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    Home » Planning & Development » Glendale, VAI Shift on Parking Garage, GPLET
    Planning & Development

    Glendale, VAI Shift on Parking Garage, GPLET

    BEX StaffBy BEX StaffJuly 2, 2024No Comments3 Mins Read
    Credit: City of Glendale
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    By BEX Staff for AZBEX

    Recently announced changes to plans from the City of Glendale and VAI Resort could free up two aspects of the resort development that had threatened to bog down its progress.

    In the first instance, local news outlets report the City and VAI Resort are foregoing plans for a Government Property Leased Excise Tax incentive program. The GPLET agreement was approved in 2020, and a 2023 economic analysis estimated the property tax abatement at approximately $100M over a 25-year term. The value to Glendale from annual revenues was estimated at nearly $800M over the same timeframe.

    The decision follows legal action by self-described “social welfare organization” Worker Power, a union-affiliated advocacy group that has targeted other mixed-use developments with GPLET agreements, including South Pier at Tempe Town Lake and the Arizona Coyotes Tempe Entertainment District.

    Worker Power had attempted to place the VAI Resort GPLET agreement on the ballot for a referendum, but Glendale repealed the agreement. City Manager Kevin Phelps said last week the developer and the City have agreed to drop pursuit of a GPLET.

    Glendale requested dismissal of a lawsuit filed by Worker Power but was denied. VAI Resort has joined the lawsuit as a party with Glendale, and the two filed a request for a jury trial last week.

    Glendale has committed to waiving as much as $1M in fees for the development but has said it does not plan to provide tax incentives or waivers for development impact fees.

    New Parking Plan

    Glendale has also scrapped plans to hire VAI Resort to build a parking garage the City would own on the “Black Lot” near VAI Resort and State Farm Stadium. The City had originally planned a parking structure with more than 3,800 spaces for the resort’s use.

    That plan was waylaid by a lawsuit by the Arizona Cardinals and the Arizona Sports and Tourism Authority, who claimed the garage plan violated earlier agreements requiring Glendale to provide event parking. The Superior Court granted a temporary injunction to prevent Glendale from issuing permits or moving ahead with the plan without approval from the Cardinals. Glendale had requested an appeal.

    Under the new plan, Glendale has approved the $7.5M sale of eight acres at Montebello and 91st avenues to VAI Resort to build a five-level parking structure. The site is adjacent to the Black Lot site.

    Glendale officials have notified the Cardinals the City will not proceed with the Black Lot plan and plans to withdraw its appeal of the Court’s temporary injunction.

    Arizona Cardinals Arizona Coyotes Arizona Sports and Tourism Authority Black Lot City of Glendale Government Property Leased Excise Tax GPLET Hotels/Resorts/Casinos Kevin Phelps Mixed-Use Other Commercial Parking Garage Private restaurants retail South Pier at Tempe Town Lake Superior Court Tempe Entertainment District theme parks VAI Resort Worker Power
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