Tempe Development Thread

[CB1]

https://www.google.com/amp/s/www.cpe...termark-tempe/

[Mr.RE]

Anyone know what is going on with the Westin Hotel? Building permits were issued, and ground work started last month with watering the site for excavation but nothing since. I saw equipment on the site yesterday but looked like it was being used to house the collectives crane equipment until it went vertical.

[muertecaza]

Originally Posted by Mr.RE

Anyone know what is going on with the Westin Hotel? Building permits were issued, and ground work started last month with watering the site for excavation but nothing since. I saw equipment on the site yesterday but looked like it was being used to house the collectives crane equipment until it went vertical.

No idea. Been wondering the same thing. My semi-educated guess is that they weren't actually ready to build (whether because of financing or otherwise), but went ahead and applied for the building permit to save having to ask for an extension on their entitlements. Tempe has been cracking down on the speculative entitling of property that smacks of land-banking by making entitlements (in this case the development plan review) good for only 1 year, and indicating that they are not going to just blindly renew and extend the entitlements if there isn't any work being done. So to save themselves going back through the development plan review process, they went ahead and applied for and got the building permit? I very well could be wrong, but that's my guess. But the whole thing is weird, with the "groundbreaking" back in February, 2018, and signage going up and down on the fence surrounding the lot.

In better news, this view from the Mirabella cam is awesome with the Collective tower crane up:



Would be cool if they shifted the camera so it included the Canopy Hilton.

[CrestedSaguaro]

That area is going to look good when these all built

Originally Posted by muertecaza

No idea. Been wondering the same thing. My semi-educated guess is that they weren't actually ready to build (whether because of financing or otherwise), but went ahead and applied for the building permit to save having to ask for an extension on their entitlements. Tempe has been cracking down on the speculative entitling of property that smacks of land-banking by making entitlements (in this case the development plan review) good for only 1 year, and indicating that they are not going to just blindly renew and extend the entitlements if there isn't any work being done. So to save themselves going back through the development plan review process, they went ahead and applied for and got the building permit? I very well could be wrong, but that's my guess. But the whole thing is weird, with the "groundbreaking" back in February, 2018, and signage going up and down on the fence surrounding the lot.

In better news, this view from the Mirabella cam is awesome with the Collective tower crane up:



Would be cool if they shifted the camera so it included the Canopy Hilton.

[Mr.RE]

I wonder if the Westin is going to use a boom crane instead of a tower crane for their development. The only reason I speculate is because that airspace is quite crowded with the collective crane near by and the westin has the vacant lot next door to park the crane on an hoist/lift materials onto the site. Not sure if boom cranes have the ability to built something 18 stories tall? My knowledge is limited when it comes to construction cranes.

In other news, we should start to see construction at both ISTB-7 and Tower 777 at Novus commence sometime in February as site work has been completed.

[phoenixwillrise]

Originally Posted by Mr.RE

I wonder if the Westin is going to use a boom crane instead of a tower crane for their development. The only reason I speculate is because that airspace is quite crowded with the collective crane near by and the westin has the vacant lot next door to park the crane on an hoist/lift materials onto the site. Not sure if boom cranes have the ability to built something 18 stories tall? My knowledge is limited when it comes to construction cranes.

In other news, we should start to see construction at both ISTB-7 and Tower 777 at Novus commence sometime in February as site work has been completed.

Possibly but the cranes on the Mirabella and Block 23 DT PHX site are pretty darn close to each other. just sayin.

[ASUSunDevil]

Originally Posted by Mr.RE

In other news, we should start to see construction at both ISTB-7 and Tower 777 at Novus commence sometime in February as site work has been completed.

That's 7 tower cranes on University between Rural & Mill once Westin gets going. On the lake you'll have Watermark, The Grand, Biomedical Campus, 100 Mill, Weitz Company project and The Pier. That's 13 really big projects that could be under construction at the same time. Pretty awesome for Tempe

Curious if this one is still alive: http://www.orionprop.com/topfive/gol...ower-near-asu/

[azsunsurfer]

Originally Posted by ASUSunDevil

That's 7 tower cranes on University between Rural & Mill once Westin gets going. On the lake you'll have Watermark, The Grand, Biomedical Campus, 100 Mill, Weitz Company project and The Pier. That's 13 really big projects that could be under construction at the same time. Pretty awesome for Tempe

Curious if this one is still alive: http://www.orionprop.com/topfive/gol...ower-near-asu/

Holycrap! I can't believe that was entitled that long ago! That corner is cursed!

