Phoenix parking deal with Metrocenter developer could cost $68 million
Demolition should begin this fall at the site of the former Metrocenter Mall in Phoenix. But before then, city leaders will vote on a parking deal with developers.
A development team plans to demolish the former mall and build a mixed-use project with 3,200 multifamily housing units and nearly 400,000 square feet of commercial space.
Rather than collect taxes on construction, leases and retail, the City Council must decide whether to give that money to the developer in exchange for building up to nine garages.
Christine Mackay, the city’s economic development director, told a city subcommittee Wednesday that the deal would last 25 years.
“Those garages belong to the city, the city at that time can choose what it wants to do with them — it could monetize them, it could look for fair market value, it could continue to lease them as a revenue source,” she said.
If the City Council approves, the developer would get an estimated $68 million. At full build-out, the capital investment for the 80-acre project is estimated at close to $940 million.
On Monday, representatives for Hines and Concord Wilshire shared their plans for the landmark property at a community meeting organized by Councilwoman Ann O’Brien.
- Summer 2022: Developer completes real estate transactions to acquire site.
- Fall 2022/Winter 2023: Demolition of former Metrocenter Mall.
- Early 2023: Commence construction of Phase 1.
- Late-2024 to early-2025: Completion of Phase 1.
- 2025-2027: Phase 2 construction.
- 2027-2029: Phase 3 construction.
- 2029: Completion of all phases.