Money has always spoken the loudest in Phoenix. Even before Urban Form was a thing and while CityScape was going up, the developers had a hellacious time with this
little building because it so very much broke the mold. Limited setbacks AND mixed use when all you have is C-2 zoning? Wouldn't surprise me if the company (martha + mary?) went bankrupt as a result.
I don't even know what an organically-grown medical district looks like at this point. Phoenix can't even get it together with its own two districts and the greater area and then you have the IDEA campus in Tempe trying to do the same.
I think what this really looks like at the end of the day is which big business/research establishment/non profit/etc is going to play the cities against each other. Like the sales tax incentives of years past that I think the state finally had to step in and shut down, there's only individual profit and no public benefit.