Also the Gilbane development on Apache is already working on it's underground garage while Park Place across the street still hasn't started work yet.....and the Gilbane development went thru the whole entitlement process AFTER Park Place.

[Mr.RE]

Updated pictures of the both the apartments and office tower at The Grand. Coming along nicely!

[Mr.RE]

Found this picture of what the Local looks like today Vs. when it opens. Getting pretty close!

[muertecaza]

Originally Posted by Mr.RE

Found this picture of what the Local looks like today Vs. when it opens. Getting pretty close!

Looks good. I was walking by today and saw that they are putting up a brick facade on the back side of the parking structure (the side facing the railroad tracks, not shown in that rendering). I wonder if they will have the brick facade all the way around (thus a change from the renderings), or only facing the tracks?

[Spitfiredude]

I'm not sure if anyone has mentioned this, but the first building at IDEA is on its 4th or 5th floor already - out of 6. Its just kind of appeared out of nowhere.

Also AG is suing Crow for selling properties with no property taxes. Kind of see both sides on this.

[combusean]

Originally Posted by Mr.RE

I wonder if the Westin is going to use a boom crane instead of a tower crane for their development. The only reason I speculate is because that airspace is quite crowded with the collective crane near by and the westin has the vacant lot next door to park the crane on an hoist/lift materials onto the site. Not sure if boom cranes have the ability to built something 18 stories tall? My knowledge is limited when it comes to construction cranes.

In other news, we should start to see construction at both ISTB-7 and Tower 777 at Novus commence sometime in February as site work has been completed.

Luffing tower cranes are built for constructing highrises in tight environments. Basically a boom on top of a tower.

[combusean]

Originally Posted by Spitfiredude

Also AG is suing Crow for selling properties with no property taxes. Kind of see both sides on this.

I actually want to see this play out. State Farm and Novus make it difficult for private property owners to compete the way I understand it.

[muertecaza]

Originally Posted by combusean

I actually want to see this play out. State Farm and Novus make it difficult for private property owners to compete the way I understand it.

I'm interested to see it as well. I will say it's a bit rich for the State to slash educational funding in the recession, leading ABOR to look for other revenue sources, only for the State now to sue to say those revenue sources aren't acceptable after ABOR is already elbows deep in their new life as a real estate developer.

I'd also be interested to talk to someone more in the know about the effect on private property owners. It's not like Tempe is short on non-ASU development--Fenix is building Watermark offices on spec, the Grand is scooping up tenants, apartments going up everywhere, etc.

[DesertRay]

Originally Posted by muertecaza

I'm interested to see it as well. I will say it's a bit rich for the State to slash educational funding in the recession, leading ABOR to look for other revenue sources, only for the State now to sue to say those revenue sources aren't acceptable after ABOR is already elbows deep in their new life as a real estate developer.

I'd also be interested to talk to someone more in the know about the effect on private property owners. It's not like Tempe is short on non-ASU development--Fenix is building Watermark offices on spec, the Grand is scooping up tenants, apartments going up everywhere, etc.

Brnovitch is an idiot. It's funny that he sues ASU to offer nearly-free tuition while his buddies slash educational funding to the bone AND while he's suing that ASU found another way to pay for education. If he was doing his job, he would ALSO sue the Legislature for failing to live up to their Constitutional obligation to keep tuition low. If he had his chance, he would sue Gravity for impinging on his Liberty.

I'm guessing he will end up not having standing. His argument that this makes other taxpaying entities pay for taxpayer stuff that these parcels would theoretically pay for seems like he's trying to establish standing. Trouble is that he's basing his standing upon speculation, and there are so many conflicts with the STATE AG suing the STATE Board of Regents who are making decisions for Arizona STATE University. All of the entities represent Arizonans, and he's reaching to be the fella' who knows what's best for e'rryone. We'll see.

[Spitfiredude]

I see it both ways. ASU claims state cuts are the reason they’re leasing out the lands & it’s money for people who attend ASU...that’s just not true. All this land is being leased out for funding for ASU athletics, not the general student population. Literally all of the athletic village is going to be used for athletic revenue. So is the Mirabella plot.

