Phoenix City Council has issued the final approval necessary to redevelop the 50-year-old Metrocenter Mall site.
Council approved a development agreement between Phoenix and Phoenix IG, LLC (Concord Wilshire and TLG Investment Partners), allowing the project to move ahead. Phoenix IG is also working in association with Hines on the redevelopment.
To be built in phases, the 5MSF project will include nearly 3,200 multifamily units, two hotels, 100KSF of retail space, a plaza and park space. A total of 6,300 parking spaces is also planned. The City projects the total investment at buildout will be approximately $1.14B.
The agreement calls for Phoenix IG to lease the property at an annual rent of $2.5K/completed phase for 25 years. Annual rent increases are included and will go toward either the City’s downtown community reinvestment fund or other funds to be identified later.
The developers will also enter into a Government Property Lease Excise Tax agreement and contribute $1.5M to Phoenix’s affordable housing trust fund or another fund approved by Council.
The Castles N’ Coasters amusement park located adjacent to the property had expressed frustration with the plan’s impacts on park operations. Phoenix officials directed the developer to meet with park ownership after Castles N’ Coasters submitted a letter expressing its concerns in August. City representatives said the parties met in September to discuss the park’s concerns. (Source)
