ASU and Tempe are RFPing the 10 acres all at one time; there is a demand for building in Tempe right now and they can fetch top dollar by bidding it out and, at the same time, develop a key parcel that has been languishing for decades now.
2. USA Basketball may be one of the harder parts of the proposal to finance, as it requires event space and commercial space; lenders may not feel that the event space will see a return on investment even if it is programmed throughout the year with high school sports, or they might feel that a city like Tempe is oversaturated with venues already of similar capacity especially with the looming Stadium District. Similarly, USAB isn't large enough of a tenant to secure financing for an office component, and any project will have a tough time securing leases when HFL3, Marina Heights, and Rio+Mill are all in the works.
3. That would leave us with just the hotel and conference center, which without the support of a flashy planned mixed use development that guarantees guests like Olympic Basketball stars, won't attract a brand like an Omni on its own. And, it's ASU's mission to bring a 4-star or equivalent brand to this site.
4. At the same time, even if the acreage was cut in half, 5 acres is a ton of space for a hotel project, meaning the end result would likely be LESS height, more above-ground parking, and less mixed us components. Even if a mixed use residential piece came about during a Phase II, those residences would be further from the core and not be nearly as integrated as they would be if all planned in one phase.
I think we'll see a new proposal that's not nearly as urban in its design, with multiple above-grade parking structures taking up real estate and producing dead zones. I think we'll see the north half proposed for a shorter hotel, conference center, and small retail, and the southern half 4-5 story residential with little to no retail involved. I think USA Basketball will get the axe and instead become part of the Stadium District plan.
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