PHOENIX-In a bid to deliver a $500-million-plus development in the heart of the city, the council today is expected to sign off on floating a request for proposal for two prized blocks. The step is considered essential although the 5.09 acres are controlled by a development alliance.
"Someone could respond to the RFP to buy or partner on the blocks," says John Bacon, vice president of marketing for RED Development LLC, "but it's an outside chance. Is it realistic? Probably not." Local firms RED and Cardon Development Group, joint venture partners for Block 22, and Barron Collier Co. of Naples, FL, which controls Block 23, have unveiled plans for a high-density, urban development bound by Central Avenue, North 2nd, West Washington and West Jefferson streets.
Designed by Callison Architecture Inc. of Seattle, CityScape is mapped out as destination space with more than two million sf in four towers with residential and office components and up to 200,000 sf of street-side, specialty retail, including a grocery. If the plan stays on track, CityScape will deliver in 2008 in sync with the completion of the first phase of the light-rail transit system, expansion of the Phoenix Convention Center, opening of Arizona State University's CBD campus and medical school and marked growth in a biomedical center.
City abatements are sure to be part of the plan, but it's too early to nail down how deep the perks will go. "I don't think it will be a stumbling block," Bacon says. "The city is supportive of the project. But, we aren't taking anything for granted."
The RFP has a 45-day response period. In keeping with the RFP's intent, RED, Cardon and Barron Collier will be responding, Bacon says.
Barring any obstacles, RED will buy Block 22--now a parking lot--in March. Bacon says Cardon approached RED last October about joint venturing after three years of looking for a development partner. "No one has ever committed as much as we have to the process," he says, adding there are no foreseeable obstacles to block the March closing.
If all comes to fruition, Barron Collier will develop the retail and office space on its block, subsequently selling the retail to RED and Cardon, according to Bacon. The Barron Collier block, owned for 15 years, now holds a vacant office building, the only area needing to be scraped. Bacon says RED-Cardon will develop and fully own the retail and office space on its site.
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