Tempe Moves Forward On Affordable Housing Project With Zoning Carve-Out
Tempe city councilors on Nov. 13 passed a zoning ordinance clearing the way for a new housing development that will add 360 affordable housing units to the city.
Specifically, the councilors unanimously passed a planned area development overlay to allow for the construction of Dorsey Station, a 400-unit, 90-percent affordable project at the site of the Pollack Apache Center mall, according to the Phoenix Business Journal.
The project, developed by Dorsey Development Partners in coordination with Palindrome Communities, will span five buildings at 1320 E. Apache Blvd. and 1412 S. Dorsey Lane.
The development group paid just $1 for a 99-year lease on the property and will receive more than $1M in tax incentives to develop it, according to Tempe News.
The city of Tempe had previously purchased the mall in 2021 for $10.7M. Last year, it was rezoned to “mixed-use high density” to allow for both housing and commercial use. This cleared the way for something like Dorsey Station to be considered.
The Dorsey Station plans set aside 360 of the 400 units for residents earning 30% to 80% of the area median income, the PBJ reports. Also included are 79 senior housing units.
The plans also include a 10K SF grocery store. The Apache Boulevard area has lacked a grocery store since Food City, attached to the former mall, closed in 2021.
Zoning attorneys Charles Huellmantel and Todd Marshall, who spearheaded the city’s Farmer Arts District development in 2019, gave a final presentation of the Dorsey Station plans at a council meeting earlier this month.
Huellmantel highlighted the goal to make the corridor more pedestrian-friendly. He showed renderings depicting wider sidewalks, picnic table areas and landscaping changes to make the area less car-centered.
“This is really not a great place for people to walk or be, but we think it can be,” Huellmantel said.
In 2007, Huellmantel touted the walkability of another proposed project in Tempe, the 7.7-acre Farmer Arts District project. The original design by Hullemantel, Marshall and others was pitched as a pedestrian-friendly haven full of public amenities, according to AZ Central.
The development group paid just $50K for the land in exchange for the promise of more than $6M in amenities. However, those promised amenities were eventually scaled back as development moved forward.
A former city manager voiced concern that the Farmer Arts District deal appeared one-sided for the developers. It was one of several mentioned in a 2016 city audit with findings critical of land development deals with the city, AZ Central reported.
In October, Tempe city councilors also voted unanimously to change the zoning for the Danelle Plaza shopping center to allow for mixed use. A plan is underway to revitalize the location with elements such as an amphitheater and green space.
