Posted Nov 17, 2008, 4:02 PM
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Registered User
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Join Date: Apr 2006
Location: Country Club Park, Greater Coronado, Midtown, Phoenix, Az
Posts: 4,610
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I guess the first part of CityNorth opened up:
Quote:
CityNorth's High Street opens in northeast Phoenix
by Michael Clancy - Nov. 15, 2008 08:00 AM
The Arizona Republic
Businesses now are open along High Street at CityNorth as opening weekend activities continue at the development in northeast Phoenix.
Considering the hurdles, the developers say, the street that makes up Phase 1 of CityNorth turned out well.
Words like "miracle," "remarkable" and "great" were thrown around with abandon at Thursday morning's opening. John Klutznick, who has spearheaded the project for the Thomas J. Klutznick Co., promised the 200 people at the ribbon cutting: "We are just getting started."
The street consists of two blocks that include nine buildings three or four stories tall. Various finishes and shading devices are used along the street.
By itself, High Street appears a bit odd, sitting alone on a large parcel of land. Desert Ridge Marketplace is hundreds of yards away to the west, and the street's back side is turned to Deer Valley Drive and the Toscana apartment complex across the road. High Street is even further from 56th Street and Loop 101.
It will take Phase 2's completion for the street to have company. Although the developers are ready to begin construction, the money needed to finance Phase 2 has been elusive.
"It will take longer than we expected, we know that," said Kenneth Himmel, president and CEO of Related Urban, Klutznick's development partner. He vowed to be "first in line" when financing becomes available again.
The economic slowdown has proved to be a particularly difficult challenge. In response, the developers delayed the second phase of the project until 2010 and converted numerous for-sale condos into rental units.
Himmel said that retail along High Street would be 85 percent occupied by spring and that office space would be close to half leased by then. No estimates were provided on residential sales or leases.
Howard Elkus, a Boston architect who often works with the developers, wanted to make one thing clear.
"This is not a mall," he said. "This is a piece of the city."
Elkus noted that CityNorth's offices and residences make it a different animal.
City officials praised the development. Vice Mayor Peggy Neely called the opening of High Street the culmination of 20 years of planning and said it already is generating benefits for the city in terms of jobs and fees.
She said those who doubt the project will be successful need only to look around. Since 2001, she pointed out, Kierland Commons, the Westin Kierland Resort, Desert Ridge Marketplace and the J.W. Marriott Desert Ridge resort opened and now are major successes.
Mayor Phil Gordon said the project already has generated $7 million in revenue for the city.
Work continues on the shops and restaurants that have yet to open, and to the south, open space sprawls over to the freeway on the southern border of the property.
None of that was on the minds of Thursday's visitors.
No homeowners, renters or office tenants have moved in yet, but the shopkeepers and visitors praised the feel of the street.
Shops and restaurants line the street, with office space and residential units on upper floors. In that regard, Elkus said, it bears a resemblance to shopping areas in older cities.
Lew Gallo, one of the owners of the not-yet-opened Haus and its neighbor, Alessi, said he appreciates the mix of local and national retailers, the availability of dining options and the location.
He is eager to open and to see the second phase begin.
Considering the difficult economic climate, Klutznick said, completion of Phase 1 is "a miracle."
Himmel said the developers will stick to their promise of "something different and special."
"Cities like this take a lot of time and effort," he said.
After this opening weekend, CityNorth's next key date is in court.
A legal challenge to a tax-sharing agreement between the city and the developers will be heard at the Arizona Court of Appeals on Nov. 25.
The Goldwater Institute says the city should not be in the business of subsidizing development, especially when the cost runs close to $100 million. It points to findings from its own consultants and a consultant hired by the city that indicate the deal will not pay off for the city.
The city argues that it is allowed to make tax-sharing deals that promote the city's economic health. CityNorth is expected to generate plenty of money for everyone, officials say.
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