Los Arcos Crossing to pursue tax subsidy - East Valley Tribune: News

Los Arcos Crossing to pursue tax subsidy

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Posted: Wednesday, September 26, 2007 2:01 am | Updated: 7:24 pm, Fri Oct 7, 2011.

The developer of a proposed major south Scottsdale redevelopment project will request a city subsidy for its plan to create an urban environment to complement the adjacent SkySong project, the Tribune has learned.

Los Arcos Crossing developer PDG America — which plans to file its official rezoning application next month for the project southeast of McDowell and Scottsdale roads — did not provide an estimated amount of its desired taxpayer assistance.

Project attorney Lynne Lagarde said the city money would pay for a connection through the project that would help link SkySong with the Indian Bend Wash greenbelt.

The subsidy also would assist with public infrastructure needs for the 26-acre project along McDowell Road between 74th Street and Miller Road.

The project is proposed to include two 60-foot apartment buildings, town homes, a rebuilt Bashas’ supermarket, shops, restaurants and offices.

“We like to talk about this as an investment in south Scottsdale infrastructure that’s needed to make a project like this work,” said Lagarde, who has presented her case at neighborhood meetings in recent weeks to both supporters and critics.

Dave Roderique, Scottsdale’s economic vitality general manager, said the city has not received a formal request for assistance. He said the requested amount would depend on the project’s calculation on water and sewer needs and street improvements.

“We’re willing to talk about it and find out what it is and if we think it’s something reasonable to facilitate a major redevelopment, it may make sense,” said Roderique, adding that ultimately it’s a City Council decision.

In addition, the city owns about 3 1/2 acres of land identified as part of the Los Arcos Crossing project site. The two sides are negotiating sale of the land for the project, but an estimated sale price has not been released. The final sale price, if below market value, could also affect the total subsidy amount.

Scottsdale bought 42 acres southeast of McDowell and Scottsdale roads on the former Los Arcos Mall site for $42 million. Of the 42 acres, all but five were leased to the Arizona State University Foundation for Sky-Song, a planned high-tech research center.

In addition to the 3 1/2 acres desired by Los Arcos Crossing east of 74th Street, the city owns 1 1/2 acres west of the road on the site being leased by SkySong.

Roderique said he did not know what the appraised value of the 3 1/2 acres would be, but said although the city bought the land for $1 million an acre, it does not mean that every acre on the property would be worth the same amount because those acres with more prominent street frontage and visibility would be worth more. The land desired by Los Arcos Crossing does not front McDowell Road.

A rezoning would be necessary to allow residential units and the increased height on the property.

If approved, PDG America plans to demolish the nearly abandoned shopping center. The developer is negotiating with Bashas’ for a possible new store that would replace the 44-year-old supermarket. Another 120,000 square feet of retail, office and restaurant space is planned, along with about 600 residential units including apartments and town homes.

“We want to have Bashas’, we want sit-down restaurants and not fast food and we want to have shopping,” Lagarde said. “The idea is to bring a similar level of quality to this project as you would see in projects in north Scottsdale.”

The plan is to build five-story, 60-foot-tall apartment buildings in the middle of the site, with the up to three-story town homes closer to the single-family homes bordering the project’s southern edge, Lagarde said. That is the same height allowed at Sky-Song.

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