Phoenix Development News (3)

[CrestedSaguaro]

Originally Posted by Obadno

Speaking of big holes and no progress.... What's the deal with the Courtyard Marriot??

I am excited to see two new 20+ (Marriot & Central station) towers going up!

Union continues to make progress. They had to do a lot of work to make that hole including driving i-beams around the perimeter of the lot and concrete support work.

Marriott has been on a pause for quite some time now. According to the last city quarterly development report, they are working on facade changes to blend better with the Luhrs block, so I'm sure that's causing the delay. Hopefully, they get the facade right. I wasn't too impressed with the partial renderings we seen.

[Jjs5056]

Originally Posted by RonnieFoos

Union continues to make progress. They had to do a lot of work to make that hole including driving i-beams around the perimeter of the lot and concrete support work.

Marriott has been on a pause for quite some time now. According to the last city quarterly development report, they are working on facade changes to blend better with the Luhrs block, so I'm sure that's causing the delay. Hopefully, they get the facade right. I wasn't too impressed with the partial renderings we seen.

They've been saying that for quite some time now; certainly longer than I imagine it should take to come up with a modified design. This had better not end up as a parking lot. AFAIK, the hotel(s) will not be 20+ stories - I thought the final number was 19 which I think will make it around the same height as the Courts Tower? It won't incorporate any retail, either. With the Barrister property proposed to have a decent amount of retail, it would've been nice for this project to have added a space or two which would've ceated a nice 2-block double-sided retail strip along Central from Madison - Washington and might've sparked some interest in filling in the arcade.

The design + the delays makes me really miss the former Luhrs Building, and wish that this hotel had been built where the garage sits with either underground parking or on top of a parking podium with lobby/restaurant/retail space on the ground level (preferably the latter for the increased height which would block views of the hideous county buildings). With some TLC, the Luhrs Building had a ton of potential. It had so many ground level retail spaces that would've been far more affordable for some creative uses than any new construction, and the 2nd level could have been really gorgeous lofts or offices. And, I wonder if the building couldn't support a modern 1-3 story addition on top for lofts?

Between that structure and the demo'd hotels on Madison, Phoenix lost the chance at the revitalization/reuse of a rare cluster of historic buildings.

[CrestedSaguaro]

Originally Posted by Jjs5056

They've been saying that for quite some time now; certainly longer than I imagine it should take to come up with a modified design. This had better not end up as a parking lot. AFAIK, the hotel(s) will not be 20+ stories - I thought the final number was 19 which I think will make it around the same height as the Courts Tower? It won't incorporate any retail, either. With the Barrister property proposed to have a decent amount of retail, it would've been nice for this project to have added a space or two which would've ceated a nice 2-block double-sided retail strip along Central from Madison - Washington and might've sparked some interest in filling in the arcade.

The design + the delays makes me really miss the former Luhrs Building, and wish that this hotel had been built where the garage sits with either underground parking or on top of a parking podium with lobby/restaurant/retail space on the ground level (preferably the latter for the increased height which would block views of the hideous county buildings). With some TLC, the Luhrs Building had a ton of potential. It had so many ground level retail spaces that would've been far more affordable for some creative uses than any new construction, and the 2nd level could have been really gorgeous lofts or offices. And, I wonder if the building couldn't support a modern 1-3 story addition on top for lofts?

Between that structure and the demo'd hotels on Madison, Phoenix lost the chance at the revitalization/reuse of a rare cluster of historic buildings.

I think I remember the height being listed as 234' which puts it roughly around State Farm's tallest. I'm not sure if the roof will be flat, have a crown or a spire or what since they seem to want to hide a full rendering. But I am becoming increasingly worried Marriott will not happen and I'm the one always saying relax when it comes to pauses in projects. There has litterally been no movement on the site for well over a month. I go by the site no less than 3 times per week and have not seen anyone...not even the security guard that was there at night and is no longer on duty. So, I feel something is definitely up with this project.

[Obadno]

Originally Posted by RonnieFoos

I think I remember the height being listed as 234' which puts it roughly around State Farm's tallest. I'm not sure if the roof will be flat, have a crown or a spire or what since they seem to want to hide a full rendering. But I am becoming increasingly worried Marriott will not happen and I'm the one always saying relax when it comes to pauses in projects. There has litterally been no movement on the site for well over a month. I go by the site no less than 3 times per week and have not seen anyone...not even the security guard that was there at night and is no longer on duty. So, I feel something is definitely up with this project.