[Mr.RE]

They mentioned the proposed Omni Hotel and Conference center in the article and how Byrnovich demands they must pay taxes especially for that particular use. Wouldn't the hotel already be paying a huge sum in sales and bed tax already? Or are those taxes also exempt due to the lease agreement bundled with property tax reduction?

All in all, a total buzzkill is what this is. Trying to turn the public against public/private development which will only slow down the progress ASU is making on the NOVUS corridor. Even if this case goes no where, any negative press on ASU's developments are sure to bring public scrutiny along with it.

[Obadno]

This seems like a really strange thing for the AG to go after, lets just Kneecap ourselves I guess?

https://www.bizjournals.com/phoenix/...cial-real.html

The Arizona Attorney General sued the Arizona Board of Regents on Thursday looking to block Arizona State University's practice of allowing developers to build on the university's tax exempt land.

The case, filed in Arizona Tax Court, seeks to end the practice allowed by the regents, which is the governing body of the state’s three public universities.

“ASU is a public university, not a commercial enterprise or an urban development authority,” Arizona Attorney General Mark Brnovich wrote in the lawsuit. “It is inappropriate for this educational institution to pick winners and losers in the highly competitive property development industry by negotiating for the use of ABOR's tax shielding status.”

In a statement released Thursday evening in response, ASU officials said, "This frivolous lawsuit is a huge waste of taxpayer money, time and energy, and it saps the public's faith in our elected officials."

In the lawsuit, Brnovich said a hotel and conference center, called the Omni Tempe, which was approved by ABOR to be built on land owned by the board, must be subject to taxes.

The hotel and conference center, planned on 2.25 acres near Mill Avenue and University Drive, was approved by ABOR in 2016, and approved by the city of Tempe in 2018.

In the development agreement, there would be the option for Omni Hotels Management Corp. to lease the land from ASU, and ASU would serve as the landlord of the commercial development for a 60-year period.

“Irrespective of who owns the Omni Property and improvements thereon, the improvements must be subject to tax as an improvement on possessory rights if a hotel and convention center is built on the site,” Brnovich wrote.

Brnovich calls for the Maricopa County Assessor to place the Omni property on the tax roll and asks the Maricopa County Treasurer to collect the appropriate taxes if the project is built on the property.

Previous deals
The suit mentions Marina Heights, the largest commercial real estate sale in the state of Arizona, which was built on 20 acres of land owned by ABOR and leased back to private companies for 99 years. The deal exempts Marina Heights from property tax.

Brnovich asserts in the lawsuit the deal was done in such a way that would indicate the regents were doubtful of the board’s legal ability to complete such a deal. Brnovich cites a provision in the lease that states if the arrangement in the deal was to be declared unlawful for any reason, the “lessee can force the city of Tempe to take title of the improvements and impose a GPLET on the property to ensure a backup, preferential tax treatment without the use of ABOR’s status.”

A GPLET, or government property lease excise tax, involves private developers building on land owned by public bodies, such as cities, which result in developers and businesses on that land paying lower property taxes than if they owned the land.

The suit also mentions the Mirabella Luxury Senior Living condo community, which is under construction on land owned by ABOR. The property already was leased for 99 years to Mirabella at ASU Inc., an affiliate of Pacific Retirement Services, an Oregon-based nonprofit.

"With another mega-deal in the works, this court must now hold ABOR and ASU accountable and require both to adhere to their enumerated powers as provided by the constitution and Legislature," Brnovich wrote.

[combusean]

Originally Posted by Mr.RE

They mentioned the proposed Omni Hotel and Conference center in the article and how Byrnovich demands they must pay taxes especially for that particular use. Wouldn't the hotel already be paying a huge sum in sales and bed tax already? Or are those taxes also exempt due to the lease agreement bundled with property tax reduction?

I don't see how they would avoid hotel bed taxes imposed by Tempe. Tempe has incorporated the whole of the campus.

The big issue seems to be property taxes on facilities outside the athletic district. Novus has an enabling act that sets land lease rates (property tax) as competitive with local governments. Brnovich isn't suing over that, just ASU's ventures on Mill and University. His reading of the law is moronic tho. Excess land should be used as a source of income to support the university, and it is. No individual at ASU is getting rich off these things.