CityNorth Project Spurs Urban Questions

PHOENIX-Once upon a time, desirable development was "suburban development." Made up of subdivisions with modern homes and wide roadways leading from those homes to retail and office developments, cars were used for moving between the home front, the office and the grocery store.

However, the recent announcement of the fall 2006 groundbreaking for the mixed-use, 144-acre, five-million-sf CityNorth project brings up the concept of new urbanism, involving pedestrian-friendly enclaves, in which people can live, work and play in one location. "Basically, the whole idea of CityNorth is that it means the people there don't have to get on the freeway to get from point A to point B," says Richard Gollis, principal with the Concord Group in Newport Beach, CA, which consults with developers nationwide.

But can such a concept work in a car-centric city like Phoenix, and other southwest Sunbelt cities? Many area experts tell GlobeSt.com that Kierland Commons is a good success story for the new urban concept. Developed by Woodbine Development Corp., the 730-acre master-planned "Main Street" development in Scottsdale attracted retail and office tenants like flies to honey. Additionally, "Kierland sold out their residences, very quickly, with dramatically high prices, to people looking at primary housing and secondary homes," Gollis says.

But one sour note for Kierland, is that demand has been so high, supply is all but gone. "The real problem with Kierland is that they're not meeting the demand for people who want to be part of it," says Daniel Klutznick, vice president of Thomas J. Klutznick Co., CityNorth's developer. "When you go there most months, it's impossible to find a parking space. They sold out residences quickly and there's demand for more."

Art Lomenick, managing director with Trammell Crow Co.'s Dallas office, says that Metro Phoenix would likely embrace more projects like Kierland Commons. "A lot of folks may love their vehicles and freedom, but they don't like sitting in traffic," says Lomenick, who has spearheaded Phoenix developments in the past.

Another aspect that makes new urbanism potentially attractive in Phoenix is the population, which combines retirees, young families and everyone in between. "Phoenix has, over the years, become more diversified in population base as the market has grown," Gollis says. "We have a broader array of people moving into the market, meaning we need a broader range of housing types to satisfy those market segments."

If anything could stand in the city's way of a new urbanism embrace, it's the area's transportation system. "Phoenix and a lot of cities like it have transit systems with a long way to go," Lomenick says. "It's not convenient enough yet to really and truly provide multi-modal opportunities like you find in East Coast cities."

The heat can also take its toll on a new urbanism environment. "Summer is tough on walking around," Lomenick says. "If you're in the shade, it's not so bad. If you can create a new urbanism environment in Phoenix with shade and walking paths, then it could succeed."

Yet based on Kierland's success and growing interest in CityNorth, Klutznick believes the area is primed for new urbanism thinking and he doesn't see CityNorth as the final development. "As Phoenix has grown, it's starting to learn that growing out isn't as effective as growing up," he says. "I think you'll start seeing more identification of travel time, and that people will want to spend less of their time in cars and more doing the things they like to do."