Im really surprised that a way more difficult hotel like the Garden Inn is being built but this is having troubles. Especially with Marriot being the backer and the forward momentum in downtown on all fronts.

seems really suspicious, especially when they had enough to tear down and dig a big hole.

[PHXFlyer11]

Originally Posted by Obadno

Especially with Marriot being the backer and the forward momentum in downtown on all fronts.

I don't think Marriott backed this. Most of the hotels you see be it Marriott, Hilton or otherwise are operated by other companies. Think of them as Franchisees. Marriott was not building/funding or backing this project. They just lend their name for a fee.

[Jjs5056]

You have to consider the locations and the developers involved.

The Professional Building was pursued by at least 5 development teams interested in turning it into a hotel between 2008 - 2014; a historic property with built-in name recognition from the failed Hotel Monroe, probably a good deal based on the financial issues, and adjacent to one of the main convention hotels and across from one of the most urban blocks of the city.

Meanwhile, since purchasing the property, Hansji has tried everything they could to demolish as much of the Luhrs buildings as possible. The City had to plea with them and the compromise was that they could demo the Luhrs Building, Postal Annex (this isn't mentioned often, but they are able to - and I am sure will - demolish the 1-story retail along 1st Ave), and Garage in order to save the retail arcade along Jefferson. Had they gotten their way, only the two towers would remain.

Even more, Hansji has continued to release flashy renderings of high-rises built along various parts of the property. These renderings changed constantly... almost like their purpose was to show potential buyers the options available for the site.

Add to all that the fact that even Hansji themselves couldn't provide me with a full rendering of the hotel, and I have to wonder if they basically invested in demo and site work for the sole purpose of making the entire property more likely to sell? As in, "hey, we even have a pad ready for high rise construction."

This is pure speculation, but they've been suspicious from the start, even lying about the Luhrs Building being beyond salvage - give me a break! And, as I mentioned, why not demo the garage? Is it because removing the HP process involved with demolishing the Luhrs Building is more attractive to future owners who could easily knock down the garage?

[Jjs5056]

Other good news (along with the Alliance project on Roosevelt): Bitter and Twisted has a patio in the works. I'm glad to hear that since it looks so discreet right now and with CityScape's poor design along Jefferson, I was scared it might not survive. A patio should give off some signal of life, though, and hopefully attract some more patrons. Definitely a business that could benefit from the Barrister and Marriott projects.

Also, I didn't see this mentioned - Cornish Pasty has resumed work on its Monroe location next to Subway.

ETA: Sounds like CANVAS is a goner, but the 420 house is still being discussed. Alliance might incorporate PAZ into the new retail, which is nice, but... the mix of new with adaptive reuse projects would have made for a much more interesting streetscape. I think CANVAS is probably the best reuse example in the 'hood - taking a completely auto-focused property and turning it into a really great-looking hub. It's also one of the only businesses with curb appeal that isn't embarrassing. I think that's a definite loss.

[PHXFlyer11]

Originally Posted by Jjs5056

Sounds like CANVAS is a goner, but the 420 house is still being discussed. Alliance might incorporate PAZ into the new retail, which is nice, but... the mix of new with adaptive reuse projects would have made for a much more interesting streetscape. I think CANVAS is probably the best reuse example in the 'hood - taking a completely auto-focused property and turning it into a really great-looking hub. It's also one of the only businesses with curb appeal that isn't embarrassing. I think that's a definite loss.

That sucks. Are there renderings for the Alliances project? Is it at least decent?

[Jjs5056]

Originally Posted by PHXFlyer11

That sucks. Are there renderings for the Alliances project? Is it at least decent?

They presented it at an adjustment hearing a few days ago where they requested - and received - the variance to abandon the alley, which is what is allowing them to build the giant garage across 5th Street. I wish PHX was as transparent with site maps and other resources like Tempe, but all I know is what I posted earlier. I think it sounds like a really good project - way better than what Wood Partners had shown before the neighborhood revolted, better than either of the Baron projects, and considering the trends of development (especially downtown) and some of their other questionable "urban" projects, I am pretty impressed.

