SCOTTSDALE, AZ-The fate of the Los Arcos Mall was placed in the hands of the voters this week when a Maricopa County Superior Court judge decided a referendum ballot was needed to decide the issue of subsidizing the redevelopment.

Scottsdale residents petitioned the court to put the project up for a March 9 vote after Scottsdale City Council approved a measure that would give developer Steve Ellman as much as $36.7 million in taxpayer dollars to fund the mall’s makeover. With inflation, the cost to the taxpayers could reach $200 million over the 40 years of the project.

The Phoenix-based developer plans to turn the long-vacant property at Scottsdale and McDowell roads into a Wal-Mart, Sam’s Club and Lowe’s Home Improvement Warehouse. Ellman and his firm, the Ellman Cos., had initially planned to turn the site into the new home for the Phoenix Coyotes, but public opposition scrubbed that plan. Ellman plans to appeal Judge Jonathan Schwartz’s decision.

The mall redevelopment also is facing a court challenge by the United Food and Commercial Workers Union, which recently filed a suit alleging that the subsidy was an unconstitutional gift to the developer.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper


GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.