By Brenna Goth for The Arizona Republic
A high-rise project including downtown Phoenix’s only grocery store will move forward with millions of dollars in city incentives, the City Council decided Oct. 5.
The roughly 300 apartments, 150KSF of office space and an urban Fry’s grocery store proposed by RED Development are slated for a parking lot known as “Block 23” that dates back to Phoenix’s original town site.
The City Council approved a package of financial incentives to launch the project.
Several council members thanked RED Development for taking a risk to open a grocery store — an asset they say will advance downtown development.
Project receives $18.3M in incentives, property-tax break
Phoenix will provide RED Development about $18.3M through payments and sales-tax reimbursements. The company will purchase the city-owned land between Washington and Jefferson streets and First and Second streets for $18M with 50 years of payments.
An existing property-tax break on the parcel also will last for 50 years, though the city did not provide the value of that incentive by Wednesday afternoon. Community and Economic Development Director Christine Mackay said the figure was not calculated because the land has never generated property taxes and is bound by a previous agreement.
RED Development anticipates opening the $160M project in 2018.
RED Development must start construction on the project within one-and-a-half years and complete the project within three years, under the agreement.
Read more at The Arizona Republic