To summarize, what I know is:
1) Alliance purchased the land between Portland Roosevelt, 3rd Street - 5th Street (the only property not included is the synagogue, I believe)
2) They were approved to abandon the E-W alleyway bisecting the site, so their plan calls for a massive garage stretching the length of 5th Street, which was approved because "5th has not been designated a pedestrian street by the city."
3) CANVAS is being demolished; unsure about the 420 house. I'd love to see it moved to the lot next to Songbird.
4) Retail will be included along Roosevelt, with walk-up apartments on the ground level on both 3rd Street and Portland
5) Paz is in talks to reopen in the new retail space, but who knows how financially viable that will be
6) I didn't ask about height, because honestly, nothing is going higher than 5 stories these days. So, assume 4 or 5.

Given that 80% of the site is blight right now, I can't be too upset over the loss of CANVAS; it's just unfortunate to lose one of the most creative and nice-looking reuse projects, as well as two of the only restaurants in a strip of galleries and studios that aren't very inviting. To be honest, aside from CANVAS, I think the rest of the block is pretty filthy.

I respect that they added true urban features to the ground level and that they are - at minimum - replacing the retail they're getting rid of. It will be great to see a contiguous strip of shops from 7th St - 3rd St, and then there's the new Dressing Room concept restaurants just west, the new Roosevelt Point salon, etc. This is going to fill in the biggest gap along Roosevelt.

[Jjs5056]

And, luckily, it sounds like my conspiracy theory about Hansji is almost definitely not true. LOL. The hotels are "full steam ahead," and water and sewage construction has been taking longer than expected. But once that's done, the crane'll be coming.

[gymratmanaz]

That's good news about the delay due to sewage. Will be a good addition to the area!!!

Love the Bitter and Twisted patio idea! More faces on the street!

[PHXFlyer11]

Originally Posted by gymratmanaz

That's good news about the delay due to sewage. Will be a good addition to the area!!!

Love the Bitter and Twisted patio idea! More faces on the street!

Great news! I hope that Barrister doesn't die after the delay. Who owns the rest of the land to the east of Barrister (but before the Sarver owned lot)? I would think that would be next for development.

[exit2lef]

The Business Journal finds Phoenix to be an outlier in the trend toward companies selecting urban locations. Out-of-state companies are choosing urban locations here, but some, like State Farm, are locating in Tempe instead of Downtown Phoenix. That doesn't bother me as long as those companies are choosing sites along the light rail corridor. What's more bothersome is locally-based companies like GoDaddy, Apollo Group, and Sprouts -- all of which have made recent decisions to locate their headquarters or large offices in car-dependent suburban locations instead of the linear core of the metro area they call home.

http://www.bizjournals.com/phoenix/news/...ocking-to-downtown-just-not.html?ana=fbk

[Obadno]

Originally Posted by exit2lef

The Business Journal finds Phoenix to be an outlier in the trend toward companies selecting urban locations. Out-of-state companies are choosing urban locations here, but some, like State Farm, are locating in Tempe instead of Downtown Phoenix. That doesn't bother me as long as those companies are choosing sites along the light rail corridor. What's more bothersome is locally-based companies like GoDaddy, Apollo Group, and Sprouts -- all of which have made recent decisions to locate their headquarters or large offices in car-dependent suburban locations instead of the linear core of the metro area they call home.

http://www.bizjournals.com/phoenix/news/...ocking-to-downtown-just-not.html?ana=fbk

There is no new office space downtown... why build new or rehab an old building when class A office space is available along the 101

[ASU Diablo]

Originally Posted by Obadno

There is no new office space downtown... why build new or rehab an old building when class A office space is available along the 101

For the same exact reasons that the article quoted: access to public transportation, access to qualified talent pool and near universities, walkability, etc.

I get what you're saying but many Companies are doing this, i.e., Uber. I expect more companies to do the same in near future.

[ASU Diablo]

This was brought up a couple of weeks ago and City Council has approved! Hopefully this means a bunch of microbreweries popping up! The lodge by HGI??

http://dtphx.org/2015/06/18/city-creates-entertainment-district-downtown-phoenix/

From local bars to microbreweries, Downtown Phoenix is increasingly becoming a destination for nightlife entertainment — possibly now more than ever.

On Wednesday, June 17, a new line was drawn around Downtown Phoenix, one that gives microbreweries, bars, nightclubs and other business owners the chance to open up shop in the city center.

This “Entertainment District” encompasses about one-square mile of Downtown Phoenix and is intended to foster economic development by bringing more businesses to the area.

Previously, potential bars, microbreweries and nightclubs were prohibited from applying for a liquor license if they were within 300 feet of a church, per Arizona State law. But after much community outreach, the rules have changed.

These business owners now have the opportunity to apply and go through regular city and state processes for a liquor license. However, there’s still no guarantee they’ll receive one, as they’ll have to pass both City Council and Arizona State requirements.

Dan Klocke, vice president of economic development at Downtown Phoenix Inc., said that the district will benefit both existing businesses located near churches as well as future ones.

For instance, businesses like the nonprofit jazz venue The Nash, which neighbors the Roosevelt Community Church, could now potentially apply for a liquor license to serve beer and wine during its performances.

In addition to economic development, Klocke said the Entertainment District is almost an adaptive reuse tool, as it could mean activating old buildings that have sat vacant for years.

“There are buildings that are rotting away that would make perfect microbreweries,” he said. “It’s going to open up the doors for the types of uses in buildings that weren’t available (before).”

The Entertainment District generally encompasses the area between Seventh Avenue and Seventh Street and going as far north as Moreland Street (to Hance Park) and as south as Hadley Street (to the Warehouse District).

Klocke said there’s been no conflict amongst pastors and community members, as they have all been supportive of the Entertainment District and the opportunities it provides business owners.

[Classical in Phoenix]

I am on the board of the 501-c3 that runs The Nash. This has been something we have been working on for a while. It should be a great addition to the neighborhood.

[TakeFive]

Originally Posted by exit2lef

The Business Journal finds Phoenix to be an outlier in the trend toward companies selecting urban locations. Out-of-state companies are choosing urban locations here, but some, like State Farm, are locating in Tempe instead of Downtown Phoenix. That doesn't bother me as long as those companies are choosing sites along the light rail corridor. What's more bothersome is locally-based companies like GoDaddy, Apollo Group, and Sprouts -- all of which have made recent decisions to locate their headquarters or large offices in car-dependent suburban locations instead of the linear core of the metro area they call home.

http://www.bizjournals.com/phoenix/news/...ocking-to-downtown-just-not.html?ana=fbk

Originally Posted by airomero83

For the same exact reasons that the article quoted: access to public transportation, access to qualified talent pool and near universities, walkability, etc.

I get what you're saying but many Companies are doing this, i.e., Uber. I expect more companies to do the same in near future.

The original work that Jesse A. Millard's PBJ article was based on is HERE. There's nothing particularly new or surprising but they do credibly look specifically at company moves and why they moved. I didn't read the full pdf but clicking on some of the examples on their interactive map I found a few to be curious but doesn't change the substance. The analysis does effectively demonstrate the accelerating urban energy since recovery from the Great Recession.

Not new ground but Metro Phoenix was more negatively impacted by the recession than many places. Additionally its urban energy is more nascent than a lot of places.

While this report focuses on "downtown's" its results are based on the the reasons that airomero83 mentions. For this area Tempe has been the darling coming out of the recession, thanks substantially to State Farm and exemplifies those characteristics that are important.

Downtown Phoenix is on the right track except for demand of office space as exit2lef points out from the PBJ article. Residential is coming; retail follows rooftops; eventually (more) companies will look at moving to downtown. Transit is in place and hopefully expands from here.

[azsunsurfer]

TakeFive is on to something...I feel that Midtown's office recovery will only come when Midtown and Downtown are more 'alive.' Companies are attracted to urban areas that have that synergy of people out on the street, retail amenities, events, etc... I think this will come over time. For now people are going to find build-to-suit sites in the suburbs more financially sensible.

[biggus diggus]

I am at the Phoenician today looking down the hill and it looks like they're building a tower crane at roughly Camelback and Goldwater area. Anyone know what that could be for?